The usual explanation of the U.S. service sector lagging performance emphasis on the difficulties of measuring maintenance products, the lack of sufficient competition in services, and the low level of training. Based on data collected in 95 service companies in the banking and hospitality industries in the United States, Britain and Germany, this article offers an alternative explanation. U.S. service companies can effectively achieve low levels of labor productivity through design. Service of U.S. institutions in this study, the performance leader in low value-added segments of the market, but the performance lagging in higher value-added market segments. They consciously chose to adjust the intensity of labor services in the business potential of different customer segments. Changing the design of service processes for the segment decreased levels measured performance, but can support a higher level of business performance. "Hide
by Brent Keltner, David Feingold, Jeff Mason, Karin Wagner Source: California Management Review 20 pages. Publication Date: July 1, 1999. Prod. #: CMR157-PDF-ENG
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