There is a good definition of service given in ITIL.
Official translation : a service / service is the provision of value to customers through assistance to them in obtaining end results, which Customers want to achieve without owning
specific costs and risks.
I will call this definition a
“formula” of a service .
On the example of a taxi, the formula looks like this:
All of the elements shown in the picture are part of the
value of the service . A simplified version of the formula: “Nishtyak without a smut!”.
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You must understand all the components of the value if you are going to manage the service and / or design and create it.
A professional service provider and all its employees are obliged, first of all, to focus on the final results for the customer / consumer. It is necessary to understand how he formulates them for himself. A frequent mistake of the supplier is an excessive concentration on direct work or on results. He does not represent for what end results they are needed. This error can lead to unsuccessful decisions, both at the level of individual employees, and at the level of managers.
Works within the framework of the service provided do not carry value in themselves. They are valuable only as a bridge to the results. I truly consider the topic of customer focus a key and meritorious careful consideration:
how people perceive your services is the primary factor for success .
The concepts of “
owning (specific) costs ” and “
owning (specific) risks ” are important.
Cost ownership does NOT mean that the customer does not pay for the service. It simply does not have to acquire a large amount of everything in advance in order to quickly obtain the desired result at the right moment. The supplier can allocate costs to several customers, which will save money to each of them individually.
Possession of risks means that if something unforeseen happened in the process of achieving results and achieving them at risk, the customer will not pay extra, but the supplier will either have to incur additional costs in order for the results to be achieved, as agreed, or to receive for the service less money. The latter may be in the form of a discount, a fine or a refusal to pay.
As you can see, both cost ownership and risk ownership mean that the supplier will have to pay, not the customer. The difference is that costs due to the materialization of risks occur unpredictably and are not necessary costs to provide the service under normal conditions.
Owning costs implies only those costs that cannot be avoided for the provision of quality services. These are:
- capital costs that must be incurred in order to be able to provide services, and independent of the number of services provided, for example, the purchase of a car;
- operating costs incurred in the provision of services, and which usually increase in proportion to the number of services provided, such as the purchase of fuel.
According to the degree of ownership of risks and costs of the service can be compared with each other and for more specific examples, I will write in one of the following articles.
The concept of
"galvanic isolation" , in the picture explaining the formula of the service, I outlined for a reason. With a quality “simple” service, the consumer simply forgets and does not think about such costs and risks, and he will never be reminded of them. About exceptions in more complex cases, we'll talk further. Also, instead of “galvanic isolation”, you can imagine a filter: the customer gets “filtered”, “refined” results, without all that is superfluous.
We illustrate the formula of the service also on the example of the Taxi service, but in more detail and in the form of a table:
About secondary benefits and why you need to think about them, let's talk separately in one of the following articles.
You, probably, have already paid attention that the risks of the Taxi service do not pass without a trace for the consumer. If the taxi driver was stopped by the traffic police when you went to an important meeting, then you will be late for it anyway, which could adversely affect your career / business.
This is an important point of “galvanic isolation” - the supplier’s responsibility is limited, usually at the price of the service. There are risks that a taxi driver will not own for the simple reason that he cannot control them in principle. Manage such risks must consumer. The taxi driver will not call a taxi and will not get into it in advance for the consumer.
Limited liability gives an important positive result - it allows you to keep the price of the service at an acceptable level. Responsible consumers should not pay for less responsible ... This does not mean that a taxi driver should not help to call another taxi, for example, or in any other way help out of a difficult situation. But he should not compensate for the negative effect on his career. Everyone is engaged and runs his own business. It may sound harsh, but it is again important for building the correct expectations.
In general, the level of “risk ownership” can be customized by the supplier, and options with increased responsibility can be realized. But usually such options mean more participation in the benefits derived from the results of the service. Outsourcing Professional Body of Knowledge (OPBoK) has such a concept as a continuum of business relationships. In this concept, it is indicated that the supplier does not take the risks of not achieving business results only within the framework of strategic alliances or joint ventures.
Exercise A2:
- Give other examples of costs and risks that a taxi service provider owns.
- Fill in the table above for the service "cafe"
- Fill in the table for one of the services in which you participate.
- Fill in the table for the “work for the employer” service.
- Who, in your opinion, should be engaged in building the correct expectations from the service?
Sources:
- ITIL 2011. Service Strategy.
- Official Russian glossary of ITIL 2011 .
- Outsourcing Professional Body of Knowledge v9.02. Section 1.2.1 “Continuum of Business Relationships”.