The Business services industry encompasses a broad range of sectors that support companies’ operations without creating a tangible product. These include marketing, consulting, transportation and logistics, waste management, staffing services, shipping, administration, and more. As one of the largest service sectors, it’s critical for European competitiveness and contributes 11% of EU GDP.
The differences between a product and a service business require a different approach to leadership. Successful service businesses rely on strong, centralized leadership that balances the competitive autonomy of revenue-generating line managers with the collective value of shared services. If a company lacks this balance, the company’s service model will fail.
Unlike products, which can be stored for later use or sold to other customers, a service cannot be stockpiled and must be delivered upon demand. As such, the customer’s participation in a service process is crucial to its success. For example, a customer who dithers at a fast-food counter will slow down the service for everyone behind him.
Whether it’s helping a new company get off the ground or revamping an existing one, a business services firm can provide valuable expertise and help companies achieve their goals. These companies are often highly specialized and can offer a wide variety of options for clients, including training, coaching and consulting. However, not all business services firms are created equal, so it’s important to choose the right partner for your organization. Here are some tips to help you make the best choice.