1. XV INTERNATIONAL CONFERENCE ON INDUSTRIAL ENGINEERING AND OPERATIONS MANAGEMENT The Industrial Engineering and the Sustainable Development: Integrating Technology and Management. Salvador, BA, Brazil, 06 to 09 October - 2009 A COMPETENCE-BASED APPROACH TO SERVICE DESIGN: USING THE SERVQUAL MODEL TO IDENTIFY SERVICE REQUIREMENTS FOCUSED ON CLIENTS EXPECTATIONS. Daniel Gonalves Simes dos Santos (CEFET-RJ) daniel@otmo7.com rsula Gomes Rosa Maruyama (CEFET-RJ) ursulamaruyama@hotmail.com Caroline Abranches Bernardes dos Santos (UVA) caroline@otmo7.com Raquel Gonalves Coimbra Flexa (CEFET-RJ) raquelflexa@yahoo.com The increasingly importance of organizational performance in the last years has made corporations pursuit operations efficiency and demand a service design approach truly aligned with the client necessities. The method based only on the mannagers perceptions is likely to fail, once demand is volatile and the client expectations might vary in the meantime. This paper aims to discuss this issue from the service gaps standpoint with the competence management approach as a theoretical contribution to the service science foundations. In addition, the SERVQUAL model was chosen to complement the proposed approach for being a practical and widely known tool. Given the experience gained with the competence method, this study envisions a better outcome to organizations based on knowledge-intensive activities, or human-intensive processes. Henceforth, we intend to build an ICT platform to foster the development of effective and lean operations. Finally, integrating these practices would lead to an outstanding end, which is delivering a real value to the client expectations. Palavras-chaves: SERVICES, QUALITY, COMPETENCE

2. 1. Introduction The competition between organizations increases the demand for better offers and strategies (HAMEL & PRAHALAD, 1994). Concomitantly, the global scenario imposes the need to organizations adapt themselves for times of qualified human resources and credit shortages. Brazil is no exception to that. For service-based operations the importance is even greater given its own characteristics (i.e. a great range of services are people-intensive or knowledge- intensive). According to Machuca (2007), the majority of work in service operations management (SOM) area is done in strategy and without any empirical research. This paper intends to address tactical elements of increasing relevance to the organization, such as personnel allocation. Therefore, identifying and proposing a way to understand the knowledge resources utilized by workers in service organizations, would align with the customer's real demands and expectations. First, the definition and importance of service is presented, followed by the global service sector and the Brazilian scenario overview, mentioning the Service Science, Management and Engineering (SSME) initiative. Additionally, the process management, and the competence theories are considered with their major implications for the current study. Furthermore, the comprehension over the customers requirements is reviewed, based on the understanding of quality gaps and the SERVQUAL model. Finally, the proposal to combine both approaches (competence and SERVQUAL) is introduced with the first impressions to technological tools to support those methods. We also suggest alternatives to future research such as the integration of knowledge management systems (KMS) and business process management systems (BPMS) to improve efficiency and obtain better human resources' training and allocation programs. 2. Defining Services The Academia has different perspectives when classifying a service, once it is a relative new science. It is difficult to define exactly where one definition begins and where finishes the other. Therefore, this issue is not intended to be discussed in this paper. According to the literature studied, some perspectives regarding services are shown as it follows: 2

3. Hill (1977) says that a service is a change in its matter of economic entity caused by another economic entity. Gronroos (1990) express his comprehension through an activity or sequence of activities, which the last goal is to provide solutions to the costumer. Zeithaml and Bitner (1996) are clear relating services as acts, process and performances. Fitzsmmons and Fitzsmmons (2004) define service as an intangible and imperishable experience, provided to attend a costumer whom works with the service provider. Vargo (2004) enhance Zeithaml & Bitners original definition asserting that services are specific applied competences (knowledge, skills and experiences) in acts, performances and processes targeting benefits. 3. The Services Scenario Adam Smith and later on, Karl Marx argued that services were unproductive labor forces, changing the world and in its perception of services and their corresponding values. In order to present the reality we are facing, we must highlight some points such as the importance of service-based economy for countries as U.S.A., U.K. and Germany (LOVELOCK, 1984; VIDIGAL, 2007). The set of graphics below represents one aspect of the revolution we have mentioned. . 3

4. Fig. 1 The Service Sector in the Economy. Adapted from Vidigal (2007) One special note should be taken to the American leadership with 78.6% of its workforce organized in the service sector. Thus, Russia has also presented the greatest variation towards the service sector showing its labor migration (50% increased) in the timeframe. Even in development countries as Brazil, the third sector grows rapidly, appearing as the main employer in the urban centers. Therefore, service becomes important by its role in the national innovation discussions (KUBOTA, 2006; DE NIGRI & KUBOTA, 2006), even more essential facing this economic crisis period. More recently, we could see the Brazilian services progress in the world scenario (CIA WORLD FACTBOOK, 2007). 4

5. Fig. 2 The Increasing of Services in Brazil. Adapted from CIA World Factbook (2007) In this sense, the necessity of new investments in R&D (Research and Development) becomes clear. These initiatives will enhance de economy through new jobs offerings, innovation as national and international competitiveness dynamics. For instance, the ITC (Information Technology and Communication) sourcing case, which presents an important contribution to the Brazilian role in the global market proving to be one of these rewarded efforts towards the Service Science. 4. Service Science, Management and Engineering (SSME) As defined in the America COMPETES Act, Service Science involves research and education to integrate several elements as computer science, operations research, industrial engineering, business strategy, management sciences, and social and legal sciences, in order to encourage innovation in how organizations create value for customers and shareholders that could not be achieved through such disciplines working in isolation (MURPHY & HEFLEY, 2008). According to the IfM and IBM report (2008), some of the disciplines highly related to service science are listed below. Highlighted in bold are the areas we considered critical to this work, so it is evident the very need of an interdisciplinary approach to apply and research on competences design with service related areas. 5

6. Service Science Key Related Areas Architecture and Systems Design Marketing and Customer Knowledge Business Administration Mathematics and Non-linear Dynamics Education and Behavioural Sciences Operations Management Cognitive Science and Psychology Operational Research Complex Adaptive Systems Theory Organizational Learning Theory Computer Science and AI-web services Political Science Computer Cooperative Work Project Management Economics and Law Queuing Theory Economics Engineering and Management Simulation and Modelling Visualization Experience Design Sociology and Anthropology Financial and Value Engineering Software Metrics and Development Game Theory and Mechanism Design Statistical Process Control Human Resources Management Strategy and Finance Industrial Engineering Supply Chain Management Industrial and Process Automation Sustainable Development International Trade Systems Design and Software Architecture Knowledge Management Systems Dynamics Theory and Design Management of Informational Systems Theatre and Arts Management of Technology & Innovation Total Quality Management, Lean, Six Sigma Table 1 Service Science Key Related Areas. Made by the authors. The authors agree that one of the competences needed for the professional involved within the SSME context is to recognize a service offering, to comprehend the deep relationship among the whole service lifecycle, its stages, the perceived quality and business value over time. Also, it is crucial to understand how service portfolio management, service consumption, and service creation are used to manage the planning, the definition, the development, and the use of services (MURPHY & HEFLEY, 2008). 5. Process Management One of the key authors in the Process Management, Davenport in Davenport & Short (1990), defines business process similarly to Pall (1987) statements which asserts that business process is a logic organization of people, materials, energy, equipments and procedures in work activities planned to generate the output. Henceforth, Paim, Caulliraux & Cardoso (2008) contribute with their process vision ratifying its role as an improvement source in the organizational performance (HAMEL & PRAHALAD, 1994). 6

7. An interesting point made by the authors is related to the interdependencies visualization in the value creation, which is usually fragmented inside the organizations and structured on functional areas. Another points presented are related to: The organization areas definition must follow the activities flux; Emphasis in project mechanisms related to the tasks management, especially the local and global KPIs (key performance indicators); Concern with the tasks coordination and technology broad participation; The existence of a clear production process orientation to the clients; Dynamic training of the actors involved, relating to the best use of their competences; The business strategy diffusion as dynamic as possible, with the understanding of client expectations. 6. Competence Method Aiming to attend the human resources management, the knowledge management, the usage of resources simulation and many other demands, the competence management is then constituted. The competence management approach considered in this paper is primarily based on Cardosos works, where the competences are understood as an inter-connected set of formal knowledge, experiences and attitudes of the organization members. Thus, the theory application method to the performance improvement organizational context is suggested by the author divided in 3 steps (CARDOSO, 2004): Collecting competence data required in the organizational process Collect the internal competences availability data; Evaluation of the differences among requirements and available competences base To the purpose of this study, we focus on the first step mentioned above. The following illustration presents the required competences related to organization activities, according to the tasks and functions involved. Each competence considered as necessary to the specific area, was cross-marked by the manager. The person who is answering the questionnaire (supervisor, manager) usually relates the core competence requirements based on his own experience or markets standards. In accordance 7

8. with these criteria, we understand that the decision which was influenced by any personal background may create a perception deviation, increasing corporate costs and frustrating the professional hired inadequately. Table 2 The Competence Matrix based on the SERVQUAL model. Made by the authors. 7. Quality of Services and the Five Gaps The classical understanding of service quality is related to the definition which includes various dimensions as reliability, responsiveness, assurance, empathy, and tangibles (FITZSMMONS & FITZSMMONS, 2004), each one with its own characteristics and related challenges. We present below the gap model from Parasuraman, Zeithaml & Berry (1985). In its 8

9. structure, the main critical points are met as gap of services. Originally stated as the five gaps, this theory has expanded to 7 gaps (LOVELOCK, 1984). We are going to focus this paper in the existing gap between the client needs perception towards the service and the specific project service delivery operation. Fig. 2 The Gap Model (PARASUNAMAM et al., 2001) On this supply chain schema, the gap in the service quality is the empty space between what is expected by the one who makes a request, and what is really done by the next provider in the chain. 8. The SERVQUAL model The SERVQUAL model is one of the most important references in services operations used in quality evaluation. Thus, it is recommendable to establish a clear definition of Quality. The main critical points in its structure are known as services gaps. This model was introduced for Parasuraman, Zeithaml & Berry (1985): Tangible aspects: Buildings, equipments, team work appearance; Accountability: The capacity to deliver the commitment (work) with accuracy; 9

10. Responsiveness: Desire to attend clients needs, always providing the effort to outstand the service; Safety: Include competence, courtesy, warranty reliability, as actors to inspire customer confidence; Empathy: Possess accessibility characteristics such as customer communication with attention and focus on the organization goals in understanding the client. The models questions are evaluated according to a level that varies from 1 to 7, where they are only identified to extreme values: 1 strongly disagree, to 7 completely agree. 9. Integrating Quality, Competences and Service Design In this context, where the difficulties in the operations project and impediments to the customer quality of service perceptions are met, the Competence Theory using a Process Management approach seems to fit perfectly attend those needs. Focusing on a value creation, client-oriented goal would finally lead the organization to its expected results. Therefore, the core of this paper intends to present a theoretical approach which allows a broader range of competence evaluation logic integrating several elements (competence requirements) through SERVQUAL. As seen in Parasunaman's gap model, all gaps are related; the focus of this work is on organizational problems related to gaps 1 and 2. We believe many problems are directly related with these two gaps: - Efficiency problems: When an operation is projected without considering what the costumer is requiring, it will actually double the effort to be concluded. Even analyzing services that are intangible to the client, as supply chain management, the rework is current e more critical, once he cannot see the product until its conclusion. Another issue we must consider regards the operations costs and stock reduction: the more aligned with the clients expectations is the project the less is the need of generating efforts to compensate errors. In this case, the storage is usually related to human resources, allowing multi-tasks (high competence; high cost) teams combinations to specialized teams (specific competence; low cost). 10

11. - Innovations problems: The deliverables must be open to improvements in its modus operandi. The project step and offering specifications aims the establishment of the deliverables. Although the traditional services characteristics are clear, the heterogeneity and flexibility must be associated to the service level offered to the client this is one of the most critical dilemmas dealt by those who wish to maintain attractive and competitive to the costumers unpredictable behavior. Another perspective is related to the performance provision based on disruptions: once the market as well as economical or political patterns are instable and have a great influence on the corporation offerings, it must be carefully planned. Therefore, the goals related to the efficiency increase and innovation supply must be attended in order to create the result expected combining these two techniques of organizational management. The competence management and quality management aspects are: The competence availability design allows the creation of competence database, which could be continuously accessed with the purpose to foment the innovation; The SERVQUAL application must be periodical in order to filter trends and changes in the customer perception; The competence project and the professional profile related to each activity must be prioritized and established according to the expected requirements. The identified gaps must provide tools to offer innovation development and sustainable to each profile or market-share. The analysis must be integrated using IT (Information Technology) tools to enhance the methods results combined in the coherent time and their respectively expected changes. The professional profile flexibility could be arranged in real time to establish a transparency relation among de clients desires and the delivered service; Governance procedures and performance monitoring are essential to order the day- to-day operations flux. 10. Conclusions Once the importance of the exchange between clients and service providers is understood, as well as its implications, it is crucial to require a meta-disciplinary, service-oriented 11

12. perspective. The global economy continues in the direction of the increasingly communication speed together with the dynamics and complexities of the customer requirements. Therefore, this article proposed a theoretical association model between the quality evaluation method known as SERVQUAL and the competence process management as a new and significant movement towards the achievement of client satisfaction. As far as we are concerned, further researches are recommendable, once we must consider the necessity to have a management tool developed to help planning, monitoring and evaluating operations performance in real time. Furthermore, this approach would enhance the capability to alter resources and associate allocations properly with the desired results. References CARDOSO, V.C. Gesto de Competncias por Processos: um mtodo para a gesto do conhecimento tcito da organizao. Doctoral thesis on Production Engineering. COPPE. Universidade Federal do Rio de Janeiro. Rio de Janeiro, 2004. CIA WORLD FACTBOOK. NationMaster. U.S.A., 2007. DAVENPORT, T.H. & SHORT, J.E. The new industrial engineering: information technology and business process redesign, Sloan Management Review, Vol. 31 No. 4, Summer, pp. 11-27, 1990. DE NEGRI, J. & KUBOTA, L. Estrutura e dinmica do setor de servios no Brasil. IPEA, 2006. FITZSIMMONS, J. & FITZSIMMONS, M. Service Management: Operations, Strategy, and Information Technology. McGraw-Hill, 2004. GRONROOS, C. Service management and marketing. Lexington Books. Lexington, MA, 1990. HAMEL, G. & PRAHALAD, C.K. Competing For The Future. Harvard Business School Press: Boston, MA, 1994. HAMMER, M. & CHAMPY, J. Reengineering the Corporation: A Manifesto for Business Revolution, Harper Business, New York, NY, 1993. HILL, T.P. On goods and services: The Review of Income and Wealth, 23 (4), 315-338, 1977. 12

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