Transcript 幻灯片 1 - University of Delaware

CHINA UD/DAYS INN
Class 1
Introduction to Strategy for Effective Quality Service
Delivery
Examples from Disney and Marriott International.
Why quality matters.
Setting the service table: Porter’s Model in brief and Co-alignment
in brief
While innovations in hotel design and style, technology, and personal
amenities will always be important, nothing comes closer than personal
service to providing what
Strategist Michael Porter has defined as true competitive advantage: the ability to
deliver distinctive benefit for which customers will pay more, over time, because
those benefits are highly valuable and difficult to imitate.
• A company can outperform its rival only if it can establish a difference
that it can preserve;
• Competitors can quickly imitate management techniques, new
technologies, and input improvements;
• The most generic solutions-those that can be used in multiple settingsdiffuse the fastest; and
• Competitive strategy is about being different…choosing to perform
activities differently or to perform different activities than rivals.
Michael Porter, “What is Strategy?,”, Harvard Business Review, NovemberDecember 1996,pp.62-64.
COMPETITIVE STRATEGY
Forces Driving Industry Competition
Three Generic Strategies
STRATEGIC ADVANTAGE
Industry-wide
STRATEGIC
TARGET
Uniqueness Perceived
by the Customer
DIFFERENTIATION
Low Cost Position
OVERALL COST
LEADERSHIP
FOCUS
Particular
Segment Only
Class 2
The importance of Quality Guest Services to Your Hotel
Business’s Bottom Line.
The monetary cost of a lost customer (from Keiser, DeMicco, et al.
textbook) [Future Value of a guest]
What the customer expects
What is quality customer service
The importance of understanding the “service (and product) lifecycle
and the cycle of service”.
The service process and blue print-an introduction to these concepts
(more in depth later in the program on TQM and CSI).
An Example:
McDonald’s
Quality
Service
Cleanliness
and
Value
Disneyland
Great Quality and Innovative Food
Over-the –top Guest Service
Exceptional Cleanliness
Entertainment & Show
“You can dream, create, design and build the
most wonderful place in the world…
But it requires people to make the dream a
reality.”
Walt Disney
The cost of poor service
To estimate how much poor service costs your organization, calculate the
following:
Lost revenue
1. What an average customer spends in a year
2. The number of customers lost each year (for the average
company, 25%)
3.The revenue lost form lost customers (1*2)
4.Lost revenue form people ex-customer talk to (3*10)
Labor costs
5. Time redoing things not done right in the first time
6. Time spent on warranty repairs
7. Time spent apologizing to customers
8. Time spent responding to government agencies, consumer
complaint bureau etc.
Other costs
9. Cost of shipping express instead of regular
10. Cost of collections from angry customers who refuse to pay
11. Cost of liability insurance
Your costs
Other costs (continued)
12. Legal costs
13. Telephone costs for apologizing, explaining, etc.
14. Postage costs for reshipping, apologizing, explaining, etc.
TOTAL (add number 3 through 14)
Cost of poor service
Adopted form G. Roberts_Phelps
Your costs
Remember
We will be better tomorrow than we were today.
Deliver the best service possible all the time.
Use the guest’s name often. Practice personalized
service, especially for out return guests.
Humility, Humor, Humanity.
“Thank you for staying with us” a great way to
say “Happy you are here.”
At your service, How many I assist you,
Certainly, My Pleasure.
The 2.5 inch rule.
Eye contact.
Remember !
96 percent of unhappy customers never complain.
But if their problem remains unsolved—they usually tell ten other
customers!
The Hotel Service Guest Process(1)
Guest
Pre-Arrival
Arrival
OccupancyCheck in
Departure
Guest
Feedback Loop
(1) Case Studies—EI Front-office Management book
(DeMicco,2009)
Keeping customers happy is good and profitable for the
business. A 5 percent increase in customer retention has
been shown to increase profits more tan 25 percent. It is
estimated that companies lose 15 percent to 20 percent of
revenues each year to ineffective, inefficient processes—
—although some might suggest that it’s even higher. Six
Sigma provides a goal that applies to both product and
service activities and that sets attainable, short-term goals
while striving for long-range business objectives.
Statistics…
Only 4 percent of dissatisfied customer tell us, 96 percent tell other people.
Each unhappy customer tells an average or 10 or more people (13 percent tell 20
or more).
Resolving a problem quickly will turn 95 percent of unhappy customers into return
customers.
40 percent of your perceived customer service is how well you solve problems.
Customer complaints are great fun…
Here’ s how to deal with any complaint and turn it around:
G et the facts
R esponsibilities
E mpathy
A gree a solution
T hank the customer for complaining
F U N--- Follow-Up Now!
Adopted form G. Roberts_Phelps
Keeping customers
Customers are for life…not just for Christmas!
Lost customers…
1 percent die.
3 percent move away.
4 percent just naturally float.
5 percent change on friends’ advice.
9 percent can buy cheaper elsewhere.
10 percent are chronic complainers.
68 percent go elsewhere because the people they deal with are indifferent to their
needs.
Make the extra-ordinary---ordinary!
Every year most businesses lose between
10 percent and 30 percent of their customers—
and they don’t even know who these customer are.
Turn complaints into opportunities
Welcome complaints !
Complaints are opportunities.
Problems are wake-up calls for creativity and commitment.
People complaining are people to value---they want to stay customers
and are simply telling you how to achieve it and keep their custom.
Be pro-active, not re-active to customer service issues.
Quality, like beauty, is in the
eyes of the beholder (Customer).
The Meaning of Quality
QUALITY CONTROL: measurement of
goods and services against
established standards of excellence.
What Is Quality Service?
We are now ready to address the question, what is quality customer
service? So, here is my response.
Quality customer service is the ability to consistently
meet external and internal customer needs, wants, and
expectations involving procedural and personal encounters.
The Difference Between
Product Quality and Service Quality:
Product Quality is WHAT YOU GET
and is easily quantifiable.
Service Quality is HOW YOU GET IT
and is less quantifiable.
Quality service is service that consistently meets or exceeds
customer expectations.
Every customer comes with certain expectations about the quality of
the goods, the services, and the total experiences of dealing with
your business. When you exceed his expectations he perceives the
quality as relatively high. When you fail to meet his expectations he
experiences the quality as relatively low. In the back of every
customer’s brain is a scale that compares what he gets with what he
expected.
The recipe for success in hospitality is the same s that for any other
type of business: identify customer expectations, consistently meet
or exceed those expectations, and do so at a prices that is acceptable
to customers and generates profits acceptable to the company.
The factors in Dumping
a Company:

Service
 Quality
 Price
The factors in a Purchase

Price
 Quality
 Service
Think of the last time you stopped
doing business with a company…
70% say it was for poor SERVICE
Adopted form G. Roberts_Phelps
Class 3
Basics of High Quality Customer Service
Identifying and retaining your loyal customers
High quality customer service
A systems management approach
The “Service Profit Chain”
Employee Satisfaction via “internal service quality” –how this
impacts the quality of the service delivery by your employees.
Tools for evaluating customer satisfaction- electronic tools, gap
analysis, Importance-Performance matrix, SERVQUAL.
Time Out for a -Group mini-case (work in teams)
U.D. HART. DeMicco 2009
•
The Service-Profit Chain
SUPPORTIVE PROCESS
Workplace design
Job design
Employee selection
Employee development
Employee rewards and recognition
Tools for serving customers
Employee productivity
Internal service quality
Employee satisfaction
Employee retention
External service value
Customer satisfaction
Customer loyalty
Revenue growth
Profitability
THE SERVICE PROFIT CHAIN
=VALUE, SATISFACTION, LOYALTY
Importance/Performance Matrix
U.D. HART. DeMicco 2009
(B) Performance
Hi
(A)
Importance
to customer
Low
Low
Hi
The Service Gap Analysis Matrix
Exceed
Expectation
s
High
Guest
Expectations
Performance
GAP!
“Must Have”
“Necessary to have”
“Nice to have”
Low
Low
Performance
High
DeMicco,2009
Q LH: Of all the components that make up the guest
experience, from valet to front desk to housekeeping to
foodservice, is there one that’s more critical to the resort’s success
and the guest experience? If so, what is it?
A Wynn: The total voice of the employee. Everything else is a
joke by comparison. Everything else doesn’t amount to one
percent. Everything is the eye contact and the tone of voice of the
employee. Forget everything else.
People of taste and discretion don’t want big, they want
nice; they don’t want dirty, they want clean; they want
pretty, not ugly; and they want to be cared for by people
who care for them as human beings, not as Blackjack
customers or a drink customer, or a diner, but as human
beings.
Food for Thought:
If 95% of Guests left satisfied; is that good enough?
At the Magic Kingdom last year, 5%=745,000 dissatisfied Guests
Dissatisfied Guests tell approximately 16 to 20 people about their
experience.
*And if the Guest has access to Internet?
Can we afford to let this many Guests leave dissatisfied?
Gap analysis
To determine the difference between what you do and what your customer expect, complete
the following analysis and fill in your answers on the table that follows:
1. Fill in your four most important outputs (products or service) in the space shown (A—D).
2. Visit or talk with at least three customers to determine what they expect for each of your
listed product or service outputs, how important each expectation is, and how the customers
rate your company in providing it.
3. Fill in what you learn about your customers and their expectations for each product or
service listed.
4. Note how important each expectation is to the customer on the following scale:
1=Unimportant/unnecessary
2=Somewhat important
3=Very important
5. Show how your customers rate your product or service in this area on the following scale:
1=Does not meet expectation
2=Meets expectations adequately
3=Superior (exceeds expectations)
6. List any problems you uncover of which you were unaware.
Product/Service
A. Product/service:____________________________________
Expectation
Importance
Rating
B. Product/service:____________________________________
Expectation
Importance
Rating
C. Product/service:____________________________________
Expectation
Importance
Rating
D. Product/service:____________________________________
Expectation
Importance
Rating
Examples of good and bad service----Worksheet
1. Working in a group discuss examples of good and bad customer service from
information obtained when you were a customer, list at least three of each.
2. Be sure to examine each case in detail, identifying what impressed or depressed
people in each case.
3. Transfer to a flip chart and select one of your group to present back.
Good
Bad
Discuss points
How many of the good example are mistakes or problems by suppliers that are
solved well?
What are causes of dissatisfaction-small things or bad attitudes more than major
problems?
How many of the bad examples involve the attitude of staff serving?
What are the similarities between the examples?
Adopted form G. Roberts_Phelps
5 Quality Service GAP Analysis
There are 5 potential GAPS:
1.
Failure to know Customer Expectations
2.
Incorrect Service Quality Standard
3.
A Service Performance GAP
4.
Not delivering on the promise
5.
The Service Quality GAP
(e.g. expecting one level of service or product and receiving at a
lower level)
TRUE2—The Big 5 of Guest Service
1. Tangible (Landscapes, lobby, room etc)
2. Reliability (Do things work?)
3. Responsiveness (Willingness to serve and help)
4. Understand Needs (Safety, assurances, courtesy, friendliness, e.g.
female travelers—safety and security)
5. Empathy (Individual attention and caring. Anticipation of needs.)
TRUE2 [adapted from Zeithaml.etc. Delivering Quality Service]
UD HART, DeMicco 2009
Guest Feedback Analysis (GFA)
Fill in the following table to determine guests ‘ importance compared to actual
performance. The greater the value C, the more satisfied the guest. Plot the data on
the matrix to show the areas of strength and weakness. (1=poor, 10=excellent)
Element of service/
performance or perception
1
2
3
4
5
6
7
8
9
10
A Importance
to customer
1-10
B Performance
rating
1-10
C Variance
1-10
Importance/Performance Matrix
U.D. HART. DeMicco 2009
(B) Performance
Hi
(A)
Importance
to customer
Low
Low
Hi
Know what your customer are worth: Loyalty
Many business spend about 75 percent of their marketing budget in a search for
new customers. It can be costly:
 It costs substantially more to win a new customer than it does to keep a
current customer
 The longer a business keeps a customer, the more profitable that customer is
for the business
 As a customer’s lifetime value grows, the more dependent they become on a
company, and the less susceptible they are to other companies’ offers of lower
prices
 As customers become more loyal, they can become advocates for the
business, encouraging friends and acquaintances to also buy there.
You need to understand the lifetime value of your customers, and communicate
this throughout the enterprise.
THREE CRUCIAL QUESTIONS
1. Optimize sale: How do I get more profit per sale?
2. Optimize customer: How do I get more sales per customer?
3. Optimize business: How do I get more customer?
Customer Value Calculation
The following value formula worksheet can help you to calculate the average
lifetime of each customer.
1. Working from annual accounts, take the total amount of
revenue and divide it by the number of current customers.
2. Calculate the average length of a relationship.
3. Total the number of referrals that became customers for the
year, and divide by your total number of customers. Add one
(representing the original customer).
4. Multiply the average spent per customer per annum, and any
yearly dues, by the average length of a relationship.
5. Multiply the number of referrals by the total in box four above.
This total is the average value of each relationship.
Adopted form G. Roberts_Phelps
Listening to Guests and Measuring Excellence in Dining Experience
Web Survey at Vita Nova——A Case Study
UD/DAYS INN CHINA TRAINING
HART – DEMICCO 2009
Mini Case TQM-CQI
Tools for Collecting Data
Class 4
Ensuring Consistent Service Quality- Introduce Process
Engineering and the Service Blueprint
Introduce TQM and CQI.
Zero defects (Ritz Carlton model)
Process control- service blue printing
Pareto’s law and how the 80/20 rule applies to service quality
Tools to ensure quality-e.g fishbone diagrams, cause and effect tools,
charting.
Tools for Continuous-Improvement Process
PROCESS STEP
1. Target an Opportunity for Improvement
1. Identify improvement ideas
2.Write problem statements
3.Develop selection criteria
4.Select an area for improvement
2. Analyze the Area Selected for Improvement
1.Establish baseline measurements
2.Analyze processes
3.Identify potential causes
4.Determine the root cause(s)
3.Develop and Implement Improvements
1.Identify potential solutions
2.Select the best solution(s)
3.Conduct a trial test
4.Develop an action plan for implementation
4.Evaluate Improvements
TOOLS USED
Guest Feedback
Business Plan Goals
Staff Feedback
Brainstorming
Brainstorming
Selection Matrix
Priority Determination Chart
Bar, Pie Charts
Line Graphs
Process Flow Chart
Cause-and-Effect Diagram
Fish-bone
Brainstorming
Selection Matrix
Priority Determination Chart
Action Plan Worksheet
Guest Satisfaction and Cast Excellence
Cast
Excellence
Guest
Return
Satisfaction
Intention
Cast attitudes do impact Guest Satisfaction,
which in turn impact return intention.
Six Sigma
The example of Starwood Hotels, which owns and operates such top hotel brands as
Westin, Sheraton, and several luxury and resort hotels, shows how Six Sigma is being
ingrained into management. At Starwood, which has launched the first Six Sigma
program in the hospitality industry, managers at all levels are held accountable for a
variety of measures:
Customer satisfaction
Key process performance
Scorecard metrics on how the business is running
Profit-and-loss statements
Employee attitude
These measures provide feedback on the performance of the hotels and regions.
At regular meetings, managers review key measures within their hotels and select new Six
Sigma projects that target those measures that have fallen off. If, say, guests complaints
have risen, the hotel management will charter a Six Sigma team to find out why and to
take corrective action.
The Quality Grid
The Winners
Disney Theme Parks
Many Asian Hotels
Honda, Apple
Some Asian Airlines
Four Seasons, Ritz Carlton
McDonald’s Marriott
Hotels
Excellent
Cable TV
Companies
Product
Quality
Repair departments
of many auto
dealers
IBM
Domino’s Pizza
Poor
Poor
Service Quality
Excellent
TQM—CQI Hotel Examples
Example for a Continuous Improvement of Process
1. Stocking housekeeping carts
15/15 people stocking 15 carts
Versus 1/15: 1 person stocking 15 carts
1/15 = 1-2 hours
15/15= 5 hours (15*20 minutes for each cart)
2. Guestroom Cleaning
1/13:
1 housekeeping room attendant cleaning
13 rooms/shift
3/45:
3 room attendant cleaning
45 rooms/shift
Cycle time of new process reduced by 50% (rooms ready for sale by
front desk in 50 percent less time).
UD/DAYS INN China
HART DeMicco
Steps for TQM—CSI
Identify an Opportunity for Process Improvement
Identify what product or service need to be improved
Steps:
1. Identify process improvement ideas.
2. Write the problem statement.
3. Developing the selection criteria.
4. Select the area for improvement that your TQM—CQI team
will work on.
YOUR IDEAL CUSTOMER
Vilfredo Pareto, keenly interested in the political and social implications of
economics, observed that the majority of Italy’s real estate was
concentrated in the hands of a minority. Specifically, 80 percent of the real
estate was owned by 20 percent of the population. Over the years
reflections of Professor Pareto’s observation began showing up in many
different disciplines and applications, and it eventually came to be known
as Pareto’s Law, or the 80/20 rule.
You can the 80/20 rule operating in virtually any and every realm of human
activity. Look through your emails from last week. You’ll probably find that
80 percent of them went to 20 percent of the people in your address
book. Look in your closet or your kitchen cupboards. You’ll find that you
wear about the same 20 percent of your cookware, about 80 percent of the
time.
If we focused more of our time on the 20 percent and less time on
the other 80 percent? What would happen? Let’s take a look at the
number s.
The 20-percenters currently generate 80 percent of our business. That means
they’re generating four times as much business as the 80-percenters. But hang
on, it gets better: Not only are they generating four times as much revenue as
a whole, but there are also four times fewer of them. That means that each of
our 20-percenters is generating sixteen times as much revenue as an individual
80-percenter.
Now, what if all your customers were like those 20-percenters? What if your
could replace your current 80-percenters with a whole new crop of 20percenter-type customers? You’d have something like sixteen times your
current revenues.
We can take this one step further, too, because even though your current
20-percenters are the best customers your have right now, they may not
be your ideal customers. Can you imagine how powerful it would be if
you identified exactly who your ideal customer was, and then found
simple, practical ways to fill your business with exactly that kind of
customer?
Class 5
Conclusions & Integrating What was Learned
Case study Ritz Carlton.
Developing a quality audit and a blue print for the service
process for a Day’s Inn department.
How to evaluate using bench marks.
CHINA UD/DAYS INN
CASE STUDY RITZ CARLTON
Applying Total Quality Management TQM
Ritz-Carlton is very clear about their mission:“Ladies and Gentlemen Serving
Ladies and Gentlemen.” In a survey conducted by J. D. Powers and Associates,
96% of employees surveyed were able to identify the mission of the company
successfully. Once the vision is clarified and shared, the leader can focus on serving
and being responsive to the needs to the people. The greatest leaders have
motivated other by energizing those around them with their vision.
Popularity is not leadership: Results are what define effectively leaders. Their
followers do the right thing. This is essential in the hospitality industry where
customers purchase goods and services on promise.
Leaders are highly visible: They set the example. Jonathan Tisch, chairman and
CEO of Loew’s Hotel and Resorts, requires that he and his top management spend
time each year working in all of the hourly positions in the company.
LEADERSHIP=FOCUS
The “Strategic Plan” of Ritz Carlton Hotel?
“Customer Focus”!
(H. Schulze)
INDUSTRY INSIGHTS
A Leadership Eye for Detail
By Stan Bromley
Stan Bromley is Regional Vice President and
General Manager, The Four Seasons Hotel
Company.
My job is to make sure that the food is hot..not
cold, service is friendly…not rude, rooms are
clean…not dirty, the public areas are
painted…not chipped, response to any request is
fast…not slow. My job is to ensure that our
employees and guests believe we are caring and
sincere. That’s it. That’s what I do. I’ am a hotel
General Manager.
STARBUCKS: Ideas to Sip On
Retail is detail. For that matter, all business is detail.
• Missed details produce dissatisfied customers who go elsewhere.
• A small detail is sometimes the difference between success and
failure. Something as simple as a 7-cent value helped Starbucks
become a publicly traded company.
• Important details live in both that which is seen and that which is
unseen by the customer.
• There really is no way to hide poor quality.
• Store environment, product quality, training, the development of a
playful culture, and a social conscience all matter.
• Details affect the emotional connection (the “felt sense”) that others have with you.
• Ask customers what details they notice about your business.
Whiteley’s Seven Fundamental Imperatives
for a Customer-Focused Company
1. Create a customer-keeping vision.
A clear vision that is focused on what
the customer wants and needs.
Must be held from CEO through the
front line service providers.