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Much evidence has been generated in the past few years which describes the demise of quality circles (QCs), yet teamwork involving non‐managerial staff, aimed at quality improvement, is still a feature of the quality improvement process of many organizations, particularly within the service sector. Re‐evaluates the classic characteristics of quality circles, as found in the literature, within the context of research carried out within one of the main UK clearing banks. Gives consideration to both the operation and outcomes of QCs within a service organization, and also discusses the role of QCs as part of a company‐wide process of quality improvement, rather than a quality technique used in isolation. Examines the “soft” benefits of QCs and compares the “success factors” identified within the literature for the use of QCs with the empirical evidence. Concludes that, while there are differences in the way in which such teams operate when compared with quality circles, the basic characteristics are the same and there are many lessons to be learned. Proposes a tentative revised definition which takes account of these findings and the latest trends in Japan.

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