The purpose of the paper is to discuss the complex issues, obstacles and factors that can have a significant role and influence on the implementation and execution of a performance‐based industrial service strategy.
A case study has been performed the oil and gas industry which maps the issues, challenges and opportunities in the process of implementing and executing a performance‐based service strategy.
The study identifies differences in practice with respect to conventional as compared to performance‐based contracts. Furthermore, performance factors (i.e. cost drivers, performance killers and critical success factors) of the service strategy implementation and execution process are discussed in relation to the oil and gas industry in the North Sea. A performance‐based service strategy needs to be upgraded, modified and customized based on performance measurements, as well as needs, wants and preferences of the involved parties during the contract period.
The findings and discussions will help service strategy developers, implementers and executors to recognize the importance of a focused service strategy development process for industrial services. Moreover, the paper will guide developers, implementers and executors to decide about factors that need to be considered.
The framework discussed can be used to develop a performance‐based service strategy. The results of the research will ease the process of understanding and defining the implementation and execution process of a strategy by presenting the possible performance factors in advance.
