lessons in service excellence neeli bendapudi, ph. d
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Lessons in Service Excellence
Neeli Bendapudi, Ph. D.Fisher College of BusinessThe Ohio State University
Columbus OH 43210(614) 292-2959
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Thinking Outside the Box
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Look at the world through your customer’s eyes
Production orientation or marketing orientation
Attributes versus benefits
What we make versus what is sold
To develop a relationship,
know what your customers are really looking for
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What is this customer really buying?
Toothpaste
Beer
Nails and hammer
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Healthcare is a fascinating service
to study
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Being a patient is just about the least
amount of fun one can have as a
consumer
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Mayo Clinic ProfileIntegrated multi-specialty group practice ─ inpatient and outpatient
Academic medical center focused on patient care, education, and research
Physician-led
Three clinic campuses in Rochester, Scottsdale, and Jacksonville and a regional network of smaller practices
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Mayo Clinic Growth
One Location
Outpatient Clinic
$381 million in revenue
7,500 FTE employees and students
Multiple locations
Clinic, hospitals, primary care network, lab testing, medical technology development, and health publishing businesses
$4,135 billion in revenue
38,000 FTE employees and students
1983 2001
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Research Problem
“The Ideal Service Experience”
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Disciplines StudiedMayo Rochester
Emergency Department
Medical and Radiation Oncology
Orthopedic Surgery
Cardiology
Cardiac Surgery
Executive Exam
Endocrinology
Mayo Scottsdale
Dermatology
Family Medicine
Transplant Surgery
Gastroenterology
Thoracic Surgery
Urology
Neurology
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MethodsInterviews
Personal interviews with individuals and groups (patients and Mayo staff)
Telephone interviews with patients
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Participant Observations
Hospital rounds
Exam-room observations
Inpatient and outpatient experiences
Mayo One
Surgeries
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Lessons from the Mayo Clinic
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Lesson #1: Create Value Through Values
The right employee values translate to superior
customer value.
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Organizational Values
Organizational values always matter, but are
especially critical in organizations characterized by:
Intensity, dynamism, and complexity
High physical and emotional stress
High need for collaboration
High need for team members to have confidence in one another
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Mayo Hires for Values
All job descriptions contain the technical skill specifications and the core Mayo principles.
Behavioral interviews emphasize employee values.
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Mayo Reinforces Values
All allied health staff go through a 2½ day orientation program
Mix of professions and ages
Role playing and discussion
Integrate with work group orientation
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Why So Extensive?
Growth!
Illustrate “lived” values
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Beyond Orientation
Ongoing education
Organizational storytelling
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Wedding pics here
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Payoffs
Pride in working at Mayo
Sense of belonging
Reduced turnover
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Creating Value Through Values:Implications for Marketers
Articulate your cherished values.
Hire for values. Talent isn’t enough.
Make reinforcing values everyone’s job.
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The Container Store
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Lesson #2: Managing the Evidence
Medical Services Are:
Intangible
Complex
Inherently personal
Personally important
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How do patients evaluate medical service quality?
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Orchestrating the Clues of Service
Humanics:Clues Emitted by People
Mechanics:Clues Emitted by Things
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Humanics
“The wearing of business attire rather than white coats is recognized by our patients as a unique dress code that projects an aura of expertise and respect for the patient accompanied by warmth and friendliness.”
Mayo Clinic Model of Care
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Mechanics
Minimize impression of crowding
Facilitate way-finding
Accommodate families
Be pleasing to employees
Enhance practice integration
Relieve stress and offer a place of refuge
Create positive distractions
Convey caring and respect
Symbolize competence
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The issue for managers is not whether humanics and mechanics clues will tell a story of the service – because they will.
The issue is whether the clues will they tell the right story.
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Managing the Evidence:Implications for Marketers
Know the story you want to tell
Articulate a clear strategy to guide evidence-management efforts
Orchestrate what customers can see and understand in the service experience
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Chico’s
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Lesson #3: Team Service
Mayo Clinic patients don’t just get a doctor, they get the Mayo Clinic.
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Mayo Clinic Team Service Model
Pools talent where needed
Fosters organizational competence and stamina
Leverages peer pressure
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Team Service
Team service makes the most sense when:
Customer demand is uneven and sometimes urgent
Customer needs are diverse requiring a portfolio of skills at the ready
Speed and accuracy are essential
Multiple service providers contribute to the customers’ experience.
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Team Service Reinforcers at Mayo Clinic
One overriding principle
A consensus culture
Institutional primacy
Free cooperation
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Team Service: Implications for Marketers
Offer the customer the whole company not just a piece of it.
Give the team a theme -- a reason for being, a common purpose.
Leverage peer performance pressure.
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Walgreen’s
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Lesson #4: Systematic Knowledge Sharing
Systematic knowledge sharing is critical to the collective competency of the organization.
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Medicine is too complex for any one person to authoritatively master all its developments and nuances.
The patient, as a human being, is too complex for any one caregiver to understand the psycho-social aspects of care.
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Prerequisites for Systematic Sharing
Motivation to share
Ability to share
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Motivation to Share
Collaborative culture
Aligned compensation systems
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Ability to Share
Facilitated contact
Technology
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Facilitated Contact
Weekly grand rounds presentations
Physician meetings
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Technology
Electronic Medical Record
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Systematic Knowledge Sharing:Implications for Marketers
Encourage a learning organization.
Encourage a teaching organization.
Make it rewarding for employees to share.
Make it easy for employees to share.
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Giant Eagle
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Lesson 5: Experience-based Branding
More American consumers prefer Mayo Clinic to any other institution if they have a serious medical condition and their personal finances or health plan are not an impediment.
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More than 90 percent of patients willingly say
good things to others about Mayo Clinic.
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Mayo Clinic leaders through the years have intuitively understood
that Mayo caregivers are the “living brand.”
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Mayo Clinic invests in performance rather than promises -- the essence of
experience-based branding.
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“There’s a humbling lesson here for marketers. Great brands, in the end, require great products or great services. Perhaps we in marketing exaggerate our importance in the building of great brands, particularly great service brands. The things we do to create buzz in the marketplace are clearly secondary to word-of-mouth in consumer’s selection of healthcare providers.”
-- Kent SeltmanDirector of MarketingMayo Clinic
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Experience-based Branding:Implications for Marketers
Companies cannot buy strong brands; they have to earn them by pleasing customers.
The more consequential, complex, and variable the service, the greater customers’ need for brand reassurance.
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“. . . if we excel in anything, it is in our capacity
for translating idealism into action.”
-- Dr. Charles Mayo