Improving Services Transformation decision making

by NIck Frank on February 21, 2011

Weighing up the multitude of factors involved in strategic decisions can give even the best brains a headache. For leader’s of manufacturing and technology companies, whose careers have developed around products and processes, this is especially true when it comes to Services.

Through the recent economic crisis, services proved to be a key contributor to the survival of many businesses, so propelling it to strategic prominence in the minds of many business leaders. But for many of leaders it is unknown territory, requiring a change in mind set and perspective. The quality of their decision making process can dramatically be improved by structuring the decision criteria in a way that identifies the key success factor’s for developing profitable services businesses.

In response to this need, PSi have developed a Service Capability Assessment tool based on a questionnaire used in the research of Professor’s Reinartz at Cologne University and Professor Ulaga of HEC-Paris.

To illustrate the power of this tool, PSi have developed a case study based from an assessment we did in June 2010 on a manufacturer of capital equipment . The spider diagram provides managers with a visual snap shot of the strengths & weaknesses of an organisation in relation to services. Under this summary, the detailed drivers of the summary are presented based on both qualitative and quantitive analysis. The case study goes on to demonstrates how data can be presented in an easy to understand format, that can be easily used to Decide and Develop your services transformation plan, and later to judge how successfully it was.

Since this case study was developed, the Service Capability Assessment has seen significant developments to the analytical framework and is now underpinned by the work of PSi’s research partners. It is now a statistically robust tool, based on inputs from over 200 companies that can be used to benchmark your organisation’s ability to release value from your services against other companies and industry sector’s.

You can download the case study here. Please let us know what you think.

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