A Complete and Balanced Service Scorecard: Creating Value Through Sustained Performance Improvement

Book Description

In the U.S., service related activities have become dominant aspects of the economy and currently account for well over 50% of our GNP. The authors' framework eliminates outdated, low-value techniques originally created for manufacturing firms, replacing them with advanced techniques that fully leverage your investments in technology. Tyagi and Gupta begin by explaining why conventional balanced scorecard approaches don't work well for service organizations, discussing issues ranging from the inherent variability of customers, servers, and processes, the crucial importance of engagement, and the unique challenges of service innovation. Next, they introduce a Service Scorecard framework that encompasses the seven key elements of service organization success: Growth, Leadership, Acceleration, Collaboration, Innovation, Execution, and Retention. You'll learn how to set clear performance targets at the function and business level; benchmark performance against best practices; identify improvement opportunities; and capture performance data that offers a leading indicator for financials. Their proven approach is designed for easy understanding and implementation without the need for expensive consultants. Simply put, it offers today's most direct path to measuring performance and optimizing business value in any service organization.

Table of Contents

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

Product Information

  • Title: A Complete and Balanced Service Scorecard: Creating Value Through Sustained Performance Improvement
  • Author(s): Praveen Gupta, Rajesh K. Tyagi
  • Release date: July 2008
  • Publisher(s): PH Professional Business
  • ISBN: 9780131359437