One important driver of performance improvement in the service business is the degree in which service business are able to standardise their service delivery organisation. In our 2008 research named “The future of Service Management” (www.thefutureofservice.com) we saw that companies that were able to demonstrate both strong revenue growth and year on year improvements in profit margins were able to deliver high value added services through standardised processes. The less profitable service businesses typically see the complexity of their operations increase exponentially when growth takes of. The intangible nature of the service business with a strong dependency on the performance of individuals makes it one of the most challenging types of businesss to manage.
Just like in a factory profitability of a service business depends strongly on the degree of standardisation. Service delivery can be highly standardised and therefore benefit from economies of scale. However, customers expect service offering to be adapted to their specific needs and expect a personal treatment. So how can standardisation be implemented in a service business? It will not be either standardization or personalization it will be both that is required at the same time. First we will explore the standardisation issue, secondly personalisation, and we will explain how both can be done at the same time. We named it “Standardised Personalisation”.
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