HFT 3240 Discovering the Soul of Service Chapters 7 12 Identify the principal business of the 14 sample companies profiled in the Soul of Service Ukrop grocery stroe St Paul Saints baseball team The Container store retail Chick fil A Fast food Dial A Mattress bedding Enterprise car rental USAA insurance and financial services Special Expeditions expedition travel Miller SQA office furniture Custom Research Inc Marketing research Dana Commercial Credit leasing Charles Schwab securities brokerage and financial services Bergstrom Hotels hotels Midwest Express Airlines airlines CHAPTER 7 How do the St Paul Saints provide high value to their fans Reasonable prices for parking tickets concessions merchandise and fun What role does trust play in building relationships A relationship exists when one assesses specific experience not in isolation but as a progression of past experiences likely to continue into the future Trust is needed to build a relationship What role does service competence and fairness play in building trust Competence you risk buying things from companies so you want them to be competent so that you can trust their product o Need to have good customer service o You build trust in the company to keep its promises Fairness Individual s perception of the degree of justice in a firm s behavior o If you believe a company is fair you can trust it more How is company fairness demonstrated in the text Midwest Express o Went public in 1995 had no obligation to reserve and grant one million of stock to employees based on seniority but it did Understand the effects of employee turnover and service quality High employee turnover drives a stake in the companies relationship making efforts Excessive turnover customers don t feel the need to make relationships with employees Lots of employees leaving the company discourage investment High turnover companies don t feel the need to invest a lot of time into employees Paradox b c the people are unskilled so they quit or are fired Understand the importance of company family gatherings honor fairness and fun Family gatherings Family honor Reinforce company culture values and sense of family High trust companies expect their employees to not cheat like in a family Built on trust Family fairness No double standards in the workplace everyone is treated equally Paying for performance The value of the individual is rewarded not their specific job function Family fun Fun conveys caring Only companies that care would invest in employees having fun on the job What is emotional ownership of the company Highest level of relationship commitment Extension and combination of cooperation enhancement identity and advocacy Give examples of UKROP s friendship rules or gestures Ice slid from the roof of UKrop to a customers car and damaged it Ukrop wasn t liable for the damage but they paid for it anyway Ukrop normally doesn t deliver groceries but when a customer asked for food trays to be delivered to a neighbor that had just had a death in the family they did it CHAPTER 8 Know the Cora Griffith story Waitress at the Orchard Caf for 14 years Very happy with her job does not want to work at 4 star restaurant instead Company invested in her employee success How did Midwest Airlines and UKROP train its employees 2 day orientation for 25 30 new employees every three weeks Simulates a flight experience Different course modules each on a different value Midwest Airlines Ukrop Corporate university Required core courses and elective courses through its Center for Retail Food Studies Curriculum includes courses on food strategies bagging techniques Most courses taught by Ukrop executives How do the successful companies invest in employee success Lots of training and orientation Investment recognizes the infinite nature of personal development CHAPTER 9 What advantage does a big company enjoy when acting small Provide fast seamless flexible and personal service Custom fitting the service to the customer What is a company within a company Having different teams to handle different studies and clients exclusively Nine teams 5 9 people per team Teams are like mini companies within CRI Makes the company smaller and creates a personalized experience for clients CHAPTER 10 What is the importance of having a strong brand Strong brands increase customers trust of the invisible Customers can better visualize and understand the service Reduces customers perceived risk about the product or service The surrogate for when a company does not offer a physical product to show for itself CHAPTER 11 Know the generosity offered by the profiled companies Ukrop Chick fil a USAA St Paul Saints 10 of pretax profits donated to community Large United Way contributor Reward employee s big days 1930 s 1940 s 10 discount given to charity organizations for groceries Awards 1 000 scholarshipps to select students working part time in restaurants Pays the tuition for its employees to go to college One undergrad degree and one grad degree per employee Helps non profit agencies with work Give fans something extra at games Seat cushion giveaways t shirt giveaways Special Expeditions Donated its 80 passenger Polaris MS and crew to PBS for a 10 day expedition to raise funds in 1998 How does Lens Crafters contribute to needy customers Give the gift of sight Provide free optical services and glasses to needy people in North American and around the world Give the gift of sight to one million people by 2003 Collect clean repair used eyeglasses for people in developing countries Hometown day Lens Crafters stores in North America donate eye exams and new glasses to needy people What is strategic generosity Caring for the person on the dangerous road but also caring about the results beyond the moment Generosity must be purposeful channeled and integrated into a company s strategy Being extraordinarily generous AND being effectively generous Invest in the overall purpose not time money etc What is Charles Schwab ASSET program Assisting Society through Schwab Employee Teamwork and Service Established in 1995 Facilitates employee volunteerism by linking employee interests community needs and company community action priorities in areas such as K 12 healthcare AIDS literacy counseling CHAPTER 12 Understand and read carefully the lessons from the world class service companies The more labor intensive the service the greater the challenge of success sustainability Humane organizational values sustain
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