Designing and Managing

Service Processes
Why Designing & Managing the
Process
 As Delivered in real time with customers
present in the service factory

 Service delivered should highly satisfy

customers and operationally efficient.

 Thus High need to avail marketers and

operational specialists and even a human
resource expert in high-contact services to
design the service process
Key Tool

1. Identify key activities in creating and

delivering the service
2. Distinguish between front stage and back
stage
Blueprinting is 3. Chart activities in sequence
the key tool 4. Show how interactions between
in service customers and employees are supported
by backstage activities and systems
designing
5. Establish service standards for each step
6. Identify potential fail points
7. Focus initially on “big picture” (later, can
drill down for more detail in specific
areas)
 Blueprinting a Hotel Visit

Elevator, corridor,
Physical Hotel exterior, lobby, employees, key room, bellhop
Evidence
Make Arrive, Check-in Go to
Stage

Customer reservation parking at reception room

Line of
Actions
Interaction
Employee Doorman Receptionist
Front

Actions greets, verifies, gives

Face-to-face Customer key to room
takes car
Phone
Contact Rep.
records,
confirms
Line of
Visibility
Parks Car Make up
Backstage

Room

Enter Register
data guest data
Improving Reliability of Processes
by Failure Proofing

 Analysis of reasons for failure often reveals opportunities for

failure proofing to reduce/eliminate risk of errors
 Errors include:
 treatment errors — human failures during contact with customers
 tangible errors — failures in physical elements of service

 Fail-safe procedures include measures to prevent omission of

tasks or performance of tasks
 incorrectly
 in wrong order
 too slowly

Need for fail-safe methods for both employees and

customers
Process Redesign: Approaches

 Eliminating non-value-adding steps

 Shifting to self-service
 Delivering direct service
 Bundling services

 Redesigning physical aspects of service

processes
 Self Service Technologies (SSTs)
 Self-service is ultimate form of customer involvement
in service production
 Customer directly uses the system and facilities
available and avail the services thereby

 Internet based services are also the part of self-service

to divert customers from direct contact of the
customers
 “JAYCUSTOMERS”
Who is a “Jaycustomer”?

“A customer who behaves in a

thoughtless or abusive fashion,
causing problems for the firm itself,
employees, or other customers”.
Why do Jaycustomer matter?
 Can disrupt processes.
 Affect service quality.
 May spoil experience of other customers.
Types of “JAYCUSTOMERS”
 The Thief – seeks to avoid paying for service/ manipulates
Remedies:
Finding out various ways how people can steal – then
prosecuting them
But in severe check should not overlook the genuine
ones
 The Rule breaker – ignores rules of social behavior and/or
procedures for safe, efficient use of service

Remedies:
Depends upon which type of rule has been broken
If legally supported one then can be punished
If health and safety related then needs to be educated
If social, then needs to be guided and warned
 The Belligerent – angrily abuses service personnel (and
sometimes other customers) physically and/or emotionally

Remedies:
Move away such customer from public
Bring a third party in between
Break for reflection (telephone-conversation)

 The Family Feuders – sub-category of belligerents who get in

to arguments with other customers mostly their own family
members and spoil the scene around
Remedies:
Employee intervention may either spoil the situation or
even solve so should give a trial error based effort
Detailed analysis of the situation needs to be taken &
managers need to take a quick respond
Finally if no other option then warn your customer
 The Vandal – consciously damages physical facilities,
furnishings, and equipment
Remedies:
Improved Security
Security deposits
Sign an agreement
warnings about fragile objects

 The Deadbeat – fails to pay bills on time

Remedies:
Ask for Pre-payments
Present customer immediately with the bill
If sending the bill then send it sooner when
the service is still fresh in the minds of
customers