9 11 2014 DSS Chapter 1 Discovering the Soul of Service o By Leonard Barry What is the service industry o Restaurants hotels o Banks o Department stores o Airlines What is success o The Container Store Customers Our success is based on our customers Employees You need to be the company that people want to work for You need to recruit them You need to go through the training process Support systems They have employees that go in and stock the shelves when no one is there Support the employees and the job as well as the customers o Wallet story Woman sitting there in the airport she notices a lady in the container store she asks this lady to bring her husbands wallet to him and the container lady says why me And she said she figure she would be honesty and trustworthy because of their well known customer service o 40 minutes on the phone trying to figure out how to put the container together Success o Obtaining vs Sustaining Keys to sustaining Growth Complexity o The more complex the labor the more of a possibility that something may go wrong o Adding more and more workers to the business will make it more complex o With We have the ability to lose that great customers service we were providing o The more we grow the bigger the possibility it is to People Finances fail Three challenges in sustaining service success o 1 Operating effectively while growing We have to operate and then grow at the same time Example Being able to expand your menu o 2 Price competition Operating effectively when competing on price o 3 Retaining the spirit roots Retaining the initial entrepreneurial spirit of the younger smaller company Execution vs Growth o CompUSA Rapid growth outstripped their infrastructure Example putting the Olympics here in Tallahassee would not work we do not have the infrastructure we would be way outstripped Stopped expanded and began building infrastructure New CEO o ValuJet Flight 592 Airplane went down in Miami in the Everglades there was no way to get to the plane because there was no road to it so everyone died Valujet is renamed to Air Tran Airways ValuJet Issues Lax controls o Overwhelmed overwork and we ve hired a bunch of other people to help out Weak culture o There was not a strong sense of culture or leadership Focus on Only o Not wise to do Outsourcing o Maintenance o Training Rapid Growth Issues o Problems with Original SOP Standard operating procedures o Selecting Orienting Training and Educating o Internal Communications They may be faulty o Reinforcing Vision and Culture o Deliver Service Execution vs Price o Price Cutting Value vs Price o Differentiation Variety in a product Where can I get the cheapest product looking for the cheapest She compared Mudd jeans from Kohl s to True Religion jeans o The value of something if the benefits you get the burden o Do they mean the same thing NO Value benefits burden o Going to Starbucks Benefits you get the yummy coffee that you want surrounding are nice drive through is convenient Burden how expensive it is the lines are extremely long Entrepreneurship vs Maturity o Smaller Newer Personal Energy Risks o ID Better Ways o Adding Locations Employees o Rules Rules Rules Once we start to get big we see more rules by corporate members o Turfism vs Teamwork Turfism your own turf your own area Very apparent in the restaurant industry between the FOH and BOH Individual Employee o Discretionary Effort Put systems in place so that when employees show up they give you the maximum effort as opposed to the minimum effort Every employer has their minimum discretionary effort so that they employee does not get fired Maximum discretionary effort will create raving fans 110 effort Deals with energy levels that employees contain o Energy Maximum vs Minimum Employees o Recruit the best o Hire the best o Orient My be the best but not really the best for the company 9 18 2014 Minimum of 2 day orientation Hand on training and breakdown o Train o Educate Certifications Value driven leadership o Central driver of excellence o Casual root to 1 Strategic focus center 2 Control of destiny 3 Executional excellence 4 Control of destiny 5 Trust based relationships 6 Investment in employee success 7 Acting small 8 Brand cultivation 9 Generosity Drew Nieportent Tribecca Grill o Restaurant owner who provides excellence DSS CHAPTER 2 Setting your company apart o Midwest express Midwest Frontier The suit lost luggage and as given a suit by the flight attendant The kid child was flying alone and was watched by the airline worker and the mother was very happy The dog guest was worried about her dog under the baggage claim Cookies baked cookies on a flight due to layover now at every flight at the end you get cookies and water o What distinguished Midwest from other competitors A strong and clear set of values that include service excellence mutual respect honesty and integrity Special employees o A clear set of values Service excellence Mutual respect Honesty Integrity Teaching values o Modeling Living by your values o Spreading Spread your values o Reinfluencing o Top down Core values benefit all company stakeholders o Customers o Employees o Vendors o Partners o Communities nations 7 commonly held core values o Excellence o Innovation o Joy o Teamwork o Respect o Integrity o Social Profit 9 23 2014 Innovation the primary tool of excellence o Invent versus imitate o New ways to create value o Get better use employees o What are two levels of innovation TEST QUESTION Two levels of Innovation 1 Strategic Doing the right things o Example to study show up to class 2 Operational Doing things right o Example actually study pay attention show up on time o Miller SQA Simple Quick Affordable Process not Product What does SQA stand for Miller SQA deals with selling office furniture Joy o Investing in Quality of life Customers o Wine pairing Employees Other stakeholders SAS Software How do they invest in the quality of life o They have a car wash on campus o Gym facility o Bring your kids Custom Research Day Pet Day o Bring your pet to work Indoor Golf Tournament Good News Days o Discuss good news going on in your life Teamwork o Opposite of teamwork is turfism o Recruit team players o Model teamwork o Establish high performance standards o Celebrate group effort Nurturing Teamwork o Create a Sense of Belonging Information sharing Share the good the bad and the ugly have meetings Company gatherings Job rotation Holiday parties bringing employees together Rotating