Keys to Success in Business Services

Business services

Business services are activities that benefit companies without supplying physical products. Examples include marketing, research, information technology and even staffing, among many others. Companies use these services to improve their operational efficiency, profitability and safety, while reducing costs and increasing convenience for customers.

A key to success in a service business is establishing clear goals and measuring performance. While these measures are not as easy to gather as for a product business, some simple techniques can make the process easier.

Another key to success in a service business is providing strong leadership. Without this, the competitive autonomy of individual service models tends to override the shared value of a business as a whole. To counter this effect, businesses typically employ a leadership style that balances the power of revenue-generating line managers with those of shared services, and ensures that the interests of the former do not undermine those of the latter.

The third and final key to success in a service business is to involve customers in the operations of a service model. While this can be challenging, it can also provide an opportunity to gain insights that can greatly enhance a company’s competitive position. For example, an architectural firm’s customer can help it develop the best designs for a new facility by explaining what the building will be used for or by providing other valuable input to design teams. A construction firm that engages a customer in its operation can also cut project costs by eliminating the need to rent pricy construction tools for every job.