Service Management: An Integrated Approach to Supply Chain Management and Operations

13. Service Productivity and Measurement of Performance

13.1. Introduction

The single greatest challenge facing managers in the developed countries of the world is to raise the productivity of knowledge and service workers. This challenge, which will dominate the management agenda for the next several decades, will ultimately determine the competitive performance of companies. Even more important, it will determine the very fabric of society and the quality of life in every industrialized nation.¹

These were the words that began a Harvard Business Review article by the management philosopher the late Peter F. Drucker. Some researchers and management practitioners may not agree with Professor Drucker on the extent of the impact of service productivity ...