Www.directionconsultants.co.uk Do you know (not only) your customers but also your stakeholders?

www.directionconsultants.co.ukwww.directionconsultants.co.uk

Do you know (not only) your customers but also your Do you know (not only) your customers but also your stakeholders? stakeholders?


QUALITYQUALITY

The measures are more The measures are more often qualitative than often qualitative than quantitative –quantitative –

(And includes more than (And includes more than just the smile of the pig just the smile of the pig serving you)serving you)

Look at ServqualLook at Servqual


I did some RESEARCH into how managers develop new I did some RESEARCH into how managers develop new or improve existing servicesor improve existing services

(in short, how they were designed)(in short, how they were designed)

TransportTransport CharitiesCharities HealthHealth Banking & InsuranceBanking & Insurance Public & Private Public & Private

ServicesServices (Not education)(Not education)


SERVICE DESIGN MANAGEMENTSERVICE DESIGN MANAGEMENTcan be defined as -can be defined as -

THE ORGANISATION OF THE THE ORGANISATION OF THE PROCESS FOR PROCESS FOR DEVELOPING NEW DEVELOPING NEW SERVICESSERVICES

So you need a processSo you need a process

Only 20% had a written design Only 20% had a written design processprocess


Market ResearchMarket Research Almost half do NO research for new Almost half do NO research for new

services prior to their development. services prior to their development. Do Do You?You?

Many rely on ‘me too’ development or Many rely on ‘me too’ development or even on ‘customer complaints’.even on ‘customer complaints’.

‘‘Attending cocktail parties’ is not an Attending cocktail parties’ is not an adequate investigation of the market!adequate investigation of the market!


The better you understand your customers the The better you understand your customers the better will be your service.better will be your service.


Written specifications are the key controlling Written specifications are the key controlling documentsdocuments

Less than half the Less than half the respondents had seen a respondents had seen a specification in the past specification in the past seven years seven years

(and most of those who had, (and most of those who had, described an inadequate described an inadequate document).document).

What are your specifications What are your specifications like?like?


So write down all you are So write down all you are going to do before you do itgoing to do before you do it

It is the best way to highlight It is the best way to highlight problems, interrelationships and problems, interrelationships and

contradictionscontradictions


The Product Design SpecificationThe Product Design Specification


A new product strategy document.A new product strategy document.

Less than one third of respondents Less than one third of respondents had seen a document that outlined a had seen a document that outlined a clear strategy within their clear strategy within their organisation.organisation.

Do you know where your place wants Do you know where your place wants to be?to be?


Designs role

How can design inform the strategic plan?

Design: exploratory

Design: directional

Design:integrative

Design management can be the key to effectivelyusing design at each level

Design can act as the ‘glue’ betweenthe key activities and the informal and formal

Can flourish in environmentscharacterised by change

Can operate on multiple levels

A design need?:


The Conclusions from the ResearchThe Conclusions from the Research

Service design is still not managed in an Service design is still not managed in an organised manner.organised manner.

As such, most service organisations are not in As such, most service organisations are not in adequate control of their new servicesadequate control of their new services

Only 17% had an effective process.Only 17% had an effective process.

And most of these generated a greater And most of these generated a greater turnover from recently developed services.turnover from recently developed services.


All this means is that you don’t All this means is that you don’t have to be very good to be better have to be very good to be better

than the competition!than the competition!


Technological Challenges and OpportunitiesTechnological Challenges and Opportunities

When introducing technology, introduce just one or two When introducing technology, introduce just one or two aspects at a time and then introduce more technological aspects at a time and then introduce more technological sophistication when users have become familiar with the sophistication when users have become familiar with the first level of technology. first level of technology.



The misused application of technology can turn a The misused application of technology can turn a bad process into a slightly faster bad process bad process into a slightly faster bad process which helps the customer little and can increase which helps the customer little and can increase costs a lot. costs a lot.

We have become wiser and now apply We have become wiser and now apply technology to genuinely improve products and technology to genuinely improve products and services. Technology can improve services and services. Technology can improve services and can be used to make people feel special and can be used to make people feel special and

individual.individual.


Why are so many services Why are so many services difficult to use?difficult to use?

Ease of use has been found to be near the top Ease of use has been found to be near the top of what customers want from a product. of what customers want from a product.

Generally, if products are designed for the Generally, if products are designed for the elderly and disabled they will be easier for use elderly and disabled they will be easier for use

by everyone. This is known as ‘Inclusive by everyone. This is known as ‘Inclusive Design’.Design’.



This means a greater emphasis in design, This means a greater emphasis in design, through the use of ergonomics to make through the use of ergonomics to make products easy to use so that customers products easy to use so that customers fully benefit from the technology that is on fully benefit from the technology that is on offer. offer.

Don’t expect customers to read user Don’t expect customers to read user manualsmanuals


If your service is difficult to use it If your service is difficult to use it is not the fault of the user - is not the fault of the user -

IT IS THE FAULT OF THE IT IS THE FAULT OF THE ORGANISATION PROVIDING THE ORGANISATION PROVIDING THE

SERVICESERVICE

TO BE MORE ACCURATE – IT IS TO BE MORE ACCURATE – IT IS THE FAULT OF THE PERSON WHO THE FAULT OF THE PERSON WHO

DESIGNED THE SERVICE!DESIGNED THE SERVICE!

– – IS THAT YOU?IS THAT YOU?



Design so that additional features could Design so that additional features could

easily be added. This aspect of design is easily be added. This aspect of design is known as Platform Products (Wheelwright known as Platform Products (Wheelwright and Clark 1992, Meyer and De Tore 2001) and Clark 1992, Meyer and De Tore 2001) where a basic production platform is where a basic production platform is developed with the intention of building developed with the intention of building new features into it at a later date. new features into it at a later date.


THE IMPORTANT ELEMENTS OF DESIGN SPECIFICATION

Reliability

Maintainability

Aesthetics

Safety

Price

Ergonomics


So how do you define So how do you define success?success?

It brought good publicity to the organisation.It brought good publicity to the organisation.

The customers liked it.The customers liked it.

It will bring a smile to the faces of children.It will bring a smile to the faces of children.

We won awards for it.We won awards for it.

It is a flagship product.It is a flagship product.

We show it on all our publicity. We show it on all our publicity.

It was a technological breakthrough.It was a technological breakthrough.


By all means have these - butBy all means have these - but

THE MAIN MEASURE OF THE MAIN MEASURE OF

SUCCESS HAS TO BE SUCCESS HAS TO BE

FINANCIAL– even in FINANCIAL– even in education!education!



The performance customers want The performance customers want from each U.S.P.from each U.S.P.

Performance Performance Function Function

XX

Maximum customer Maximum customer performance performance requiredrequired

____ ______ ________ ________

______ ________

XX XX

XXMinimum customer Minimum customer performance performance requiredrequired

____ ______ ________ ________

______ ________

XX XX

Design > Design > ParameterParameter

11 22 33 44 55 66


HOW DO CUSTOMERS USE HOW DO CUSTOMERS USE YOUR SERVICE?YOUR SERVICE?


Jan Carlzon, then President of Scandinavian Jan Carlzon, then President of Scandinavian Airlines, said in 1980Airlines, said in 1980

‘‘All instances where customers come into All instances where customers come into contact with our organisation constitute contact with our organisation constitute ‘moments of truth’ – unique, never-to-be-‘moments of truth’ – unique, never-to-be-repeated opportunities for us to distinguish repeated opportunities for us to distinguish ourselves memorably from competitors’. ourselves memorably from competitors’.


““HELLO – HOW CANHELLO – HOW CAN I HELP YOU?”I HELP YOU?”

Use mystery shoppersUse mystery shoppers


•Plot the route that customers go through when using the service•Also plot what is going on in parallel•Find the ‘critical path’ and ‘bottlenecks’ •Re-evaluate process •Redefine and apply design to the process with enhancing ideas

EFFECTIVE TOOLS:It is difficult to design a service without Blueprinting


Consider J.I.T. in the service Consider J.I.T. in the service sector – it works bettersector – it works better

In manufacturing Work-in-progress ties up In manufacturing Work-in-progress ties up space and moneyspace and money

But it doesn’t complain. In a service it is But it doesn’t complain. In a service it is people waiting – usually in comfortable people waiting – usually in comfortable surroundingssurroundings

In manufacturing the worst type of In manufacturing the worst type of inventory is finished goods – all the value inventory is finished goods – all the value has been addedhas been added

In services, people go homeIn services, people go home


Queuing techniques (but don’t design a Queuing techniques (but don’t design a better waiting room – design it out of the better waiting room – design it out of the system!) system!)

Documents

Www.directionconsultants.co.uk Do you know (not only) your customers but also your stakeholders?