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The need for a strategic shift in senior management philosophy which encourages and promotes a culture of total employee involvement towards the attainment of service quality is one of the major competitive challenges facing the Australian banking industry in the 1990s. Some of these issues are addressed through a case‐study analysis of the origin, rationale and implementation of a quality service programme in the State Bank of South Australia. In examining these changes a historical outline of the State Bank of South Australia and an account of the research methodology used in the study form the introduction. This is followed by an analysis of the design and development of a programme of change and an identification of the key factors shaping the implementation of total quality management. In conclusion an assessment of the opportunities and constraints for the successful implementation of service‐quality delivery programmes in the Australian banking industry is given.

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