APRESENTATION

ON SERVICE OPERATION MANAGEMENT

TOPIC- Service Culture and managing service delivery

BY-Afreen Jameer (Roll No.-4)

Hussain Mustafa Azad(Roll No.- 29)Rahul Rajkumar(Roll No.- 59)

Service Culture

DEFINING SERVICE:• Corporate culture of an organization is the

pattern of shared values, beliefs, and rules or patterns of common behavior in the organization.

• A service culture implies type of organizational culture that promotes kinds of behavior in its employees that leads to high concern for serving its customers.

• Zeithaml and Bitner (2003) define service culture as:

“Culture where an appreciation for good service exists, and where giving good service

to internal as well as ultimate, external customers is considered a natural way of life

and one of the most important norms by everyone.”

•Service culture can be built in an organization only by a sustained and consistent effort over and extended period. •It cannot be introduced by top management diktats only.

Culture also encompasses the products and services, and the physical appearance of the organization’s facility, equipment, or any other aspect of the organization with which the customer comes into contact.

Building of service culture requires sustained attention to:

Developing the people

to deliver service quality

Hiring right people

Retaining the best people

Providing

needed support system

to peopleService

culture

Organizational view of service culture •Service cultures differ from organization to organization

•Culture includes values, beliefs, norms, rituals, etc. 

•Any policy, procedure, action or inaction on the part of an organization and its employees contribute to service culture.

•Employees can play key roles in communicating a company's culture to its customers.

•Examples include: employee dress code, interactions with customers, service provider's knowledge, skill, and attitude.

• An organization’s service culture is made up of many facets, each of which affects the customer and helps determine the success or failure of customer service initiatives.

Successful organizations are customer- centered or customer-centric and focus on individual needs.

• A service culture implies type of organizational culture that promotes kinds of behavior in its employees that leads to high concern for serving its customers.

• Companies develop vastly different service cultures depending on their industry, product, size, business model, etc. The culture is usually set and communicated by top executives.

Elements of a Service Culture

Service philosophy or mission

Employee roles and expectations

Products and services

Policies and procedures

Delivery systems

Management support

Motivators and rewards

Training

• Service philosophy or mission : The direction or vision of an organization that supports day-to-day interactions with the customer.

• Employee roles and expectations: The specific communications or measures that indicate what is expected of employees in customer interactions and that define how employee service performance will be evaluated.

• Delivery systems: The way an organization delivers its products and services.

• Policies and procedures: The guidelines that establish how various situations or transactions will be handled.

• Products and services: The materials, products, and services that are state of the art,

competitively priced, and meet the needs of customers.

• Management support: The availability of management to answer questions and

assist front-line employees in customer interactions when necessary. Also, the level

of management involvement and enthusiasm in coaching and mentoring professional

development.

• Motivators and rewards: Monetary rewards, material items, or feedback that

prompts employees to continue to deliver service and perform at a high level of

effectiveness and efficiency.

• Training: Instruction or information provided through a variety of techniques that

knowledge or skills, or attempt to influence employee attitude toward excellent

service delivery

Managing Service Delivery

Customer Service D-E-L-I-V-E-R-Y

Dedicated Empowered Linked Informed Valued Experienced Representative “Your” responsibility

D E L I V E R Y

Management definitionOf these needs

Translation into design/Delivery specs

Execution of design/delivery specs

Customer perceptions of product execution

Customer needs &expectations

Advertising & sales promises

Customer interpretation of communication

Customer experience relative to expectations

CUSTOMER

Knowledge Gap (1)

Standard Gap (2)

Delivery Gap (3)

Internal Communication Gap (4)

Perception Gap (5) Interpretation Gap (6)

Service Gap (7)

(4)

SERVICE

GA P

MODEL

GAPS IN SERVICE DELIVERY AND DESIGN

• GAP 1 : difference between management perceptions of what customers expect and what customers really do expect.

• GAP 2 : difference between management perceptions and service quality specifications - the standards gap.

• GAP 3 : difference between specific delivery standards and the service provider’s actual performance on the standards.

• GAP 4 : The difference between service delivery and what is communicated externally - are promises made consistently fulfilled.

• GAP 5: The difference between what customers expect of a service and what they actually receive– expectations are made up of past experience, word-of-

mouth and needs/wants of customers– measurement is on the basis of two sets of statements

in groups according to the five key service dimensions

• GAP 6 : The difference between what a service provider’s communication efforts promise and what a customer think was promised by these communication.

• GAP 7 : The difference between what customers expect to receive and their perception of the service that is delivered.

Strategies for closing the gap

Zeithaml Prasuraman and Berry propose a series of generic steps for closing gap 1 to 4..GAP 1: (the Knowledge Gap)• Learn what customers expect.• Increase direct interactions between

managers and customers to improve understanding.

GAP 2 (the Standard Gap)• Establish right service quality standards.• Set, communicate, and reinforced customer-

oriented service standards for all work units.• Establish clear service quality goals that are

challenging , realistic and explicitly designed to meet customer expectations.

GAP 3(the Delivery gap)• Ensure that service performance meets standards.

Clarify employee roles.• Ensure that all employees understand how their jobs

contribute to customer satisfaction.• Match employees to job by selecting for the abilities

and skills provide employees with the technical training needed to perform their assigned task effectively.

Gap 4(the internal communication gap)• Ensure that communication promise are

realistic.• Seek inputs from operations personnel when

new advertising programs are being created• Get sales staff to involve operations staff in face

to face meetings with customers.• Develop internal educational,motivational,and

advertising campaigns to strengthen links among marketing,operations and human resource department.

GAP 3 :• Clarify employee roles• Ensure that all employees understand how their jobs

contribute to customer satisfaction. GAP 4 :• Ensure that communication promises are realistic.• Develop internal educational, motivational, and

advertising campaigns to strengthen links among marketing, operations and human resource department.

GATI – Ahead In Reach

• Among the top 5 players in the country.

• Best domestic logistics company award.

• Network reaches up to 580 districts out of 590 districts.

• International operations.

Customer needs &expectations

Management definitionOf these needs

Translation into design/Delivery specs

Execution of design/delivery specs

Advertising & sales promises

Customer perceptions of product execution

Customer interpretation of communication

Customer experience relative to expectations

CUSTOMER

Knowledge Gap (1)

Standard Gap (2)

Delivery Gap (3)

Internal Communication Gap (4)

Perception Gap (5) Interpretation Gap (6)

Service Gap (7)

(4)

SERVICE

GA P

MODEL

Key Factors Leading to

KNOWLEDGE

GAP

Customer needs & Expectations

Management definition of these needs

Improper field level Information.

Business Intelligence not available for decision making at all levels.

Least attention paid to small customers.

GATI’S SOLUTION:

Customer’s information is collected through feedback forms.

Appointment of executives to cater all types of customers.

Key Factors Leading to Standard Gap

STANDARD

GAP

Translation into Design

No proper service design for customers.

Fluctuation in fuel prices.

No Insurance for goods.

Improper allocation of funds.

GATI’S SOLUTION:

Sharing the burden of increasing fuel prices.

Insurance for goods.

Management definition of these needs

Key Factors Leading to Delivery Gap

DELIVERY

GAP

Execution of Design

Poor employee-technology job fit.

Delay in delivering the service.

Over pricing to match demand.

GATI’S SOLUTION:

Employees are properly trained.

Promptness in delivery.

Translation into Design

Key Factors Leading to Communication Gap

COMMUNICATION

GAP

Execution of Design

Improper horizontal communication.

Customer enquiry constraints. Absence of strong internal marketing.

Lack of adequate education for customer.

GATI’S SOLUTION:

Toll Free Number available to provide information to the customers.

Gati.net.

Advertising And Sales Promises

Key Factors Leading to Perception Gap

PERCEPTION

GAP

Execution of Design

Indifferent attitude towards customers.

Improper design leading to negative perception.

Improper information transparency to their supply chain partners to maintain competitiveness.

GATI’S SOLUTION:

Should have a positive attitude towards the customer.

Proper market research to change design accordingly.

Customer Perceptions of product execution

Key Factors Leading to Interpretation Gap

INTERPRETATION

GAP

Advertising And Sales Promises

Overpromise, under delivery.

Main customers - Corporate customers. Hence interpretation of a local customer varies differently.

GATI’S SOLUTION:

Should focus on B to C advertising apart from B to B advertising.

Provide services as promised .

Customer interpretation of communication

Key Factors Leading to Service Gap

SERVICE

GAP

Customer perceptionsOf product execution

Value added services.

Ware housing facility.

Reverse logistics.

GATI’S SOLUTION:

Started giving value added services in some areas.

Customer Interpretation of communications

Customer experienceRelative to expectations

Thanks!!!!