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Notes that the nature of the service process makes the measurement of productivity and quality more difficult. In this paper a methodology to delineate relevant indicators of productivity and quality for services is developed. For both types of indicators, process analysis is a starting point. Insights from activity‐based management are introduced to work out productivity indicators. An approach based on quality function deployment is used to delineate relevant quality indicators. Both approaches are illustrated with case study material. During the process of developing these indicators, it became clear that realizing quality and productivity simultaneously within the service delivery process might imply a trade‐off. Implications and further extensions of this dynamic relationship are discussed within a larger service strategy framework.