The Path to Growth and Profit

The Service Profit Chain By James L. Heskett, W. Earl Sasser, Jr., & Leonard A. Schelsinger These three Harvard Professors have written one of the most excellent books that links the bottom line to the human side of the business equation. Featured in the book are: British Airways, Marriott, Nordstrom, Ritz Carlton, Service Master, Southwest Airlines, Taco Bell and Wal-Mart, to name a few. The core concept of the book is captured in figure 1, and described briefly below the figure. Customer loyalty is what leads to high levels of growth and profit. High levels of customer satisfaction lead to customer loyalty. Customer satisfaction results from the value of services delivered vs. what customers expected. Employee loyalty, effectiveness & satisfaction are the keys to service value. Here are some key thoughts from the book that you will find interesting: