Introduction to Management and Leadership Cluster 5: Improvement, Change and Innovation Show 1 Custo

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Introduction to Management and Leadership
Cluster 5 Improvement, Change and Innovation
Show 1 Customer Service
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The Service Process
Service Requirements
Requirements
SUPPLIERS
CUSTOMERS
VALUE ADD INTERNAL
Inputs
Outputs
Feedback, Measurement Auditing
Customer needs expectations drive process at
all stages
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Continuous customer service process

• Identify customers
• Plan service based on identified needs
• Skill staff
• Review plan and communicate

• Revise and redesign
• Improve
• Act on data performance

ACT PLAN
CHECK DO

• Monitor progress
• Check measures
• Review customer satisfaction (internal and
  external)

• Collect data on customers
• Set specific targets/ objectives
• Devise action plans
• Establish data collection analysis points

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Customer Service Quality

• Customer Involves an identifiable individual,
  group or organisation with a need and
  expectations as to how it can be satisfied
• Service The product, process and people that
  perform to satisfy an identifiable customer need
• Quality Defined by the customer (outside an in
  the organisation) to meet their needs without
  variation over a number of service encounters
  with the same company
• Total Relates to all aspects of the company,
  including management, staff and the processes
  used by an organisation. It also relates to all
  the people even remotely involved at all stages
  in the supply chain and operations resulting in
  the service/product development and delivery.
• Continuous An emphasis on how people and the
  organisation continuously learn, develop, adapt
  and improve. In quality terms it means the fit
  for use aim is at a moving, rather than a static
  target.

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TCS, Excellence and Satisfaction

• Service Excellence -demands organisations satisfy
  the customer by defining and exceeding the needs
  or expectations of both internal and external
  customer.
•  
• Total Customer Service Quality demands
  satisfaction of customer expectations drive
  organisational effort across the full supply
  chain - from the supplier of raw materials right
  through to the retention of a long-term
  relationship with the customer(s).

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Albrecht total customer service model
Customer Need
Customer Expectation
Total customer service
Service
Service Delivery
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Expectations and actual service

• Total Customer Service (TCS) Actual Service -
  Expected Service.
• Customer Satisfaction is achieved where actual
  service is EQUAL to or GREATER than expectations

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Customer satisfaction

• What is a satisfied customer?
• Someone whos expectations have been met
  throughout the transaction
• Someone that receives personal attention to their
  needs
• Someone that wants to continue the service
  relationship
• What are the types of Dissatisfaction
• Product
• Service and post sales support
• Organisational attitude
• Access to, or response to a complaint

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Expectations and promises

• Expectations Outcome
• Under promise Fewer customers but very
  satisfied customers
• Realistic Promise Satisfied customer base
• Over Promise More initial customers but
  ultimately
• very dissatisfied customers and
• negative feedback

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TCS is much more than servicing the end customer

• The focus is on the process of adding-value from
  the beginning of the process (securing raw
  materials or farm gate) to the delivery of an
  outcome desired by the customer. This is a wider
  focus than just on delivery of a product or
  service

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Internal customers

• An employee when supplying work to another
  employee is a supplier. An employee when
  receiving work from another employee is a
  customer.
• Internal customer service involves being able to
  anticipate, measure and respond to the difference
  between customer expectations and needs
  throughout the design and delivery of the service
  for the full period the service outcome that can
  be expected to apply to customers (both internal
  and external)

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The service chain
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The Ripple Effect

• The ripple effect occurs when staff do not act as
  good customers or suppliers to the next
  customer in the internal supply chain
• A problem is passed off as not mine. This
  passes the problem onto another worker.

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Single point of contact

• The SPOC approach requires
• An holistic approach to the way we structure our
  work units (sections, departments)
• Multiskilling of the workforce to handle a number
  of different tasks
• Sharing data and information
• A referral system with follow-up
• Teamwork
• Standards of Service

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Delivering on a Moment of Truth (MOT)

• MOT is any contact a customer has with the
  organisation, no matter how remote, that provides
  the opportunity for that customer to form an
  impression
• (Jan Carlzon, 1987)

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The cost of not achieving service quality

• Loss of customers
• Inability to respond to changing customer needs
• Failure to identify what you do and who are the
  customers
• Lack of focus in corporate training or cross
  functional decision making
• Decreased reliability and increased service
  variability

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Measures of service quality

• Friendliness of your service staff
• Speed
• Accuracy of information you provide
• Technical expertise and knowledge
• Quality of the equipment/service
• Access and control over dealings with you
• Be treated as an individual
• To be recognised as important
• Flexibility in responding to unusual requests
• Ability to communicate
• Accuracy of information provided
• Market price
• Supply cost

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Customer Relationship Management (CRM)

• CRM is a strategy, process and technology used
  to uncover, store, analyse and report customers'
  needs and behaviours in order to develop stronger
  service relationships.

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Service standards

• Service standards orient performance towards a
  promise or target expected by the customer
• The statements must be measurable, achievable and
  set an outcome that eliminates undesirable
  (variations) and emphasises desirable actions

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Sigma 6 Approach to customer driven continuous
improvement cycle
CUSTOMER EXPECTATIONS AND SATISFACTION
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Parasuraman, Zeithaml and Berry service gaps model
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Albrecht's seven sins of internal service
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Albrecht's Seven Sins of Internal Service
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Signs of successful leadership for service quality

• Signs of effective workplace coaching for
  service quality can include
• Leadership AttitudeA compelling vision and path
  are detailed and owned by management with an
  emphasis on problem resolution at point of
  contact, focussed on higher quality and can
  define it.
• Business Approach Quality policy is
  systematically installed with clear measures
  linked to business planning goals that reflect
  process outcomes that will satisfy customer
  needs.
• Partnership Quality statements are formed in
  collaborative response to shareholders, customer
  (external) and staff needs with a commitment to
  help promote success in their work.
• Cost Effective Productivity is improving with
  waste reduced and external image improved.
• Pro-active Prompt response to issues and the
  product design and delivery conducive to
  responsiveness to changing customer needs
• Customer Orientation Both internal and external
  identification of expectations

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Customer feedback

• Customer feedback can assist answer some very
  important questions
• How can we satisfy our customer?
• Why are we doing it?
• What do our customers tell us?
• How do our customers suggest we can do better?
• What are our competitors doing?

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Valuing the service team as a source of feedback

• The service team and individual members are an
  excellent source of feedback. They can assist
• To gather and record data
• To provide feedback on change/transformation
  strategies
• To add their own wisdom and experience to the
  feedback through indication of their own
  perceptions
• To respond to current customer attitudes and
  changing needs
• To provide mutual support and dialogue
• To identify support needed by staff from
  management (resources, training, etc.)
• To structure reviews on measures and targets and
• To report to management on the improvement
  process and targets attainment.

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Hostile feedback

• Three factors need to be considered when dealing
  with hostile feedback or complaints
• the cause of the complaint
• the actions necessary to resolve the complaint
  and
• the controls necessary to capture valuable
  feedback

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Shaping expectations during hostile feedback

• Communicate
• Be responsive and listen.
• Empathise
• Separate blame from problem.
• Focus on the corralling the customers core
  needs.
• Clarify
• What is the problem?
• Isolate and refine needs?
• What can be done?
• How will it be done?
• Correct
• Take Action - fix it.
• Retain customer

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Act on feedback or data

• Act on results of customer and staff feedback
• Act on surveys and update management information
  (Ie. Convert it into meaningful knowledge)
• Engage staff to develop an action (Ie. Produce a
  tangible, visible and participative response)
• Target problems you own (systems and process
  level issues) and target where coaching session
  can assist individuals or the team
• Report, record and develop a systematic means to
  map improvements over the data received (i.e. Use
  the data collected over periods of time to assist
  with ongoing planning and decision making) and
• Schedule regular team meetings to share
  responsibilities for implementing all the above

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Leadership Role in TCS

• Less control of people and more leadership
• Greater discretion for everyone
• Customer focus NOT just profit focus
• Breaking down departments (internal units) and
  working holistically

• Focusing on processes Monitoring processes
• Undertaking customer audits
• No defects (no range of acceptability)
• Reducing variables and raising standards
• Listening an incorporating all staff ideas for
  improvement
• Continuously improving

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Auditing Total Customer Service

• Define Output Requirements
• Develop Process Measures
• Audit the Process
• Opportunity for improving the process
• Service quality gaps are identified
• Individual performance and team performance are
  differentiated
• Take Action to Solve Problems or Improve the
  Process
• Techniques and tools are used to solicit and act
  upon individual and team input
• Results form the base-line for improvement
• Periodically Re-audit the Process and
  Tighten/Improve Measures
• Once is not enough so the review is on-going and
  undertaken again at critical intervals

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Using reports and review data

• TCS review and report information can assist
• Improve service and operational efficiency
• Target marketing
• Plan sales plans and processes
• Improve value return from sales or service
  strategies
• Assist train and improve staff performance
• Identify and capture new customers Increase
  revenues
• Provide information and data for forecasts,
  research and future planning
• Manage the brand and market segments
• Enhance the rational basis for decision-making