Serviced-Based Performance Management
The Balanced Scorecard is skewed towards MFG orgs but can be used for Service orgs. Fitzgerald and Moon others have developed more service focussed measures
Difficulties of measuing services
- Service is person driven and can vary widely depnding on the person
- Consumtption of Production and Service is inseparable (Railway journey)
- Most services are intangible and perishable - making measurement difficult
Three solutions
- Meaure satisfaction of service - complaint letters
- Measure during the service - Mystery shopper
- make Tangibles surrogates for intangibles - Wiating envireonment as well as waiting times
6 Dimensions of service performance
RESULTS..........................................................................................Disneyland
- Competitiveness - mkt share, sales growth.......................................mkt share - theme parks, revenue growth
- Financial performance - Profitability.................................................Profitability of the theme parks and operating divisions
DETERMINANTS / DRIVERS Quality of service - Reliability, Courtesy, Cleanliness...........................of the staff, restaurants, litter Flexibility - Volume, speed, specification.............................................coping with peak times, seasons Resource Utilization - Productivity Efficiency........................................Keeping rides going, little down time Innovation - of process.....................................................................New attractions
Must be
- Top Down
- Aligned with strategy and other operations
Issues
- Does it necessarily result in operating success - Too many variables. Some are too big to overcome Oil price at a courtese airline
- Too successful - spare capacity - lay-offs
- Reduces rework and expediting
- Choice of the right dimensioins must be used to develop standards and must be linkes to rewards, recognition and feedback
