Competitive advantages based on pricing, product, or processes are often short-lived. And let’s face it, it’s no easy task to drive continuous growth and sustain a competitive edge in your industry. Market conditions can be volatile. Competitors are constantly nipping at your heels with shiny new products. Technology is evolving at a breakneck pace. Customers are demanding faster, more responsive, and personalized service. Employee values and expectations are shifting, with Millennials now comprising the largest generational cohort in the workforce. One competitive advantage you can leverage consistently—a differentiator that can’t be duplicated—is your company culture. Your culture is unique to your organization, helping to shape your company’s brand identity, improve employee retention, and inspire and motivate your people. Companies are awakening to the business value of strong company culture; eighty-two percent of people responding to Deloitte’s 2016 Global Human Capital Trends survey characterized company culture as a potential competitive advantage.

1. Developing Service
Culture For Sustainable
Competitive Advantage
from Organizational
Design
Seta A. Wicaksana
Founder and CEO
www.humanikaconsulting.com

2. “You do not work
for your company.
You work for your
customers”

3. Seta A. Wicaksana
0811 19 53 43
wicaksana@humanikaconsulting.com
• Business Psychologist
• Pendiri dan Direktur Humanika Consulting dan hipotest.com
• Dosen Tetap dan Peneliti di Fakultas Psikologi UP
• Pembina Yayasan Humanika Edukasi Indonesia
• Wakil Ketua Asosiasi Psikologi Forensik Indonesia wilayah DKI
• Penulis Buku: Sobat Way (2016), Industri dan Organisasi: Pendekatan Integratif
dalam menghadapi Perubahan (2020), Human Faktor Engineering: Integratif Desain
Manusia dan Lingkungan Kerja (2021), Psikologi Industri dan Organisasi (2021),
Psikologi Umum (2021), Manajemen Pengembangan Talenta (2021), PIODiagnostik:
Pengukuran Psikologi di Lingkungan Kerja (2021), Transformasi Digital: Perspektif
Organisasi, Talenta dan Budaya Organisasi (2021), Psikologi Pelayanan (2021) dan
Psikologi Konsumen (2021).
• Dosen Tidak Tetap di: Program Pasca Sarjana Ekonomi di Univ. Pancasila, STP
TRISAKTI, Fakultas Psikologi Universitas Mercu Buana, STIKOM IMA
• Certified of Assessor Talent Management
• Certified of Human Resources as a Business Partner
• Certified of Risk Professional
• Certified of HR Audit
• Ilmu Ekonomi dan Manajemen (MSDM) S3 Universitas Pancasila
• Fakultas Psikologi S1 dan S2 Universitas Indonesia
• Sekolah ikatan dinas Akademi Sandi Negara

4. Introduction
• Competitive advantages based on pricing, product, or processes are often short-lived. And
let’s face it, it’s no easy task to drive continuous growth and sustain a competitive edge in your
industry. Market conditions can be volatile. Competitors are constantly nipping at your heels
with shiny new products. Technology is evolving at a breakneck pace. Customers are demanding
faster, more responsive, and personalized service. Employee values and expectations are
shifting, with Millennials now comprising the largest generational cohort in the workforce.
• One competitive advantage you can leverage consistently—a differentiator that can’t be
duplicated—is your company culture. Your culture is unique to your organization, helping to
shape your company’s brand identity, improve employee retention, and inspire and motivate
your people. Companies are awakening to the business value of strong company culture; eighty-
two percent of people responding to Deloitte’s 2016 Global Human Capital Trends survey
characterized company culture as a potential competitive advantage.

5. “Believes that there is no magic
formula for great company
culture; he says that the key is to
treat your staff how you would
like to be treated. The question
though is “how many of us are
even clear about how we would
like to be treated?” Building a
culture of service excellence is a
leadership responsibility.
Sustaining the desired culture is
everyone’s responsibility.”
- Richard Branson, founder of Virgin Group

6. “What Drives A Sustainable
Competitive Advantage for The
Organization?”
• A great strategy may drive customers to your company, but a sustainable competitive
advantage can keep customers with you over time.
• Culture: A Sustainable Competitive Advantage. A strong culture can be a sustainable
competitive advantage—if not the only sustainable competitive advantage—because it cannot
be duplicated, unlike a product, price point, or delivery system.
• A healthy company culture provides an environment that supports stronger recruiting, and
retention, increased customer intimacy and loyalty, greater productivity, and an increased
sense of employee ownership. A strong culture also directly impacts the bottom line.
• According to a 2015 article in Harvard Business Review, a positive corporate culture helps
companies achieve significantly higher organizational effectiveness, including increased
productivity, employee engagement, financial performance, and customer satisfaction. A
strong culture boosts commitment and engagement while fostering collaboration,
communication, and teamwork—which translates to a positive employee experience and a
buoyant bottom line.
• An inspiring company culture can nurture creativity and fuel innovation, facilitating team-
based problem-solving and decision-making that further business goals. Research conducted
with Silicon Valley companies found that firms with employee-friendly cultures are nearly four
times more likely to align their innovation strategy with their overall business strategy.
• Strong company cultures are magnets for employees, both prospective and current.

7. There’s A Three-Part, Intentional Process to Set The
Climate
Define the culture: Have you clarified the driving organizational values,
beliefs, and behaviors that will help you distinctively serve your
customers?
Align the culture: How do you turn your values into ongoing norms of
behavior within your organization?
Monitor the culture: How are you supporting the environment? How are
you getting and giving feedback?

8. Three Actions You Can Take to Invest Time in
Developing Your Culture
Clear
Make sure your
vision, mission, and
values are clear.
Hire
Hire people who
align with your
company values
Provide
Provide ample
opportunities for
input.

9. Research Talk
Today’s business world is characterized by unpredictable, high volatility, and
cut-throat competition. The challenge to remain competitive, highly
innovative, and respond to dynamic customer needs has made organizations
pay particular attention to culture as a key foundation of their survival and
sustainability. (Muriithi, 2021)
3 of 4 Organizational culture three types of organizational culture –
adhocracy culture, market culture, and hierarchy culture - have significant
and positive effects on sustainable competitive advantage (Almuslamani and
Daud, 2018)
That organizational culture aligned with a strategy is the inner strength of
the organization, significantly improving its competitiveness. One of the
most important elements in the process of change is the correct diagnosis of
the difference between the current and the desired cultural characteristics.
In this case, the important cultural gaps covered such areas, as the company
structure, procedures, and internal and external communication.
(Bogdanowicz, 2014)

10. Service Culture
The basic definition of service
culture is an environment
where employees are obsessed
with providing superior
customer service to clients.
This means going above and
beyond the call of duty to
ensure the people paying for
your goods and services are
delighted.

11. Service Culture
• In sustainable, Service cultures, behaviors (the way we
do things here) are inextricably linked to relationships,
informed by attitudes, built on a rock-solid base of
values, and completely appropriate for the environment
in which the organization chooses to operate. As Simon
Sinek famously pointed out, most organizations think
about what – how – why.
• Great leaders and great organizations start with why
(environment and values), then look at how (attitudes
and relationships) before getting to what (behaviors).
• Behaviors: What impact? Implementation.
• Relationships: How to connect? Communication.
• Attitude: How to win? Choices.
• Values: What matters and why? Purpose.
• Environment: Where to play? Context.
• It’s the context that makes it so hard to duplicate a
service culture. Because every organization’s
environment is different, matching someone else’s
behaviors, relationships, attitudes, and values will not
produce the same culture.

12. Importance of Service Culture
• First, having a focus on making sure the customer is satisfied is
just an easy way to have a stronger organization. Not only will
your reputation be much more favorable if you’re focused on
the customer, but there’s also a good chance that the number
of repeat customers you have will increase.
• Second, the strong relationship between service and culture of
an organization goes even farther than the ability to enjoy
more sales and a higher level of customer loyalty. Another
benefit of a strong service culture is increased employee
motivation and better customer experiences. Just think how
many employees might actually enjoy their workday if they
aren’t constantly yelled at or berated by irate customers.
• Third, your reputation means a lot. If your company is widely
known for rudeness to customers or unhelpful staff, there’s a
good chance that they won’t continue to choose you over your
competitor. For firms in incredibly tight markets, this can mean
the difference between making a sale or not.

13. Integrated Service
Culture Model in
Organization
Customer
Loyalty
Customer
Satisfaction
Culture
Learning &
Improvement
Innovation
Strategic Excellence
Operation Excellence
(Wicaksana, 2022)
Sustainable
Competitive
Advantage
Competitive
Advantage
Leader Strategy
Talent System
Service
Quality

14. Service
Organization
Structure

15. Decentralized
Structure
• There are as many different types of service
organizations as there are services to be
bought and sold.
• Some companies offer cloud computing
services, while others offer medical billing or
credit card processing, or IT services. Any time
a company needs to outsource a function
rather than create a department to perform it
in-house, it does business with a service
organization.
• Because service organizations need to be
accessible to their clients, the typical service
organization is either local to a particular area
or decentralized.
• A medical billing company might provide
services for all doctors in a particular town or
region. A payroll firm might be based in just
one city or might have local offices in several.

16. Blurred Boundaries
• Companies that sell products usually classify
employees into clearly defined roles.
Shipping, marketing, sales, and customer
service are all different departments with
different roles and responsibilities.
• Companies that sell services usually have
fewer distinct roles and the boundaries
between roles are often blurred. For
instance, a database administrator at an IT
services company may also perform tasks
associated with project management. A
medical billing specialist may also be involved
in resolving customer service issues.

17. Complex Skills
• Employees who work for product organizations usually need only one
narrow set of skills to perform the job to an acceptable level. For
instance, a sales professional must be good at closing sales and a
shipping manager must have good organizational skills.
• Employees who work for service organizations usually need to have a
wider range of skills and those skills are often more complicated. For
instance, an IT services professional needs to be able to perform all of
the technical aspects of the job but must also have the interpersonal
skills needed to interact effectively with clients and the employees at
the client's workplace.
• This can include customer service, conflict management, and training
skills as well as technical skills.

18. Organizational Options
• Because service organizations typically have fewer distinct
job roles, looser boundaries between roles, and a
decentralized structure, employees of service
organizations can sometimes find themselves reporting to
several different supervisors with different expectations
and priorities.
• To avoid contradictory and confusing instructions and poor
allocation of time and resources, some organizations use a
structure based on services or processes rather than job
functions.
• In this type of structure, a service owner is responsible for
all aspects of a particular service performed by the
company, and a process owner is responsible for all
aspects of a particular process used to perform that
service.
• This type of structure allows the company to specify the
priority to be given to each aspect of a service or process
rather than leaving the employee to determine that for
herself while dealing with the conflicting demands of
several managers.

19. Customer
Service
Organizational
Structures
• Customer service organizational structures within companies allow
professionals to deliver the best customer service possible, meeting
business goals and satisfying consumers.
• Customer service businesses can have a variety of organizational types,
depending on their size, functions, and managerial preferences.
• If you're interested in providing better customer service and experiencing a
clear management structure, you may benefit from learning about
customer service organizational structures.

20. The Structure Provides The
Following Benefits
• Knowledge share. The company can reuse knowledge or skills developed on
one project, across other projects or clients.
• Professionalism. Each function focuses on training and knowledge of the
specific role by the responsibilities of the role (R&R).
• Performance Indicators. Each role is set with its Key Performance Indicators
(KPI). Each function can be measured and scored.
• Every person knows what’s expected from him and can improve his
performance accordingly.
• The company’s overall performance becomes predictable. That in turn
means:
• Customers know what to expect as far as scope, price, commitments, and
KPI, as well as who are their focal points for the different areas and are
more comfortable buying.
• The company can make investment decisions knowing what the return will
be.
• There is a clear owner for every task.

21. What is the customer service
organizational structure?
• A customer service organizational structure is the hierarchy
and roles that a company establishes within its customer
service department.
• Customer service organizational structures help
professionals understand the expectations for their roles
and which managers and team lead they should contact
concerns.
• Because it helps better define the hierarchy of a
department and assigns specific roles to professionals,
customer service organizational structures also help build
stronger, more functional teams.

22. Why is organizational structure
beneficial to customer service?
• Employment opportunities: Companies with customer service
organization structures often have more job opportunities, ranging
from entry-level positions to management roles.
• Teamwork environment: This organizational structure often
encourages teamwork by establishing teams to be responsible for each
task, fostering an environment of collaboration and accountability.
• Smooth daily operations: Because each professional understands what
they're responsible for, companies with customer service organizational
structures are often less likely to repeat tasks or have
miscommunications.
• Fair hierarchy: Many customer service organizational structures have a
hierarchy system that allows professionals to consult more than one
supervisor, which helps share managerial responsibilities and ensure
fairness in management decisions.

23. “Mechanistic” and
“Organic - flat”
• The mechanistic structure represents the
traditional, top-down approach to
organizational structure, whereas the
organic structure represents a more
collaborative, flexible approach.
• Burns and Stalker claimed, “a
mechanistic management system is
appropriate to stable conditions”
whereas an “organismic form is
appropriate to change conditions, which
give rise constantly to fresh problems
and unforeseen requirements for action
which cannot be broken down or
distributed automatically arising from
the functional roles defined with a
hierarchic structure.”

24. Several Common
Structures
• Functional Structure – The most common structure is based on common job functions.
From the Professional Services perspective, professional & customer services people are
placed together in one group. Easily scalable and allows for a high degree of specialization.
Downside –Creates a “firewall” between functions and is less efficient for companies with
multi-products and various markets.
• Product based structure – Consists of several functional smaller structures. Each
functional structure is dedicated to a specific product line. From a Professional Services
perspective, each functional product structure has its resources and functions. Each
functional structure is a standalone Business Unit and P&L. Downside - The company may
end up with duplicate resources.
• Market-based structure – The Business Units of a company are based around markets,
industries, or customers. Used mainly with companies targeting a specific market, with a
market-specific knowledge or product. From a Professional Services perspective, like with
a product-based structure, each market-based structure has its resources and functions.
Downside - Can lead to duplicated activities and internally incompatible solutions and
systems
• Geography-based structure – The Business Units of a company are based around
geographies. Specific regions, territories, and countries. Used by companies that operate
around customers in specific locations. From a Professional Services perspective, each
geography has its resources and functions that are used for deliveries and onsite support.
The proximity to the customers and the business has high value. Downside - creates a
potential duplication of resources with other geographies.
• Matrix structure – The employees of a company have dual reporting. One of them is a
functional direct reporting “solid line”, and a product-based “dotted line” indirect
reporting line. From a Professional Services perspective, it can provide flexibility, balanced
decision making, and ease of resources mobility from one project to another in case of
need. Downside - this structure is complex with solid and dotted reporting, which can
create confusion and authority issues.

25. How to Create A Customer
Service Organizational Structure?
• Choose an organizational structure type - Choosing an organizational structure
type for your customer service department or business can help you make other
decisions about the organizational structure later. The type of structure you choose
can affect how many leadership positions you need to fill, the chain of command,
and the communication expectations within the company.
• Identify roles - To better understand the job tasks and level of managerial
responsibilities each professional has, try to identify the roles within your
company. This includes considering each task that relates to the daily operations of
the company and assigning a job title to it. Identifying roles within your company
can help you better organize the hierarchy structure by studying how each position
might interact with others and sorting them by importance and rank.
• Form specialized teams - After identifying roles within your company, consider
how each role relates to forming specialized teams. For example, your company
might want to consider forming a team of professionals who handle customer
returns and support while another focuses on sales. Forming teams provides
professionals with additional support and helps foster an environment of
collaboration. Additionally, it better sorts professionals to fit into an organizational
structure.

26. How to create a customer service
organizational structure?
• Establish a hierarchy - Depending on the organizational structure you choose; the
hierarchy of your company may vary. Establishing a hierarchy informs professionals on
who to report to and helps management professionals better understand the scope of
their responsibilities. Hierarchies allow companies to run more smoothly and set a clear
path for professional development. Because organizational structures rely heavily on a
chain of command, establishing a hierarchy within your company is a very important step
in this process.
• Train the teams - To ensure efficient and effective teams, consider investing in training
programs that help professionals understand their roles within the organizational
structure. This may include team training as well as training for specific roles, such as
managerial positions. Training professionals will ensure that they can better complete
their job tasks and understand their responsibilities. Consider committing to regular
training sessions to prepare professionals for any changes that may occur in your daily
operations or company policies.
• Monitor performance – After your company establishes an organizational structure for
customer service, try to monitor employee and company performances. This includes
examining the extent that which the company and employees met their goals within a
specified time and monitoring employee and customer satisfaction. Consider keeping
detailed performance records and conducting surveys for both employees and customers.
This allows you to collect the opinions of staff and consumers to gain ideas on how to
better organize and operate the business.

27. Building an Effective
Management
This concern should give you some food for thought and also provide you with some
resources to work through in your quest to make your organization’s management even
better.
• Effective Management Helps in More Ways Than One
• A Complex Organizational Structure Shouldn’t Lead to Complex Management
• If You’re Not Focusing on Management Processes, You’re Doing It Wrong: PDCA Cycle
• 7 Levels of Delegation
• Tell – tell others what to do
• Sell – try to convince others what to do
• Consult – ask for input from others
• Agree – decide what to do together
• Advise – advise others on what to do
• Inquire – leave decisions to others but ask them to convince you that their
decisions are correct
• Delegate – fully leave the decision to others was originally published on
https://www.apriorit.com/
• How to Build Effective Management in Two Steps: Communication Management and
Expectation Management

28. Last But Important: A leader is
A Key
• Leaders need to make service excellence a top priority.
• They must support their teams in the delivery of top-notch
service throughout their organization.
• Building and sustaining a culture of service excellence
involves an amalgamation of many aspects of the
organization.
• It means recruiting right, having open and honest
conversations internally about service, having performance
measures, and holding each other accountable.
• This means that everyone must own and live the desired
organizational culture.

29. Great Service Leaders
• 3 Characteristics
• Keteladanan
• Kemampuan
(Kompetensi)
• Motivator

30. The Best Moral
Leaders
• involve people in the design of their
work
• Enhance pride in their work
• Enhance purpose, not just function
• Support ‘communities’
• Support involvement

31. Leader Creates Culture
• Saying the Right Things
• Function vs Purpose
• Doing the Right Things

32. Providing genuine service that
ANTICIPATES
customer’s needs

33. Learning and Giving for Better Indonesia
www.humanikaconsulting.com