The Service-Process Matrix

CUSTOMIZATION AND CUSTOMER INVOLVEMENT CAPITAL INTENSITY LOW HIGH MANAGEMENT CHALLENGES

HIGH PROFESSIONAL SERVICE SERVICE SHOP

Fighting cost increases, maintaining quality, reacting to customer interventions in process, managing employee advancement, managing flat hierarchy with loose subordinate-superior relationships, binding employees to firm

LOW

MASS SERVICE

SERVICE FACTORY

Marketing, making service warm, attention to physical surroundings, managing rigid hierarchy with need for standard operating procedures

MANAGEMENT CHALLENGES

Hiring, training, methods development and control, employee welfare, scheduling workforces, start-up of new units

Capital decisions, technological advances, scheduling delivery of service, leveling demand