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A Case Study On Service Design in An Egyptian Professional Consulting Firm
A Case Study On Service Design in An Egyptian Professional Consulting Firm
A Case Study On Service Design in An Egyptian Professional Consulting Firm
Research Article
A Case Study on Service Design in an Egyptian
Professional Consulting Firm
Sanetake Nagayoshi
Department of Industrial Engineering and Management, Graduate School of Decision Science and
Technology, Tokyo Institute of Technology, Tokyo, Japan
Copyright © 2013 Sanetake Nagayoshi. Distributed under Creative Commons CC-BY 3.0
Abstract
Organizational change and transformation traditionally attracts many researchers to dedicate their
times and energy to research, because it is one of the important research topics. However there
does not seem to be enough research especially in Arab world such as Egypt, although the area is
one of the significant regions now. In this paper, author discusses three topics based upon a case
study at a professional consulting firm in Egypt which is specialized in Kaizen –continuous
improvement. (1) How did the firm acquire the know-how knowledge about Kaizen? , (2) How did
the customer of the consulting firm succeed in the QC Circle activities with the support of the firm? ,
(3) What are the key factors for success both in of the firm and their customers? At the result, it is
supposed that the learning process at the firm could be interpreted with SECI model, and the
innovative transformation process in their customers could be interpreted by applying five Stages
model (Liu, Nagayoshi and Iijima; 2012). Also the key success factors for Kaizen could be
localization of Kaizen activities. The generalizability of these findings can be ascertained with more
studies in future.
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Cite this Article as: Sanetake Nagayoshi (2013), “A Case Study on Service Design in an Egyptian Professional
Consulting Firm,” IBIMA Business Review, Vol. 2013 (2013), Article ID 193087, DOI: 10.5171/2013. 193087
IBIMA Business Review 2
context, it is said that business organizations In this paper, author discusses service design
evolved in most Arab societies as in Egyptian professional consulting firm
fundamentally trading or service named “Productivity and Quality
organizations. Very few countries in this Improvement Center” in Cairo, which
region, particularly in the mostly populated supports Egyptian manufacturing companies
states, developed some form of productive to improve the business process, productivity
enterprises. These enterprises lacked and profitability. And then it is supposed
innovative processes and were generally what key success factors are for the
satisfying the meager needs of largely professional firm to support business
unsophisticated, non-complaining consumer process improvement.
communities.
The remainder of the paper is organized as
Especially in Egypt, there are, however, follows: First, related literatures are
favorable conditions such as population reviewed in section 2. After that relative
increase and industry diversification. research method is introduced in section 3.
According to World Health Statistics (World Next, an attempt of a certain professional
Health Organization, 2012), the population in firm is introduced in section 4. Then, the
Egypt is 81,121 thousands in 2010, the cases are analyzed in section 5. Some
annual population growth rate from 2000 to additional findings are discussed in section 6.
2010 is 1.8% the total fertility rate per Finally, the limitations of this study and
woman in 2010 is 2.7. Egypt succeeded implications for future research are
industry diversification unlike other Arab described in section 7.
countries which rely on oil and/or financial
industry in Gulf area. There are multiple Literature Review
industries such as primary products, food
processing, textile, petroleum products, A. Kaizen Activity
heavy industries, other manufacturing,
tradable services, other services like sea The basis of operations that efficiently secure
trade and transportation based on quality is to develop a best standard to
geographical favorable conditions such as accomplish it, and to work according to it.
Nile River and Suez Canal (Dessus and However as product varieties increased and
Eiseman, 1998). Actually Egypt is listed on product life cycles become shorter, it became
the NEXT11, which are expected to develop impossible to follow this change by just
near future. The World Bank (2013) working according to the standard. Then,
mentioned that Gross Domestic Products in organizational Kaizen initiatives on the basis
Egypt is 229.5 billion USD in 2012. However of the standard, as Plan-Do-Check-Action,
there were some difficulties for industry were invented in the manufacturing
these days, such as the revolution with company in Japan (Deming, 1996; Florida,
governmental change in 2011, the election 2005; Enkawa, 2009; Enkawa, 2010).
with rude demonstration from 2011 to 2012 Enkawa (2010) mentioned that the meaning
and political fluctuation with rude of Kaizen is incremental improvement or
demonstration in 2012-2013, and so on. continuous improvement.
These circumstances could lead bad impact
to the industries in Egypt. For recovering QCC (Quality Control Circle) activities are
from the unfavorable situation in the small-group activities which are performed
economy, it is assumed that it is one of the by those working on-site at worksites that
important initiatives for each company to continuously perform quality management
make an attempt with business process and kaizen. QC Circle activities were
improvement like Kaizen. originally invented mainly at manufacturing
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Other knowledge management processes To our best knowledge, very few countries in
such as SECI (Nonaka and Takeuchi, 1995), Arab world, including Egypt, developed some
along with cultural changes and structural form of productive enterprises. These
changes, can increase an enterprise’s enterprises lacked innovative processes and
“readiness for transformation”. They are were generally satisfying the meager needs
therefore likely to enable a successful of largely unsophisticated, non-complaining
transformation. consumer communities.
Slater and Narver (1995) described the In this sense, author is interested in three
processes through which organizations research topics; 1) How did the Egyptian
develop and use new knowledge to improve professional firm acquire the know-how
performance. Knowledge? , 2) How did the customer of the
professional firm succeed in the QC Circle
Liu, Nagayoshi and Iijima (2012) discussed activities with the professional firm’s
how enterprise transformation, business support? , 3) What are the key factors for
process change, and organization learning success both in the professional firm and
affect each other. They identified “readiness” their customer?
to be an important factor for successful
enterprise transformation. This factor could Research Method
be affected by organization learning,
organizational culture, and organizational Author employed the case study method
structure. Liu, Nagayoshi and Iijima (2012) (Eisenhardt, 1989) and studied a single case.
also provided a promising way of analyzing The case study was based on four interviews
enterprise transformation or innovation- with three managers in Productivity
related problems at the ontological level Improvement Center at Cairo in Egypt, their
from an engineering perspective, which can presentation in a certain seminar and several
greatly reduce the complexity of problems documents such as the brochure,
while significantly enhancing effectiveness presentation materials and consulting tools.
and efficiency. Especially the interview which were
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The mission of Productivity and Quality In this section, three projects executed by
Improvement Center are 1)Driving Productivity and Quality Improvement
productivity enhancement by waste Center are described.
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and Quality Improvement Center provides consultants make a report and solution
a few trainings in Arabic. These trainings proposal for the executives, and then
often used to be supported by the experts make a presentation for executives
in Japan International Corporation Agency. with discussion.
And then, the workshop where the
attendees practice to use Kaizen d) Solution Installation: After the
methodology is held under the approval of the executive, the
supervision of Productivity and Quality consultants install the solution into the
Improvement Center. This is a trial of QC shop floors in the factories. When they
Circle activity. In this time, engineers who install the solution, they themselves do
graduated from faculty of engineering in presentation for the workers and
university, and technicians who are sometimes make prototyping for them,
working in factory but did not graduate never leaving the workers to improve
from faculty of engineering are separated by themselves. In other word, the
into different teams. At the cultural point consultants work with the workers
of view, engineers seems to be superior to together until they understand the
technicians, so if the mixture teams for new process/operations at the shop
the workshop are built, only engineers floors in the factories – this is called
tend to address the opinions, on the other “Genchi Genbutsu” in Japanese.
hand technicians tend to be silent.
e) QC Circles Activities Activation: At the
3) Consulting: Consulting activities are same time, QC Circle activities are also
conducted by six steps, as follows; started in the company to activate the
new process installed by the
a) Social Occasion Activities: Egyptian consultants.
workers in the factory, in general,
dislike to be pointed out their defects, f) Evaluation and Circulatalization:
thus they are often so conservative to After activation of the proposed new
change that they tend not to corporate process and QC Circle activities, the
with the professional consultants. The consultants not always but sometimes
professional consultants, however, visit the factory to evaluate whether
investigate the shop floors in the the new process and QC Circle
factories with assistance of the activities are effective or not with
workers. To close the mental distance measures. In case that the proposed
between the workers and the solutions are not effective, the
consultants, the consultants consultants propose other options. In
sometimes make effort such as making case that the proposed solutions are
frequent telephone call and spending a effective to get good results, the
social occasion even when it is on consultants elaborate new Kaizen
holidays. Though these efforts, the activities with the QC Circle.
consultants can get trusts from the
workers. Discussion
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Center? , C) What are the key factors for Center mentioned, the mentality of Egyptian
success both in of Productivity and Quality workers are different from Japanese worker
Improvement Center and their customer? like segregation of engineers and technician.
Based upon such knowledge of Egyptian
A. How did Productivity and Quality consultants, QC Circle activities were
Improvement Center acquire the know- localized in order to suite for the Egyptian
how Knowledge about Kaizen? culture. For example, engineers who
graduated from faculty of engineering in
To discuss this question, author applies SECI university, and technicians who are working
model to interpret the case study. in factory but did not graduate from faculty
First of all, before Productivity and Quality of engineering are separated into different
Improvement Center was officially teams, although all of the section member
established, the chair person in the technical from manager to worker join one team in
centers under the technological development case of the QC Circle in Japan. And the
sector, Ministry of Trade and Industry in Egyptian consultants in Productivity and
Egypt investigates several management Quality Improvement Center often contacts
methods and suitability of them for Egyptian with Egyptian workers over phone and spend
companies (Miyaji, 2012). Then Kaizen time with them even when it is on holidays to
method was tacitly recognized to be suitable make a mutual trust between the consultants
for Egyptian companies. This is Socialization and the workers. This is Combination process
process in SECI model. in SECI model.
Finally, the Egyptian consultants in
Second, Productivity and Quality Productivity and Quality Improvement
Improvement Center was officially Center continue to support the QC Circle
established and learnt Kaizen to provide the activities, and then gradually became able to
service with support by the Japanese Kaizen provide the services by themselves. This is
experts in Japan International Corporation Internalization process in SECI model.
Agency. This is Externalization in SECI model.
This SECI model in Productivity and Quality
However, as the executive manager in
Improvement Center is shown in Figure 1.
Productivity and Quality Improvement
• Investigation • Kaizen
of Kaizen Training
Method
Socialization Externalization
Internalization Combination
• Continuous • Localization
Kaizen of Kaizen
Consulting Activities
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B. How did the customer succeed in the QC Then, Productivity and Quality Improvement
Circle activities with the support of Center provides training course in order for
Productivity and Quality Improvement workers to acquire the knowledge about
Center? Kaizen and related tools. This is Stage 2 in
five stages model.
To discuss this question, author applies five
stages model in enterprise transformation After the training, Productivity and Quality
(Liu, Nagayoshi and Iijima, 2012) to interpret Improvement Center provides consulting
the case study. Stage 0 is one in which old service in order to improve the business
dominant logic is running. Stage 1 is one in process, eliminate wastes, and install QC
which organization is preparing for Circle in the customer companies. This is
transformation. Stage 2 is one in which Stage 3 in five stages model.
organization adds new logic. Stage 3 is one in
which organization is changing dominant Finally, the customer companies improve
logic. Stage 4 is one in which new dominant their productivity and quality, in addition
logic is running. Productivity and Quality Improvement
Center indicates the customer companies to
Customers of Productivity and Quality continue Kaizen activities such as QC Circle
Improvement Center ran their activities, and the customer companies do so
business/process with wastes before Kaizen by themselves with small assistance of
activities. This is Stage 0 in five stages model. Productivity and Quality Improvement
The executives of the customer have some Center. This is Stage 4 in five stages model.
knowledge about Kaizen. Productivity and
Quality Improvement Center explains and These five stages for enterprise innovation in
proposes Kaizen project, and then the Egyptian companies consulted by
executives are enthusiastic to dedicate Productivity and Quality Improvement
themselves to Kaizen project. This is Stage 1 Center are shown in Figure 2.
in five stages model.
Improve the
The executives are Acquire the
Running business process, Continue Kaizen
enthusiastic to knowledge about
business/process eliminate wastes, activities by
dedicate Kaizen Kaizen and related
with wastes and install QC oneself
project tools
Circle
C. What are the key factors for success both in does not establish essential manners to
of Productivity and Quality Improvement use well. On the other hand, Kaizen
Center and their customer? activities such as QC Circle activities are
so essential that Egyptian company can
1) Why was Kaizen Selected in Egypt?: easily use and execute it.
Traditionally Egypt has been affected by
Western countries to apply their 2) Segregation of Engineers and
management methods such as six sigma, Technicians: From the cultural back
but these are too advanced management ground, engineers who graduated from
method for Egyptian companies which the faculty of engineering in university
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and technicians who did not graduate Center provides not only training and
from the faculty of engineering in reports for solving issues and/or
university have curious mentality. In problems but also hands-on supervision
general engineers seem to be superior to in the factory shop floor. The professional
technician, although technicians are also consultants transfer their know-how
skillful. Sometimes QC Circle activities do knowledge to the workers, and sometimes
not step forward, when they do QC Circle make prototypes with the workers. These
activities together. Hence Productivity arrangements are also supposed to be one
and Quality Improvement Center usually of the key success factors for executing
makes an arrangement to separate Kaizen activities in Egypt.
engineer from technician for the sake of
their active discussion in QC Circle Implication
activities. In case that the two groups
make different idea, Productivity and As a professional consulting firm,
Quality Improvement Center play a bridge Productivity and Quality Improvement
role between the two groups. These Center provides not only training and reports
arrangements are supposed to be one of for solving issues and/or problems but also
the key success factors for executing hands-on supervision in the factory shop
Kaizen activities in Egypt. floor.
3) Mutual Trust Building: From the cultural Based on author’s experience in a certain
back ground, company workers tend not global professional consulting firm, there are
to easily trust each other. Such tendency a couple types of consulting services, as
is more for the outside professionals. In follows.
general workers usually tend not to
disclose the status in the company to A. Consider ‘SOLUTION’ with Customer
prevent them from being pointed out the
defects related to them. To build up In this type, professional consultants indicate
mutual trust between the workers and the the solution with customer.
professional consultants in Productivity
and Quality Improvement Center, the This type of service is sometimes prepared
professional consultants often make a apart from customer site. For example, when
phone call and visit, and sometimes spend customer needs ideas for their new business
the time with workers even when it is on and/or customer needs case studies for
holidays. These arrangements are also creating their own management systems,
supposed to be one of the key success professional consultants provide reports for
factors for executing Kaizen activities in finding the solution and/or discuss the
Egypt, although it seems to be one of the solution at customers’ office a few times a
most important factors to build mutual week based on the discussion papers which
trust all over the world. the professional consultants prepare at our
office.
4) Hands-On Support in the Shop Floor:
Some professional consulting firms This type of service is sometimes provided
provide training courses and reports as a on customer site. For example, when
consulting service. Unfortunately few consultants create the solution as a member
Egyptian companies, however, have of the customers’ company worker, the
enough knowledge and/or skills to professional consultants stay at customers’
execute the initiatives by themselves, office every day and discuss the solution with
which are taught and/or proposed by the executives at any time. Based on author’s
professional consulting firms. Hence experience, the professional consultants
Productivity and Quality Improvement generally get high customer satisfaction
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when they provide the service in this way. example, when customer needs research
The professional consultants in Productivity reports at the comprehensive and neutral
and Quality Improvement Center take this point of view, professional consultants make
way. research reports based upon their own
research and their experience.
B. Do Everything on of Behalf of Company
Staff Also professional consultants sometimes
provide lecture and/or coaching service as a
In this type, professional consultants work on discussion counterpart on customer site
behalf of worker on customer site. when the customer needs them.
For example, when there are too many issues Based on author’s experience, professional
for the executives to consider the important consultant cannot easily get high customer
issues and/or the executives are too busy to satisfaction, and it is also difficult to get a
solve the issues/problems but there are not continuous engagement. Hence Productivity
enough skills within the company staff, and Quality Improvement Center is supposed
professional consultants offer everything but to provide not only training service as a
decision making like staying at customers’ lecture but also on-site type of consulting
office every day, creating new idea proposal service.
papers, doing facilitation in the business
meeting, and making presentation on behalf These consulting delivery types are shown in
of company staff. Table1.
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