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 All 14 stores o Primary consideration was the achievement of sustained customer acceptance and o Labor intensive service companies should provide the best test of a services success financial success sustainability model o Seven common core values Good isn t good enough Primary tool of excellence Invent rather than imitate Excellence Innovation Joy Teamwork Respect Integrity Social profit o Three challenges in sustaining service success Operating effectively while growing rapidly Ex CompUSA o Did poorly while expanding and had to revamp Service companies create value through performance Ex Value Jet o Service companies sell a promise o Strengthening customers confidence isn t about making promises its about keeping them o When a company loses customer confidence it loses everything which is what happened to ValuJet after the crash that killed 110 ppl in the everglades Operating effectively while competing on price Price is part of value but is not equivalent Value is the benefits received for the burdens experienced The tougher price competition the more important quality of service is Retaining the initial entrepreneurial spirit of the younger smaller company within Entrepreneurship versus maturity o Sustaining success in Services o Holiday inn example Chainsaw commercial Values Driven Leadership Strategic focus Executional excellence Control of destiny Trust based relationship Investment in employment success Acting small Brand cultivation Generosity Container Store o Examples Guy with cane Christmas shopping dissatisfied with service at all other stores goes to container store and one employee helps him get his item from the back while the customer waits two other employees ask him if he needs help Woman leaves her packages in parking lot after loading kids in car when she comes back they are no longer there Associate remembers her and gives her her entire order again free of charge telling her that her day will get better Women is trying to get her husband his wallet he is in Houston stranded at a rental car counter because he forgot it back home No one at the airport is willing to carry the wallet to Houston she spots a container store employee and asks her to carry it to Houston with her and says she trusts her because she works there Becoming big was never the dream creating the perfect retail store in which employees would earnestly enthusiastically and creatively work together to serve customers and improve operations and products was always the dream Our business is helping customers garette boone owner The CEO himself comes to each and every store and has meals with employees to get their input He sends hand written notes out to appreciate employees o Business o Values Driven Leaders o Gumby Mascot We have to be Gumby like flexible and work as a team o Part time employees prime timers o 3 criteria for their products Visibility accessibility and versatility o Solution selling o Slow expansion Executional Excellence over growth Will wait years to enter a market that they wish too Employment slows expansion they want the right employees o Control their own destiny Private company Don t want to go public one of their key turning points was NOT giving in to all the people who approached them with offers Control distribution through its own distribution center Bergstrom Hotels o Three full service hotels in northern Wisconsin o Hotels have built strong relationships with employees customers and their community through attention to detail caring and a big corporate heart o Opportunity for improvement program OFI o Flexibility letting little girl bring her bunny into the hotel even though the hotel doesn t allow pets Charles Schwab Corporation Chick fil A o Securities brokerage and investment company o Energy for continuous improvement technological leadership and profitable growth o Spirit of innovation is deep religion at Charles schwab o Demonstrates integrity one of 7 core values Their vision is to provide customers with the most useful and ethical financial services in the world Anyone who provides a service should be noncommissioned to remove conflict of interest o Control of Destiny Company s strong efforts to hire new employees whose values fit its own Refusal to pay sales commission Internal communication investments o One of the worlds best quick service restaurants o Unwavering commitment to excellent food respectful customer service store operator success and teamwork o Demonstrates Excellence one of the 7 core values Chick fil a products must demonstrate significant taste seniority Every decision on what is on the menu either adds strength to our brand or dilutes it o Leading with Values Hall operator of some Texas Chickfilas Looks for common ground between his goals and prospective employees Lead by example o Vision and Values Day takes employees around to demonstrate the visions and values of Chik Fil A o Hiring Operators Operators invest 5 000 of their own money Rigorous screening process They get to split the profit of their store 50 50 with chik fil a Sharing Profits o Controlling Destiny Customer Research Inc Not a public company acting private is important to success They are closed Sundays give away millions of dollars in scholarships etc o Marketing research company o Team service delivery innovative practice competence and emphasis on continued improvement o Demonstrates Joy one of 7 core values The quality of work we do is a tremendous source of pride Pet Day Indoor gold tournament each winter Good News Days Third Thursday of each month o Hiring They look for people who have the potential to move at least two steps up from the position they are hiring the candidates also undergo interviews done by line personnel o Control Destiny Private company They enjoy not having to answer to anyone on the outside Dana Commercial Credit o Provides lease financing service with integrity quality and creativity o Invests in its peoples success o Guided by values in dealing with difficult issues o Everyone is a manager of their 25 square feet o Controlling growth It is acceptable not to do business it is unacceptable to do bad business Dial A Mattress o Sells bedding over the telephone 24 7 o Delivers orders as soon as customers want them within two hours if desired o Dial 1800 mattres and leave the last s off for savings o