Identifying Service Management Excellence †MyAssignmenthelp.com

Question: Discuss about the Identifying Service Management Excellence. Answer: Excellence in service delivery is not just about a positive and friendly front desk team. The clients perspective is influenced by the organizations customer orientation, standards and performance measures. Johnstone and Clark (2008) maintained that service excellence is primarily not concerned with exceeding the clients expectations but with delivering services as promised while tackling any obstacles and problems that arise in the process of service delivery.Maintaining a service excellence culture will ultimately help any organization reduce customer complaints, improve team performance and facilitate a fulfilling yet dynamic working environment.Service management can be described as the practices or activities aimed at designing, delivering, monitoring, and evaluating the service in an attempt to improve the service continuously. Customers and clients expect delivery of high-quality services that are secure, reliable, accurate, timely and easy to access (Fitzsimmons, Fitzsimmons, and Bordoloi, 2008).An effective framework contributes towards delivering value for money, promote stakeholders confidence, facilitate high customer satisfaction, and even ensure the achievement of the organizations goals and objectives.The core key drivers of any service delivery organization are low cost, consistency, and speed of delivery. McDonalds is a multi-national foodservice retailer with over 4 million employees located in over 100 countries. Restaurants under the Mcdonalds brand are operated and owned by local entrepreneurs through franchising. The restaurant chain operates under an organizational structure focused around market segments with similarities. This report aims to identify and discuss examples of practices in McDonalds that contribute towards servicemanagement excellence. Design of the Service and the Service Delivery Process The first step in servicemanagement excellence is to manage the design and service delivery process. It is important to determine how the service is going to be delivered, processes that will be used to deliver the service, workforce, and equipment.For excellence in the design and delivery of these services, it is necessary for an organization to have an effective servicemanagement framework in place. It is for this reason that McDonalds took time to invest in a workflow and processes that fit into their service delivery objectives.McDonalds restaurants have a comprehensive and standardized service design with clearly defined responsibilities, roles, and procedures under an efficient equipment and facility layout. This service delivery system aims to be customer-oriented, maintain operational efficiency, facilitate a service excellence culture, and produce predictable outcomes that assist in thedelivery ofhigh-quality services in a competitive market. The design of McDonalds service process portrays the restaurants service management excellence. With its large customer base, McDonalds acknowledges the importance of face-to-face customer interactions in their restaurants and drive-thrus.To achieve customer satisfaction, the restaurant has proven to be flexible and efficient through its customized services. Services by MacDonalds are designed to provide operational efficiency and customer satisfaction. To achieve operational efficiency and maintain a competitive advantage, McDonalds provides low-cost services to its customers while aligning its process to enhance customer satisfaction(Slack, Chambers and Johnston, 2010). To cut costs and reduce wastage, the restaurant utilizes a Just In Time (JIT) inventory system (Stevenson and Hojati, 2007). Under this system, food is preparedonly after a customer has placed an order. With a well-trained and dedicated workforce, McDonalds ensure a fast process through defined roles and responsibil ities. There are employees solely responsible for taking orders, another to prepare the order and an employee to package the order ready for delivery to the customer. Additionally, McDonalds supports and invests in initiatives to adapt its services and products to different locales to ensure theexpansion of its global brand. To achieve a customer-oriented service design that focuses on the clients needs and feedback, the fast food giant ensures their services are easily accessible through drive-thrus, walk-in restaurants, and an online delivery service system. In addition to the readily available services, the process is designed toprovide a satisfactory waiting time. Thisis achieved by minimising idle time at cash registers, fast moving queues, and efficient order preparation. McDonalds also recognizes the importance of facilitating a positive outcome in customer satisfaction. Customers either get what they need or the restaurant staff helps them understand why they cannot get the service. Furthermore, through their training programs, the retailer ensures its employees maintain professionalism. Thisis achieved through employees who are polite, respectful to the customers they serve, and knowledgeable in their respective roles and responsibilities.All these service delivery process initiative contribute towards cultivating a service management excellence culture in MacDonalds. Service Quality The ability to receive high-quality standardized service in any of the over 36000 MacDonalds outlets is among the restaurants main values in maintaining customer confidence. MacDonalds has undertaken broad initiatives to ensure consistency in the quality of its service all over the world. To ensure service quality in the franchise, the company requires all prospective franchisees to be well versed in their procedures and standards. The franchisees are exposed to a strict interview and training program at Hamburger University to make sure they are capable of providing the standardized services consistently. MacDonalds then selects only the capable and highly motivated applicants. Furthermore, all service delivery equipment can only be purchased from suppliers that the company has directly authorized. In addition to standardizing its operations, MacDonalds ensure service quality by training its employees on client service skills. The customer experience often determines the quality of services. To facilitate service quality, MacDonalds trains its employees on how to effectively interact with the employees. By maintainingits service quality, the company gives us an example of service management excellence. Managing People In the service industry, it is important to ensure the workforce is happy and dedicated to the organization. Satisfied employees will provide better customer experience and hence improve the organizations performance (Lazaroiu, 2015). Knowledgeable and happy employees mean satisfied and happy customers.This largely contributes towards attaining service excellence. To achieve their growth objective, McDonalds has been pushing for a better employee experience in a bid to improve its customer service delivery. Customer satisfaction has greatly contributed to McDonalds recent growth in sales. To achieve customer satisfaction, the fast food giant enforced initiatives to improve employeeexperience by providing better pay and ensuring better employee training and practices. Better pay Although emotional and intellectual satisfaction is important for employee satisfaction, it is crucial to recognize that money is the main reason that people work. An organization should strategically determine employee compensation in a cost-effective manner that will benefit both the organization and the employee (Landers and Callan, 2011). Among the ways that an organization can maintain a loyal and happy workforce dedicated to service, excellence is by increasing their wages. A better employee experience will be achieved through better retention and productivity as a result of happy employees who have a reason to stay and are highly motivated (Nohria, Groysberg and Lee, 2008). McDonalds has shown dedication to increase wages at astore owned by the company and to lift hourly pay. In addition to increasingwages, the retailer gave its employees the chance to go on paid vacations. The result of this service management initiative was a declining turnover rate. This meant that employee s were more loyal and happier to work at McDonalds.The improved human capital and better customer experience represent service management excellence achieved by McDonalds. Better employee training and practices Apart from loyalty and happiness, an organization can improve its performance by strengthening employee training and improving its processes. As customer expectations, market conditions and business objectives change, processes and staff need to evolve in accordance with the changes (Kotey and Folker, 2007). The training seeks to identify strengths and solve weaknesses from the employee and customers perspective.Thiswill, in turn, help the organization the quest to achieve its objectives. Over the past years, McDonalds has embarked on improving both its processes and employee training. The retailer introduced a drive-thru order approach dubbed ask, ask, tell to ensure customers received the correct order. This was an initiative as a result of complaints by customers against their order accuracy. The result was a faster delivery system with fewer frustrated and dissatisfied customers. In addition to process improvement, McDonalds went on to empower its employees with the necessary too ls to make the most of every employee-customer interaction. Both of these strategies portrayed McDonalds service management excellence. Customer Relationship Marketing According to Oly Ndubisi (2007), customer relationship marketing (CRM) is a process through which marketing activities and strategies build brand value, customer loyalty, and client relationships. When it comes to achieving service excellencein today's competitive and technological market, the end user of the service is no longer an afterthought. The relationship between an organization and its clients has evolved thanks to increased competition, social networks and changes in the customers buying power. Service has to be value-adding and proactive.CRM, therefore, helps businesses establish long-term relationships with their clients and customers while achieving their business goals and objectives (Leverin and Liljander, 2006). In relation to CRM, service management excellence is evident in MacDonalds through their brand loyalty. As a leading fast-food brand, the company has managed to win the hearts of a lot of its customers. MacDonalds main strategy is to retain their customers and build a long-term relationship as emphasized by their Im loving it slogan. The fast-food restaurant chain promises its customersvalue for their money and quality services.To maintain its customer relationships, the company provides the same quality of services across all its outlets.Moreover, MacDonalds adapts its menus to the local cultural and consumer trends (Kiddon and Light, 2009). The restaurant has menus tailored for kids, low-cost meals, and even for customers with health and diet concerns. Regarding geographic regions, MacDonalds puts into consideration the prevailing culture such as scrapping pork items from menus in Muslim nations and beef in India outlets. With the advent of the internet and social media, a large nu mber of consumers expect to have access information and services of a company easily. Such consumers can influence servicedelivery of a company through posts, blogs, and reviews. To enhance their customer relationship marketing, MacDonalds applies a user engagement approach for their e-services. This strategy ensures that customers of MacDonalds are aware of the online services available and using them effectively. Demand and Capacity Management Capacity management is the process of setting effective operational capacityto respond to demand promptly. The management must determine the kind of capacity needed, quantity needed and when it is needed (Jammernegg and Reiner, 2007). With the fluctuating demandcharacterizing the fast food service industry, MacDonalds must put effective capacity planning and management measures.This is because a mismatch between the demand from customers and the capacity of an organization will result in either unfulfilled customers or under-utilized resources (Gmach et al., 2007). MacDonalds has demonstrated a commitment to increase its capacity by making initiatives to improve their operational techniques, increase their workforce, acquire new equipment and establish new production facilities. This growth has been driven by the ever-growing customer base and demand for new product varieties. In its demand and capacity management initiative, the company uses a lead strategy by increasing its production capacity in anticipation of increased demand. This demonstrates service management excellence in the MacDonalds food chain. Service Communications MacDonalds uses a variety of platforms to communicate its products and services to their customer base and clients.Their service communication and promotional initiatives concentrate on customer experience, convenience, nutrition, menu choices, food taste, quality, and value for money. This has resulted in various viral marketing campaigns among their target audiences. Due to their strong international presence, the fast food restaurant chain pays keen attention to their service communication (Bolan and Williams, 2008). The information they provide is tailored to meet the consumer preferences of different clients all over the world. As noted earlier,MacDonalds user engagement approach for their e-services also helps in the companys service communication by making their customers aware of the online services available and how to use them effectively. In recent years, MacDonalds has been active in their social media service communication presence.Information on their services, products and recent improvements and innovations is easily accessible through their website and social media accounts.With millions of likes and followers in their facebook and twitter accounts respectively, MacDonalds demonstrates its service management excellence in communicating their services. Performance Measurement Raith (2008) defines performance measurement a process of accumulating and utilizing data related to an organization or individuals in the organization.Organizations enforce performance measure to track their progress and ensure they meet the pre-set goals and objectives (Merchant and Van der Stede, 2007). The main areas of performance measurement are administrative, marketing and sales, suppliers, research and development, human resources, and most importantly customers. MacDonalds specifically uses efficiency measures, output or workload measures, and outcome measures to measure the organizations general performance.Output and efficiency in MacDonalds are measured through analysis, management, and improvement of the supply chain. Measuring of the supply chain requires MacDonalds to monitor its supply chain logistics. Effectiveness measurementor outcome measures include point-of-sale information collection and tracking online consumer habits. At MacDonalds, the manager incharge of c ustomer relations collects information on customer satisfaction through activities and processes such as a client feedback system. The manager is then given the responsibility to take measures to improve operational performance and enhance a positive customer satisfaction feedback. After measuring the performance of their services, the final step in MacDonalds service delivery process is monitoring and evaluation. All systems must be running smoothly and in good quality. MacDonalds monitors its services based on the service delivery time, speed and knowledgeability when dealing with complaints, theaccuracy of drive-thru delivery service, and the quality of products and services (Stem et al., 2005). MacDonalds, therefore, provides us with an ideal example of service management excellence. In conclusion,to achieve service management excellence through a low-cost, consistent and speedy system, we must first design theserequirements into the service delivery system. For a company to poses service management excellence, it must enhance relevant initiatives to ensure high-quality services, a happy workforce, capacity management, customer-focused marketing and communication services and finally have an effective monitoring and evaluation framework to ensure its objectives are achieved. References Babakus, E., Yavas, U., Karatepe, O.M. and Avci, T., 2003. 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