Competence Screening: Introducing a Concept for Competence Management in Service Divisions

Transcription

1 Competence Screening: Introducing a Concept for Competence Management in Service Divisions Marc Rusch 1, Ute David 1 1 International Performance Research Institute ggmbh, Stuttgart, Germany In this paper, a concept for competence analysis and management in service divisions called Competence Screening is introduced. This concept illustrates the competences required for providing specific services. Competence screening enables enterprises to optimize competence planning and development in service divisions, and identify inefficiencies and shortages. Enterprises are able to structure and plan personnel and competences in order to provide efficient, high quality services. This paper presents the concept and application in a specific case. 1. Introduction Services play an increasingly important role and evolve as the most profitable business division within industrial enterprises. Based on service-dominant logic, services are the major basis for economic exchange and the source of competitive advantage (Lusch and Vargo, 2014, Lusch and Vargo, 2012). The basis for competitive service provision is operant resources and dynamic capabilities (Lusch 2011). Enterprises that offer services need to handle rising operating costs and increasingly complex services. When assigning personnel, idle time needs to be avoided, while at the same time specific tasks require specialized personnel. Due to demographic trends, the capabilities of the current employees change. A major challenge for service provision is to appropriately and efficiently employ and utilize the resources necessary for service provision (Ballantyne and Varey, 2008). In order to ensure efficient and high-quality service provision, resources need to be analyzed and optimized according to the specific requirements of service provision (Lusch 2011, Ballantyne and Varey, 2008). Personnel need to be allocated to specific tasks or assigned to teams depending on their individual competences and service requirements. Shortages and oversupply of specific capacities need to be identified in order to decide on training, rotation and employment measures without delay. Effective and efficient competence management in service divisions requires detailed analyses of demands on personnel and competences. Building on service design, the necessary processes and requirements for fulfilling specific services need to be analyzed (Mager, 2009, Evenson, 2008). Methods for service process analyses are service blueprinting (Shostack, 1982) and process chain network (Sampson, 2012). These methods order tasks according to the degree of interaction with the customer or according to the degree of process control. Existing approaches to visualize service processes do not take into account competence requirements and allocation. 1

2 This calls for a concept that introduces competences into process and task analyses. Compared to existing methods, this concept needs to support the allocation of personnel so that individual competences and abilities fit the requirements of the tasks. The concept furthermore needs to reveal competence shortages and oversupply so that necessary personnel rotation, training measures, and employment decisions are made. This is possible with the Competence Screening concept that enables effective and efficient competence management in service divisions. Based on competence screening, individual competences are managed, allocated and developed to ensure timely, high quality and efficient service provision. The concept reveals competence shortages and oversupply and supports planning and managing personnel rotation, training measures and recruitment. In this paper, the competence screening concept is introduced. The paper is structured as follows. Chapter 2 describes and illustrates the concept. In chapter 3, the concept is applied to a specific case. The paper closes with a conclusion in chapter The Competence Screening concept The competence screening concept is developed by drawing on existing frameworks such as service blueprinting. Existing approaches are developed further to analyze requirements for competence management in service divisions. Competence screening visualizes processes or tasks and the corresponding competences in a Competence Screen. A competence screen can be developed within five steps. First, each step of a service process is visualized by using the service blueprinting concept. Within the process, single steps are combined to form activities that cannot be performed separately. This implies that these steps need to be fulfilled by a single employee. Then, competences and competence clusters necessary for performing the single steps are identified. Fourth, each activity is assigned the relevant competences. In this part, the visualized processes or steps are complemented by competences to set up the competence screen Finally, the competence screen is completed by integrating demographic requirements for each activity. Each of the five steps is explained in detail below. In order to develop a competence screen, a basic overview of each step of the service process is needed. A reliable method for visualizing processes is service blueprinting as introduced by Shostack (1982). A service blueprint is a two-dimensional picture of the service process (Fließ and Kleinaltenkamp, 2004). All steps of a specific service process are presented in chronological order on the horizontal axis. The single steps are assigned to different parties involved in the service process on the vertical axis. Five key areas can be identified here. These are usually divided into customer actions, onstage actions, backstage actions, support processes, and physical evidence (Bitner et al., 2008). Process steps are depicted as boxes. The service blueprinting concept is illustrated in figure 1. 2

3 Physical evidence Support processes Backstage actions Onstage actions actions contacts OEM interacts with OEM pays bill Line of Interaction OEM responds OEM executes order Line of Visibility OEM prepares order Line of internal Interaction OEM prepares billing Office, telephone Office Factory, machine of customer etc. Office Figure 1: Illustration of the service blueprinting concept The service blueprint shown in figure 1 describes a generalized customer order. Different process steps are allocated to the five layers described above. The process usually starts with a customer action. The customer contacts the company, e.g. via phone or . The call service team communicates with the customer and takes the order. After that, the order is planned and executed. Finally, a bill is sent to the customer. The bottom line represents the physical evidence involved in the process. Then developing a competence screen, this line is neglected, as it is not relevant for employee competences. After deriving the service blueprint, the individual process steps are analyzed and aggregated. The aggregation follows the interaction with customers or other departments within the company, and the function within the service process. These aspects imply that the single steps cannot be separated and performed by more than one person. These aggregated bundles of steps are called activities. In the example above, four activities can be identified. These are call service activities, order preparation, order execution, and billing. With this step, the illustration differs from the service blueprint as a new chart is set up. The sequence of activities is drawn on the top horizontal axis. The third step is to identify required competences within the service process and define different competence layers. Heyse and Erpenbeck (2009) give a solid overview of employee competences. They define four general competence areas. These are personal competences, social-communicative competences, activity and implementation expertise, and technical and methodological expertise. Each competence area consists of different competences, summing up to 64 in total. To apply this model to the competence screening concept, suitable competences of each specific service need to be identified. The level of detail can be chosen for each specific case. Depending on the requirements and use case, competence screening involves general or very detailed competences. Within the competence screen, the relevant competences depict the vertical axis and represent the competence layers as horizontal stripes. 3

4 Each activity is assigned to the relevant competence layers. In order to further explicate the relevant competences, details are included in the cells in the intersection of activity columns and competence layers. The resulting competence screen illustrates competences required for providing specific services. Relevant competences are further described in the cells within the competence screen. Finally, demographic requirements can be analyzed and integrated into the competence screen, e.g. a high amount of travelling or heavy work. Figure 2 illustrates an exemplary competence screen. Personal competences Socialcommunicative competences Activity and implementation expertise Technical and methodological expertise Demographic requirements Call service _ communication with customer via telephone or Order preparation _ knowledge about specific machine, equipment etc. Order execution _ ability to take responsibility _ ability to work under pressure, time constraints _ communication with customer during order conduction _ consulting _ consulting is required if customer has specific questions _ fault analysis _ knowledge about specific machine, equipment etc. _ travelling _ physically challenging work Figure 2: Illustration of the Competence Screening concept Billing As figure 2 shows, different activities require different competences and face different demographic requirements. Call service requires mainly social- communicative competences, while order execution requires a broad set of different competences, e.g. working under pressure, communication and consulting skills, as well as technical und methodological expertise. This activity also faces demographic requirements due to a lot of travelling and physically demanding tasks. 3. Results The above introduced competence screening is now presented in two case studies that involve spare part supply and maintenance. Within the case studies, competences for providing entire or of services are shown. The competence requirements are compared to the competences available within existing personnel. Deviations of required and available competences are detected. Competence screening supports management and development of competences and processes, and service provision as a whole. The first example is a spare part supply service. The service blueprint is shown in figure 3. In this example, six parties are identified. These are customer, front-office, back-office, support, preparation, and facility-level. 4

5 Facilitylevel Support Preparation Back- Office Front- Office query Accept tender Arrange date Receive spare Oversee service Pay bill Clarify demand Prepare tender Arrange date Installation service Plan service Take over order Plan resources of technician Bill customer Control material availability Place order Ensure warehouse stock Deliver commissioned Plan demand Figure 3: Service Blueprint of a spare part supply The spare supply process starts with a query of the customer, which has to be clarified and planned. Next, the customer is provided with a tender. After the tender is accepted by the customer, the back office continues in processing the order. The next step is material control, which is conducted by the support function. Front office arranges the delivery date, while support places an order for the required spare. This is being processed by preparation. This activity ensures warehouse stock and delivers commissioned to the customer. After the delivery date is arranged, back office plans resources and assigns technicians to perform installation services. Finally, back office bills the service to the customer. After blueprinting the process, single steps of the service process are combined to form five activities. Within the spare supply process, the activities customer service (blue box), organisation management (green box), warehouse management (red box), field service (yellow box), and billing (grey box) are extracted. The next step is to identify relevant areas of competences that are necessary to perform the activities. Competences of the customer service are expert knowledge about machines and spare. Consulting is required if customers are not sure about their demand, and communication skills are needed to record calls and correspond with the customers. Organisation management is a support function to organize processes. This requires expert knowledge about resource planning software, machines and spare. Warehouse management is a support function to ensure the provision of spare. Expert knowledge is required in this area. Field service requires a wider spectrum of competences. This activity requires expert knowledge about machines and spare, repairing know-how, consulting expertise, communication skills, and fault analyses knowledge. Perspective transfer is required to perceive the problem and respond flexibly and quickly to new and unforeseen circumstances. The competence screen is shown in figure 4. 5

6 Support Backstage Service Engineer Call Service Expert knowledge Consulting Comunication Fault analysis Perspective transfer Service _ machines and spare _ if customer is not sure about demand _ communication via phone and _ general understanding Organization Management _ resource planning software, machines and spare Warehouse Management _ purchasing processes Figure 4: Competence Screen of a spare part supply Field Service _ machines and spare _ repair _ machines and _ with customer on site _ ability to identify faults on site _ handle new and unforeseen problems The developed competence screen of a spare part supply service enables management to plan personnel measures. The second example is a maintenance service caused by a machine malfunction. The service blueprint is shown in figure 5. Call OEM Explain problem Sign progress report Receive call Can problem be solved on the phone? yes Solve problem on the phone no Plan maintenance Conduct maintenance Prepare progress report Order spare Ship spare Bill customer Figure 5: Service blueprint of a maintenance service The process starts with a customer calling the company due to a machine malfunction. Call service receives the call and connects the customer to indoor service. Indoor service lets the customer explain the problem and then tries to solve the problem via telephone, e.g. with the help of remote maintenance. If the problem cannot be solved via telephone, a service engineer is ordered to plan maintenance. If needed, spare are ordered from warehouse and delivered. The service engineer performs the task on site at the customer s. Afterwards, the engineer prepares a report which is signed by the customer. Accounting then bills the customer. Based on the service blueprint, five activities are identified. In figure 5, the coloured boxes represent the five activities. These are call service (blue), indoor service (green), spare provision (grey), field service (red), and finally billing (yellow). Required competences are identified for each activity and the competence screen is developed. The competence screen is shown in figure 6. 6

7 Expert knowledge Maintenance Consulting Comunication Fault analysis Perspective transfer Selfresponsibility Flexibility Demographic requirements Call Service Indoor Service Spare Parts Field Service _ with customer via phone or _ constant availability _ react to new situations _ specific machines _ remote maintenance _ address specific questions _ ability to ask relevant and precise question _ ability to identify aults via phone _ general understanding _ take responsibilty for decisions _ ability to work with remote maintenance software Figure 6: Competence Screen of a maintenance service _ specific machines _ ability to execute maintanance properly _ achieve long-term improvement _ communication with customer on site _ ability to identify faults _ solve unforeseen and new problems _ handle new situations _ take responsibility for decisions and activities _ quick response to customer requirements _ travelling _ physically demanding As figure 6 illustrates, each activity requires different competences. Call service requires solid communication with customers and constant availability. Indoor service, especially when providing remote maintenance services, requires detailed knowledge about machines and the ability to understand the problem and solve it. Employees also need good communication and consulting skills and need to be able to take responsibility for decisions they make. The provision of spare is a support activity that is not considered in this screen - the same with billing. Field service has a broad list of competences which service engineers need to fulfil. This activity requires detailed knowledge about machines and maintenance processes. Soft skills are necessary as these employees are in direct contact with the customer. There are also different demographic requirements that come along with travelling and physically demanding tasks. 4. Conclusion This paper presents the competence screening concept which illustrates the competences required for providing specific services. This is necessary to optimize competence planning and development in service divisions, and identify inefficiencies and shortages. The approach may e.g. be applied when new services are introduced or existing competences, capacities and processes are evaluated. The competence screening concept has theoretical and practical implications. The concept draws on service-dominant logic as resources and competences are the major driver of service success. The approach enables the appropriate allocation of resources to ensure efficient and high-quality service provision. Competence screening extends existing literature on service and competence management. Competence screening is a contribution to management methods, in particular process analysis. It fills a gap that is so far not covered by other approaches like service blueprinting or process chain network. The developed concept contributes to service design literature. By using this concept, services may be designed and optimized taking into account competence requirements and available resources. 7

8 For praxis, the presented concept offers the possibility to plan personnel measures effectively and efficiently, and ensure efficient and high-quality service provision. The concept enables solving the current challenges imposed by rising costs, complex services, specialized work force, and demographic changes. Based on the concept, enterprises are able to structure and plan personnel and competences. Personnel are allocated to specific tasks and processes according to their competences and abilities. Shortages and oversupply, and needs for training, rotation and other employment measures are identified. Competence screening ensures effective and efficient competence management in service divisions. In order to further develop and prove the concept, competence screening needs to be applied to a wide variety of cases. As individual cases require different competences, competence layers are adjusted accordingly. Applying competence screening in different cases within one single enterprise enables the enterprise to identify their main competences and define a company-specific competence set. 5. References Ballantyne, D. and Varey, R. J. (2008): The Service-Dominant Logic and the Future of Marketing, Journal of the Academy of Marketing Science, Vol. 36, No. 1, pp Biege, S., Lay, G. and Buschak, D. (2012): Mapping service processes in manufacturing companies: industrial service blueprinting, International Journal of Operations & Production Management, Vol. 32, No. 8, pp Bitner, M. J., Ostrom, A. L., & Morgan, F. N. (2008): Service blueprinting: a practical technique for service innovation, California management review, Vol. 50, No. 3, p. 66. Evenson, S. (2008): A Designer s View of SSME, in Hefley, B. and Murphy, W. (Eds.), Service Science, Management and Engineering: Education for the 21st Century, Springer, New York, pp Fließ, S.; Kleinaltenkamp, M. (2004): Blueprinting the service company, Managing service processes efficiently, In: Journal of Business Research 57, pp Heyse, V.; Erpenbeck, J. (2009): Kompetenztraining, 64 Modulare Informations- und Trainingsprogramme, 2. Aufl., Stuttgart Mager, B. (2009): Service Design as an Emerging Field, in Miettinen, S. and Koivisto, M. (Eds.), Designing Services with Innovative Methods, Ottava Book Printing, Keururu/Finland, pp Lusch, R. F. (2011): Reframing Supply-Chain Management: A Service-Dominant Logic Perspective, Journal of Supply Chain Management, Vol. 47, No. 1, pp Lusch, R. F. and Vargo, S. L. (2012): Gaining competitive advantage with servicedominant logic, in Lilien, G. L. and Grewal, R. (Eds.), Handbook on Business to Business Marketing, Edward Elgar Publishing, Cheltenham, pp

9 Lusch, R. F. and Vargo, S. L. (2014): Service-Dominant Logic: Premises, Perspectives, Possibilities, Cambridge University Press, Cambridge. Sampson, S. E. (2012): Visualizing service operations, Journal of Service Research, Vol. 15, No. 2, pp Shostack, G. L. (1982): How to design a service, European Journal of Marketing, Vol. 16, No. 1, pp Author address Marc Rusch, M.Sc. International Performance Research Institute ggmbh Königstraße Stuttgart Germany MRusch@ipri-institute.com Ute David (née Sembritzki), Dipl.-Vw. (PRESENTING) International Performance Research Institute ggmbh Königstraße Stuttgart Germany UDavid@ipri-institute.com 7. Funding note Das Verbundprojekt EPO-KAD und das zugehörige Vorhaben von IPRI mit der Kennung 01FK13041 werden durch das Bundesministerium für Bildung und Forschung (BMBF) im Förderschwerpunkt Betriebliches Kompetenzmanagement im demografischen Wandel gefördert und vom Projektträger im DLR betreut. This research and development project is funded by the German Federal Ministry of Education and Research (BMBF) within the Framework Concept Betriebliches Kompetenzmanagement im demografischen Wandel (fund number 01FK13041) and managed by Projektträger im DLR. 9