Rigorous service design and development
Almost two and a half decades ago, services marketing professor Lyn Shostack (1984) noted that service design and development were characterised by trial and error rather than by a structured process as was the case in manufacturing. Things appear to have changed little since then for most service organizations. SIA however views product design and development as a serious, structured effort. SIA’s initial commitment to exceptional levels of service and innovation begun in 1972, when, after its separation from Malaysian Airlines, it chose not to be a member of IATA, whose rules SIA considered too constraining. SIA has a Service Development department that hones and thoroughly tests any change before it is introduced. This department undertakes research, trials, time and motion studies, mockups, assessing customer reaction; to ensure that a service innovation is supported by the appropriate procedures. Underpinning the continuous innovation is a corporate culture that accepts change and development as not just inevitable, but as a way of life; a cultural element that is also inculcated at the national level by Singapore’s government. A trial that fails or an implemented innovation that is removed after a few months is acceptable, and damages no-one’s reputation. At SIA it is expected that any innovation may have a limited shelf life. SIA recognises that to sustain its differentiation, it must maintain continuous improvement, and be able to dispose of programs or services that no longer provide competitive differentiation or that could be offered in a different way. According to SIA’s senior management, ‘‘It is getting more and more difficult to differentiate ourselves because every airline is doing the same thing . the crucial fact is that we continue to say that we want to improve. That we have the will to do so. And that every time we reach a goal, we always say that we got to find a new mountain or hill to climb . you must be able to give up what you love’’ (Yap Kim Wah). The stakes are raised for SIA, not only by its competitors but also by its customers, who have sky-high expectations: ‘‘Customers adjust their expectations according to the brand image. When you fly on a good brand, like SIA, your expectations are already skyhigh. And if SIA gives anything that is just OK, it is just not good enough.’’ (Sim Kay Wee). Combined with its extensive customer feedback mechanisms, SIA treats its customers’ high expectations as a fundamental resource for innovation ideas. Weak signals are amplified; every customer letter, be it complaint or compliment, creates a reaction within the airline. There is also a program called ‘‘SIA’’, for ‘‘staff ideas in action’’, where staff can propose any ideas they have that would improve service or cut costs. Additional sources of intelligence are the IATA, Global Airline Performance (GAP) survey, and SIA’s ‘‘spy flights’’, where individuals travel with competitors and report detailed intelligence on competitive offerings. Lastly, SIA recognises that its competition does not just come from within the industry. Instead of aiming to be the best airline its intention is to be the best service organization. To achieve that, SIA employs broad benchmarking not just against its main competitors, but against the best-in-class service companies.
Rigorous service design and development Almost two and a half decades ago, services marketing professor Lyn Shostack (1984) noted that service design and development were characterised by trial and error rather than by a structured process as was the case in manufacturing. Things appear to have changed little since then for most service organizations. SIA however views product design and development as a serious, structured effort. SIA’s initial commitment to exceptional levels of service and innovation begun in 1972, when, after its separation from Malaysian Airlines, it chose not to be a member of IATA, whose rules SIA considered too constraining. SIA has a Service Development department that hones and thoroughly tests any change before it is introduced. This department undertakes research, trials, time and motion studies, mockups, assessing customer reaction; to ensure that a service innovation is supported by the appropriate procedures. Underpinning the continuous innovation is a corporate culture that accepts change and development as not just inevitable, but as a way of life; a cultural element that is also inculcated at the national level by Singapore’s government. A trial that fails or an implemented innovation that is removed after a few months is acceptable, and damages no-one’s reputation. At SIA it is expected that any innovation may have a limited shelf life. SIA recognises that to sustain its differentiation, it must maintain continuous improvement, and be able to dispose of programs or services that no longer provide competitive differentiation or that could be offered in a different way. According to SIA’s senior management, ‘‘It is getting more and more difficult to differentiate ourselves because every airline is doing the same thing . the crucial fact is that we continue to say that we want to improve. That we have the will to do so. And that every time we reach a goal, we always say that we got to find a new mountain or hill to climb . you must be able to give up what you love’’ (Yap Kim Wah). The stakes are raised for SIA, not only by its competitors but also by its customers, who have sky-high expectations: ‘‘Customers adjust their expectations according to the brand image. When you fly on a good brand, like SIA, your expectations are already skyhigh. And if SIA gives anything that is just OK, it is just not good enough.’’ (Sim Kay Wee). Combined with its extensive customer feedback mechanisms, SIA treats its customers’ high expectations as a fundamental resource for innovation ideas. Weak signals are amplified; every customer letter, be it complaint or compliment, creates a reaction within the airline. There is also a program called ‘‘SIA’’, for ‘‘staff ideas in action’’, where staff can propose any ideas they have that would improve service or cut costs. Additional sources of intelligence are the IATA, Global Airline Performance (GAP) survey, and SIA’s ‘‘spy flights’’, where individuals travel with competitors and report detailed intelligence on competitive offerings. Lastly, SIA recognises that its competition does not just come from within the industry. Instead of aiming to be the best airline its intention is to be the best service organization. To achieve that, SIA employs broad benchmarking not just against its main competitors, but against the best-in-class service companies.
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