The Value Profit Chain

Heskett, James L.; Sasser, Jr., W. Earl
January 2003
Value Profit Chain - Business Book Summaries;2003, Vol. 20 Issue 9, p1
Book Summary
Book Summary
"The Value Profit Chain" is a culmination of several decades of research and subsequent publications that primarily focused on the service sector. The highlight of this exploration was "The Service Profit Chain" (1997), Heskett, Sasser, and Schlesinger& x2019;s groundbreaking book in which they asked why a few service enterprises seem to be consistently better at what they do than their competitors. These relationships form the foundation for a powerful strategic service model that stands as an effective framework for erecting more focused operations and marketing capabilities.This organizing framework presented the service profit chain as a rationale for excellence. Its essential message was that the value of products/services delivered to customers is equivalent to the results created for them, as well as the quality of the processes used to deliver the results. The two concepts are complementary, both reflecting the important objective of achieving market, operating, and human resource focus around a service concept that delivers the results customers desire. However, as the authors acknowledge, the work raised more questions than it answered, namely: Can these ideas that worked well in service start-ups provide the basis for transformational change in ongoing enterprises in manufacturing?


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