Services Design Techniques: Services Blueprint

1. Services Design Techniques: Services Blueprint Polina Baranova Derbyshire Business School

2. Services Definitions ‘Any activity or benefit that one party can offer to another, which is essentially intangible and does not result in the ownership of anything’ Philip Kotler 2004 ‘Services can be bought and sold, but cannot be dropped on your foot’(!) Gummesson 1987

3. Services • are largely intangible • have benefits • are perishable (time and place dependent) • cannot be stored or transported • are inseparable from the service provider • are often inconsistent or variable in quality • especially personal services eg hairdressing • cannot be owned

4. What is a 'Process'? • 'If you can’t describe what you are doing as a process, youdon’t know what you’re doing.' W E Deming • '… a series of actions or steps taken in order to achieve a particular end.' The New OXFORD Dictionary of ENGLISH (1998)

5. Professional Service Shops Mass Volume(Number of customers processed per day) Low High Process Types in Services, Silvestro et al 1992 • High • People • Contact time • Customisation • Discretion • Front Office Orientated • Medium • People/Equipment • Contact time • Customisation • Discretion • Front Office/Back Office • Orientated Variety • Equipment • Contact time • Customisation • Discretion • Back Office • Orientated • Low

6. Definition of a service ‘process’ ‘The actual procedures, mechanisms, and flow of activities by which the service is delivered – the service delivery and operating systems’ (Zeithaml, Bitner & Gremler, 2006)

7. Operation, Task or activity Movement – people, materials, information Inspection Delay or pause in the process Storage Process mapping: Flow Charting Actually map what tasks are happening to determine the flow of the process

8. Receptionist fills out work order x Work order placed in ‘waiting job’ box x Job picked up by Operator and read x Job taken to copying machine x Operator waits for his turn on machine x Operator loads paper x Operator sets machine x Operator performs the copying x Operator inspects the copying x Job taken to Cashier x Job waits its turn for processing x Cashier raises Invoice x Cashier takes payment x Cashier packages the job x Flow Chart

9. Accounting Information flow Material flow Process Flow DiagramSource: Heizer J., Render B., (2006) Operations Management, 8th edition, p257 Customer Customer sales representative Purchasing Vendors PREPRESS DEPT Receiving PRINTING DEPT Warehouse COLLATING DEPT GLUING, BINDING, STAPLING, LABELING POLYWRAP DEPT SHIPPING

10. Blueprinting • Design of the services • More sophisticated version of flowcharting: • Flowcharting – existing processes; • Blueprinting – grater detail of service design from the customer point of view: • Main Stages in customer journey through the service process; • Definition of standards for each front-stage activity; • Physical and other evidence of front-stage activity; • Principal front-stage participants; • Line of visibility; • Back-stage actions; • Support processes involving other service personnel; • Support services involving information technology.

11. A visual representation of a service process showing: Principle functions Timing and sequencing Participants involved “Line of visibility” Tolerance levels Feedback loops Blueprinting

12. Developing a Blueprint • Identify key activities in creating and delivering service • Define “big picture” before “drilling down” to obtain a higher level of detail • Distinguish between “front stage” and “back stage” • Clarify interactions between customers and staff, and support by backstage activities and systems • Identify potential fail points; take preventive measures; prepare contingency • Develop standards for execution of each activity— times for task completion, maximum wait times, and scripts to guide interactions between employees and customers

13. Advantages of Blueprinting • Blueprint differentiates between what customers experience “front stage and the activities of employees and support process “backstage”; • Blueprint shows how customers and employees interact; • Blueprint highlights possible fail points in the process; • It highlights the areas of excessive wait; • More in-depth analysis of service encounter – crucial stage of service process redesign.

14. Identifying Fail Points • High risk areas in service delivery where things could go wrong; • Errors include: • Treatment errors—human failures during contact with customer • e.g. lack of courteous or professional behavior, failure to acknowledge, listen to, or react appropriately to the customer • Areas of excessive wait – could annoy customers and lead to negative customer experience • Tangible errors—failures in physical elements of service • e.g. noise pollution, improper standards for cleaning of facilities and uniforms, equipment breakdown • Aim of fail-safe procedures is to prevent errors • Areas of wait – reducing an opportunity for excessive wait F F W