A typology of de‐coupling strategies in mixed services

Abstract

Abstract A typology of a class of service systems is proposed. The typology links strategic operational objectives to the decision to de‐couple work between the front and back offices of a service system. Four specific ideal types of a strategy/de‐coupling mix are described; each of which has distinct operational, marketing and human resource ramifications. A type that has had significant representation in traditional literature is the “Cost Leader” type, where back‐office activities are de‐coupled from the front office for the purpose of lowering costs. Another traditional type representative of the craftsman legacy is the “Personal Service” type, which retains back‐office tasks in the front office to pursue non‐cost‐oriented strategic goals. Theoretical and empirical evidence is also given for two non‐traditional types: the “Kiosk” type, where all tasks remain in the front office to achieve lower costs, and the “Focused Professional” type, which de‐couples front‐ and back‐office activities to enable front‐office workers to provide higher service, rather than to reduce costs. Empirically, retail bank lending systems are analyzed to support the typology.