1. Customer Service Excellence Lecture 9 Customer Service for the servers Lecture based on Customer Care Excellence How to create an effective customer focusSarah Cook (copies in library)

2. 3. 4. If you look after your staff, they will look after your customers who will in turn look after your profits Stew Leonard, Head of Stew Leonards Dairies and holder of the Guinness Book of Records entryfor being the store with the highest sales per square foot in the world 5. The service/value chain

Internal service quality

Employee satisfaction Employee retention External service quality Customer satisfaction Customer retention Profit/value Source: Customer Care Excellence, Sarah Cook 6. Creating a vision for an organisation

to be the UKs favourite quick service restaurant by providing great tasting food through excellent operations and by giving friendly service at a value price to our customers

(Mc Donalds vision)

How can excellentinternalcustomer service ensure this vision is achieved?

7. People, Service, Profit FedEx 8. Valued people value customers

A MORI survey in 2007 of organisations with more than 1,000 employees;

Two thirds of employees felt undervalued.

Fewer than 1 in 10 felt their views were valued.

Only 1 in 4 were actively committed to helping the organisation succeed.

9. The Happiness at work index 2007 BBC NEWS | Business | UK office staff 'unhappy at work'

24% of the UKs office basedworkforce is unhappy at work

Lawyers are the most happy- 69%

IT and telecoms workers the least happy 28%

Only 27% of officeemployees are able to work flexible hours

14% of employeesare expected to get in early and work late

28% of British men say that they are miserable at work, compred with 22% of British women

A key factor of happiness at work is friends and socialisingYear-end office parties take a knock

Source: Badenoch and Clark based on 1,000 British office workers 10.

The Involvement and Participation Association investigated the success of companies which established employeeinvolvementandempowerment in a supportive environment. It claims that within a year of a shift to employee involvement, overall financial improvements of between 10 and 30% could be achieved.

11. Characteristics of an empowered organisation

Less bureaucratic

More flexible

More responsive

More considerate of customers needs

Easier to do business with

12. Encouraging empowerment

Create the right environment ;

Office layout, take away traditional power symbols such as directors dining rooms and separate offices.

.or be truly different and innovative remember Google last week?

13. Encouraging empowerment

Engender teamwork;

Procter & Gamble report 30-40% higher productivity in those plants with team based structures rather than vertical ones.

When Levis encouraged one manufacturing plant to work inteams it found that shipments of jeans could be turned around in one day rather than six

14. Characteristics of a successful team

A common sense of purpose and a clear understanding of the teams objectives.

The team have or can obtain all the resources needed to achieve their objectives.

There is a range of skills and know how among the team members to deal effectively with the teams tasks.

There is a range of team types within the team each member of the team has different aptitudes for the various team roles required for effective team working.

Team workers have respect for each other both as individuals and for the contribution that each makes to the teams performance.

15. However.

Even with the right expertise and knowledge in the team, teams do not always work together effectively

Belbin exercise

16. Empowerment and service recovery

businesses have only one opportunity to put things right

Research at British Airways indicated that 20% of its customers were dissatisfied with the service but did not complain.

It is estimated that for every 1% ofadditional dissatisfied passengers that the company could get to complain, it could win back between200,000 to 400,000 in revenue.

17. Devolving responsibility to front line staff

In line witha movement to view customer complaints in a more positive light , some organisations are devolving responsibility and decision making powers to front line staff who deal with customer complaints;

At the AA staff can offer up to 100 to a member when the service has been poor.

BT operators are empowered to offer goodwill gestures in the form of cash payments tocustomers when something goes wrong.

A key measure of customer service excellence at Hilton hotels is the number of complaints resolved at the unit rather than escalating to Hilton Hotels central complaints unit.

18. Employee engagement the buzz word

British Airways Day in the Life event for all staff when each function gave a presentation of their role within the organisation.

Centre Parcs SHOW day (See How Others Work day)

Federal Express has its own TV station so that the CEO can talk to all employees worldwide including answering unprompted questions live.

19.

The Sunday Times Best 100 Companies to work for | Career & Jobs - Times Online

An interesting annual information source 20. Tips from the Top 100 in offering excellent customer service to your staff

Involve your staff ineverything and make them proud to work for your organisation.

Cut out the middle man allow staff to communicate with the senior decision makers in the organisation.

Make career development a priority.

Staff have a life outside work respect the work life balance.

Perks are great Discounts? A massage?

Allow working from home is desired/feasible

21. A controversial view

Is the noble employee a myth ?

Why treat your staff like dirt? Because they are - Times Online

22. Douglas McGregor The Human Side of Enterprise

Identified two extreme sets of assumptions and explored how management style differs according to which set of assumptions is adopted.

Theory X is the theory that the average human being has an inherent dislike of work and will avoid it if possible.Human beings prefer to be directed, wishing to avoid responsibility. They have relatively little ambition and want security above all. They are self-centred, with little interest in the organisations needs.They are resistant to change, gullible and easily led.They must be coerced, controlled, directed, offered reward or threatened with punishment to get them to put further adequate effort towards the achievement of the organisations objectives.

23. Douglas McGregor The Human Side of Enterprise

According to Theory Y, however, the expenditure of physical and mental effort in work is as natural as play or rest.The ordinary person does not inherently dislike work: according to the conditions it may be a source of satisfaction or punishment. Extensive control is not the only means of obtaining effort.People exercise self-direction and self-control in the service of objectives to which they are committed: they are not naturally passive, or resistant, to organisational objectives, but have been made so by experience.

24. Douglas McGregor The Human Side of Enterprise

The most significant reward that can be offered is the satisfaction of the individuals need for personal growth and development. The average human being can learn not only to accept but also to seek responsibility.Managements should create conditions and methods that will enable individuals to integrate their own and the organisations goals, by personal development.

McGregor intentionally polarised his theories, and recognised that managers assumptions may be somewhere along the line between the two extremes. He also recognised that the assumptions were self-perpetuating.If people are treated as though they are Theory X people, because of management assumptions, Theory X behaviour will in fact be induced thus confirming management in its beliefs and practices.

25. Some last words fromAlex Frankel author ofPunching in the unauthorized adventure of a front line employee

In this futuristic age of computers and wireless communications, its easy to imagine (that)companies will soon replace humans with robots on the front lines. But I found that many of the best companies have not only realised that humans matter but have also moved ahead of competitors by finding, hiring and training great people to work for them. People have become as much of a competitive weapon as the products they sell