LESSON 10 SERVICE EXCELLENCE Learning Objectives Explain the relationships between service quality, productivity, and profitability. Know the different dimensions of service quality. Understand the importance of customer feedback. Familiarize with the tools used to analyze service quality problems. WWW.REXBOOKSTORE.PH Lesson 10 : Service Excellence Learning Objectives Learn the different system approaches to service quality and productivity. Know and differentiate the kinds of firms based on service leadership. WWW.REXBOOKSTORE.PH Lesson 10 : Service Excellence Contents 1. Service Quality, Productivity, and Profitability 2. Productivity 3. Service Leadership WWW.REXBOOKSTORE.PH Lesson 10 : Service Excellence Service Quality, Productivity, and Profitability WWW.REXBOOKSTORE.PH Lesson 10 : Service Excellence • The relationship between profitability, productivity, and service quality is direct and simple. • The relationship between productivity and service quality is complex. WWW.REXBOOKSTORE.PH Lesson 10 : Service Excellence Measuring Service Quality Soft standards • Based on nonquantifiable process • Not easily observed • Feedback, perspectives, and perception of customers WWW.REXBOOKSTORE.PH Lesson 10 : Service Excellence Measuring Service Quality Hard standards • Collected based on outcomes • Can be calculated, timed, or computed WWW.REXBOOKSTORE.PH Lesson 10 : Service Excellence Dimensions of Service Quality • Assurance. Ability to communicate guaranteed quality service • Empathy. Ability to be compassionate to the clients • Reliability. Consistency and dependability of service WWW.REXBOOKSTORE.PH Lesson 10 : Service Excellence Dimensions of Service Quality • Responsiveness. Ability to react to customers’ needs • Tangibility. Provide the appropriate physical facilities WWW.REXBOOKSTORE.PH Lesson 10 : Service Excellence Objectives of Customer Feedback • Performance Appraisal. Compare the performance to previous accomplishments or competitors. • Customer-focused Organization. Understand the needs and wants of clients. • Customer-driven Growth. Improve the service and develop products. WWW.REXBOOKSTORE.PH Lesson 10 : Service Excellence Tools Used to Analyze Service Quality The Fishbone Diagram: • determines the root cause of the problem; • uses cause and effect analysis; and • identifies and lists down reasons. WWW.REXBOOKSTORE.PH Lesson 10 : Service Excellence Tools Used to Analyze Service Quality Pareto Analysis: • identifies the reasons; • differentiates the major issues from the minor; and • prioritizes issues to be addressed. WWW.REXBOOKSTORE.PH Lesson 10 : Service Excellence Tools Used to Analyze Service Quality Blueprinting: • shows the stages of service delivery; and • detects where the problem occurred. WWW.REXBOOKSTORE.PH Lesson 10 : Service Excellence Productivity WWW.REXBOOKSTORE.PH Lesson 10 : Service Excellence • Quantity of goods, products, and services produced from the amount of materials, resources, and assets used • It is a measure of output based on the amount of inputs used. WWW.REXBOOKSTORE.PH Lesson 10 : Service Excellence In the service industry, an improvement of productivity is difficult to measure since the output cannot be easily quantified. WWW.REXBOOKSTORE.PH Lesson 10 : Service Excellence • Efficiency is a measure of how well things are done based on a given standard in a specific time or period. • Effectiveness is the degree to which an organization meets its objectives and desired outcomes. WWW.REXBOOKSTORE.PH Lesson 10 : Service Excellence Strategies in Improving Service Productivity • Utilize technology, innovations, data analytics. • Train, equip, and motivate employees. • Deploy workers capable of multitasking. • Maintain a lean and mean workforce. • Operationalize self-service technologies (SSTs). WWW.REXBOOKSTORE.PH Lesson 10 : Service Excellence Strategies in Improving Service Productivity • Redesign customer service. • Control and minimize costs at different levels. • Outsource nonessential tasks. WWW.REXBOOKSTORE.PH Lesson 10 : Service Excellence Improve Productivity through Customer Driven Strategies • Use cost-effective and efficient delivery channels. • Give roles as co-creators of the service. • Third-party service providers can undertake support functions. • Manage demand and capacity to maximize use of resources. WWW.REXBOOKSTORE.PH Lesson 10 : Service Excellence Systems of Service Quality and Productivity • Total Quality Management (TQM) assists organizations related to: - service excellence; - productivity; and - process improvements. WWW.REXBOOKSTORE.PH Lesson 10 : Service Excellence Systems of Service Quality and Productivity • ISO 9000 Certification – assessment and certification of a firm’s quality management system WWW.REXBOOKSTORE.PH Lesson 10 : Service Excellence Systems of Service Quality and Productivity • Six Sigma – deals with firms that have high-volume processes – reduces defects and improves productivity WWW.REXBOOKSTORE.PH Lesson 10 : Service Excellence Systems of Service Quality and Productivity • The Malcolm Baldrige National Quality Award (MBNQA) – promotes best practices in quality management – recognizes quality achievements WWW.REXBOOKSTORE.PH Lesson 10 : Service Excellence Service Leadership WWW.REXBOOKSTORE.PH Lesson 10 : Service Excellence Firms should consider the following: – sustain the level of performance to maintain customer loyalty and profitability; – performance defines its competitiveness and its existence; and – excellence in operation to have an advantage over the others. WWW.REXBOOKSTORE.PH Lesson 10 : Service Excellence Classification of Service Organization • 4th Class Firms - Subservient Firms • Exist under minimum compliance • Avail of its services if there is no alternative. • Focused on minimizing cost • Insensitive to customers’ needs and wants WWW.REXBOOKSTORE.PH Lesson 10 : Service Excellence Classification of Service Organization • 3rd Class Firms - Traditional Firms • Adhere to the standardized form. • Productivity is to follow the procedures. • Keep costs below budget. WWW.REXBOOKSTORE.PH Lesson 10 : Service Excellence Classification of Service Organization • 2nd Class Firms - Maven Firms • Display no nonsense professionalism. • Recognize the importance of customers’ roles. • Balance between productivity and service quality • Continuous innovation and improvement WWW.REXBOOKSTORE.PH Lesson 10 : Service Excellence Classification of Service Organization • 1st Class Firms - Innovator Firms • Innovativeness and excellence • Seamless service • Continuous innovation, improvement, experimentation, and consultation • Collaborate with customers WWW.REXBOOKSTORE.PH Lesson 10 : Service Excellence
