Page 184 - DMGT522_SERVICES MANAGEMENT

Unit 8: New Service Development and Process Design

Notes
Figure 8.3: Service Delivery Process

Self Assessment

Fill in the blanks:
6. The ......................... approach to service design, then, would identify what the service should
entail.
7. ......................... goals and resources is critical to the success of every service system or
organisation.
8. The third component in the alignment is the ......................... of the service delivery process
itself.
9. The service delivery process begins when the customer first interacts with the service
organisation or system and ends when the delivery of the desired service is completed
and the......................... exits the process.
10. Finally, the firm must ensure that the ......................... are aligned with the delivery process
to produce the best possible customer experience and at the same time, use resources
wisely.

8.4 Design and Tools

Because services are intangible they can be difficult to describe, and that difficulty creates a
challenge for service designers. Lynn Shostack identified four risks inherent in describing services:
Oversimplification: Shostack writes, “To say that ‘portfolio management’ means ‘buying
and selling stocks’ are like describing the space shuttle as ‘something that flies.’” All too
often some of the most important steps in the service delivery process are overlooked in
the initial design, only to be identified later when customers complain about the process.

Incompleteness: Customers are only able to describe the parts of the service with which
they are familiar and with which they have direct contact. The designers must recognise
that situations will often occur that were not anticipated, so the design of the process needs
to be sufficiently flexible to accommodate them.

Subjectivity: People are biased by their own experiences with services or by personal
situations that have nothing to do with the service. For example, if you had a bad day at
the office, your dinner that night, even if it is at your favorite restaurant, will most likely
not leave you with a positive feeling

Biased interpretation: When people describe services to others additional bias is added in
the way they use words, which are open to the interpretation of the listener. For example,
what one person means by “polite and responsive” may be very different from what other
people think when they hear those same words.
Like any process, the service design process can be improved by using a structured approach
that systematically collects information from both customers and service providers to design
a service process that meets customer needs, rather than a process that seems good to the
manager.

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