1. Understanding Quality / Strategic Quality Planning
- Professor Rhys Rowland-Jones

2. Designing Quality Services
Chapter 8
Designing
Quality Services

3. Copyright © 2017 Pearson Education, Ltd.
Chapter Objectives
Discuss how services are categorized and what implications those categorizations have for quality.
Discuss the dimensions of service quality to better define customer needs.
Perform SERVQUAL analysis, including two-dimensional differencing.
Perform services blueprinting.
Brainstorm ways to failsafe service processes.
Define a services benefits package for a firm.
Perform service transaction analysis.

4. Differences between Services and Manufacturing
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Differences between Services and Manufacturing
Many service attributes are intangible.
The outputs of services are heterogeneous.
Production and consumption of services often occurs simultaneously.
Customers are more involved in the production of services.
Customers are often coproducers in services.
Service times vary widely due to varying demands.
Service customers can exert control over the service provider and achieve customization.
In Chapter 1, we talked about the multidimensional nature of quality. If quality is multidimensional for manufactured products, it will be more so for services. Understanding some of the differences between manufacturing and services helps to design useful approaches to quality improvement in services. Using a contingency perspective, we understand that the nature of services causes us to approach service quality improvement from a different direction than manufacturing.
First, many service attributes are intangible, which means that they cannot be inventoried or carried in stock over long periods of time. However, all services have some tangible aspects as well.
The outputs of services are also heterogeneous, which means that for many companies, no two services are exactly the same.
3) A third factor is that production and consumption of services often occur simultaneously. If you hire someone to mow your grass, you’ll receive the service exactly at the same time it is produced.
4) Customers tend to be more involved in the production of services than they are in production of goods. For instance, you probably have never seen anything you own during its manufacturing stage. In fact, many of the products you own were manufactured overseas. However, you probably are actively involved in the production of services you receive.
5) In many restaurants, it is not uncommon for the customers to fill their own drinks. This is called customer coproduction. Because customers are actively involved in producing the services they consume, they create problems for service providers.
6) The varying demands of customers also contribute to process variability that makes quality production of services difficult. Therefore, even though customers are the reason for the existence of services firms, they also make providing good service difficult.
7) The good news for customers is that by being actively involved in the production of the service, they can exert control over the service provider and achieve customization. This control can be manifested in a variety of different ways. For instance, if you have never visited the producer of a food product you purchase, you may not be aware of many issues concerning the products, such as sanitation or environmental pollution. However, you are not likely to remain a customer of a restaurant that is unclean or creating environmental problems. As a result of this greater customer control, service facilities, processes, and interactions must be designed in a way that promotes a positive encounter with the customer.

5. Differences between Services and Manufacturing
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Differences between Services and Manufacturing
External services
Internal services
Voluntary services
Involuntary services
An aspect of services that affects the definition of quality is whether a service is internal or external.
External services are those whose customers pay the bills.
Internal services are in-house services such as data processing, printing, and mail. Typically, these services are separate from the external customer. However, customer service to internal customers is very important to internal service because their services often can be outsourced.
Voluntary services are services that we actively seek out and employ of our own accord. Generally, we research a voluntary service, such as a gas station, a restaurant, or a hotel, and have certain expectations when we engage its services.
The quintessential example of an involuntary service is a prison. Other involuntary services include hospitals, the IRS, the police department, the fire department, and other services that you do not choose.
Certainly, our perceptions and expectations of service quality can be affected by whether the service is voluntary or involuntary.

6. Differences between Services and Manufacturing
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Differences between Services and Manufacturing
How are service quality issues different from manufacturing?
It can be difficult to obtain hard data.
You have to do it right the first time because you cannot inspect and rework defects.
There is significantly more variability due to customization.
Service design differs.
Warranty and repair processes are not as important.
Liability centers around safety concerns (malpractice).
How are service quality issues similar to manufacturing?
The customer is the core of the business.
Customer needs provide the major input to change.
Because services’ attributes can be intangible, it is sometimes difficult to obtain hard data relating to services. In manufacturing, dimensions such as height, weight, and width are available for measurement. Conformance to these measurements implies a certain dimension of quality. However, in services, such measurable dimensions are often unavailable.
Simultaneous production and consumption of services means that you have to do it right the first time. You can’t easily inspect and rework defects in a hair salon the way you can in manufacturing.
Customer contact leads to an increase in variability in the process. This leads to a high degree of customization in services as well as great variability in the time required to perform services.
Services design is also very different from design in manufacturing.
Because services involve intangibles, warranty or repair processes are not as important as recovery or reimbursement processes (see A Closer Look at Quality 8-1). Also, the design of the services must take into account such variables as customer moods and feelings because these affect customer perceptions of service quality.
Product liability issues in services are very different from manufacturing. Whereas manufacturing liability issues center around safety concerns, in services liability, issues often relate to malpractice, which refers to the professionalism of the service provider and whether reasonable measures were taken to ensure the customer’s well-being.
For both manufacturing and service firms, the customer is the core of the business, and customer needs provide the major input to design. By focusing on the customer, many manufacturers and services firms have come to view themselves as service providers. Companies from Harley-Davidson to Hewlett Packard have spent extraordinary amounts of time designing services for their customers.

7. What Do Service Customers Want?
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What Do Service Customers Want?
Key aspects of a leader in services:
Service vision
High standards
In-the-field leadership style
First, a leader has a service vision. Such leaders really view service quality as the force underlying profitability and business success. When selecting strategies for improvement, leaders see quality as the winning strategy. Such a vision can be translated into action and excitement for others in the company. To win in services, a firm must develop a passion for service quality within the entire workforce.
Services leaders have high standards. In services, you will notice that some firms are better equipped and maintained than others. Sometimes this is evident in the small details. Some doctors’ offices have a better selection of magazines than others; some restaurants are more comfortable than competitors’ restaurants; some grocers have a better selection of products. They are the result of a leader with high standards and a focus on details.
Outstanding services leaders have an in-the-field style of leadership. Because there is so much contact with the customer in a service system, the field is where the action is.

8. SERVQUAL Advantages of SERVQUAL instrument:
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SERVQUAL
Advantages of SERVQUAL instrument:
It is accepted as a standard for assessing different dimensions of services quality.
It has been shown to be valid for a number of service situations.
It has been demonstrated to be reliable, meaning that different readers interpret the questions similarly.
Each instrument is parsimonious in that it has only 22 items. This means that it can be filled out quickly by customers and employees.
Finally, it has a standardized analysis procedure to aid both interpretation and results.
An important tool developed by Parasuraman, Zeithamel, and Berry for assessing services quality is SERVQUAL. The SERVQUAL survey has been used by many firms and is an off-the-shelf approach that can be used in many services situations.

9. SERVQUAL SERVQUAL survey: Customer expectations Customer perceptions
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SERVQUAL
SERVQUAL survey:
Customer expectations
22 items
Customer perceptions
The SERVQUAL survey has two parts: customer expectations and customer perceptions.
Figure 8-1 in the chapter shows the 22 survey items for expectations. The wording of the statements in the expectations survey relates to a generic firm in an industry that interests you. For example, if you were assessing customer service for a given grocery store, you might first administer the expectations survey to customers concerning a grocery store in general. Later, the perceptions survey might be administered to the customers of the particular grocery store.
The SERVQUAL perceptions survey shown in Figure 8-2 is administered to customers in the same way that the expectations survey was administered. Notice that the perceptions survey also contains 22 items that are matched with the same 5 service quality dimensions as the expectations survey (listed in Table 8-2).
Table 8-2

10. SERVQUAL Gap analysis:
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SERVQUAL
Gap analysis:
Because services are often intangible, gaps in communication and understanding between employees and customers have a serious negative effect on the perceptions of services quality.
The key to closing gap 5 is to first close gaps 1 through 4 through system design, communication, and workforce training.
The SERVQUAL instrument is useful for performing what is called gap analysis. The model in Figure 8-3 shows the gaps that commonly occur and can affect the perceptions of services quality.
Each of the gaps in the model demonstrates differences in perceptions that can have a detrimental effect on quality perceptions in services. The SERVQUAL survey instrument can be administered in a variety of ways that examine each of these gaps. For example, SERVQUAL can be used to explore differences in perceptions between customers, between managers, between managers and customers, and between employees.
Figure 8-3

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SERVQUAL
Gap 1:
It shows that there can be a difference between actual customer expectations and management’s ideas or perceptions of customer expectations.
Gap 1 shows that there can be a difference between actual customer expectations and management’s ideas or perceptions of customer expectations. As a customer, have you ever wanted to tell a service provider, “I don’t want you to do that; I want you to do something else?” It is very difficult for managers or employees to break out of the internal, process-oriented view of the business. Many times, improving processes does not equal improving customer service. To truly improve customer service, we must understand what the customer wants. The SERVQUAL instrument can be used to help in this understanding.
Figure 8-3

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SERVQUAL
Gap 2:
Managers’ expectations of service quality may not match service quality specifications.
Managers’ expectations of service quality may not match service quality specifications. This mismatch is demonstrated in gap 2. Once managers truly understand what the customer wants, a system can be developed to help provide exactly what the customer wants. Because firms do not specify customer requirements according to a well-defined process, there is often no way to know whether customer specifications and management expectations are aligned.
Figure 8-3

13. Copyright © 2017 Pearson Education, Ltd.
SERVQUAL
Gap 3:
After services specifications have been established, the delivery of perfect services quality is still not guaranteed.
After services specifications have been established, the delivery of perfect services quality is still not guaranteed. Inadequate training, communication, and preparation of employees who interact with the customer, referred to as contact personnel, can lower the quality of service delivered. This mismatch is gap 3.
Figure 8-3

14. Copyright © 2017 Pearson Education, Ltd.
SERVQUAL
Gap 4:
There may be differences between services delivery and external communications with the customer.
Gap 4 shows the differences between services delivery and external communications with the customer. Companies influence customer expectations of services through word of mouth and through other media such as advertising. As a result, there could be a difference between what customers hear you say you are going to deliver as a service provider and what you actually deliver. Have you ever heard someone say, “They promised me one thing and gave me another?” This gap can lead to seriously negative customer perceptions of service quality.
Figure 8-3

15. Copyright © 2017 Pearson Education, Ltd.
SERVQUAL
Gap 5:
There may be differences between perceived and expected services.
Gap 5 is the difference between perceived and expected services, which we considered briefly when we introduced the SERVQUAL instrument. Think of the first time you dealt with your university admissions office or financial aid office. In many universities and colleges, these offices are well run and provide great service. However, in other colleges, their service is not so good. The difference between your expectations and your perceptions is directly related to your perception of service quality.
Figure 8-3

16. Assessing Differences in Expectations by Using the Differencing Technique
Steps:
Administer the expectations and perceptions SERVQUAL instruments to your customers.
Typically need a sample size of between
Compute a difference score for SERVQUAL by separating the dimensions as follows (see table).
For each respondent, sum the SERVQUAL scores for each set of items relating to a given dimension.
Sum across the n respondents and divide by the total n.
Example 8-1 is an excellent example of how this can be used in a hospital.

17. Two-Dimensional Differencing
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Two-Dimensional Differencing
The two-dimensional differencing technique is very useful for evaluating SERVQUAL responses if there is enough variation in the responses given to different dimensions.
The two-dimensional differencing technique allows the firm to determine which services it should emphasize to improve customer perceptions and those that make little difference.
Note that this technique is also used for specific questionnaires relating to specific services offered by companies. For example, St. John’s Hospital administers surveys to patients asking about several specific services such as food, laundry, nursing, and many other services. The two-dimensional differencing technique allows the hospital to determine which services it should emphasize to improve customer perceptions and those that make little difference.

18. Example 6-2 Using data from Example 8.1:
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Example 6-2
Using data from Example 8.1:
The vertical axis reflects the expectations score.
The horizontal axis relates to the perceptions score.
The value 4 (the neutral response) is used as the origin.
Using the information from Example 8.1, it is fairly simple to develop a two-dimensional services plane.
The hospital analyst learns that emphasis is needed in the areas of reliability and empathy because these are areas for which expectations are high and perceptions are relatively low.
Figure 8-4

19. Designing and Improving the Services Transaction
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Designing and Improving the Services Transaction
Services blueprinting
Moments-of-truth concept
Poka-yoke
So far in this chapter, we have discussed customer perceptions of quality. One of the ways to improve customers’ perceptions of quality is to improve the process of delivery of the service. Just as teams can succeed in manufacturing, teams in services can develop ways to improve processes and customer satisfaction.
Other concepts and tools include services blueprinting, the moments-of-truth concept, and the Japanese method known as poka-yoke. Each of these is discussed in the following slides.

20. Services Blueprinting
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Services Blueprinting
Four steps to developing a services blueprint:
Identify processes.
Isolate fail points.
Establish a time frame.
Analyze profits.
A services blueprint is a flowchart that isolates potential fail points in a process. She recommends that blueprints be kept on every process in a service and that a “keeper of the blueprint” make the blueprints available for others in the firm. If possible, the blueprint also should be available on a computer network for all to view.
There are four steps to developing a services blueprint:
Identify processes. In this step, processes are flowcharted so that the bounds of the process are identified. Figure 8-5 shows a simple process used by Shostack to demonstrate services blueprinting, in this case for a hair salon’s processes.
Isolate fail points. Notice in Figure 8-5 that the hair coloring stage is a possible fail point. What can happen here? The wrong color could be applied, and the hair style will be ruined. This would be a very expensive mistake.
Establish a time frame. In a hair salon operation, time is a major determinant of profitability. As a result, those steps that waste time result in lost income. The analyst observing this process should establish a standard time for each step in the process.
Analyze profits. The customer spends about two hours in the process. As errors occur in the process, the salon owner becomes liable, and other business is lost.

21. Services Blueprinting in a Hair Salon
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Services Blueprinting in a Hair Salon
Notice also that Figure 8-5 includes a line of visibility. The activities below the line of visibility are not seen by the customer, but they influence performance. This is true in many organizations. The area above the line of visibility is often referred to as the front office, and the area below the line of visibility is referred to as the back office.
Many times process improvements focus on back-office activities, whereas front-office activities that involve high customer interaction are ignored. Services process blueprinting places the focus on front-office activities.
To understand how you could apply services blueprinting, think about a restaurant. Typically, when you first enter a restaurant, you expect to be greeted at the door. Can you remember a time when you weren’t? This has happened to all of us at some point. A restaurant can install sensors or provide backups for the greeter so that this breakdown never occurs. Services blueprinting is a tool to help with brainstorming activities that lead to customer service improvement.
Figure 8-5

22. Touchpoints / Moments of Truth
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Touchpoints / Moments of Truth
Fail points in the services blueprints or the times at which the customer expects something to happen
The fail points in the services blueprints are often referred to as moments of truth. These are the times at which the customer expects something to happen. Remember the SERVQUAL items? Expectations are a major determinant of customer perceptions of service quality. Therefore, when the customer expects something to happen, it has to happen. It is that simple! Some companies list these moments of truth and define fail-safes and procedures to see that they result in satisfied customers.
Customers’ contact with the business can occur in many different ways—face to face, over the Internet, by phone, through a machine such as an ATM, or through the mail. All these moments of truth result in either happy customers or lost customers. Moments of truth also can happen at various stages of the product life cycle, such as when the product is being used, when customer service queries arise, when the product needs repair, and when it is eventually disposed of.

23. Poka-yoke A fail-safing device
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Poka-yoke
A fail-safing device
Classifications for fail-safing devices in services:
Warning methods
Physical contact methods
Visual contact methods
Fail-safe methods can also be defined by the “three Ts”
Dr. Richard Chase and Dr. John Grout have been influential in promoting the use of poka-yokes (fail-safes) in services. The idea behind fail-safing is to ensure that certain errors will never occur. Just as many processes seem to be designed to fail, they also can be designed not to fail. In services, Chase defines different classifications for fail-safe devices.

24. The Three “Ts” of Poka-yokes
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The Three “Ts” of Poka-yokes
Tasks to be performed
Treatment provided to customer
Tangibles provided to customer
These poka-yoke classifications and T’s occur in many different forms. Some examples include beepers in ATM machines that warn you to remove your card, toilets and sinks that
automatically flush and shut off, the mechanism that stops you from inserting a USB drive upside-down in a computer, surgical trays that have indentations for different instruments, needle removers that prevent accidental needle pokes, requirements that bank tellers enter a customer’s eye color before beginning a transaction so that identity is confirmed, or a file cabinet that locks the other drawers when any one drawer is opened so the cabinet doesn’t fall over.
Poka-yokes such as these represent a good amount of creativity and are very often used by Japanese and American companies to help ensure quality service. In a nutshell, you should isolate fail points in a process and then fail-safe the process to make sure that errors don’t occur.
Figure 8-6

25. The Customer Benefits Package
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The Customer Benefits Package
Consists of both tangibles that define the service and intangibles that make up the service:
Tangibles = goods-content
Intangibles = service-content
Just as many organizations have employee benefits packages, services firms can develop customer benefits packages (CBPs). A customer benefits package consists of both tangibles that define the service and intangibles that make up the service. The tangibles are known as goods-content. Intangibles are referred to as service-content. The only difference between an employee benefits package and a services benefits package is the ultimate recipient of the benefits package.

26. The Customer Benefits Package
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The Customer Benefits Package
Four stages of the service benefit package design process:
Idea/concept generation
The definition of a services package
Process definition and selection
Facilities requirement definition
CBPs are important not only in that they help define what it is that your service firm will provide to the customer, but also in helping to define what will not be provided to the customer. More and more, firms are focusing on better defining the niches that they serve. As a result, the question of what they will not provide to the customer is often as important as what they will provide.
By helping to answer this question, CBPs provide a foundation for developing a service strategy. The four stages of the service benefit package design process are shown here in Figure 8-7.
Figure 8-7

27. Objectives of the Customer Benefits Package
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Objectives of the Customer Benefits Package
Make sure the final CBP attributes you are using are the correct ones.
Evaluate the relative importance of each attribute in the customer’s mind.
Evaluate each attribute in terms of process and service encounter capability.
Figure out how best to segment the market and position CBPs in each market.
As defined by David Collier, a professor at Florida Gulf Coast University, the objectives of customer benefits package design are listed on this and the following slide...

28. Objectives of the Customer Benefits Package (cont’d)
Avoid CBP duplication and proliferation.
Bring each CBP and associated process and service encounters to market as quickly as possible. Use the CBP framework and final attributes to design facilities, processes, equipment, jobs, and service encounters.
Maximize customer satisfaction and profits.
Collier, D., The Service/Quality Solution (Milwaukee, WI: Irwin/ASQC, 1994).

29. Services Process Structure
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Services Process Structure
The CBP is defined largely by the degree of freedom allowed by the firm in the customization of the services package. Deborah Kellogg and Winter Nie provided a services process/services package matrix. As shown in Figure 8-8, firms will offer unique services packages, selective services packages, restricted services packages, or generic services packages. Generic services packages are of the one-size-fits-all variety. Unique services packages are especially tailored for each customer. Your firm’s capability to custom-tailor a benefits package depends on the amount of flexibility you have as a service provider. Strategic issues such as organizational flexibility, top-management skill, employee motivation, training, hiring practices, culture of the service customer, nature of the service, and technological choice affect your ability to provide unique services packages.
Table 8-3 in your chapter shows a customer benefits package from the Slide-Master firm. Notice that Slide-Master has taken great care in defining tangibles and intangibles for its CBP. Slide-Master evaluates its CBP performance using monthly surveys of employees and customers.
Based on D. Kellogg and W. Nie, “A Framework for Strategic Service Management,” Journal of Operations Management 13, 4 (1995): 323–327.
Figure 8-8

30. Service Transaction Analysis (STA)
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Service Transaction Analysis (STA)
A service improvement technique that allows managers to analyze their service processes at a very detailed level
Involves identifying transactions and evaluating them from the customer’s perspective to determine whether there is a gap between service design and what the customer perceives as the service
Because we have discussed the design of services processes and improving services processes, we can now present service transaction analysis (STA). This is a service improvement technique that allows managers to analyze their service processes at a very detailed level. As we stated, Crosby views service encounters as a series of transactions (or moments of truth). STA is a method for identifying these transactions and evaluating them from the customer’s perspective to determine whether there is a gap between service design and what the customer perceives as the service.

31. Service Transaction Analysis Sheet
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Service Transaction Analysis Sheet
A tool used in STA
Mystery shoppers or independent consultant-customers walk through the process and then rate each transaction
Figure 8-9 shows a service transaction analysis sheet. The rationales for these scores are entered into the right side of the sheet, and an overall evaluation is provided in the bottom of the sheet. Using these sheets, service designers, managers, and staff can attempt to understand why the customer did not like certain aspects of the service and use this as an input into improving the process.
Figure 8-9

32. Improving Customer Service in Government
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Improving Customer Service in Government
There is some evidence of improvement in several aspects of government:
Military adoption of statistical quality techniques
Government’s development of a searchable list of 4,000 customer service standards for 570 federal departments and agencies
As of 2011, thirty-two states have established quality award programs and many state agencies have adopted quality techniques.
If customer service is the battlefield for business in the twenty-first century, then government is probably the last frontier.
There are some evidences of improvement in several aspects of government.

33. Why the Government is Adopting Quality Techniques
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Why the Government is Adopting Quality Techniques
People want and desire to do good quality work.
Because quality management is associated with improved employee satisfaction, there is a major impetus to improve.
Government leaders are mandating standards, strategic plans, and new levels of performance at all levels of government. These standards are being adopted in government agencies because of the mandates.
Demand for government services is growing at a faster rate than funding for them. The natural reaction is to simplify processes that have become bloated.
Finally, the threat of privatization in government has led to an improvement in service in many areas.
Overall, government is lagging behind the private sector in quality adoption. Although the results are mixed, it is clear that private-sector quality management practices are being adopted in government. Why is this progress occurring? Many used to question whether the government had the inclination to adopt quality techniques, given the lack of profit motive. However, several factors seem to be driving this change, as seen here.

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Quality in Health Care
Several factors have contributed to the attention given to quality within health care:
Health care is facing the same “cost squeeze” that government is facing.
In the USA for example, the Affordable Care Act has mandated improvements to the delivery of health care - coupled with more regulations.
A move toward health maintenance organizations (HMOs) is causing hospitals to streamline operations.
There is increasing diversity in health care.
Another area of services that is receiving much attention is health care. In some cases, insurers such as Blue Cross are encouraging the use of quality management approaches. Health care workers are becoming increasingly knowledgeable about quality management practices and concepts. In fact, the very nature of health care requires careful and well-planned procedures. Many health care customers, however, are uncomfortable with these changes to government and health care. If quality approaches are applied, it is probably best that efforts not focus entirely on efficiency. Reliability and empathy are dimensions that can only be good for health care.

35. Supply Chain Quality in Services
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Supply Chain Quality in Services
Bidirectional Services Supply Chain
S. E. Sampson, “A Customer-Supplier Paradigm for Service Science,” in (refereed) Proceedings of the DSI Services Science Miniconference, Pittsburgh, PA, May 2007.Copyright © 2007 by Scott E. Sampson. Reprinted by permission.
As we have talked about before, one of the major differences between services and manufacturing is the involvement of the customer in the process.
As shown in Figure 8-10, service supply chains are bi-directional. This means that service customers actually provide inputs to the supply chain. Many times, these inputs can be information, or in some cases, labor—as in the case of a self-service gas station. Therefore, effective communication is necessary between customers and suppliers to prevent inadequate fulfillment of customer expectations. The concept of garbage in, garbage out implies that the quality of a service supply chain will be limited by the quality of the supplied inputs. Even if customers provide poor inputs (inaccurate information), they may still expect accurate outputs. This expectation has implications for service design.
In an integrated supply chain, the service provider still has greater responsibility for verifying customer inputs to ensure that they are accurate. In some cases, the service provider may be able to initiate communication of customer-input delivery expectations, such as through reservation systems. This may be complicated by the fact that service delivery systems are often inherently just-in-time. Of course, in services, there are other suppliers besides the customers. They are often managed in a more traditional supply-chain manner. However, the customer-supplier linkage makes services unique.
Figure 8-10

36. The Balanced Scorecard
(c) Rhys Rowland-Jones / Balanced Score Cards
WCTQ 2001/PGDQM
The Balanced Scorecard
Complements financial measures of past performance with measures of the drivers of future performance
Objectives and measures are derived from the organisation’s vision and strategy
Views from four perspectives provide a framework for the balanced scorecard
Provides balance between external measures (e.g. operating income) and internal measures (e.g. new product development)
Results in the development of key success factors for the four perspectives

37. The Balanced Scorecard
(c) Rhys Rowland-Jones / Balanced Score Cards
WCTQ 2001/PGDQM
The Balanced Scorecard
It is not
A ‘balance’ in the traditional accounting sense of a balance sheet
It will not give a quantitative indicator ‘score’ at the end
It is
A live document ( as FMEA)

38. The Four Perspectives The Financial Perspective
(c) Rhys Rowland-Jones / Balanced Score Cards
WCTQ 2001/PGDQM
The Four Perspectives
The Financial Perspective
The Customer Perspective
The Internal Business Process
Learning and Growth

39. The Balanced Scorecard Perspectives – Vision and Strategy
WCTQ 2001/PGDQM
(c) Rhys Rowland-Jones / Balanced Score Cards
The Balanced Scorecard Perspectives – Vision and Strategy
Source: Kaplan and Norton 1996
Financial
Customer
VISION and STRATEGY
Internal Business
Process
Learning and Growth

40. The Financial Perspective
(c) Rhys Rowland-Jones / Balanced Score Cards
WCTQ 2001/PGDQM
The Financial Perspective
To succeed financially how should we appear to our shareholders
Objectives
Measures
Targets
Initiatives

41. The Customer Perspective
(c) Rhys Rowland-Jones / Balanced Score Cards
WCTQ 2001/PGDQM
The Customer Perspective
To achieve our vision how should we appear to our customers ?
Objectives
Measures
Targets
Initiatives

42. The Internal Business Process
(c) Rhys Rowland-Jones / Balanced Score Cards
WCTQ 2001/PGDQM
The Internal Business Process
To satisfy our shareholders and customers, what business processes must we excel at ?
Objectives
Measures
Targets
Initiatives

43. (c) Rhys Rowland-Jones / Balanced Score Cards
WCTQ 2001/PGDQM
Learning and Growth
To achieve our vision, how will we sustain our ability to change and improve ?
Objectives
Measures
Targets
Initiatives