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CLASS 1: Topics discussed in class: Unique points of a service sector: o Intensity of employee-customer interface: This can either make the project successful or a failure. Also, for different service sectors the intensity may vary depending upon the service provided and the industry, and as a result the intensity of interface required also varies. o Variability of interface: Also, for different service sectors, the customer need for interaction varies, example: For services like doctors and lawyers, the interaction must be mutual and must be of high intensity, while for services like waiters, the interaction is from the service provider to the client, and the intensity of interface from the service provider is high. o Customization vs. Standardization: Services cannot be standardized, and there is a high necessity for customization to the customers needs due to variability of customer expectations. The need to customize may arise due to Knowledge of customer Prior experience Customer segment differences o Constraint of variability: The extent of customization should be such that the best service is still provided to the target segment and should be within certain limits, depending upon the segment to which the customer belongs to. This constraint may also arise due to constraints in resources. Customer segmentation: The need to segment the customer groups and target a group and provide adequate service. The SEC and the demographics of the service providers must match with that of the customers. Parameters used to segment customer groups: o Demographics o Socio-economic status o Cultural, social identity, which deals with the perception of the customer to belonging to a particular SEC Challenges: o The structure is decentralized and individualized and hence maintaining the quality of service becomes a challenge

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o Person dependent, and hence implications on recruitment and retention o Concentration of knowledge: Possible accumulation of knowledge to a single person due to use of the most competent person for important projects, challenge of knowledge transfer to all parts of the organization o Difficulty in gauging the competency levels from the qualifications alone due to intangibility of knowledge and person differences that can lead to differences in the service provided. The differences in service provided can mapped as shown below:

Margin of prices

The service is more standardized and volume based

Basic service

High end service Type of service

LITERATURE REVIEW 1. Client co-production in knowledge intensive industries; Author: Bettencourt et al, California management review, summer 2002, volume 44, issue 4, p100-128 Proactive management of the clients co-production behaviors increases efficiencies in cost and time savings and when aggregated across clients, it produces a competitive advantage to the service provider. For defining the nature of clients roles, job analysis of the clients responsibilities as is traditionally done is carried out In b2b situations, knowledge accumulation, creation and dissemination are the main responsibility of the client and they add value to the relationship. The seven categories of client role responsibilities essential for effective client co-production are as follows o Open communication: particularly important when the nature of relationships and the output is complex, and customized as well as intensively knowledge based. Communication of the knowledge of business processes, strategy and industry as well as project goals expectation is very important in early stages.

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o Shared Problem Solving: Due to the unique perspective brought in by the client and also due to the increased customization in knowledge-based projects, problems need to be the shared responsibility of both the clients and the service provider and the role of the clients is not restricted to only accepting the solutions proposed by the service provider and paying fees in return for the service. o Tolerance: The client should exhibit tolerance to the minor inconveniences that may arise as the project proceeds owing to the complex nature of the knowledge based service being provided to enable open and effective working relationships that lead to efficient problem solving. o Accommodation: Effective partnerships rely on the willingness and flexibility shown by the clients and the service providers to the others views, and hence sometimes, each party would have to defer to the views of the other keeping in view the big picture and the primary project goals o Advocacy: Project success relies requires the project lead to act as an internal proponent for the project in order to acquire the buy-in of the client firms employees to ensure increased contribution with a sense of ownership and increased acceptance of the final solution and to garner their support. o Involvement in project governance: The client would have to engage in proper monitoring activities in order to keep the progress to keep the project under check and to act as a liaison with the internal employees. o Personal dedication: Client needs to fulfill individual responsibilities.

2. Project Recovery: Saving Troubled Projects. By: Feldman, Jeffery I., Information Strategy: The Executive's Journal, 07438613, Winter2001, Vol. 17, Issue 2 Person selection: In order to ensure the success of the project, the HR team must use the performance appraisal of all the employees and analyze not only their technical expertise but also their personalities and their compatibility with the rest of the team. Also, consideration must be given by the HR as to whether the resources selected are competent enough to deliver results. Training and Development: To ensure the success of a project, it is important for the following people to be competent in their respective fields and for identifying the skill gaps; skill-competency framework can be used. o Project sponsor: These are senior managers responsible for owning the project and for supporting and guiding the project manager. They need to be

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assessed and trained wherever necessary on soft skills like governance, diligence, leadership and ownership using specially tailored e-learning, mentoring or coaching o Project team managers: Formal project management skills and qualifications are a must. In addition, they must have good inter-personal skills and persuasion skills to engage the assistance of the people not involved in the project and to avoid scope creep. Coaching and mentoring can help develop less experienced managers. o Project team members: Awareness of the technology, scope, techniques and tools being used is a must for the team members. Honest communication of the project failure before the situation is out of the hand is necessary, rather than requesting for more resources so that the project does not overrun the budget and deadline restrictions. 3. An Empirical investigation of a sponsors role in project initiation; Kloppenborg et al; Project Management Journal; Vol 37, Issue 3 The main responsibility of a sponsor should be to clarify outputs, management of stakeholder relationships, support the project, appoint and support the project manager. The sponsor should be able to give a vision of success to the project team. Also the following 4 necessary conditions should be fulfilled for project success o Success criteria should be agreed upon with the stakeholders at repeated points throughout the project. o A collaborative working relationship between the sponsor and project manager should be maintained. o Empowered with flexibility to deal with unforeseen circumstances, the project manager should receive guidance from the project sponsor. o The sponsor should take an interest in the performance of the project. This approach suggests a shift of considerable responsibility for project success to the project owner. 4. Quality Management: A Key Process in the Service Industries; Ofer Zwikael; The Service Industries Journal; Vol 27, No 8 The level of the project success depends upon the knowledge of the project manager. The 5 planning processes that define success to a project in the service sector are: o Activity definition, Activity duration estimation, Communications Planning, Quality planning and Schedule development.

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The tools recommended to improve the project Quality are: o For Quality Planning: Cost-Benefit analysis, benchmarking and cost of quality o For Quality Assurance: Quality audits, Process Analysis, Cost-Benefit analysis and Benchmarking o For Quality Control: Cause and effect diagram, control charts, Flowcharting, histograms, inspections etc.