Ownership Quotient: Putting the Service Profit Chain to Work for Unbeatable Competitive Advantage

James L. Heskett; W. Earl Sasser Jr.; Joe  Wheeler

Book | 2008

Ownership Quotient: Putting the Service Profit Chain to Work for Unbeatable Competitive Advantage

by James L. Heskett, W. Earl Sasser Jr. and Joe Wheeler

Abstract

Hundreds of large organizations worldwide have used the groundbreaking Service Profit Chain to improve business performance. Now The Ownership Quotient reveals the next generation of the chain: customer and employee "owners" of your business. Employee-owners exhibit such enthusiasm for their organization that they infect countless customers with similar satisfaction, loyalty, and dedication. Customer-owners are in turn so satisfied with their experience that they relate their stories to others, persuade them to try your product, and provide constructive criticism and new product ideas. As a new generation of managers has been changing the way that products and services are designed and delivered, authors Heskett, Sasser, and Wheeler have followed the evolution of this new ownership model. Case studies from companies as diverse as Harrah's Entertainment, ING Direct, Build-a-Bear Workshop, and Wegmans Food Markets bring home the central principle of engagement—and showcase ways to raise the ownership quotient among both your employees and your customers. With the authors' decades of consulting and research paving the way, you'll learn to identify your customer-owners; consistently exceed their expectations in ways they truly appreciate; and foster, measure, and grow the Ownership Quotient throughout your company. An organization that learns how to cultivate an ownership attitude creates a self-reinforcing relationship between customers and front-line employees. The lifetime value of a customer-owner can be equivalent to that of more than a hundred typical customers. And that makes the lifetime value of an employee who can promote customer ownership priceless. This powerful and practical book shows you how to add that value to your company and delight your employees, customers, and investors. Is your organization ready to make the transition to an ownership state of mind?

Keywords: Customer Satisfaction; Organizational Change and Adaptation; Customer Ownership; Employee Ownership; Competitive Advantage; Value Creation;

Format: Print

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Citation:

Heskett, James L., W. Earl Sasser Jr., and Joe Wheeler. Ownership Quotient: Putting the Service Profit Chain to Work for Unbeatable Competitive Advantage. Harvard Business Press, 2008.

Montes Calçados (MC) is a well-known "fast-fashion" Brazilian manufacturer of casual, but fashionable, shoes for women aged 18–35 in major cities worldwide. To boost its declining revenues, MC must evaluate two growth options: whether to expand distribution online (at the risk of diluting the brand by attracting older customers) and whether to increase the frequency of introducing new styles (at the risk of more fashion "misses"). Altogether, Montes Calçados might need to rethink the "Brazilian" positioning of its brand. The case is suitable for strategy and general management courses because it raises questions about a company's basic direction and business definition as well as the management of complex issues associated with doing business worldwide. Because this case suggests the overlap of key marketing decisions with strategic questions, it can also be used in both required and elective marketing courses, especially for topics on distribution of consumer products and brand management. This case can be used in advanced undergraduate, MBA, or executive-level courses.

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Ownership Quotient: Putting the Service Profit Chain to Work for Unbeatable Competitive Advantage

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