Copyright 2012 Frances Frei and Anne Morriss All rights reserved Printed in the United States of America 10 9 8 7 6 5 4 3 2 1 No part of this publication may be reproduced, stored in or introduced into a retrieval system, or transmitted, in any form, or by any means (electronic, mechanical, photocopying, recording, or otherwise), without the prior permission of the publisher. Requests for permission should be directed to [email protected], or mailed to Permissions, Harvard Business School Publishing, 60 Harvard Way, Boston, Massachusetts 02163. Library of Congress Cataloging-in-Publication Data Frei, Frances. Uncommon service : how to win by putting customers at the core of your business / Frances Frei, Anne Morriss. p. cm. ISBN 978-1-422-13331-6 (alk. paper) Customer relations. 2. Customer services. 3. Service industries— Management. I. Morriss, Anne. II. Title. HF5415.5.F728 2012 658.8'12—dc23 2011029760 The paper used in this publication meets the requirements of the American National Standard for Permanence of Paper for Publications and Documents in Libraries and Archives Z39.48-992. How to Win by Putting Customers at the Core of Your Business FRANCES FREI | ANNE MORRISS HARVARD BUSINESS REVIEW PRESS Boston, Massachusetts Advance Praise for Uncommon Service “If you believe in service excellence, you must read this book. In it you will discover the importance of making the right choices and trade-offs in your business model so that your team can consistently deliver uncommon service.” —Carlos Rodríguez-Pastor, Chairman, Interbank Group “Frances Frei and Anne Morriss’s Uncommon Service is a joy to read and a treasure to study. The authors provide both theories of how great service works and case studies that demonstrate how to make it happen. Always intuitive, never patronizing, and really smart, Uncommon Service will help any executive—in a big company or small, public firm or nonprofit organization—think creatively about how to deliver service that truly works.” —Debora Spar, President, Barnard College “Uncommon Service is about how to deliver service excellence by design. It shows managers how to satisfy customers—not just on your organization’s best days, but as an everyday routine.” —Tom Watson, Dean, Omnicom University; Cofounder and Vice Chairman Emeritus, Omnicom Group, Inc. To our mothers and our sons, who inspire us to serve Contents Cover Copyright Acknowledgments Introduction If This Is a Service Economy, Why Am I Still on Hold? Chapter 1 Truth Number 1: You Can’t Be Good at Everything Chapter 2 Truth Number 2: Someone Has to Pay for It Chapter 3 Truth Number 3: It’s Not Your Employees’ Fault Chapter 4 Truth Number 4: You Must Manage Your Customers Chapter 5 Now Multiply It All by Culture Chapter 6 Getting Bigger Conclusion Notes Index About the Authors Acknowledgments One of the gifts of working in academia is that you are surrounded by people who devote themselves to the art of education. They have no choice but to teach, and you have no choice but to learn, more often than not from every conversation. Throughout the book we have tried to celebrate the thinkers who have influenced us along the way, many of them colleagues who drive into the same parking lot every day. No doubt, we have fallen short. We owe a particular debt of gratitude to the breakthrough work on services done by Ben Schneider and David Bowen, authors of Winning on Service, and Earl Sasser, Jim Heskett, and Len Schlesinger, authors of The Service Profit Chain. By capturing the importance of organizational design and the vital role that service employees play in building healthy companies, these books changed the way the world thought about the business of service. We have also been deeply influenced by the moral and intellectual courage of Clay Christensen, author of The Innovator’s Dilemma. Clay has an extraordinary ability to distill out the essential truths of a complex world. Our hope in writing this book is to give people the tools—and audacity—to go out and change organizations. Youngme Moon, author of Different, embodies this type of leadership. She has given us, and so many others, permission to dream. Like Youngme, most of the messengers in this book study business. We don’t typically associate service with the crass act of making money, yet for millions of people every day, the bulk of their human interactions takes place in a commercial setting. Do we really lose our humanity once we climb into the capitalist arena and add profit to the spoils? Of course not. Which means that we should be able to resolve the gap between the very human desire to serve and the frustrating service experiences we’re now asking each other to endure. It is a gap, we believe, the world is ready to close. Introduction If This Is a Service Economy, Why Am I Still on Hold? We live and work in a service economy. In 1950, industrial workers represented the single largest employment sector in any developed country. Today, 80 percent of jobs are in service, and service represents 80 percent of the U.S. gross national product. We cherish good service. In survey after survey, it’s an enormous differentiator in our experience as consumers. Companies that deliver service excellence get a disproportionate share of our income, and our loyalty to them is often difficult to shake. In researching this book, we encountered more than a few people who were brought to tears as they recalled an empathetic insurance provider or an airline experience that made them feel human, despite their screaming infant or lost luggage. We find deep meaning in the act of serving. We’ve been devising ways to take care of each other—and celebrating the results—since the human story was first documented. Developmental psychologists tell us that a willingness to help strangers is a trait that most people exhibit at as young an age as eighteen months. It’s an almost universal impulse to serve, one that can get crowded out by other instincts, certainly, but if you peel back the layers of what motivates us, more often than not you’ll find a very core ambition to be useful to others. And yet. Good service is still, for the most part, rare. In our experience as economic actors, in industry across industry, we’re increasingly frustrated and disappointed. Customers, employees, owners—no one wants to deliver bad service, and no one wants to endure it. But that’s the experience we continue to inflict on each other. Why is that? This is the question that animates this book—why is service so hard to get right, despite the fact that we’re wired for it? How can we channel the human impulse to serve into greater productivity, greater returns, and greater satisfaction all around? Here’s what we’ve learned: uncommon service is not born from attitude
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