1. 1 Service Profit Chain Ch. 7 Building a Cycle of Capability I.Key Source of Service Employee Dissatisfaction II. Service Employee Capability is Made Up of 1. Latitude to Meet Customer Needs 2. Clear Expression of Limits 3. Excellent Training 4. Well-engineered Support Systems 5. Recognition and Reward + Selection!

2. 2 Service Profit Chain Ch. 7 Building a Cycle of Capability III. Selection Criteria: 1. Attitude First, Skills Second ex) Selection by “Life Themes” (p. 117) 2. Self-selection instead of selection by others - A Theoretical Foundation 3. Involving Customers in the selection IV. Select Customers to Serve! V. Training as both Means and Ends

3. 3 Service Profit Chain Ch. 7 Building a Cycle of Capability VI. Providing Latitude and Limits - Traditional Approach: Negative Approach - The Nontraditional Approach: Positive Approach VII. Investing in Support Systems * Latitude to Fire Customers VIII. Providing Consistent Reward and Recognition ex) Outback Steakhouse IX. Fitting the Elements Together (p. 128)

4. Figure 7-3: The Cycle of Capability Careful Employee And Customer Selection High-quality Training Well-designed Support System Greater Latitude To meet Customers’ Needs Clear Limits on the Expectations of employees Reward and Recognition Satisfied Employees Employee Referrals of Job Candidates

5. 5 Service Profit Chain Ch. 8 Developing Processes That Deliver Value I.Role of Process Improvement I.High Quality and Productivity II.Highest Value and Satisfaction II.Examples I.Shouldice Hospital II.Benihana of Tokyo I.Cooks are In Charge of “Stoves” II.Cooked in Full Sight of Patrons III. Dinner Show III.Florida Power and Light* I.Initial Great Success II.Procedure Took Over Goals

6. 6 Service Profit Chain Ch. 8 Developing Processes That Deliver Value III. Techniques for Process Improvement 1. Service Mapping 2. Pareto Analysis* 3. Fishbone Diagramming IV. Translating Techniques Into Results 1. Benchmarking “Best in the World” 2. Maintain both a Customers’ and an Employee’s Point of View 3. Shielding Employees from Job Loss