#TFT12 Ian clayton

Next generation service
management thinking for
the ‘age of the customer’
Ian clayton

Universal
Service
Management

Body
of
Knowledge
(USMBOK)

Next
Genera>on
Service
Management
Thinking

For
the
‘Age
of
the
Customer’

Copyright © 2012 VKSII, All Rights reserved

Your
Guide

Ian
M.
Clayton

•  38
years
in
IT
Ian Clayton

•  Author
of
the
Universal
Service
Management

Principal
Service Management 101

Body
of
Knowledge
(USMBOK™)

•  Pioneer
of
outside-in
thinking
for
service
provider

organiza>ons

•  “I
rescue
ITSM
projects
and
help
service
provider

organiza9ons
ensure
the
customer
and
service

experience
is
managed”.


How
to
Contact
Me

•  Email:
ian@servicemanagement101.com

•  Support:
support.usmbok.com

•  Blog,
discussions
and
public
Q&A

  www.servicemanagement101.com

•  Twi[er:
www.twi[er.com/ianclayton

•  Skype:
ianmclayton


Topics

•  The
service
society
and
‘age
of
the
customer’

•  Why
tradi>onal
IT
Service
Management
(ITSM)
‘projects’
fail

•  The
o_en
forgo[en
heritage
of
service
management
thinking

•  The
elements
of
‘next
genera>on
service
management’

•  A
customer
centric
approach
and
how
to
start
your
true
service

management
journey,
from
the
‘outside-‐in’.


“The
loss
of
focus
on
the
customer

as
a
human
being
is
probably
the

single
most
important
fact
about

the
state
of
service
and
service

management
in
the
Western
world

today”

Karl
Albrecht,
c1992

‘The
Only
Thing
That
Ma[ers’


The
Service
Society

•  We
live
in
a
service
society
and

‘age
of
the
customer’

dominated
by
outcomes
and
the
‘service
experience’

•  Experiences
using
products
and
interac>ng
with
these
and

their
providers
shapes
our
percep>on
of
value

•  Our
level
of
sa>sfac>on
is
formed
from
whether
we
achieved

our
desired
outcomes,
with
what
experience,
and
at
what

cost

•  This
“feeling”
acts
as
the
basis
for
loyalty
and
advocacy,
and

forms
our
general
percep>on
about
the
quality
of
a
service,

and
the
capabili>es
of
its
provider
or
service
business.


Today’s
Inﬂuences...

•  Working
from
home/remotely
–
telecommu>ng

•  Decentralized
infrastructure
-‐
cloud
compu>ng
and

virtualiza>on

•  Mobility
-‐
A3
(anywhere,
anyhow,
any>me)

•  Bring
Your
Own
Device
-‐
BYOD

•  Touch
(Hap>c)

-‐
4S,
“swipe,
swipe,
select,
submit”

•  Voice
Direc>on,
Instruc>on

  “Open
the
pod
bay
doors
Hal”

  “In
500
yards
take
the
next
le_”


The
New
IT

•  Focus
change
from
technology
farmer
and
innovator
to

technology
exploiter,
business
growth
enabler

•  Operate
and
be
performance
managed
as
an
informa>on

service
provider

•  Provide
a
customer
(service)
experience
on
par
with
non-‐IT

service
businesses

•  Deliberately
and
con>nuously
engage
the
customer

•  Successful
IT?

Become
‘invisible
technology’.


IT
Management
Impera>ves

•  A
more
agile
and
responsive
IT
investment
decision-‐making

process

•  Complete
alignment
of
IT
opera>ons,
programs
and

ini>a>ves
with
business
goals

•  Cost eﬀective
use
of
all
types
of
technology
and
IT
resources

•  PAYGO
-‐
utility
styled
informa>on
services
access
and
cost

model.


IT’s
Tradi>onal
Response

•  Reengineer
prac>ces

•  Improve
processes

•  Mature
capability
of
processes
versus
a
framework

•  Conform
to
a
standard
–
such
as
ISO/IEC
20000-‐1

•  Encapsulated
in
the
term
‘IT
Service
Management’
-‐
ITSM.


Tradi>onal
ITSM

is
failing
the
Customer

and
its
management
sponsors.

Why?


How
many
of
these
ques>ons
can

you
answer?


“What
business
are
you
in?”


“Who
are
your
customers?”

(Pick
one...)


“What
ac>vi>es
do
your
customers

perform
in
pursuit
of
success?”

(Pick
one...)


“How
do
you
help
your
customers
perform

these
ac>vi>es?”


“What
do
your
customers
experience
when

they
use
your
services
or
interact
with
your

organiza>on?”


“How
sa>sﬁed
are
your
customers
with
the

help
you
provide?”


Tradi>onal
ITSM
thinking
can
result

in
you
producing

a
human
‘car
wash’.

A
place
that
processes
people
and

their
requests
through
the
facility

rather
than
ensuring
a
desired

outcome
and
crea>ng
a
total

experience
and
‘feeling’
of
value.


Tradi>onal
ITSM
is
‘inside-‐out’
and

not
how
successful
service

businesses
manage
service
delivery

and
support.


‘inside-‐out’
indicator
#1

“The
view
of
our
customers,
what
they
care

about,
and
how
we
serve
them,
diﬀers

signiﬁcantly
across
the
organiza>on”


‘inside-‐out’
indicator
#2

“Key
service
staﬀ
are
unable
to
state
easily,

clearly
and
brieﬂy
who
our
customers
are,

what
we
do
for
them,
and
the
basis
for

measuring
customer
sa>sfac>on”


‘inside-‐out’
indicator
#3

“When
compared,
more
>me
is
spent
on

internal
issues,
processes
and
conﬂicts
than

on
discussing
the
customer
needs,

expecta>ons,
and
service
experience”


‘inside-‐out’
indicator
#4

“Few
of
our
decisions
are
explicitly
driven

by
customer
needs”


‘inside-‐out’
indicator
#5

“We
have
trouble
adap>ng
to
normal

varia>ons
in
the
customer
opera>ons
and

get
blindsided
by
changes
in
strategy
and

behavior”


‘inside-‐out’
indicator
#6

“We
are
trying
to
apply
one
rigid
prac>ce

or
process
framework
to
all
customer

situa>ons
(consumer
scenarios)”


‘inside-‐out’
indicator
#7

“We
do
not
know
how
our
eﬀorts
relate
to

the
interests
and
success
of
our
customers”


Its
>me
to
press

RESET
and
REWIND

on
the
‘Service
Management’

bu[on.

Why?


IT<SM:

“Service
management

concepts
and
methods
applied

to
the
challenges
of
an
IT

organiza>on
being

performance
managed
as
a

service
provider”


Fi_y
Years
of
Service
Management


Father
of
‘Customer
Centricity’

Theodore
Levi[

•  Levi[
was
a
provoca>ve
writer,
epitomized
by
his
descrip>on
of

the
Harvard
Business
Review,
“a
magazine
wri?en
by
people

who
can’t
write
for
people
who
won’t
read”

1925-‐2006

•  Levi[
was
a
pioneer
in
product
and
service
marke>ng,

posed
the
simple
ques>on
in
his
inaugural
ar>cle

‘Marke>ng
Myopia’
published
in
the
Harvard
Business

Review
July-‐August
1960:

“What
business
are
you
in?”

•  It
was
not
so
much
an
ar>cle
as
a
manifesto.

•  Levi[
wove
a
powerful
argument
that
companies
should
stop

deﬁning
themselves
by
what
they
produced
and
instead
reorient

themselves
toward
customer
needs
and
sa>sfac>on.


Father
of
Service
Management

Richard
A.
Normann

•  Authored
the
ﬁrst
book
on
the
topic
of
‘service

management
in
1984’,
(Service
Management:
Strategy

and
Leadership
in
Service
Businesses)

•  The
book
discussed
the
role
of
services
in
society,

technology
in
services,
and
the
need
for
a
streamlined

service
management
system.

•  Other
key
concepts
discussed
included:

  Moments
of
truth,
Self-‐service
1943-‐2003

  Service
delivery
system

  Service
concept
and
the
service
‘package’

  Service
management
system
components.


Service
Management

Is
about
managing

“a
service”

and

managing
“service”
as
an
experience

from
the
outside-‐in.


The
Language
of
Service

Management


Outside-‐In
Thinking

Guaranteed
customer
centricity

•  Outside-‐In
thinking
is
a
philosophy
and
management
approach

that
ensures
you
place
the
interests
of
your
customers
ahead
of

your
capabili>es

•  An
explicit
customer
reason
is
embedded
in
every
decision
made

by
the
service
business
or
service
provider

•  Organiza>ons
applying
outside-‐in
focus
on
sa>sfying
their

customers
by
delivering
a
powerful
combina>on
of
a
‘successful

customer
outcome’
and
a
superior
service
experience

•  Outside-‐in
also
helps
you
measure
your
success
and
target

improvement
from
the
customer
perspec>ve.


Steve
Towers
–
“Mr.
Outside-‐In”

•  Steve
is
one
of
industry's
noted
experts
in
Business

Process
Management
(BPM),
performance

transforma>on
and
Customer
Experience

Management
and
co-‐founder
of
the
BP
Group

•  Through
research
and
‘hands-‐on’
exposure
to
the

world’s
leading
companies
he
has
pioneered
the

evolu>on
of
BPM
and
'Outside
In
’
thinking

•  In
2011
Steve
was
entered
into
the
Architecture
&

IT
World
Hall
of
Fame

•  h[p://www.stevetowers.com.


The
Outside-‐In,
Inside-‐Out
(OI-‐IO)

Con>nuum™

The
Outside-‐In
(OI)
Inside-‐Out
(IO)
Con=nuum™

Scenarios
Channels
Workﬂow
Infrastructure
Tradi=onal

USMBOK
Value

Access
Points
Service

Alignment

Standard
Item
ITSM

Rela=onship
Request
Service
Work

Touchpoints

Product
Best
Prac=ce

Asset
Frameworks

Customer
Pathway

Infrastructure

Customer

Centricity

Successful
Resource

Centricity

Experience
Outcomes
Service
Brand
Process

Event

Complaint
Encounter
Expecta=on
Incident

Emo=ons

Alert

Sa=sfac=on
Interac=ons
Back-‐Stage
Capability

Service

Ar=fact

Loyalty
Experience
Moments
of
Problem
Maturity

Truth
Procedure

Advocacy
Contact
Defect
Support

Center
On-‐Stage
Processes
Func=on

OUTSIDE
The
Service
Management
System
Source
USMBOK™,
©
2009
Ian
Clayton

INSIDE

Proac>ve
Experience
Service
Goods

Commodi=es

Reac>ve

•  Posi>ons
key
concepts
and
terms
based
upon
inside-‐out,
or
outside-‐in
bias

•  Represents
the
span
of
centricity
and
transforma>on
journey
of
a

prospec>ve
service
organiza>on

•  Provides
context
for
a
transforma>on
journey
driven
by
a
con>nuous

improvement
program

USMBOK
P94


Customer
Sa>sfac>on

Designed,
measured
and
managed
from

moments
of
truth
within
a

service
encounter.

Sa>sfac>on-‐>Loyalty-‐>Advocacy.


Service
Encounter

•  Every
day
each
of
one
of
has
many
‘service
encounters’

•  “An
episode
where
a
customer
comes
into
contact
with
any

aspect
of
a
product,
or
service
organiza>on
and
gets
an

impression
of
its
quality

•  An
encounter
is
prompted
by
a
service
request

•  Within
each
are
consumer
(customer)
and
provider
ac>ons,

interac>ons,
moments
of
need,
and
moments
of
truth.

•  At
its
core
is
a
‘consumer
scenario’
and
‘user
stories’.


The
Service
Encounter
Rules

•  Knowing
when
and
where
service
encounters
occur
is
a

mandatory
ac>vity
for
a
service
organiza>on

•  Service
encounters
and
the
support
ac>vi>es
they
ini>ate
are

pre-‐designed
into
product
and
service
oﬀerings

•  Service
encounters
span
third-‐party
involvement

•  Where
an
encounter
starts
and
ends
is
‘nego>able’

•  Service
encounters
play
a
vital
role
in
customer
sa>sfac>on
and

thus,
to
the
provider’s
overall
success,
and
are
represented
in

the
service
management
system
by
a
‘service
request
pathway’.


Moment
of
Truth

•  A
vital
interac>on
between
the
consumer
and
the
provider,

represen>ng
an
instance
where
the
customer
has
an
opportunity

to
form
(or
change)
a
percep>on
about
any
aspect
of
the
service

experience,
service
organiza>on,
and
its
products
and
services

•  The
percep>on
can
include
the
quality
of
the
service
and
the

capability
of
the
service
business
or
service
provider

organiza>on

•  Moments
of
Truth
act
as
key
indicators
in
determining
and

measuring
the
level
of
‘customer
sa9sfac9on’

•  Every
service
encounter
has
at
least
three
moments
of
truth

represented
by
the
‘greet’,
the
‘use’,
and
the
‘thank
you’
or
‘exit’

interac>ons.


The
Magic
Number
-‐
“42”


“Next
Genera>on”
Architecture

4
key
elements
–
engage,
request,
support,
improve


Pillars
of
Service
Support

Break-‐ﬁx,
helping-‐hand,
service
recovery,
complaint

handling

CUSTOMER

SATISFACTION

CUSTOMER
ENGAGEMENT
STRATEGY

CUSTOMER

RELATIONS

INTERACTIONS

Feedback

SERVICE
RECOVERY

Encounter

HELPING
HAND

COMPLAINT
&

COMPLIMENT

BREAK-‐FIX

IMPROVEMENT

Emo=ons

CONTINUOUS

MARKETING

SERVICE

4Es

Expecta=on

Moments
of
Truth

Moments
of
Need

Source:
USMBOK
Experience

PLANNING

SERVICE

Sa=sfac=on
level

(CUSTOMER)
SERVICE
SUPPORT

OPPORTUNITY
IMPACT
PROBLEM

MANAGEMENT
MANAGEMENT
MANAGEMENT

USMBOK
P170,
433


Outside-‐In
and
Inside-‐Out

service 
delivery channel!
request!
consumer action!
“42”! moment  moment 
interaction! of  of 
consumer

truth! need!
scenario! front stage action!
back stage action!
support processes! IO!
OI! level of satisfaction!
CopyrightCopyright © 2012 VKSII, All Rights reserved reserved
© 2012 Service Management 101, All Rights

Outside-‐in

Con>nuous
Improvement

Approach:
Map, inspect and improve, one service
encounter (request) at a time as part of an
ongoing continuous improvement program.

Consumer

Problem

Scenario
Problem
Improvement
Change

Opportunity
Workshop

and
Hypothesis

Queue
Queue
Schedule

Story

30-‐60-‐90
Cycle


How
o_en
do
you
go
on
a
service
safari
to

observe
your
customers
in
their
natural

habitat?


Are
you
asking
what
process
to

implement
ﬁrst,
or
what
services
to

catalog,
instead
of
what

consumer
scenario
to
capture

and
what
service
encounter

to
inspect?


Summary

•  We
are
in
the
service
society
and
‘age
of
the
customer’

•  Tradi>onal
ITSM
‘projects’
are
inside-‐out
and
failing
the

customer

•  We
need
a
‘next
genera>on
service
management’
approach
that

is
outside-‐in
and
true
to
origins
of
service
management

•  The
journey
can
start
today
with
an
approach
that
engages
the

customer,
understands
and
improves
the
service
experience,

through
a
program
of
con>nuous
improvement.

•  The
path
to
opera>onal
and
service
excellence
is
through

recognizing
our
heritage,
and
thinking
and
ac>ng
outside-‐in.


Universal
Service
Management

Educa>on

•  h[p://www.usmbok.com

•  h[p://support.usmbok.com

•  h[p://www.twi[er.com/usmbok

•  h[p://www.udemy.com/courses/search?q=usmbok

•  ian@servicemanagement101.com.


Universal
Service
Management

Body
of
Knowledge
(USMBOK)

Ques>on
and
Answers

www.servicemanagement101.com
(‘Q&A’)


The
USMBOK
Series

‘Rose[a
Stone’
for

service
management

Framework,
system,
organiza>on

Universally
applicable
to
any
service
business
or
anyone

performance
managed
as
a
service
provider
organiza>on

Companion

prac>>oner

guides

Lexicon
of

Terms
(1200+)


WITH THANKS TO OUR SPONSOR
bmc remedyforce

#TFT returns june 2013

#TFT12 Ian clayton

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