The Incompleteness Theorem of Performance Measurement in Service Quality

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Are quantitative performance measures sufficient to understand how customer perceive your services? Presented at the World Business Capability Conference in Auckland (December 2012).

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The Incompleteness Theorem of Performance Measurement in Service Quality

  1. 1. The Incompleteness Theorem of Service Quality Measurement The Limitations of quantitative business excellence assessmentsPeter PrevosManager Land Development, Coliban Water (Bendigo, Australia)PhD Candidate, La Trobe University (Melbourne, Australia)
  2. 2. The Measurement Axiom“What you measure is what you get” Welch, J. (2001). Straight from the gut. Warmer Books.
  3. 3. The Theorem “Any effectively generated systemcapable of measuringservice quality cannotbe both complete and consistent.” The incompleteness theorem will be illustrated using examples from the tap water perspective.
  4. 4. Tap Water Services● Physical Parameters – Pressure ● Service failure (no pressure) – Purity ● Biological ● Chemical Measuring water purity is a scientific process.
  5. 5. Tap Water Services● Subjective customer experience – Surveys – Taste testing The customer experience is inherently subjective.
  6. 6. Service Quality Expected Total Perceived Quality Experienced Quality Quality Image • Market Communication • Image • Word-of-Mouth Technical Functional • Customer Needs Quality: What Quality: HowThe total perceived quality (Based on: Christiaan Grönroos 1990).
  7. 7. Measurement ≠ Understanding“Too often we measure everything and understand nothing” Welch, J. (2001). Straight from the gut. Warmer Books.
  8. 8. What does this mean?● Quantitative – Necessary but not sufficient condition● Qualitative – Inherently subjective – Narratives of Any specific suite of quantitative service quality targets can not customer experience measure all aspects. Qualitative assessments are required to understand customers.
  9. 9. InvisibleWater.org

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