Lessons in Service Excellence

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Lessons in Service Excellence
Neeli Bendapudi, Ph. D. Fisher College of
Business The Ohio State University Columbus OH
43210 [phone] Bendapudi_1_at_cob.osu.edu
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Thinking Outside the Box
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To develop a relationship, know what your
customers are really looking for
Look at the world through your customers eyes
Production orientation or marketing
orientation Attributes versus benefits What we
make versus what is sold
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What is this customer really buying?
Toothpaste Beer Nails and hammer
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• Healthcare is a fascinating service to study

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• Being a patient is just about the least amount of
  fun one can have as a consumer

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Mayo Clinic Profile

• Integrated multi-specialty group practice -
  inpatient and outpatient
• Academic medical center focused on patient care,
  education, and research
• Physician-led
• Three clinic campuses in Rochester, Scottsdale,
  and Jacksonville and a regional network of
  smaller practices

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Mayo Clinic Growth
1983
2001
One Location Outpatient Clinic 381 million
in revenue 7,500 FTE employees and students
Multiple locations Clinic, hospitals, primary
care network, lab testing, medical technology
development, and health publishing
businesses 4,135 billion in revenue 38,000
FTE employees and students
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Research Problem

• The Ideal Service Experience

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Disciplines Studied

• Mayo Rochester
• Emergency Department
• Medical and Radiation Oncology
• Orthopedic Surgery
• Cardiology
• Cardiac Surgery
• Executive Exam
• Endocrinology

• Mayo Scottsdale
• Dermatology
• Family Medicine
• Transplant Surgery
• Gastroenterology
• Thoracic Surgery
• Urology
• Neurology

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Methods

• Interviews
• Personal interviews with individuals and groups
  (patients and Mayo staff)
• Telephone interviews with patients

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Participant Observations

• Hospital rounds
• Exam-room observations
• Inpatient and outpatient experiences
• Mayo One
• Surgeries

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• Lessons from the Mayo Clinic

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Lesson 1 Create Value Through Values

• The right employee values translate to superior
  customer value.

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Organizational Values

• Organizational values always matter, but are
• especially critical in organizations
  characterized by
• Intensity, dynamism, and complexity
• High physical and emotional stress
• High need for collaboration
• High need for team members to have confidence in
  one another

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Mayo Hires for Values

• All job descriptions contain the technical skill
  specifications and the core Mayo principles.
• Behavioral interviews emphasize employee values.

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Mayo Reinforces Values

• All allied health staff go through a 2½ day
  orientation program
• Mix of professions and ages
• Role playing and discussion
• Integrate with work group orientation

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Why So Extensive?

• Growth!
• Illustrate lived values

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Beyond Orientation

• Ongoing education
• Organizational storytelling

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• Wedding pics here

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Payoffs

• Pride in working at Mayo
• Sense of belonging
• Reduced turnover

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Creating Value Through ValuesImplications for
Marketers

• Articulate your cherished values.
• Hire for values. Talent isnt enough.
• Make reinforcing values everyones job.

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The Container Store
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Lesson 2 Managing the Evidence

• Medical Services Are
• Intangible
• Complex
• Inherently personal
• Personally important

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• How do patients evaluate medical service quality?

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Orchestrating the Clues of Service

• Humanics
• Clues Emitted by People
• Mechanics
• Clues Emitted by Things

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Humanics

• The wearing of business attire rather than white
  coats is recognized by our patients as a unique
  dress code that projects an aura of expertise and
  respect for the patient accompanied by warmth and
  friendliness.
• Mayo Clinic Model of Care

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Mechanics

• Relieve stress and offer a place of refuge
• Create positive distractions
• Convey caring and respect
• Symbolize competence

• Minimize impression of crowding
• Facilitate way-finding
• Accommodate families
• Be pleasing to employees
• Enhance practice integration

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• The issue for managers is not whether humanics
  and mechanics clues will tell a story of the
  service because they will.
• The issue is whether the clues will they tell the
  right story.

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Managing the EvidenceImplications for Marketers

• Know the story you want to tell
• Articulate a clear strategy to guide
  evidence-management efforts
• Orchestrate what customers can see and understand
  in the service experience

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Chicos
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Lesson 3 Team Service

• Mayo Clinic patients dont just get a doctor,
  they get the Mayo Clinic.

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Mayo Clinic Team Service Model

• Pools talent where needed
• Fosters organizational competence and stamina
• Leverages peer pressure

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Team Service

• Team service makes the most sense when
• Customer demand is uneven and sometimes urgent
• Customer needs are diverse requiring a portfolio
  of skills at the ready
• Speed and accuracy are essential
• Multiple service providers contribute to the
  customers experience.

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Team Service Reinforcers at Mayo Clinic

• One overriding principle
• A consensus culture
• Institutional primacy
• Free cooperation

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Team Service Implications for Marketers

• Offer the customer the whole company not just a
  piece of it.
• Give the team a theme -- a reason for being, a
  common purpose.
• Leverage peer performance pressure.

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Walgreens
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Lesson 4 Systematic Knowledge Sharing

• Systematic knowledge sharing is critical to the
  collective competency of the organization.

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• Medicine is too complex for any one person to
  authoritatively master all its developments and
  nuances.
• The patient, as a human being, is too complex for
  any one caregiver to understand the psycho-social
  aspects of care.

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Prerequisites for Systematic Sharing

• Motivation to share
• Ability to share

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Motivation to Share

• Collaborative culture
• Aligned compensation systems

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Ability to Share

• Facilitated contact
• Technology

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Facilitated Contact

• Weekly grand rounds presentations
• Physician meetings

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Technology

• Electronic Medical Record

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Systematic Knowledge SharingImplications for
Marketers

• Encourage a learning organization.
• Encourage a teaching organization.
• Make it rewarding for employees to share.
• Make it easy for employees to share.

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Giant Eagle
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Lesson 5 Experience-based Branding

• More American consumers prefer Mayo Clinic to any
  other institution if they have a serious medical
  condition and their personal finances or health
  plan are not an impediment.

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• More than 90 percent of patients willingly say
  good things to others about Mayo Clinic.

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• Mayo Clinic leaders through the years have
  intuitively understood that Mayo caregivers are
  the living brand.

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• Mayo Clinic invests in performance rather than
  promises -- the essence of experience-based
  branding.

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Theres a humbling lesson here for marketers.
Great brands, in the end, require great
products or great services. Perhaps we in
marketing exaggerate our importance in the
building of great brands, particularly great
service brands. The things we do to create buzz
in the marketplace are clearly secondary to
word-of-mouth in consumers selection of
healthcare providers. -- Kent
Seltman Director of Marketing Mayo Clinic
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Experience-based BrandingImplications for
Marketers

• Companies cannot buy strong brands they have to
  earn them by pleasing customers.
• The more consequential, complex, and variable the
  service, the greater customers need for brand
  reassurance.

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. . . if we excel in anything, it is in our
capacity for translating idealism into
action. -- Dr. Charles Mayo