Bringing Financial Discipline to Service Quality
Bruce S. Fanjoy
(As Senior Product Manager for Comcheq Services Limited of
Canada, he is responsible for the product and service direction of
Canada’s largest payroll service bureau, Comcheq, 125 Garry St,
Winnipeg, Manitoba, Canada, R3C 3P2. (Tel: 204 946 0770; Fax: 204 956
4026).)
840
Abstract
Describes annuitized valuation, which is a tool to measure the financial value of customer relationships. It measures the asset value of customer and represents the potential net cash flow of customers, over time. It can identify an imbalance (called a reward paradox) in the compensation policies of service firms. Avoiding this paradox must be a strategic imperative of firms committed to service quality leadership.
Keywords
Citation
Fanjoy, B.S. (1994), "Bringing Financial Discipline to Service Quality", The TQM Magazine, Vol. 6 No. 6, pp. 57-61. https://doi.org/10.1108/EUM0000000003936
Publisher
:MCB UP Ltd
Copyright © 1994, MCB UP Limited