Service Management - Assignment Example

Service Management According to this article, the main factor that drives profitability and growth in any service business is the presence of customers who are highly satisfied. As such, all aspects of the business that deal with customer satisfaction must be managed efficiently; this is known as a service-profit chain. The first way that the service-profit chain works is by enhancing the internal service quality (Heskett, Jones, Loveman, Sasser & Schlesinger, 163). This involves training sessions and processes that are aimed at equipping the employees within the company with the power and skills to serve customers.

Such procedures are directly related to employee satisfaction and lead to an increase in the same.High levels of employee satisfaction lead to employee loyalty, and this raises the productivity of individual employees. This is directly reflected on the service that is given to the customers. Customers benefit from a higher external service value and this increases their level of satisfaction. When clients are happy with the quality of services they receive from a company, there is a consequent increase in their loyalty to that company and the services it offers.

According to research by Heskett et al (167), an increase in the loyalty of customers by 5% can increase the profit of the company by between 25% and 85%.Maintain the service-profit chain is, therefore, important for any company that expects to have an increase in its profits. These links should be strengthened so that everything within the company operates smoothly and without any disruptions. All this should be reinforced by the management of the particular organization to ensure that all workers contribute towards the same goal.

Based on this, successful CEOs are not those who locked themselves in their offices and came up with management strategies. Managers of successful companies are those who spend time with employees and customers and in the process listen to their employees and customers for suggestions on improvements in their organizations’ modus operandi.Works CitedHeskett, James, Earl Sasser, Thomas Jones, Gary Loveman, and Leonard Schlesinger. "Putting the Service Profit Chain to Work." The Ownership Quotient (1994): 163-75. Print.