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I. Understanding Service Performance
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I. Understanding Service Performance
by Praveen Gupta, Rajesh K. Tyagi
A Complete and Balanced Service Scorecard: Creating Value Through Sustained Performance Improvement
Copyright
Dedication
Acknowledgments
About the Authors
Foreword by Paul Harmon
Foreword by Dean Spitzer, Ph.D.
Introduction
I. Understanding Service Performance
1. Performance Management and Scorecards
Service Industry Components
Business Performance Measurement Challenges in the Service Industry
The Balanced Scorecard
Business Performance Evolution
Service Scorecard
Establishing the Service Scorecard Measurements
Take Away
2. Performance Challenges in the Service Sector
Examples and Drawbacks of Performance Measurement Systems
Performance Measurement for Service
Process View and Experience View of Services
Strategic View of Services
Performance Measurement Challenges in Services
Major Challenges
Customer-Introduced Variability
Service Inventory and Service Delivery Systems
Service Guarantee and Service Recovery Challenge
Case Studies of Performance Measurement in the Service Sector
Take Away
3. Six Sigma for Services
Six Sigma and Service
Six Sigma Methodology Overview
Define and Develop
Measure
Analyze and Innovate
Embed
Design for Six Sigma for Services (DFSS)
Define and Measure
Analyze
Design and Optimize
Axiom-Based Service Design Model
Using Axioms for Designing Services
Implementing Six Sigma in Service Organizations
Six Sigma Enhancements
Take Away
4. Performance Management for Services
Performance Management Challenges in Services
Comparative Analysis of Performance Measurement Systems
Balanced Scorecard
The Performance Prism
Six Sigma Business Scorecard
Scorecards Versus Quality Programs
EFQM Model
Malcolm Baldrige Award
Capability Maturity Models
Other Models
Performance Management Development
Take Away
II. Learning Service Scorecard
5. Understanding the Service Scorecard
Elements of Service-Based Businesses
Rationale for Service Scorecard
Benefits and Challenges of the Service Scorecard
Results of Using the Service Scorecard
Design of the Service Scorecard
The GLACIER
Growth
Leadership
Acceleration
Collaboration
Innovation
Execution
Retention
Service Performance Index, SPIn
Take Away
6. Designing a Service Scorecard
An Empirical Investigation of the Measurements Alignment Process
Balance between Innovation and Continuous Improvement
Analyzing the Requirements of Performance Measurement Systems
Performance Measurement Systems for Services
ServQual Framework
Service Chain Framework
Service Model
Other Service Models
Elements of the Service Scorecard
Take Away
7. Leadership and Acceleration
Leadership
Transformational and Transactional Leadership
Leadership Measurements
Implementing Leadership Measurements
Acceleration
Measurements of Acceleration
Implementing the Acceleration Measure
Take Away
8. Collaboration
Drivers of Collaboration
Measures of Collaboration
Collaboration and the Service Scorecard
Steps to a Successful Partnership
Cases
A Call Center
Starbucks
Knowledge Process Outsourcing
Take Away
9. Innovation and Execution
Employee Engagement and Innovation
Employee-Driven Innovation
Accenture Human Capital Development Framework
Human Economic Value Added Model
Return on Investment Model
Innovation Measures
IBM
Verizon
Execution
Implementing Execution Measures
Service Blueprinting
Service Recovery
Little’s Law
Six Sigma for Services
Outsourcing as a Business Strategy
Execution in Service Scorecard
Ritz-Carlton Hotel
Call Center
Banks and Insurance
IKEA
Take Away
Five Steps of Six Sigma for Services Methodology
10. Retention and Growth
Customer Solutions and Customer Retention
Retention Measures
Customer Satisfaction
Net Promoters Index
Customer Equity and Lifetime Value Models
Implementing Retention Measures
Wachovia Corporation
Sprint
British Airways
Growth
Idea Management for Service Innovation
Implementing Growth in Service Scorecard
Progressive
American Airlines
Take Away
III. Practicing Service Scorecard
11. Implementation of the Service Scorecard
Approach to Implementing the Service Scorecard
Committing to the Fundamental Business Strategy of Sustained Profitable Growth
4P Model of Process Management for Services
Executive Understanding of the Service Scorecard and its Elements
Leadership Endorsement of the Service Scorecard
Strategic and Organizational Alignment
Planning for the Service Scorecard
Prepare for Implementing the Service Scorecard
Determine the Service Scorecard Measurements
Address Information Issues
Establish Goals for Each Measurement
Leverage Technology
Train for Using the Service Scorecard
Validate and Adjust the Measurements
Institutionalize the Service Scorecard
Renew and Reignite the Organization
Take Away
12. Integration of Service Scorecard and Improvement Initiatives
Performance Initiatives
ISO 9001—Quality Management System
The 4P Model for Process Excellence
Lean for Streamlining Processes
Six Sigma for Perfecting Processes
Service Innovation for New Solutions
Utilizing Service Scorecard to Synergize Improvement Initiatives
Take Away
13. Service Scorecard Validation
Six Sigma Business Scorecard Experience
Research Roundtable on Service Measurement (Boston)
Validation of Individual Service Scorecard Elements
Leadership and Firm Performance
Acceleration and Execution Impact on Firm Performance
Collaboration and Firm Performance
Innovation and Firm Performance
Customer Retention and Firm Performance
Growth and Firm Performance
Validation of Similar Methodologies and Frameworks
Malcolm Baldrige National Quality Award Framework Validation
ACSI and Firm Performance
Service Profit Chain and Firm Performance
ServQual and Firm Performance
Balanced Scorecard and Firm Performance
EFQM and Firm Performance
CMMI and Firm Performance
Validation of the Service Scorecard
Agenda for the Validation of the Integrated Service Scorecard Framework
Take Away
14. Best Practices
Growth
International Business Machines (IBM)
eBay
Leadership
Q Interactive
Southwest Airlines
Acceleration
Infosys Technologies
American Express
Collaboration
Microsoft
Wal-Mart
Innovation
Starbucks
Federal Express (FedEx)
Execution
Walt Disney
Singapore Airlines
Retention
Nordstrom
Ritz-Carlton
Take Away
Final Thoughts
Bibliography
Financial Times Press
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Introduction
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1. Performance Management and Scorecards
Part I. Understanding Service Performance
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