Just like a product that’s going to market, a service needs to be compellingly designed, and management must field a workforce capable of producing it at an attractive price. After years of extensive research and analysis, she offers an approach for crafting a profitable service business based on four critical elements: the design of the offering, the funding mechanism, employee management, and customer management. In this article, Harvard Business School’s Frei explains why and urges companies to add some new ones to the mix. Although they are valuable to service managers, they aren’t sufficient for success. Many of the management tools and techniques used in service businesses were designed to tackle the challenges of product companies.
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