Service productivity : Towards understanding the relationship between operational and customer productivity

It is surprising that little empirical research has been conducted in the area of service productivity given its impact on organisational costs. In order to try to encourage such research, this paper provides a structure for analysing productivity in service organisations by distinguishing between operational and customer productivity. The paper also clarifies the meaning of “productivity” and differentiates it from efficiency and utilisation. The authors identify some of the problems in measuring productivity, especially in a service setting, and then use a few examples to illustrate the sometimes counterintuitive relationship between operational and customer productivity.