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DESCRIPTION
The Service-Profit Chain model, developed by James Heskett, Earl Sasser, and Leonard Schlesinger, theorizes that organizations need to focus on providing what their employees, customers, investors, suppliers, and others value most. Driving value for these stakeholders will lead to maximum profitability.
By focusing on value, we will bring about necessary organizational change. Tying our organization to the most valued needs of our customers will make us more responsive to our markets. Also, giving employees what they appreciate in an organization will make them more productive and decrease the costs of employee turnover.
The Service-Profit Chain framework acknowledges the importance of the behaviors of a company's 3 key constituent groups:
1. Customers
2. Employees
3. Investors
This value-driven approach will result in greater organizational effectiveness and profitability. The spectrum of firms that benefit from the Service-Profit Chain model is wide. It includes small and large organizations, public and private organizations, and profit and non-profit organizations.
The Service-Profit Chain, developed from analyses of numerous successful service organizations, puts "hard" values on "soft" measures.
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Source: Best Practices in Customer Satisfaction, Leonard Schlesinger, Employee Productivity, James Heskett, Customer Loyalty, Employee Retention, Earl Sasser, Service-Profit Chain PowerPoint Slides: Service-Profit Chain PowerPoint (PPT) Presentation, LearnPPT Consulting
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OVERVIEW
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ABOUT THE AUTHOR
We are a team of management consultants trained by top tier global consulting firms (including McKinsey, BCG, Deloitte, EY, Capgemini) with a collective experience of several decades. We specialize in business frameworks based on real-life consulting engagements.
We have served 100s of clients that range from Fortune 500 companies to tech startups to $1B+ private companies.
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Employee Management Audit Management Service Design Value Chain Analysis Lean Game Lean Office Customer Satisfaction Customer Loyalty Net Promoter Score Project Management Value Stream Mapping Process Analysis Human Resources Corporate Culture Value Proposition
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