Next generation service management thinking for the ‘age of the customer’ Ian clayton
Next generation service management thinking for the ‘age of the customer’
Ian clayton
Copyright © 2012 VKSII, All Rights reserved
Universal Service Management Body of Knowledge (USMBOK)
Next Genera>on Service Management Thinking For the ‘Age of the Customer’
Copyright © 2012 VKSII, All Rights reserved
Your Guide Ian M. Clayton
• 38 years in IT • Author of the Universal Service Management
Body of Knowledge (USMBOK™)
• Pioneer of outside-in thinking for service provider organiza>ons
• “I rescue ITSM projects and help service provider organiza9ons ensure the customer and service experience is managed”.
Ian Clayton Principal
Service Management 101
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How to Contact Me
• Email: [email protected]
• Support: support.usmbok.com
• Blog, discussions and public Q&A www.servicemanagement101.com
• Twi[er: www.twi[er.com/ianclayton
• Skype: ianmclayton
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Topics
• The service society and ‘age of the customer’
• Why tradi>onal IT Service Management (ITSM) ‘projects’ fail
• The o_en forgo[en heritage of service management thinking
• The elements of ‘next genera>on service management’
• A customer centric approach and how to start your true service management journey, from the ‘outside-‐in’.
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“The loss of focus on the customer as a human being is probably the single most important fact about the state of service and service
management in the Western world today”
Karl Albrecht, c1992 ‘The Only Thing That Ma[ers’
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The Service Society
• We live in a service society and ‘age of the customer’ dominated by outcomes and the ‘service experience’
• Experiences using products and interac>ng with these and their providers shapes our percep>on of value
• Our level of sa>sfac>on is formed from whether we achieved our desired outcomes, with what experience, and at what cost
• This “feeling” acts as the basis for loyalty and advocacy, and forms our general percep>on about the quality of a service, and the capabili>es of its provider or service business.
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Today’s Influences...
• Working from home/remotely – telecommu>ng
• Decentralized infrastructure -‐ cloud compu>ng and virtualiza>on
• Mobility -‐ A3 (anywhere, anyhow, any>me)
• Bring Your Own Device -‐ BYOD • Touch (Hap>c) -‐ 4S, “swipe, swipe, select, submit”
• Voice Direc>on, Instruc>on “Open the pod bay doors Hal”
“In 500 yards take the next le_”
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The New IT
• Focus change from technology farmer and innovator to technology exploiter, business growth enabler
• Operate and be performance managed as an informa>on service provider
• Provide a customer (service) experience on par with non-‐IT service businesses
• Deliberately and con>nuously engage the customer
• Successful IT? Become ‘invisible technology’.
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IT Management Impera>ves
• A more agile and responsive IT investment decision-‐making process
• Complete alignment of IT opera>ons, programs and ini>a>ves with business goals
• Cost effective use of all types of technology and IT resources • PAYGO -‐ utility styled informa>on services access and cost
model.
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IT’s Tradi>onal Response
• Reengineer prac>ces • Improve processes
• Mature capability of processes versus a framework
• Conform to a standard – such as ISO/IEC 20000-‐1
• Encapsulated in the term ‘IT Service Management’ -‐ ITSM.
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Tradi>onal ITSM is failing the Customer
and its management sponsors.
Why?
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How many of these ques>ons can you answer?
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“What business are you in?”
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“Who are your customers?”
(Pick one...)
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“What ac>vi>es do your customers perform in pursuit of success?”
(Pick one...)
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“How do you help your customers perform these ac>vi>es?”
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“What do your customers experience when they use your services or interact with your
organiza>on?”
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“How sa>sfied are your customers with the help you provide?”
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Tradi>onal ITSM thinking can result in you producing
a human ‘car wash’.
A place that processes people and their requests through the facility rather than ensuring a desired outcome and crea>ng a total
experience and ‘feeling’ of value.
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Tradi>onal ITSM is ‘inside-‐out’ and not how successful service
businesses manage service delivery and support.
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‘inside-‐out’ indicator #1 “The view of our customers, what they care
about, and how we serve them, differs significantly across the organiza>on”
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‘inside-‐out’ indicator #2 “Key service staff are unable to state easily, clearly and briefly who our customers are, what we do for them, and the basis for
measuring customer sa>sfac>on”
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‘inside-‐out’ indicator #3 “When compared, more >me is spent on
internal issues, processes and conflicts than on discussing the customer needs,
expecta>ons, and service experience”
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‘inside-‐out’ indicator #4 “Few of our decisions are explicitly driven
by customer needs”
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‘inside-‐out’ indicator #5 “We have trouble adap>ng to normal
varia>ons in the customer opera>ons and get blindsided by changes in strategy and
behavior”
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‘inside-‐out’ indicator #6 “We are trying to apply one rigid prac>ce or process framework to all customer situa>ons (consumer scenarios)”
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‘inside-‐out’ indicator #7 “We do not know how our efforts relate to the interests and success of our customers”
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Its >me to press RESET and REWIND
on the ‘Service Management’ bu[on.
Why?
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IT<SM: “Service management
concepts and methods applied to the challenges of an IT
organiza>on being performance managed as a
service provider”
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Fi_y Years of Service Management
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Father of ‘Customer Centricity’ Theodore Levi[
• Levi[ was a provoca>ve writer, epitomized by his descrip>on of the Harvard Business Review, “a magazine wri?en by people who can’t write for people who won’t read”
• Levi[ was a pioneer in product and service marke>ng, posed the simple ques>on in his inaugural ar>cle ‘Marke>ng Myopia’ published in the Harvard Business Review July-‐August 1960: “What business are you in?”
• It was not so much an ar>cle as a manifesto.
• Levi[ wove a powerful argument that companies should stop defining themselves by what they produced and instead reorient themselves toward customer needs and sa>sfac>on.
1925-‐2006
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Father of Service Management Richard A. Normann
• Authored the first book on the topic of ‘service management in 1984’, (Service Management: Strategy and Leadership in Service Businesses)
• The book discussed the role of services in society, technology in services, and the need for a streamlined service management system.
• Other key concepts discussed included: Moments of truth, Self-‐service
Service delivery system
Service concept and the service ‘package’
Service management system components.
1943-‐2003
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Service Management
Is about managing “a service”
and managing “service” as an experience
from the outside-‐in.
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The Language of Service Management
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Outside-‐In Thinking Guaranteed customer centricity
• Outside-‐In thinking is a philosophy and management approach that ensures you place the interests of your customers ahead of your capabili>es
• An explicit customer reason is embedded in every decision made by the service business or service provider
• Organiza>ons applying outside-‐in focus on sa>sfying their customers by delivering a powerful combina>on of a ‘successful customer outcome’ and a superior service experience
• Outside-‐in also helps you measure your success and target improvement from the customer perspec>ve.
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Steve Towers – “Mr. Outside-‐In”
• Steve is one of industry's noted experts in Business Process Management (BPM), performance transforma>on and Customer Experience Management and co-‐founder of the BP Group
• Through research and ‘hands-‐on’ exposure to the world’s leading companies he has pioneered the evolu>on of BPM and 'Outside In ’ thinking
• In 2011 Steve was entered into the Architecture & IT World Hall of Fame
• h[p://www.stevetowers.com.
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The Outside-‐In, Inside-‐Out (OI-‐IO) Con>nuum™
• Posi>ons key concepts and terms based upon inside-‐out, or outside-‐in bias
• Represents the span of centricity and transforma>on journey of a prospec>ve service organiza>on
• Provides context for a transforma>on journey driven by a con>nuous improvement program
Custom
er
Centricity Infrastructure
Centricity
Value
Rela=onship
Customer Experience
Complaint
Sa=sfac=on
Loyalty
Advocacy
Scenarios
Access Points
Touchpoints
Successful Outcomes
Emo=ons
Service Experience
Contact Center
Channels
Service Request
Pathway
Service Encounter
Interac=ons
Moments of Truth
On-‐Stage
Alignment
Service
Product
Brand
Expecta=on
Back-‐Stage
Problem
Defect
Workflow
Standard Work
Best Prac=ce
Process
Incident
Capability
Maturity
Support Processes
Infrastructure
Item
Asset
Resource
Event
Alert
Ar=fact
Procedure
Func=on
The Service Management System
The Outside-‐In (OI) Inside-‐Out (IO) Con=nuum™
Source USMBOK™, © 2009 Ian Clayton
Commodi=es Goods Service Experience
Tradi=onal ITSM
Frameworks
Reac>ve
INSIDE
Proac>ve
OUTSIDE
USMBOK
USMBOK P94
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Customer Sa>sfac>on Designed, measured and managed from
moments of truth within a service encounter.
Sa>sfac>on-‐>Loyalty-‐>Advocacy.
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Service Encounter
• Every day each of one of has many ‘service encounters’
• “An episode where a customer comes into contact with any aspect of a product, or service organiza>on and gets an impression of its quality
• An encounter is prompted by a service request
• Within each are consumer (customer) and provider ac>ons, interac>ons, moments of need, and moments of truth.
• At its core is a ‘consumer scenario’ and ‘user stories’.
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The Service Encounter Rules
• Knowing when and where service encounters occur is a mandatory ac>vity for a service organiza>on
• Service encounters and the support ac>vi>es they ini>ate are pre-‐designed into product and service offerings
• Service encounters span third-‐party involvement
• Where an encounter starts and ends is ‘nego>able’
• Service encounters play a vital role in customer sa>sfac>on and thus, to the provider’s overall success, and are represented in the service management system by a ‘service request pathway’.
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Moment of Truth
• A vital interac>on between the consumer and the provider, represen>ng an instance where the customer has an opportunity to form (or change) a percep>on about any aspect of the service experience, service organiza>on, and its products and services
• The percep>on can include the quality of the service and the capability of the service business or service provider organiza>on
• Moments of Truth act as key indicators in determining and measuring the level of ‘customer sa9sfac9on’
• Every service encounter has at least three moments of truth represented by the ‘greet’, the ‘use’, and the ‘thank you’ or ‘exit’ interac>ons.
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The Magic Number -‐ “42”
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“Next Genera>on” Architecture 4 key elements – engage, request, support, improve
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Pillars of Service Support Break-‐fix, helping-‐hand, service recovery, complaint
handling
CUSTOMER SATISFACTION
COMPLAINT &
COMPLIM
ENT
BREA
K-‐FIX
HELPING HAND
SERV
ICE RE
COVE
RY
(CUSTOMER) SERVICE SUPPORT
INTERACTIONS
PROBLEM MANAGEMENT
Moments of Need
Moments of Truth
Feedback
IMPACT MANAGEMENT
OPPORTUNITY MANAGEMENT
SERV
ICE
PLANNING
CONTINUOUS
IMPR
OVE
MEN
T CU
STOMER
RE
LATIONS CUSTOMER ENGAGEMENT STRATEGY
Expecta=on
Experience
Sa=sfac=on level
Encounter
Emo=ons
SERVICE MARKETIN
G
4Es
Source: USMBOK
USMBOK P170, 433
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Outside-‐In and Inside-‐Out
delivery channel!
interaction!front stage action!
consumer action!moment
oftruth!
back stage action!
momentof
need!
level of satisfaction!support processes! IO!
consumer scenario!
OI!
service request!“42”!
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Outside-‐in Con>nuous Improvement
Approach: Map, inspect and improve, one service
encounter (request) at a time as part of an ongoing continuous improvement program.
Problem Opportunity Hypothesis
Consumer Scenario
and Story
Workshop Problem Queue
Improvement Queue
Change Schedule
30-‐60-‐90 Cycle
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How o_en do you go on a service safari to observe your customers in their natural
habitat?
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Are you asking what process to implement first, or what services to
catalog, instead of what consumer scenario to capture and what service encounter
to inspect?
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Summary
• We are in the service society and ‘age of the customer’
• Tradi>onal ITSM ‘projects’ are inside-‐out and failing the customer
• We need a ‘next genera>on service management’ approach that is outside-‐in and true to origins of service management
• The journey can start today with an approach that engages the customer, understands and improves the service experience, through a program of con>nuous improvement.
• The path to opera>onal and service excellence is through recognizing our heritage, and thinking and ac>ng outside-‐in.
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Universal Service Management Educa>on
• h[p://www.usmbok.com
• h[p://support.usmbok.com
• h[p://www.twi[er.com/usmbok
• h[p://www.udemy.com/courses/search?q=usmbok
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Universal Service Management Body of Knowledge (USMBOK)
Ques>on and Answers www.servicemanagement101.com (‘Q&A’)
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The USMBOK Series
‘Rose[a Stone’ for service management
Universally applicable to any service business or anyone performance managed as a service provider organiza>on
Framework, system, organiza>on
Companion prac>>oner guides
Lexicon of Terms (1200+)
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