Business Times - 31 Jul 2009
GLOBAL CONFERENCE ON SERVICE EXCELLENCE
By TEH SHI NING
BENCHMARKING and innovation are 'two sides of a coin', says Ho Kwon Ping, executive chairman of premium resorts operator Banyan Tree Holdings.
Discussing service innovation at the Global Conference for Service Excellence, Mr Ho gave illustrations from his experience running Banyan Tree, as well as his previous experience as a director of Singapore Airlines (SIA).
'Benchmarking is very useful, it gives you a tangible way to compare yourself with competitors. But there is a clear limitation. It tells you where you are and what you can be, but only through innovation, can you get beyond that. Benchmarking alone will not give you that competitive edge,' Mr Ho said.
One simple lesson from his time at SIA, has been that 'service excellence as defined by customers, can be very different from our own perceptions.'
For instance, when SIA benchmarked key touchpoints of the customer service it offers against the industry, they found that what they thought were 'signature touchpoints' were no longer unique to SIA - competitors had quickly caught on to offering Dom Perignon too.
Instead, customers valued little things such as flight attendants putting newspapers away and folding blankets each time a passenger left his seat. 'These were minor things, but reflected a consistent service attitude which was not as easily copied,' Mr Ho said.
After benchmarking, comes innovation, 'the strategic differentiator'. At SIA, a team was formed with individuals representing themselves and reporting directly to the CEO. This team eventually created what Mr Ho called a 'game-changing product' - its new business class seat.
Mr Ho said: 'Structured innovation is very important, you don't just get eureka moments from people. But, you've got to make sure the outcome is protected from all the other varied interests in the company.'
The other keynote speaker, marketing professor Ronald Rust, of the Robert H Smith School of Business, University of Maryland, also identified innovative trends related to service-centred marketing in his talk.
'Information technology definitely drives the service revolution and customer-centricity,' he said. But the next wave is having products themselves adapt and change for customers over time, what he terms 'adaptive personalisation'.
As an example, he elaborated on 'My Mobile Music', a system which generates playlists based on customers' listening behaviour, using an algorithm which learns tastes better over time. A study he did on this system, showed it exceeding benchmarks significantly.
Ultimately, Mr Ho said: 'Service excellence comes from people doing their work consistently with pride in quality, and pride in that bond between themselves and customers. And this, can only come from a society's and a company's values.'
This provided much fodder for the ensuing discussion: Is Singapore a society that promotes that sort of pride in excellent service? How can Singapore move beyond viewing service as mere servility?
Customer service here is highly efficient, Mr Ho said. But, the attitudes behind that service still stem from a culture lacking in respect for those who serve. One of the things he realised from Banyan Tree was that 'it wasn't the silverware, it wasn't the luxury, because from the feedback we got, what people really appreciated was service from people who really like doing what they're doing'.
For now, Singaporean society does not have the same quality of appreciation and respect that the Japanese, for instance, do towards vocational and artisanal work, Mr Ho said.
GLOBAL CONFERENCE ON SERVICE EXCELLENCE
By TEH SHI NING
BENCHMARKING and innovation are 'two sides of a coin', says Ho Kwon Ping, executive chairman of premium resorts operator Banyan Tree Holdings.
Discussing service innovation at the Global Conference for Service Excellence, Mr Ho gave illustrations from his experience running Banyan Tree, as well as his previous experience as a director of Singapore Airlines (SIA).
'Benchmarking is very useful, it gives you a tangible way to compare yourself with competitors. But there is a clear limitation. It tells you where you are and what you can be, but only through innovation, can you get beyond that. Benchmarking alone will not give you that competitive edge,' Mr Ho said.
One simple lesson from his time at SIA, has been that 'service excellence as defined by customers, can be very different from our own perceptions.'
For instance, when SIA benchmarked key touchpoints of the customer service it offers against the industry, they found that what they thought were 'signature touchpoints' were no longer unique to SIA - competitors had quickly caught on to offering Dom Perignon too.
Instead, customers valued little things such as flight attendants putting newspapers away and folding blankets each time a passenger left his seat. 'These were minor things, but reflected a consistent service attitude which was not as easily copied,' Mr Ho said.
After benchmarking, comes innovation, 'the strategic differentiator'. At SIA, a team was formed with individuals representing themselves and reporting directly to the CEO. This team eventually created what Mr Ho called a 'game-changing product' - its new business class seat.
Mr Ho said: 'Structured innovation is very important, you don't just get eureka moments from people. But, you've got to make sure the outcome is protected from all the other varied interests in the company.'
The other keynote speaker, marketing professor Ronald Rust, of the Robert H Smith School of Business, University of Maryland, also identified innovative trends related to service-centred marketing in his talk.
'Information technology definitely drives the service revolution and customer-centricity,' he said. But the next wave is having products themselves adapt and change for customers over time, what he terms 'adaptive personalisation'.
As an example, he elaborated on 'My Mobile Music', a system which generates playlists based on customers' listening behaviour, using an algorithm which learns tastes better over time. A study he did on this system, showed it exceeding benchmarks significantly.
Ultimately, Mr Ho said: 'Service excellence comes from people doing their work consistently with pride in quality, and pride in that bond between themselves and customers. And this, can only come from a society's and a company's values.'
This provided much fodder for the ensuing discussion: Is Singapore a society that promotes that sort of pride in excellent service? How can Singapore move beyond viewing service as mere servility?
Customer service here is highly efficient, Mr Ho said. But, the attitudes behind that service still stem from a culture lacking in respect for those who serve. One of the things he realised from Banyan Tree was that 'it wasn't the silverware, it wasn't the luxury, because from the feedback we got, what people really appreciated was service from people who really like doing what they're doing'.
For now, Singaporean society does not have the same quality of appreciation and respect that the Japanese, for instance, do towards vocational and artisanal work, Mr Ho said.
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