Page 73 - DMGT522_SERVICES MANAGEMENT

Services Management

Notes CMC Ltd., the firm born after IBM was forced to leave India’s shores in 1977 by the then ruling
Janata Party, moved into a new building in the early eighties, which is now famously called
“smart building”. The public sector undertaking had taken a pioneering step, which is now
being emulated by other private companies. The managing director of the erstwhile government
firm (now CMC has been acquired by the Tatas through the disinvestment process) commissioned
an entirely new type of design. The building is entirely covered by glass and the panes track the
sun with the help of computers through out the year, allowing indirect sunlight to filter in. In
the process, CMC saved lots of money by way of lighting expenses. The glass is photochromic
and automatically gets tinted, reducing heat and glare. There are no floors in CMC – only split-
levels and mezzanines. This gives a feeling of spaciousness and reduces hierarchical feeling. On
the eighth floor, there is a swimming pool and recreation centre - designed for the programmers
to relieve stress and to relax. Subtly, they motivated the assets of a service firm to stay longer in
the office and to enjoy their work. But there was another reason and utility of the swimming
pool: in case of fire the water from the swimming pool can be emptied to dowse the flames!
Thus, whenever a customer came into the building he made a simple equation: smart building
= smart people. It is no coincidence that CMC bagged prestigious contracts like the Nhava Sheva
projects over stiff international competition.

For Business Process Outsourcers (BPOs) their building, design and facilities are one of the key
competitive features that a client looks for after Requests for Information (RFI) and during
Request for Proposal (RFP). The two proposals are a way for the client abroad to choose the
outsourcer. In their site, system, process and personnel inspections the client concentrates also
on the building, office, facilities, designs, space and interiors. He perceives a direct relationship
between the facilities and the competence of the outsourcer. This is one of the utilities of physical
representation in the form of buildings. That is why organisations take great pain, effort and
expenses to move into spanking new modern buildings. Some firms that have emulated CMC
are ICICI Bank, Infrastructure Leasing and Financial Services (IL&FS) and the Wockhardt building,
all in Bandra-Kurla complex, Mumbai.
Business cards: This is another tool of tangibilisation. The card, its design, paper used, etc., goes a
long way in communicating the image of a service firm. The printed matter is equally important - as
important as what is not printed! This is nearest to what a service comes to in packaging for goods.
Documentation, Facts and Figures

Service industries use documentations to prove its features and claims and thus are able to overcome
the intangibility factor. Thus, firms like World Network Services, the erstwhile BPO of British
Airways but now acquired by the investment firm Warburg Pincus, tout ISO 9001 and 9002 quality
certifications in their corporate communications to convey their high standards of service delivery
systems and processes. Educational institutions prepare to be awarded certification from National
Association of Accreditation (NAAC), National Board of Accreditation (NBA), etc. Lufthansa,
known for its exemplary service and punctuality, will tout best airline awards and maintenance
certificates to convey its superior delivery and absence of accidents. Airlines’ apex body Air
Transport World chooses its annual “Airline of the Year” award. Service blueprints, mission and
vision statements (‘the world’s friendliest airline’ and ‘to be the world number one in air travel’
are some statements of British Airways) and Chairman’s speeches are other documents.

Annual reports, profit and loss statements, balance sheets, etc. all are examples of such positioning
documentations.
Facts, figures and data are always used to emphasize a point and to build credibility. Thus,
Vandana Luthra’s Curls and Curves (VLCC), the slimming solution provider would use facts
and figures for comparative emphasis to drive home their success. Retailers, airlines, banks and
hotels use their Customer Satisfaction Index (CSI) to communicate their standing in the market.

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