Very interesting. So, factions of the company hire their own payroll person or even department. Although a service provider can be an organizational sub-unit, it is usually a third party or outsourced supplier, including telecommunications service providers (TSPs), application service providers (ASPs), storage service providers (SSPs), and internet service providers (ISPs). During the interactive exercises in the Internal Customer Service Seminar presented by Donna Earl, many expensive lapses in the company’s internal customer service came to light. Because they are lean and mean (and maybe mad), the services that they always provided to the company start to get harder to accomplish. July 17, 2015 Less obvious but certainly still significant, stakeholders and shareholders are also internal customers. When the company is starting out, employees are simply paid by the president or another random person working in the company. Have you outsourced yourselves through customer self service? Internal Service Providers operate exclusively within their internal market space, which may be an internal Business Unit (BU), and they are more common than generally believed. Copyright © 2004 Donna Earl. Of course this person doesn’t do everything but they start taking on the roles that the official department should be doing, but isn’t being very effective at. But then people start questioning what they do, versus what this new person is doing and why are they even needed? Copyright © 2020 Donna Earl. This story is played out over-and-over again with every type of service in companies. The problem is, these employees are now part of the payroll department and service everyone under the same flawed systems that was causing the problem in the first place. Internal Service Providers (ISPs) are such types of service providers who are dedicated and sometimes integrated within an individual business unit (BU). But what does that mean? Some organizations implement Service Level Agreements (SLAs) defining what internal customers can expect from internal service providers. There is a specific situation that plays itself out over-and-over again with these internal organizations. Sometimes the reps needed clarification from an engineer to process a customer order for the correct part. It is also a possibility that the business units themselves could also be a part of a larger enterprise or parent organization. Empower your employees. Are you already challenged by someone else doing part of your work? To save money, the payroll executive decides to quietly outsource their whole department, saving a job for themselves to “oversee” the activity. The company (internal customers) starts to get frustrated with the poor service. The Customer Service reps were responsible for problem solving and taking orders for highly technical, often customized parts. Normally cuts come from the services that support the company–places like HR. If competition uses an External Service Provider, using the same model diminishes any advantages they might gain by doing so, but the main advantage would be in asset and risk ownership, which is now in the hands of the service provider. Notify me of follow-up comments by email. Internal service providers are university business units that provide goods and services to other university units and departments. At first, the original payroll department doesn’t have a problem with this…good for them. Imagine the frustration that is setting in. The focus on developing effective internal customer service helps organizations cut costs, increase productivity, improve interdepartmental communication and cooperation, boost employee morale, align goals, harmonize processes and procedures, replace interdepartmental competition with interdepartmental cooperation and deliver better service to the external customer. The SPLA supports a variety of hosting scenarios to help you provide highly customized and robust solutions to a wide set of customers. Type II – Shared Service Unit : Type II is an internal service provider that provides shared IT services to more than one business unit. Over time an HR department is stood up with several related functions, payroll just being one of them. Essentially they start outsourcing what they do to the customer. Engineers viewed information requests from Customer Service reps as low priority, uninteresting, and annoying. The customer advocate for a large manufacturing company was concerned about the organization’s reputation for excellent products, but terrible customer service. In this course, you'll learn about types of internal customers and how to identify internal customer relationships. 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