Key Takeaways
1. Service excellence requires strategic trade-offs
You can't be good at everything. You must be bad in the service of good.
Strategic underperformance. To deliver exceptional service, companies must make deliberate choices about where to excel and where to underperform. This counterintuitive approach allows organizations to focus resources on the dimensions that matter most to their target customers. For example, Commerce Bank chose to offer the worst interest rates in the industry, allowing it to invest in extended hours and superior customer service. Similarly, Southwest Airlines sacrifices amenities like assigned seating and meals to maintain low prices and fast turnaround times.
Customer-driven priorities. Successful service organizations identify their customers' key priorities and align their offerings accordingly. This requires:
- Creating "attribute maps" to visualize customer preferences
- Identifying distinct operating segments with different needs
- Making tough choices to excel in critical areas while accepting mediocrity in others
By embracing strategic trade-offs, companies can create a sustainable competitive advantage that's difficult for competitors to replicate.
2. Funding exceptional service: Four key mechanisms
Someone has to pay for it. Service excellence must be funded in some way.
Four funding strategies. Companies can finance superior service through:
- Charging customers more in palatable ways
- Reducing costs while improving service
- Improving service in ways that also cut costs
- Getting customers to do some of the work
Creative approaches. Progressive Insurance demonstrates how to improve service while reducing costs. By deploying immediate-response vans to accident scenes, Progressive enhances customer experience while combating fraud and reducing legal claims. This approach simultaneously improves service quality and lowers operating expenses.
Self-service innovation. When designed thoughtfully, self-service options can both reduce costs and enhance customer satisfaction. Successful examples include:
- Airline check-in kiosks that give customers more control over seat selection
- Online banking platforms that provide 24/7 access to account information
The key is to make self-service preferable to full-service alternatives, rather than simply offloading work onto customers.
3. Design your employee management system for average performers
The goal of an excellent service organization is to deliver outstanding results with average employees.
Realistic workforce planning. Many companies design service models assuming a workforce of superstars. Instead, organizations should create systems that enable average employees to deliver excellence consistently. This involves:
- Thoughtful selection processes to identify candidates with the right attributes
- Effective training programs that reinforce cultural values and operational skills
- Job designs that simplify complex tasks and leverage technology appropriately
- Performance management systems that align incentives with desired outcomes
LSQ Funding Group example. By developing intuitive IT systems, LSQ enables new hires to perform effectively on day one, reducing training needs and allowing the company to prioritize attitude in hiring decisions. This approach creates a more empowered and engaged workforce while maintaining high service standards.
4. Customers are vital co-producers of service experiences
Customers don't just consume service; they also participate in creating it.
Managing customer variability. Service organizations must recognize that customers play an active role in shaping service outcomes. This variability can manifest in terms of:
- Arrival times
- Service requests
- Customer capabilities
- Effort levels
- Individual preferences
Customer management strategies. To address this variability, companies can:
- Reduce complexity through menu options or reservations systems
- Accommodate diversity by building slack into the system
- Leverage self-service options to give customers more control
- Train customers in efficient service behaviors (e.g., Starbucks' ordering language)
Shouldice Hospital case study. This specialized hernia clinic demonstrates effective customer management by:
- Carefully selecting patients who fit their service model
- Providing clear pre-operative instructions and expectations
- Engaging patients in their own recovery through early ambulation
- Fostering a supportive community among patients
By treating customers as co-producers, organizations can improve service quality while potentially reducing costs.
5. Culture is the multiplier of service design
Service Excellence = Design × Culture
Culture's critical role. A strong service culture amplifies the effectiveness of well-designed systems and processes. Organizations that excel in service tend to demonstrate:
- Clarity about the culture they need to succeed
- Effective signaling of core values and expectations
- Consistency in reinforcing cultural norms across the organization
Zappos example. The online retailer's success is driven by its relentless focus on culture:
- Clear articulation of ten core values that guide decision-making
- Intensive hiring process to ensure cultural fit
- Four-week training program for all new hires, regardless of position
- $2,000 offer to quit after training to ensure commitment
- Performance evaluations that heavily weight cultural contributions
By aligning culture with service design, companies can create a sustainable competitive advantage that's difficult for competitors to replicate.
6. Scaling service excellence: Standardization vs. customization
Defying this trade-off is possible. In fact, it's not only possible, but also likely to be the only choice you have if you want to deliver excellence and grow.
Balancing act. As service organizations grow, they often struggle to maintain quality while increasing scale. The key is finding the right balance between standardization (for efficiency) and customization (for customer satisfaction).
Strategies for scaling:
- Standardize back-end processes while allowing for customization at customer touch points
- Implement point-of-sale customization options within a standardized framework
- Continuously refine and simplify offerings to reduce operational complexity
Four Seasons example. The luxury hotel chain demonstrates how to deliver consistently excellent service across a global network by:
- Standardizing core processes and quality standards
- Allowing for local customization in areas that enhance the guest experience
- Maintaining a strong cultural emphasis on service excellence
By thoughtfully balancing standardization and customization, organizations can grow while maintaining their commitment to service quality.
7. Multifocused firms: Building multiple service models under one roof
Each service model in the company somehow makes the other service model better off.
Portfolio approach. Some companies successfully compete against focused entrants by developing multiple, distinct service models within a single organization. This strategy allows them to:
- Target different customer segments with tailored offerings
- Leverage shared resources and knowledge across business units
- Achieve economies of scale and experience
Shared services model. Organizations like CDM Group demonstrate how to create value through shared services:
- Centralizing back-office functions like HR, finance, and IT
- Maintaining distinct brand identities and client-facing operations
- Fostering collaboration and knowledge-sharing across units
Keys to success:
- Clearly defining boundaries between shared and unit-specific functions
- Ensuring high-quality shared services that add value to individual units
- Cultivating a culture of collaboration and continuous improvement
By building multiple, complementary service models, companies can achieve growth while maintaining the focus and agility needed to deliver exceptional service.
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FAQ
1. What is "Uncommon Service" by Frances Frei and Anne Morriss about?
- Focus on Service Excellence: "Uncommon Service" explores how organizations can achieve service excellence by making deliberate design choices that put customers at the core of their business.
- Four Service Truths Framework: The book introduces a framework of four "service truths" that underpin successful, high-performing service models.
- Design Over Heroics: Frei and Morriss argue that great service is not about extraordinary individual effort, but about designing systems that enable average employees to deliver excellence routinely.
- Real-World Case Studies: The book uses case studies from companies like Commerce Bank, Southwest Airlines, Zappos, and others to illustrate how these principles work in practice.
2. Why should I read "Uncommon Service" by Frances Frei and Anne Morriss?
- Practical, Actionable Advice: The book provides concrete steps and frameworks for leaders seeking to improve their organization's service quality.
- Challenges Conventional Wisdom: It debunks the myth that you can be great at everything, showing that strategic trade-offs are essential for excellence.
- Broad Applicability: The lessons apply to businesses of all sizes and industries, including nonprofits and public sector organizations.
- Inspiring and Insightful: Through stories and examples, the book inspires leaders to rethink their approach to service and organizational culture.
3. What are the key takeaways from "Uncommon Service" by Frances Frei and Anne Morriss?
- Excellence Requires Trade-Offs: You must underperform in some areas to excel in others that matter most to your customers.
- Service Must Be Funded: Exceptional service needs a sustainable funding mechanism—either customers pay more, costs are reduced, or customers do some of the work.
- System Design Over Individual Effort: Service excellence is achieved by designing systems that enable average employees to succeed, not by relying on heroes.
- Customers Must Be Managed: Customers are active participants in service delivery and need to be managed, trained, and sometimes selected for operational fit.
- Culture Multiplies Design: Organizational culture is as important as service design; both must be aligned for sustainable excellence.
4. What are the "Four Service Truths" in "Uncommon Service" by Frances Frei and Anne Morriss?
- You Can’t Be Good at Everything: Excellence requires being bad at some things to be great at others, based on what your customers value most.
- Someone Has to Pay for It: Service excellence must be funded, whether through higher prices, cost reductions, or customer participation.
- It’s Not Your Employees’ Fault: The system, not individual effort, is the primary driver of consistent service excellence.
- You Must Manage Your Customers: Customers play an operational role and need to be managed, trained, and sometimes selected to ensure service quality.
5. How does "Uncommon Service" by Frances Frei and Anne Morriss define and use the concept of trade-offs in service design?
- Strategic Sacrifice: The book emphasizes that organizations must deliberately choose where to excel and where to underperform, based on customer priorities.
- Attribute Mapping: Tools like attribute maps help identify which service dimensions matter most to target customers and where to focus resources.
- Emotional Challenge: Embracing trade-offs can feel uncomfortable, but resisting them leads to mediocrity.
- Real-World Examples: Companies like Commerce Bank and Southwest Airlines are highlighted for their willingness to be "bad" at some things to be "great" at others.
6. What are the main ways to fund service excellence according to "Uncommon Service" by Frances Frei and Anne Morriss?
- Charge Customers More: Implement palatable pricing strategies where customers are willing to pay extra for better service.
- Reduce Costs While Improving Service: Find operational efficiencies that both lower costs and enhance the customer experience.
- Improve Service to Lower Costs: Invest in service improvements that reduce demand for costly interventions (e.g., better product design reduces support calls).
- Get Customers to Do the Work: Design self-service options that customers prefer, which also reduce organizational costs.
7. How does "Uncommon Service" by Frances Frei and Anne Morriss recommend organizations manage their employees for service excellence?
- Design for Average Employees: Build systems and processes that enable ordinary employees to deliver extraordinary service as a routine.
- Four Elements of Employee Management: Focus on selection, training, job design, and performance management, ensuring all are aligned with the service model.
- Simplify Jobs or Invest in Training: Either reduce job complexity or invest heavily in training and selection, depending on your business model.
- Integrate Technology Thoughtfully: IT systems should be designed to support, not hinder, employee performance and should be developed in tandem with job roles.
8. What does "Uncommon Service" by Frances Frei and Anne Morriss say about managing customers as part of the service process?
- Customers as Co-Producers: Customers are not just consumers but also play an active role in creating the service experience.
- Manage Variability: Recognize and address the different ways customers can impact service (arrival, request, capability, effort, preference).
- Customer Management System: Apply similar principles as employee management—select, train, design roles for, and manage the performance of customers.
- Use Normative and Structural Incentives: Employ community values, peer pressure, and system design (e.g., Netflix’s model) to encourage desired customer behaviors.
9. How does organizational culture factor into service excellence in "Uncommon Service" by Frances Frei and Anne Morriss?
- Culture Multiplies Design: Service excellence is the product of both good design and a strong, aligned culture (Service Excellence = Design × Culture).
- Three Cultural Levers: Clarity (knowing the culture you need), Signaling (communicating and reinforcing values), and Consistency (aligning actions and policies).
- Imprinting and Storytelling: Use onboarding, rituals, and stories to embed cultural values deeply in the organization.
- Decalcification: Regularly refresh and reinforce culture to prevent cynicism and complacency, especially in customer-facing roles.
10. What are some real-world examples and case studies used in "Uncommon Service" by Frances Frei and Anne Morriss?
- Commerce Bank: Excelled at convenience and attitude by sacrificing deposit rates and product complexity.
- Southwest Airlines: Focused on low prices and friendly service, while underperforming on amenities and network breadth.
- Zappos: Built a culture of happiness and service, with systems that support both employees and customers.
- Shouldice Hospital: Managed customer selection and training to achieve world-class surgical outcomes.
- Magazine Luiza: Designed customer management systems for low-income, often illiterate customers, enabling financial inclusion and loyalty.
11. How does "Uncommon Service" by Frances Frei and Anne Morriss address scaling and growth for service organizations?
- Standardization vs. Customization: To scale, organizations often need to standardize operations, but can still deliver high-quality, personalized experiences at the point of service.
- Multifocused Firms: Growth can also come from building multiple, distinct service models under one corporate umbrella, each optimized for different customer segments.
- Shared Services: Leverage economies of scale and experience by sharing back-office functions and knowledge across business units or brands.
- Leadership and Political Will: Successful scaling requires strong leadership to draw boundaries and maintain high standards in shared services.
12. What are the best quotes from "Uncommon Service" by Frances Frei and Anne Morriss and what do they mean?
- "You must be bad in the service of good." — Excellence requires deliberate underperformance in some areas to excel in others that matter most to customers.
- "Service excellence is a product of design and culture." — Both system design and organizational culture are equally important for sustainable service excellence.
- "The goal of an excellent service organization is to deliver outstanding results with average employees." — Systems, not individual heroics, should drive consistent excellence.
- "Leadership, at its core, is about making other people better as a result of your presence—and making sure that the impact lasts in your absence." — True leadership is about creating lasting conditions for others to succeed.
- "The primary obstacle to service excellence is not the ambition to be great, but the stomach to be bad." — Emotional resistance to trade-offs is the biggest barrier to achieving uncommon service.
Review Summary
Uncommon Service receives mostly positive reviews, with an average rating of 4.04 out of 5. Readers appreciate the book's practical advice on prioritizing customer service areas and its emphasis on strategic trade-offs. Many find the real-world examples helpful, though some feel they are dated. The book's core message of focusing on what matters most to customers resonates with readers. Some criticize the book for being repetitive or academic, but overall, it's seen as insightful and valuable for business owners and managers.
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