Case study analysis
IMT Dubai - Sem III - Marketing of Services
Report Submitted by - Group 5
Amod Apastamb SMBA13010
Anuj Taneja SMBA13013
Sarthak Sahni SMBA13049

ISS ICELAND

Summary * 2008 – Revenues of 68,829 million DKK * 7th largest outsourcing company in the world * 2009 – Integrated Facilities Management * Cleaning, Catering, Security, Property Services & Office Support * Decentralized model with financial reporting administered from headquarters in Copenhagen * ISS was not a price leader but was targeted at customers who cared about quality and were willing to pay for it
A New value proposition * Post 2000 ,ISS Iceland adopted a new value proposition which has 2 dimensions. * The first is that of the classic outsourcer enabling our customers to focus on what they do best. * What is the feeling we want to create in our customers. * The new proposition says “We are creating wellbeing for our customers.” * Other 2 related issues were:- * People who don’t feel good about good about themselves are not as productive or quality-minded. * The transition from “Facilities services” to “Integrated facilities management” reflects how employees feel about their jobs * So the need came for “EMPLOYEE WELLBEING”.
Gaps Model of Service Quality * Knowledge Gap: * ISS Iceland should know what it’s customers actually expect.(a solution to their problem as well their well-being). * Communication Gap: * ISS Iceland should know how to match their performance to promises.(Promise of providing complete customer-centric services and customer satisfaction).

Giving & getting a praise * “A praise” was the expression used to refer the first question * An employee got “a praise” when he or she was mentioned in response to the question * Though this question surprised some customers, the vast majority liked it * Created an opportunity for a more constructive and professional dialogue with customers in a positive context

Conclusion * “Praise” model is very effective in creating a value to employee as well as firm * It creates a work environment which is very helpful in improving the efficiency and service excellence * Believed in creating synergies between * Customers – Know how and best practice * Service areas – roles and cooperation * Be alert for new opportunities and innovation to ensure growth * Provide an ecosystem where in customers can have ISS for all their facilities management solutions
Questions
1. Has ISS Iceland been successful? What data do you base your decision on?
By 2009, ISS Iceland became 6 times larger than it’s largest competitor.
They had entered various areas which include Daily office cleaning, hospital cleaning ,food hygiene, catering and industry cleaning.
Employee turnover declined steadily from a high of 131% (1999)to 69%(2007).
Revenue growth averaged 17.6% during 2000-2007 2. How did ISS Iceland change after it was acquired by ISS? What specific changes were made and why? What (or who) caused the changes? * The whole shift from traditional to new model created a huge impact on the performance of ISS Iceland. * The “prevent complaint” and “inspections” were modified to enable praises to employees and support the employees and don’t leave them in a vacuum environment with no communication. * The requirement for employee and customer well being were triggered. * Also, the fact that the role of supervisor was redefined also supported the new model in a huge way. * The new model encouraged communication across customers and company, the supervisors and workers.
3. What do you think of the “praise” initiative? What was the purpose and did it work? If it worked, why? Do you think that would it work in other companies or countries? * The “Praise” initiative actually worked in a positive way as the number of complaints declined dramatically since the adoption of new model. * It helped motivate the employees and made them get self-confidence and increased their overall performance. * The purpose of implementing this was to bridge the communication gap between the employee and the company and increase the performance levels of employees. * It may/may not work in other countries as the country culture is also different and also the people of Iceland believed in genuine recognition in what they do which might not be the case elsewhere.
4. What role do the supervisors play in ISS Iceland and how important are they? Should supervisors be considered a “cost to be minimized” or a “strategic tool” at ISS? Why? * Supervisors play the role of a teacher to the cleaners who supports and praises them for the work that they do. * Their effectiveness is measured in terms of customer satisfaction and worker efficiency. * The supervisors should be considered a ‘Strategic Tool’ at ISS as they lay the foundation for customer satisfaction and retention and at the same time look after their employees. * The supervisors have to be “on” 24x7 in order to ensure the proper functioning of the company and are the backbone of ISS. 5. Decision point: What should ISS Iceland do to take the praise initiative to the “next level?”
ISS Iceland probably can encourage the reverse praise system wherein the cleaners also praise the higher management.
It can start with something called “employee of the month” where in the award the employee with most number of praises.
It can add “praise” as a factor of evaluation for the performance management by the managers at the time of appraisal.
They can give some cash incentives to people if they reach a specific praise level during a quarter/year.