If you subscribe to the beliefs in the service-profit chain, then you need to also tailor your measurements to those that best address the next step in the chain. This means that you may need to alter the way you current perform your measurements. For example, if you measured productivity by the number of customers helped, but found that the most important tool for the next step in the chain is how well the customers converted into long term business, then the way you define “productivity” may need to change. When it comes to employee productivity, ask yourself the following three questions.
Question 1: Does the Productivity You’re Measuring Relate to the Service Profit Chain?
Every aspect of the chain needs to relate to the preceding and proceeding links. In this case, you need to make sure that the measurements you create are actually measuring what they are expected to measure – in this case, something that leads to External Service Value (the next step in the chain). Subjective measurements of productivity and productivity that doesn’t take into account the value they bring out are poor employee productivity measurements.
Question 2: Do Your Employee Loyalty Reward and Address the Most Productive Employees?
You will also have to judge to ensure that your employee loyalty and your employee productivity are also linked. This will have to occur in multiple ways. First, you will have to ensure that the most productive employees are being rewarded. Second, you will have to see if the most productive employees are also the most loyal. If not, maybe there is something you will need to change in your structure.
Question 3: Does Your Productivity Measure Quality of Output?
This relates to the first question and the introduction to this article – but are you certain that the values you are receiving are measuring not only the quantity, but the quality of output? Cashiers are a great example. A cashier that can deliver outstanding customer service to 60 customers an hour may be more valuable than one that can deliver terrible customer service to 70. However, that may not always be the case. Great customer service to a cashier that can only cover 10 per hour may not be as valuable as worse customer service for 70. Your measurements need to address these types of issues.
Always Good Questions to Ask
The questions that are brought up by the ideas in the service-profit chain are good ones to ask yourself, even if you don’t subscribe to the service-profit method. These days, many companies understand the value of things like employee productivity measurements, but these companies still don’t accurately take these measurements in order to turn them into something valuable. Always make sure to check your measurements and make sure they are bringing you the results you are actually looking for.