Uncommon

Service

Presented by
Varun Nigam

Uncommon Service

Authors

Frances Frei
Anne Morriss

Uncommon Service

Some facts about Service

Industry in India
Contributes
35%
A

to about 60% of GDP

of employment

quarter of the total trade

And

over half of the foreign investment

inflows

Uncommon Service

Some facts about Service

Industry in India
One

of the largest and fastest growing

sectors in the global market

Received

FDI equity inflows worth

179,150.49 crores in the period April
2000 August 2013

Uncommon Service

What do we need a service

for?
To

get help with the problems we face

while using a product

To

make a product meaningful

Uncommon Service

Helping is in Human Nature

and yet good services are
still rare
It

is not that employees and owners

want to deliver bad service
It is not that we need a bad service
We still get a bad service
Whats going wrong?

Uncommon Service

Channel human impulse to

serve into

Uncommon Service

Heres what the authors have

learnt
Uncommon

Service is not born from

attitude and effort
But from Design Choices made in the
very blueprints of a business model

Uncommon Service

It easy to say that we provide

services
It

is hard to Design a Service model

that allows average employees, not
just the exceptional ones to produce
service excellence as an everyday
routine

Uncommon Service

Outstanding Service
Organizations create
Offering
s

Funding
Strategi
es

Systems Cultures

Uncommon Service

How to deliver Uncommon

Service by Design

Uncommon Service

The Four Service Truths

You

cant be good at everything

Someone has to pay for it
Its not your employees fault
You must manage your customers

Uncommon Service

Principles of Service
Excellence
Funding
mechanism
Service
Offering
Which specific
Attributes of
Service are
you
Competing on?

Employee
manageme
nt system
Customer
Managemen
t System

How is
the
Excellenc
e
Are
Paid for?
employees
Set up for
Success?
How are
Customers
Managed
and
Trained?

Uncommon Service

You cant be good at

everything
Excellence

requires sacrifice
You must underperform on dimensions
your customers value less
You cannot depend on the faith that
your employees will perform heroically.
Excellence must be normalized

Uncommon Service

Example: Commerce Bank

Offers

the worst interest rates in the

industry
But open from 7:30 am to 8:00 pm from
Monday to Friday
Full banking services would be available
on Saturdays and Sundays

Uncommon Service

Where to be Good and where

to be Bad?
Find

what your customers value most

Service is more about best in class
customer interactions
Employees best-of-the-best in both
Attitude and Aptitude are expensive

Uncommon Service

Where to be Good and where

to be Bad?
People

with good attitude are desired

in service industry
Simplify your products to deal with
any problem arising from less aptitude
of the employees

Uncommon Service

The Attribute Map

Most
Convenience
Important
To target
Customer
market
interactions
---

Least
Important
To target
market

Product
Range
Price
Relative performance
of the firm

Uncommon Service

Putting it into practice

Create

an internal attribute map

Create an external attribute map
Analyze your performance
React

Uncommon Service

Attribute map for analyzing

performance
Most
important
To target
market
Least
important
To target
market

Quality of
installation

Need a
Wedge

Low price
--Responsiveness
--Courteous and
professional

Your company
Competitor

Proactive
Follow-up

Relative performance
of the firm

Uncommon Service

Wasted Wedge
Most
important
To target
market

Quality of
installation

Wasted
Wedge

Low price
--Responsiveness

Least
important
To target
market

--Courteous and
professional

Your company
Competitor

Proactive
Follow-up

Relative performance
of the firm

Uncommon Service

Wasted Profit
Most
important
To target
market

Quality of
installation

Wasted
Profit

Low price
--Responsiveness

Least
important
To target
market

--Courteous and
professional

Your company
Competitor

Proactive
Follow-up

Relative performance
of the firm

Uncommon Service

Someone has to pay for it

The

most successful service models

incorporate a mechanism for reliably
funding an exceptional experience
4 funding mechanisms which can be
used to sustain your premium offering.

Uncommon Service

4 ways to pay for excellence

Charge

customers extra for it in a

palatable way
Make cost reductions that also improve
service
Make service improvements that also
reduce costs
Get customers to do the work for you

Uncommon Service

Examples
Commerce

Bank did not charge

customers for better service but offered
lower interest rates on deposits
Loyalty programs, if designed
correctly, are a great way to get paid for
your premium service

Uncommon Service

Examples
Classrooms

reduced costs and offered

more benefits than private tutors
Intuit asked its product development
team to take customer calls for support
Big Bazaar uses the customers serve
themselves model

Uncommon Service

Its not your Employees fault

It

may not be that you have hired an

entire company of people who just dont
get it
You might have built a service model for
phantom employees which you wish
you had, but you actually dont

Uncommon Service

The successful Employee

Management System
Selection
Training
Job Design
Performance
Management

Uncommon Service

Selection Cost of hiring Stars

High

Aptitude

Low
Low

High

Attitude

Uncommon Service

The competence-complexity
gap
Operational
Complexity

Level
Employee
Sophistication

Time

Gap
Experienced
By front line

Uncommon Service

Start attacking system-wide

complexity
Start here

Dont start here

High

Operational
complexity
Low
Low

High

Direct value-add to customers

Uncommon Service

You must Manage your

Customers
Customers

play a special role in service

encounters. This phenomenon is called
customer-operator
Customers dont just consume service,
they also participate in creating it

Uncommon Service

You must Manage your

Customers
Customers

can increase the cost and

reduce the quality of your service
Sometimes they can help on both
fronts, but that is too rare
How do you get your customeroperators to behave?

Uncommon Service

Managing the Chaos of

Customers
Variability of customers can take the following
different forms
Arrival

Will come at any time

Request Ask for anything they want

Capability Difference in knowledge
Effort

Effort levels will vary

PreferenceDifferent definitions of quality

Uncommon Service

Successful Customer
Management System
Customer Selection
Customer Training

Service only to selected

customers
Customers need training to
Perform their roles

Customer Job Design

Give your customers less

work

Managing customer
performance

Customers shouldnt be
Left entirely on their own

The Values Lever

Give a great value to your

Customers

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Weve Designed. Now Multiply

it by Culture

Service Excellence = Design x Culture

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What after you develop your

Culture?

Get Bigger

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An Uncommon