The natural concept of chains is that they are as strong as their links. Hence to make a chain strong, the links must be made strong. The service-profit chain is based on this concept. A theory evolved by a group of researchers from Harvard University in the nineties, it dissects the levers that translate good service into profitability. These levers are represented by links in an eight-link chain as depicted below. The service Profit Chain The service-profit chain works this […]
Category Archives: Work culture
Mar
11
Jun
7
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Service as competitive advantage
Increasing competition, declining sales and more service-aware customers are putting pressure on organizations to rethink and improve the levels of service that they offer. Hence, many organizations are recognizing that by improving the service provided, they can make significant and sustainable gains in the marketplace. Service and service delivery can be, and increasingly are, a competitive weapon. As highlighted in our previous write-up, “Understanding the service concept”, the effect of good service on creating valuable customers, increasing customer retention and […]
Apr
5
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Career advancement: The inadequacy of hard skills
To get and keep a job, you typically need hard skills. For example, Dentists need to know how to fill cavities, Computer Programmers need to be able to write functional codes, and Accountants need to be certified. However, beyond the hard skills, which dentist do you go to? The one who is pleasant and takes time to answer your questions; or the one who treats you like a number in a long line of numbered mouths? Which programmer do you retain when the […]
May
27
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Understanding the 10 Customer Types, and Creating Allies
The nature of the customer significantly influences the type of service provided – how customers are treated by staff and their potential impact on other customers. Thus, operations managers and their staff need to develop an understanding of the nature of individual customers and their resultant behavior. Based on behavior and attitude, customers can be categorized as follows: 1. Allies: These valued customers usually arrive in a positive frame of mind, willing to help and give positive feedback to facilitate […]
Jan
23
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The business case for skills development
Ask employers what their biggest challenge in running and growing their business is, most will tell you it is the inability to find the right employees. The reason for this is not difficult to figure out looking at our low quality education and a value system that supports sub-optimal work culture. Small- and medium-sized businesses are the most affected because they lack the brand and sometimes the resources to attract the few skilled and ‘already-made’ employees that are available. So […]
