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Service Management

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In modern business, it is more important than ever for companies to provide quality customer service if they wish to remain competitive. Instilling a culture of service through a mission statement to guide the business is one of the most effective ways to accomplish this. This essay will present and analyse a scenario where customers experience poor service to demonstrate the quality gaps that result from a company that lacks a service culture. In addition, it will draw from a variety of sources to affirm the need for companies to create a service culture. Finally it will recommend changes that a company may implement to improve their own service culture.

The following scenario takes place in a restaurant, one of the most customer-service orientated businesses in all industries:

The customer experienced pangs of hunger indicating to her a desire for lunch, as she and her companion strolled past Chantilly’s Coffee Lounge, they were attracted to the warm and refined atmosphere that it exuded. Undoubtedly this was due to the excellent décor that combined dark wood, cream walls and cheerful lighting of a warm yellow. However as they entered they waited 10 minutes to be seated which was disappointing as the café was not at full capacity. As they were seated, they found there was only one menu on the table for two, and they expected the waitress to bring them another menu. Unfortunately this did not occur and eventually requested another menu. As they perused the menu they were perfunctorily given two glasses of water. The customer also noticed that the waitress seemed unfriendly as she was not smiling and exuded a sense of being overworked. The ordering appeared to go without issue. The first drink was brought efficiently and well-presented, however, a non-requested second beverage was also delivered to the table. It was taken away after strong denial of having ordered the drink by the customer’s companion. The companion’s meal arrived soon after; which was attractively presented, however there was an interval of 30 minutes before the customer was served. Respecting courtesy the companion waited until the customer’s meal had arrived before eating, but during the waiting period, the companion’s meal had cooled. However, the meals were artistically and arranged and pronounced ‘delicious’ by both customers. While consuming the meal, the customer’s glass of complimentary tap-water was not refilled unless she specifically requested it. After the meal was consumed both customers went to pay at the counter where they discovered that the hot chocolate, despite not having been ordered or consumed, had been added on the total of the bill. After some dissent, the hot chocolate was removed from the bill, but it served to cast a pall over the experience as a whole.

The SERVQUAL model created by Valarie A. Zeithaml, A. Parasuraman and Leonard L. Berry in 1988 will be used to analyse the scenario to identify service failures. This model has long been used to determine the difference between and organisation’s service performance and customer service quality needs (Fedoroff, P. N.D.) The five quality gaps are: Management Perception gap (Gap 1), Marketing gap (Gap 2), Service Quality Specification gap (Gap 3), Service Performance gap (Gap 4) and Consumer Expectation gap (Gap 5).

The naïve expert customer entered the restaurant based on personal needs and expected a certain level of service from past experiences dining in other restaurants. The customer experienced Gap 5 of the SERVQUAL model; described to be the difference between customer expectations and service provider’s perceptions of service rendered, Fitzsimmon & Fitzsimmon (2001). This gap seemed to have been largely contributed to by a service performance gap because actual delivery of service did not seem to meet specifications set by management (Gap 3).

An analysis of service using RATER principles from the customer’s perspective to determine why Gap 3 contributed to Gap 5 reveals that the waitress did not assure the customers of her competence. The actions of the waitress, serving a non-requested beverage and charging for it even when it was not consumed, indicates that the waitress did not know how to use the system to cancel the beverage. This in turn suggests that the organization did not provide sufficient training to its employees so that they could competently meet and exceed the expectations of their customers.

In addition to this, during the calculation of the bill, the she did not show empathy for her customers and attempted to argue the need for the customer to pay for the non-requested beverage. Ultimately the manager did not pursue the issue but as a whole, it left a poor final impression on the customer contributing significantly to Gap 5. This falls under Gap 2, management’s inability to formulate target levels of service quality to meet perceptions of customer expectations (Fitzsimmon & Fitzsimmon 2001).

The presence of Gap 2 may explain the overall poor service experienced by the customer. Without being informed of specific service targets, the waitress may have believed her service performance to be reasonable; not knowing that serving with a 30 minute interval between meals did not meet customer’s expectations of service. Equally, without a policy of immediate seating of customers and consistently refilling empty water-glasses the waitress cannot fulfill her customer’s expectations as she is not informed of them.

However it must be admitted that the business did not suffer from the quality of its tangibles. The appearance of the physical facility drew the customer in, and was followed up by excellently presented and tasty food that satisfied the customer. This would suggest that Gap 1 was partially avoided, the service-provider appearing to understand that the personal needs of the customer included a well-presented and tasty meal served in a good atmosphere, which in turn, lead to a reduction of Gap 5.

Reducing quality gaps is very much a part of a customer-orientated service culture which has been a part of a revolution driven by global competition in service industries that mimics the changes in manufacturing industries (Godfrey, Kammerer & Juran Institute 1993).

To create an exemplary service culture depends greatly on gaining the loyalty of customers in the majority of each moment of truth. A moment of truth is defined as an interaction that occurs between a customer and the service provider that can leave a lasting positive or negative impression on a customer (Dwyer, K. 2008). As Jan Carlzon (1987) says, each moment of truth is a 15-second window of opportunity to win a loyal customer. Should it elapse without a response to the needs of the customer, it cannot be reclaimed and the opportunity to prove that your company is the best alternative to choose from is lost (Jan Carlzon 1987).

To take advantage of each moment of truth, every interaction between every employee and every customer should be handled with a customer-orientated attitude. This is only possible when an attitude of customer service is engrained in all personnel. In his book, Service Please, Urquhart (1994) suggests the need for a corporate culture to knit together the efforts of all departments, divisions and branches of the workforce. The foundation of service culture is the mission statement of the company as it is in essence the unchanging principles that guide the company to face every service situation it encounters.

The unresponsiveness of the waitress towards the needs of the customers that created Gap 2 was due to a lack of an attitude that values customer service. To overcome this, management needed to instill a service culture into its organization by creating a mission statement for its employees to adhere to. Dale Carnegie (1936) emphasizes that a mission statement will be ineffective should employees lack any sense of ownership of the statement. Instead it is important for each team of employees within each division create their own mission statement that is based upon the over-arching mission statement of the company. Managers should encourage techniques such as brain-storming, mind mapping and group discussions to create individualized mission statements. For them to remain effective, measures such as placing it in readily viewable areas and with regular annual reviews of the mission statement maintain its significance are suggested by Dale Carnegie (1936).

To support staff and empower them to carry out values intrinsic to the mission statement, managers must to ensure they receive adequate training to use the systems that allow them to provide quality service. Should this have occurred with the organization mentioned in the scenario, Gap 3 would not have occurred. The waitress would have been able to use the docket writing and cash register systems competently and fulfill her customer’s expectations.

Jan Carlzon (1987) also suggests that since front-line staff is the most directly involved with customers, they are the ones that should be heavily invested in. The value of training is two-fold, aside from empowering staff; it boosts morale and fosters loyalty as employees recognize that their company values their work.

Jan Carlzon (1987) further proposes an inversion of traditional pyramid management hierarchy, saying that front line staff must be supported by management. This is a two-way process that involves frontline staff informing management of their needs; and management providing frontline staff with the equipment, knowledge and training to serve the customer most effectively. If this strategy was employed by the organization in the scenario, the waitress would likely have eliminated Gap 3 and perhaps succeeded in exceeding customer expectations.

In summary, successful delivery of quality service is a culmination of firm customer orientated service principles that are embedded in a company mission statement that should be relevant to all employees. This mission statement ought to empower front-line employees to manage the service encounter at point of delivery with the full support of managers who provide equipment, training and systems for front line employees. As H G Parsa says, “empowered employees who care for their customers and their organisations are a service provider’s greatest asset.”

Carlzon, J. (1987). Moments of Truth. New York: Ballinger Publishing Company

Carnegie, D. (1936). How to Win Friends and Influence People. New York: Pocket Books

Dwyer, K. (2008). Why map Moments of Truth? Retrieved March 25, 2009 from http://www.changefactory.com.au/hospitality/moments_of_truth.shtml

Fedoroff, P. (N.D.). 12Manage. Retrieved April 1, 2009, from http://www.12manage.com/methods_zeithaml_servqual.html

Fitzsimmon, J.A, Fitzsimmon, M.J. (2001). Ops Strategy 11.T. New York: McGraw Hill

Scheuing, E. & Christopher, W. (1993). The Service Quality Handbook. New York: AMACOM, a division of American Management Association

Urquhart, B. (1994). Service Please!. Western Australia: Marketing Focus

Kandampully, J. (2002). Services Management: The new paradigm in Hospitality. Sydney: Pearson p123

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