Uncommon Service cover

Uncommon Service

How to Win by Putting Customers at the Core of Your Business

byFrances Frei, Anne Morriss

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4.08avg rating — 825 ratings

Book Edition Details

ISBN:9781422133316
Publisher:Harvard Business Review Press
Publication Date:2012
Reading Time:10 minutes
Language:English
ASIN:N/A

Summary

Service shouldn't be the shadowy figure that only appears when things go wrong. In "Uncommon Service," Frances Frei and Anne Morriss illuminate a transformative business strategy where service becomes the linchpin of success rather than an afterthought. Against the backdrop of a tumultuous economy where traditional advantages are crumbling, this book champions service as a bold competitive edge. It challenges companies to integrate service into the fabric of every decision, asking tough questions about customer excellence, employee empowerment, and the delicate dance of customer behavior. This engaging and insightful read uncovers a blueprint for leveraging service to enhance productivity and profitability, urging businesses to rethink the very essence of their operations.

Introduction

Why do we continue to encounter frustrating service experiences despite living in a supposedly service-driven economy? The paradox is striking: while 80 percent of jobs exist in service sectors and we deeply value exceptional service when we receive it, mediocre or disappointing service remains the norm across industries. The authors present a revolutionary framework that challenges conventional wisdom about service excellence. Rather than viewing service quality as a matter of effort and attitude, they argue that uncommon service emerges from deliberate design choices embedded within a business model's very foundation. This theoretical approach centers on four fundamental service truths that work in concert: strategic trade-offs that prioritize some dimensions over others, sustainable funding mechanisms, employee management systems that enable rather than hinder excellence, and active customer management strategies. The framework reveals how organizations can create systematic conditions where average employees consistently deliver exceptional service, transforming the hit-or-miss nature of service delivery into predictable excellence through intentional organizational design.

The Four Service Truths Framework

The foundation of service excellence rests on four interconnected principles that form a comprehensive theoretical framework for understanding and designing superior service experiences. This framework challenges the intuitive belief that organizations should strive for perfection across all service dimensions, instead proposing a more strategic and sustainable approach. The first truth establishes that excellence requires deliberate underperformance in some areas to achieve superiority in others. This counterintuitive principle suggests that trying to be good at everything inevitably leads to mediocrity everywhere. Organizations must make conscious choices about where to excel and where to accept weakness, guided by deep understanding of customer priorities. The second truth addresses sustainability by requiring that service excellence be funded through one of four mechanisms: charging customers more in palatable ways, reducing costs while improving service, improving service while reducing costs, or engaging customers as productive participants in service delivery. The third truth shifts focus from blaming employees for service failures to examining the systems within which they operate. Rather than assuming that poor service stems from inadequate effort or attitude, this principle recognizes that service failures typically result from poorly designed employee management systems that set people up to fail. The fourth truth acknowledges customers as active participants in service creation, not merely passive recipients, requiring deliberate management strategies to optimize their contributions. Together, these truths create a holistic framework where each element reinforces the others, enabling organizations to achieve sustainable service excellence through systematic design rather than heroic effort.

Building Excellence Through Culture and Design

Service excellence emerges from the multiplication of two equally important factors: organizational design and culture. This mathematical relationship demonstrates that neither element alone can create sustained superior performance, as weakness in either area fundamentally limits overall achievement regardless of strength in the other. Organizational design encompasses the structural elements that enable service delivery: the specific trade-offs that define the service offering, the funding mechanisms that make excellence economically viable, the employee management systems that set people up for success, and the customer management strategies that optimize user participation. These design elements must work in perfect harmony, with each supporting and reinforcing the others. Culture, meanwhile, represents the shared assumptions, values, and behaviors that guide daily decision-making throughout the organization. Effective service culture requires three essential components: clarity about the specific cultural attributes needed to support the service model, consistent signaling of values through recruiting, training, and leadership behaviors, and unwavering consistency in aligning cultural messages with operational realities. Organizations that excel at service often demonstrate remarkable cultural coherence, where employees at every level understand not just what to do, but how to think about their role in creating customer value. This cultural foundation becomes particularly crucial in service industries where customers directly interact with the organization's operations, making every employee interaction a reflection of the company's values and commitment to excellence.

Customer Management and Operational Strategy

Customers in service industries function as unpaid, untrained, and unmotivated employees who nonetheless play critical roles in determining the quality and cost of service delivery. This recognition transforms customer management from a peripheral concern into a central operational strategy requiring the same systematic attention given to employee management. Customer variability manifests in five primary forms that create operational complexity: arrival patterns that don't align with organizational convenience, diverse requests that strain standardized systems, varying capabilities that affect service delivery efficiency, inconsistent effort levels in participating in service processes, and subjective preferences that multiply the challenge of meeting expectations. Organizations can address this variability through two primary approaches: reducing it through standardization and constraints, or accommodating it through flexible systems and premium pricing. The most sophisticated approach involves creating customer management systems that parallel employee management frameworks. This includes customer selection processes that identify operationally compatible users, training programs that educate customers about their roles in service delivery, job design that makes customer participation intuitive and valuable, and performance management systems that encourage productive customer behavior. Successful organizations often leverage normative values and community-building to motivate customer cooperation, recognizing that shame, pride, and social connection prove more effective than financial incentives in managing customer behavior. This strategic approach to customer management transforms potential operational chaos into a competitive advantage, enabling organizations to deliver superior service while maintaining operational efficiency.

Scaling Service Models for Growth

Growth in service organizations presents unique challenges that require careful consideration of the relationship between standardization and quality. Organizations face a fundamental choice between expanding existing service models or creating multiple distinct models under a shared organizational umbrella, each demanding different strategic approaches and operational capabilities. Scaling existing service models typically requires increased standardization to maintain quality and efficiency across larger operations. This process often feels uncomfortable as it seems to reduce responsiveness to individual customer needs, but effective standardization can actually enhance the customer experience by ensuring consistency and reliability. The key lies in strategic point-of-sale customization, where customers can personalize their experience within carefully designed parameters while the underlying operational system remains standardized and efficient. The alternative approach involves building multifocused organizations that operate multiple service models simultaneously, each optimized for distinct customer segments or operational requirements. This strategy succeeds through shared services that create economies of scale and experience across different models while maintaining the focused excellence of each individual approach. Successful multifocused organizations carefully draw boundaries between shared and independent functions, typically centralizing back-office operations while maintaining distinct customer-facing identities. The most advanced implementations achieve economies of experience by systematically sharing knowledge and best practices across service models, creating organizational learning capabilities that enhance all components of the enterprise while preserving the specialized excellence that drives competitive advantage in each market segment.

Summary

Excellence in service emerges not from heroic effort or good intentions, but from the systematic design of organizational systems that make superior performance inevitable and sustainable. The multiplication of thoughtful design and aligned culture creates conditions where ordinary people consistently deliver extraordinary value, transforming service from an unpredictable art into a reliable organizational capability. This framework offers profound implications for how we understand organizational performance, suggesting that sustainable excellence requires the courage to make strategic trade-offs, the wisdom to design systems that enable rather than constrain human potential, and the discipline to align every aspect of organizational culture with the imperative of creating customer value.

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Book Cover
Uncommon Service

By Frances Frei

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