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01. SERVICE QUALITY, PRODUCTIVITY, & PROFITABILITY

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02. PRODUCTIVITY
03. SERVICE LEADERSHIP
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Service Quality, Productivity, and Profitability

The relationship between profitability, productivity, and

service quality is direct and simple.

The relationship between productivity and service quality is

complex.

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Measuring Service Quality

SOFT STANDARDS

Based on nonquantifiable process

Not easily observed

Feedback, perspectives, and perception of customers

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Measuring Service Quality

HARD STANDARDS

Collected based on outcomes

Can be calculated, timed, or computed

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ASSURANCE

Ability to communicate guaranteed quality service

EMPATHY
Ability to be compassionate to the clients

RELIABILITY

Consistency and dependability of service

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Responsiveness

Ability to react to customers’ needs

Tangibility

Provide the appropriate physical facilities

Performance Appraisal. Compare the performance to previous
accomplishments or competitors.

Customer-focused Organization. Understand the needs and wants of

clients.

Customer-driven Growth. Improve the service and develop products.

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THE FISHBONE DIAGRAM:

Determines the root cause of the problem;

Uses cause and effect analysis; and

Identifies and lists down reasons.

PARETO ANALYSIS:

Identifies the reasons;

Differentiates the major issues from the minor; and

Prioritizes issues to be addressed.

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BLUEPRINTING:

Shows the stages of service delivery; and

Detects where the problem occurred.

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 Productivity

Quantity of goods, products, and services produced from the amount of

materials, resources, and assets used.

It is a measure of output based on the

amount of inputs used

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 Productivity

In the service industry, an improvement of productivity is difficult to

measure since the output cannot be easily quantified.

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 Productivity

Efficiency is a measure of how well things are done based on a given standard
in a specific time or period.

Effectiveness is the degree to which an organization meets its objectives

and desired outcomes.

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• Utilize technology, innovations, data analytics.
• Train, equip, and motivate employees.
• Deploy workers capable of multitasking.
• Maintain a lean and mean workforce.
• Operationalize self-service technologies (SSTs).

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• Redesign customer service.

• Control and minimize costs at different levels.

• Outsource nonessential tasks.

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• Total Quality Management (TQM) assists organizations related to:
- service excellence;
- productivity; and
- process improvements.

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• ISO 9000 Certification – assessment and certification of a firm’s quality management system.
• Six Sigma – deals with firms that have high-volume processes
– reduces defects and improves productivity.
• The Malcolm Baldrige National Quality Award (MBNQA)
– promotes best practices in quality management
– recognizes quality achievements

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Firms should consider the following:
– sustain the level of performance to maintain customer loyalty
and profitability;
– performance defines its competitiveness and its existence; and
– excellence in operation to have an advantage over the others.

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4th Class Firms - Subservient Firms
• Exist under minimum compliance
• Avail of its services if there is no alternative.
• Focused on minimizing cost
• Insensitive to customers’ needs and wants PAGE: 23
3rd Class Firms - Traditional Firms
• Adhere to the standardized form.
• Productivity is to follow the procedures.
• Keep costs below budget.
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2nd Class Firms - Maven Firms
• Display no nonsense professionalism.
• Recognize the importance of customers’ roles.
• Balance between productivity and service quality
• Continuous innovation and improvement PAGE: 25
1st Class Firms - Innovator Firms
• Innovativeness and excellence
• Seamless service
• Continuous innovation, improvement, experimentation, and consultation
• Collaborate with customers PAGE: 26
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 LEADER:

C I N CO, H A N N A B L A I R B .

MEMBERS:

ARTUGUE,BERYL
B U Q U E , R U B LY N
D A L I S AY, S A M A N T H A
EBON, JERICHO
F R O N D OZ O, K Y R E L L
PA L I N A R , K Y L A
R I V E R O, J H O N M I C H A E L
GLAIZA ANNE
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