Posts filed under 'Service'
An article in today’s New York Times describes a possible change in the way federal contracts are awarded, and it specifically calls out facility service contracts.
Plan to Seek Use of U.S. Contracts as a Wage Lever
The Obama administration is planning to use the government’s enormous buying power to prod private companies to improve wages and benefits for millions of workers, according to White House officials and several interest groups briefed on the plan.
By altering how it awards $500 billion in contracts each year, the government would disqualify more companies with labor, environmental or other violations and give an edge to companies that offer better levels of pay, health coverage, pensions and other benefits, the officials said.
Because nearly one in four workers is employed by companies that have contracts with the federal government, administration officials see the plan as a way to shape social policy and lift more families into the middle class. It would affect contracts like those awarded to make Army uniforms, clean federal buildings and mow lawns at military bases. (read the full article)
How might this effect Facility Service Contractors?
Is this good or bad for contractors, those going after federal contracts? Why?
Obviously, this is for federal contracts only….at the moment. If this change were successful with federal contracts, would city, county and state be far behind?
What about the private sector? Specifically high profile firms like those in consumer goods, banks and academic institutions. Their purchasing decisions already pay attention to maintaining a good public image.
I’ve started asking contractors what they think about this change and here’s the first response.
I think it would be great if we could all compete on an even playing field with hours, wages and benefits set in advance. I believe our company (IH Services) provides the type of work environment, management expertise and forward thinking that could get us more contracts in this environment. We do not have employment violations because we follow the rules, not like some of our competitors.
Taylor M. Bruce, Jr., President, I H Services, Inc.
What are your thoughts?
What do you think? Share your comments in this post. I’m very interested to hear your perspective on the future.
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Chris Arlen
President, Revenue IQ
February 26th, 2010
Frequent buyers are your existing customers, those already under a base contract for an on-going service.
Base contracts provide revenue, non-contract services (aka project work, TAGs, etc.) provide profits.
Customers under contract are as close to a captive audience as contractors will ever get. You have a relationship, you’re already in their A/P system, and you have credibility (hopefully). Why not sell more of the profitable work?
Most contractors say they do focus on selling to existing customers. But you can bet it’s more of a piecemeal process. One that responds to customers’ requests rather than a proactive approach.
A World Class Frequent Buyer Program
Nordstrom doesn’t waste selling opportunities. It builds stronger, more loyal customer bonds by selling more rather than timidly waiting around.
Nordstrom’s Fashion Rewards is an example of a world class frequent buyer program.
Yes, Nordstrom sells to consumers. Yes, they have tens of thousands of items to sell and millions of consumers to sell to.
But they recognize the lifetime value of customers. They recognize their need to capture as much of their customers’ spend as possible.
Worthy aspirations for every service contractor. A frequent buyer program must be:
- Formal & thought out, not someting tossed off between emails
- Branded & marketed with a name, logo, tagline & collateral
- Committed to the long-term with incentives for your sales staff, as well as customers
3 Keys to a Frequent Buyer Program
Here’s a quick look at three keys to help contractors build their own frequent buyer program modelled after Nordstrom’s Fashion Rewards.
1) Incentivize customers to make more non-contract purchases
How NORDSTROM does it:
Nordstrom’s Level 1 in their Fashion Rewards program provides customers $20 gift certificates for every 2,000 reward points earned.
Points are earned in Nordstrom purchases. They’re tracked and monitored using data from the Nordstrom credit or MOD cards. These are the only forms of purchase allowed in the program. (A MOD card is a Nordstrom card that direct debits from a customer’s bank account, just like a bank’s debit card, except the MOD is good only at Nordstrom. Customers voluntarily sign up for those $20 certificates.)
SERVICE CONTRACTORS can:
Easily track and monitor non-contract services as it’s included in your monthly billing.
Create a points system (like Nordstrom) or a dollar volume discount, rewarding total spend with lower per unit pricing. This is your Level 1 incentives.
Make it easy and visual for customers to tell what they’ve earned. Is that a quarterly email or printout with certificate?
2) Increase customers rewards for reaching higher purchasing levels
How NORDSTROM does it:
Customers reach Nordstrom’s Level 2,3, and 4 when their annual purchases reach a certain volume. For example, in addition to the $20 certificates, incentives at Level 2 include:
- Free trial size beauty products (no purchase needed)
- Nordstrom On Call to a Peronal Stylist for help with last-minute wardrobe needs, gift shopping, etc.
- Complimentary shipping for online or in store purchases (actually a charge with a $10 refund on the next statement,clever huh?)
- Early access to shop the Nordstrom Anniversary sale
- Invitation to the Private Holiday Shopping Party
SERVICE CONTRACTORS can:
For customers attaining specified purchasing goals, consider:
- Labelling the level attained, make it special, such as Most-Favored Client status, or Corporate Platinum level
- Providing a valued service free (possibly one the customer had never before used)
- Provide faster access to your account service rep, either through more frequent site visits, emails or calls
- Include customer contact on your firm’s Customer Advisory Board
- Invite customer to new product/technology demos your suppliers put on
- Invite customer to participate in service roundtables hosted by your trade associations
3) Plan customer incentives for specific times of the year.
How NORDSTROM does it:
Nordstrom has a yearly calendar identifying dates were double and triple reward points can be earned. These are in addition to regular purchases throughout the year.
These dates appear aimed at the slower summer season as well as increasing buying during retail’s high season over the holidays.
SERVICE CONTRACTORS can:
If there are identifiable purchase seasons, incentivize the off season, as well as the high season for those types of purchases.
The profitability of non-contract services will offset a volume discount offered.
And as importantly, the more services customers buy, the more they’ll value you as a service partner.
The critical part is to schedule out special times where your discounts are greater than usual. You need to get customers’ attention, as Nordstrom does with its Double and Triple reward points boldly marked on their collateral’s calendar.
Getting Started
Once a comprehensive Frequent Buyer Program is developed, branded and formalized, your ready to take it to your customers.
Customize a portion of the program for each contract customer. Make the minor changes to incentives, services, schedule and fees required for a particular customer. The goal here is to have a program that’s 97% static and 3% customized.
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Chris Arlen
President, Revenue-IQ
January 25th, 2010
Everybody sells. Even your hourly paid janitor or security guard. Whenever they’re seen or approached by a prospect or customer, they’re selling your company.
Think about those 1,000s of interactions every day. And each one has the potential to gain you new business -or- send customers fleeing to your competitors.
Here’s a story that got me thinking about a practical way for you to add 10s, 100s, or 1,000s of salespeople, for free. Read on.
Story of a Lost Sale & Brand Erosion
The following story is true.
A prospect visited a 5-star hotel/resort in Arizona. Her friend had told her about a very romantic casitas (special suite) that she must stay in if she had the opportunity.
The prospect was given a tour of the hotel and saw the particular casitas her friend mentioned. It was true, it was romantic, it was special. She wanted it for her birthday holiday 6 months later in the year.
A week later she called to reserve the casitas. The desk clerk told her the hotel’s policy did not allow reserving a specific room. The hotel assigned rooms, not the guests.
The prospective guest was surprised, this being a 5-star hotel. She asked what was the purpose of the policy.The clerk didn’t know.
The prospect then offered to pay the entire 5-day stay in advance, $2,450 upfront, right at that moment. Still the clerk referred to the policy saying that wasn’t possible.
The prospect told the clerk she’d checked out the hotel to stay in a specific casitas recommended by a friend. And that she wouldn’t be happy staying in just any room. Her heart was set on that casitas. The clerk politely reiterated the policy.
As you can guess, the prospect hung up frustrated and angry, and without a reservation. The hotel lost a $2,450 sale, and much more.
That prospective guest, now an unhappy non-customer of the hotel wasn’t silent. That’s normal. She definitely decided never go there in the future. And she began telling her friends not to go to there. The number of potentially lost sales grew.
Back at the hotel, the desk clerk correctly followed the hotel policy, he did everything right. He was polite, attentive, used all the proper phone etiquette, except he…
…didn’t understand why the policy existed, therefore couldn’t share that with the prospective guest
…wasn’t empowered by the hotel to improvise in a unique situation
…didn’t realize his brief phone interaction lost the hotel a lot of money and reputation, and if the hotel’s business worsened, eventually it would not have a job for him
…acted like an hourly employee, rather than someone who helps keep his own job
Lessons from the Story
This got me thinking about sales and facility service contractors.
All those hourly employees of contractors have many interactions with prospective customers (think about the visitors to your customers’ sites and word of mouth)
Hourly employees, whether they’re planned to deal with prospects or not, do sell your company.
Why not train them to help your company’s sales and health? Rather than hurt it like the desk clerk in the 5-star hotel.
Here are some brief ideas on how to do that.
How to Add 100s of Salespeople for Free
1) Create a Sales Referral Program
This can be relatively simple or complex. The key is for transparency, integrity, reliability and speed.
Your program should only pay out after a referred prospect is a customer and their first check is received. You only pay your referrer if you’ve been paid, a cash neutral proposition.
It must be clear to everyone involved how things work, what needs to happen for money to be paid. This means a well documented plan that’s presented to all employees (hey, it’s a big deal).
It must be fair for all, and rigidly managed to published procedures (no signs of favoritism or prejudice).
It must be reliable and fast. It works against you if the program takes 2 months to pass on a lead and sometimes gets dropped (you’re generating leads here, and motivating for more).
2) Add Brief Training on the Sales Referral Program
Add a 10-15 minute training for all new hires during their initial orientation.
You’ll also need to roll out the program to existing staff. This can be done in a combination of ways that may include:
- Payroll stuffers
- Supervisors presenting during break/lunch
- Managers presenting at all hands meetings on site
- On internal web site
- In employee newsletters
You may want to publish refresher notices every 6 months to keep the program on employees minds.
3) Training Content
The following is a first, quick take on possible content. There’s obviously a lot more needed. You’ll create your own to fit the specifics of what you want accomplished.
“When someone (prospect) asks you about your company, do the following:”
Look the prospect in the eyes and SMILE
Tell the prospect you’d be happy to have someone from SALES contact them if they’d like
Ask for the prospect’s business card (if they give you one, write their name on the back, make a copy if you like, and pass the card to your supervisor)
The supervisor will send it to your company’s SALES contact (NOTE: all this must happen reliably & quickly, no later than 36 hours from prospect to COMPANY to SALES calling prospect)
Give the prospect your company’s phone #
Give the prospect the name of your company’s SALES contact (you?)
Thank them for considering your company
You may want to include training that lets employees know that almost everyone is a prospect, or can influence a prospect.
Reality Check – Don’t Expect High Volumes
These prospects have just happened to make contact with your hourly staff on site, before going to your web site.
So it’s unlikely you’ll be getting 100s of new leads this way. But even one pays for itself.
Any and All Interactions with Prospects Matter
Remember, that first contact with your company is crucial. It doesn’t matter whether it’s with your janitor or guard -or- with you at your tradeshow booth. You’re setting the tone for all future customer expectations. And prospects are already assessing if they want to do business with your company.
What have you got to lose?
Your hourly staff are already on your payroll. You’re already paying for 10s, 100s or 1,000s of salespeople. Take advantage of that, for free.
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Chris Arlen
President
Revenue-IQ
June 26th, 2009
March 16, 2009 Unhappy Janitors at Microsoft protest subcontractor’s cuts
This article points to the janitorial subcontractor’s staffing cuts and unhappy janitors because of increased workloads.
It made me wonder about our last blog post A Janitorial Fable on Mar 12, 2009.
I wonder if specifications were changed at Microsoft to reflect higher workloads.
I wonder what, if any, communications went to janitors and Microsoft end-users to reshape their expectations.
I wonder how the situation would’ve played out if the subcontractor had read Continents of the Contract Service World?
What do you wonder about?
(Disclosure: SBM Site Services is not a client of Service Performance. ABM Janitorial Services is a former client. 17 years ago, as Sales & Marketing Director for ABM Janitorial, Chris Arlen (that’s me) wrote the proposal that secured the Microsoft contract for ABM.)
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Chris Arlen
President, Service Performance
Technorati: Microsoft, janitors, janitorial workload
March 19th, 2009
The airline industry is a great model for looking at big pain compressed into a short history.
It provides insights into cost cutting strategies, and how they play out over time.
Using our model from the Continents of the Contract Service World it’s easy to see how United’s new strategy can win in the struggling airline industry.
Before we look at what United is doing, let’s revisit our model’s four interconnected relationships:
EXPECTATION
EXPECTATION’s most important relationship is with the CUSTOMER EXPERIENCE as it shapes customers’ perception of delivered service – they’ll see in large part what they expect to see.
PROMISE
PROMISE’s most important relationship is with EXPECTATION as it tells customers what to expect – customers may not believe it all, it provides context and tells customers what to look for.
ENGAGEMENT
ENGAGEMENT’s most important relationship is with the CUSTOMER EXPERIENCE as it shapes service’s moment of truth.
CUSTOMER EXPERIENCE
Where customers experience and assess service.
Airline Industry Past to Present
When the airline industry’s operating costs got out of whack years ago, airlines:
–> went into major cost cutting mode
–> eliminated free in-flight meals
–> passengers’ CUSTOMER EXPERIENCE changed, no free food
–> passengers started bringing their own food on board
–> airlines didn’t have money to increase cleaning budgets
–> planes got dirtier, which changed passengers’ CUSTOMER EXPERIENCE
–> eventually flying in dirty planes became the norm
–> passengers’ EXPECTATION changed to “flying must be tolerated – not enjoyed”
United sees Opportunity
Once flying in dirty planes became the norm, United saw the opportunity to differentiate itself from the competition.
Its new strategy? Cleanliness. United is providing a more enjoyable CUSTOMER EXPERIENCE, saying “fly with us on a clean plane, who wants to fly in a dirty one?”
They’ve invested in deep cleaning every two weeks, steam cleaning and floor to ceiling wipe downs. And they’ve created a new position, General Manager of Cabin Appearance, to oversee the implementation of their clean plane strategy.
So far United is relying on Word of Mouth (WOM) to spread their new PROMISE, which is to fly on a clean plane, it’s enjoyable.
Don’t be surprised if they start marketing that new PROMISE in ads and media.
What does United’s strategy mean for facility services?
United saw EXPECTATION was lowered, and they could gain new business by raising their CUSTOMER EXPERIENCE relative to the alternatives (competition).
Facility services, in-house and out-sourced, are seeing their customers in severe cost cutting mode. This means facility services are skinnying way down too.
Whether its cleanliness, confidence in security, or reliability of mail – there comes a service level that’s so low the CUSTOMER EXPERIENCE is only tolerated, and not enjoyed.
What happens then?
Flight to Quality
It’s called the flight to quality. And it’s not just for airlines.
It happens to customers who have a choice to buy service somewhere else.
It also happens to end-users who have a poor CUSTOMER EXPERIENCE in the facility where they have to work. End-users will seek to work in other areas, sites, at home, or even leave for other companies if that’s available. And those that stay are less productive.
It’s like working on a plane with gum on the floor, someone else’s leftover sandwich in the seat pocket, and sticky all over the fold-down tray. Yes, you can work, but its not enjoyable, and you’re not as productive. Honestly, admit it.
How are you differentiating your CUSTOMER EXPERIENCE?
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Chris Arlen
President, Service Performance
Technorati: Customer Experience, facility service, United Airlines
March 5th, 2009
Footnote #1:
Received interesting feedback from the recent Revenue-IQ article, Zero-Based Servicing, here’s one that got me thinking:
A contractor brought up the issue of how well customers understand the relationship between service quality and service level (as defined by specifications).
Meaning, if service levels have been re-engineered severely downward, will end-users see that as “poor quality”? In other words, does low service levels = low quality?
I don’t believe so. Specifications for low service levels can be performed well, which is high quality, or poorly, which would be low quality. But the service level has been specified independently of its performance, and it’s performance that determines quality.
This was the rationale behind Zero-Based Servicing where desperate companies gain cost reductions by re-engineering service levels down to the absolute lowest levels. Even at those bare bones levels, service still can and should be high quality.
If end-users mistakenly think low service levels = low quality, it points to a disconnect in their EXPECTATIONs, not service quality.
This becomes easier to understand in our new model for the contract service world.
Think about it. The end-users’ CUSTOMER EXPERIENCE has changed now that they’re receiving the lower service levels.
Their EXPECTATIONs though are still set on the higher service levels of the good old days. Why should they change their EXPECTATIONs unless they’ve been told service has changed (revising the PROMISE)?
EXPECTATIONs need realignment to reality when service levels have been decreased.
Otherwise, low service levels can only be seen as low quality, when in reality it’s not the case.
Footnote #2:
Sanity has prevailed, at least temporarily…and Revenue-IQ helped (maybe just a little).
A friend notified me that US Airways is reversing their policy about charging for water. Specifically, they’re returning their beverage service.
Although I don’t hold out much hope for US Airway’s understanding their CUSTOMER EXPERIENCE.
CEO Doug Parker said they were reinstating the service because other airlines didn’t follow US Airways. Sounded like Doug thought it still was a good idea, just that US Airways was so far ahead of the rest of the industry it was left hanging out to dry like laundry on the line.
Wow. I’ll bet there are still more surprises to come from US Airways’ a la carte business model. Can’t wait, but then again, I’ll have to read it online or hear it from someone else, I’m an ex-customer.
So, what’s happening in your world?
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Chris Arlen
President, Service Performance
Technorati: The Contract Service World, service expectations, service quality, layoffs, US Airways
February 26th, 2009
It used to be more important to select a company to work for, rather than choosing the industry it was in.
The belief was that a great company could outperform the industry as a whole. And wouldn’t you rather be at that dynamic place than somewhere else?
Well, today’s economy shows that making strategic decisions about healthy industries may be as important as choosing a specific company to work for, or with.
This is true if you’re managing an in-house service department, or providing an out-sourced service.
The company you keep isn’t what it used to be. The future of the industry is where it’s at.
What happened?
Strategy Caught up with Tactics
Strategy focuses on the larger, macro forces that overwhelm individual company efforts.
Look at automotive suppliers hurting as much as their customers. Doesn’t matter how brilliantly those suppliers performed their business, the bigger picture (automotive industry in this case) swallowed them up.
Conversely, a rising tide raises all boats. If you were in the right industry at the right time you couldn’t help but win, as in the early dot com years.
What’s this mean for an in-house service department?
The health of the industry your company is in will impact your service tremendously.
And that comes (might already have) in the form of drastically reduced budgets, headcount reduction, and deferred equipment purchases and/or maintenance.
Is this an over reaction by some companies to 2009’s fear-based economy?
Maybe, but here’s an example to think about: Microsoft made $4.17 billion in profit last quarter.
That’s worth repeating. Old softie made $4.17 billion in profit from October through December of 2008.
Then they immediately laid off 1,800 employees, to be followed by another 3,600 within 18 months.
With all that profit Microsoft looked at the industries it was selling to and saw bad times. So snickersnack went the RIF blade and headcount fell.
In all likelihood the layoffs were for investors, to show them Microsoft was proactive, not just sitting around waiting for bad things to happen.
But still, if your company is in a stressed industry, like automotive, banking, or many manufacturing sectors, how drastic a cut to your in-house services will you need to make?
Is 10% reduction enough? 25%? 50%?
Can you wait until the current contract expires?
Or does your company need drastic cost reductions now?
What’s this mean for an out-sourced service contractor?
If your customers are in stressed industries, you’d better go beyond the usual cost reduction drills.
It’s probable you’re not going to make those drastic reductions of 40% and more by skipping a trash can or two.
It’s time to explicitly define how your service contributes to your customers’ bottom line. Do you know how you contribute? Does your customer contact agree?
Once you’ve done that, then cut your scope to its absolutely, positively necessary rock bottom to reduce their spend.
You’ll also have to deal with end-users left over expectations They may expect a level of service that’s not in line with the new, gutted scope and spend.
As your past experience has told you, your customer contacts aren’t always the best at telling their end-users they’re paying for less service. You’ll have this realignment of expectations to accomplish on top of all the other operational stuff.
However, there’s one thing the economic crisis has done, its empowered change.
End-users may be more willing to accept the change of gutted service if it means keeping their company’s doors open longer, and their paychecks.
The Business World may be a Scary Place for Now
Business survival will likely be white knuckled for the next several years. But you can make it scary like roller coaster scary – not Texas Chainsaw Massacre scary.
Your choice. Things are what they are. And will be that way for a while.
New Strategy Anyone?
In the upcoming monthly Revenue-IQ article (what you’re reading now is the weekly blog) I’m planning to present a new service strategy for our current economy. In particular for companies in stressed industries.
It’s based on a line from the recent movie The International, which says “When there’s no way out of the current situation, look for a way further in.” Interested?
MORE ABOUT: US Airways shooting themselves in the head
They’ve started charging for pillows and blankets. $7 to keep your head cushioned and your legs warm. And you get to take that snazzy US Airways logoed pillow with you onto other airlines’ flights. Yup, good thinking marketing department. And how did they avoid the layoffs?
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Chris Arlen
President, Service Performance
Technorati: economy, Microsoft, layoffs, US Airways
February 19th, 2009
That’s right, in the head, not the foot. Because the foot might take some time. And US Airways appears in a hurry to end it all.
US Airways Targets its Noggin
In the past US Airways, like other airlines, eliminated free in-flight snacks and food, and began charging for them. Instant new revenue source. Their resourcefulness is understandable in the long suffering airline industry.
Now, US Airways has eliminated it’s in-flight beverage service. This means passengers no longer get soda, coffee, or water without paying for it. That’s right, no water unless you pay.
I learned this on a trip from Seattle to Philadelphia to hold a training session. Imagine a 4-1/2 hour flight, no pay, no H2O.
US Airways
Clear Cutting the Forest for the Trees
US Airways’ zeal for cutting costs has blinded it to the experience customers have in their planes. It’s cannibalizing what little is left of its customer experience. And at some point that’s fatal.
US Airways must believe their only hope of survival now is having the lowest costs so they can offer the lowest prices. Because lowest prices always fill planes.
This strategy appears to have reached a tipping point, one where US Airways may be driving passengers away, rather than drawing them in.
Why? Because people talk.
Customers to customers, employees to employees, and employees to customers. Word of mouth is king. Not rocket science.
I Told You So
Here’s an example, it’s mine. During breaks in my Philadelphia training session I told at least 4 clients how shocked I was about no-pay, no-water on US Airways.
One of those clients told me his US Airways’ water story. He asked an attendant for a drink of water and was told “that’d be $2 please”. He thought she misunderstood him and said “no, I don’t want a bottle of water, just a drink, you know, in a cup”. The attendant hesitated for a moment, then sheepishly said “the $2 isn’t for a bottle, it’s for a cup of water”.
He looked at her with his jaw on the floor then said it was outrageous.
She agreed, said she felt really bad about having to charge passengers for water, that she no longer enjoys her job, doesn’t feel like going to work because of it – she also said she wasn’t alone, it was a common feeling among other flight attendants.
On my return flight I saw proof of what she was saying. One of my flight attendants wore a button that said “I Just Work Here”.
I asked her what it meant, and she said she couldn’t answer that question. She just wore the button. I took that to be mean US Airways wasn’t allowing her to speak out against the airline, but union regulations allowed her to wear buttons.
What does that button say about US Airways?
What does that say about how their employees feel?
How long before dispirited employees become disgruntled?
And what does that tell you about the US Airways’ customer experience you’re going to receive.
And I’d guess that several of the clients I told my water story to are already passing it on to their clients and friends.
What’s Next? Paying to Use Restrooms In-Flight?
Don’t laugh, it could happen, soon.
I’d guess US Airways’ number crunchers have already worked out how to charge for restrooms. They’re called pay toilets and are another revenue source. When that happens, we’re all ____ out of luck if we don’t have the cash in flight.
I’m not belittling the situation US Airways is in, they’re struggling to remain afloat. But the savings they’re generating aren’t showing up in widely lower pricing than their competition. They’re not saturating the market with pricing so low that all their flights are filled every time.
Think about it. How low of a fare would it take for you to fly on a plane with a pay toilet?
If other airlines follow, does a free toilet and cup of water become distinct competitive advantages between airlines?
Bad Customer Experience & Repercussions
For myself, I’m not going to fly US Airways. I’ll have my clients book another airline for me.
Funny, I’m the one thing that can help US Airways survive in trying times, I’m a customer.
Oh yeah, and I’m going to tell these water stories to friends and clients too. Matter of fact, I just did that.
And I only hope pets transported in the cargo holds of US Airways’ craft carry the exact change. So helpful to flight attendants, and another contribution to US Airways’ bottom line.
How are survival cost cuttings affecting your customer experience?
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Chris Arlen
President, Service Performance
Technorati: customer experience, customer satisfaction, customer loyalty, US Airways
February 6th, 2009
Rodney Dangerfield’s “I don’t get no respect” setup his punchlines.
The service role can say the same thing that it doesn’t get respect either, but it’s not funny.
Janitors, security guards, landscapers, drivers, food servers, care givers, carry America’s service economy on their backs.
Someone has to do this work. Imagine the chaos of daily life if its not done. Remember the inconvenience and disruption when services are done carelessly, haphazardly, or incompletely.
It’s clear the service role is not respected for its importance.
Why is Respect to the Service Role Important?
If you manage or contract a service you’re continually looking for great service people. These individuals help make or, in their absence, break your service.
And the best people have a strong sense of self-respect, which leads to…
- Taking pride in one’s work, which leads to…
- Better performance & job satisfaction, which leads to…
- Increased loyalty & tenure, which leads to…
- Happier customers receiving greater value.
This self-propagating wheel of good fortune secures the respect of others.
However, the reverse of the above is also true. If the service role isn’t respected by the department, business, or those performing the service, bad things occur, such as:
- High employee turnover
- Poor quality & inconsistent service
- Little value received from the service investment
Funny, the Service is Respected, but not the Role
Service departments and business enterprises get some degree of respect. They’re fulfilling a business or support function. They’re employing people, and/or making profits, and/or paying taxes.
Yes, some services are more respected than others (high-tech is sexier than long-term nursing), but all in all, the service itself is respected for its contributions to businesses, the economy, and society.
So if the service itself gets some degree of respect, why not the service role?
In today’s world, the individual role of the person providing service is looked down upon.
There are exceptions. They’re the highly paid business professionals, such as lawyers, doctors, programmers, architects, etc.
But there are far fewer professionals compared to the millions of people in lower paid service roles.
So why the lack of respect? Is it because some service roles aren’t valued, therefore low paid?
Valued vs. Respected
Valued and respected aren’t the same.
When a service role is valued, it’s paid very well. But respect isn’t guaranteed by high pay alone. Think about professional athletes behaving badly off the field.
Someone Who Serves is Not a Servant
The reason the service role isn’t respected is a result of a limiting mindset, a false belief that “someone who serves” is a “servant”.
In the egalitarian-minded U.S. today “servant” is a pejorative term, not a respected professional role.
Changing Direction from the Inside Out
Obviously there’s a business rationale for raising the respect of the service role in both the minds of the individuals providing service and society at large.
Some sage said that “to change the world you must first start by changing yourself”. And so it is with respect for the service role.
There appear two routes towards increasing that respect, though I’m certain there are many more.
1) Implement business practices that help employees build self-respect
2) Hire self-respecting employees
1) Implement business practices that help employees build self-respect
Here’s a great example of a motto created for hotel workers by the former Ritz-Cartlon President, Horst Schulze.
“Ladies and Gentlemen serving Ladies and Gentlemen”
From this motto training programs, practices and procedures were crafted to support the motto. Yet this simple statement communicates the worthiness of the service role.
It makes the server equal to those being served. As a result, it enables the server to retain their self-respect while serving others. It’s incredibly powerful for employees who may not have started out with a lot of inherent self-respect.
And this worthiness is in direct contrast with the mindset of a “servant” that implies being lesser than those served.
2) Hire self-respecting employees
Hiring practices typically look for skills, experience and a few desirable personality traits, such as honesty, reliability, etc.
By adding self-respect to the hiring profile, service departments and contractors will be further along to realizing the business benefits from those who respect their service role.
How are you raising the respect for your service role?
~~~~~~
Chris Arlen
President, Service Performance
Technorati: service role, employee productivity, service performance, customer loyalty
January 8th, 2009
Recently a client brought up the question of “who defines service”. Not WHAT the specs were. But HOW the end-user should receive service.
This client is a large corporate service department of a large, very large corporation (did I say they were large?). They provide service to their end-users, all who are part of the same company. Get the picture?
So, my client, as a service provider, asked “who defines service”?
The Dilemma
My client was concerned their end-users would expect Nordstrom’s type service. When obviously that wasn’t possible even with their significant resources.
Their end-users are mandated to use my client. They’re not supposed to have the option of going outside for service.
Mandated or not, end-users still have some expectations of HOW they want to be served.
And my client felt they couldn’t give everything that their end-users wanted. And so the question arose “who defines service”?
An Answer?
We did our best to provide an answer. And it may not have been as definitive, or as satisfying as our client would have wished. But reality is like that sometimes.
Here is one answer in two parts to “who defines service”?
Part #1 Service Scope
The budget and business contribution of the end-users defines WHAT is done for them. You’ll recognize this as scope defined in service specifications.
The more important and/or valued the end-users, the more services will be scoped, budgeted and paid for to take care of them.
Part #2 End-User Expectations
End-users define HOW they want to be served.
Just ask ‘em. They’ll tell you.
The service provider must do everything they can to bring end-users expectations as close to reality as possible.
Then the provider must work hard to help end-users perceive as much of the services that were delivered, and the quality of those services too.
Expectations Aren’t Always Fulfilled
Seems a bit too simple, but there it is. Just because end-users might expect Nordstrom’s service within their corporate office, doesn’t mean they’ll get it.
But the burden to communicate to end-users falls fully, and entirely on the service providers’ shoulders. It’s their job to influence expectations and raise perceptions.
And that’s in addition to doing the work on time, on budget, and in compliance with contract, environmental, social and legal requirements.
Tough order? Nah, it goes with the territory of service provider. Doesn’t matter if you’re an internal department serving your fellow employees, or an outsourced contractor. It’s all part of the game.
How, and who, defines your service?
~~~~~~
Chris Arlen
President, Service Performance
Technorati: service, service scope, specifications
August 12th, 2008
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