•-EPA
United States
Environmental Protection
Agency
Administration And
Resources Management
(PM-211D)
EPA 220-B-92--01
March 1992
Innovative management
Strategies 220392010
The Customer Strategy
LEADERSHIP
Printed on Recvcled Paner
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220B92010
THE CUSTOMER STRflTEGV
MflRCH 1992
EPA Headquarters Library
Information Management and Services Division
U.S. Environmental Protection Agency
Room M2904 PM-211A
401 M Street, SW.
Washington, DC 20460
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TABLE OF CONTENTS
I. SERVICE TO THE CITIZEN 1
II. GETTING TO KNOW THE CUSTOMER 6
///. THE INTERNAL CUSTOMER 11
IV. DEVELOPING A CUSTOMER SERVICE PLAN 19
V. ROLE OF THE EMPLOYEE IN CUSTOMER SERVICE 27
VI. SELECTED LIBRARY RESOURCES ON TOTAL CUSTOMER SERVICE 33
MANAGEMENT BIBLIOGRAPHY COLLECTION 35
'your nety great idea is in the CEJS^ Headquarters Library
EPA Headquarters Library (PM211 A) WSM2904 202-260-5922
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INTRODUCTION
THE CUSTOMER STRATEGY
Customer service is a management strategy that focuses on
understanding customer needs and meeting customer expectations. It
builds on the concept that customer satisfaction is a vital means
of reaching organizational goals. Citizens are primary customers
of government organizations, but internal customers are also
important to effective management.
The Customer Strategy supports EPA's efforts to provide
quality management and be responsive to public concerns about
environmental protection. This review of customer service
concepts, benefits and examples provides resource material to begin
exploring how to achieve customer satisfaction. Service to the
Citizen reviews work currently being done in the public sector.
Getting to Know the Customer emphasizes a first step in quality
customer service: knowing what your customer wants. The Internal
Customer recognizes that there are customers in all phases of the
process, both within and outside the organization. Developing a
Customer Service Plan discusses methods to improve customer
service, and provides some examples from the private sector. The
Role of the Employee in Customer Service points out that everyone
is involved in developing quality customer service.
The customer Strategy was compiled using ABI/INFORM,
MANAGEMENT CONTENTS, PUBLIC AFFAIRS INFORMATION SERVICE, PSYCH
ABSTRACTS, and the FEDERAL QUALITY INSTITUTE subfile of the
NATIONAL TECHNICAL INFORMATION SERVICE.
The Customer Strategy ends with selected resources available
through the EPA Library Network. Copies of the articles cited in
this bibliography may be requested from your local EPA Library.
For further assistance, contact Cathy Flanagan, Reference Librarian
(contractor), in the Headquarters Library at 260-5921.
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/. SERVICE TO THE CITIZEN
Quality in Government: Capitol Improvements
Penzer, Erika
Incentive v!65n4 PP: 45-47, 97 Apr 1991
Washington, DC's Office of Personnel Management (OPM) oversees all
human resources functions of the US' 3 million federal employees.
OPM director Constance Berry Newman believes that government
workers need to understand why they do what they do and who
benefits from their work. Newman spends many hours with OPM
managers discussing the concept of serving customers, and she meets
weekly with her agency's 20 area managers to discuss what she
considers the 11 most critical issues. She then encourages each
team of managers to hold its own meeting to brief staff members on
the week's discussions, talk about the 11 issues, and keep
communication channels open. One of Newman's highest priorities is
training first-level managers in the fundamentals of quality,
customer service, and coaching, leading, and facilitating skills
when they first are promoted to management. She also is working to
revise the performance appraisal system so that workers and
managers devise measurements together and work is judged fairly.
(ABI/INFORM)
Customer Service in Public Administration
Wagenheim, George D.; Reurink, John H.
Public Administration Review v51n3 PP: 2.63-270 May/Jun 1991
Customer service is a management strategy that focuses on meeting
customer expectations. It is based on the concept that the
organization will reach its goals through satisfaction of the
customer. Customer service management will provide the organizing
and operating strategy for the 1990s. By focusing on the needs of
both external and internal customers, the organization develops
means and mechanisms that benefit agency personnel as well as the
people they serve in the process. Although customers' service
needs are situation-specific, they can be generalized. The
following list of needs is in order of importance: 1. information
and communication, 2. responsiveness, 3. problem resolution, 4. on-
time, reliable, consistent service delivery, 5. competence of
personnel, 6. accuracy, and 7. courteous and friendly service. The
value added of a customer-service perspective as an organizational
driver and evaluator is that the focus in on what the total
organization needs to serve the customer. (ABI/INFORM)
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Putting the service back into public service.
Zemke, Ron
Training: the Magazine of Human Resources Development v26 Nov,
1989, p42(8)
Government-run agencies often must cope with a hostile public and
enforce unpopular rules and regulations, and they are now taking
clues from the private sector on how to improve customer service.
Examples include: replacing old facilities with modern ones;
rethinking work flow and forms to make life easier for customers;
and training employees in customer service. A primary reason for
government agency overhaul is to renew pride in government
employees. Specific examples of government agencies applying
private corporation management innovations include: Georgia's
General Services Administration, which has lowered costs and become
more user friendly; the Virginia Dept of Motor Vehicles, which has
added express offices in shopping malls and included evenings and
Saturdays in its hours of operation; and the New York Dept of
Labor, which has consolidated all labor-related services under one
roof. In changing a government agency, managers should: seek
support from top government officials as well as middle managers;
be selective about new hires; and create training support.
(MANAGEMENT CONTENTS)
Continuous Improvement Process: Principles and Practices (Final
report)
Mansir, B. E. ; Schacht, N. R., Logistics Management Inst.,
Bethesda, MD.
Jul 89 250p
The Continuous Improvement Process (CIP) is a means by
which an organization creates and sustains a culture of
continuous improvement. The organization deliberately seeks to
create a positive and dynamic working environment, foster
teamwork, apply quantitative methods and analytical techniques,
and tap the creativity and ingenuity of all its people. Collective
effort is focused to better understand meet internal and external
customer needs and to continuously increase customer satisfaction.
Employing CIP in an organization can substantially improve the
quality of its services or products, increase productivity, and
reduce costs across a broad spectrum of systems, products, and
services. A few of the major companies that now use and proclaim
their commitment to CIP-related management technologies are
Phillips, Ford, Xerox, IBM, Hewlett-Packard, Toyota, Honda, Boeing,
Chrysler, and Texas Instruments. In the public sector, DoD has
instituted a continuous improvement initiative called Total Quality
Management. These and other organizations that are committed to a
continuous improvement philosophy report substantial improvements
in quality, productivity, throughput, and employee morale, with
significant reductions in cost, errors, leadtimes, waste, and
customer complaints. The consensus among CIP-oriented companies is
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that these technologies are the key to their long-term
competitiveness and survival. (NTIS)
Achieving the Quality Difference: Making Customers Count
(Conference proceedings)
President's Council on Management Improvement, Washington, DC.
2 Jun 89 87p
Presented at the Proceedings of the Annual Conference on Quality
and Productivity Improvement (2nd) 31 May-2 Jun 89.
The proceedings is a synopsis of the second annual Conference
on Quality and Productivity Improvement sponsored by the
President's Council on Management and Budget. Agenda included
speakers from government and private sector that addressed 12
panels on topics germane to promoting and managing quality
improvement with particular emphasis on employees and customers.
Additionally, 11 working panels reported out on various topics.
The panels presented practical 'How To" advice in condensed
form from people and organizations that have had success in
implementing quality management programs. (NTIS)
TQ Government
McKenna, Joseph F.
Industry Week v240n21 PP: 12-19 Nov 4, 1991
Public service visionaries have successfully introduced total
quality management (TQM) ideas and techniques into a variety of
governmental programs. Business and industry deserve much of the
credit for showing public agencies just how valuable TQM is. Since
implementing a quality program 4 years ago, the 1926th
Communications-Computer Systems Group of the Air Force Logistics
Command has seen cost savings and avoidances of newly $10 million,
and customer satisfaction is at an all-time high. Although there
is a growing interest in total quality government, even more
leaders within public service need to press the case for TQM among
their colleagues and the public sector they serve. (ABI/INFORM)
Standards of Excellence: U.S. Residents' Evaluations of Local
Government Services
Miller, Thomas I; Miller, Michelle A.
Public Administration Review v51n6 PP: 503-514 Nov/Dec 1991
A meta-analysis focused on service evaluations integrated from 261
citizen surveys administered to more than 215,000 people living in
US cities, counties, and townships. The results of these surveys
were used to represent the opinions of more than 40 million US
residents about quality of local government services or quality of
community life. These evaluative surveys indicate generally
favorable assessments for local government activities. Of the
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various services evaluated, fire, library, and trash hauling tended
to receive the highest ratings, while transit services, animal
control, street repair, and planning-zoning received the lowest
ratings. Proximity to a metropolitan job center, community wealth,
and education might be key factors in explaining differences in
evaluations of services among localities. (ABI/INFORM)
The PS 2000 Task Force on Service to the Public: The Chairman's
Comments
Rawson, Bruce
Optimum v21n4 PP:14-20
The initial purpose of Public Service (PS) 2000 was to align
goals, procedures, and structures in the public service sectors of
Canada with the requirements of the 1990s and the 2lst century.
Changes in 4 major directions may profoundly affect public service:
1. how the public believes the government should be run and how
policies should be developed, 2. demographics, 3. public
expectations for better service and a more sensitive government,
and 4. the increase in global markets. The PS 2000 task force
identified the objectives to be achieved by PS 2000 as good
service, more and better consultation, and better leadership. The
Canadian public wants a modern, competent, hard-working,
enthusiastic public service that cares about quality. The are
entitled to it, and that is what they will get. (ABI/INFORM)
The Public Sector: Even Uncle Sam Is Starting to See the Light
Farrell, Christopher
Business Week Special Issue PP: 132-137 Oct 25, 1991
Quality is gaining adherents in the public arena, largely because
the federal government is laboring under a $300-billion deficit and
state and local governments are $40 billion or more in debt.
Quality may be one of the best ways to deliver better services more
cost-effectively. In general, improving quality in government
services involves the same steps as in the private sector. An
emphasis on quality and productivity should result in a more
flexible, more citizen-oriented bureaucracy. Quality can have
vastly different meanings to various public sector constituents.
The sheer size of the task of applying quality to government is
daunting. A great deal of effort is being aimed at discovering how
to measure quality in the public sector. However, some of the most
effective ways to improve quality in the corporate world arouse
suspicion when applied to government, since may voters are
understandably ambivalent about providing public agencies and
employees with decentralizing power. (ABI/INFORM)
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The Formula for Success in TQM
Glenn, Tom
Bureaucrat v20nl PP: 17-20 Spring 1991
Customer focus, leadership, teams, and tools can be combined to
equal total quality management (TQM). In TQM, the word customer
has taken on a new meaning: the beneficiaries of government
bureaucrats' work. When transformation of the organizational
culture is being considered, continuous improvement efforts should
be aimed at quality as defined by the organization's customers.
Once it is known what the customers want and the gap between their
requirements and performance is understood, then quality
improvement teams can be created to start the process. Before
teams can be effective, they need training, facilitation,
leadership, and support. Support from a quality council is
decisive in the success of quality improvement teams. Skilled
management, as well as leadership, will make the difference.
Support begins with a well-crafted charter consisting of a problem
statement and a mission statement. (ABI/INFORM)
Phase 2: Plan for Improvement 1991-1992. Focus on Our Customer
Postal Service, Washington, DC.
1990 21p
Second phase of the plan of the Procurement and Supply Department
(P&SD), U.S. Postal Service, for organizational improvement. The
focus of Phase I was strengthening procurement and material
management functions; Phase II will focus on Postal customers.
Contents include: a review of Phase I; definition of P&SD customer;
and a description of Phase II, - the structure of the plan,
responsiveness, service quality, and value added. (NTIS)
How to Develop Quality Measures That Are Useful in Day-to-Day
Measurement
Office of Management and Budget, Washington, DC.
Jan 89 53p
The report contains a paper prepared by staff of the Federal
Quality and Productivity Improvement Program in the Office of
Management and Budget to provide information on constructing
useful quality measures. The paper describes step-by-step
methods that can be used, and provides examples of quality measures
that are being used in both private and public sectors.
(NTIS)
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//. GETTING TO KNOW THE CUSTOMER
Customer Profiling: Getting into Your Customer's Shoes
Whittle, Susan; Foster, Morris
International Journal of Bank Marketing v9nl PP: 17-24 1991
It has been argued that managing the quality of service requires
a fundamentally different approach from managing the quality of
manufacturing products. The customer profile model offers the
service planners and providers a way to visualize the services they
offer as a journey taken by customers through their organization.
Customers, in making contact with most service organizations, can
typically be profiled along 6 contact stages: 1. search, 2.
arrival, 3. precontact, 4. contact, 5. withdrawal, and 6. follow-
up. By thinking about service from the customer's perspective,
attention is directed to those aspects of the service that
customers evaluate. Reports should be logical, well-reasoned
documents that present the readers with all the facts needed to
make necessary decisions or form opinions on a topic. Reports are
normally written from an impersonal viewpoint, essentially to
detract from the writer's personality and to focus the reader's
attention on the material. (ABI/INFORM)
Understanding Customer Expectations of Service
Parasuraman, A.; Berry, Leonard L.; Zeithaml, Valarie A.
Sloan Management Review v32n3 PP: 39-48 Spring 1991
To understand the nature of customers' service expectations and
identify the factors that influence the formation of these
expectations, focus group interviews were conducted with customers
in 6 service sectors. Eight of the focus group interviews were with
business customers, and 8 were with consumers. Minimal differences
were found between the 2 groups. Customers expect service companies
to do what they are supposed to do, and they expect performance,
not empty promises. One key influence on customers' expectations is
price. Many customers believe that, the more they pay, the better
the service should be, although they do not believe that a low
price is a legitimate excuse for poor service. Customer service
expectations can be categorized into 5 overall dimensions:
reliability, tangibles, responsiveness, assurance, and empathy. The
findings suggest that customers' service expectations have 2
levels: desired and adequate. Many customers want ongoing,
personalized relationships with the same representatives.
(ABI/INFORM)
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Measuring Service Productivity
Coates, Robert
Small Business Reports v!6n3 PP: 22-25 Mar 1991
In the area of customer service, there needs to be a balance
between the number of customers served and the time spent with each
customer. There also has to be an understanding that time spent
with customers to solve their problems with a first call will, in
the end, save time. When the measurement and management focus is on
the number of calls answered or the average time of a customer
interaction, the focus is on activity rather than outcome. There
must be an equal and balancing focus on the quality of customer
contacts and the outcomes they produce. The goal is to produce
customer satisfaction. Regardless of the type of measurement
program, the quality measures should receive at least as much
attention as the quantity measures. Perhaps the most powerful way
to shift the emphasis from activity to outcome is to train people
in good customer service skills. If a company's concern is to
create a satisfied customer, the key concern becomes not how
quickly one can move the customer through the system, but whether
the customer is satisfied at the end of the call. (ABI/INFORM)
Defining and Measuring the Quality of Customer Service
Lewis, Barbara R.; Mitchell, Vincent W.
Marketing Intelligence & Planning v8n6 PP: 11-17 1990
The role of service quality as an indicator of customer
satisfaction and organizational performance is now widely
acknowledged. Many suggested definitions of service quality focus
on meeting customer needs and requirements. Parasuraman, Zeithaml,
and Berry (1988) developed SERVQUAL, a concise multiple-item scale
that can be used to understand better service expectations and
consumer perceptions. It can be used to look at trends over time or
compare branches or outlets within an organization. A firm's
customers can be categorized into several perceived-quality
segments on the basis of their individual SERVQUAL scores. Problems
with SERVQUAL include: 1. the treatment of all items in the scale
as equally important, 2. half of the statement being negatively
worded, 3. the restriction of consumers' responses to a 7-point
scale, and 4. the adjectives used in SERVQUAL statements.
Researchers might consider the use of a bipolar semantic
differential graphic scale to overcome the problems highlighted
with the SERVQUAL measurement tool. (ABI/INFORM)
Customer Expectations: First the Basics, Please
Anonymous
Training v28nlO PP: 12, 14 Oct 1991
When it comes to service quality, most customers just want the
basics, according to a study published by Sloan Management Review.
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Researchers from Texas A&M University and Duke University concluded
that customers expect service companies to do what they are
supposed to do. They expect fundamentals, not fanciness, and
performance, not empty promises. The researchers identified 5
dimensions of service as: 1. reliability, the ability to perform
the promised service dependably and accurately, 2. tangibles, such
as the physical appearance of facilities and personnel, 3.
responsiveness, 4. assurance, and 5. empathy. According to the
study, reliability is the most important dimension in meeting
customer expectations. (ABI/INFORM)
A longitudinal analysis of the impact of service changes on
customer attitudes.
Bolton, Ruth N.; Drew, James H.
Journal of Marketing v55 Jan, 1991, pi(9)
Customers' attitudes toward service quality are affected by their
perceptions of changes in customer service. Consumers' attitudes
were measured by surveying 119 customers of a telephone company
about the overall quality of all of the company's services. The
results indicated that the customers were affected by changes in
service performance, but the changes in perceptions were evident
only in the long run. This implies that organizations should not
expect immediate changes in customers' attitudes when they make
changes in services. Customers' attitudes were more dependent on
perceptions of performance and disconfirmation while the service
changes were occurring. (MANAGEMENT CONTENTS)
The service encounter: diagnosing favorable and unfavorable
incidents.
Bitner, Mary Jo; Booms, Bernard H. ; Tetreault, Mary Stanfield
Journal of Marketing v54 Jan, 1990, p71(14)
Seven hundred important service encounters from customers of
restaurants, hotels, and airlines were collected and analyzed using
the critical incident methodology to determine the crucial events
and connected behaviors of service industry employees which make
customers differentiate very positive service encounters from very
negative service encounters. Implications for future research are
also described. (MANAGEMENT CONTENTS)
Are you customer-driven or driving them to distraction?
Magrath, Allan
Marketing News v24 Dec 24, 1990, p8(l)
Companies should conduct a six-point customer-handling self
diagnosis to determine if they are fulfilling the requirements for
providing effective customer service. The areas that should be
covered in the diagnosis include the extent that functional
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boundaries overlap; internal financial controls that inhibit staff
ability to aid customers; and the information employees need to
help customers. (MANAGEMENT CONTENTS)
Customer-service perceptions and reality
Becker, Wendy S.; Wellins, Richard S.
Training & Development Journal v44 March, 1990, p. 49(3)
A survey of 1,300 customers located in various countries including
the US, UK, and Canada, and a survey of 900 customer service
workers in nine businesses reveals information about the importance
of customer service. The research project was conducted to
determine the job behaviors required for successful customer
service from the customer and service-worker viewpoints, to assess
how well the necessary job behaviors are performed according to
customers and service workers, and to analyze the impact of
customer service on behavior. Research results indicate that
customers and service workers have different views on necessary job
behaviors and how well those behaviors are performed. Results also
indicate that customer service is vital to business success and
that it is important for firms to monitor how well their service
workers perform. (MANAGEMENT CONTENTS)
Learn to heed your master's voice.
Band, William
Marketing News v25 Jan 7, 1991, p46(l)
A slowing economic environment increases the necessity of
listening effectively to customers. Companies often focus on
increasing competitiveness when market growth slows, but do so at
the risk of losing touch with customers. The methods for enhancing
effective listening include setting up customer councils comprised
of representatives of key customers to solicit feedback about
products and services, arranging direct customer contact with
senior management so managers can learn first-hand about customer
needs, and open discussion sessions between employees and top
executives. (MANAGEMENT CONTENTS)
Why Bash Your Customer?
Brown, Tom
Industry Week v240nl7 PP: 28 Sep 2, 1991
Managers must become customer-centric. They must work at changing
their company-centric focus that places emphasis on making employee
work lives easier, creating more comfortable facilities and
schedules, and inventing new products whether anyone needs them or
not. Instead, managers must start to ask how customers can use a
product, obtain it, apply it, and purchase it. Texas Instruments
(TI) has learned this lesson. When it launched Project Easy in the
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mid-1980s, top managers demanded that TI employees find ways to
make the customer's life easier. One invention that was created
with the customer in mind is VCR Plus, a $60 remote-control unit
developed by Henry Yuen and Daniel Kwoh that simplifies controlling
a videocassette recorder. (ABI/INFORM)
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///. THE INTERNAL CUSTOMER
Nurturing the Teamwork Culture: Internal Customer Service
Pastor, Joan; Gechtman, Risa
Supervisory Management v36n4 PP: 10 Apr 1991
Company employees who internalize company goals and who support
one another strongly contribute to the success of an organization.
To create a healthy team in any organization, it is important to
cultivate a team that thinks of fellow workers as customers.
Employees who are willing to give more and who do what is best
for the team find out that what they do for fellow workers comes
back to them. This practice is called internal customer service.
Departments must work at satisfying the requirements of other
departments before the ultimate goal of satisfying the external
customer can occur. The responsibility for keeping in touch with
one's internal customers lies with the individuals of a
department, and a supervisor can foster this sharing of time and
information. When a department establishes relations with another,
the supervisor is responsible for ensuring that everyone keeps
the commitments made to internal customers. (ABI/INFORM)
8 ideas to stimulate internal service.
Sanfilippo, Barbara
Bank Marketing v22 Dec, 1990, p26(4)
Banks can improve customer service by improving internal
service and teamwork. The quality of services provided by
support and administrative personnel is critical to providing
high-quality customer service. Banks can take several steps to
improve internal service, including evaluating the internal
business environment, involving support personnel in marketing
plans, allowing workers to rate the service provided by other
employees, conducting marketing meetings with bank ranches, and
awarding certificates to employees who meet service standards.
(MANAGEMENT CONTENTS)
Internal Service Operations: Strategies for Increasing Their
Effectiveness and Controlling Their Cost
Davis, Tim R. V.
Organizational Dynamics v20n2 PP: 5-22 Autumn 1991
Many service and support functions fail their most obvious
customers - the other departments in the company. Improving the
efficiency of internal-customer support can produce long-term cost
savings and enhance overall service quality. Most departments
have a captive market for their services, hence there is little
incentive to try harder. The sheer number of internal service
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functions can create a logistics nightmare. Often, departments
within an organization are linked closely by routinized work that
flows between them. A useful way to clarify shared tasks
between contiguous departments in a workflow is to develop a
responsibility chart. Managers and members of interfacing
departments meet to clarify troublesome shared responsibilities.
Process management examines all activities in sequence,
including what precedes and what follows each activity in a
workflow. Many companies should consider phasing out at least
part of certain internal support functions and contracting with
outside suppliers. (ABI/INFORM)
Satisfy Your Internal Customers
Pfau, Bruce; Detzel, Denis; Geller, Andrew
Journal of Business Strategy v!2n6 PP: 9-13 Nov/Dec 1991
Striving for customer satisfaction has traditionally been the
keystone of success in business. A company's ability to meet its
external customer needs depends directly on how well it satisfies
the needs of its internal customers. A growing number of companies
are implementing service and quality improvement programs that
enhance their own employees' knowledge and skills, boosting
internal customer satisfaction and loyalty. Companies can begin
to adopt an internal service focus by helping their employees in
internal-supplier functions identify just who their customers are.
A pilot study conducted by the Hay Group in 1991 highlighted
several areas that seem critical to quality internal
service, such as having well-defined lines of accountability
and authority. Some companies may choose to revise and revamp
the structures and functions of the entire organization to
truly reflect and encourage an internal customer
orientation. (ABI/INFORM)
Keeping the Customer Satisfied - Inside and Out
Feldman, Stuart
Management Review vSOnll PP: 58-60 Nov 1991
According to Harold Pharr of Van Leer Flexibles, unless internal
customer relationships exist, employees do not understand the
importance of what they do and how what they do affects others in
the chain of service. To achieve empowerment, companies build a
foundation of open communication through which an internal
supplier can clearly establish the requirements of the internal
customer. Successful internal customer strategies are often an
integral part of larger total quality management initiatives.
Jeff Fierstein of FHP Health Care recommends measuring the
effects of an internal customer strategy by observing the changes
in people's philosophy and values. (ABI/INFORM)
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Improving White Collar Productivity Can Enhance Profitability
Bhote, Keki R.
Corporate Controller v3n5 PP: 39-46 May/Jun 1991
While US manufacturing is finally making progress in the quality
arena, quality is virtually ignored among the services that
support manufacturing, such as marketing and personnel. An
Illinois Institute of Technology study found that blue-collar
productivity has been consistently above 80% and rising, but
white-collar productivity has been below 40% and falling.
White-collar productivity is important because, through greater
customer and employee satisfaction, companies can improve their
profits, return on investment, and market share. The Next
Operation As Customer (NOAC) technique can improve quality,
cost, and cycle time in any white-collar operation. NOAC's
basic principles are: 1. The internal customer is a prince.
2. All work can be considered a process. 3. Effectiveness is
measured through the internal customer's evaluation. 4. The
consequences of meeting or not meeting the internal
customer's requirements include commensurate rewards or penalties.
(ABI/INFORM)
Coming to Grips with Service Intangibles Using Quality Management
Techniques
Ballantyne, David
Marketing Intelligence & Planning v8n6 PP: 4-10 1990
The goal of quality management is to narrow the quality gap
between what customers expect and what they experience. A structure
for planning and introducing the types of internal changes that
need to be made to build a loyal customer base can be found through
quality management. The value a firm creates for its customers is
a function of the alignment it can achieve between the firm's value
chain and the customer's value chain. Minimizing blockages in the
workflow really starts upstream in the value chain, at the service
design stage. Flowcharting has proven potential for designing-in
value for customers of a kind that exceeds the cost to the company.
The idea of internal customers and internal suppliers follows
naturally from an examination of flowcharting techniques. Examining
the value chain shows how service processes are linked and that
there are opportunities for the examination of these linkages with
a view to quality improvement. (ABI/INFORM)
The Customer Within
Lee, Chris
Training v28n7 PP: 21-26 Jul 1991
Total quality management focuses on the internal customer as well
as the external. The needs of employees must be met so that they,
in turn, can provide excellent service for the external
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customer. At Westinghouse Electric Corp., for example, the
internal customer-supplier approach has proven to be a powerful
catalyst for corporate quality improvement efforts that began a
decade ago, according to Carl Arendt of the Westinghouse
Productivity and Quality Center. He says that the most profound
effect is an attitude change. The first steps in the quality
process are to identify the customers and to meet with them.
A support function, such as a management information systems
department, might want to establish service-level agreements
with internal customers. Whether agreements between internal
customers and suppliers are formal or informal, advocates of the
approach agree that the process for reaching them must be flexible.
(ABI/INFORM)
Don't Take Internal Customers for Granted
Milite, George
Supervisory Management v36n7 PP: 9 Jul 1991
Too many supervisors neglect a key component of managerial
success - their internal customers. The other departments in a
company are just as important as outside suppliers and buyers.
The more supervisors understand internal customers, the better
they will be able to meet their needs. To help develop this
understanding, supervisors should: 1. avoid jargon, 2. watch
their priorities, 3. define responsibilities clearly, 4. keep
communications open, and 5. keep quality consistent. Ultimately,
how well a department performs depends on how well the rest of
the company performs. (ABI/INFORM)
Speeding the Way to Total Quality
Dodson, Robert L.
Training & Development v45n6 PP: 35-42 Jun 1991
Internal customer satisfaction is the key to a total quality
commitment. Companies must acknowledge that an essential task of
management is to satisfy employees to the point required to
engender positive attitudes. The standard barometers of
employee satisfaction, such as turnover, complaints, and
absenteeism, are either too blunt or too late to be of use. A
better way to measure internal customer satisfaction is through
a detailed survey or internal quality audit. Installing an internal
quality audit begins with the formation of a project team
composed of a cross-section of managers from the top levels of
the firm to the first line. The team's charter is to design and
implement the audit. The results of the initial audit can be a
bitter pill for managers and a critical test of the idea that
problems are opportunities. However, accepting the results of the
audit as a baseline for improvement and responding with visible
actions has implications throughout the organization. (ABI/INFORM)
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Now Quality Means Service Too
Rose, Frank
Fortune v!23n8 PP: 97-111 Apr 22, 1991
After being viewed as a manufacturing problem for most of the
past decade, quality has become a service issue. The idea is total
quality management (TQM) in the offering itself and in all the
services that come with it. Poor service has become an issue for
managers for the same reason shoddy goods did: competition. If
product quality is essentially the same across the industry,
service becomes the distinguishing factor. Because service
quality can be gauged only by customer satisfaction, TQM has
redefined quality as "what feels right to the customer." The
TQM effort depends on a willingness to see the world from the
customer's point of view and an eagerness to move swiftly. Within
any company, TQM theory holds, is a whole chain of internal
customers, culminating with the person at the cash register. The
trick is to get everyone working together while keeping this
ultimate customer in focus. (ABI/INFORM)
The customer.
Lee, Chris
Training v28 July, 1991, p21(6)
Each division, department, and even employee in a company is
but one part of a whole, each connected to the other in a
supplier-customer relationship. Firms can make significant and
lasting improvements in quality and .customer service by
concentrating on the weakest links in these internal connections
and taking steps to strengthen them. Determining which links need
improvement begins with looking at the needs of external
customers, then working backwards through the internal
supplier-customer relationships. Management must first identify
their internal customers, determine their specific needs, then take
action. (MANAGEMENT CONTENTS)
Customer satisfaction: a five-star rating.
Foxman, Loretta D.; Polsky, Walter L.
Personnel Journal v70 June, 1991, p27(2)
Companies can take steps to develop an excellent personnel
department within an organization that provides superior service
to internal customers. The steps that human resources managers can
take to improve internal customer service to employees include
gaining the necessary knowledge about personnel issues, ensuring
that the organization has hired an adequate number of workers, and
viewing the work environment from the perspective of employees.
Companies that provide high-quality service to internal customers
can gain a competitive advantage in the marketplace. (MANAGEMENT
CONTENTS)
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Satisfying the internal customer.
Gulledge, Larry G.
Bank Marketing v23 April, 1991, p46(3)
Most banks evaluate the satisfaction of external customers,
but many ignore the measurement of the satisfaction of
internal customers, or employees. Employees' performance is
affected by their satisfaction with other employees, vendors,
and internal resources. Interviews with front-line employees
about their satisfaction with internal resources can focus on
several factors, including availability, cooperativeness,
timeliness, professionalism, and quality. The steps to take when
weaknesses are exposed include training employees, motivating
employees, communicating with employees, reorganizing the
bank's structure and systems, and redesigning products and
services. (MANAGEMENT CONTENTS)
Horizontal management.
Denton, D. Keith
SAM Advanced Management Journal v56 Wntr, 1991, p35(7)
More businesses are beginning to use horizontal management to
improve service and competitiveness. Horizontal management
emphasizes both internal and external customers. The
implementation of horizontal management involves thinking of
the next operation as a customer. The steps in implementing
horizontal management include determining which products and
services to provide, determining what is needed from suppliers,
identifying ways to improve customer service, and defining
how work is done. The horizontal management approach used by
Metropolitan Life Insurance Co (MET Life) can be used as a model
for other businesses. MET Life's approach is based on the
commitment of management, the involvement of employees, an
understanding of internal suppliers and customers, product
champions, and quality improvement groups. (MANAGEMENT CONTENTS)
From total chaos to total quality.
Sutton, John R.
Industrial Engineering v22 Sept, 1990, p!8(2)
A growing company can often stop focusing on its customer
when undergoing expansion and reorganization and attempts to
systemize. The external customers of an organization are easy
to identify, however internal customers, or departmental
employees, are also 'customers. ' It is important that both types
of customers be served with 'Total Quality.1 Total Quality
involves serving external and internal customers' needs before
thinking about quantity, schedules or other factors. By placing
quality needs first, the company will eventually see better
sales, higher profits and lower costs. Management must set
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objectives in order to reach Total Quality. (MANAGEMENT CONTENTS)
Internal service: solving problems.
Plymire, Jerry
Supervisory Management v35 May, 1990, p5(l)
The promotion of internal service quality requires
harmony of operations, which managers can foster by enlisting
employees in a process in which they negotiate needs. Key
interdepartmental transactions, in which one group is serving
another, must be identified and prioritized through an assessment
process. Once the list of prioritized transactions has been
collected, representative employees from each department are
brought together in a meeting led by a facilitator in which
the customer group defines its needs and the service group
examines its ability to meet the internal customers' needs.
During the process, a measurable set of needs will be negotiated.
The role of the facilitator will maintain harmony and a process
orientation. A follow-up meeting should be held in thirty days to
see how perceptions conform to expectations. (MANAGEMENT CONTENTS)
A wider definition of who's a customer.
Harris, Kim S.
Bank Marketing v22 March, 1990, p!8(2)
Provident Bank of Maryland, which has 38 branches in the
greater Baltimore area, has developed effective service programs
which address the needs of both external and internal
customers. The bank developed its programs after surveying 1,000
people who live in Baltimore and conducting 16 focus groups for
bank employees. Service quality programs developed as a result of
research speeded up loan processing by streamlining procedures,
encouraged customer feedback by providing a quarterly newsletter
through which customers can contact the bank's president, and
fostered worker commitment by rewarding bank employees who
provide excellent customer service. (MANAGEMENT CONTENTS)
Down with the internal customer.
Guaspari, John
Across the Board v28 Sept, 1991, pll(3)
Many organizations have adopted the internal customer concept,
which proposes that employees treat each other like 'real1
customers, thereby giving them high-quality service to get jobs
done. This concept, however, has several drawbacks. These include
the possible emergence of dominance-subservience relationships
among employees, and the lowering of the quality of customer
service because the word 'customer' has lost its special
connotation. The concept also raises the question of who will serve
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whom and why. The relationship between co-workers and the
relationship between a customer and a supplier are similar, but
they are not the same. There is a need for a new model that
correctly identifies who the 'real1 customers are.
(MANAGEMENT CONTENTS)
Quality and service for internal customers.
McDermott, Lynda C.; Emerson, Michael
Training & Development Journal v45 Jan, 1991, p61(4)
Organizations must develop an internal customer service
orientation among their employees before they can provide quality
and service to external customers. Employees cannot satisfy
external customers unless they are treated well by their own
companies. Employee relationships can be improved in many ways,
including establishing an internal customer service strategy,
creating an internal marketing plan, providing interpersonal
relations training, developing performance standards, and
conducting brainstorming meetings. (MANAGEMENT CONTENTS)
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IV. DEVELOPING A CUSTOMER SERVICE PLAN
Total Quality Service
Albrecht, Karl
Executive Excellence V8n7 PP: 18-19 Jul 1991
Total quality service (TQS) is a family of interrelated
methodologies for assessing, defining, and improving service
guality. The 5 key methodology menus involved in the TQS process
are: 1. assessment, measurement, and feedback, 2. market and
customer research, 3. strategy formulation, 4. education, training,
and communication, and 5. process improvement. The 5 major
components of the TQS process work together to build service
quality. The appropriate starting point for the process, the
appropriate sequence of activities, and the appropriate choice of
methods all depend heavily on the organization's current state and
the orientation of the executives who lead it. The key to success
in applying TQS is in the choice of the program strategy, which is
the unique way of putting together the elements of methodology,
resources, timing, and sequencing of actions that go together to
create a successful program. (ABI/INFORM)
A total-quality approach to customer service.
Foster, Morris; Whittle, Susan; Smith, Stuart
Training & Development Journal v43 Dec, 1989, p55(5)
Most firms recognize the importance of providing good customer
service and make efforts to train employees to achieve service
skills. However, successful results may not be achieved because
corporate cultures are not altered to parallel efforts in improved
service. The UK-based Total Quality Service (TQS) approach provides
a system which enables corporations to develop quality throughout
entire organizations. TQS is based on four strategies: making
management leaders involved in TQS; designing and structuring the
program to sustain it at service delivery levels; connecting
management support services; and connecting customer-handling
training with TQS concepts. The TQS can be implemented via a series
of workshops, some which focus on profiling customers. (MANAGEMENT
CONTENTS)
Putting Service Quality into Gear
Horovitz, Jacques; Cudennec-Poon, Chan
Quality Progress v24nl PP: 54-58 Jan 1991
For any company to provide consistently good service quality, it
has to commit itself to incorporating 5 key efforts. First, the
company must make sure that its staff has a common definition of
service quality. Second, the company must make sure the customer is
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the main priority throughout the organization. The customer must be
the prime focus of all work and efforts. Third, the company must
look after the front-line staff so they can happily serve the
customer. This means treating them well, caring for them, and
alleviating the pressure of being constantly exposed to the public,
the irate or tired client, and the unexpected questioner. If
something goes wrong, the front-line people take the blame even if
they are not at fault. Fourth, the company must make sure that what
it communicates to its customers is consistent with its service
quality level. Fifth, management's actions and behaviors must show
commitment to service quality. How middle management leads the
staff in daily work will make the difference. (ABI/INFORM)
Managing Quality in a Service Business
Williamson, Shelli
Hospital Materiel Management Quarterly v!2n3 PP: 6-10 Feb 1991
Some common sense rules are more important in providing health
care services than in other, more straightforward businesses. The
first rule is to focus on the customer. Positive experiences with
services and results are the most powerful marketing tools a
service business can have. Top management leadership is essential.
The service needs to be developed by establishing a decision-making
process that is fact based, bottom up, and top down. Total employee
involvement is necessary to begin the process of continuous
improvement. Major improvements in efficiency and effectiveness
will come from eliminating opinions and using facts to drive
consensus and commitment. With the pressures of today's
marketplace, cost and quality must go hand in hand. The ultimate
customers, the patients and payers, are no longer willing or able
to sacrifice one over the other. The constant improvement of health
care services makes it possible to achieve these goals.
(ABI/INFORM)
The common thread; connecting functions to create a service
culture.
Pollen, Ellen
Employment Relations Today v!8 Summer, 1991, p229(6)
Customer service is the key to becoming successful in the 1990s,
and organizations should take steps to create a service culture.
The way to create a service culture is to integrate the individual
functions of the organization. The success of a corporate service
policy is based on the corporate mission statement. Management must
take into consideration customers' needs when developing a service
policy. The elements in a service culture include selecting the
right employees, developing a reward system, and creating training
programs. (MANAGEMENT CONTENTS)
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Do it right the first time; you may not get a second chance.
Graham, John R.
Marketing News v25 August 19, 1991, p!2(2)
A tight economy, competition, and demanding customers reguire that
companies address the issues of customer service and product
quality correctly the first time because they may not be given
another opportunity. The steps that companies can take to do it
right the first time include providing customers with a good value,
recognizing that customers are important, and taking customers
seriously. (MANAGEMENT CONTENTS)
Hitting the long ball for the customer.
Stum, David L.; Church Ronald P.
Training & Development Journal v44 March, 1990, p44(5)
Many firms are interested in improving their customer service
because research has revealed that poor customer satisfaction is
why consumers switch to competing businesses. One way companies can
evaluate their customer service efforts is by using a baseball
diamond model which provides a way to analyze an entire
organization at all levels. At first base, the model suggests that
skilled service employees should learn to project a professional
image through appearance, attend to customers with positive body
language, and acknowledge customers' needs. At second base, the
model suggests that managers should set and enforce performance
standards, conduct informal training, and manage and improve
service environments. Third base focuses on the service
environment, while home base focuses on an organization's policies
and procedures which help to enhance a customer service-centered
business. (MANAGEMENT CONTENTS)
Competitive confrontation in consumer services.
Allen, Michael G.
Planning Review (a publication of the Planning Forum) v!7 Jan-Feb,
1989 , p4(7)
Service industries are increasingly feeling the pressure of
competition and are emphasizing customer service to increase
profitability in a segmented marketplace. Service industries are
unique because their profitability depends on how well marketing
improves the utilization of services. Companies such as McDonald's
and American Express are well known for providing excellent service
because they follow some of the four suggested strategies for
success, including nurturing a distinctive service identity and
developing a niche to achieve competitive superiority. Successful
companies also focus on operational achievement by using the
correct distribution channels; developing a strong service culture;
and using service contracts. (MANAGEMENT CONTENTS)
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Coining: the customer service decade.
Davidow, William H.; Uttal, Bro
Across the Board v26 Nov, 1989, p33(5)
Corporations are focused on earning profits, but firms which
emphasize only financial end results may inadvertently ignore
customer service, which many experts predict will be the most
effective competitive weapon in the coming decade. Research
conducted by the Strategic Planning Institute which examined 2,600
firms indicates that quality of services and products is the single
most important factor affecting overall performance in the long-
run. Other research examining businesses indicate that excellent
service help firms save money because firms do not have to replace
lost customers. Additionally, superior customer service can
generate concrete financial savings over time, related to
developing positive customer expectations. (MANAGEMENT CONTENTS)
Why customer focus strategies often fail.
Whiteley, Richard C.
Journal of Business Strategy v!2 Sept-Oct, 1991, p34(4)
Potential performance pitfalls in the implementation of quality
improvement programs are averted when management assumes greater
active participation in the quality-focused promotion of customer
services. Quality strategies may be sabotaged through false starts;
the misalignment of products to customer needs; bias for action
instead of fine-tuning the planning and checking phases of the
process; a lax attitude toward quality as a result of a profitable
status for business; overnight remedies to quality problems; non-
involvement of management in the actual improvement process; poor
time management with regards to the acquisition of conceptual
knowledge for quality improvement strategies; poor selection of
quality managers; and tradeoffs against quality. Implementation of
the quality program would depend chiefly on the organizational
leader's skills, beliefs, and attitudes. (MANAGEMENT CONTENTS)
Mistakes that service companies make in quality improvement.
Berry, Leonard L.
Bank Marketing v23 April, 1991, p68(2)
Firms in the service industries make many common mistakes when
attempting to improve quality. One mistake is that service
companies fail to use employee research in the service research
process. The issues that employee research should consider include
the biggest problem encountered every day when providing service to
customers, and the primary change to make in improving service.
Another mistake is investing funds to improve quality without
developing a multi-faceted, company-wide, continuous quality-
improvement process. Another mistake is the failure to respond to
customers' problems. Companies should encourage customers to
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complain about poor service by giving employees authority to solve
problems, and investing in communication systems that support the
problem-solving process. (MANAGEMENT CONTENTS)
Service recovery: doing it right the second time.
Zemke, Ron; Bell, Chip
Training: the Magazine of Human Resources Development v27 June,
1990, p42(7)
Organizations respond in different ways to complaints, but those
firms which have taken the time to plan how they will respond to
customer complaints are more likely to maintain customer support.
Studies by Technical Assistance Research Programs Inc indicate that
customers who have complaints and are responded to in satisfactory
ways are more likely to purchase more products from businesses
compared to customers who have not experienced difficulties.
Additional research studies indicate that consumers have
expectations about how they want firms to respond to complaints:
they want to receive an apology; the want to be offered a way to
remedy problems; and they want to be treated in ways that indicate
a firm cares about them. (MANAGEMENT CONTENTS)
Keeping disaffected customers.
Koehler, Kenneth G.
CMA - the Management Accounting Magazine v65 Sept, 1991, p7(l)
Customer complaints should receive as much attention as new and
often costly marketing campaigns because keeping costumers is as
important as attracting new ones. High-quality complaint processing
can help firms retain clients, enhance their loyalty, and improve
the company's image. Employees with good listening and
communication skills may be chosen and trained to handle this
job. The steps in dealing with customers include being familiar
with the complaint process, and avoiding arguments with customers.
(MANAGEMENT CONTENTS)
Customers from hell.
Semke, Ron; Anderson, Kristin
Training: the Magazine of Human Resources Development v27 Feb,
1990, p25(8)
Profiles of five types of negative customers are presented
including egocentric customers, hysterical customers, and verbally-
abusive customers, to illustrate the types of challenging clients
service workers typically encounter. A variety of steps can be
taken to deal with difficult cxistomers such as: taking action to
help customers; ignoring foul language; and taking responsibility
for solving problems. Firms which are committed to providing good
customer service also need to make sure their service workers get
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ample training and are supported by management. (MANAGEMENT
CONTENTS)
Designing.a customer satisfaction measurement program.
Kohnke, Luane
Bank Marketing v22 July, 1990, p28(3)
Chase Manhattan Bank began improving its quality of customer
service in 1987 through the use of a three-part program, which
included collecting data about consumers and employees, developing
and monitoring service indicators and standards, and creating and
implementing a service plan. Individual banking sector Vice Chmn
Art Ryan developed the customer service program. The service
quality plan stated the initiatives and responsibilities needed to
achieve Chase's goals including leadership, competence, and skills
training; continuing measurement of customer satisfaction; and
communications and recognition programs. Senior and middle
managers' commitment to the program was considered crucial, as was
the involvement of all levels of employees. (MANAGEMENT CONTENTS)
Quality for all seasons.
Sharp, Isadore
Canadian Business Review v!7 Spring, 1990, p21(3)
The management of the Four Seasons Hotels has made customer
satisfaction the most important goal of its strategic planning in
order to promote the growth of its customer base. The firm believes
that service errors, which cause hotels to lose referrals and
customers, are the biggest barrier to improving productivity. To
provide excellent customer service, the firm adopted a program to
motivate employees to provide quality customer service. The program
focuses on seven quality principles, including: developing an
effective corporate culture; making a commitment to quality without
compromise; and controlling quality standards. (MANAGEMENT
CONTENTS)
Training for service quality.
Petrini, Cathy
Training & Development Journal v43 May, 1989, p20(7)
Four customer service experts from four distinctive industries
recently discussed the concept of customer service training and how
it is as applied in their companies. Former American Express Co dir
of quality assurance and engineering Jay Spechler explained how
American Express incorporates effectiveness standards in its
customer service training. William Byrd Press executive dir for
human resources Mike Wriston detailed the team concept in his
company. Spiegel Inc training and development manager of customer
relations Kathleen Griessler illustrated how Spiegel keeps its
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service employees apprised with the most current reference
information, and Einstein Consulting Group pres Wendy Leebov
identified different requirements for good customer service in the
health care industry. (MANAGEMENT CONTENTS)
Empowering Employees: A Case Study on Improving Customer Service
Richard, Shirley A.
Compensation & Benefits Management v7n4 PP: 46-50 Fall 1991
Arizona Public Service (APS) is an investor-owned utility that
generates about $1.5 billion in revenues each year. In order to be
competitive, APS must be successful in 2 areas: 1. It must keep its
pricing competitive. 2. It must be competitive in providing
service. To accomplish these goals, APS has developed and
implemented an extensive external and internal campaign, called
ServicePLUS, to ensure that customers receive high-quality service.
The way for APS to reach its goals is to motivate its customer
service staff. APS took 5 steps to empower its employees: 1.
communicating the company's mission, 2. listening to employees, 3.
opening up the flow of information, 4. convincing employees that
their ideas are needed, and 5. giving employees a format for
action. (ABI/INFORM)
Right-Side-Up Organization
Richards, Philip
Quality Progress v24nlO PP: 95-96 Oct 1991
Companies need a new way of viewing their organizations in order
to improve customer service and employee motivation. The corporate
orientation can be changed visually by inverting an organization
chart. In a typical organization chart, the chief is at the top of
a pyramid of managers, supervisors, and staff. The pyramid must be
inverted to reverse perceptions and practices. A company wide
commitment to put the customer first should support the redrawn
organization chart. Putting customers at the top of the chart
reminds everyone who is the most important to the organization.
Both customers and front-line workers should be at the top of the
organization chart because everyone else supports them. Each level
of management should be challenged to motivate front-line workers
to be efficient and effective. (ABI/INFORM)
Truths and Myths in Service Quality
Gummesson, Evert
Journal for Quality & Participation v!4n4 PP: 28-33 Jul/Aug 1991
Service quality is subject to at least 5 categories of truths and
myths. These concern: 1. the alleged differences and similarities
between goods and services and what impact these have on quality
management, 2. the question: "Does service quality cost or is
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quality free?," 3. the problem of variability and limited
capability and the robustness of the service production process, 4.
the idea that quality in some service areas, such as the health
care sector and education, can only be created if the service
provider demonstrates love, compassion, and empathy, in addition to
objective skills and perfect systems, and 5. how to raise high
customer expectations, referred to as the Peanut Syndrome.
Academics and practitioners are reminded not to build up a series
of myths that become inhibiting truths. Instead, they should be
sensitive to changing customer needs and tastes, the changing
environment, new discoveries, and unorthodox ways of regarding
reality. (ABI/INFORM)
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V. ROLE OF THE EMPLOYEE IN CUSTOMER SERVICE
Doing the Little Things Right
Holloway, Gene D.
American Agent & Broker v63n9 PP:46, 48 Sep 1991
The Page Agency (Deland, Florida) is convinced that doing the
little things right separates it from the competition. The agency
concentrates its efforts in 3 principal areas: employee selection
and training, education, and customer service. The company uses
the personality testing service provided by the Omnia Profile Inc.
to make accurate employee selection. Basic training tools include
a procedures manual, an employee manual, and underwriting guides.
An in-house underwriting guide familiarizes employees with the
underwriting requirements of each of its divisions. The guide
helps the agency avoid making an inappropriate submission to a
market. The Page Agency takes advantage of company-sponsored
educational programs and holds monthly staff meetings that
emphasize company procedures and coverage changes. Since the
agency is interfaced with 5 carriers, it can provide fast service
to clients. (ABI/INFORM)
Customers and commitment.
Shaffer, James C.
Communication World v7 Dec, 1990, p23(5)
Organizations that develop good relationships with their employees
will provide high-quality products and services to customers.
Communicating organizational values to employees will help them
become committed to providing high-quality customer service. The
rewards received by customer-service personnel of one southeastern
company were based on the number of telephone calls they completed.
The reward system indirectly communicated to employees that
completing a large number of telephone calls was more important
than obtaining customer satisfaction. The firm was able to improve
customer service by rewarding employees for customer satisfaction
instead of for the number of telephone calls they completed.
(MANAGEMENT CONTENTS)
Auditing customer service: look inside as well as out.
Zemke, Ron
Employment Relations Today v!6 Autumn, 1989, p!97(9)
A study of 101 companies with good customer service reputations
suggests that businesses boasting high employee job satisfaction
also boast high customer satisfaction. Successful firms understand
that staff support and frontline employees are valuable sources of
information about how companies are perceived in the marketplace.
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Business managers can look to employees to provide relevant data to
develop excellent service programs. The 15 areas where employee
evaluations can be valuable include: identifying the clarity of
service focus; identifying the level of management commitment to
service excellence; and determining quality training and support.
(MANAGEMENT CONTENTS)
Creating commitment.
Macher, Ken
Training & Development Journal v45 April, 1991, p45(5)
The effective management of an organization involves creating a
commitment to service, making work more meaningful, and
implementing a continuous learning process. The steps in achieving
employee commitment include obtaining the personal commitment of
managers, developing relationships with employees, and being
truthful with employees. Employees will feel that their work is
meaningful if employers fulfill psychological job requirements,
which include contribution, a sense of community, and influence.
Employees must have an understanding of the business before they
can take the initiative. The best way to institutionalize learning
is to involve employees in improving their own jobs. (MANAGEMENT
CONTENTS)
Using customers1 ratings to reward employees.
Lee, Chris
Training: the Magazine of Human Resources Development v26 May,
1989, p40(7)
Customer service has increasingly been seen by business as a way
to improve market share against competitors. Now some firms are
using customer service ratings on products and services as a way to
reward employees for jobs well done. Firms that are interested in
designing a customer rating reward system should: discover what
customers want; set standards around specific points of service
delivery that customers have deemed important; measure performance
against the designated standards; and develop a system which
rewards employees for the desired results. (MANAGEMENT CONTENTS)
Service training made simple.
Piskurich, George M.
Training & Development Journal v45 Jan, 1991, p37(2)
A customer-service training program is more likely to be
successful if the training process is simplified. Revco D.S. Inc
developed a training program that appears to be successful.
Trainees were taught that providing customer service is a simple
three-step process: greeting every customer upon entry to the
store, offering assistance to every customer searching for a
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product, and making eye contact with every customer. The training
process involved explaining the importance of customer service to
employees, describing the three steps, and following up by
observing the employees. Employees are able to remember and use the
three-step process even if they are busy. (MANAGEMENT CONTENTS)
How does Disney do it?
Solomon, Charlene Marner
Personnel Journal v68 Dec, 1989, p50(8)
Walt Disney Co is projected to earn $4.4 billion in 1989, and
reasons for its high revenues include emphasis on customer service,
and a focus on the elements of efficiency, courtesy, show, and
safety. While Disneyland visitors see aspects of company courtesy
when visiting the amusement parks, the theme of courtesy is
extended in personnel management too. Many hours have been devoted
to designing successful employee 'universities' which train workers
in the Disneyland philosophy. The universities are specific to
various sites, ranging from movie studios to theme parks. Some of
Disney's successful employee training and hiring techniques include
using peer interviews for hiring people and requiring employees to
develop a modification or idea to be implemented by Disney. The
company has found that it is important to stress that employee
development is an on-going process because reinforcement helps
workers to stay committed to the company. (MANAGEMENT CONTENTS)
Instilling a service mentality: like teaching an elephant to dance.
(the importance of top management commitment to customer service)
Albrecht, Karl; Zemke, Ron
International Management v40 Nov, 1985, p61(3)
The transition has begun for many industries from an
emphasis on manufacturing to an emphasis on service, but an
important aspect of this transition is the training, or retraining,
of employees to ensure that they understand the importance of
customer service. The customer's happiness is paramount in success
in service sectors of the economy because of the importance of
return business, and it is a topic that has received the
attention of top management in a wide range of industries, both
service and manufacturing. The basis of many service training
programs is the idea that each time a customer does business with
a company, the customer makes a judgment on the quality of the
service, with an image of the firm's service quality formed by the
sum total of all the judgments of all its customers. (MANAGEMENT
CONTENTS)
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Empowering employees. (Customer Satisfaction)
Johnson, Gail Cook
Canadian Business Review v!8 Summer, 1991, p47(3)
The REACON Employee Opinion Survey Data Bank, a data base
comprised of the replies of over 15,000 employees in 59 North
American organizations to public opinion surveys, reveals that
employee empowerment is one of the keys to providing quality
customer service. The companies with the highest rates of customer
satisfaction promote communication between management and
employees, facilitate employees' interaction with customers, and
encourage employee feedback. The firms that are leaders in customer
service display a commitment to service, promote teamwork, devote
resources to personnel to ensure their competence, and have
managerial principles stressing communication, employee feedback,
and a proactive orientation.
(MANAGEMENT CONTENTS)
Internal research helps to define service quality.
Brown, Timothy P.
Marketing News v25 Feb 4, 1991, pll(l)
Customer satisfaction programs require data on the producers of
products or services due to the importance of employee interactions
with customers in defining customers' perceptions of quality
service. Internal research programs are necessary in order to
ensure that employees are motivated and capable of delivering
quality customer service. Internal research is both qualitative and
quantitative. In the qualitative phase, questionnaires are used to
ascertain perceptions of performance and service among management
and front-line employees. Internal research programs allow firms to
define service quality and will help front-line employees
understand customer expectations and how to meet them, and help
management understand customer expectations and whether employees
are able to meet them. (MANAGEMENT CONTENTS)
Buying into customer service
Steinburg, Craig
Training & Development v45 Sept 1991, pll(2)
The upgrade of customer service quality in companies has become an
integral aspect of management practice. Companies must be willing
to devote manpower, time, and money to upgrade customer service if
they are to improve their business prospects. Businesses can avail
themselves of the services of consulting firms which train
employees with the skills, knowledge and attitude necessary for
providing outstanding customer service. The various aspects of
employee competency should be covered in the training program.
(MANAGEMENT CONTENTS)
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Looking for good reading on service quality? Here are
favorites of experts in the field. (Service Quality)
Rubenstein, James
Bank Marketing v23 April, 1991, p66(2)
Book recommendations made by service quality experts are
presented. Bane One Corp VP and Chief Quality Officer Charles
A. Aubrey prefers reading books that tell banks how to be
more proactive in improving service quality. Aubrey's
recommendations include Juran's Quality Control Handbook, by J.M.
Juran and Frank M. Gryna; Quality Is Free, by Philip Crosby; and
Quality Service, Pure and Simple, by Ronald W. Butterfield.
Training consultant Ronald Zemke's recommendations include Service
Quality: A Profit Strategy for Financial Institutions, by Len
Berry, Dave Bennett, and Carter Brown; Commit To Quality, by
Patrick Townsend and Joan Gebhardt; and Managing Quality: The
Strategic and Competitive Edge, by David Garvin. The
recommendations of Premier Bancorp Exec VP L. Biff Motley
include At America's Service: How Corporations Can Revolutionize
The Way They Treat Their Customers, by Karl Albrecht;
Excellence Was Expected, by Ferry Porsche; and Service Quality
Management, by the Bank Marketing Assn. (MANAGEMENT CONTENTS)
Services: Beyond "May I Help You?"
Armstrong, Larry
Business Week Special Issue PP: 100-103 Oct 25, 1991
Industries are finding that quality is as vital a marketing tool
as price. This realization is coming in the face of a tight economy
and a growing refusal on the part of customers to stand for
anything less than the best. However, only 10% of US service
companies today have any kind of quality program, according to
Gunneson Group International Inc. The company predicts that, by the
year 2000, perhaps 70% of service companies with more than 500
employees will have formal quality initiatives. Employees in the
future must like their jobs, and they will need more authority.
Beyond training, quality in services may require large amounts of
spending on technology. Some service companies make the mistake of
approaching quality with a manufacturing mentality. Progressive
service companies now look to a better measure of quality, such as
whether or not customers are being maintained, according to Bain &
Co.'s Frederick F. Reichheld. Companies are increasingly learning
to view their clients as potential customers for life. (ABI/INFORM)
Consumers just can't wait to be satisfied: interaction between
customer, employee is critical.
Schlossberg, Howard
Marketing News v25 Feb 4, 1991, p!3(l)
Massachusetts Institute of Technology Sloan School of Management
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Dir of Systems Thinking and Organizational Management Program Peter
Senge, in his book 'The Fifth Discipline1, shows how firms can
deliver customer satisfaction by creating a 'learning
organization1. Senge, who runs a management training and consulting
firm, Innovation Associates Inc (Framingham, MA) , has created a
framework for measuring and delivering customer satisfaction. A
learning organization is forward thinking and alert to trends and
has organizational mechanisms to keep it that way. Senge believes
that the key components of delivering quality customer service are
the treatment of employees, who will treat customers as they are
bring treated, and sources of innovation, which require a
commitment of management to long-range problem solving and systems
thinking. (MANAGEMENT CONTENTS)
Transforming customers into kings.
(customer service) (Total Quality)
Crainer, Stuart
Accountant's Magazine v94 Feb, 1990, p21(2)
Quality customer service is essential to business success and must
involve every employee and every manager to make sure quality
standards are adhered to and become part of the corporate culture.
Trends indicate that increased customer sophistication is leading
to market segments becoming smaller and more focused. Customers
will buy products and services that most closely meet their needs,
meaning that companies must exploit and defend specialized niches.
A survey conducted by the Massachusetts Institute of Technology
indicates that 77% of innovations in the scientific instruments
industry are developed by customers rather than manufacturers,
indicating that open and close communication with customers is
vital for business success. Companies must listen to and
communicate with customers to turn market research into viable
strategic decisions and to implement a continuous process of
assessment and improvement of customer service. (MANAGEMENT
CONTENTS)
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VL SELECTED LIBRARY RESOURCES ON THE CUSTOMER STRATEGY
The following selections are highlights from the EPA Library
Network on effective customer service. These books, videos and
journal articles may be requested through the EPA Headquarters
Library, and other EPA Network Libraries.
A. Books
Managing to Keep the Customer: How to Achieve and Maintain
Superior Customer Service Throughout the Organization
Robert L. Desatnick.
Region 8 Library HF5415.5.D47 1987
Complete Guide to Customer Service
Linda M. Lash.
AWBERC Library, Cincinnati HF5415.5.L37 1989
Delivering Quality Service: Balancing Customer Perceptions and
Expectations
Valarie A. Zeithaml.
AWBERC Library, Cincinnati HF5415.5.Z45 1990
Winning Ways: Achieving Zero-Defect Service
Jacques Horovitz.
Region 3 Library HF5415.5.H6313 1990
How to Develop Quality Measures that are Useful in Day-to-Day
Management
This paper has been prepared by staff of the Federal Quality and
Productivity Improvement Program in the Office of Management and
Budget.
PB91-155150
Region 9 Library HF5414.4.H687
Customer Satisfaction through Total Quality Assurance
Robert W. Grenier.
Region 3 Library TS156.6.G74 1988
Purple Pages
Jeffrey Feinman.
AWBERC Library, Cincinnati HC110.C63F4
Administration as Service, the Public as Client
OECD
Headquarters Library JF1525.P8A36 MGMT
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Customer Connection Quality for the Rest of Us
John Guaspari.
AWBERC Library, Cincinnati HD38.G765 1988
B. Videocassettes
Listening Leaders
Video Arts, 1989.
(30 minutes)
Headquarters Library HF5415.5.L57 MGMT
customer is Always Dwight: How to Achieve 100% Quality the First
Time, Every Time
Video Arts Limited, 1988.
(22 minutes)
Headquarters Library HD31.C87 1988
C. Audiocassette
How to Give Exceptional Customer Service
Lisa Ford.
Region 3 Library HF5415.5.F67
D. Management Journals
Administrative Science Quarterly
Published quarterly by the Johnson Graduate School of Management at
Cornell University.
California Management Review
Published quarterly by the Haas School of Business of the
University of California, Berkeley.
Harvard Business Review
Published bimonthly by the Graduate School of Business
Administration, Harvard University.
Public Personnel Management
Published quarterly by the International Personnel Management
Association - United States.
Supervisory Management
Published quarterly by the Sloan Management Review Association, MIT
Sloan School of Management.
Training
Published monthly by Lakewood Publications Inc.
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MANAGEMENT BIBLIOGRAPHY COLLECTION
Bibliographies on topics of current management interest are
produced on a quarterly basis by the Headquarters Library staff.
Following is a list of the most recent management Bibliographies.
1. LEADERSHIP STYLES
by Sigrid N. Smith, December 1991
EPA/IMSD/0/91-019
2. TEAMWORK: EMPLOYEE INVOLVEMENT
by Sigrid N. Smith, September 1991
EPA/IMSD/91-013
3. PUBLIC POLICY MECHANISMS: NON-REGULATORY OPTIONS FOR
ENVIRONMENTAL PROTECTION
by Sigrid N. Smith, June 1991
EPA/IMSD-91-006
4. EFFECTIVE CONFERENCE PLANNING
by Sigrid N. Smith, March 1991
EPA/IMSD-91-002
5. CONTRACT MANAGEMENT
by Mary Hoffman and Sigrid N. Smith, January 1991
EPA/IMSD-91-001
6. MANAGING A DIVERSE WORKFORCE
by Anne Twitchell, June 1990
EPA/IMSD-90-007
7. PROJECT MANAGEMENT
by Anne Twitchell, June 1990
EPA/IMSD-90-1990
& STRATEGIC PLANNING
by Anne Twitchell, March 1990
EPA/IMSD-90-005
9. TOTAL QUALITY MANAGEMENT
by Anne Twitchell, December 1989
EPA/IMSD-89-009
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