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Presented by
Varun Nigam
Uncommon
Service
Authors Frances Frei
Anne Morriss
Uncommon Service
Some facts about Service
Industry in India
Contributes to about 60% of GDP
35% of employment
A 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
What’s going wrong?
Uncommon Service
Channel human impulse to
serve into
Uncommon Service
Here’s 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
Uncommon Service
OfferingsFunding
Strategies
Systems Cultures
How to deliver Uncommon
Service by Design
Uncommon Service
The Four Service Truths
You can’t be good at everything
Someone has to pay for it
It’s not your employees’ fault
You must manage your customers
Uncommon Service
Principles of Service
Excellence
Uncommon Service
Service
Offering
Funding
mechanism
Employee
management
system
Customer
Management
System
Which specific
Attributes of
Service are you
Competing on?
How is the
Excellence
Paid for?
Are
employees
Set up for
Success?
How are
Customers
Managed and
Trained?
You can’t 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
Uncommon Service
Relative performance
of the firm
Convenience
Customer
interactions
Product
Range
- - -
Price
Most
Important
To target
market
Least
Important
To target
market
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
Relative performance
of the firm
Your company
Competitor
Quality of
installation
Low price
Responsiveness
Courteous and
professional
Proactive
Follow-up
- - -
- - -
Most
important
To target
market
Least
important
To target
market
Uncommon Service
Need a
Wedge
Wasted Wedge
Relative performance
of the firm
Your company
Competitor
Quality of
installation
Low price
Responsiveness
Courteous and
professional
Proactive
Follow-up
- - -
- - -
Most
important
To target
market
Least
important
To target
market
Uncommon Service
Wasted
Wedge
Wasted Profit
Relative performance
of the firm
Your company
Competitor
Quality of
installation
Low price
Responsiveness
Courteous and
professional
Proactive
Follow-up
- - -
- - -
Most
important
To target
market
Least
important
To target
market
Uncommon Service
Wasted
Profit
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
It’s not your Employees’ fault
It may not be that you have hired an
entire company of people who just don’t
get it
You might have built a service model for
phantom employees which you wish you
had, but you actually don’t
Uncommon Service
The successful Employee
Management System
Uncommon Service
Selection
Training
Job Design
Performance Management
Selection – Cost of hiring Stars
Uncommon Service
Low High
Low
High
Aptitude
Attitude
The competence-complexity
gap
Uncommon Service
Level
Time
Operational
Complexity
Employee
Sophistication
Gap
Experienced
By front line
Start attacking system-wide
complexity
Low High
Low
High
Direct value-add to customers
Operational
complexity
Start here Don’t start here
Uncommon Service
You must Manage your
Customers
Customers play a special role in service
encounters. This phenomenon is called
customer-operator
Customers don’t 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 customer-operators
to behave?
Uncommon Service
Managing the Chaos of
Customers
Uncommon Service
Arrival
Request
Capability
Effort
Preference
Variability of customers can take the following
different forms
Will come at any time
Ask for anything they want
Difference in knowledge
Different definitions of quality
Effort levels will vary
Successful Customer
Management System
Uncommon Service
Customer Selection
Customer Training
Customer Job Design
Managing customer performance
The Values Lever
Service only to selected
customers
Customers need training to
Perform their roles
Give your customers less
work
Customers shouldn’t be
Left entirely on their own
Give a great value to your
Customers
We’ve Designed. Now Multiply
it by Culture
Uncommon Service
Service Excellence = Design x Culture
What after you develop your
Culture?
Uncommon Service
Get Bigger
Uncommon Service
An Uncommon
