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Chapter 9

Service Processes

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Some Service Generalizations

1. Everyone is an expert on services.

2. Services are idiosyncratic.

3. Quality of work is not quality of service.

4. Most services contain a mix of tangible

and intangible attributes (service
package).

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Service Generalizations

5. High-contact services are experienced,

whereas goods are consumed.
6. Effective management of services
requires an understanding of marketing
and personnel, as well as operations.
7. Services often take the form of cycles of
encounters involving face-to-face,
phone, and/or mail interactions.

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The Customer Centered View

AAphilosophical
philosophicalviewviewthat
that
suggests The Service
suggeststhe
theorganization
organization Strategy
exists
existsto
toserve
servethe
the
customer,
customer,andandthe
the
systems
systemsandandthe
the
employees
employeesexist
existto
to
facilitate
facilitatethe
theprocess
processof
of The
service.
service. Customer

The The
Systems People

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Service-System Design Matrix

Exhibit
Exhibit7.6
7.6
Degree of customer/server contact
Buffered Permeable Reactive
High core (none) system (some) system (much) Low
Face-to-face
total
customization
Face-to-face
Sales loose specs Production
Face-to-face
Opportunity Efficiency
tight specs
Phone
Internet & Contact
on-site
Mail contacttechnology

Low High

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Service Blueprinting Steps

1. Identify processes

2. Isolate fail points

3. Establish a time frame

4. Analyze profitability 
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Example of Service Blueprinting

Standard Brush Apply Collect

execution time Buff
shoes polish payment
2 minutes
30 30 45 15
secs secs secs secs
Total acceptable
execution time
Wrong
5 minutes
color wax
Clean Fail
shoes point Materials
Seen by
(e.g., polish, cloth)
customer 45
secs

Line of Not seen by

visibility customer but Select and
necessary to purchase
performance supplies

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Service Fail-safing
Poka-Yokes (A Proactive Approach)

• Keeping a
mistake from Task
becoming a
service defect
(fail-safe)
Treatment Tangibles

• How can we
fail-safe the
three Ts?
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Have we compromised one of the
3 Ts?

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Service Recovery (Just in case)

• A real-time response to a service failure.

• Blueprinting can guide recovery planning

(fail points).

• Recovery planning involves training

front-line workers to respond to such
situations as overbooking, lost luggage,
or a bad meal.

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What is a Good Service Guarantee?

• Unconditional
• Meaningful
– The payout covers--fully--customer
dissatisfaction
• Easy to understand and communicate
– For customers
– For employees

• Painless to invoke
– Given proactively 

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Characteristics of a Well-Designed Service System

1. Each element of the service system

is consistent with the operating
focus of the firm

2. It is user-friendly

3. It is robust

4. It is structured so that consistent

performance by its people and
systems is easily maintained

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Characteristics of a Well-Designed Service System (Continued)

5. It provides effective links between the

back office and the front office so that
nothing falls between the cracks

6. It manages the evidence of service

quality in such a way that customers
see the value of the service provided

7. It is cost-effective

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