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However, when it comes to productivity we’re way behind. In fact the UK productivity gap with other developed countries is at its worst for over 20 years. According to the Office of National Statistics, the average British worker produces a startling 30% less than workers in France, Germany and the US. In other words what we produce in a 40 hour week those countries produce in just 28 hours! They could knock off at lunch time on Thursday for the weekend!
The biggest concern with productivity is in the Service Industry and one of the reasons for this could be that it’s simply harder to measure. On a production line it’s relatively straight forward to measure the number of units produced per person per hour. The processes are repeatable, predictable and the output physical. But how do you measure productivity of a service call or insurance claim or a mortgage application or recovering a credit card debt where every transaction is completely different? Some measures have been used, such as Average Handle Times (AHT) but it has long been recognised that these simply drive the wrong behaviours and can create further issues and repeat unnecessary contacts.
I’ve personally had a couple of examples recently of why productivity in service is so poor.
Both of these should have been done on one visit, improving productivity and reducing customer inconvenience.
The thing is, poor productivity in the service industry not only increases costs and reduces margin but also has a direct impact on the customer. Potentially causing customers to look for someone else to provide their service.
Some things you could do to improve productivity in your service business:
Reinvigoration can help with a methodology specifically developed for the Service Sector and takes into account the individual and unpredictable nature of each and every transaction. It develops a culture and provides a simple set of tools for service providers to use to improve productivity, reduce costs and improve the service it provides its customers.
For further information please contact our team.
Get in touch to discuss how we can help you transform your service operations.
Throughout the years, we have developed a set of consulting, capability building and e-management solutions that enable us to tailor our approaches to our clients’ needs and help them transform their service operations.