1. The Front-Office, Back-Office Interface Chapter 7

13. Service Blueprint for Fast Food Restaurants Make Patties Grill Assemble Counter Line of Visibility

21. De-coupling and Service Quality Management Policy Customer Service Gaps – centralized service Management Policy High contact worker Low contact worker

25. Back-Office Decoupling Strategies

26. Consistent Functional Choices for Decoupling Strategies Centralize only when it is cost prohibitive not to Quality control; disaggregation of high-and low-contact Maintain cost competitiveness Scale economies Reason to De-couple Activities requiring expensive capital goods Back-office activities “regionalized,” not centralized Centralize back-office work in excess of front-office idle time All back-office work Activities to De-couple Premium level of personalized service Personalized service at moderate cost Locational convenience/low cost Low costs Competitive Advantage Low High Low High Level of De-coupling High Service Focused Professionals Cheap Convenience Cost Leader Management Practice

27. Consistent Functional Choices for Decoupling Strategies Maximize flexibility, response time, or service quality Maintain sufficient flexibility, response time, or service quality at lower cost than High Service Cost minimization; conformance quality Cost minimization; Conformance quality Operational Strategic Focus Broad, but with specialization across functions Narrow, but focused on an entire process Broad. All employees should be able to perform each function. Narrow, focused on task within process, low cross-training Training Very broad Broad Very narrow Narrow High-Contact Product Line High Service Focused Professionals Cheap Convenience Cost Leader Management Practice

28. Consistent Functional Choices for Decoupling Strategies Increasing customer relationship depth; High off-site responsibilities Increasing number of customers largely through off-site activity Service customer requests; Low off-site responsibilities Service customer requests; Low off-site responsibilities High-contact Worker Responsibility Salary with commission on unit performance Commission on sales Salary/hourly Salary/hourly High-contact Worker Compensation Enhance service Enhance marketing Reduce job complexity Standardize activity; Labor replacement Purpose of Automation High Service Focused Professionals Cheap Convenience Cost Leader Management Practice

29. Activities in Processing a Retail Loan Line of Customer Visibility Solicit Application Application Processing Credit Decision Payment Processing Bad Debt Collection Document Signing

30. Modeling Services De-coupling High Service Focused Professionals Cheap Convenience Cost Leader Low High Level of De-coupling Service Cost Strategic Operational Focus Bank of Green Hills Union Planters Nashville Bank of Comm. First Union