1 Links Service Management SimulationProfessor Anders Gustafsson Poja Shams Jörg Pareigis “The course was the best I have attended at the university of Karlstad. I’m still using the skills that I developed during the simulation . With skills I mean for instance: group work, discussions in groups, analysing (financial) reports/data, being critical in making decisions and explaining why decisions are made.” – Links Student Spring 2011 “Very demanding but best course at KAU for sure! Don't change anything!” - Links Student Fall 2011 “I can say that this course is the best course that I have ever study in my life. I'm proud to study this course this course can let student to have experience of business. Everything in this course is good. I like this course even it is difficult.” - Links Student Fall 2010
2 Why Links? "I hear and I forget; I see and I remember;I do and I understand.” – Confucius Adults learn best by doing…not listening, seeing or reading Non-destructive Low risk (except to one’s “ego”) Time-compressed Controllable environmental conditions Debriefing possible Feedback-laden learning
3 Learning Objectives Primary Purposes:To develop participants’ ability to Apply strategies Address marketing challenges Identify decision problems Determine alternatives Define crucial issues Analyze Make decisions Plan the implementation of these decisions
4 Learning Objectives Secondary Purposes:To provide a learning experience similar to a “real world” context -- with opportunities to develop management skills, such as priority setting, people skills, time management skills, and oral and written presentation skills. To provide variety and challenge during the class sessions -- with feedback automatically built into the experience.
5 LINKS INPUTS (decision variables)Links Process LINKS OUTPUTS Firm-Wide Operational Efficiency Revenues Forecasting Accuracy Profits CSR Turnover Market Share CSR Cost Per call ROA Fill Rate (Unfilled orders) ROI Employee Retention CSR Usage Service-Specific Revenues Margin Profits Volume Market Share Product Quality (Design) Perception Service Quality (Operations) Perception Accessibility Perception Customer Satisfaction Employee Satisfaction LINKS INPUTS (decision variables) Product/Service Design Service Operations / Experience Price Marketing Program Forecasting Information Technology Research Studies How Do The Inputs Drive Outputs? Specific Examples of Linkages?
6 Links Iterative Cycle (1) Analysis: Analyze financial, operating, and market performance. Iteration for next Quarter (2) Planning: Based on analyses and working with your team, make new decisions. (3) Implementation: Submit decisions; simulation runs; results distributed. (4) Evaluation: Compare plan to results. How did you do? Needed corrective action?
7 Setup of Links There 1 industry with 4 firms competing against each other. 3-4 students per firm. Firms start in (roughly) identical positions. Teams enter their quarterly decisions through the Web. Teams can download their results after the submission deadline. You will be automatically advised via when your results are available. Teams have access to reports that gives comparative performance data, market research and operating efficiency measures (KPIs).
8 Links Interface First you will recive an email with a passwordThis password is used to log into the simulation interface on the web (several computers can look at the same time but only one user can make changes at a time) When you enter the page you will see the following:
9 Logistics of DecisionsAll LINKS decisions are permanent “standing orders,” until they are changed. For example, if your team makes the decision to hire in a given period, that decision continues unless your team explicitly makes the decision to stop hiring. The exceptions are the research studies, which must be re-ordered each time. Your team will have to deal with the consequences of data entry problems. There is no mechanism to correct data entry problems after a game run!
10 Getting started and to-do-listBrief your group members on the resources and experience that you bring to the team. Discuss goals, performance expectations, and personal learning objectives (why are you here?). How can the group support each individual’s learning objectives? Must-Do Issues: Review initial financial/operating reports. Evaluate KPIs (e.g., CSR Utilization, Unfilled orders) Firm name Sales volume forecasts On-Going Issues: Decision variable changes? How will this affect your forecast? What research studies are needed? How can firm performance be improved? Stabilize your CSR situation with right amount of utilization When you are forecasting it is not enough to just state that you have furcated based on last quarters forecast. You have to create a furcating strategy based on the changes that you make in the simulation. When you forecast that your sales will increase you need to reflect this decision in your CSR resources. If you expect that you will increase sales than you should have resources to cover the increase in sales. If you are going to make any changes to service price, design or information technology you need to do the homework to see that your decisions will be accepted in the marketplace.
11 Getting started Track service / region sales. Assess CSR Utilization.Review financial and operating performance. Strengths? Weaknesses? Develop a list of issues, prioritize them, and work your issue-list from the top. Don’t divide responsibilities initially. You’re getting to know the industry and your teammates. Within two rounds, delegate specific responsibilities.
12 Read and Reread the Manual!Important Your CEO(coach) is meant to be helpful to you … but you are ultimately responsible … for everything. Read and Reread the Manual!
13 Grading Grade Total points Pass with distinction 80 - 100 Pass 60 - 79Grading Elements Grading Basis Grading Weight Links Performance Team-Based 10% Multiple Choice Quiz on Links Manual Individual Midterm & SWOT Presentation Links PM 30% Final Report & Presentation 40% Grade Total points Pass with distinction Pass Fail
14 Links Performance 10% Team based: The within team performanceIndustry based: The Between team performance Game based: Team performance compared to historical team data
15 Multiple Choice Quiz on Links Manual 10%To examine the individual knowledge of the course participants a multiple choice quiz will be handed out to the students The best way of scoring high on this part of the course is to study the links manual Read the manual!
16 Midterm & SWOT Presentation 10%The midterm will include a SWOT-analysis and an oral presentation of the SWOT-analysis 10 minute presentation followed by 5 minutes of Q&A Written part of the SWOT-analysis will be turned in as a part PM-5 No more than 1000 words in addition to you 1000 word of the PM-5 To get any knowledge about the external analysis you need to order reserach rapports.
17 CEO meetings and PM presentation 30%The grade is based on how well you can motivate your decisions and how well you understand the market. Each PM should be no longer than 1000 words Some questions to answer for memo: Presentation of results from previous quarter. Discuss and analyze the consequences of your former decisions, both in the short run and in the long run. What are the largest problems that your firm faces? What’s been your best and worst team decision to date? Who is the best performing competitor in your industry? Why? To customers, what differential advantage does your firm offer compared to competitors? How is your firm currently organized (e.g., by function, by region, as a committee of the whole)? Is this organization “best” for the current problems/challenges faced by your firm? What actions will you take for the coming quarter? What methods have you used to analyze the market?
18 Hints (-; A recommendation is to write memos (why are we doing this?) for all your decisions before you input them into the simulation. This will help you for your PM and your final rapport. It is important to read the literature assignments for each week. Even though, you don’t need to refer to the literature in all the PM, you will need it for PM6, PM7 & final rapport.
19 Final Report & Presentation 40%2 part assignment Written report Oral Presentation The written report is a market plan that will be based on quarter 12 to15 Think of the report and the presentation as a way of informing your successor
20 Time Sequence Week 1 Week Week 4 January 21st to 25th Day MondayTuesday Wednesday Thursday Friday Lecture Literature Introduction/Links basic introduction/ Access and Login information/Links team formation/Collection of addresses (Anders Gustafsson & Poja Shams) Assignment Read Links manual/Review of reports from first quarters of simulation Read Links manual Links Activity Start the industry 4th quarter input end at 22:00 (16:00-US EST) Test Quarter Links Switches Marketing decisions = on/Service design=on Meeting with CEO Meeting 1 (Compulsory)
21 Week 5 January 28th to February 1stTime Sequence Week 2 Week Week 5 January 28th to February 1st Day Monday Tuesday Wednesday Thursday Friday Lecture Assignment Read Links manual PM 1- Presentation of overall strategy for your company. Results of quarter 1,2,3 and actions taken for quarter 4. Links Activity Restart the industry 4th quarter input end at 22:00 (16:00-US EST) Links Switches Marketing decisions = off/Service design=off Meeting with CEO Meeting 2(Compulsory)
22 Time Sequence Week 3 Week Week 6 February 4th to 8th Day MondayTuesday Wednesday Thursday Friday Lecture Links lecture on research reports (Jörg Pareigis) Assignment Lovelock & Wirtz Chapter 4-5 PM 2- Results of quarter 4 and actions taken for quarter 5. Links Activity 5th quarter input end at 22:00(16:00-US EST) Links Switches Marketing decisions = on/Service design=on Meeting with CEO Meeting 3 (Compulsory)
23 Time Sequence Week 4 Week Week 7 February 11th to 15th Day MondayTuesday Wednesday Thursday Friday Lecture Quiz on Links user manual (Poja Shams) Assignment Lovelock & Wirtz Chapter 6-7 PM 3- Results of quarter 5 and actions taken for quarter 6. Links Activity 6th quarter input end at 22:00(16:00-US EST) Links Switches Meeting with CEO Meeting 4 (Optional)
24 Important informationDon’t do too many changes at the same time in the simulation Get a name for your firm Read the manual It is important that you can collaborate with your team members, otherwise your lack of effort will be reflected in your grade! Keep a diary of all the actions taken. This will simplify your work when you write PM and also for your final rapport. Write an individual diary on what you do in the firm. This is needed to assess your participation in the simulation and your firm. You are required to attach this as an appendix to the final report in order to get a grade!!!
25 Read the user manual Do a diary! Don't forget to:90% of you questions will be answered by the links manual Do a diary!
26 Links Service Management SimulationProfessor Anders Gustafsson Poja Shams Jörg Pareigis