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SMSM

McGraw-Hill © 2000 The McGraw-Hill Companies

Chapter 9

CUSTOMER-DEFINED SERVICE STANDARDS

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SMObjectives for Chapter 9:Objectives for Chapter 9:Customer-defined Service Customer-defined Service

StandardsStandards

• Differentiate between company-defined and customer-defined service standards

• Distinguish among one-time service fixes and “hard” and “soft” customer-defined standards

• Explain the critical role of the service encounter sequence in developing customer-defined standards

• Illustrate how to translate customer expectations into behaviors and actions that are definable, repeatable, and actionable

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Figure 9-1Figure 9-1

AT&T’s Process Map for MeasurementsAT&T’s Process Map for Measurements

Reliability

(40%)

Easy To Use

(20%)

Features / Functions

(40%)

Knowledge

(30%)

Responsive

(25%)

Follow-Up

(10%)

Delivery Interval Meets Needs

(30%)

Does Not Break

(25%)

Installed When Promised

(10%)

No Repeat Trouble

(30%)

Fixed Fast

(25%)

Kept Informed

(10%)

Accuracy, No Surprise

(45%)

Resolve On First Call

(35%)

Easy To Understand

(10%)

Business Process Customer Need Internal Metric

30% Product

30% Sales

10% Installation

15% Repair

15% Billing

% Repair Call

% Calls for Help

Functional Performance Test

Supervisor Observations

% Proposal Made on Time

% Follow Up Made

Average Order Interval

% Repair Reports

% Installed On Due Date

% Repeat Reports

Average Speed Of Repair

% Customers Informed

% Billing Inquiries

% Resolved First Call

% Billing Inquiries

TotalQuality

Source: AT&T General Business Systems

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SMExercise for Creating Exercise for Creating

Customer-Defined Service Customer-Defined Service StandardsStandards

• Form a group of four people• Use your school’s undergraduate or graduate

program, or an approved alternative• Complete the customer-driven service standards

importance chart• Establish standards for the most important and

lowest-performed behaviors and actions• Be prepared to present your findings to the class

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SMService Encounter Customer Requirements Measurements

ServiceQuality

Customer-Driven Standards and Customer-Driven Standards and Measurements ExerciseMeasurements Exercise

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SMFigure 9-2Figure 9-2

Getting to Actionable StepsGetting to Actionable Steps

Satisfaction ValueRelationship Solution Provider

Reliability EmpathyAssurance Tangibles Responsiveness Price

Delivers on TimeReturns Calls QuicklyKnows My Industry

Delivers by Weds 11/4Returns Calls in 2 HrsKnows Strengths of My Competitors

Requirements:

Abstract

Concrete

Dig Deeper

Dig Deeper

Dig Deeper

Diagnosticity:

Low

High

General Concepts

Dimensions

Behaviors and Actions

Attributes

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Figure 9-3Figure 9-3

Process for Setting Process for Setting

Customer-Defined StandardsCustomer-Defined Standards 1. Identify Existing or Desired Service Encounter Sequence

2. Translate Customer Expectations Into Behaviors/Actions2. Translate Customer Expectations Into Behaviors/Actions

4. Set Hard or Soft Standards

5. Develop FeedbackMechanisms

5. Develop FeedbackMechanisms

7. Track Measures Against Standards

Measure byAudits or

Operating DataHard Soft

Measure byTransaction-

Based Surveys

3. Select Behaviors/Actions for Standards 3. Select Behaviors/Actions for Standards

6. Establish Measures and Target Levels 6. Establish Measures and Target Levels

8. Update Target Levels and Measures 8. Update Target Levels and Measures

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SM Importance/Performance MatrixImportance/Performance MatrixHIGH

HIGH

Performance

10.0

8.0

7.0

9.0

LOW

8.0 9.0 10.0

Importance

Improve Maintain

Delivers on promises specified in proposal/contract (9.49, 8.51)

Gets project within budget, on time (9.31, 7.84)Completes projects correctly, on time (9.29, 7.68)

Does whatever it takes to correct problems (9.26, 7.96)

Provides equipment that operates as vendor said it would (9.24, 8.14)

Gets price we originally agreed upon (9.21, 8.64)

Takes responsibility for their mistakes (9.18, 8.01)Delivers or installs on promised date (9.02, 7.84)

Tells me cost ahead of time (9.06, 8.46)

Gets back to me whenpromised (9.04, 7.63)

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SMFigure 9-5Figure 9-5

Linkage between Soft Measures and Linkage between Soft Measures and Hard Measures for Speed of Hard Measures for Speed of

Complaint HandlingComplaint HandlingS

A

T

I

S

F

A

C

T

I

O

N2 4 6 8 12 16 20 24

W O R K I N G H O U R S

Large Customers

Small Customers

10

9

8

7

6

5

4

3

2

1

0

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Figure 9-6Figure 9-6 Aligning Company Processes Aligning Company Processes

with Customer Expectationswith Customer Expectations

Customer Expectations

Customer Process Blueprint

Company Process Blueprint

Company Sequential Processes

AA BB CC DD EE FF GG HH

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