THC 212 – QUALITY SERVICE MANAGEMENT IN TOURISM AND HOSPITALITY

Chapter 6: Designing and Managing Service

Learning At the end of the unit, the students must have:
Outcomes: • understand the concept of service design;
• comprehend the, challenges of service innovation and design;
• be familiar with the different service design principles;
• learn the differences among the types of service setting;
• explain the necessity for service process redesign; and
• understand how service process redesign can improve service quality and productivity.

Content: Concept of Service Design

- Design is a term often related to the physical structure or model of certain products that is
aimed to provide more value, better efficiency, or enhanced performance of the goods. The
term also applies to services, procedures, management styles, and processes with the
same purpose of providing value to clients and generating higher income for the
organization. With these objectives, design can be applied in all areas of the organization
using symbols in communication or materials and behavior to convey a specific types of
service.
- Design is used for various purposes in the different aspects of running a business
organization, such as creating standards in order to justify a premium price, introducing a
new product in a highly competitive industry, discouraging competitors, pleasing the
customers, streamlining complex procedures, motivate employees and members of the
organization, apply innovative ideas, improve efficiency, and establish the competitive
advantages.
- As an element of a business operation, design. can be a form of service, output or product,
part of a process, an activity, culture of the organization, or simply a management function.
- Design is often connected to the organization's action or reaction to external stimuli, such
as changing market demands, technological innovations, and emergence of competitors.

Service Innovation and Design

- The uniqueness of the tourism and hospitality industry as a service-oriented industry has
made the delivery, description, and communication of its product difficult. More so that the
product is intangible and often co-created with the customer makes it complex, very
dynamic, and challenging. The services provided by the hospitality industry are often
subject to the description of the product through words since the offerings cannot be
touched nor examined physically. With these, the method of describing the service through
words may lead to unfavorable results, which can be disadvantageous to the service
organization. Words that were used may somehow be inadequate or oversimplified to
describe a complex service. A cruise travel may simply be described as a trip to Bahamas
by boat, or a suite room may simply be mentioned as a bedroom with a sala and a
bathroom.
- The use of words alone may also result in an incomplete information detailed and intricate
process of preparing a meal service for two guests may be relayed with some details or
elements being omitted. Also, the person relaying the message or information may have a
biased idea or opinion that result in an opinionated description rather than a factual
delivery.
- Some organizations with impeccable track records apply strategies and that best fit their
 organization. These approaches may be cutting-edge and innovations that provide
impressive products and services. Organizations tend to adopt strategic balance to product
or service and delivery process. A combination would ensure that the organization
maintains its position from its competitors and improves in efficiency and productivity
process. Others follow the top management approach where top brass set the direction
and design and for others to be committed to the objectives set. Working together as me
team is also important in order to encourage employees or departments to get
synchronized with the main objective of the project.
- Before implementing service innovation, organizations can invest more attention in their
cultural dimension. It can enhance the collective cohesiveness, the trust between
members, and create a united professional team for enterprise service innovation activities
(Li, Li, & Gao, 20 19).

Service Design Principles

Holistic

Evidencing Co-creative

Service
Design

User-
Sequencing
centered

Five Principles of Design

- There are five principles of design that are followed by professionals. These are founded
on the idea that service design is focused on delivering quality customer experience.

1. Holistic. Although the design is focused on the customer, the organization should not
forget the idea that the environment plays a big role or influence on how well
services could be delivered. A carefully planned design would consider how the
different factors from the environment can enhance the service process.
2. Co-creative. Aside from the environment, those who create service designs should
also look and take into account the stakeholders who, in one way or another, may
influence the design. Consider as well the impacts on how the design process can be
properly communicated or delivered through the stakeholders to maximize the
potential of the service design.
3. User-centered. Service design is first and foremost created for the customers.
Designs must focus on how customers expect how the products or services will be
delivered. Ultimately, designs will be dictated by how customers will require the
service.
 4. Sequencing. Products and services most often are delivered from a combination of
interrelated actions to come out with an output which is the product or service. In
order to render the best service, proper sequencing and timely delivery should be
done, which may even increase the level of satisfaction of customers.
5. Evidencing. Unlike tangible products and goods which can be physically scrutinized,
services should somehow create a visual expectation of the product. This would
make the service establishment difficult to forget for it has created an impact on the
customers already.

- These principles serve as a guide in order to elevate the experience of customers.

Innovation can always be available at any given time. Consequently, the principles we
know today may be irrelevant tomorrow.
- Service innovations may be of different types and they are based on strategies and
solutions undertaken by firms around their services rather than a product.
- Some types of service innovations are the following:
1. Service Provision Innovation. There are several methods and styles in this type of
service innovation. This innovation is about the services offered by firms that are
either new or improvements of existing services. The types of this innovation include:
major or fundamental innovations — these are new services to the market that were
not yet offered and often create an impact to consumers, e.g., Internet applications;
new services for segments that are being catered to by an existing product that is of
same generic need — examples include ride-sharing services competing against
taxis or online banking which used to be supported by over-the-counter transactions;
service extensions — inclusion of new items among the choices of customers, such
as the new port of calls for cruise ships and new food in the menu; service
improvements — changes in features of services; and change in style — change in
color scheme, change in logo design, and website revision among others,
2. Service Innovation Around Customer. This innovation happens when the customer's
role is redefined or altered. People who enjoy eating while watching home movies
used to go to fast-food chains or convenience stores for their food during the movie-
watching session. New companies now are offering delivery services to bring the
food that a customer wants right to his/her doorstep.
3. Innovation Through Solution. Firms approach the customer needs not by the
traditional offering of products, but by offering activities translating to the provision of
solutions, such as consulting in the area of expertise, managed services, design of
travel and vacation, and outsourcing.
4. Service Innovation Through Interconnectivity. The advancement of technology
brought forth the digitization of most electronic products. With digitization, sensors
are built into these appliances, including ways that the equipment may communicate.
These sensors can capture data that can then be transformed to create information
and connectivity. This interconnectivity may result in technology development to be
able to provide comfort and convenience to customers. Interconnectivity allows the
equipment to be accessed remotely; enhances performance and safety; amplifies
knowledge and capabilities, and creates new capabilities.

Blueprinting Services
- Blueprinting is an illustration on how services are rendered. It shows how a service design
is implemented. It is a plan that displays the interaction between departments, or elements
and activities as part of one entity. Blueprint provides a tool to dissect the different
 components and steps in the process, how the tasks were performed, and proof of service
based on actual customer experience. Some of the steps in blueprinting services are the
following:
a. Prepare a diagrammatic format of all the elements and processes of the service
design. Geometric figures may be used to represent the different elements and
process flow. As the process becomes more complex, the diagram may also look
multifaceted and may require a larger space to render.
b. Recognize possible decision points and conflict zones or areas where there could be
possible issues and concern that may arise.
c. Set standards in terms of allowable adjustments acceptable from the perspective of
both the customer and the organization.
d. Any photos, slides, or videos of the process can be very useful as pieces of evidence
that represent contact points, encounters, or interactions.
e. Analyze the impact of the pieces of evidence, contact points, and interactions as
regards to the effect to efficiency and profitability of the organization.

Selected Methods and Tools for Service Process

Some of the other methods and tools used to analyze service process are the following:
1. Affinity Diagram. It is an analytical tool to gather and organize information from a
significant amount of mixed data sourced from researches, insights, concepts, diagrams,
brainstorm ideas, and designs. This method is employed to sort and bundle information
into groups or based on their relationships. Often, these connections and relationships
provide deeper insights and new ideas.
2. Brainstorming. It is a method to generate ideas from a group of people to solve a design
problem. Under the direction of a facilitator, members of the group contribute ideas freely
to cover as many areas as possible in search of best possible design. Rough ideas
contributed by the participants are gathered and refined to determine solutions.
3. Character Profiles. These supplement the understanding and appreciation of designers
by providing patterns or trends about service users. Knowing the profile would also help in
justifying the innovations and improvements design for the clients.
4. Contextual Interview. It refers to interview conducted in the natural environment where the
service occurs. This type of interview yields highly accurate and detailed information
because this method observes and probes the behavior of the service user. There is a
collaborative partnership between the interviewer and the service user to understand the
behavior of the user. In the interview, the observation and interpretation are discussed
with the user, wherein the user is free to correct or expand the interpretation of the
interviewer.
5. User Journey Map. It is a diagram that uses illustrations, photographs, and/or quotes
talking about the journey of the user through a service. It helps in identifying the key
stages and touchpoints along the user's service experience, what parts of the service
work for the user and what parts need to improve. It is a useful technique to understand
the motivations of customers in relation to their wants, needs, hesitations, and concerns.
6. Cultural Probes. These are also referred to as User Diary. It provides a way of gathering
information about people and their activities and insights about the daily life of
communities. Cultural probes are used when information needed from users are with
minimal influence on their actions, or when the process or event being explored happens
intermittently or over a long period.
7. Documentaries. These are a tool used to provide information at the initial stages of the
design process. This method is a visual representation of human emotions and
 expressions captured through film.
8. Empathy Probes. These are a tool for design that considers what the users are thinking
and feeling more than what they are doing and saying. Empathy probes give an
opportunity for the users to speak out what is in their minds. These help designers to
observe the users before concentrating on the area to engage deeply.
9. Ethnographic User Research. Is a tool used to support a deeper understanding of the
design issues for service designers. Through this research tool, the designer will be able
to establish what motivates the users to do something and what hinders them to not do
things. Ethnographic research is usually done at the beginning of the project to be able to
support design decisions.
10. Experience Prototype. It is a simulation of service to test new service ideas or design for
specific physical touchpoints. It seeks out whether the design is applicable to the user or
identifies the area that could possibly be improved. This tool communicates what the
experience would be like and allows the designer to test and to improve the designs with
the potential users.
11. Focus Group. It is a setting of deliberately selected people who are participants of
discussion about a particular topic which intends to bring out their perceptions and
feedback to design ideas. A trained moderator leads a discussion within the group that is
designed to gather helpful information. The moderator is with a set list questions that will
be shared with the group to elicit responses, opinions, and ideas from all the participants.
12. Immersion (Workshop). It is also known as emphatic research or role- playing . A
researcher involves himself/herself with the study area by becoming part of it. It is a good
source of information since the designer will have an actual experience with regards to
emotions and social interactions with the community.
13. Observation. It is a method that can be used to identify problems when users are
interacting with a product. Through observation, services can be evaluated and the user
experience can be determined to a certain level. With set parameters, by mere
observation, one could tell if the service is at par with expectations.
14. Personas. These refer to fictional characters created as archetypes, not stereotypes, to
represent types of users that avail of the services or products of companies. Personas are
created to help understand the needs, behaviors, experiences, and goals of users.
Through the personas, the needs and expectations of users can be recognized and
considered. Personas are not created from real people, but they are based on "actual"
data collected from different individuals. These help designers understand patterns from
the research and simplify the types of people that a designer seeks to design for.
15. Prototyping. This tool is used to examine the behavior and performance of a fresh design
before it goes to production. The service is tested by observing the interaction of the user
with a prototype of the service, mimicking the venue, settings, and conditions where the
service is actually rendered. The kinds of prototyping methods are the following:
a. Sketches and Diagrams. These are used to illustrate the ideas for discussion and
analysis. Sketches are among the earliest forms of prototyping and also the
simplest to use. These can be at its simplest or roughest form, and artistic skills
need not be at high level for them to be acceptable or of value. The objective is to
bring out the idea from somebody's mind and to share it to the team for scrutiny
and improvement. Sketches may include diagrams or mind maps to explain and
demonstrate a process, procedure, system, or structure. Diagramming is a related
concept to sketching which can be utilized in understanding complex situations
where different factors affect one another. Diagrams help a designer visualize and
analyze ideas that are interrelated which can either complement or contradict each
 other.
b. Storyboarding. This is a presentation of cases or prototype scenario using a series
of drawings or pictures to visualize a sequence of events. This tool can be used to
show a situation where interaction of service happened or a service prototype is
being tested for implementation. The tool also present information about the venue
where the service interaction took place, the personalities involved, and the details
about the actual setup during the interaction.
c. Building blocks Prototype. Beyond the idea of having fun with building blocks as a
toy, the versatility and ability to stimulate creativeness has made this toy a
valuable tool in prototyping. Building blocks are easy to handle which helps in
easily creating crude designs as prototypes or create scenarios to depict a story.
d. Role-play. This refers to acting out service situations where users interact with
products or services. The implied condition clarifies the direction where the service
design should take, that the service really exists and then render a possible
journey through its functionalities.
e. Physical Models. For design service that may require physical representation,
mock-ups can be created for testing. Materials that can be used include paper,
cardboard, wax, clay, and wood among others to build the models. The physical
model is a tangible representation of an idea which is related to the testing of
service interactions. This aids in having a better testing scenario with the users
and may trigger solutions or new approaches to finding solutions.
f. User-driven Prototype. This prototype method uses a unique approach in coming
up with a service design. Instead of the designer conjuring a design for the service
user, it is instead the user who will get to make a design. The user-driven
prototype recognizes that it is important to understand how the users think. This
tool is not into using the design generated by the user, but more of knowing the
point of view of the user. Upon knowing how the users think, the designers Can
come up with design solutions best suited for the users.
16. Scenarios. These refer to the creation of a hypothetical story to visualize how user will
utilize a service in order to generate design. Scenarios can either be written or drawn with
sufficient detail to anticipate and demonstrate the needs of users. These are useful in
communicating and designing services where multiple interactions may occur over a
period of time.
17. Service Prototype. This is a simulation tool to test the service design through observation
of the interaction between the user and the prototype of the service set in the place,
situation, and condition where the service truly exists. The objective of the test it to verify
what happens when other factors interfere during the service delivery. The simulation
varies from a simple "role-play" to more complicated full-scale recreation with active user
participation, props, and physical touchpoints.
18. Shadowing. The researcher acts as an observer only and does not interfere with the
participant in any circumstances. In this method, the researcher goes along with the users
and observes how they utilize the service or product within their natural environment. In
general, researchers immerse into the lives of customers or employee/staff to observe
their behavior and experiences. It gives an opportunity for researchers to witness the real
moments when problems occur or situations where people say one thing but actually
does something differently.
19. Stakeholder Map. It is a tool that shows a visual presentation of an organization's staff,
sponsors, investors, board, partner organizations, or customers. The map reflects the
level of interest and importance of the stakeholder in the organization. The stakeholders
 are listed and sorted on a chart based on the extent of their interest and influence or the
power each holds in the organization. A stakeholder map helps determine who among the
stakeholders possesses the biggest impact on the organization.

Service Setting
- The term service setting is defined as the physical environment or background in which
service is rendered. It paints an idea to clients, customers, stakeholders, and employees
on how service would be in terms of tangible and intangible features and appearance. The
tangible physical environment is also known as servicescape. Intangible physical
environment deals on ideology, values, and beliefs. An organization’s values and beliefs
may eventually conclude whether or not people will buy from it or avail of its services.
- It is in the design of the service environment where the brand or the distinct image of an
organization should be concentrated and expressed consistently. Service setting plays an
important role in today's competitive marketplace since it can communicate the exceptional
and enviable characteristics of an organization. In this way, an organization will gain
headway in terms of positioning and differentiation against its competitors.

Types of Service Setting

- There are two aspects on how service settings are classified. First, service setting is
differentiated based on service participants and the level of intricacy of service
involved.
- The first classification is concerned with whom the service setting would affect. Its
emphasis is to differentiate who is exposed to the design setting and is most likely
influenced by the design.
- Based on this, the first type of organization is called self-service. Customers of this
organization perform most of the transactions and activities. There is a minimal
participation from the employees of this organization. Examples of this organization are
online shopping, television shopping, online banking, movie, hotel, and airline
bookings, and online food ordering among others. In these organizations, the service
setting should be planned to provide seamless use of facilities, find the match market,
and provide the desired services of the customers.
- Directly in contrast with the first, the second type of organization is called remote
service organization wherein there are no customer involved in the service setting.
Examples are telecommunication companies and utilities provider (power, water, etc.).
The service design could focus on motivating employees in order to encourage
productivity, efficiency, and teamwork in the workplace.
- In between the two types are the organizations where both the customer and service
employees are present, called interpersonal services. Most hospitality and leisure
businesses are under this category, such as hotels, spas, resorts, and restaurants. In
this type, service setting should consider both customer and employee welfare to
maximize the quality of interaction between customers and employees.
- The second way of classifying service setting is through service complexity are
organizations that are very simple, modest in composition, few pieces and few
elements such are termed as lean. This type often provides from one simple structure
and it is often straightforward in nature. When setting in an organization is complicated
with multiple elements and forms, called elaborate.

Redesigning Service Processes

- Service process is similar to all other processes that become outdated because of the
 changes of factors affecting them, such as technology, customer needs and
preferences, presence of new offerings, new service features, and even changes in
policies and laws regulating such. Indications that service should be redesigned are as
follows:
 The volume of exchanges in communication between customer and service
units is heavy. It may imply that the data is no longer sufficient to satisfy the
requirements of the client
 Growing number of customer complaints about irrelevant and unnecessary
procedures.
 Exceptions are increasing.
 Proliferation of review and rechecking steps among new features or activities.
- Service process redesign is about increasing productivity and improving service
quality. The focus of the redesign process is to reduce the number of service failures,
shorten the completion process, to enhance productivity, and heighten customer
satisfaction.
- Redesigning the service process often entails activities that involve rereviewing the
present process and recommending actions, such as reconstruction, revision, or
substitution of service procedures. Some of the actions being undertaken by some
organizations in redesigning their service process are the following:
 Review the existing service design. A thorough review of the plan would help to
identify problems and to come up with solutions. The review may involve the
different stakeholders to participate in brainstorming for possible solutions and
or improvement to the process.
 Removal of unnecessary steps. Streamline the process by determining parts of
the process that are not essential and removing them or integrating them into
the other steps to make the procedure shorter and simpler.
 Eliminating the bottlenecks. Bottlenecks are steps in the service process where
capacity is slowed down. Managers may come up with suggestions to address
the inefficiency, strengthen the capacity, and ensure that the flow would be
smooth in the entire process.
 Shifting from service design to self-service. More and more organizations are
looking at self-service as an alternative to keeping their service process more
productive and cost-efficient. Airports encourage self-check-ins in kiosks
scattered around airports; hotels and fast-food chains are also into using the
automated self-service system.

Reference: Cornell, Daryll Ace V. et.al., 2020; Quality Service Management in Tourism and Hospitality