Wednesday, July 24, 2019

Service Triad

The service triad is a concept used to discuss the tensions that there are between different stakeholders in any service system. These stakeholders are 1. customers, 2. front-line employees, and 3. managers. Remember that each of these groups of stake-holders participates in the service system for different reasons.

The customer participates to receive the service offered,  employees are usually most interested in meaning, autonomy and learning opportunities and managers (even though they are also employees) represent the interests of the firm which is to generate profits or whatever the performance measure is (not always money). A series of tensions are generated because of these different interests. The tension between managers and employees is around efficiency and autonomy. Management wants more efficiency but this is often at the expense of employee autonomy and meaningful work. The tension between managers and customers is around efficiency versus satisfaction. Managers again want to run an efficient business but they also need to serve customers. Difficult decisions can be around how much self-service to implement, or what services can be retained in a difficult economic climate. The tension between employees and customers is around perceived control. Customers are  'management agents' in service as they act as quality control mechanisms. Employees are interested, as mentioned previously, in their autonomy and this is also closely related to perceptions of control. Employees and customers are often in conflict over issues of who controls the relationship and the meaning, therefore, of the work. 

The diagram below represents these sets of tensions and also poses a scenario of how these tensions can be seen in an everyday common example of service. 

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