Asias Friendliest Experience Delivery System Terminal Report

Terminal Report PAGCOR Mabuhay Entertainment Experience Delivery System Technical Working Committee

Technical Working Committee Human Resource and Development Department

Asias Friendliest Experience Delivery System Terminal Report

Executive Summary This Terminal Report presents the imperatives for our transformation towards a service oriented business organization while laying down the frameworks, infrastructure and support mechanisms to achieve our vision of becoming a truly global and competitive government corporation. It summarizes the work conducted by the Technical Working Committee on Pagcor Mabuhay Entertainment Experience Delivery System.

Technical Working Committee Human Resource and Development Department

Asias Friendliest Experience Delivery System Terminal Report

Long-range planning does not deal with future decisions, but the future of present decisions. Peter F. Drucker

INTRODUCTION
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Asias Friendliest Experience Delivery System Terminal Report

Forces for change

urs is a time of a very turbulent yet exciting business environment. Economic powers are on the verge of shifting from the dominant West to countries in Asia particularly India, Japan, South Korea and China. Service industries now dominate the global business make-up, amounting to 55% of total economic activity in the US alone1. In the gaming sector, Asian countries has started opening up their economies to gaming firms. Leading the new entrants to the gaming business are Singapore, Taiwan, and Thailand. Noteworthy of course, is the opening up of Macau in 2001 to foreign casino investors, ending Stanley Hos 40-year casino monopoly. City Weekend Beijing, an on-line business magazine based in China, reported on 01 May 2006 that Macau raked in sales of US$5.8 billion in 20052. The Nevada Gaming Control Board reported casino sales of US$6.03 billion in the same year. For comparison, PAGCOR earned PhP 21.19 billion or roughly US$ 375 million in 20043. These changes in the market have great impact on how the Philippine Amusement and Gaming Corporation can claim its stake of the future. Can PAGCOR get a sizeable amount of the gaming money circulating in Asia? Strategic plan
Table 1. Balanced Scorecard, Group 3 l k h

Aware of these tremendous challenges, PAGCOR senior managers held a Strategic Planning SeminarWorkshop in August last year. The workshop participants identified our business strategy strengthening our resources to compete globally using our distinctive customer service as our most potent weapon and our people as our most valued ammunition. Core Values Early this year, the Board of Directors adopted as company policy the core values of PAGCOR: customer service excellence, integrity, teamwork and social responsibility. It is the Customer Service Excellence dimension that the TWC attempted to define through the PAGCOR Mabuhay Entertainment Experience Delivery System.

Revenue Growth

Financial

Satisfied, Happy Customer, More Customers, Longer Playing Time, More Visits

Customer

Courteous Employee, Faster Deals, Faster SM Servicing, Faster Delivery of Amenities

Internal Processes

Skills, Attitude, Enhancement of Casino Personnel

Learning and Growth

1. Train and Professionalize Personnel 2. Implement Reward System

STRATEGY

1 2

US Census Bureau. http://www.census.gov/econ/www/servmenu.html City Weekend. http://www.cityweekend.com.cn/en/beijing/cib/2006_05/casinos-power-macau3 2004 PAGCOR Annual Report Technical Working Committee Human Resource and Development Department

Asias Friendliest Experience Delivery System Terminal Report

Framework Setting On February 15, 2006, the Board of Directors approved the PAGCOR Mabuhay Entertainment Experience Delivery System (PMEEDS) as the guiding framework in coming up with a strategic and holistic customer service delivery system. It also approved the creation of the Technical Working Committee (TWC), convened on 01 March 2006 and tasked to review existing standards for front liners and align said standards with the PMEEDS. The envisioned output is a comprehensive service manual for all service providers. The TWC later on shortened PMEEDS to Asias Friendliest Experience Delivery System or AFEDS for easy recall, without losing its original meaning- that of providing a truly Filipino gaming experience. AFEDS consists of three major components- strategy formulation, implementation and strategic control and evaluation- geared to unite all company resources and initiatives in transforming PAGCOR into a customer-focused, service-oriented organization, true to its claim of providing Asias Friendliest Experience (AFE) in the gaming industry.
Define Target Experience

Rewards Programs

Develop standards

A s ia s F rie n d lie s t
Draft written policies
CUSTOMER SERVICE PACKAGE MONITORING

Develop hiring criteria

Remedial and Sanction Programs

Figure 1: MABUHAY EXPERIENCE DELIVERY SYSTEM

Develop training and orientation programs

Strategy Formulation

Implementation

Strategic Control and Evaluation

Scope of Committee Work The Technical Working Committee embarked on the review process with the end in view that a more responsive, realistic and practical customer service standards which are consistent with our market positioning strategy will be developed and codified into a manual. To achieve this, the committee went through the following key activities: Capability Building Continuous capability building activities were conducted to equip the members with necessary theoretical foundations on service marketing. Committee members pored over various literatures on service marketing to get a good grasp on how other service organizations perform. These were complemented with actual or practical observations of several service-oriented businesses, chief of which is our very own Casino Filipino.

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Asias Friendliest Experience Delivery System Terminal Report

TWC members went around Casino Filipino branches in Metro Manila where customer service contacts with customers were observed. East Bay Casino and Resort also was visited to benchmark their customer service, human resource and operations practices with ours. Review of Existing Standards for Front liners In assessing our existing customer service competencies as an organization, TWC used the Four Stages of Service Firm Competitiveness (Table 2) as guide in determining our current level. The Casino Observation Tours in the different Metro Manila Branches provided the TWC insights on the quality of our personal (interaction between service providers and customers) and non-personal contacts (tangiblesfacilities and equipment, including uniforms). The quality of our tangibles varies, from impressive to unappealing in each casino. The service providers were courteous and helpful, however, there were instances where delivery of service is slow and in particular (and almost consistent in all branches), preparation of a jackpot receipt took a longer time than necessary. During the TWCs focus group discussion with branch and corporate representatives, several issues on conflicting priorities were raised. Among these were issues on cost-cutting/ cost saving, limited manpower and unnecessary procedures/controls- innocently instituted to minimize/avoid expenses, error or fraud but adversely affects the quality of service delivery. Generally, the customer service delivery we observed can be described as inconsistent and highly dependent on many variables. These evidences suggest that our level of customer service competitiveness is between Stage 1 (Available for service) and Stage 2 (Journeyman), heavily characterized by the following: Customers patronize us because we are the only dominantly available option. Operations of the firm can be described as reactive, heavily relying on band-aid measures instead of treating organizational defects. Service quality is not consistent in all branches and across service areas (slot machine, treasury, gaming areas, etc.). Our back office is given importance, realizing its role in the service delivery but not yet fully maximized. We have yet to introduce the Player Tracking System as a way to record and manage customer information. Introduction of new technology is generally restricted due to shortterm cost considerations. Casino personnel follow stringent rules and procedures. Front line management generally controls the workers first, process second.

Stage 1 is a hit or miss service delivery. Providing quality customer service is highly variable and is less a concern than keeping costs down. Stage 2 on the other hand shows that PaGCOR has become aware of customer expectations and is now exerting incremental effort to meet them.

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TABLE 2 FOUR STAGES OF SERVICE FIRM COMPETITIVENESS4

Stage

1. Available for Service

2. Journeyman

3. Distinctive Competence Achieved

4. World Class Service Delivery The company's name is synonymous with service excellence. Its service doesn't just satisfy customers, it delights them and therby expands customer expectations to levels its competitors are unable to fulfill. Operations is a quick learner and fast innovator; it masters every step of the service delivery process and provides capabilities that are superior to competitors'.

Customers patronize Customers neither Customers seek out the service firm for seek out nor avoid the firm based upon its reasons other than firm. sustained reputation for performance. meeting customer expectations.

Operations is reactive, at best.

Operations functions in a mediocre, uninspired fashion.

Operations continually excels, reinforced by personnel management and systems that support an intense customer focus.

Service Quality

Raises customer Is subsidiary to cost, Meets some customer Exceeds customer highly variable. expectations, expectations, consistent on expectations and seeks consistent on multiple mutiple dimensions. challenges, improves dimensions. continuously.

Back Office Counting Room.

Contributes to service, Is equally valued with front Is proactive, develops its office, plays integral role. own capabilities, and plays an important role in the total generates opportunities. service, is given attention but still a separate role. A collection of individuals whose variation in needs are understood. A source of stimulation, ideas, and opportunity.

Customer

A market segment Unspecified, to be satisfied at minimum whose basic needs are understood. cost.

Introduction When necessary for When justified by cost When promises to enhance Source of first-mover of New survival, under savings service. advantages, creating ability Technology duress. to do things your competitors can't do. Workforce Negative constraint. Efficient resource, disciplined, follows procedures. Controls the process Permitted to select among alternative procedures. Innovative, creates procedures.

Control workers. First Line Manageme nt

Listens to customers, coaches and facilitates workers

Is listened to by top management as a source of new ideas. Mentors workers to enhance their career growth.

Identification of Moments of Truth (MOT) The technical committee proceeded on reviewing the casino service cycle (Figure 2) and identifying the various moments of truth with customer. To have something to start with, we limited our review only to personal contacts and touched a little about non-personal contacts, mostly under tangibles.

Benjamin Schneider and David E. Bowen, Winning the Service Game (USA:1995), 209-210. Technical Working Committee Human Resource and Development Department

Asias Friendliest Experience Delivery System Terminal Report

Seeks for valet services Leaves the Mabuhay Zone 11 Goes back to the 10 teller or chips/ tokens to cash exchanges. Goes to the comfort room.
9

12

...13?... Will they COME BACK?

Desires to come to the casino 1 Seeks for valet 2 services

3

E nters the Mabuhay Zone Pays the casino entrance fee

Orders food and 8 beverages

5 7
6

Goes thru Processing Point

Plays the table games, slot machines and/ or bingo

FIGURE 2: CASINO SERVICE CYCLE

Proceeds to the teller for cash to chips/ tokens exchanges

Initially, we identified a total of 235 moments of truth, which was later trimmed down to its final number, 86, when service providers having similar MOTs were grouped together. However, these MOTs are not exhaustive, in the sense that more MOTs may still be identified later on due may be to introduction of a new product, a new system, or a new process in the casinos. The Service Flowchart A service flowchart typically aids service providers and managers in mapping out their work flow to standardize each step in the service delivery process. A well-written service flowchart will state how much time a certain process must take place, who is responsible, and what to do in case of service failures. Unfortunately, we discovered that casino operations have no defined service flowchart yet, thus creating an atmosphere of confusion both to the service providers and customers. What is presented above is an overview of our service flowchart minus the intricate details, particularly on what to do in the event that a service failure occurs. It is not explicit about how far can a service provider go in placating a customer, when should it be referred to supervisor or manager, and how empowered these people are in recovering from service failures.

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Asias Friendliest Experience Delivery System Terminal Report

FIGURE 3: CASINO SERVICE FLOWCHART

Identification of Support and Facilitation Systems The support and facilitation systems will be thoroughly discussed in the recommendation section of this report. Setting Performance Standards and Measures Performance standards for service managers and service providers will rely on what the service manual dictates them to do. The manual gives very specific behaviors required of our service providers for each particular situation or encounter with customers. TWC however provided some starting points for both MSD and QCU to work on. The manual itself contains self- reflection questions dubbed as Mabuhay Moment Checklist which the service provider and other entities in charge of monitoring his performance can use as indicators. Latter part of this report also contains specific recommendations on how the monitoring system should be done consistent with the AFEDS framework.

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Asias Friendliest Experience Delivery System Terminal Report

Validation Process On June 14-16, 2006, TWC conducted Focus Group Discussions (FGD) with representatives from various divisions/units of all Metro Manila casino branches and concerned corporate departments to: Validate completeness and correctness of MOTs identified by the TWC Validate whether service promises are attainable and realistic Validate the usefulness of indicators for each SERVQUAL dimension Validate the appropriateness of recommended phrases

Generally, we received favorable feedback from the service providers themselves. Department heads likewise commended our efforts and sent their agreements on the initiative that further validated the TWC output. Specific comments and suggestions from FGD participants were then incorporated in the final drafting of the Moment of Truths.

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Asias Friendliest.

Each of us is

WINNING THE RAISE

Guide for Asias Friendliest Technical Working Committee 11 Human Resource and Development Department

Asias Friendliest Experience Delivery System Terminal Report

eing in the service industry, our employees are perceived by our customers as the organization itself. This means that their behavior and the experiences this behavior creates for customers are service quality in customers eyes. Since we carry the brand of being Asias Friendliest Casino, our customer expects that their experiences will be delivered by Asias friendliest employees. The TWC proposes the accompanying customer service manual - Winning the Raise: The Asias Friendliest Guide. This will serve as our Service Providers tool in delivering the Asias Friendliest Experience. Winning the Raise is titled as such to veer away from the usual manual format depicting a traditional, inflexible, and process-focused organization. Service orientation needs a flexible, innovative and people-centered strategy that will provide each Service Provider the following:

1.

Top Rater The Top Rater is a set of guiding principles that every employee must refer to when performing each moment of truth with a customer. It shall help us in setting the right employee mindset that will ultimately bring the ideal service behaviors. It is also a declaration of commitment to service quality. In crafting the Top Rater, the five service quality dimensions5, namely Responsiveness, Assurance, Tangibility, Empathy and Reliability were used as reference of an excellent service behavior.

2.

Grooming Standards (Annex B)

Formerly General Standards for Physical Appearance and Personal Hygiene

Being Asias Friendliest Service Providers, our employees are expected to enter the companys premises exhibiting an aura of neatness, orderliness, competence and readiness to serve customers. These can be achieved by strictly adhering to the grooming standards. 3. Moment of Truth (Annex C)
Customer Contact Standards for Service Providers

Moment of truth, as mentioned earlier refers to any time customers come in contact (personal or non-personal) with the organization and use that contact as basis for judging service quality. This is the meat of the manual, where each MOT for all service providers is identified and standards are set. Features of the manual Service Provider (SP) one of the main actors in every moment of truth; the term was adopted by the AFEDS-TWC rather than employees or front liners because it captures the essence of providing customer service compared to other names that
Valarie A. Zeithaml, A. Parasuraman, and Leonard L. Berry, Delivering Quality Service: Balancing Customer Perceptions and Expectations. (New York: The Free Press, 1990), p. 26. Technical Working Committee 12 Human Resource and Development Department
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describes what the SPs are doing. The term service provider has gained wide acceptance among customer service practitioners all over the world because of its suggestive value. Service Promise a guarantee we declare to the customers on what they can expect from the service and what action we will take to recover from service failures. Implicit a promise that is not stated openly to customers. It is evident through the actions repeatedly performed by service providers during each and every single Moment of Truth Explicit a promise that is openly stated and brought to the notice of customers, it may, for instance, be published in advertisements. It spells out the quality of service that customers can expect from the service organization. Being Asias Friendliest is the most explicit service promise that we give our customers. Service Outcome/Product comprises the basic service (also called the main or core service) and all supporting services that facilitate, enhance, and support the service process and yield customer benefits. A service outcome is the aspired result of a delivered service. Service products, on the other hand, are those augmented products that come with casino transactions Service Quality Dimensions (SERVQUAL) a set of globally accepted principal dimensions customers use to judge a companys service. TWC used these dimensions to provide basic standards in the delivery of each MOT. In order to effectively deliver the service promise, all five elements listed below must be present:

Table 3. The Five Service Quality Dimensions

Responsiveness Assurance Tangibles

willingness to help customers and provide prompt service knowledge and courtesy of employees and their ability to convey trust and confidence appearance of physical facilities, equipment, personnel, communication materials and even of other customers

Empathy Reliability

caring, individualized attention the firm provides its customers ability to perform the promised service dependably and accurately

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Asias Friendliest Experience Delivery System Terminal Report

Maximum Delivery Time (MDT) the length of time necessary for a particular service to be delivered, inclusive of a reasonable length of time to cover contingencies. Recommended Phrases suited phrases are enumerated to provide SPs with conversational tools in dealing with each MOT. These are only recommended phrases, they may be adapted when best suit the situation. They may also be translated in languages/dialects that will produce more positive results. Mabuhay Moment Checklist provides SP with self- reflecting questions to personally evaluate ones performance in a particular MOT. We want to encourage our SPs to be conscious of their performance so that the next delivery of the same MOT will be improved or exceed customers expectations. Mabuhay Zone In addition, TWC introduced a Mabuhay Zone, an area in the casino where customer experiences a distinct manner of reception. Service Providers greet customers with Mabuhay, a truly Filipino greeting that expresses elation upon customers arrival. It also connotes a wish of good fortune and safe travel for departing customers. The Mabuhay Zone starts at the main casino entrance where a customer is welcomed by the Doorman up to the area where qualifying tickets are sold by the Treasury Reception Assistant. It ends right after a customer has gone through the Processing Point. All SPs regardless of rank who are stationed at or passing through the Mabuhay Zone are expected to render the Mabuhay greetings to all incoming and outgoing customers.

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I will deliver service quality to customers if you deliver a quality work I will be responsive, courteous, reliable, understanding and so forth if you treat me that way, too. In other words, I am as important as you want me to feel customers are. But dont take advantage of me. You must not only provide for my security but also treat me as an adult and facilitate my work, and you must treat me fairly by rewarding me based on my contributions.
The Psychological Contract Benjamin Schneider and David E. Bowen, Authors of Winning the Service Game.

experience for me.

RECOMMENDATIONS
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A.

CONDITIONS FOR EFFECTIVE IMPLEMENTATION

W
1.

inning the Raise: Guide for Asias Friendliest is just one of the components of AFEDS framework presented earlier. True to its nature as a system, all of its parts should be independently working and seamlessly interconnected with the other parts at the same time, in order to be effective. Implementation of these standards requires other components of the AFEDS to be at work. This calls for the re-alignment, and to some extent, overhaul of all existing company policies and programs to make them consistent with and supportive of Asias Friendliest Experience. Thus TWC presents the following conditions for effective implementation: Re-align Hiring Policy

The creation of the customer service manual provides the Human Resource and Development Department with a tool not only in hiring new Service Providers but also in making judgment on an employees assignment, promotion, and other personnel action. The companys paradigm shift from gaming to entertainment dictates that we need people who are best equipped with customer service skills, people who are best suited to deliver our customers expectations, wants and needs. This means discriminately hiring people who can demonstrate the competencies in delivering the Asias Friendliest Experience by passing a rigid screening and hiring process. On the spot written examinations and interviews are not enough in gauging ones ability and capability in handling customer contact jobs. Though they may contribute a little, our hiring decision must concentrate on applicants behavior that we observed during the hiring process and on what we know they are capable of doing, not on what they tell us they are capable of. This leads us to the need to review and redesign our hiring policy to one that strictly looks for service competencies in applicants. Some available tools that may be looked at are the following: a. Behavioral Simulations we can design job simulations for our applicants. Job simulations create standardized condition that will require our applicants to role play the position he/she is applying for. Through this test, we can observe how the applicant handles given situations (from appealing to unappealing) and his ability to deliver the needs of the customers. b. Personality Testing for Service Orientation hiring the right personality type for a service position is important in our business. Generally, in searching for new Service Providers, it is also important to know their personal disposition, especially on how they view themselves. Happier people, those who positively view themselves and the world around them, prove to be happier at work, and their customers to be more satisfied.

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Examples of personality tests that can be considered by our company are: Hogans personality measure of service orientation (by Robert Hogan) service orientation is defined here as the willingness to treat coworkers and customers with courtesy, consideration and tact, perceptiveness regarding customer needs and the ability to communicate accurately and pleasantly.6 Personality Measurement developed at Personnel Decisions, Inc. (in Minneapolis) assesses friendliness, competence and the degree to which a person is practical and realistic, courteous, tactful, and open-minded.7 Personality Measurement developed at CORE Corp. (in San Francisco) is designed to assess active, polite, helpful and personalized customer relations.8 Service traits and Attitudinal Response (STAR) Profiling offers valuable insights into ones service attitude and helps to evaluate ones potential for providing excellent service. There are eight attributes to this profiling namely, Customerfirst Mindset; Positive Outlook; Professional Acumen; People Orientation; Basic Respect; Resourcefulness; Personalized Responsiveness and Reliability.9 c. Interviewing for Service Motivation- we can also use structured (competencybased) interviews wherein applicants will be verbally placed in situations they have experienced and will be asked how they behaved and why did they behave that way. Interviewers will then use a standardized scoring matrix to document the presence or absence of statements made by the interviewees with regard to the important motivations and competencies required for the position. Interviewers are then required to make judgments at the conclusion of the interview about certain indicators (see Table II for example). In this method it is also important to use more than one interviewer to yield better hiring decisions. One way in assuring that the objective of this method is achieved is by training the interviewers with the skills required. We should also start viewing job applicants as our customers, and prospective Service Providers. Their first contact with our organization is a crucial moment where first impressions are being created. These impressions will later be modeled by successful applicants (those who gets hired), believing that the standards of behavior accorded him during his application are the standards required of him when in contact with customers.

6 7

Benjamin Schneider and David E. Bowen, Winning the Service Game (USA:1995), 119-120 Ibid. 8 Ibid. 9 Productivity and Service Quality, Singapore Institute for Quality and Productivity, 27-28. Technical Working Committee 18 Human Resource and Development Department

Asias Friendliest Experience Delivery System Terminal Report

Table 3 Motivation and Competency Issues That Interviewers Must Rate at the Conclusion of a Structured Interview10 Client Service Is responsive to customer request even though the customer is not visible. Puts clients (internal/external) at ease in high-stress situations. Is patient with clients; controls temper. Solves problems for clients as a team member.

Oral Communication Listens and understands the spoken words of others. Communicates work-related concerns so they are understood. Communicates technical information so it is understood. Pressure and Adaptability Works under pressure (handles several requests at one time). Tolerates stress; bounces back quickly when frustrated, Adapts to changing work conditions and crises. Interpersonal Sensitivity Calms down upset people by being responsive to their concerns. Respects coworkers responsibilities/priorities as equal in importance to self in serving customers. Is gently assertive in explaining own point of view.

2.

Customer-Focused and Aggressive Training Programs

By providing adequate training programs to our employees, our company will not only equip our Service Providers with the professional, technical and customer service skills, it will also show that our company invests in them and has interest in bringing them along in the future. It builds a career for Service Providers in this particular industry, and not a dead-end. This also helps in keeping our employees motivated. The AFEDS includes developing orientation, training and probationary programs designed to prepare the employees to deliver the Asias Friendliest Experience on their first day of work and thereafter. With the customer service standards fully drafted, it is imperative for the company to design a training program to affect these standards. On July 03, 2006, TWC met with representatives from Metro Manila casino branches, Customer Service Core Group, Core Values Team and other key corporate departments to come up with the companys customer service training package in light of the service manual being drafted. Together with the service standards, it will also be best to educate our Service Providers with the service industry, the gaming sector, and the companys business strategies; skills in customer service, and managing their self concepts. Figure 3 provides an overview of the proposed service path for all Service Providers.

10

Benjamin Schneider and David E. Bowen, Winning the Service Game (USA:1995), 123. Technical Working Committee 19 Human Resource and Development Department

Asias Friendliest Experience Delivery System Terminal Report

Figure 3: Training Path for Service Providers

Introduction to the Service Industry

Core Courses
Customer Service Paradigm
Customer Service Paradigm

Pre-requisite Course
Vision/ Mission

Product Knowledge and Brand Recognition

Core Values Casino Filipino Products Marketing Programs

Technical Competency Courses for New SPs FLLTC for New FLLs

Brand Me ( Asias Friendliest Service Provider)

Emotional intelligence Personality Development (Grooming Standards) TOP RATER

Winning the Raise

Customer Service Plus: Telephone Courtesy, Service Recovery, Taking the Heat, Service Boosters, etc.

Customer Relationship Management Course: Building Customer Loyalty

Pre-requisite Course
Orientation Program for New Officers days

Core Courses
Senior Management Session on Service Management 4 Hours Role of Service Manager in Creating a Service Culture 1 day Alignment of Systems and Processes 5 Hours

Figure 4: Training Path for Service Managers and Trainers

Train-TheTrainers Workshop 5 days Orientation Workshop on Winning the Raise 1 Day

Orientation Program for New FLLs days

Orientation on PMEEDS 4 Hours Semi- Annual Briefing on Gaming and Hospitality Industries 1 day Quarterly Briefing on Customer Satisfaction Surveys 4 Hours

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Current training programs will then be incorporated within this service path while future programs will be developed depending on the needs of our Service Providers. Figure 4 shows a recommended path for service managers and corporate managers so they can also have complete appreciation and understanding of the industry. 3. Adoption of a Performance Management Program People are energized by needs; they are directed by pursuit of goals rewards in that that yield gratify that

If we want our employees to provide excellent service we should give rewards that will gratify their needs and these rewards must be contingent on the achievement of our service quality goals. Figure IV below suggests that correct hiring and training policies are not enough in ensuring consistent delivery of the companys service quality. Employees must be kept motivated from the moment they join the organization up to the time they retire.

needs; and they persist regularly yield rewards behaviors

It is important to note however that employees are already that gratify needs. energized or motivated by their need for security, esteem Benjamin Schneider and David E. Bowen, authors of and justice the moment they enter an organization. What Winning the Service Game the company needs to do is use these energies toward achieving its objectives or rather, make the employees goal congruent with the companys. This is where the role of rewards system comes in. All employees will be motivated because all employees have needs to satisfy and the rewards system will do the directing of behavior. FIGURE 5: THE ROLE OF REWARD SYSTEMS IN DELIVERING QUALITY SERVICE

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Asias Friendliest Experience Delivery System Terminal Report

In order for us to consistently execute Asias Friendliest Experience, we must adopt a rewards and recognition program that reinforces the prescribed employee behavior. Bob Nelson, in his bestselling book 1001 Ways to Reward Employees, identified the following elements of an effective rewards and recognition system: 1. 2. 3. 4. 5. 6. It should reflect the company values and business strategy Employees should participate in the development and execution of the programs The programs can involve cash, non cash or both The rewards should encompass variety to meet the varying motivational needs of employees The programs should be made public The program should be reviewed regularly

With all these in mind it is about time that we study all existing rewards, align them with company/ branch/ team/ individual goals. The following are kinds of rewards- formal and informal, cash and non cash in forms- that can be used by PAGCOR: Money as reward It is thought that people will do almost anything for money so we have to think how to use this to direct employees towards delivering excellent customer service. We must let our employees believe that being Asias Friendliest (complies with all service standards) means receiving more than those employees who come to work just to be present. The job as a source of reward It is said that people will be more satisfied at work if they will be able to deliver the job they were hired to do. Satisfied employees mean satisfied customers. This means that the job can provide motivation to employees. What the company must do is to define well the job, provide the employees with the knowledge and skills required, give them the opportunity to improve, and allow a certain level of empowerment or independence.
Without great employees you can never have great customer service. Richard F. Gerson

Management on the other hand needs to be consistent in its goals and policies both in words and action so as not to confuse the employees. Recognition and feedback as rewards The need for self esteem is the reason why recognition and feedback motivates employees to do better jobs. Simple ways of communicating with the employees that they did a good job, that what they did contributed to the companys success, that their presence meant a lot, etc. are considered rewards. As social beings, employees

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feel they are rewarded once they receive recognition and feedback from their customers, from co-employees and especially from immediate supervisors and managers. When done correctly, this form of reward is by far the most inexpensive. Achievement of goals as rewards Goal accomplishment is important when the goals are accepted as important. Goal accomplishment can be used as a basis for dispensing any other rewards such as money, feedback and recognition. Progress toward goal accomplishment and goal accomplishment will be given public recognition and will be celebrated. It is also important that goals that are set should be specific, challenging, achievable and are accepted service goals or committed in attaining the AFE. Goals may be written as achieving zero customer complaint in one year or receiving 5 commendations a month from satisfied customers. In light with the implementation of our Code of Discipline, simple yet frequent rewards can serve as mitigating factors for simple infractions/ misconduct. 4. Positive Remedial and Sanction Program

Part of strategic control and evaluation component of the AFEDS is developing remedial and sanction programs. A thorough monitoring system will enable the company to identify substandard performance rooted on problems in equipment, system, procedure, policy or people. The visionary companies have such clarity about who they are, what they are all about, and what they are trying to achieve, they tend to not have much room for people unwilling or unsuited to their demanding standards.
Built to Last: Successful Habits of Visionary companies, James Collins and Jerry Porras

The role of remedial programs is to offer additional trainings, seminars or even counseling to employees with gaps in performance, specifically to address a problem or deficit in any of the required competencies (attitude is part of a competency). Remedial programs are not punishments but reinforcement mechanisms that can be used to bridge the gaps in performance. Sanction program on the other hand are needed to deal with employees who continually fail to meet standards of performance despite undergoing specific remedial programs. If the same employee keeps needing remedial training and/or can not pass remedial training standards, then he/she needs to be separated from the company. It is important that the employee will be able to fit in the companys service culture. If this is not possible then the company has no choice but to replace the employee for substandard performance and be purged out of the system.

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B.

POLICY IMPLICATIONS: THE THREE SHIFTS

Shift in Logic In our own corporate setting, tasks are allocated by departments. These departments, having different goals, have, by necessity, different priorities. These priorities define the logic that governs each department. More often than not, these logics come into conflict with one another. For example, concern for game protection (Surveillance logic) may decrease the number of deals (Operations logic); while cost cutting measures (Accounting logic) may have adverse effects on marketing efforts (Marketing logic), and so forth and so on. Customers are not interested in our internal conflicts and problems. The most important consideration for them is how their needs are met. To meet customer needs, these opposing logics will have to be welded into one synergistic logic the sole purpose of which is to make our customers happy by giving them the kind of attention they want.

Figure 6: Customer Focus PAGCOR Synergy towards achieving customer satisfaction

Therefore, to enhance our customer service capabilities, we will have to shift from multiple, disparate and, oftentimes, contradictory functional logics towards one unified and dominant logic. This one synergistic logic is what is known as Service Logic. Service Logic considers service delivery from the perspective of customers, and then works internal systems around perceived customer preferences. When all functional departments have the best interest of the customers in mind, or when they employ service logic in instituting policies, conflict and contradictions will be eliminated. Shift in Strategy The strategy we employ to meet our income projections is to expand our market while retaining our customer base. More often than not, we look at our financial performance as our sole bottom line, and forget the rest. A shift in strategy means that revenue is not the sole indicator of our firms performance. It means that we should include, in our plans and goals, other indicators towards achieving competitive advantage. These indicators include, but not limited to the following:

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Market share (local and foreign) Brand equity Customer attendance (new players, repeat customers, quality of customers) Customer satisfaction Employee satisfaction (including quality of employees and applicants) Turn over rate

Shift in Culture Years of continuous growth has made us complacent and, to a significant degree, indifferent to the changing needs of our market. Many among us still choose to believe that customers will continue patronizing our casinos no matter what happens. Thus, resistance to change remains strong among our officers and employees. Though outwardly proclaiming approval and support, in reality, some people pay little more than lip service to marketing and customer service initiatives, regarding these initiatives as being unnecessary and irrelevant, even wasteful. This attitude not only shows a lack of appreciation for the context within which casinos operate, but also fails to recognize the direct relationship that exists between corporate health and their own economic well-being. In the meantime, our drive towards customer service excellence still has to overcome corporate inertia. Shifts in logic and strategy can only be sustained through a corresponding shift in corporate culture, the most efficient and effective way to effect lasting and permanent change. Culture change, however, can only be as pervasive as it is persistent. Persistence is the name of the game. Our every action must reinforce culture change. Unless our corporate environment becomes supportive to culture change, no progress can be expected in our customer service enhancement efforts.

C.

SPECIFIC RECOMMENDATIONS

Going back to the Four Stages of Service Firms Competitiveness, Stage 3 is when distinctive competence is achieved,when a firm exceeds customer expectations and has become consistent on multiple dimensions. Stage 4, world class service deliverywhen a firm has raised customers expectations, seeks challenges and improves continuously. The companys name becomes synonymous with service excellence. TWC has come up with the following specific recommendations that will help PAGCOR deliver the Asias Friendliest Experience, and hopefully, will lead us to Stage 4 service firm. 1. Create standards for Support Service Providers TWC drafted the standards for front line Service Providers. It is equally important to create standards for our Support Service Providers (SSP). By SSP we mean all other employees, work units or departments whose functions directly or indirectly affect the
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front line SPs in delivering AFE to our external customers. Each SSP must also practice the virtues of Asias Friendliest Service Provider to all internal customers. 2. Manage Tangibles The tangible features of a business greatly influence the perception of customers. The physical surrounding of employees and customers are incorporated in the psychology of service quality that they experience. State of the art equipment, appealing uniforms and physical environment of the facility influences customers on how they perceive the service quality of a firm. Areas where tangibles or physical evidences of our friendliness are identified below: Parking area Driveways Faade Building and surroundings Comfort rooms Main lobby Elevators Tellers booth Concierge counter Offices Gaming equipment Slot machines Tokens Signage Gaming paraphernalia including cards Physical appearances of customers (dress code) Vehicles / shuttle service

There is no written standard on how our facilities, equipment and materials should look like. Even though we do not always aspire for top-of-the-line equipment or materials, there should at least be minimum qualifications on what to use, until when to use it (life span or useful productive life), and how should these materials appear as part of our servicescape. A servicescape is how Mary Jo Bitner11 describes the physical surroundings of employees and customers in service firms. This includes environmental features such as temperature, noise, music, layout features, space and furnishings. Other non-personal contacts that need to be standardized are phone conversations with customers, product/ brand advertisements, correspondence, and other contact points with customers that involve indirect/ nonhuman interactions. 3. Give a friendlier atmosphere for customers Not only should we have facilities, processes and people that are friendly to our customers. A deliberate initiative that makes it easier for customers to understand our business must also be put in place. Examples on this are educating our customers--be it on new policies, tutorials on various games for new customers, and including Mandarin, Hanggul and Nihonggo translations in directional signs (comfort room, clinic, concierge, etc.) and other important notices or announcements. A sign in the
11

Author of Servicescapes, 1992 Technical Working Committee 26 Human Resource and Development Department

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concierge that we provide language interpreters for these three languages should also be prominently displayed. Lastly, selling of show tickets and bingo tickets by our Service Providers have become a nuisance to some customers. We should review this policy and implement a subtler and softer ways of selling these tickets. 4. Consider improvements on policies on uniforms We should re-study our policies concerning uniform of employees particularly the following concerns: Provision of nameplates, preferably made of metal, to all SPs, indicating nicknames only to give a friendlier and personalized touch. Provision of lockers to all SPs that are spacious enough to accommodate two (2) sets of uniform, shoes and other beauty/ hygiene items. Provision of changing rooms complete with toilet and bath for SPs who commute to work. This will encourage SPs not to wear their uniforms in public places, preventing it from getting soiled or creased. Explore the possibility of providing in-house laundry service to ensure and maintain well-pressed, freshly- laundered uniforms. Expand participation of Service Providers on matters concerning their uniforms (color, style, materials used, etc.) Consider issuance of uniforms every year instead of every two years so as not to prevent uniforms from looking old and worn-out.

5.

Issue Grooming Kit as part of uniform A Grooming Kit can be included as part of the uniform which will contain basic grooming items such as comb, nail cutter, toothbrush and shaver (for male employees), among other. This will be issued annually to each employee.

6.

Facilitate the work of Service Providers by providing appropriate work tools Not only should the company equip our service providers with appropriate skills through rigorous training. Equally important is the provision of appropriate work tools to facilitate a service providers job. Examples are: Wireless phones for Pit Supervisors per gaming area Two-way radios for shuttle service and valet drivers Empty Token Tube Station located in strategic areas for easy retrieval/ disposal of used token tubes Another set of uniform for SPs doing dirty jobs (example: collared polo shirt for Slot Machine Attendants/ Technicians during hopper collection).
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7.

Air Sea Guide for Concierge / ARO Business cards for Concierge / ARO staff

Regularly review business processes We have policies and procedures that are outdated and redundant. We should take advantage of the innovations in science, information and communications technology to streamline our business processes- making it quick, easy, and userfriendly. Review of our business processes should be a continuing and participative exercise to make sure that they complement and not damage our efforts to become excellent provider of customer service. Wasteful processes should be eliminated. Introduction of the Slot Machine Computerized Receipt System and the Gaming Information System/ PTS will further enhance our customer service delivery but only when we allow the use of their maximum potential in providing faster and accurate service. On the other hand, implementing a new system that will be seen by end-users and customers as additional layer or burden that results to more paper works, signatories, and waiting time will contradict our goal of providing the friendliest experience. Information Technology will have to play an important role in planning, designing, implementing and controlling our information systems. It should serve as the backbone of our business processes.

8.

Measure and manage performance Managing and measuring performance can be conducted in three levels: individual (each Service Provider/ Support Service Provider), team (work units/ branch) or organizational (company-wide). Our recommendations include: Design a customer satisfaction measurement system that will capture information or feedback from customers regarding quality of our customer service delivery. Devise an employee feedback system that will encourage team synergy and friendly employee-management relationship by opening up channels for formal and informal communications. Regularly conduct Work Climate Survey or Employee Satisfaction Survey as one of the formal mechanisms to hear out the grievances, motivations, and concerns of our employees. Conduct regular monitoring and review of the performance appraisal system taking into account the proposed standards for service providers. Spot checks can also be utilized to measure compliance of SPs.

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9.

Institutionalize a system for monitoring and control /feedback and reporting The Quality Control Unit should spearhead the monitoring of individual and group/ branch performance on a regular basis. QCU should come up with a strategic and comprehensive service quality assurance plan that can aid in managing organizational performance consistent with AFEDS. Feedback and reporting mechanisms should be part of this plan, to serve as inputs to the rest of the components of AFEDS-- hiring, training and rewards. Measuring the indicators of the desired service quality will be the task of evaluators designated by the company. The appraisal of the processes and outcomes must be done on a regular basis.

10.

Institutionalize briefings before and after duty shift Briefings should be part of the service culture. All Service Providers must be knowledgeable of the goings-on in the casino. Service Managers on the other hand, are expected to disseminate all relevant information to the Service Providers. A briefing should be formalized in the sense that a uniform agenda must be set for all work units/ departments. Of course, specific items in the agenda may vary according to the role, function and focus of a certain work unit. Briefings however may also be casual or informal, in the sense that employees are encouraged to participate and ask questions. It should be a two-way communication exercise where no one party monopolizes a discussion. It can also be a venue for pep rally, where good performers from last days work will get recognized and morale of SPs will get boosted through motivational stories, sharing of success stories and the like. We can also take advantage of briefings (after duty) as our means of getting immediate feedback from the service providers. Since they are closest to customers, important customer concerns can be communicated instantly.

11.

Explore the possibility of adopting a 10-hour duty shift in all branches Branches will retain its operating shift schedule but will have to adopt a 10-hour work shift for all Service Providers, making all employees report to work one hour before the operating shift starts. Similarly, they will leave one hour after the next operating shift starts, as shown in the table below. Duty Shift 5:00am- 3:00pm 1:00pm-11:00pm 9:00pm- 7:00am Operating Shift 6:00am- 2:00pm 2:00pm- 10:00pm 10:00pm- 6:00am

Table 4. Proposed Duty Shift Schedule vis--vis Operating Shift

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The 1-hour allowance given before and after each operating shift will allow smooth transition and turn-over of responsibilities to the next service provider. It also gives quality time for briefings and other housekeeping activities. Branch committee meetings may also be conducted during the overlapping hours, encouraging employees to be actively involved in branch activities since meetings can now be conducted within ones shift schedule. 12. Consider External/ Third Party Assessment In order to seal our commitment to service quality, the company may seriously consider the assistance of third-party quality assessors to help us institutionalize our service quality initiatives. We may start with the Philippine Quality Award. PQA is the highest level of national recognition for exemplary organizational performance. It aims to stimulate local companies and organizations to improve quality and productivity for the pride of recognition while obtaining a competitive edge and providing example to others. The PQA establishes guidelines and criteria that can be used by local organizations regardless of size, sector and maturity. It also provides specific guidance for globallyminded organizations that wish to learn how to manage for high quality by making available detailed information on how recipient organizations were able to change their cultures and achieve eminence. Thus, it promotes sharing of information and benchmarking of best practices and results among organizations pursuing quality improvement.12 13. Include non-organic employees in customer service training Contracted or outsourced employees like security guards and janitors, including waiters and food servers should also undergo the same customer service training that we give our employees to ensure uniform quality of service. A system for qualifying outsourced or third- party service providers must also be instituted. 14. Imputing cost of service excellence Cost has always been an issue in deciding whether a new project should be implemented or a new machine purchased. Our pursuit for service excellence compels us to review our cost concept particularly in making strategic choices. A standard for cost-effectiveness should be created, including among others the factors that determine cost-effectivenessreturn on investments, net present value, long term cost and benefits, etc. An IT project that is developed in-house may be cheaper at short glance but delays and manpower cost would make it costlier in the long run.

12

Official website of Philippine Quality Award. www.pqa.org.ph Technical Working Committee 30 Human Resource and Development Department

Asias Friendliest Experience Delivery System Terminal Report

The total cost of quality13 framework may be adopted for analyzing the expenses associated with providing quality service. It proposes that service firms consider the four components of the total cost of quality in making effective decisions. These are the Assurance Cost (expenses incurred in inspection, collecting and processing quality control data), the Prevention Cost (cost of training, quality improvement programs, process modifications and vendor- qualification programs), the Internal- Failure Cost (cost of re-working or re-doing faulty services before it reaches the customer), and the External Failure Cost (cost of placating a customer/ cost of service failures) . The sum of these components makes up the total cost of quality. It is not often wise to control only one of these four components in order to minimize total cost. In fact, by spending the right amount for each cost factors, reworking a service would become unnecessary and defective materials would have been intercepted before a customer gets unsatisfied. By skipping one of these cost factors for sheer austerity would prove to be costlier in long run. It would cost us an unhappy customer that may never return but tells everyone he knows how bad his experience was with us. 15. Printing and dissemination of manual The TWC strongly recommends that copies of the Winning the Raise: Guide for Asias Friendliest be distributed to all employees during training. Said manual should also be printed in full color using good quality paper. Its lay-out and design must be reader- friendly to encourage our Service Providers to read through it from time to time. The manual should also reflect what a quality product must look like. Annex C discusses the complete publishing requirements of the manual.

D. Daryl Wyckoff, New Tools for Achieving Service Quality, Cornell Hotel and Restaurant Administrative Review, 1984. Technical Working Committee 31 Human Resource and Development Department

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Asias Friendliest Experience Delivery System Terminal Report

ACKNOWLEDGMENT
The five months that the committee spent in looking at our current level firm of competitiveness a daunting, as a service and and

identifying areas for improvement has been experience. educating challenging

Arnold Cesar O. Romero Sr. Training and Development Officer Human Resource and Development Department Chairman Lourdes C. Barrios Treasury Head Casino Filipino Pavilion Vice Chairman Maria Victoria M. Gutierrez Pit Supervisor Casino Filipino Pavilion Secretary Members

Amidst all these, it is the power of positive thinking our ability to perceive reality and at the same timedream of a better, nobler, higher possibility persistent and unmovable in throwing in our two cents worth towards attaining service excellence. We that has made us

providing us a compelling vision for our future.

thank

our

corporate

leaders

for

Rodil L. De Los Reyes Senior Marketing Officer Marketing and Casino Customer Relations Department Alfredo P. Yabut Pit Supervisor Airport Casino Filipino Carmelo S. Songco Assistant Chief Security Officer Casino Filipino Hyatt Dominic R. Foz Slot Machine Supervisor Slot Machine Department Dennis M. Calamba Training Facilitator Human Resource and Development Department

We thank our managers for giving us this rare opportunity to be of service to PAGCOR.

We thank all those who have contributed work.

their share in the course of our committee

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