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Home  /  Library   /  For Service Businesses, Passion Boosts Profits

For Service Businesses, Passion Boosts Profits

By Mike Schultz, Publisher, and John Doerr, Contributing Editor

We all have bad days. If you work at a product company and you have a bad day, the product is still just as good as it was yesterday. Products on shelves don't suffer negative consequences of employee bad moods and unproductive time at the office.

For service businesses, the reality is much different. David Maister, respected business academic and author, states, "A less than fully motivated work force is a competitive disadvantage for any business organization. For a professional firm, it's a death knell."

And he's right. For people that work at service companies, if you have an unproductive day it shows up directly in your work. Because services are produced (by the service provider) and consumed (by the client) simultaneously, there's simply no masking poor service delivery. Add up enough bad days and you can say goodbye to both your loyal clients and your new business development energy and success.

Now I know what you're thinking, 'This may be true, but the people in my firm are passionate about their work, their clients, developing businesses, and their careers.' While this may be true, the odds are against it.


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