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<html> <style><!-- .H1ToC2 {text-align:center; text-autospace:none; font-size:15.0pt; font-family:"Times New Roman"; font-weight:bold;} .H2noTofC {text-autospace:none; font-size:12.0pt; font-family:"Times New Roman"; font-weight:bold;} .a {text-indent:-.5in; text-autospace:none; font-size:12.0pt; font-family:"Times New Roman";} .a0 {text-indent:0.5in; text-autospace:none; font-size:12.0pt; font-family:"Times New Roman";} .Section1 {page:Section1;} .Section2 {page:Section2;} .Section3 {page:Section3;} .Section4 {page:Section4;} .Section5 {page:Section5;} .Section6 {page:Section6;} --> </style> </html> [[http://www.amazon.com/gp/product/0471210501/qid=1151528743/sr=11-1/ref=sr_11_1/002-2164421-9276812?s=books&v=glance&n=283155|{{ usb:cover2side.gif|published by Wiley, available from Amazon}}]] [[ usb:toc|click here to return to the table of contents]]\\ <html> <div class=Section1> <p align=center style='text-align:center;'><b> <font size=5 face="Times New Roman"><span style='font-size:20.0pt;font-weight:bold'>Understanding Service Businesses:</span></font></b></p> <p align=center style='text-align:center;'><b><font size=3 face="Times New Roman"><span style='font-size:12.0pt;font-weight:bold'>Applying Principles of the Unified Services Theory</span></font></b></p> <p align=center style='text-align:center;'><b><font size=4 face="Times New Roman"><span style='font-size:15.0pt;font-weight:bold'>Second Edition</span></font></b></p> <h1><b><font size=4 face="Times New Roman"><span style='font-size:15.0pt'>Introduction</span></font></b></h1> <p><font size=3 face="Times New Roman"><span style='font-size:12.0pt;'>The United States of America has become a service economy, meaning that the majority of economic output (approximately three-fourths of GDP) comes from service businesses.  Services are predominant in the economies of other developed nations as well.  Robert F. Kelly, Managing Partner for Andersen Worldwide, has pointed out that, </span></font><font face="WP TypographicSymbols"><span style='font-family: "WP TypographicSymbols"'>A</span></font>In the most advanced economies of the world, services account for two-thirds or more of output.<font face="WP TypographicSymbols"><span style='font-family:"WP TypographicSymbols"'>@</span></font> (1997)  Even countries known for their large manufacturing bases have much of their GDP output attributable to services.  (e.g. Korea: 63 percent, Chinese Taipei: 56 percent, Thailand: 47 percent [Kelly, 1997 #41]).</p> <p><font size=3 face="Times New Roman"><span style='font-size:12.0pt;'>Services dominate not only the <i><span style='font-style:italic'>output</span></i> of developed nations, but also absorb much of the <i><span style='font-style:italic'>inputs</span></i> of production, such as labor and capital.  For example, the percentage of employment in service sector jobs in 1993 for a sampling of nations was Canada 75%, U.S. 74%, Australia 72%, Belgium 71%, Israel 68%, France 66%, Finland 66%, Italy 60%, Japan 60% [United.Nations, 1993 #13].  This is not at all to imply that developed nations are <i><span style='font-style:italic'>good</span></i> at managing services.  In fact, it appears that generally they are <b><i><span style='font-weight:bold;font-style:italic'>not</span></i></b>.  The following are a few examples of the need for better service management.</span></font></p> <p class=H2noTofC><b><font size=3 face="Times New Roman"><span style='font-size:12.0pt'>The service sector is not very productive.</span></font></b></p> <p><font size=3 face="Times New Roman"><span style='font-size:12.0pt;'>Services sector utilization of labor and capital has only improved slightly in recent decades [Productivity.Indexes, 1988 #9].  While manufacturing sectors experienced a 3.3% productivity increase between 1980 and 1990, service sector productivity only increased a paltry 0.8% [van Biema, 1997 #8].</span></font></p> <p class=H2noTofC><b><font size=3 face="Times New Roman"><span style='font-size:12.0pt'>Service quality is not very good, and seems to be on the decline.</span></font></b></p> <p><font size=3 face="Times New Roman"><span style='font-size:12.0pt;'>One author observed, </span></font><font face="WP TypographicSymbols"><span style='font-family: "WP TypographicSymbols"'>A</span></font>Service quality, while difficult to measure, is generally perceived to be deteriorating<font face="WP TypographicSymbols"><span style='font-family: "WP TypographicSymbols"'>@</span></font> [Hackett, 1990 #10].  This observation is verified by the American Customer Satisfaction Index (ASCI), an annual survey which is sponsored by the American Society for Quality (ASQ) and the University of Michigan Business School.  Each year tens of thousands of consumers are surveyed about perceptions of companies in various industries.  The results are organized by economic sector according to Standard Industrial Codes (SIC).  </p> <p><font size=3 face="Times New Roman"><span style='font-size:12.0pt;'>In 1996, the chief researcher of the ASCI, Claes Fornell, and colleagues, observed, </span></font><font face="WP TypographicSymbols"><span style='font-family: "WP TypographicSymbols"'>A</span></font>Customer satisfaction is found to be greater for goods than for services....  Cause for concern is found in the observation that customer satisfaction in the U.S. is declining, primarily because of decreasing satisfaction with services<font face="WP TypographicSymbols"><span style='font-family: "WP TypographicSymbols"'>@</span></font> [Fornell, 1997 #14].  ASCI reports finding that customer satisfaction is primarily quality-driven, implying that service quality is on the decline.</p> </div> <font size=3 face="Times New Roman"><br clear=all style='page-break-before:auto;'> </font> <div class=Section2> <p><font size=3 face="Times New Roman"><span style='font-size:12.0pt;'>Unfortunately, the results for 1997 were worse in many respects, as shown in the figure below.</span></font></p> <p><font size=3 face="Times New Roman"><span style='font-size:12.0pt'> </html> {{ usb:wbi3-figure1.gif }} <html> </span></font></p> <p><font size=3 face="Times New Roman"><span style='font-size:12.0pt;'>Observe that both non-durable manufacturing (the top line) and durable manufacturing (the second line) are well above the various service sectors of the economy in average ratings.  Further, the two areas of greatest decline in 1997 were transportation/communication/utilities, dropping 5.2 percent, and other services (hospitality, health care, movies) dropping 4.9 percent.  Service quality is not generally improving, by any stretch of the imagination!  (The notable exception is public administration/government, which actually <i><span style='font-style:italic'>improved</span></i> in 1997, reflecting increased satisfaction with services such as law enforcement.  Yet overall satisfaction levels are still quite low.)</span></font></p> <p class=H2noTofC><b><font size=3 face="Times New Roman"><span style='font-size:12.0pt'>Services are often managed by outdated paradigms.</span></font></b></p> <p><font size=3 face="Times New Roman"><span style='font-size:12.0pt;'>A poignant article by Ronald Henkoff (1994) observes:</span></font></p> <p>&quot;For far longer than most of us realize<font face="WP TypographicSymbols"><span style='font-family: "WP TypographicSymbols"'>B</span></font>for most of this century, in fact<font face="WP TypographicSymbols"><span style='font-family:"WP TypographicSymbols"'>B</span></font>services have dominated the American economy. They now generate 74% of gross domestic product, account for 79% of all jobs, and produce a balance&#8209;of&#8209;trade surplus that hit $55.7 billion last year, vs. a deficit of $132.4 billion for goods.<font face="WP TypographicSymbols"><span style='font-family: "WP TypographicSymbols"'>@</span></font></p> <p><font size=3 face="Times New Roman"><span style='font-size:12.0pt;'>Nevertheless, he laments:</span></font></p> <p>&quot;The service economy, despite its size and growth, remains extraordinarily <i><span style='font-style:italic'>misunderstood</span></i>, <i><span style='font-style:italic'>mismeasured</span></i>, and <i><span style='font-style:italic'>mismanaged</span></i>.<font face="WP TypographicSymbols"><span style='font-family: "WP TypographicSymbols"'>@</span></font> (italics added)</p> </div> <font size=3 face="Times New Roman"><br clear=all style='page-break-before:auto;'> </font> <div class=Section3> <p><font size=3 face="Times New Roman"><span style='font-size:12.0pt;'>The service sector has grown in size, but not in managerial practice.  Others, such as van Biema and Greenwald (1997), share this view.  They assert that </span></font><font face="WP TypographicSymbols"><span style='font-family: "WP TypographicSymbols"'>A</span></font>The primary reason why the productivity growth rate has stagnated in the service sector is <i><span style='font-style:italic'>management</span></i><font face="WP TypographicSymbols"><span style='font-family: "WP TypographicSymbols"'>@</span></font> (italics added).</p> <p><font size=3 face="Times New Roman"><span style='font-size:12.0pt;'>Henkoff continues:</span></font></p> <p>&quot;Despite the steady expansion of the service economy, American management practices, accounting conventions, business school courses, and public policies continue to suffer from an acute Industrial Age hangover. <font face="WP TypographicSymbols"><span style='font-family:"WP TypographicSymbols"'>&gt;</span></font>Most people still view the world through manufacturing goggles,<font face="WP TypographicSymbols"><span style='font-family:"WP TypographicSymbols"'>=</span></font> complains Fred Reichheld, leader of the customer&#8209;loyalty practice at Bain &amp; Co.</p> <p><font size=3 face="Times New Roman"><span style='font-size:12.0pt;'>As an example of this mismanagement, Reichheld observes that the accounting systems currently in use were </span></font><font face="WP TypographicSymbols"><span style='font-family:"WP TypographicSymbols"'>A</span></font>designed to serve 19th&#8209;century textile and steel mills.<font face="WP TypographicSymbols"><span style='font-family:"WP TypographicSymbols"'>@</span></font><span>  </span>More from Henkoff:</p> <p>&quot;Service executives often behave much like belly dancers trying to march to a John Philip Sousa song, subjecting their companies to management theories<font face="WP TypographicSymbols"><span style='font-family:"WP TypographicSymbols"'>B</span></font>both traditional and trendy<font face="WP TypographicSymbols"><span style='font-family: "WP TypographicSymbols"'>B</span></font>that were invented in the factory. Says Leonard Schlesinger, a Harvard business school professor who has studied service companies for two decades:  <font face="WP TypographicSymbols"><span style='font-family:"WP TypographicSymbols"'>&gt;</span></font>Old legends die hard. Many service firms have aped the worst aspects of manufacturing management. They oversupervise; they overcontrol.<font face="WP TypographicSymbols"><span style='font-family:"WP TypographicSymbols"'>=@</span></font></p> <p><font size=3 face="Times New Roman"><span style='font-size:12.0pt;'>We have thus far failed to make the shift in management practice to correspond with the shift to a service economy.</span></font></p> <p class=H2noTofC><b><font size=3 face="Times New Roman"><span style='font-size:12.0pt'>Few service companies are truly innovative.</span></font></b></p> <p><font size=3 face="Times New Roman"><span style='font-size:12.0pt;'>Service innovation is often haphazard.  Jon Sundbo [, 1997 #16] conducted a study of innovation in twenty-one European companies from various service industries.  He concluded, </span></font><font face="WP TypographicSymbols"><span style='font-family: "WP TypographicSymbols"'>A</span></font>The innovation process is generally an unsystematic search&#8209;and&#8209;learning process.<font face="WP TypographicSymbols"><span style='font-family:"WP TypographicSymbols"'>@</span></font></p> <p><font size=3 face="Times New Roman"><span style='font-size:12.0pt;'>In fact, much of current practice in Services Management is unsystematic.  There is a crying need to develop and study the science of Services Management, which is what this workbook is all about.</span></font></p> </div> <font size=3 face="Times New Roman"><br clear=all style='page-break-before:always;'> </font> <div class=Section4> <p class=H1ToC2><b><font size=4 face="Times New Roman"><span style='font-size:15.0pt'>Defining Services Management</span></font></b></p> <p><font size=3 face="Times New Roman"><span style='font-size:12.0pt;'>A real challenge in developing the science of Services Management is that people have a hard time defining what services are, and identifying what makes service businesses different from any other business.  <i><span style='font-style:italic'>Fortune</span></i> magazine seems to have felt the effects of this difficulty in defining service business when, after many years of publishing the Fortune Industrial 500 and the Fortune Service 500, they recently collapsed the two lists into one [Eiben, 1995 #17].  It apparently became too difficult to sort the service firms from the manufacturers.</span></font></p> <p><font size=3 face="Times New Roman"><span style='font-size:12.0pt;'>A serious problem occurs when the inability to understand services leads to treating them as a peculiar case of manufacturing.  This cluelessness is illustrated by the practice of those who refer to services as </span></font><font face="WP TypographicSymbols"><span style='font-family: "WP TypographicSymbols"'>A</span></font>non-manufacturing<font face="WP TypographicSymbols"><span style='font-family: "WP TypographicSymbols"'>@</span></font> and/or who maintain that service businesses should be run by manufacturing paradigms. (Specific references available upon request.  I deleted the references I had listed here to avoid making enemies.)  Services are often treated by academics as a heterogeneous lump of leftovers.  Since the unique aspects of Services Management are not understood, they are referred to simply by their relative proximity to what most people in academics do know: manufacturing management.</p> <p><font size=3 face="Times New Roman"><span style='font-size:12.0pt;'>Authors Castells and Aoyama [Castells, 1994 #12] describe the prevalent confusion in defining services:  (Citations listed in this quote are from their paper.)</span></font></p> <p>&quot;the notion of <font face="WP TypographicSymbols"><span style='font-family: "WP TypographicSymbols"'>&gt;</span></font>services<font face="WP TypographicSymbols"><span style='font-family:"WP TypographicSymbols"'>=</span></font> is often considered at best ambiguous, at worst misleading (Gershuny and Miles, 1983; Daniels, 1993). In employment statistics, it has been used as a residual notion embracing all that is not agriculture, mining, construction, utilities, or manufacturing. Thus, the category of services includes activities of all kinds, with roots in various social structures and productive systems. The only feature common to these service activities is what they are not (Castells, 1976; Stanback, 1979; Cohen and Zysman, 1987; Katz 1988; Daniels, 1993).<font face="WP TypographicSymbols"><span style='font-family: "WP TypographicSymbols"'>@</span></font></p> <p><font size=3 face="Times New Roman"><span style='font-size:12.0pt;'>This definition of services as a disjointed </span></font><font face="WP TypographicSymbols"><span style='font-family:"WP TypographicSymbols"'>A</span></font>residual<font face="WP TypographicSymbols"><span style='font-family: "WP TypographicSymbols"'>@B</span></font>left over when all other sectors is accounted for<font face="WP TypographicSymbols"><span style='font-family: "WP TypographicSymbols"'>B</span></font>is peculiar.  That <font face="WP TypographicSymbols"><span style='font-family: "WP TypographicSymbols"'>A</span></font>residual<font face="WP TypographicSymbols"><span style='font-family: "WP TypographicSymbols"'>@</span></font> is larger than <i><span style='font-style:italic'>all other sectors combined</span></i> in advanced economies.  The <font face="WP TypographicSymbols"><span style='font-family: "WP TypographicSymbols"'>A</span></font>residual<font face="WP TypographicSymbols"><span style='font-family: "WP TypographicSymbols"'>@</span></font> view has been perpetuated by the way governments have classified economic activities [Schmenner, 1995 #18].  Attempts have been made to correct this confusion, such as with the new North American Industrial Classification System (NAICS).  Such attempts more accurately capture the shift to a service-based economy, but provide little to our understanding of how businesses should be managed in the new economy.</p> <p><font size=3 face="Times New Roman"><span style='font-size:12.0pt;'>Some authors and researchers have defined services in ways that are not </span></font><font face="WP TypographicSymbols"><span style='font-family: "WP TypographicSymbols"'>A</span></font>residual<font face="WP TypographicSymbols"><span style='font-family: "WP TypographicSymbols"'>@</span></font> per se, but still based on their distinction from manufactured goods.  The following are a few examples.</p> <p class=a0><font size=2 face="Times New Roman"><span style='font-size:10.0pt'>  </span></font>&quot;<font size=2><span style='font-size:10.0pt'>  Gonçalves  (1998) sets forth the following definition:  </span></font>&quot;<font size=2><span style='font-size: 10.0pt'>a service business is one in which the perceived value of the offering to they buyer is determined more by the service rendered than the product offered.</span></font>&quot;</p> <p class=a0><font size=2 face="Times New Roman"><span style='font-size:10.0pt'>  </span></font>&quot;<font size=2><span style='font-size:10.0pt'>  Ammer and Ammer (1984) defined a service industry as </span></font>&quot;<font size=2><span style='font-size: 10.0pt'>An industry that produces services rather than goods</span></font>&quot;<font size=2><span style='font-size: 10.0pt'> [quoted in \Riddle, 1985 #11, p. 9].</span></font></p> <p><font size=3 face="Times New Roman"><span style='font-size:12.0pt;'>Such definitions can be less than fulfilling, and provide little insight into what services are.  Other definitions focus on characteristics of services:</span></font></p> <p class=a0><font size=2 face="Times New Roman"><span style='font-size:10.0pt'>  </span></font>&quot;<font size=2><span style='font-size:10.0pt'>  Murdick, Render, and Russell (1990) identify services as intangible products, whereas (manufactured) goods are </span></font>&quot;<font size=2><span style='font-size: 10.0pt'>tangible objects that can be created and sold or used later.</span></font>&quot;</p> <p class=a0><font size=2 face="Times New Roman"><span style='font-size:10.0pt'>  </span></font>&quot;<font size=2><span style='font-size:10.0pt'>  Pearce defined services as follows:  </span></font>&quot;<font size=2><span style='font-size:10.0pt'>[Services] are sometimes referred to as intangible <i><span style='font-style:italic'>goods</span></i>; one of their characteristics being that in general they are </span></font>&quot;<font size=2><span style='font-size:10.0pt'>consumed</span></font>&quot;<font size=2><span style='font-size:10.0pt'> at the point of production</span></font>&quot;<font size=2><span style='font-size: 10.0pt'> [Pearce, 1981 #26, p. 390].</span></font></p> </div> <font size=3 face="Times New Roman"><br clear=all style='page-break-before:auto;'> </font> <div class=Section5> <p class=a0><font size=2 face="Times New Roman"><span style='font-size:10.0pt'>  </span></font>&quot;<font size=2><span style='font-size:10.0pt'>  Bannock, Baxter, and Reese put it this way:  </span></font>&quot;<font size=2><span style='font-size:10.0pt'>[Services are] consumer or producer goods which are mainly intangible and often consumed at the same time as they are produced....  Service industries are usually labor-intensive</span></font>&quot;<font size=2><span style='font-size:10.0pt'> [Bannock, 1982 #27, p. 372].</span></font></p> <p><font size=3 face="Times New Roman"><span style='font-size:12.0pt;'>Such definitions can provide insights into important issues of services.  However, we might question whether a business is a service because it possesses such characteristics, or if it has those characteristics because it is a service.  For example, software <i><span style='font-style:italic'>manufacturing</span></i> produces a product that is very intangible (computer code) and the production process is very labor-intensive (computer programmers).  Therefore, intangibility and labor intensity must not <i><span style='font-style:italic'>define</span></i> a business as a service.  We might conclude that if a business is a service it would tend to be intangible and labor-intensive, but not the other way around.  This is a major problem with defining services by their characteristics.  (Many characteristics of services will be discussed in Units 2 and 3: <i><span style='font-style:italic'>Service Fundamentals</span></i>.  The false idea of service intangibility will be rebuffed there.)</span></font></p> <p><font size=3 face="Times New Roman"><span style='font-size:12.0pt;'>Other definitions of services focus on the service production process:</span></font></p> <p class=a0><font size=2 face="Times New Roman"><span style='font-size:10.0pt'>  </span></font>&quot;<font size=2><span style='font-size:10.0pt'>  <b><span style='font-weight:bold'>A service is a personal performance.</span></b>  Levitt describes a service as being </span></font>&quot;<font size=2><span style='font-size: 10.0pt'>invariably and undeviatingly personal, as something performed by individuals for other individuals</span></font>&quot;<font size=2><span style='font-size:10.0pt'> [Levitt, 1972 #20].  Thomas disagrees with that conceptualization, since it denies automated services, particularly those acting on inanimate objects, such as an automated car wash service [Thomas, 1978 #21].</span></font></p> <p class=a0><font size=2 face="Times New Roman"><span style='font-size:10.0pt'>  </span></font>&quot;<font size=2><span style='font-size:10.0pt'>  <b><span style='font-weight:bold'>Service is to change a person or their belongings.</span></b>  Hill (1977) defined a service as </span></font>&quot;<font size=2><span style='font-size: 10.0pt'>a change in the condition of a person, or of a good belonging to some economic unit, which is brought about as the result of the activity of some other economic unit....</span></font>&quot;</p> <p class=a0><font size=2 face="Times New Roman"><span style='font-size:10.0pt'>  </span></font>&quot;<font size=2><span style='font-size:10.0pt'>  <b><span style='font-weight:bold'>A service is a product which is a process.</span></b> [Henkoff, 1994 #15; Shostack, 1987 #23]</span></font></p> <p class=a0><font size=2 face="Times New Roman"><span style='font-size:10.0pt'>  </span></font>&quot;<font size=2><span style='font-size:10.0pt'>  <b><span style='font-weight:bold'>Services are processes involving customer contact</span></b>.  Chase (1978) introduced a classification system in which </span></font>&quot;<font size=2><span style='font-size:10.0pt'>pure service</span></font>&quot;<font size=2><span style='font-size:10.0pt'> involves high requirements for customer contact and manufacturing involves low contact.  He defines </span></font>&quot;<font size=2><span style='font-size:10.0pt'>customer contact</span></font>&quot;<font size=2><span style='font-size: 10.0pt'> as the physical presence of the customer in the system.</span></font></p> <p class=a0><font size=2 face="Times New Roman"><span style='font-size:10.0pt'>  </span></font>&quot;<font size=2><span style='font-size:10.0pt'>  <b><span style='font-weight:bold'>Services are </span></b></span></font><b>&quot;</b><b><font size=2><span style='font-size: 10.0pt;font-weight:bold'>economic activities that produce time, place, form, or psychological utilities.</span></font></b><b>&quot;</b><font size=2><span style='font-size:10.0pt'> [Murdick, 1990 #19]  Riddle (1985) adds to this idea, </span></font>&quot;<font size=2><span style='font-size:10.0pt'>while bringing about a change in or for the recipient of the service.</span></font>&quot;</p> <p><font size=3 face="Times New Roman"><span style='font-size:12.0pt;'>There is a lot of truth in these conceptualizations.  However, we still need to answer the fundamental question about why we are justified in studying disparate service industries under a single heading of </span></font><font face="WP TypographicSymbols"><span style='font-family: "WP TypographicSymbols"'>A</span></font>Services Management.<font face="WP TypographicSymbols"><span style='font-family:"WP TypographicSymbols"'>@</span></font><span>  </span>For example, how are we justified in teaching a course on Services which encompasses health care and garbage collection, consulting and ski resorts, airlines and pawn shops, pet grooming and law firms, universities and butcher shops?  They all seem to fit the conceptualizations above to one degree or another<font face="WP TypographicSymbols"><span style='font-family: "WP TypographicSymbols"'>C</span></font>but if we ran our university like a butcher shop, where would we be?</p> <p><font size=3 face="Times New Roman"><span style='font-size:12.0pt;'>A major purpose of this workbook will be to define Services Management in such a way that the commonality of all service businesses will be captured, and important managerial implications will be revealed.  The approach to accomplish this purpose is called the </span></font><font face="WP TypographicSymbols"><span style='font-family: "WP TypographicSymbols"'>A</span></font>Unified Services Theory.<font face="WP TypographicSymbols"><span style='font-family:"WP TypographicSymbols"'>@</span></font></p> <p class=H1ToC2><b><font size=4 face="Times New Roman"><span style='font-size:15.0pt'>The Need for a Unified Services Theory</span></font></b></p> </div> <font size=3 face="Times New Roman"><br clear=all style='page-break-before:always;'> </font> <div class=Section6> <p><font size=3 face="Times New Roman"><span style='font-size:12.0pt;'>Some time ago I studied and pondered the dilemma of defining services.  I thought:  </span></font><font face="WP TypographicSymbols"><span style='font-family: "WP TypographicSymbols"'>A</span></font>Would it be possible to define service businesses in a way that (a) justifies studying such a wide range of industries under one heading, and (b) will lead us to numerous managerial implications?<font face="WP TypographicSymbols"><span style='font-family:"WP TypographicSymbols"'>@</span></font><span>  </span>This question is similar to one Albert Einstein pondered for the last twenty years of his life.  He felt driven to identify a <font face="WP TypographicSymbols"><span style='font-family:"WP TypographicSymbols"'>A</span></font>Unified Field Theory<font face="WP TypographicSymbols"><span style='font-family: "WP TypographicSymbols"'>@</span></font> which would describe how magnetism, gravity, radiation, light, and other energy fields were all part of a unified phenomenon.  The implications of a Unified Field Theory were tremendous, for it would not only show what the various energy fields had in common, but led to insights about how each individual field type operates.</p> <p><font size=3 face="Times New Roman"><span style='font-size:12.0pt;'>In like manner I concluded that what we need to hasten the development of the Services Management discipline was a </span></font><font face="WP TypographicSymbols"><span style='font-family:"WP TypographicSymbols"'>A</span></font>Unified <i><span style='font-style:italic'>Services</span></i> Theory.<font face="WP TypographicSymbols"><span style='font-family:"WP TypographicSymbols"'>@</span></font><span>  </span>After much study on the topic, I present The Unified Services Theory as described throughout this workbook.  This Unified Services Theory clearly justifies the common consideration of various industries called <font face="WP TypographicSymbols"><span style='font-family:"WP TypographicSymbols"'>A</span></font>services.<font face="WP TypographicSymbols"><span style='font-family: "WP TypographicSymbols"'>@</span></font><span>  </span></p> <p><font size=3 face="Times New Roman"><span style='font-size:12.0pt;'>The Unified Services Theory also unifies the distinctive characteristics of services by showing that they originate from a common cause.  The various characteristics of services are generally described in the literature separately, even though the characteristics do not occur in isolation from one another.  Fitzsimmons and Fitzsimmons (1998) share the insight that, </span></font><font face="WP TypographicSymbols"><span style='font-family: "WP TypographicSymbols"'>A</span></font>many of the unique characteristics of services, such as customer participation and perishability, are interrelated.<font face="WP TypographicSymbols"><span style='font-family:"WP TypographicSymbols"'>@</span></font><span>  </span>From this we may suppose that some characteristics are caused by other characteristics.  That is an extremely reasonable assumption.</p> <p><font size=3 face="Times New Roman"><span style='font-size:12.0pt;'>What if we went a step further?  What if we assumed that there was a major factor that caused <i><span style='font-style:italic'>almost every other characteristic of services to occur</span></i>?  Proposing that factor is a fundamental purpose of the Unified Services Theory.  This workbook describes dozens of service characteristics and Service Business Principles which are a direct result of that unifying factor.  There is not a single Service Business Principle described in this workbook that is not a direct consequence of the Unified Services Theory.</span></font></p> <div align=center> <table border=0 cellspacing=0 cellpadding=0> <tr> <td width=624 valign=top class="Normal"> <p class=H1ToC2><b><font size=4 face="Times New Roman"><span style='font-size:15.0pt'>The Workbook Premise</span></font></b></p> <p align=center style='text-align:center;'>&quot;<font size=5><span style='font-size: 18.0pt'>The keys to successful management of Service businesses will be yours if you can learn and apply just two things:  </span></font></p> <p align=center style='text-align:center;'><font size=5 face="Times New Roman"><span style='font-size:18.0pt'>(1) the Unified Services Theory, and (2) its implications.</span></font></p> <p align=center style='text-align:center;'><font size=5 face="Times New Roman"><span style='font-size:18.0pt'>Everything in this workbook is centered on that objective.</span></font></p></td> </tr> </table> </div> <p><font size=3 face="Times New Roman"><span style='font-size:12.0pt;'>In one sense, the Unified Services Theory is a descriptive model, and arguably so.  However, perhaps in a larger sense it is a <i><span style='font-style:italic'>prescriptive</span></i> model.  I propose a standard of understanding that can help bring together the many diverse views of those who study Service industries.</span></font></p> <p><font size=3 face="Times New Roman"><span style='font-size:12.0pt;'>Ideas and concepts that have gone into the Unified Services Theory and this workbook have been drawn from the best authors and researchers in Services Management.  There is very little about this material that is new except for the packaging</span></font><font face="WP TypographicSymbols"><span style='font-family: "WP TypographicSymbols"'>B</span></font>the individual ideas have been written about in other places.  The contribution of this workbook is in the way the principles are packaged in a unified whole that is more structured, more holistic, and more intuitive.</p> <p><font size=3 face="Times New Roman"><span style='font-size:12.0pt;'>Be careful to not assume that the intuitiveness of the principles means they are commonplace.  They are neither commonplace nor common practice.  The power of the Unified Services Theory is in understanding how basic ideas, when fully understood and internalized by the service manager, can make a dramatic difference in how the service business operates and succeeds.</span></font></p> <p><font size=3 face="Times New Roman"><span style='font-size:12.0pt;'>The Unified Services Theory will be introduced in Unit 1 of this workbook.  The remaining units serve to draw managerial implications from the Unified Services Theory.  This format is based on the idea that understanding how to best manage service businesses should be founded in an understanding of what service businesses are.</span></font></p> </div> </html> [[ usb:toc|click here to return to the table of contents ]]



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== Public sections == * [[usb:toc|Understanding Service Businesses]] book. * [[ibm:ssme:ust|UST paradigm for Service Science]] * [[ibm:ssme:cambridge07|Cambridge 2007 notes]] ---- * [[:start]] * [[http://services.byu.edu/sw/doku.php?do=index|Site map]] * [[http://services.byu.edu/sw/doku.php?do=recent|Recent Changes]] * [[:wiki:dokuwiki|Help]] == Private sections == * [[gscm:pub|BYU GSCM student recruiting]] * [[ibm:scm|IBM SCM case study]] * [[cos:top|Commoditization of Services]] research

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