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Initiative for Managing ServicesAnnual Performance Report

2005–2006

InItIatIve ManagIng ServIceS

Table of Contents

Message from the Director I �

IMS Mission I 2

Donor Summary I 3

Mission Update I 4

Planned Activities I �3

Academic Advisors/Staff I �7

for

Fisher College of Business

2006 Annual Report

InItIatIve ManagIng ServIceS

for

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Dr. Neeli BendapudiDirector, Initiative for Managing Services

Associate Professor of MarketingFisher College of Business

M E S S A G E F R O M T H E D I R E C T O R I �

vISIon

IMS began with a grand vision of impacting the teaching, research, and practice of business in a complex, interdependent, global services economy. The strides we have made in the past year give us cause for pride. The distance we have come only serves to underscore the marathon that is still ahead of us. The support of the IMS charter board members, the enthusiasm of our students, and the active participation of our world-class faculty give me confidence that we will make steady progress toward our common goal of service excellence.

Dean Joseph A. Alutto and Fisher College have made a commitment to invest in the study of services as an intellectual imperative and a competitive advantage. This has allowed us to recruit great faculty in the past year, and I look forward to working with them and showcasing them in IMS programs. IMS continues to be firmly rooted in an interdisciplinary focus, and we are fortunate that every event we put together features faculty and practitioners with different functional foci. I deeply appreciate all of our faculty who have unselfishly given their time to learn the challenges of service businesses and to help craft innovative solutions.

Our MBA and EMBA students have benefited enormously from the ability to interact with professors and practitioners in a variety of settings through the services curriculum. We hope to build the MBA mini-internship program further and to investigate other learning opportunities for our undergraduate students as well. IMS is delighted to be the founding sponsor of the first-ever services-related dissertation research proposal award in conjunction with the American Marketing Association’s Services Special Interest Group. This award, specifically designed to spark research in services, is open to PhD students in any business or allied discipline and is a vehicle to promote research in this area, as well as increase our visibility to young scholars contemplating careers in services research.

A sure sign that the marketplace is hungry for guidance on service issues is the fact that more and more companies and professional organizations are contacting us about becoming affiliated with IMS. The coming year will bring different tiers of membership for businesses, which will allow us to accommodate the demand for our programs and help us broaden our footprint in the national and international arenas. Stay tuned!

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Initiative for Managing Services Mission

Fisher College of Business at The Ohio State University launched the Initiative for Managing Services in spring 2004 in response to the growing dominance of services in the U.S. economy. The mission of IMS is to be an international leader in service research, education, and business application.

Collaboration With the Business Community

IMS partners with the business community by offering innovative, high-quality educational programs, customized research and presentations, as well as hosting top executive speakers from the service industry in the classroom.

Education

IMS prepares students to become leaders in the service economy by developing service management curriculum, by expanding the service content of current course offerings, and by orchestrating practical business experiences for students.

Research

As an interdisciplinary center, IMS cuts through the academic silos by supporting faculty and student research in different functional areas.

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Donor Summary

During 2005-2006, IMS maintained strong relationships with 10 major donor organizations, growing from eight committed organizations the previous year. Each organization has also agreed to commit key leadership time as a member of the IMS Advisory Board and to commit financially to IMS through 2008.

Donor Organizations

Alliance Data Systems

Cardinal Health

Convergys

Deloitte & Touche

Huntington

Limited Brands

Nationwide

OSU Medical Center

Porter Wright Morris & Arthur

Scotts LawnService

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IMS charter signing on November 3, 2005. From left, Buzz Trafford, Larry Hilsheimer, Jane Ashley, Jim Sullivan, Kathy Ricord, Bill Arthur, Kam Sigafoos, and Mike Goodrich. Seated, Dr. Neeli Bendapudi and Dean Joseph Alutto.

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MISSIon Update

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Collaboration with the Business Community

IMS partners with the business community by offering innovative, high-quality educational programs, customized research, and presentations, as well as hosting top executive speakers from the service industry in the classroom.

Programs

Offered twice a year, IMS programs bring the business community together with academic leaders in order to share best practices, network, and define future program topics.

PROGRAM 1—Service Brand Ambassadors:

Engaged Employees and Enthused Customers

November 3, 200�

Program Overview

This program provided participants with the opportunity to examine the topic of employee engagement. Academic and business practitioner perspectives provided by:

• Dr. Anthony Rucci, chief administrative officer, Cardinal Health, “Employee Engagement as a Leading Indicator of Customer Loyalty”

• Pete Geier, chief operating officer, and Sue Jablonski, chief communications officer, OSU Medical Center, “Learn. Share. Connect: An OSU Medical Center Employee Engagement Case Study”

• Dr. Neeli Bendapudi, associate professor of marketing, Fisher College of Business, “Best Practices in Employee Engagement”

• Fisher faculty from accounting, finance, and operations, “Current Research Topics in Service”• Dr. Len Schlesinger, vice chairman, Limited Brands, ”Breaking the Cycle of Failure in Services: A 2005 Update”• Dr. Neeli Bendapudi, associate professor of marketing, Fisher College of Business, “Creating Service Brand

Ambassadors: Engaged Employees and Enthused Customers”• Dr. Jeff Ford, associate professor of management and human resources, Fisher College of Business, and Dr. Laurie

Ford, owner, Critical Path Consultants, “Deadline Busting: How To Be a Star Performer in Your Organization”

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Len Schlesinger speaks to participants of the IMS Fall Program.

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Participating Organizations

Program participants included individuals from the following organizations:

Alliance Data Systems

Broad Street Financial

Cardinal Health

Columbus Chamber of Commerce

Crimson Cup

Critical Path

Deloitte & Touche

Ernst & Webb

Express

Fisher College of Business

Frame 3�0

The Garlikov Companies

Gerber Financial

Herman Miller

Huntington

Limited Brands

Nationwide

NetJets

Ohio Bureau of Workers’ Compensation

OSU Medical Center

Porter Wright Morris & Arthur

Realty One

Sable

Lion Ventures

Scotts LawnService

State Auto Insurance

Victoria’s Secret

Service Brand Ambassadors Evaluations

Thirty-four participants returned evaluations for

the program.

Overall Program Quality: 7.15

(Evaluation based on 8–point scale, 8 being excellent)

Program participants Jim Sullivan and Bonita Griffin listen to the speakers.

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PROGRAM TWO–Managing Expectations and Building Partnerships

April 4 and June 8, 200�

The topic of managing customer expectations is a key concern facing executives today. Handling

internal employee expectations is a huge challenge as well. Faculty provided frameworks and

best practices to help enhance organizational management of expectations, in order to improve

relationships and solidify partnerships—internally and externally.

Featured Speakers and Facilitators

Dr. David Greenberger, Chair, Department of Management and Human Resources

Dr. Robert Leone, Berry Chair of New Technologies in Marketing

Dr. Roy Lewicki, Dean’s Distinguished Teaching Professor of Management and Human Resources

Participating Organizations

Many corporate participants attended the program, including people from the following

organizations: Alliance Data Systems, Broad Street Financial, Challenger Gray & Christmas,

Deloitte & Touche, Fisher College of Business, Frame 3�0, Franklin County Educational Services

Center, Huntington, Interhack, Nationwide, Limited Brands, OSU Medical Center, Porter Wright

Morris & Arthur, and Scotts LawnService.

Dr. David Greenberger

Feedback

Evaluations of the program included the

following feedback:

Overall Program Quality: 3.68

(Evaluation based on 4–point scale, 4 being excellent)

Dr. Roy Lewicki

Dr. Robert Leone

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Collaboration with the Business Community

Detailed below are the executive speakers for classes that IMS hosted during FY ’0�:

Executive MBA

Services Marketing Course

Winter Quarter ’0�

Brian King, Marriott

Michael Gallagher, Esq., Gallagher and Dawsey Co., LPA

MBA

Services Marketing Course

Spring quarter ’0�

Jim Orr, chief executive officer, Convergys

Marty Schwalbe, chief strategy officer, Ten United

Greg Reid, senior vice president, chief marketing officer, Yellow Roadways

Gary Singer, chief strategy officer, Interbrand

Denis Blaskhov, financial advisor, Smith Barney-Citigroup Global Markets

Tim Collins, engagement director, George Group

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Education

IMS prepares students to become leaders in the service economy by developing service

management curriculum, by expanding the service content of current course offerings, and by

facilitating practical business experiences for students.

New Business-to-Business Course Offered

During FY ’0�, Mike Smith, director of customer leadership for Textron, worked with IMS Director

Neeli Bendapudi and IMS Graduate Administrative Assistant Wake Norris to develop a course in

business-to-business marketing, which was offered winter quarter 200�. Textron is a $�0 billion

company with brands such as Bell Helicopter, Cessna Aircraft, and E-Z Go golf cars.

Convergys Case Study

Rebecca Face, director of corporate college relations for Convergys, was interested in enhancing

the awareness of the Convergys brand on campus and decided it would be beneficial to have

undergraduate business students develop a marketing plan that can be used to attract top talent to

apply to Convergys. Using the Convergys case study that IMS developed, undergraduate honors

student teams in Professor Rao Unnava’s class came up with several innovative ideas: having a

business plan competition sponsored by Convergys, giving a binder to all juniors with information

on Convergys, having a team-building competition sponsored by Convergys, and working with

student organizations to attract top talent. The winning team’s idea was to use interns from the

summer to be representatives of the company throughout the following year.

The Convergys Team: Brian Potts, Brent McPherson, Ruchika, Beverly Rieckhoff, H. Gagnier, and Rebecca Face.

The Winning Student Team: Amy Porr, Laura Mauro, Kevin Black, Kelly Krugh, and Tyler Shepfer.

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IMS Mini-Internship Projects

As part of the continued mission of IMS to be a leader in services research, education, and

business application, IMS provided scholarships to a select group of �0 first-year MBA students.

The scholarship required each student to commit 40 hours during winter quarter 200� to a

project for one of the IMS donor organizations. The purpose of these projects was to enhance our

students’ understanding of business organizations and, as a practical matter, hone their project

management skills. The participating organizations had the opportunity to become acquainted

with some the brightest first-year candidates and to receive a fresh perspective on one of their

organization’s strategic concerns.

IMS Interns for FY ‘06

Marisa Althoff

J.P. Camardo

Abigail Glass

Christopher Glass

Derek Guenther

Katie Hedrick

Zach Inman

John Runkle

Nisha Vanvari

Erika Wenzke

Academic Advisors

Neeli Bendapudi

Larry Robinson

Tony Rucci

IMS interns and faculty advisors during a working lunch to prepare the students for the projects.

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IMS Joint Project with Franklin County Educational Services Center and Limited Brands

“Branding is a promise that is both functional and emotional. It is the art and science of creating

mind space and shelf space for a product or service,” stated Dr. Neeli Bendapudi, Fisher marketing

professor and director of the Initiative for Managing Service (IMS). Bendapudi spoke to school

administrators at “Communicating Organizational Message and Building Trust in a Changing

World,” a spring leadership conference sponsored by Limited Brands, the Franklin County

Educational Service Center, and IMS.

These words ignited new ideas in the minds of school administrators from nine area schools.

Districts in attendance at the day-long conference held in April 200� focused on brand awareness

and the creation of brand identity.

Brands are common to our everyday lives, influencing our decisions about the type of detergent

we choose and the brand of toothpaste we buy; however, many school administrators have not

connected the concept of branding to the services they provide and the resulting image they portray

to their “customers”—students, constituents, and community. Given this, a group of �0 Fisher MBA

students, aided by Limited Brand executives, walked school administrators through a Limited Brands

concept map exercise to assist them in making these connections.

Another touchstone of the day was the emphasis on delivering a consistent brand message in both

actions and words. This topic was reinforced through Limited Brands’ Vice Chairman and COO Dr.

Len Schlesinger’s discussion of the Shouldice Hospital case. Customers want to believe in and trust

the consistent performance of the product or service they choose to use, so every action should

reinforce this consistent brand message.

In the educational context, customers need to feel that all aspects of the educational process, from

school bus drivers, to the quality and cleanliness of facilities, to the actions of educators and ad-

ministrators, are in alignment with the same brand message. Dr. Bendapudi reinforced this point at

the conclusion of her presentation by saying that everything can be in perfect position to support a

district’s desired brand image, but if the school clock shows the wrong time, this could alter the quality

and integrity of the message delivered.

Student contributors

Robert Balchick

James Colacarro

Jennifer Foust

Mine Gusching

Michele Higgins

Kathyrn Milette

Ashley Schaeffer

Laura Scott

Sankalp Shah

Nisha Vanvari

MBA student James Colacarro walks several local school administrators through the brand map exercise, as Ed Gadyos of Limited Brands observes.

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Research

IMS research covers the spectrum from customer service, to value-added services for products,

to pure services. This important research has been published in top-tier journals and covered in

major media outlets from CNN, CNBC, and FOX to the New York Times and the National Institutes

of Health.

New Research Publications

Neeli M. Bendapudi, Leonard L. Berry, Keith A. Frey, Janet Turner Parish, and William L. Rayburn,

“Patients’ Perspectives on Ideal Physician Behaviors,” Mayo Clinic Proceedings; March 200�, p338.

Neeli Bendapudi’s research on The Living Brand (with Venkat Bendapudi published in Harvard

Business Review, 200�) continues to generate interest with a recent New York Times column

featuring it in July 200� and a CNBC interview in August 200�.

Interdisciplinary Academic Task Force Formed

During FY ’0�, IMS gained cooperation from several key Fisher faculty members to create

an Academic Task Force. This interdisciplinary group will partner with IMS to bring potential

research ideas to the IMS Corporate Advisory Board. Faculty members from each department will

collaborate on this task force, including faculty from Accounting and MIS, Finance, Management

Sciences, Management and Human Resources, and Marketing and Logistics.

New Service-Focused Faculty Members

IMS would like to welcome two new Fisher faculty members whose teaching and research is

focused on services:

• Stephanie Wilk, associate professor of management and human resources

• Shashi Matta, assistant professor of marketing

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FY ’07 Collaboration with the Business Community

Programs

IMS is hosting its third annual fall program in Pfahl Hall on October 30 and 3�, 200�.

IMS will assist in the development of the Cullman Symposium, which will be held May 23 and 24,

2007. The topic will be leveraging dashboard measures to lead the mission of the organization.

Newsletter and Website

IMS will upgrade the IMS newsletter and website for IMS donors and contacts each quarter. The IMS

website can be found at fisher.osu.edu/ims.

Winter Quarter Mini-Internship/Scholarship

IMS is again offering scholarships for first-year MBA and MLHR students interested in studying

services. This scholarship requires the student to commit four hours per week during winter quarter

2007 to a project for an IMS donor organization. The purpose is to enhance the students’ knowledge

and understanding of business organizations, as well as their project management skills. The

participating organizations will have the opportunity to become acquainted with some of Fisher’s

best students and will also receive a fresh perspective on one of their organization’s strategic

concerns. The project topic and scope will be predetermined and communicated with the students

during fall quarter 200�. Dr. Neeli Bendapudi and other faculty will serve as academic advisors for

the projects. The students will be required to prepare a summary report and presentation of the

project.

Faculty Feedback

IMS will continue to offer faculty support and feedback on company strategic direction and projects.

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FY ’07 Education Ashland GAA

IMS will support a GAA with funds from the Ashland Curriculum Development Fund. This GAA

will assist in developing speaker lists that IMS would support in visiting any MBA class, as well as

researching cases that could be offered for faculty to use in class. IMS will begin developing an

additional service-focused course for release in FY ’08.

Case Studies

IMS will work during FY ’07 to develop a case study for utilization in the Fisher classrooms as well

as future IMS programs.

Interdisciplinary Business Track in Services Management

An Interdisciplinary Business Track with a focus on Services Management was implemented into

the MBA curriculum starting in autumn 200�. In order to complete the Services Management Track,

a student must complete four designated courses, including a minimum of two from the following:

M&L 843, MHR 8�4.�4, MGT 830. The student must also select two additional courses focused on

services. Some options include MGT 8��, MGT 8�4, MHR 802 and M&L 84�.

IMS will work on developing the undergraduate Services Management Track in FY ’07, as well as

fine-tuning the MBA Services Management Track.

IMS GAAs

At least one GAA will be hired out of the IMS funds. This GAA will help with day-to-day operations

of IMS including web content and layout, executive speaker coordination, and program

management.

Undergraduate Service Marketing

Course Offered

Under the guidance of Dr. Neeli

Bendapudi, an undergraduate services

marketing course will be offered in winter

quarter 2007.

Executive Speakers

IMS will continue to assist professors and

instructors in hosting executive speakers

in the classroom to speak about the

service industry or service issues.

If your company is interested in getting

involved, please contact Lisa Faiello at

(��4) 2�2-��8� or faiello_�@cob.osu.edu.

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FY ’07 Research

AMA’s Services Special Interest Group-Dissertation Research Proposal Award

During Fiscal Year 2007, IMS will sponsor the first-ever international services-related dissertation research proposal award in conjunction with the American Marketing Association’s Services Special Interest Group. This award, specifically designed to spark research in services, is open to PhD students in any business or allied discipline and is a vehicle to promote research in this area, as well as increase our visibility to young scholars contemplating careers in services research.

Small Grant Funding for Service Research

During the 2006-2007 academic year, IMS will offer small research grants of up to $2,500 to a maximum of three PhD students from Fisher College. These small grants are available to support service research-related needs and activities. This research can be on a particular service industry or service issue.

Faculty Research

IMS will continue to offer faculty research support in the manner of off-duty summer support or possibly course buyout.

Research Requests

IMS will be offering copies of working papers, reprints of publications, and filling several secondary

data search requests per quarter.

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Academic Advisory Board Members

In addition to corporate advisory board members, IMS is supported by academic advisory

board members, including:

Dr. Neeli Bendapudi, associate professor of marketing

Dr. David Greenberger, chair of the Department of Management and Human Resources

Dr. Anthony Rucci, senior lecturer of the Department of Management and Human Resources

FY ’07 IMS Staff

Associate Director

Mindy Stobart

Program Assistant

Lisa Faiello

Graduate Administrative Assistants

Betsy Grimes

Katie Hedrick

Lisa Faiello

Dr. Anthony Rucci

Mindy Stobart

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