Service Operations
Day 19 (Nov 28, 2012)
Improving Service Quality and Productivity
Integrating Service Quality and Productivity Strategies
“Not everything that counts can be counted, and not everything that can be counted, counts”- Albert Einstein
“Our mission remains inviolable. Offer the customer the best service we can provide, cut our costs to the bones; and generate a surplus to continue the unending process of renewal.” – Joseph Pillay, Former Chairman, Singapore Airlines
During the 1980s and early 1990s, improving quality became a priority as compared to productivity earlier on. In a service context, this strategy entails creating better service processes and outcomes to improve customer satisfaction However, since the beginning of the 21st century there was a growing emphasis on linking these two strategies in order to create better value for both customers and the firm.
The task of value management requires quality improvement programs to deliver and continuously enhance the benefits desired by customers. At the same time, productivity improvement efforts must seek to reduce the associated costs. The challenge is to ensure that these two programs are mutually reinforcing in achieving common goals, rather than operating at loggerheads with each other in pursuit of conflicting goals.
Integrating Service Quality and Productivity Strategies – Quality and Productivity improvement Strategies must be considered jointly rather in isolation.
Improving productivity is important to marketers for several reasons. First, it helps to keep costs down. Lower costs either mean higher profits or the ability to hold down prices. The company with the lowest costs in an industry has the option to position itself as the low-price leader—usually a significant advantage among price-sensitive market segments. Second, firms with lower costs also generate higher margins, giving them the option of spending of spending more than the competition in marketing activities, improved
Improving Service Quality and Productivity
Integrating Service Quality and Productivity Strategies
“Not everything that counts can be counted, and not everything that can be counted, counts”- Albert Einstein
“Our mission remains inviolable. Offer the customer the best service we can provide, cut our costs to the bones; and generate a surplus to continue the unending process of renewal.” – Joseph Pillay, Former Chairman, Singapore Airlines
During the 1980s and early 1990s, improving quality became a priority as compared to productivity earlier on. In a service context, this strategy entails creating better service processes and outcomes to improve customer satisfaction However, since the beginning of the 21st century there was a growing emphasis on linking these two strategies in order to create better value for both customers and the firm.
The task of value management requires quality improvement programs to deliver and continuously enhance the benefits desired by customers. At the same time, productivity improvement efforts must seek to reduce the associated costs. The challenge is to ensure that these two programs are mutually reinforcing in achieving common goals, rather than operating at loggerheads with each other in pursuit of conflicting goals.
Integrating Service Quality and Productivity Strategies – Quality and Productivity improvement Strategies must be considered jointly rather in isolation.
Improving productivity is important to marketers for several reasons. First, it helps to keep costs down. Lower costs either mean higher profits or the ability to hold down prices. The company with the lowest costs in an industry has the option to position itself as the low-price leader—usually a significant advantage among price-sensitive market segments. Second, firms with lower costs also generate higher margins, giving them the option of spending of spending more than the competition in marketing activities, improved