Putting the Service-Profit Chain to Work (HBR OnPoint Enhanced Edition)
by James L. Heskett, Thomas O. Jones, Gary W. Loveman, W. Earl, Jr. Sasser, Leonard A. Schlesinger
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Book Summary Information
Author: Gary W. Loveman, James L. Heskett, Leonard A. Schlesinger, Thomas O. Jones, W. Earl, Jr. SasserEdition: Digital
Format: Download: PDF
Published: 2000-07-01
ISBN: N/A
Number of pages: 14
Publisher: Harvard Business Review
Summary of Putting the Service-Profit Chain to Work (HBR OnPoint Enhanced Edition)
In the new economics of service, frontline workers and customers need to be the center of management concern. Successful service managers heed the factors that drive profitability in this new service paradigm--investment in people, technology that supports frontline workers, revamped recruiting and training practices, and compensation linked to performance. The service-profit chain, developed from analyses of successful service organizations, establishes relationships between profitability, customer loyalty, and employee satisfaction, loyalty, and productivity. The authors provide a service-profit chain audit that helps companies determine what drives their profit and suggests actions that can lead to long-term profitability.This is an enhanced edition of HBR article 94204, originally published in March/April 1994. HBR OnPoint articles save you time by enhancing an original Harvard Business Review article with an overview that draws out the main points and an annotated bibliography that points you to related resources. This enables you to scan, absorb, and share the management insights with others. In the new economics of service, frontline workers and customers need to be the center of management concern. Successful service managers heed the factors that drive profitability in this new service paradigm--investment in people, technology that supports frontline workers, revamped recruiting and training practices, and compensation linked to performance. The service-profit chain, developed from analyses of successful service organizations, establishes relationships between profitability, customer loyalty, and employee satisfaction, loyalty, and productivity. The authors provide a service-profit chain audit that helps companies determine what drives their profit and suggests actions that can lead to long-term profitability.
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