The evolution of the service organization as a profit center has been well documented, at least within Service Management research here at Aberdeen. We have tracked service and manufacturing organizations as they have moved from primarily being managed as a cost center to a profit center. This transformation has been directed by the emergence of the CSO (Chief Service Officer). Unfortunately, to this point, not a lot of organizations have the title of the CSO at the C-suite table, however Aberdeen’s latest State of Service Management: Roadmap to a Profitable 2014 report highlighted that nearly nine out of ten Best-in-Class organizations (86%) have a VP or higher executive in place to manage the service operation. Leadership and a clear goal of profitability are the right stepping stones to success, but top performing organizations ventured beyond these two areas to truly excel. The following best practices among others are outlined in detail in my recent report on the State of Service –

  • Listen to the customer. Customer feedback is important if an organization is going to continue to improve its products and services. Without incorporating customer feedback an organization is simply reacting in a vacuum to its own whims and not those of the market. Feedback loops help close the gap.
  • Use your peer’s performance to measure your own success. We all would like to think we are the best at what we do. However, this view, even if sometimes true, is short-sided. We can all improve, so whether you benchmark your performance against peers in your industry or from another industry, it is necessary to continuously look for organizations that are doing great things and try to emulate them or improve upon their successes.
  • Understand what motivates your service team. Many organizations assume all employees are driven my money. This may be the case in regard to your sales team or your CFO / CEO. However, leading organizations are evaluating their service teams to find out exactly what drives them, and specifically looking at the individuals on the team to create the right incentives with the goal of achieving the desired behaviors.

These are just a few of the best practices which have helped the Best-in-Class not only become profit centers within the organization but also differentiate from peers. Exceptional service is a challenge, but if executed well can lead to many rewards – both from the customer and profitability. If you would like to read the entire report, feel free to download a complimentary copy.

Aly Pinder Jr
Research Analyst
Service Management
aly.pinder@aberdeen.com or @pinderjr