Wednesday, March 27, 2013

Service Management and Strategic Implementation

Service has an important component to provide within the national economy. Such services enhance the quality of life for many individuals and make their day more effective. The post industrial society is based upon the ability of people to afford and able to use such services effectively. As society progresses from self-sustenance to shared sustenance the complexity of infrastructure and specialized services combine to create an inter-wrapping of networks and structure. 

The development of society and the development of services are on the same trajectory of growth. Society moved from providing extractive services such as agriculture and mining to secondary services such as manufacturing and processing. We are also now offering tertiary services such as restaurants and hotels and have grasped a higher level of governmental, financial and retailing structure. It is possible that we are moving into the quinary age of health, education, research, arts and recreation (Fitzsimons, & Fitzsimons, 2011). 

The appropriate development and delivery of services requires a strategy to make it effective. There should be alignment of the service system delivery, operating strategy, service concept, and target market segments (Sasser & Schlesinger, 1997). Each of these elements creates a function that when working in tandem provides the highest level of value for the customer and the potential highest level of income to the organization. Providing customer value and earning revenue are one in the same.

One of the ways to determine whether or not an organization is in proper alignment with its environment is to conduct a SWOT analysis. The SWOT analysis includes the concepts of Strengths, Weaknesses, Opportunities and Threats. Each organization has its own strengths that are unique to that company, has weaknesses that can be improved, opportunities for expansion into the market and threats that can damage its future sustainability. 

Strategy is the ability to take the information from the SWOT analysis, or other form of market scanning, and implement it within the organization. This is the most difficult task of any executive that desires to make an impact. They must make sense out of the information, honestly review their organizations capabilities, and then implement a strategy that impacts the entire chain of functioning throughout the organization. In the end this change should come to an appropriate output which raises sales, reduces expenses and improves revenue.

Fitzsimmons, J. & Fitzsimmons, M. (2011). Service Management: Operations, Strategy, Information Technology (Seventh Edition). NY: McGraw-Hill. 

Sasser, H. & Schlesinger, L. (1997). The service profit chain. NY: The Free Press.

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