Where does the customer fit in a service operation?

Abstract

While management skills can improve service systems, a manager is better off if he or she first has a clear understanding of the operating characteristics that set one service system apart from another. This author offers one view of services, which, if followed, results in a "rational approach to the rationalization" of services. His view, quite simply, is that the less direct contact the customer has with the service system, the greater the potential of the system to operate at peak efficiency. And, conversely, where the direct customer contact is high, the less the potential that exists to achieve high levels of efficiency. This distinction between high- and low-contact systems provides a basis for classifying service production systems that can enable the manager to develop a more effective service operation.