Case study: service quality, business process re‐engineering and human resources: a case in point?

Features a case study of a major bank which aimed to achieve corporate transformation and a dramatic improvement in service quality. The links between service quality, customer satisfaction and corporate profitability in UK banking are outlined in order to set in context the many quality improvement initiatives undertaken by UK retail banks in recent years. Business process re‐engineering has proved to be the most popular of service quality initiatives but most have been limited to single processes rather than corporate transformation as portrayed in the case study. The five‐year corporate transformation programme focuses on employee communications, the redesign of work, recruitment and reward processes and the introduction of consumer research‐based national quality standards. The bank was rewarded for its efforts, coming top for three consecutive years in the Which? service quality surveys and, according to its own data, which contributed to a rise in customer satisfaction and customer retention at a time of declining employee satisfaction. Future developments in service quality segmentation and a working definition of service quality are proposed.