This paper provides a critical examination of how service value can be enhanced and the subsequent transformation of that knowledge into an organisation‐wide learning process. In particular, it concentrates on the role of people in creating and adding value to services by highlighting some of the contextual factors which may potentially facilitate the value‐adding dimensions that personal input can bring to service delivery. Offers a new conceptualisation of quality service by promoting the notion of “alchemy”, and addresses the crucial role performed by people. Argues that service alchemy provides an opportunity for organisations to improve, attain and maintain excellence.
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