Gauging performance in the service industry

Abstract

Purpose Traditional performance measurement models and frameworks fail to take into account the intricacies and specificity of service businesses. The important characteristics of services, role of employees and partners, important of measures and concurrent production and delivery need to be incorporated into the framework. This paper seeks to address these issues. Design/methodology/approach The research followed a case‐based methodology using semi‐structured interviews. Literature review and case‐based methodology led to the conception of initial deployment framework. Findings Existing scorecards do not emphasize the deployment aspects of the scorecard and overlook trade‐offs and benchmarking decisions. Practical implications The scorecard provides guidance for successful deployment. The framework incorporates the importance of service innovation and role of employees and partners into the scorecard. Relative decision trade off and benchmarking are an integral part of the deployment process. Originality/value The two founding blocks of the scorecard are value maximization theory proposition and Six Sigma methodology. The service scorecard supports stakeholders that drive business performance thus ensuring accountability, innovation and collaboration. The scorecard offers a set of measures that builds upon existing measures.