Managing Services

Group	Teacher	Department	Language
Year 3	Juan Ignacio Moreu Hasson	Operaciones, Innovación y Data Sciences	ENG

Group	Teacher	Department	Language
Year 4	Juan Ignacio Moreu Hasson	Operaciones, Innovación y Data Sciences	ENG

COURSE CONTRIBUTION TO PROGRAM

Today we live in an economy that is increasingly focused on services in growth and constant innovation. Services in the industrialized countries currently represent more than two-thirds of the gross domestic product and employment.

Moreover, a growing number of manufacturing companies are aware that they can create greater value for their clients and differentiate themselves through services. As a result, issues of operating efficiency and competitiveness are becoming more critical than ever for success in service industries.

In services, the achievement of growth and sustainable profit is closely linked to customer satisfaction and loyalty, which at the same time is based on the satisfaction and loyalty of those who work in these services.

Service organizations are too specific in their nature to demand their own management focus. In this course, we shall develop a series of benchmarks, tools, and concepts required to design and implement operating strategies in services. We will consider both traditional and new approaches for achieving operational competitiveness in the service company, preparing you to make decisions about products, employees, processes, and customers.

The course will examine different service settings in healthcare, financial services, tourism, and professional services among others.

Course Learning Objectives

At the end of the course, students should:

1 Have an overview of the management of services companies from the definition of its strategy to making it reality by means of the performance measurement systems or scorecards.

2 Understand and apply the conceptual and analytical frameworks to better manage service businesses from its strategy definition to its service delivery.

3 Identify the ways of value creation in the services companies and especially the achievement of the satisfaction and loyalty of the persons of the organizations as foundation of the satisfaction and loyalty of their clients.

4 Recognize the idiosyncrasies of different service settings, thus applying the models and theories on particular service settings and being able to design.

CONTENT

1. Understanding services Economy and services. The concept of service. Types of services. Extended service. Typology of services and management challenges.
2. A model for strategy in services Strategy design Competitive strategies Service Package and Service Concept The Service/Profit Chain.
3. Service concept: key Service Value Propositions 10 positioning map: cost vs diferentiation
4. Introduction to Performance Measurement Systems (I) Indicators and Performance Measurement Systems. Key Performance Indicators, KPIs. Strategy Map and Strategic Indicators.
5. Introduction to Performance Measurement Systems (II) Strategy design and Implementation Balanced Scorecard, Strategy Map and Strategic Indicators Objectives and Key Results, OKRs
6. Customer Relationship Management (CRM) Complaints as opportunities for improvement and loyalty. Service Recovery. Customer Loyalty
7. Service Design I (internal perspective): Business Process Management What is Service Design. Criteria of Service Design Concept of BPM. Organization by processes. Business Process Models. Process mapping. Process improvement.
8. Service Design II (external perspective): Managing Customer Experience Models & tools for service improvement. Process flow diagrams. Blueprinting.
9. Service Quality Service Quality Assessment. Parasuraman and Berry Model. Capturing the voice of your customer: design and tools.
10. Key Learnings 10 conclusions of Managing Services

1. Understanding services

Economy and services.
The concept of service.
Types of services. Extended service.
Typology of services and management challenges.

2. A model for strategy in services

Strategy design
Competitive strategies
Service Package and Service Concept
The Service/Profit Chain.

3. Service concept: key Service Value Propositions

10 positioning map: cost vs diferentiation

4. Introduction to Performance Measurement Systems (I)

Indicators and Performance Measurement Systems.
Key Performance Indicators, KPIs.
Strategy Map and Strategic Indicators.

5. Introduction to Performance Measurement Systems (II)

Strategy design and Implementation
Balanced Scorecard, Strategy Map and Strategic Indicators
Objectives and Key Results, OKRs

6. Customer Relationship Management (CRM)

Complaints as opportunities for improvement and loyalty.
Service Recovery.
Customer Loyalty

7. Service Design I (internal perspective): Business Process Management

What is Service Design.
Criteria of Service Design
Concept of BPM.
Organization by processes.
Business Process Models.
Process mapping.
Process improvement.

8. Service Design II (external perspective): Managing Customer Experience

Models & tools for service improvement.
Process flow diagrams.
Blueprinting.

9. Service Quality

Service Quality Assessment.
Parasuraman and Berry Model.
Capturing the voice of your customer: design and tools.

10. Key Learnings

10 conclusions of Managing Services

Relation between Activities and Contents

	1	2	3	4	5	6	7	8	9	10
Company Presentation (to be confirmed)
Case Study "Delta Airlines"
Case Study "Chateauform"
Reengineering AVE - Alta Velocidad Española (team exercise)
Case study "Commerce Bank"

Methodology

In addition to LECTURES / CLASS DISCUSSION on important concepts, there will be three Case studies.

CASES: a case is a rather comprehensive exposition of a real managerial situation describing a set of problems and requiring a plan of action. This method provides a pragmatic framework of the learning process. Its success depends heavily on student preparation before class and active participation in class discussions. The discussion of case studies will follow different structures (individual presentation, role playing, group debate...) so the individual members of groups should come well prepared.

READINGS: a collection of articles and other practical exercises will provide the necessary background for analysis. Having read and prepared them before the session is therefore, compulsory.

INDIVIDUAL EXERCISES: as a preparation task for some sessions, there will be some individual exercises, based in the contents of the next sessions. These individual exercises are voluntary.

COMPANY PRESENTATIONS: The professors will try to schedule one or two presentations of companies throughout the course, as the best way to see real service management in action.

SLIDES OF SESSIONS: a selection of the basic slides will be posted one week in advance of each session. Please be aware that not all topics or slides will be necessarily posted, hence attendance is a must.

Assessment criteria

All the four following criteria must be approved separately in order to pass the course, with the exception of individual mini-exercises, which are not compulsory.

1) Final Exam (closed books exam): 30%

2) Case write-ups (in groups; include peer-to-peer evaluation): 30%

3) Individual mini-exercises: 20%

4) Class participation: 20%

CASE WRITE UPS & PEER-TO-PEER EVALUATION (30%)
As a preparation for each case discussion you should read and prepare individually the case. Then you should discuss questions with your group and answer them on a group-report.

The team reports should be uploaded through the course web at least 24 hours in advance prior to each class.

Format of the report is a powerpoint file that should be done as an executive presentation to the managing board of the company. Teams must develop complementary rationales and information in footnotes or a separate document, when needed (i.e, when the information exceeds the typical summarized view of executive presentations).

If any member of the group is a mere "passenger" and does not contribute to teamwork, he/she should not be allowed to sign the work. In order to detect this, a peer evaluation will be requested. A peer grade clearly below average means a failing grade of the course; a peer grade above average will score additional points to the case grade.

INDIVIDUAL MINI-EXERCISES (20%)
As a preparation task for some sessions, we will offer you the possibility of submitting a short (one page) individual exercise, that will be based in the contents of the next session. So, you will have to work in advance the materials available for the session.

These individual exercises are voluntary, so you do not need to deliver them to pass the course; just bear in mind that 20% of the final grade is linked to them.

CLASS PARTICIPATION (20%)
Participation comprises class attendance, oral presentations from case studies, and individual contributions during the sessions.

Minimum attendance is 80% of sessions. Hence, you can miss 2 sessions without any kind of justifications. 3 or more unattended sessions means a fail in this part of assessment and in the course.

This course follows ESADE's code of Honour. Any detected plagiarism will carry the course failure.

Bibliography

Basic Textbook

- Bordoloi, S., Fitzsimmons, J.A. y Fitzsimmons, M.J. (2019): "Service Management. Operations, Strategy, Information Technology." McGraw-Hill, New York.

Complementary textbooks:

- Frei, F. & Morris, A. (2012): "Uncommon Services: How to win by putting costumers as the core of your business". Harvard Business Review Press, Boston.

- Harmon, P. (2014): "Business Process Change. A Guide for Business Managers and BPM and Six Sigma Professionals". San Francisco: Morgan Kaufmann Publishers.

- Jeston, J. and Nelis, J. (2018): "Business Process Management. Practical Guidelines to Successful Implementations". New York, Routledge.

- Heskett, J. L., Sasser, W. E. y Schlesinger, L.A. (1997): "The Service Profit Chain", The Free Press, New York.

CURRICULA

Juan Ignacio Moreu is Master of Business Administration for ESADE and a Bachelor in History for the University of Barcelona.

He has been Professor of the Operations, Innovation & Data Sciences Department for 22 years and during five collaborated in the Finance Department.

Currently, he is the Managing Director of the Official College of Jewelers, Goldsmiths, Watchmakers, and Gemologist of Catalonia. He has held different positions in marketing direction in FMCG multinationals as Wrigley Co (confectionery industry) and Ralston Purina (pet foods). He also has experience in marketing of services, as Marketing Director of the Catalan Tourist Board.

He was a consultant in the firm Roland Berger, and previously he worked in the British investment bank Granville Iberia.

Type:	OPT	Curs:	3,4	Period:	S semester
ECTS Credits:	4 ECTS

Managing Services (2235.YR.006294.1)

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