Service Quality and Design PDF

Service quality and design What is quality? - A competitive advantage over our past, compared to competitors - Not an act, it’s a habit - Not an accident. Its always the result of intelligent effort What do managers think quality is? - Perfection - Consistency - Eliminating waste - S...

Service quality and design What is quality? - A competitive advantage over our past, compared to competitors - Not an act, it’s a habit - Not an accident. Its always the result of intelligent effort What do managers think quality is? - Perfection - Consistency - Eliminating waste - Speed of delivery - Providing a good, usable product - Doing it right the first time Apart from quality, the customer in today’s world expects CX – customer experience Standardization pyramid includes: Defacto, National, European, International Quality is the set of properties and characteristics of a product or service that gives it the ability to meet expressed or implicit needs (ISO) Quality is excellence: - Quality is an innate excellence that cannot be defined precisely, but is intuitively understood, you know what it is - Quality it’s a simple, unanalyzable property that we learn to recognize only through experience - Best skill and effort possible - Finest and most admirable result possible - Researching the highest level of standard - No compromise with the second-rate - Finest inputs and processes are used - Premium price Quality is value: - Values regard that something is held to deserve, the importance, the words were usefulness of something - Values the material or monetary worth of something - Values the worth of something compared to the price paid or asked for it - Define quality in terms of costs and prices: a quality product is one that provides performance at an acceptable price or performance and unacceptable cost o This approach is becoming the more prevalent Types of value: - Functional value  - Experiential value (subjective, emotional appeal, sensory stimulation, social connection, etc.) - Symbolic value - Cost/sacrifice value (product benefits to price) Qe = Qed – Qee Quality of the guest experience = quality of the experience as delivered – quality expected Quality is conforming to specifications - Conform to requirements, doing things right the first time - Preventing defects (less expensive than repair leading to cost reduction and improvements in quality) - A product that deviate from specifications is likely to be a poorly made and unreliable providing less satisfaction (poor quality) than one that is properly constructed (high-quality) Quality is the set of properties and characteristics of a product or service that gives it the ability to meet expressed or implicit needs (ISO) Quality is meting / exceeding expectations - Individual consumers have different ones or needs, and those goods that best satisfy their preferences have the highest quality for them Ask for problems, not solutions (ex: if I had asked people what they wanted, they would’ve said faster horses (not a car)) Metaphysics of quality = Static vs Dynamic quality ❖ Static Quality (patterned) – What you normally expect Which can be defined Can be measured in a lab Stability and endurance Static system can change over time ❖ Dynamic Quality (unpatterned) Cannot be defined easily and cannot be measured in a lab Recognized before being theorized (conceptualized) Can only be understood through analogies Breaking the stability Creating moment of truth needs to be fresh daily Static systems do not create quality, but their absence creates a lack of quality and dissatisfaction Neither Static nor Dynamic Quality can survive without the other 7 Quality Management Principles as per ISO 9000-9001 ❖ Leadership ❖ Customer focus ❖ Engagement of people = involvement ❖ Process approach = system approach (to management) ❖ Continual Improvement ❖ Evidence based decision making = factual based decision making ❖ Relationship management (suppliers…) = Mutually beneficial supplier relationships The age of unreason - A time when the future in so many areas is to be shaped by us and for us, a time when the only prediction that will hold true is that no prediction will hold true, a time, therefore, for bold imagining in private life as well as public, for thinking they unlikely and doing the unreasonable There is nothing permanent except change - Everything changes and nothing stands still Understanding the market: VUCA / VICA ❖ Volatility The nature and dynamics og change Unable, hard to predict ❖ Uncertainty /Instability The lack of predictability, the prospects for surprise, and the sense of awareness and understanding of issues and events ❖ Complexity The multiplex of forces, the confounding of issues and the chaos and confusion that surround an organization ❖ Ambiguity The obscurity of reality, the potential for misreads, and the mixed meanings of conditions; cause-and-effect confusion. Relationship is unclear, no precedents exist The chicken that expects to be fed every day assumes that it will continue to be fed every day. It starts to firmly believe that humans are kind. Nothing in the chicken’s life points to the fact that one day it will be slaughtered. Good planning is key to be able to differentiate your company from the competitor Strategic planning process: 1. Data gathering 2. Identifying mission 3. Analysis / interpretation of information 4. Objective setting (WHAT?) 5. Developing strategic options (HOW?) 6. Evaluating strategic options (HOW?) 7. Creating action plans 8. Implementation 9. Performance review Hospitality planning cycle: Five forces of Porter Bases to conduct an internal audit: SWOT Resource-based view (RBV) – asserts that the competitive advantage and superior performance of an organisation is explained by the distinctives of its strategic abilities. Resources (assets that organisation however can call upon for example partners or suppliers) + Competences (ways those assets are used or deployed effectively) Strategic capability More examples include - Supply chain management: Organizational: Superior sales force - Organisational culture: Intangible Competencies: the roots of competitiveness  The collective learning and coordination skills behind the company’s product (service) lines  Lead to the development of core products  Core products are not directly sold to end users but are used to create a larger number of products for users The VRIN or VRIO Framework The VRIO or VRIN analysis is a strategic tool used to evaluate a company’s resources and capabilities to determine whether they provide a sustainable competitive advantage. VRIO / VRIN - Is the source valuable? - Is the source rare? - Is a source inimitable/difficult to imitate? - Can the organisation make use of it? - Is it non substitutable? Differentiation: Generic strategies for positioning services: Cost leadership: - Become the lowest cost producer in the industry - Low profit margins but large volumes - Risk: other firms may be able to lower their costs as well - Ex: Ryanair, Walmart Differentiation: - Product/ service uniqueness that are valued by customer and that he perceives to be better and by this affirm can charge a premium price - Risk: imitation by the competitors with greater differentiation and changes in customer tastes - Ex: Ralph Lauren, Mercedes Cost focus: - Similar to cost leadership, however in a narrow market (the prices are relative to other firms that compete within the same target) - Ex: Hotel F1, Redbox DVD rentals Differentiation focus:  - Similar to differentiation, however in a narrow market (the prices are relative to other firms that compete within the same target) - Ex: Rolls Royce, Harley Davidson Job to be done theory (JTBD) - This method is a results-oriented approach, which aims to understand the task that the consumer wants to accomplish and the objective that he wants to achieve by using the product/ service in question - It is based on the test of the consumer must accomplish, rather than on the need. This is with the aim of finding an innovative solution to improve the user experience as a whole. - Focuses on the way of the product purchase rather than who and what in order to direct product design and development efforts toward this goal What is service - It’s a time perishable, very often intangible experience performed for a customer acting in the role of a co-producer, participating in the service process, which adds to its value - It’s doing something for someone and by this act creating value for him Nature of service: Service Process Matrix: Importance vs satisfaction matrix example: Service Blueprinting – service mapping – starts with customer action - A diagram, applied process map that shows the service delivery process from the customer's perspective. - One of the most used tools to manage service operations, service design and service positioning. - Start with customer journey mapping, several depending on customer type, segment.. - Service Blueprints are crucial tools for service design. These diagrams map the service delivery process from the customer's perspective, allowing service providers to manage operations more efficiently. - Blueprinting helps to visualize the customer's journey and how various touchpoints are linked in providing the service. - Service mapping ensures that every aspect of service delivery is accounted for, which helps in creating consistent, high-quality customer experiences. Business Process Management (BPM): Business processes are defined as: - Activities that take one or more kinds of inputs and create an output that is of value to the customer. - A specific (often measurable) ordering of work activities across time and place, with a start, an end, and clearly identified inputs and outputs Types of business processes include: - Primary processes: Directly deliver value to customers.  - Support processes: Indirectly support the primary processes. - Management processes: Oversee and control the performance of primary and support processes. - Inter-organizational processes: Cross-company collaboration. - Inter-functional processes: Involve different functions within the same organization. - Processes focused on physical objects (e.g., manufacturing) and those focused on information. Internal Supplier-Customer Chain is introduced, highlighting how processes can be interconnected within an organization. - Ex waiter orders dish from kitchen, hes the customer Time-Cost-Quality Triangle: - All processes have inheritance variation and waste - Customers judge our processes on some measure of time, quality and costs - The normal situation is that one of these factors is fixed and the other two very inverse proportion to each other o Time: How long it takes to deliver the service. o Cost: The expense associated with providing the service. o Quality: The level of service provided. One of these factors is often fixed, and the other two vary inversely (e.g., if you increase quality, costs might rise, or more time might be needed). How to review or revise processes: Business Process Re-engineering (BPR) VS Management (BPM) or Improvement (BPI) BPR is described as a hard, radical approach to restructuring processes, contrasting with softer, more gradual approaches like BPM. BPR aims at radically redesigning business processes with the goal of improving performance by: ❖ Eliminating non-value-adding activities. ❖ Reducing waste through minimizing unnecessary steps or interfaces. ❖ Simplifying processes by reducing the division of labor and eliminating redundant steps. Value vs Waste - Value added activity o An activity that directly achieves customer requirements o Something the customer is willing to pay for or perceives as value - Non-value added activity o Non-value added but required activity o Activities that take time or resources, but do not directly achieve customer requirements ▪ Inspection, admin paper, regulatory Sources of waste: Methodology used in BPM or BPR to work on Prcesses: Performance Improvement – Deming Wheel (PDCA Cycle): - The Plan-Do-Check-Act (PDCA) cycle is a systematic approach to process improvement: - Plan: Define objectives and processes. - Do: Implement the changes. - Check: Evaluate the results. - Act: Make necessary adjustments to enhance the process. This cycle is particularly relevant for continuous improvement in service processes. Six Sigma Methodology: - Six Sigma is introduced as a quality management tool aimed at improving process outputs by reducing the number of defects. - Six Sigma quality means achieving no more than 3.4 defects per million opportunities. - DMAIC process: (define, measure, analyse, improve, control) is an improvement system for existing processes falling below specification and looking for incremental improvement. - Vision o Core products, services and processes meet the six Sigma quality level - Philosophy o Focus on customer needs and make data ribbon decisions - Measurement o Sigma a statistical number indicating the defection rate of a process or activity - Target o Six Sigma means 3.4 defects for 1 million possibilities Organizational Structures: Traditional Vertical Organizations: - Vertically structured, or "tall" companies have a chain of management, usually with a CEO at the top making decisions and then delegating authority to lower-level managers (AllBusiness.com) Vertical Organization – Disadvantages ❖ Requires considerable effort to maintain the power and balance ❖ Very often top-down management ❖ Often centralized decision-making process. ❖ Does not foster communication ❖ Departments often develop a narrow view of the organization, ❖ Singular goals of the department more important than the company's goals and vision ❖ Lack the transparency ❖ Employees can become less sure about individual and group responsibilities ❖ No autonomy - Less motivated employees Modern Process-Oriented Organizations: ❖ Structure follows process ❖ Focus is on process from input to output ❖ Holistic view on tasks ❖ Minimizing interfaces ❖ Process teams and process owners Vertical vs process: Innovation is the process of introducing something new that creates value, differentiates products or services, and drives growth. Quality through innovation  - The best way to predict the future is to create it. - Trying to predict the future is like trying to drive down a country road at night with no lights while looking out the back window Process Improvement Authority should be invested in the people doing the work to improve their own processes, they should not have to ask for permission to improve their processes. Survival of the fittest + innovation = survival of the fitting - It’s not the strongest of the species that survive, nor the most intelligent, but the ones most responsive to change Creative intuition A black Swan is an unexpected and surprising event that destroys your body, throwing your plans into disarray and changing your theories - Non-risk takers o Don’t take any risks o Mediocristan o Safe and comfort world, predictable o Low and high probability - Unsafe and improbable world risk takers o Rebels, people who see things differently o Extremistan o Unimaginable o The huge impact of single instance, extreme events o Highly improbable Innovation fitness (survival of the fittest vs of the fitting): To summarize: - Early Birds are not the best and Frogs are not the worst! - In different habitats different animals survive! - Organisations must always consider their habitat and their innovation fitness. - If these two are not in harmony, they must establish a new harmony by changing their fitness, or changing their habitat, or both = dynamic harmony Managerial Challenges: ❖ The Entrepreneurial Problem: How to define and develop products or services for a specific market segment. ❖ The Engineering Problem: How to create systems that bring management’s solutions to life. ❖ The Administrative Problem: How to reduce uncertainty in the organization while maintaining innovation and flexibility. Types of Strategic Approaches: - Defenders: Seek to maintain stability and avoid market changes. - Prospectors: Constantly explore new markets and opportunities, often first movers in innovation (e.g., Apple in its early years). - Analysers: Combine the cautious nature of defenders with the exploratory actions of prospectors. - Reactors: Have no proactive strategy, responding to market events as they happen, often leading to failure. Radical vs. Incremental Innovation: ❖ Radical Innovation: Introduces groundbreaking changes that reshape markets (e.g., the advent of the internet). Explores new technology High uncertainty Focuses on products, processes or services with unprecedented performance features  Create a dramatic change that transforms existing markets or in industries or creates new ones ❖ Incremental Innovation: Focuses on small, continuous improvements to existing products or services. Exploit existing technology Low uncertainty Focuses on cost feature improvements in existing processes, products or services Improves competitiveness within current markets or industries From left to right, the problem of modular implementation: Small steps make the big step, but you cannot jump over the abyss in small steps, it needs a leap Disruptive innovation New frontiers of innovation The next practices of innovation must shift the focus away from products and services and onto experiencing environments – supported by a network of companies and consumer communities to procreate unique value for individual customers Traditional vs experience innovation Traditional innovation is company centric and product centric. As such, its assumptions are fundamentally different from those of experience in innovation. Blue Ocean Strategy: Creating new market spaces (blue oceans) where competition is irrelevant, rather than competing in existing saturated markets (red oceans). The strategy is built on four actions: 1. Reduce: Lower certain factors below industry standards. 2. Eliminate: Remove factors that the industry takes for granted. 3. Raise: Increase factors above the current industry level. 4. Create: Introduce new elements that have never been offered before. By applying these principles, companies can draw a new value curve, differentiating themselves from competitors. Key principle: reached beyond existing demand Engage three tiers of non-consumers - First tier soon to be non-consumers o Those who are on the edge of your market waiting to jump ship - Second tier refusing non-consumers o Those who consciously choose against your market - Third tier unexplored non-consumers o Those who are in markets distant from yours Measuring “Innovation Fitting”: - Leadership - Management - Employee engagement - Training - Available resources - Innovation tools - Revolutionary ideas - Agility to react - Acceptance of error - Collaborative culture - Open innovation (Collaboration with universities, suppliers, competition, learning from trade shows and others) - Culture of innovation - Supports creative thinking - Has a set of shared value Flow management Management innovation system model that has demonstrated how well-organized flows of products and processes can enhance operational performance. Main flows to be considered - Clients - Logistic - Staff Ex: Analyze how many guests can I serve? (time of service * number of staff)/ time per guest Bitner model: Servicescape – everything that impacts customers Servicescape has a stronger influence on inexperienced customers and new employees and crates memories and customers mind Perception helps to categorise (1-5 stars) - What can be controlled o Servicescape dimensions ▪ Built environment ▪ Social environment - What must be understood o Employee customer responses to the servicescape ▪ Emotions ▪ Cognitions ▪ Physical responses - Desired outcomes o Behaviours in the Servicescape ▪ Individual behaviours ▪ Social interactions Environment and emotions - Greater personal control increases pleasure - Complexity increases emotional arousal - Compatibility increases his pleasure - Feelings about servicescape transfer to the organisation Roles of servisescape: - Package o Crates expectations o Gives an image to customers o Influences perception o Helps to categories o Important for new employees o Conveys a consistent look / message - Differentiations o Allow yourself apart from the competition in the customer’s mind o Changes in the physical environment can be used to reposition a business or attract a new customer segment - Facilitator o Facilitates movement o Facilitate service delivery o Provide provides information o Efficient service flow  o Can make service enjoyable - Socialiser o Facilitates interaction between: ▪ Customers and employees ▪ Customers and customers ▪ Employees and employees o May not improve but harm the experience Merchandising – everthing done inside the business making the customer want to vonsume more, ex. How you display items Role of uniforms - Convey an image of quality and assurance - Create group structure - Helps categories employee levels - Facilitates perceptions Other factors that can influence servicescape include: music, colours, merchandising, etc. Guidelines for effective strategy of physical evidence and services - Recognise the strategic impact of the servicescape and clarify its strategic role - Blueprint the physical evidence of service - Modernise the servicescape regularly according to trends - Work cross-functionally to elaborate your servicescape - Staff and customer feedback  - Benchmark Managerial implications: - Servicescape helps achieve external marketing goals - Servicescape helps achieve internal organisational goals - Servicescape provide provides a visual metaphor for an organisations total offering - Servicescape can help and hinder (deter) customers or employees from fulfilling their responsibilities - Servicescape can help segment, position, and differentiate company from its competitors Culture dictates behaviour - Culture is a powerful force that can cause people to make decisions that aren’t in their companies’ best interests. - A culture that discourages open dialogue and limits checks and balances can prompt cheating and fraud. - A culture with high standards that accepts failures as growth opportunities, on the other hand, benefits both the company and employees. Culture is the DNA of a company - Culture can be defined as the beliefs and values and how the company manifest themselves. - The structure like the skeleton, and like flesh and blood. - The soul that holds the things together and gives it life force - The personality of a company Culture is communicated in organisations by: - Formal/ public statements - Physical layout - Laws - Slogans - Language - Mentoring, modelling - Rituals - Explicit rewards, promotion criteria  - Stories, legends, myths, heroes… - Workflow and systems Managing culture through beliefs, values and norms Component of culture - Beliefs o Something that is accepted, considered to be true o Define how members of an organisation makes sense of their relationships with the external world and their influence on the internal organisation o We deeply believe in: ▪ Passionate customer care ▪ On compromising quality ▪ Non-negotiable product and workplace safety - Values o What members of an organisation say they value and reflect in the way individuals actually behave o Preferences for certain behaviours or outcomes over others (right/ wrong, desirable/ undesirable) o Our values are: ▪ We demonstrate integrity ▪ We listen ▪ We promote teamwork - Assumptions o The taken for granted notions of how something should be in an organisation Norms as part of cultures - Standards of behaviour that defined how people are expected to ask what part of the organisation - An organisation has a complex set of norms Types of norms: - Folkways o Referred to as customs o Norms for every everyday behaviour that people follow for the sake of traditional convenience o Breaking one does not usually have serious consequences ▪ Dress code or shaking hands - Mores o Strict form of norms that control moral and ethical behaviour o Norms based on definitions of right and wrong and are morally significant o People feel strongly about them and violating them typically results in disapproval Management by culture:  - The stronger the culture, the less necessary is to rely on the typical bureaucratic management control controls - The more uncertain the task, the more employees must depend on corporate values instead of formal policies, instructions, procedures to guide their behaviour Culture can be a competitive advantage - Strategies no more than a piece of paper without a supporting culture - Identify other organisations with successful cultures and try to emulate the process used to create those cultures - Create employees that have the spirit Example: Why a company culture? - Every company has a culture - Unmanaged cultures are dangerous - Build reputation - Helps new employees - Social glue - Forms a sense of identity - Defines boundaries - Serves as meaning making - Serves as a control mechanism - Reinforces values - Helps hire the best Types of culture: - Dominant culture  - Subculture - Counterculture Cultural and leadership - Theory X o People will work only as hard as they are made to work o Authorisation, repressive style, tight control, no development, produces limited, depressed culture - Theory Y o Liked work, satisfaction from work, want to do a good job o Liberating and developmental, control, achievement and continues improve improvement achieve enabling, empowering and giving responsibility The problem of addressing culture in workplace strategies - Organisational cultures are phenomenon of a different order from national cultures, if only because membership of an organisation is usually partial in voluntary, while the membership of a nation is permanent and involuntary Hofstede’s cultural dimension - Sampled 100,000 IBM employees - Compared employee attitudes and values across 40 countries - Isolated four dimension summarise culture o Power distance o Individualism versus collectivism o Uncertainty avoidance o Masculinity versus femininity Power distance - Degree of inequality of power and authority that a group member accepts and expect from his superior with himself or that he rejects Individualism versus collectivism - The dimension focuses on the relationship between the individual and his or her peers within a culture - I versus we - Individualistic societies o Loose ties o Individual achievement and freedom are highly valued - Collectivistic societies o Tight ties o Tend to be more relationship o Oriental group goals and well-being, our valued more than those of the individual Uncertainty avoidance - This dimension measures the extent to which a culture socialises its members to accepting ambiguous situation and tolerating uncertainty Masculinity versus femininity - This dimension looks at the relationship between gender and work roles - The distribution of emotional roles between the sexes (nurture versus power) Process: - Recruit o Internal vs external - Review - Interview & hire - Induct - Develop & retain ❖ For service companies, retaining good employees is essential to gaining and keeping good customers. ❖ You can’t build a loyal customer base without a loyal employee base. ❖ It’s like building a brick wall without mortar. Job description = What the job entails (tasks and responsibilities). Job specification = What the ideal candidate needs (skills, qualifications, experience). Process and questions to ask: ❖ Recruitment: generation of a pool of suitable candidates ❖ Selection: identify the most suitable candidate Why a new employee? What sort of workforce does the firm want? Does the employee fit the strategy, culture, technology, environment What are the inherent talent / skills and acquired skills / knowledge? What is the interest for a particular sort of work? What is the extent of intristic motivation? Does the employee have the spirit of “love to serve”? Why would the new employee choose my company? Steps in the Hiring Process ❖ Workforce planning/job analysis Identify demand for replacement/additional staff and estimate internal labour supply Identify available budget Job analysis/description/specification ❖ Recruitment External – Internal (within your company) ❖ Selection Establishment of criteria for evaluating applicants Initial screening Selection procedure Sometimes one day of test  Hiring ❖ Induction – Orientation Recruitment Sources ❖ Referrals from current staff ❖ Former staff ❖ Advertisements ❖ Employment agencies ❖ Temporary workers ❖ College recruiting ❖ Other job fairs ❖ Customers Recruitement – selection – hiring objective - Company fit o Interview culture fit - Skill fit o CV - Job fit o Assessment Herzberg’s motivator hygiene theory - Incentive theory proposes that employees can be motivated to show expected behavior when there is an expectation reward Training and developing staff - Should be based on performance evaluation - The process through which an employee’s job performance is formally assessed for the purposes of identifying opportunities for enhancing performance as well as for making decisions regarding merit pay increases and promotions Why do you need to have regular performance evaluation? - To improve job matching for current or future jobs - Communication of organisational values and objectives - Self improvement - Training and career development - Rewards - Hiring purposes - Staff motivation - Retention of employees - Eventually for dismissal Performance appraisal definition - The process by which a manager o Examines and evaluates an employee’s work behaviour by comparing with pre-set standards o Documents the results of the comparison o Uses the results to provide feeback to the employee to show where improvements are needed and why (business dictionary) Types of appraisal - Trait-based - Behavior-based - Results-based Management by Objectives (MBO) is a process of having each employee (mainly managers) set specific measurable goals and then using the achievement of those goals as a key driver for that employee’s assessment. MBO for the next operating period begins  1. Objectives set together 2. Progress monitored 3. Performance evaluated 4. Achievers rewarded The 360 degree appraisal - Top management - Immediate superior - Peers - Subordinates - Self - Customers Biggest mistakes in performance reviews - Too vague - Everything’s perfect until it’s not and you’re fired - Recency effect - No advance preparation - Disruptions during the process - No pats on the back - No recognition for doing the work of 3 people - Not being truthful with people about their performance - No follow up - No discussion around career ambitions - Being a bad listener Service process management The management of a chain of activities that are experienced based and allow the service to function effectively and that is in many cases dependent on human and interpersonal delivery systems And every stage, consume one or more resources (employee time, energy, machine machines, money) to convert inputs (data, material, parts, etc.) into outputs. Turtle method (As-is analysis) - And effective tool for businesses to utilise as they help management step back and review all processes - Help both managers and employees understand the interrelated processes within an organisation - Can also identify gaps in the organisation structure SOP - Scope and purpose - Audience and authors - Format and writing style - Test and adjust - Distribute and train - Review and update Questions to ask after having developed a flow chart - Are the steps arranged in logical sequence? - Do all steps at value? - Can some steps be eliminated? - Would the customer notice a loss of value of the step was eliminated - Would the product or service being complete without this step? - Can substeps be combined? - Do bottleneck exist? - We interaction with customer what guidelines to follow to represent a positive image? Training staff and methods  - Mentoring/coaching - Shadowing - On the job versus of the job - Internal versus external - Cross functional - Simulator - Computer based - Role-play - Virtual reality - Gaming Learning organisation - Where people continually expand their capacity to create the results they truly desire, where new and expansive patterns of thinking are nurtured, where collective aspiration is set free, and where people are continually learning how to learn together Create a learning organisation - Solving problems systematically - Experimenting new approaches to work - Learning from past experiences - Learning from other companies - Learning from customers - Transfer knowledge throughout the organization - Open culture - Go to the heart of the problem - Learn to learn - Learn from employees - Keep a data - 360 degree assessment Organizations anf knowledge Who brings you the hot ideas? - Idea practitioners: movers & shakers o They support visioning - In order to benefit from them o Recognise (identify) them o Create roles for them o Give them licences o Reqard them (moderately) o Back the idea o Back the person o Create an idea-friendly culture - Business honeybees – don’t take them for granted Learning loops for the HR department - Single loop (following the rules) o Fix the error so that everything remains the same, like a thermostat o Not exploring why the error happened at first place - Double loop (changing the rules) o Questioning your objectives, policies, strategy o Thinking out of the box o Try to find reasons of the error - Triple loop (learning about learning) o Questioning the context (possibly change it)  o Discuss what learning was produced from the conversation and how that learning was produced Change and performance - Change is everywhere and all the time - Good work often goes unrecognized - The restrictive process: for example, can traditional teaching performance indicators rate online learning as bad Measure - Measurement is only an indicator - Measuring the immeasurable (excessive, gigantic, unfathomable..) Expectations and observations - It is very important to understand the difference between expectation and observations - Expectations are full of emotion and judgement, but observations are facts, they are circumstantial, without feelings or emotions Parts and whole - Parts and Wholes: We all know that parts are subsets of something while the whole refers to the complete thing - Evaluation always breaks the natural understanding of the process by focusing on the parts The term employee trifecta generally refers to three key elements that contribute to a highly effective, satisfied, and engaged workforce. While the exact components of the trifecta can vary depending on the context. Engagement - Being emotionally connected to the organizstion, being fully involved in and enthusiastic about his or her work and who cares about the succes of the organization. Important for empowerment - Training - Willingness - Measurement - Rewards - Managerial buy-in How to determine motivation: - The ultimate measure of a man is not where he stands in moments of comfort and convenience, but where he stands at times of challenge and controversy Cost of employee turnover: - Using industry averages for the cost of finding, hiring and introducing a new employee, what is the annual cost of employee turnover for a company with 500 employees, an average annual salary of $65,000 and losing 90 employees a year Success traingles is composed of the KSA - Knowledge - Skills - Attitude Demand variation: Ways to manage capacity - Take reservations - Close the door, sorry we are sold out - Do nothing if lines create desirability - Manage demand - Manage / adjust capacity Yield and revenue management - Revenue management hospitality abroad concept refers to the distribution and pricing tactics that managers used to sell properties inventory and services to the right guest at the right time, to drive hotel revenue optimization. - Your management in hospitality is considered an individual branch within revenue management and is especially useful for tactically managing hotel rooms - Selling the right product, to the right customer, at the right price, at the right time Situation analysis: - Pre-arrival - Post arrival - Pre-process - In-process - Post-process Shift demand to match capacity With this strategy, the organization aims: - To shift customers away from periods in which demand exceeds capacity - To convince customers to use the service during periods of slow demand When using this approach capacity is adjusted, stretched and the line to match customer demand and customer capacity Managing queueing – KPIs - Average time a guest weights and cube - Average length of the queue/number of people - Average total time spent in the company - Average service time  - Arrival pattern (in time and party size) and the manner how people enter the queue LIFO (ex. Elevators) Single server single stage queue (ex. Atm) Multiple servers single stage queue (ex. Bank customers) Single channel, multi-phase (ex. Drive in) Multi-channel, multi-phase (ex. Laundromat : washers then dryers) Virtual queue 7 benefits of using a queue management system - Reduced wait time - More efficient workforce planning - Improve cost savings - More satisfied employees - Increased customer satisfaction and loyalty - Better conversations - Upgraded responsiveness – quick real time actions Murphy’s laws on reliability and queueing - If anything can go wrong, it will - If you change cues, the one you have left will start to move faster than the one you are in now - Your queue always goes the slowest - Whatever queue you join, no matter how short it looks, it will always take the longest for you to get served Waits in contrast – sequence effect – behavioral science - If a customer has just had a comfortable, totally explained, predictable wait, followed by a subsequent wait that is unpredictable, anxiety producing, and often uncertain length, the 2nd weight will seem longer than if a well-managed wait had not just occurred - If a customer has just had a long wait, a short one will feel even shorter in contrast - If a customer has just been waiting where employees were friendly and all were busy, that weight will seem shorter than a weight in which employees paying attention to guests and doing activities other than serving people in line Ex: The wait time complaints regarding luggage pick up at airports was reduced to 0 by making the customers walk longer to baggage claim from terminal, despite the time between them leaving the plane and receiving the luggage staying the same Queueing = bottleneck Bottlenecks are setbacks or obstacles that slow delay delay process and reduces the output to a minimum level Duration effects - Segment the pleasure o For example, at a theme park or a cruise line - Combine the pain o In a doctor office or hospital Customer – the one paying, consumer – the one using i.e. customer – parent buying a toy, consumer – child using said toy Secondary customers aspire to be assosciated with primary customers Buyer / consumer Decision Process: 1. Need / Problem recognition 2. Information search 3. Evaluation of alternatives 4. Purchase decision 5. Post purchase evaluation Generic dimensions of service quality according to Servqual: ❖ Reliability  The ability to perform serice reliably and accurately ❖ Assurance The knowledge and courtesy of employees and their ability to inspire confidence ❖ Tangibles The appearance of premises, equipment, personnel and communication materials ❖ Empathy The ability to pay attention to the customer individually ❖ Responsiveness The willingness to help customers and provide prompt service What do our customers value? - Products / services - Recruitment - Training - Innovation - Marketing, etc. Segmentation Identify segmentation variables and segment the market. Develop profiles for the obtained segments. Targeting Assess the appeal of each segment. Select target segment(s). Positioning Market segmentation: ❖ Geographic Customer Location Region Urban / Rural ACORN classification ❖ Demographic Age Gender Occupation Socio-economic group ❖ Behavioral Rate of usage Benefits sought Loyalty status Readiness to purchase ❖ Psychographic Personality Lifestyles Attitudes  Class Managing service quality gaps Servqual attributes: ❖ Reliability Providing service as promised Dependability in handling customers’ service problems Performing services right the first time Providing services at the promised time  Maintaining error-free records ❖ Responsiveness Keeping customers informed as to when services will be performed Prompt service to customers Willingness to help customers Readiness to respond to customers’ requests ❖ Assurance Employees who instil confidence in customers Making customers feel safe in their transactions Employees who are consistently courteous Employees who have the knowledge to answer customer questions ❖ Empathy Giving customers individual attention Employees who deal with customers in a caring fashion Having the customer’s best interest at heart Employees who understand the needs of their customers Convenient business hours ❖ Tangibles Modern equipment Visually appealing facilities Employees who have a neat, professional appearance Visually appealing materials associated with the service