United States                    Administration And
Environmental Protection   '   ,    Resource? Management    ,.
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THE  CUSTOMER  STRflTEGV
               MflRCH 1992
           EPA Headquarters Library
  Information Management and Services Division
      U.S. Environmental Protection Agency
            Room M2904 PM-211A
              401 M Street, SW.
            Washington, DC 20460
                                U.S. Environmental Protection Agency
                                Region 5, Library (PL-12J)
                                77 West Jackson Boulevard, 12th Floor
                                Cii/cago, JL 60604-3590

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                        TABLE OF CONTENTS
I.  SERVICE TO THE CITIZEN	   1

II. GETTING TO KNOW THE CUSTOMER	   6

III. THE INTERNAL CUSTOMER	  11

IV. DEVELOPING A CUSTOMER SERVICE PLAN	  19

V. ROLE OF THE EMPLOYEE IN CUSTOMER SERVICE	  27

VI. SELECTED LIBRARY RESOURCES ON TOTAL CUSTOMER SERVICE	  33

MANAGEMENT BIBLIOGRAPHY COLLECTION	  35
               ne?(t great idea is in the ££R# Headquarters Library
               EPA Headquarters Library (PM211 A) WSM2904 202-260-5922

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                           INTRODUCTION

                      THE CUSTOMER STRATEGY
     Customer  service  is a  management strategy that  focuses on
understanding customer needs  and meeting customer expectations.  It
builds on the concept that customer satisfaction is a vital means
of reaching organizational goals.  Citizens are primary customers
of  government  organizations,  but  internal  customers are  also
important to effective management.

     The  Customer  Strategy  supports  EPA's  efforts   to  provide
quality  management and  be  responsive  to  public  concerns  about
environmental  protection.    This  review  of  customer  service
concepts, benefits and  examples provides resource material to begin
exploring how  to  achieve customer satisfaction.   Service  to the
Citizen  reviews work  currently being done  in  the  public sector.
Getting  to Know the Customer emphasizes a  first step  in quality
customer service:   knowing what your customer wants.  The Internal
Customer recognizes that there are customers in all phases of the
process, both within and outside  the  organization.  Developing a
Customer  Service   Plan  discusses methods  to   improve  customer
service, and provides some examples from the private sector.  The
Role of the Employee in Customer Service points out that everyone
is involved in developing quality customer service.

     The  Customer  Strategy  was  compiled   using  ABI/INFORM,
MANAGEMENT CONTENTS,  PUBLIC AFFAIRS  INFORMATION  SERVICE,  PSYCH
ABSTRACTS,   and  the  FEDERAL  QUALITY  INSTITUTE subfile of  the
NATIONAL TECHNICAL INFORMATION SERVICE.

     The Customer  Strategy ends with selected resources available
through the EPA Library Network.   Copies of the articles cited in
this bibliography  may  be requested from your  local EPA Library.
For further assistance, contact Cathy Flanagan, Reference Librarian
(contractor),  in the Headquarters Library at 260-5921.

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/. SERVICE TO THE CITIZEN
Quality in Government: Capitol improvements
Penzer, Erika
Incentive  v!65n4  PP: 45-47, 97  Apr 1991

 Washington, DC's Office of Personnel Management (OPM) oversees all
human resources functions of the US' 3 million federal employees.
OPM  director  Constance  Berry  Newman  believes  that  government
workers  need to  understand why  they  do  what they  do  and  who
benefits  from their  work.    Newman spends  many  hours  with  OPM
managers discussing the concept of serving customers, and  she meets
weekly with  her  agency's  20 area  managers  to discuss  what  she
considers the  11  most critical  issues.   She then encourages each
team of managers to hold  its own meeting to brief staff members on
the  week's  discussions,  talk  about  the  11 issues,   and  keep
communication channels open.  One of Newman's highest priorities is
training  first-level  managers  in  the  fundamentals of  quality,
customer service,  and coaching,  leading,  and facilitating skills
when they first are promoted  to management.  She also is working to
revise  the  performance  appraisal  system  so that  workers  and
managers devise measurements together and work is judged fairly.
(ABI/INFORM)


Customer Service in Public Administration
Wagenheim, George D.; Reurink, John  H.
Public Administration Review  v51n3  PP: 2.63-270  May/Jun 1991

 Customer service is a management  strategy that focuses on meeting
customer  expectations.    It  is  based  on the  concept  that  the
organization  will reach  its goals  through  satisfaction  of  the
customer.  Customer service  management will provide the organizing
and operating strategy for the 1990s.  By focusing on the needs of
both external  and internal  customers,  the  organization develops
means and mechanisms that benefit agency personnel as well as the
people they  serve in the  process.   Although  customers' service
needs  are  situation-specific,  they  can  be  generalized.    The
following list of needs is in order of importance: 1.  information
and communication, 2.  responsiveness, 3.  problem resolution, 4. on-
time,  reliable,  consistent  service delivery,  5.  competence  of
personnel, 6. accuracy, and 7. courteous and friendly service.  The
value added of a customer-service perspective as an organizational
driver and  evaluator  is  that  the focus  in on  what the  total
organization needs to serve the customer.  (ABI/INFORM)

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Putting the service back into public service.
Zemke, Ron
Training: the  Magazine of Human  Resources Development  v26  Nov,
1989, p42(8)

 Government-run agencies often must  cope with a hostile public and
enforce unpopular rules and regulations, and they  are now taking
clues from the private sector on how to improve customer service.
Examples  include:  replacing  old  facilities   with modern  ones;
rethinking work flow and forms to make life easier for customers;
and training employees  in customer  service. A  primary reason for
government  agency  overhaul   is   to renew  pride  in  government
employees.  Specific  examples of  government  agencies  applying
private  corporation  management   innovations   include:  Georgia's
General Services Administration, which has lowered costs and become
more user friendly;  the Virginia Dept of Motor Vehicles, which has
added express offices in shopping malls and included evenings and
Saturdays in  its  hours of  operation;  and the New York  Dept of
Labor, which has consolidated  all  labor-related services under one
roof.  In changing  a  government  agency,  managers should:  seek
support from top government officials as well  as middle managers;
be  selective  about  new  hires;  and  create  training  support.
(MANAGEMENT CONTENTS)


Continuous Improvement  Process: Principles and Practices  (Final
report)
Mansir,  B.  E.  ;  Schacht, N.  R.,   Logistics Management Inst.,
Bethesda, MD.
Jul 89   250p

  The  Continuous  Improvement  Process   (CIP)   is  a  means  by
which    an   organization    creates  and  sustains  a  culture  of
continuous improvement. The organization  deliberately  seeks  to
create  a  positive   and  dynamic  working  environment,  foster
teamwork, apply guantitative  methods  and  analytical  techniques,
and tap the creativity and ingenuity of all its people. Collective
effort is focused to better understand meet internal and external
customer needs and to continuously increase customer satisfaction.
Employing  CIP  in  an organization  can substantially improve the
quality  of  its services or products,  increase productivity, and
reduce costs across  a  broad   spectrum   of systems, products, and
services.  A few of the major companies that now use and proclaim
their  commitment  to  CIP-related  management  technologies  are
Phillips, Ford, Xerox,  IBM, Hewlett-Packard, Toyota, Honda, Boeing,
Chrysler, and  Texas   Instruments.  In  the  public sector, DoD has
instituted a continuous improvement  initiative  called Total Quality
Management.  These and other organizations  that are committed to  a
continuous improvement philosophy report substantial improvements
in  quality,  productivity,  throughput,  and employee  morale,  with
significant  reductions in  cost,  errors,  leadtimes,   waste, and
customer complaints.  The consensus among  CIP-oriented  companies is

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that  these   technologies   are  the  key  to  their    long-term
competitiveness and survival.  (NTIS)


Achieving the Quality Difference: Making Customers Count
(Conference proceedings)
President's Council on Management Improvement, Washington, DC.
2 Jun 89   87p
Presented at  the  Proceedings of the Annual Conference on Quality
and Productivity  Improvement  (2nd)  31 May-2 Jun 89.

  The proceedings is  a  synopsis of the second annual Conference
on  Quality   and  Productivity  Improvement   sponsored   by  the
President's Council on Management and  Budget.  Agenda  included
speakers  from government and private sector  that   addressed  12
panels   on  topics  germane   to  promoting and managing  guality
improvement with  particular emphasis on employees and customers.
Additionally,   11 working  panels reported  out on various topics.
The panels presented  practical  "How  To'   advice  in  condensed
form from people  and organizations   that   have  had  success  in
implementing quality management programs.   (NTIS)


TQ Government
McKenna, Joseph F.
Industry Week  v240n21  PP: 12-19  Nov 4, 1991

 Public  service visionaries  have  successfully introduced  total
quality management  (TQM)  ideas and  techniques into  a variety of
governmental programs.   Business and industry deserve much of the
credit for showing public agencies just how valuable TQM is.  Since
implementing   a  quality  program   4  years  ago,   the   1926th
Communications-Computer Systems  Group of the  Air  Force Logistics
Command has seen cost savings and avoidances of newly  $10 million,
and customer satisfaction is at an all-time high.   Although there
is  a  growing  interest  in  total quality  government, even  more
leaders within public  service need to press  the case for TQM among
their colleagues and the public sector they serve. (ABI/INFORM)


Standards of  Excellence:  U.S.  Residents'  Evaluations of  Local
Government Services
Miller,  Thomas I; Miller, Michelle A.
Public Administration Review  v51n6   PP: 503-514   Nov/Dec 1991

 A meta-analysis focused on service evaluations integrated from 261
citizen surveys administered to more than 215,000 people living in
US cities, counties,  and townships.   The results  of these surveys
were used to  represent the opinions of more than 40 million US
residents about quality of  local government  services or quality of
community life.    These  evaluative  surveys  indicate  generally
favorable assessments  for  local government  activities.  Of  the

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various services evaluated, fire, library,  and trash hauling tended
to receive  the highest ratings,  while transit  services,  animal
control, street repair,  and planning-zoning received  the  lowest
ratings. Proximity to a metropolitan job center, community wealth,
and education  might  be  key factors  in explaining  differences in
evaluations of services among localities.   (ABI/INFORM)


The PS  2000 Task  Force  on Service to  the  Public:  The Chairman's
Comments
Rawson, Bruce
Optimum  v21n4   PP:14-20

 The  initial  purpose of  Public Service  (PS)  2000 was  to  align
goals, procedures, and structures  in  the public service sectors of
Canada with the requirements  of the 1990s and the 21st century.
Changes in  4 major directions may profoundly affect public service:
1. how  the  public believes the government should  be  run and how
policies  should   be  developed,   2.  demographics,   3.   public
expectations for  better service and  a  more sensitive government,
and 4.  the  increase  in global  markets.   The PS 2000  task force
identified  the objectives  to  be  achieved  by  PS  2000 as  good
service, more and  better consultation,  and  better leadership.  The
Canadian  public   wants   a   modern,  competent,   hard-working,
enthusiastic public service that cares about quality.  The are
entitled to it, and that is what they will get.   (ABI/INFORM)


The Public Sector: Even Uncle Sam Is Starting to See the Light
Farrell, Christopher
Business Week Special Issue  PP: 132-137  Oct 25, 1991

 Quality is gaining adherents  in the  public arena, largely because
the federal government is laboring under a  $300-billion deficit and
state  and  local  governments  are  $40  billion or  more  in  debt.
Quality may be one of the best ways to deliver better services more
cost-effectively.    In  general,  improving quality  in government
services involves the same steps  as in  the private  sector.   An
emphasis on quality  and  productivity  should result  in a  more
flexible, more citizen-oriented bureaucracy.   Quality  can  have
vastly different  meanings  to  various public sector constituents.
The sheer size of the task of  applying quality  to government is
daunting.  A great deal  of effort is being  aimed at discovering how
to measure  quality in the public sector. However, some  of the most
effective ways  to improve quality in  the  corporate  world arouse
suspicion  when  applied  to  government,   since  may  voters  are
understandably  ambivalent  about  providing  public  agencies  and
employees with decentralizing power.   (ABI/INFORM)

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The Formula for Success in TQM
Glenn, Tom
Bureaucrat  v20nl  PP: 17-20  Spring 1991

 Customer focus, leadership, teams,  and  tools  can be combined to
equal total quality management  (TQM).   In TQM,  the word customer
has  taken on  a  new meaning:  the  beneficiaries of  government
bureaucrats'  work.    When transformation  of the organizational
culture is being considered,  continuous improvement efforts should
be aimed  at  quality as defined by  the  organization's customers.
Once it is known what the  customers  want  and the gap between their
requirements   and   performance   is  understood,  then   quality
improvement teams  can be created to start the process.   Before
teams  can  be   effective,   they   need   training,  facilitation,
leadership,  and support.    Support from  a  quality council  is
decisive  in  the success  of  quality improvement  teams.   Skilled
management,  as well  as  leadership,  will  make  the  difference.
Support begins with a well-crafted charter  consisting of a problem
statement and a mission statement.  (ABI/INFORM)


Phase 2: Plan for Improvement 1991-1992. Focus on Our Customer
Postal Service, Washington, DC.
1990   21p

 Second phase of the plan  of  the Procurement and Supply Department
(P&SD), U.S. Postal  Service,  for  organizational improvement.  The
focus  of  Phase I  was  strengthening  procurement  and  material
management functions;  Phase II will focus, on  Postal  customers.
Contents include: a review of Phase I; definition of P&SD customer;
and  a description  of Phase  II,  -  the  structure  of the  plan,
responsiveness, service quality, and value added.  (NTIS)


How  to  Develop Quality  Measures  That  Are Useful in  Day-to-Day
Measurement
Office of Management and Budget, Washington,  DC.
Jan 89   53p

  The  report  contains  a  paper prepared by staff of the Federal
Quality and  Productivity   Improvement  Program  in the Office of
Management and  Budget to  provide    information   on   constructing
useful    quality  measures.  The  paper   describes   step-by-step
methods that  can be used, and provides examples of  quality measures
that are being used in both private and public sectors.
(NTIS)

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//. GETTING TO KNOW THE CUSTOMER
Customer Profiling: Getting into Your Customer's Shoes
Whittle, Susan; Foster, Morris
International Journal of Bank Marketing v9nl PP: 17-24 1991

 It has been argued that managing the quality of service requires
a fundamentally  different  approach from managing  the quality of
manufacturing  products.  The  customer profile  model  offers  the
service planners and providers a way to visualize the services they
offer as a journey taken by customers through their organization.
Customers, in making contact with most service organizations,  can
typically  be  profiled  along  6 contact  stages:   1.   search,  2.
arrival, 3. precontact, 4.  contact, 5. withdrawal, and 6. follow-
up.  By  thinking about  service  from the  customer's  perspective,
attention  is  directed to  those  aspects  of  the service  that
customers  evaluate.  Reports should   be  logical,  well-reasoned
documents  that present  the  readers with all  the  facts needed to
make necessary decisions or form opinions on a topic. Reports are
normally  written from  an  impersonal  viewpoint,   essentially to
detract from  the writer's  personality and  to  focus  the reader's
attention  on the material.  (ABI/INFORM)


Understanding Customer Expectations of Service
Parasuraman, A.; Berry, Leonard L.; Zeithaml, Valarie A.
Sloan Management Review v32n3 PP: 39-48 Spring 1991

 To understand the  nature of customers'  service expectations and
identify  the  factors  that   influence the  formation  of  these
expectations, focus group interviews were conducted with customers
in 6 service sectors.  Eight of the focus group interviews were with
business customers, and 8 were with consumers. Minimal differences
were found between the 2 groups.  Customers  expect service companies
to do what they  are supposed to do, and they expect performance,
not empty promises.  One key influence on customers'  expectations is
price. Many customers believe that, the more they pay, the better
the service  should be, although they  do  not believe  that  a low
price is  a legitimate excuse for  poor service.  Customer service
expectations  can  be  categorized  into  5  overall  dimensions:
reliability, tangibles,  responsiveness, assurance,  and empathy. The
findings  suggest  that  customers'  service  expectations have  2
levels:  desired  and  adequate.  Many  customers  want  ongoing,
personalized relationships with the same representatives.
(ABI/INFORM)

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Measuring Service Productivity
Coates,  Robert
Small Business Reports v!6n3 PP: 22-25 Mar 1991

 In  the  area of  customer service, there  needs  to be  a balance
between the number of customers served and the time spent with each
customer. There  also  has to be an understanding  that time spent
with customers to solve their problems with a first call will, in
the end,  save time. When the measurement and management focus is on
the  number  of calls answered or  the  average time  of a customer
interaction, the  focus is on  activity rather than outcome. There
must be  an  equal and balancing focus on  the  quality  of customer
contacts and the outcomes they produce.  The goal  is to produce
customer  satisfaction.   Regardless of  the  type   of  measurement
program,  the quality measures  should receive  at least  as  much
attention as the quantity measures. Perhaps the most powerful way
to shift the emphasis from activity to outcome is to train people
in good customer service skills. If a company's concern is to
create a satisfied  customer,  the  key concern  becomes  not  how
quickly one can move the customer through the system,  but whether
the customer is satisfied at the end of the call.   (ABI/INFORM)


Defining and Measuring the Quality of Customer Service
Lewis, Barbara R.; Mitchell, Vincent W.
Marketing Intelligence & Planning v8n6 PP: 11-17 1990

 The  role  of  service  quality  as  an  indicator  of  customer
satisfaction  and  organizational  performance   is   now  widely
acknowledged. Many suggested definitions of service quality focus
on meeting customer needs and requirements. Parasuraman, Zeithaml,
and Berry (1988)  developed SERVQUAL, a concise multiple-item scale
that can be used to  understand better service expectations  and
consumer perceptions.  It  can be used to look at trends  over time or
compare  branches or  outlets within  an  organization.  A  firm's
customers  can  be  categorized  into  several  perceived-quality
segments on the basis of their individual SERVQUAL scores. Problems
with SERVQUAL include: 1. the treatment of all items in the scale
as equally  important,  2.  half of  the  statement being negatively
worded,  3.  the  restriction of consumers'  responses to  a 7-point
scale,  and  4.   the  adjectives  used  in  SERVQUAL  statements.
Researchers  might  consider  the  use   of  a  bipolar  semantic
differential graphic  scale to overcome the  problems  highlighted
with the SERVQUAL measurement tool. (ABI/INFORM)


Customer Expectations: First the Basics,  Please
Anonymous
Training v28nlO  PP: 12,  14 Oct 1991

 When it comes to service quality, most  customers  just  want  the
basics,  according to a study published by Sloan Management Review.

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Researchers from Texas A&M University and Duke University concluded
that  customers  expect  service  companies  to  do  what they  are
supposed  to do.  They expect  fundamentals,  not  fanciness,  and
performance, not  empty  promises.  The  researchers identified  5
dimensions of service as:  1. reliability,  the ability to perform
the promised service dependably and accurately, 2. tangibles, such
as  the  physical   appearance   of facilities  and  personnel,  3.
responsiveness,  4.  assurance,  and 5.  empathy.  According  to the
study,  reliability  is the most important dimension  in  meeting
customer expectations. (ABI/INFORM)


A  longitudinal  analysis  of the impact  of  service   changes  on
customer attitudes.
Bolton, Ruth N.; Drew, James H.
Journal of Marketing v55 Jan,  1991,  pi(9)

 Customers' attitudes toward service  quality are affected by their
perceptions of  changes in  customer  service.  Consumers' attitudes
were measured by  surveying 119 customers  of  a  telephone company
about the  overall  quality  of  all of the company's services. The
results indicated that the customers were  affected by changes in
service performance, but the changes  in perceptions were evident
only in the long run. This implies  that organizations should not
expect  immediate changes  in customers' attitudes  when they make
changes in  services.  Customers'  attitudes  were  more dependent on
perceptions of  performance and disconfirmation  while  the service
changes were occurring.  (MANAGEMENT CONTENTS)


The  service  encounter:   diagnosing  favorable  and  unfavorable
incidents.
Bitner,  Mary  Jo;   Booms,   Bernard H. ;  Tetreault,  Mary Stanfield
Journal of Marketing v54- Jan,  1990,  p71(14)

 Seven  hundred  important  service  encounters  from customers  of
restaurants, hotels, and airlines were collected and analyzed using
the critical incident methodology to determine the crucial events
and connected behaviors  of service  industry employees which make
customers differentiate very positive service  encounters from very
negative service encounters. Implications  for future research are
also described.  (MANAGEMENT CONTENTS)


Are you customer-driven or driving them to distraction?
Magrath, Allan
Marketing News v24 Dec 24, 1990, p8(l)

 Companies  should  conduct a  six-point   customer-handling  self
diagnosis to determine if they  are fulfilling  the requirements for
providing  effective customer  service.  The areas  that should be
covered  in  the diagnosis include  the extent that  functional

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boundaries overlap; internal financial controls that inhibit staff
ability to  aid customers; and the  information employees need to
help customers.  (MANAGEMENT CONTENTS)


Customer-service perceptions and reality
Becker, Wendy S.; Wellins, Richard S.
Training & Development Journal  v44 March, 1990, p. 49(3)

 A survey of 1,300 customers located in various  countries  including
the  US,  UK,  and Canada,  and  a survey  of 900  customer service
workers in nine businesses reveals information about the importance
of  customer  service.    The research project  was conducted to
determine  the  job  behaviors  reguired  for successful  customer
service from the customer and service-worker viewpoints,  to assess
how well  the necessary job behaviors  are  performed  according to
customers  and  service  workers,  and  to  analyze  the impact of
customer  service on  behavior.   Research results indicate   that
customers and service  workers have different views on necessary job
behaviors and how well those behaviors are performed.  Results  also
indicate that  customer  service is vital  to  business  success and
that it is  important  for firms  to  monitor how well their service
workers perform. (MANAGEMENT CONTENTS)


Learn to heed your master's voice.
Band, William
Marketing News v25 Jan 7,  1991, p46(l)

 A  slowing  economic  environment  increases  the  necessity  of
listening  effectively  to customers.  Companies  often   focus on
increasing competitiveness when market growth slows,  but do so at
the risk of losing  touch with customers. The methods for enhancing
effective listening include setting up customer councils comprised
of  representatives  of  key customers  to  solicit  feedback  about
products  and services,  arranging  direct  customer contact  with
senior management so managers can learn first-hand about customer
needs,   and  open discussion  sessions  between  employees  and  top
executives.  (MANAGEMENT CONTENTS)


Why Bash Your Customer?
Brown,  Tom
Industry Week v240n!7 PP: 28 Sep 2, 1991

 Managers must become  customer-centric. They must work at changing
their company-centric  focus that places emphasis on making employee
work  lives  easier,   creating  more   comfortable  facilities  and
schedules, and inventing new  products  whether anyone needs them or
not. Instead, managers must start  to  ask  how  customers  can  use a
product, obtain  it, apply it, and  purchase it. Texas  Instruments
(TI) has learned this  lesson. When  it  launched Project Easy in the

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mid-1980s, top managers  demanded that TI employees  find ways to
make the  customer's  life easier. One invention  that was created
with the customer in mind  is VCR Plus,  a $60 remote-control unit
developed by Henry Yuen and Daniel Kwoh that simplifies controlling
a videocassette recorder.  (ABI/INFORM)
                                10

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///. THE INTERNAL CUSTOMER
Nurturing the Teamwork Culture:  Internal Customer Service
Pastor, Joan; Gechtman, Risa
Supervisory Management  v36n4  PP: 10  Apr 1991

 Company  employees who internalize company goals and who support
one another strongly contribute to the success  of an organization.
To create  a  healthy team in any organization,  it is important to
cultivate  a  team   that thinks  of fellow workers  as customers.
Employees who are willing  to  give  more and who do what is best
for the team find out that what  they do  for fellow workers comes
back to them. This practice  is called  internal customer  service.
Departments  must work  at satisfying  the  requirements  of  other
departments before the ultimate  goal  of satisfying the external
customer can occur.   The responsibility  for keeping in touch with
one's  internal    customers   lies   with  the individuals  of a
department, and a supervisor can foster  this sharing of time and
information.  When a department establishes relations with another,
the supervisor is responsible  for  ensuring  that everyone  keeps
the  commitments made to internal customers.  (ABI/INFORM)


8 ideas to stimulate internal service.
Sanfilippo, Barbara
Bank Marketing  v22 Dec, 1990, p26(4)

 Banks   can  improve   customer  service by  improving internal
service  and  teamwork.    The   quality   of services  provided  by
support  and  administrative  personnel is  critical to  providing
high-quality customer service. Banks can take  several  steps  to
improve  internal  service,  including  evaluating  the  internal
business  environment,   involving  support personnel in marketing
plans,  allowing  workers   to  rate the service provided by other
employees, conducting  marketing meetings  with bank ranches, and
awarding certificates to employees who meet service standards.
(MANAGEMENT CONTENTS)


Internal   Service  Operations:   Strategies  for Increasing  Their
Effectiveness and Controlling Their Cost
Davis, Tim R. V.
Organizational  Dynamics  v20n2  PP:  5-22  Autumn 1991

 Many  service  and  support  functions  fail  their most obvious
customers  - the other departments in the  company.  Improving the
efficiency of internal-customer support can produce long-term cost
savings and  enhance  overall   service  quality.  Most  departments
have a captive market for their services,  hence  there is little
incentive to try harder.  The sheer number of   internal   service


                               11

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functions  can  create  a  logistics  nightmare.  Often,  departments
within  an  organization are linked closely by routinized work that
flows   between   them.  A  useful   way to clarify shared tasks
between contiguous   departments  in a workflow  is to develop  a
responsibility  chart.    Managers  and  members  of  interfacing
departments meet to clarify troublesome shared  responsibilities.
Process    management    examines    all  activities  in  sequence,
including  what  precedes  and  what   follows  each activity in a
workflow.   Many  companies  should consider  phasing  out at least
part of certain  internal  support functions and  contracting with
outside suppliers.   (ABI/INFORM)


Satisfy Your Internal Customers
Pfau, Bruce; Detzel, Denis; Geller,  Andrew
Journal of Business Strategy  v!2n6   PP: 9-13   Nov/Dec 1991

 Striving  for  customer  satisfaction has traditionally been the
keystone  of  success  in business. A company's ability to meet its
external customer needs depends directly on how well it satisfies
the needs of its internal  customers. A growing number of companies
are implementing service and   quality  improvement programs  that
enhance  their   own  employees' knowledge  and  skills,  boosting
internal customer satisfaction and loyalty.  Companies   can  begin
to  adopt an internal  service  focus  by helping their employees  in
internal-supplier functions identify just  who their customers are.
A   pilot  study conducted  by  the Hay  Group in  1991  highlighted
several areas    that    seem    critical    to   quality   internal
service, such as having well-defined  lines   of   accountability
and  authority.  Some companies may choose  to  revise  and  revamp
the  structures  and functions  of  the entire organization     to
truly      reflect    and   encourage    an   internal    customer
orientation.  (ABI/INFORM)


Keeping the Customer Satisfied - Inside and out
Feldman, Stuart
Management   Review  vSOnll  PP:   58-60  Nov   1991

 According to Harold Pharr of Van Leer Flexibles, unless internal
customer relationships  exist,  employees  do  not  understand  the
importance of what   they do and how  what they do affects others in
the chain  of service. To   achieve empowerment,  companies build a
foundation  of  open  communication  through   which    an  internal
supplier can  clearly  establish the requirements  of the internal
customer.   Successful  internal  customer  strategies are  often an
integral  part  of   larger total  quality management initiatives.
Jeff Fierstein  of  FHP  Health  Care  recommends  measuring  the
effects of an internal  customer strategy  by observing the changes
in people's philosophy and values.  (ABI/INFORM)
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Improving White Collar Productivity Can Enhance Profitability
Bhote, Keki R.
Corporate Controller  v3n5  PP: 39-46  May/Jun 1991

 While US manufacturing is finally making progress in the quality
arena,  quality  is virtually  ignored  among  the services  that
support  manufacturing,    such   as   marketing and  personnel.  An
Illinois  Institute of Technology   study  found  that blue-collar
productivity  has  been consistently  above   80%  and  rising,  but
white-collar  productivity  has   been  below  40%  and  falling.
White-collar  productivity  is important because, through greater
customer  and  employee  satisfaction, companies can improve their
profits,  return   on   investment,   and   market   share.  The Next
Operation As  Customer (NOAC)   technique   can   improve  quality,
cost,  and  cycle  time   in  any white-collar  operation.  NOAC's
basic  principles  are:  1.  The  internal customer is  a  prince.
2.  All  work can  be  considered  a  process. 3. Effectiveness  is
measured   through the  internal  customer's  evaluation.  4.  The
consequences   of   meeting   or   not   meeting   the   internal
customer's requirements include commensurate rewards or penalties.
(ABI/INFORM)


Coming to Grips with Service Intangibles Using Quality Management
Techniques
Ballantyne, David
Marketing Intelligence &  Planning v8n6 PP:  4-10 1990

 The  goal of quality management  is  to narrow  the  quality  gap
between what  customers expect and what they  experience. A structure
for planning  and  introducing  the types of  internal  changes that
need to be made to  build a loyal customer base can  be found through
quality management. The value a firm creates for its customers is
a function of the alignment it can achieve between  the firm's value
chain and the customer's value chain. Minimizing blockages in the
workflow really starts upstream in the value chain, at the service
design stage. Flowcharting has proven potential  for designing-in
value for customers of a kind that exceeds the cost to the company.
The  idea of  internal  customers   and  internal  suppliers  follows
naturally from an examination of flowcharting techniques. Examining
the value chain shows how service processes are  linked  and that
there are opportunities for the examination of these linkages with
a view to quality improvement.  (ABI/INFORM)


The Customer Within
Lee, Chris
Training  v28n7   PP: 21-26  Jul 1991

 Total quality management focuses  on the internal customer as well
as  the external. The  needs of employees must be met so that they,
in  turn,  can   provide    excellent    service   for  the  external

                               13

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customer. At  Westinghouse Electric   Corp.,    for   example,  the
internal customer-supplier approach has proven   to  be a powerful
catalyst for corporate quality improvement efforts that  began  a
decade   ago,   according   to  Carl Arendt  of  the  Westinghouse
Productivity  and  Quality Center. He says that the most profound
effect  is  an  attitude  change.  The first  steps in  the quality
process are to identify the  customers  and  to  meet  with  them.
A  support  function,  such as  a management   information   systems
department,  might  want   to   establish service-level   agreements
with  internal  customers.  Whether  agreements between  internal
customers and suppliers are  formal  or  informal,  advocates of the
approach agree that  the process for reaching them  must be flexible.
(ABI/INFORM)


Don't Take Internal Customers for Granted
Milite, George
Supervisory Management  v36n7  PP: 9  Jul 1991

 Too  many  supervisors  neglect  a  key  component of managerial
success   -  their internal customers. The other  departments in a
company are just  as  important   as  outside suppliers and buyers.
The more  supervisors  understand   internal   customers,  the better
they will be  able to  meet their needs.  To   help  develop  this
understanding, supervisors  should:  1.  avoid  jargon,    2.   watch
their  priorities,  3.  define responsibilities  clearly,  4.  keep
communications  open, and 5. keep quality consistent. Ultimately,
how well  a  department  performs  depends on how well the rest of
the company performs.  (ABI/INFORM)


Speeding the Way  to Total Quality
Dodson, Robert L.
Training & Development  v45n6  PP: 35-42  Jun 1991

 Internal  customer   satisfaction  is  the key to a total quality
commitment. Companies must  acknowledge that  an essential task of
management is  to satisfy employees  to  the  point required  to
engender  positive  attitudes.    The   standard   barometers   of
employee    satisfaction,    such  as turnover,    complaints,  and
absenteeism, are  either too blunt or too  late to be  of  use.  A
better  way  to   measure  internal customer satisfaction  is through
a detailed survey or internal quality audit. Installing an internal
quality   audit    begins   with   the formation of  a project team
composed of a cross-section  of  managers  from  the  top levels of
the firm  to  the  first line.   The team's  charter is to design and
implement the audit.  The results of  the initial audit can be a
bitter  pill for  managers  and a  critical test of  the  idea that
problems are opportunities. However, accepting the results  of  the
audit  as  a  baseline for improvement  and responding with visible
actions has implications throughout the organization.  (ABI/INFORM)
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Now Quality Means Service Too
Rose, Frank
Fortune  v!23n8  PP:  97-111  Apr 22,  1991

 After  being  viewed as a manufacturing problem  for most  of the
past  decade,  quality has become a service issue. The idea is total
quality management   (TQM)   in the offering itself and in all the
services that come with  it. Poor service has become an  issue for
managers for the same reason  shoddy  goods  did:  competition.  If
product  quality  is essentially the same across   the    industry,
service    becomes  the  distinguishing  factor.  Because service
quality  can  be  gauged  only by   customer satisfaction, TQM has
redefined  quality   as  "what  feels right to the customer." The
TQM  effort depends on a willingness  to  see  the  world  from the
customer's point of view and  an eagerness  to move  swiftly.  Within
any company, TQM theory holds, is  a   whole   chain  of   internal
customers, culminating with the person at the cash register. The
trick  is  to  get everyone  working  together  while  keeping this
ultimate customer in  focus.   (ABI/INFORM)


The customer.
Lee, Chris
Training  v28 July, 1991, p21(6)

 Each  division,  department,   and  even employee  in a company  is
but one part  of  a   whole,  each   connected  to   the  other in a
supplier-customer relationship. Firms can  make significant  and
lasting    improvements  in   quality  and .customer  service   by
concentrating on the  weakest  links  in these internal connections
and taking steps to strengthen them. Determining which links need
improvement  begins   with  looking  at  the   needs of external
customers,    then     working    backwards  through the  internal
supplier-customer relationships.  Management  must  first  identify
their internal customers, determine  their specific needs,  then take
action.  (MANAGEMENT  CONTENTS)


Customer satisfaction: a five-star  rating.
Foxman, Loretta D.; Polsky, Walter  L.
Personnel Journal  v70 June, 1991, p27(2)

 Companies  can   take   steps to develop  an  excellent personnel
department within an  organization that provides superior service
to internal customers. The steps that human resources managers can
take to improve internal  customer  service to  employees  include
gaining  the necessary knowledge  about personnel issues,  ensuring
that the organization has hired an adequate number  of workers, and
viewing the work environment  from  the perspective of  employees.
Companies that provide high-quality service to internal customers
can gain a competitive advantage in the marketplace.   (MANAGEMENT
CONTENTS)

                               15

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Satisfying the internal customer.
Gulledge, Larry G.
Bank Marketing  v23 April, 1991, p46(3)

 Most  banks  evaluate  the   satisfaction of external customers,
but many  ignore   the   measurement   of   the   satisfaction   of
internal customers,  or employees.   Employees'   performance   is
affected by their  satisfaction with  other employees,    vendors,
and  internal  resources.   Interviews  with front-line  employees
about their satisfaction with internal  resources can  focus   on
several  factors,    including    availability,    cooperativeness,
timeliness, professionalism,  and  quality.  The  steps  to take when
weaknesses  are  exposed  include  training employees,  motivating
employees,   communicating  with    employees,   reorganizing   the
bank's   structure  and   systems,   and  redesigning  products and
services.   (MANAGEMENT CONTENTS)


Horizontal management.
Denton, D.  Keith
SAM Advanced Management Journal  v56 Wntr, 1991, p35(7)

 More  businesses  are  beginning to use horizontal management to
improve  service   and  competitiveness.   Horizontal   management
emphasizes  both   internal  and  external    customers.     The
implementation  of  horizontal  management involves  thinking  of
the  next   operation   as   a   customer.  The steps in implementing
horizontal   management  include  determining  which products  and
services to provide,  determining what  is  needed  from suppliers,
identifying ways   to   improve   customer  service,   and  defining
how work  is done.  The horizontal   management approach  used by
Metropolitan Life Insurance Co (MET  Life)   can  be used as a model
for other   businesses.  MET Life's  approach is  based   on   the
commitment    of  management,  the  involvement  of  employees,  an
understanding   of   internal  suppliers  and  customers,  product
champions,   and quality improvement groups.   (MANAGEMENT CONTENTS)


From total  chaos to total quality.
Sutton, John R.
Industrial  Engineering  v22 Sept, 1990,  p!8(2)

 A  growing  company  can  often  stop  focusing  on  its  customer
when undergoing  expansion  and  reorganization  and  attempts to
systemize.   The  external customers of an  organization  are  easy
to    identify,   however  internal    customers,  or  departmental
employees,  are also 'customers.'  It is important  that  both types
of   customers  be served  with   "Total  Quality.'  Total   Quality
involves  serving  external  and  internal customers' needs before
thinking  about  quantity,  schedules  or other factors. By placing
quality   needs   first,  the  company will eventually  see better
sales,  higher profits   and   lower  costs.  Management  must set

                                16

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objectives in order to reach Total Quality.  (MANAGEMENT CONTENTS)


Internal service: solving problems.
Plymire, Jerry
Supervisory Management  v35 May, 1990, p5(l)

 The    promotion    of    internal   service   quality   requires
harmony  of operations,  which   managers  can  foster by enlisting
employees  in  a  process  in  which   they  negotiate  needs.  Key
interdepartmental  transactions,  in  which one  group  is  serving
another, must be identified and prioritized through an assessment
process.  Once   the  list  of  prioritized  transactions has been
collected,  representative  employees  from  each  department  are
brought together   in   a  meeting  led  by a facilitator in which
the customer  group defines   its  needs   and the  service group
examines  its  ability to meet the internal   customers'   needs.
During the process, a measurable set of needs will be negotiated.
The role  of  the facilitator will maintain harmony  and a process
orientation.   A follow-up meeting should be held in thirty days to
see how perceptions conform to expectations.  (MANAGEMENT CONTENTS)


A wider definition of who's a customer.
Harris, Kim S.
Bank Marketing  v22 March,  1990, p!8(2)

 Provident  Bank  of  Maryland,   which  has  38  branches  in the
greater Baltimore  area, has developed effective service programs
which  address the  needs   of   both   external    and   internal
customers. The bank developed its programs  after surveying 1,000
people who live  in Baltimore and conducting 16  focus groups for
bank employees. Service quality  programs developed as  a result  of
research  speeded  up loan processing  by streamlining procedures,
encouraged customer  feedback  by providing a quarterly newsletter
through which  customers  can  contact  the bank's  president, and
fostered worker commitment   by   rewarding  bank   employees  who
provide excellent customer service.    (MANAGEMENT CONTENTS)


Down with the internal customer.
Guaspari, John
Across the Board v28 Sept,  1991, pll(3)

 Many  organizations  have adopted the  internal customer concept,
which  proposes  that  employees  treat each  other   like  'real1
customers, thereby  giving  them  high-quality service  to  get jobs
done.  This concept, however,  has several drawbacks.  These include
the possible  emergence  of dominance-subservience  relationships
among  employees,  and  the  lowering  of the  quality  of  customer
service  because   the  word   'customer'   has   lost   its  special
connotation.  The concept  also raises the question  of who will serve

                                17

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whom  and  why.  The  relationship  between  co-workers  and  the
relationship between a customer and a supplier are similar, but
they  are  not  the  same.  There  is a  need for  a  new  model  that
correctly identifies who the 'real' customers are.
(MANAGEMENT CONTENTS)


Quality and service for internal customers.
McDermott, Lynda C.; Emerson,  Michael
Training & Development Journal v45 Jan, 1991, p61(4)

 Organizations  must  develop  an  internal   customer   service
orientation among their employees before they can provide quality
and  service  to external  customers.  Employees  cannot  satisfy
external  customers unless they are  treated well  by their  own
companies. Employee  relationships  can be  improved in  many ways,
including  establishing an  internal  customer  service  strategy,
creating  an  internal  marketing   plan,  providing  interpersonal
relations   training,   developing   performance    standards,   and
conducting brainstorming meetings. (MANAGEMENT CONTENTS)
                                18

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W. DEVELOPING A CUSTOMER SERVICE PLAN
Total Quality Service
Albrecht, Karl
Executive Excellence v8n7 PP: 18-19 Jul 1991

 Total  quality  service   (TQS)   is   a  family  of  interrelated
methodologies  for  assessing,   defining,  and  improving  service
quality. The 5 key  methodology  menus  involved  in the TQS process
are:  1.  assessment,  measurement, and feedback,  2. market  and
customer research, 3. strategy formulation, 4. education, training,
and  communication,   and  5.  process   improvement.   The  5  major
components  of  the  TQS process  work  together to  build  service
quality.  The appropriate  starting point for  the  process,  the
appropriate sequence of activities, and the appropriate choice of
methods all depend heavily on the organization's  current state and
the orientation of the executives who lead it.  The key to success
in applying TQS is in the  choice of the program strategy, which is
the unique  way  of putting together the  elements of methodology,
resources,  timing,  and  sequencing of  actions that go together to
create a successful program. (ABI/INFORM)
                                                        *«.

A total-quality approach to customer service.
Foster, Morris; Whittle, Susan; Smith, Stuart
Training &  Development Journal v43 Dec, 1989,  p55(5)

 Most  firms recognize  the importance  of  providing good customer
service  and make efforts  to  train employees  to achieve  service
skills.  However,  successful  results  may  not be  achieved because
corporate cultures are not altered to parallel  efforts in improved
service. The UK-based Total Quality Service (TQS)  approach provides
a system which enables corporations to develop quality throughout
entire  organizations.  TQS  is  based  on  four  strategies:  making
management  leaders involved in TQS; designing and structuring the
program  to  sustain  it at service  delivery   levels;  connecting
management  support   services;   and connecting  customer-handling
training with TQS concepts. The TQS can be implemented via a series
of workshops, some which focus on profiling customers. (MANAGEMENT
CONTENTS)


Putting Service Quality into Gear
Horovitz, Jacques; Cudennec-Poon, Chan
Quality Progress v24nl PP: 54-58 Jan 1991

 For any company to provide consistently good service quality, it
has to  commit  itself to incorporating 5  key efforts.  First,  the
company must make sure  that  its staff  has a common definition of
service quality.  Second, the company must make sure the customer is


                                19

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the main priority throughout the organization.  The customer must be
the prime focus of all work  and  efforts.  Third,  the company must
look after  the front-line staff so they  can happily  serve the
customer. This  means treating  them well,  caring  for  them,  and
alleviating the pressure of being constantly exposed to the public,
the  irate  or  tired  client,   and the  unexpected questioner.  If
something goes wrong, the  front-line people  take the blame even if
they are not at  fault. Fourth, the company must make sure that what
it communicates to its  customers is consistent  with  its service
quality level. Fifth, management's actions and behaviors must show
commitment  to service quality.  How middle management  leads the
staff in daily work will make the difference.  (ABI/INFORM)


Managing Quality in a Service Business
Williamson,  Shelli
Hospital Materiel Management  Quarterly v!2n3 PP:  6-10 Feb 1991

 Some common  sense rules  are more  important  in  providing  health
care services than in other,  more straightforward businesses. The
first rule is to focus on the customer. Positive experiences with
services  and results are the  most powerful  marketing tools  a
service business can  have. Top management leadership is essential.
The service  needs to be developed by  establishing a decision-making
process that is fact  based, bottom up,  and top down. Total employee
involvement  is necessary to  begin  the process  of  continuous
improvement.  Major improvements  in efficiency and  effectiveness
will come   from  eliminating  opinions  and  using  facts  to  drive
consensus   and   commitment.   With   the  pressures   of  today's
marketplace,  cost and quality must  go  hand  in hand.  The ultimate
customers, the patients and payers,  are no longer willing or able
to sacrifice one over the other. The  constant improvement of health
care  services  makes   it  possible   to  achieve   these  goals.
(ABI/INFORM)


The  common   thread:  connecting  functions  to create  a  service
culture.
Pollen, Ellen
Employment Relations Today v!8 Summer, 1991, p229(6)

 Customer service is the key to becoming successful in the 1990s,
and organizations should  take  steps to create a  service culture.
The way to create a service culture  is  to integrate the individual
functions of  the organization. The success of a corporate service
policy is based on the corporate mission statement. Management must
take into consideration  customers' needs when developing a service
policy.  The  elements in a service  culture  include  selecting the
right employees, developing a reward system, and creating training
programs. (MANAGEMENT CONTENTS)
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Do it  right the  first time; you  may not  get a  second chance.
Graham, John R.
Marketing News v25 August 19, 1991, p!2(2)

 A tight economy, competition, and demanding customers require that
companies  address  the  issues  of  customer  service and product
quality  correctly  the first time  because  they may not  be given
another  opportunity.  The  steps  that companies can  take  to do it
right the first time include providing customers with a good value,
recognizing that  customers  are  important,  and taking  customers
seriously.  (MANAGEMENT CONTENTS)


Hitting the long ball for the customer.
Stum, David L.; Church Ronald P.
Training & Development Journal v44 March, 1990, p44(5)

 Many  firms  are  interested  in  improving their customer service
because  research has  revealed that poor  customer  satisfaction is
why consumers  switch to competing businesses. One way companies can
evaluate  their customer service efforts  is by using  a  baseball
diamond  model  which  provides  a  way   to  analyze   an  entire
organization at all levels.  At first base, the model suggests that
skilled  service employees should  learn to  project a professional
image through  appearance, attend to customers  with positive body
language,  and  acknowledge  customers' needs. At second  base,  the
model  suggests that  managers should set and  enforce  performance
standards,  conduct  informal training,  and manage and improve
service   environments.   Third  base  focuses   on  the   service
environment, while home base focuses on an organization's policies
and procedures which  help to enhance a customer service-centered
business.  (MANAGEMENT CONTENTS)


Competitive confrontation in consumer services.
Allen, Michael G.
Planning Review (a publication of the Planning Forum) v!7 Jan-Feb,
1989 , p4(7)

 Service  industries   are  increasingly  feeling the pressure  of
competition  and  are  emphasizing  customer  service to  increase
profitability  in a segmented marketplace.  Service industries are
unique because their  profitability depends  on  how well marketing
improves the utilization of  services. Companies such as McDonald's
and American Express are well known for  providing excellent service
because  they  follow  some  of the  four suggested  strategies  for
success,  including  nurturing a  distinctive service identity and
developing a niche to achieve competitive superiority.  Successful
companies  also focus  on operational  achievement  by  using  the
correct distribution channels; developing a strong  service culture;
and using service contracts. (MANAGEMENT CONTENTS)
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Coming: the customer service decade.
Davidow, William H.; Uttal, Bro
Across the Board v26 Nov, 1989, p33(5)

 Corporations  are  focused  on  earning profits,  but  firms  which
emphasize  only financial  end  results  may  inadvertently  ignore
customer  service,  which many  experts  predict  will be  the  most
effective  competitive  weapon   in   the  coming  decade.  Research
conducted by the Strategic  Planning  Institute which examined 2,600
firms indicates that quality of services and products is the single
most important  factor affecting  overall performance in the long-
run. Other research examining  businesses  indicate that excellent
service help firms save  money because firms  do not have to replace
lost  customers.  Additionally,  superior  customer  service  can
generate  concrete  financial  savings  over  time,   related  to
developing positive customer expectations.  (MANAGEMENT CONTENTS)


Why customer focus strategies often fail.
Whiteley, Richard C.
Journal of Business Strategy v!2 Sept-Oct, 1991, p34(4)

 Potential performance pitfalls  in  the  implementation of quality
improvement programs are averted when management  assumes greater
active participation in the quality-focused promotion of customer
services. Quality strategies may be sabotaged through  false starts;
the misalignment  of products  to customer needs;  bias for action
instead  of  fine-tuning  the planning and  checking phases  of the
process; a lax attitude  toward  quality as  a  result of a profitable
status for business; overnight remedies to quality problems;  non-
involvement of management in the actual improvement process;  poor
time management with regards  to the  acquisition  of conceptual
knowledge  for  quality  improvement strategies;  poor  selection of
quality managers; and tradeoffs against quality. Implementation of
the quality  program would  depend  chiefly  on  the organizational
leader's skills, beliefs, and attitudes.   (MANAGEMENT CONTENTS)


Mistakes that service companies make in quality improvement.
Berry,  Leonard L.
Bank Marketing v23 April, 1991, p68(2)

 Firms in  the  service  industries make many common  mistakes  when
attempting  to  improve   quality. One  mistake  is  that  service
companies  fail  to  use  employee  research  in the service research
process. The issues that employee research should consider include
the biggest problem encountered every day when providing service to
customers, and  the primary change to make  in  improving service.
Another  mistake is investing  funds to  improve  quality without
developing  a  multi-faceted,   company-wide,  continuous  quality-
improvement process. Another mistake is the failure to respond to
customers'  problems.  Companies  should   encourage  customers  to

                               22

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complain about poor service by giving employees authority to solve
problems, and investing in communication systems that support the
problem-solving process. (MANAGEMENT CONTENTS)


Service recovery: doing it right the second time.
Zemke, Ron; Bell, Chip
Training: the Magazine  of Human Resources  Development  v27 June,
1990, p42(7)

 Organizations respond in different ways to complaints,  but those
firms which have taken  the  time  to plan how they will respond to
customer complaints are more likely to maintain customer support.
Studies by Technical Assistance Research Programs Inc indicate that
customers who have complaints and are responded to in satisfactory
ways  are  more likely to  purchase  more products  from businesses
compared  to  customers  who  have  not   experienced  difficulties.
Additional   research   studies   indicate   that   consumers  have
expectations about how  they  want firms  to respond to complaints:
they want to receive an apology; the want to be offered a way to
remedy problems; and they want to be treated  in ways that indicate
a firm cares about them. (MANAGEMENT CONTENTS)


Keeping disaffected customers.
Koehler, Kenneth G.
CMA - the Management Accounting Magazine v65 Sept, 1991, p7(l)

  Customer complaints should receive as much attention as new and
often costly marketing  campaigns because  keeping costumers is as
important as attracting new ones.  High-quality complaint processing
can help firms retain clients, enhance their loyalty, and improve
the   company's   image.   Employees  with   good  listening   and
communication skills may be chosen and trained to handle this
job. The  steps  in dealing with  customers  include being familiar
with the complaint process,  and avoiding arguments with customers.
(MANAGEMENT CONTENTS)


Customers from hell.
Semke, Ron; Anderson,  Kristin
Training: the Magazine of  Human Resources  Development v27  Feb,
1990, p25(8)

 Profiles  of five types  of  negative  customers are  presented
including egocentric customers, hysterical customers,  and verbally-
abusive customers, to illustrate the types of challenging clients
service workers  typically encounter.  A variety of  steps  can be
taken to deal with difficult customers  such as:  taking  action to
help customers;  ignoring foul language;  and taking responsibility
for solving problems.  Firms which are committed to providing good
customer service also need to make sure their service workers get

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ample  training  and  are  supported  by  management.  (MANAGEMENT
CONTENTS)


Designing a customer satisfaction measurement program.
Kohnke, Luane
Bank Marketing v22 July, 1990, p28(3)

 Chase Manhattan Bank  began  improving  its  quality  of  customer
service  in  1987  through the  use  of a three-part  program,  which
included collecting data about consumers and employees, developing
and monitoring service indicators and standards, and creating and
implementing a service  plan.  Individual  banking sector Vice Chmn
Art  Ryan developed  the customer  service  program.   The  service
quality plan stated the  initiatives and responsibilities needed to
achieve Chase's goals including  leadership, competence, and skills
training; continuing measurement of customer  satisfaction;  and
communications   and   recognition  programs.   Senior  and  middle
managers' commitment to  the  program was considered crucial, as was
the involvement of all levels of employees. (MANAGEMENT CONTENTS)


Quality for all seasons.
Sharp, Isadore
Canadian Business Review v!7 Spring, 1990, p21(3)

 The  management  of  the Four  Seasons Hotels  has made  customer
satisfaction the most important goal of its strategic planning in
order to promote  the  growth of its customer base.  The firm believes
that  service  errors, which  cause hotels  to  lose  referrals  and
customers, are the biggest  barrier  to improving productivity.  To
provide excellent customer service,  the firm adopted a program to
motivate employees to provide quality customer  service. The program
focuses  on  seven  quality  principles,  including:  developing  an
effective corporate culture; making a commitment to quality without
compromise;    and  controlling  quality   standards.   (MANAGEMENT
CONTENTS)


Training for service quality.
Petrini, Cathy
Training & Development Journal v43 May, 1989,  p20(7)

 Four customer  service  experts from  four distinctive industries
recently discussed the concept of customer service training and how
it is as applied  in their companies.  Former American Express Co dir
of quality  assurance and  engineering Jay  Spechler  explained how
American  Express  incorporates   effectiveness   standards  in  its
customer service training.  William  Byrd  Press  executive  dir for
human  resources  Mike Wriston  detailed the team concept  in  his
company. Spiegel Inc training and development manager of customer
relations Kathleen  Griessler illustrated  how Spiegel  keeps  its

                                24

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service  employees  apprised  with  the  most  current  reference
information,  and  Einstein  Consulting  Group  pres Wendy  Leebov
identified different requirements for good customer service in the
health care industry. (MANAGEMENT CONTENTS)


Empowering Employees: A Case  Study  on Improving Customer Service
Richard, Shirley A.
Compensation & Benefits Management v7n4 PP:  46-50 Fall 1991

 Arizona Public  Service  (APS) is an  investor-owned  utility that
generates about $1.5 billion in revenues each year. In order to be
competitive, APS must be successful  in 2 areas:  1.  It must keep its
pricing  competitive. 2.  It  must  be  competitive in  providing
service.  To  accomplish  these  goals,  APS  has  developed  and
implemented an  extensive  external  and  internal  campaign,  called
ServicePLUS, to ensure that customers receive high-quality service.
The way  for APS to  reach its goals is to  motivate  its customer
service  staff.  APS  took  5  steps  to  empower  its employees:  1.
communicating the company's  mission, 2.  listening  to employees, 3.
opening up the  flow of  information, 4.  convincing employees that
their  ideas  are  needed,  and  5.  giving employees a  format  for
action.  (ABI/INFORM)


Right-Side-Up Organization
Richards, Philip
Quality Progress v24nlO PP:  95-96 Oct 1991

 Companies need a new way of viewing their organizations in order
to improve customer service  and employee motivation. The corporate
orientation can be  changed  visually by inverting an organization
chart. In a typical organization chart,  the  chief  is at the top of
a pyramid of managers, supervisors,  and  staff.  The pyramid must be
inverted to  reverse  perceptions and  practices.  A company  wide
commitment to  put the customer first should support  the redrawn
organization  chart.  Putting  customers  at  the  top of  the  chart
reminds  everyone  who is  the most important  to the organization.
Both customers and front-line workers should be at the top of the
organization chart because everyone  else supports  them. Each level
of management should be challenged to motivate front-line workers
to be efficient and effective.  (ABI/INFORM)


Truths and Myths in Service Quality
Gummesson,  Evert
Journal for Quality & Participation v!4n4  PP: 28-33 Jul/Aug 1991

 Service quality is subject  to at least  5 categories of truths and
myths. These concern: 1.  the alleged differences and similarities
between goods and services  and what impact  these  have on quality
management, 2.  the  question:  "Does service quality  cost or  is

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quality  free?,"  3.  the  problem  of  variability  and  limited
capability and the robustness of the service production process, 4.
the idea that  quality  in some service areas, such  as  the health
care sector  and education, can  only be  created if the  service
provider demonstrates love, compassion, and empathy,  in addition to
objective skills and perfect  systems, and  5.  how  to  raise high
customer  expectations,  referred  to  as  the  Peanut  Syndrome.
Academics and practitioners are reminded not to build up a series
of myths that  become inhibiting truths.  Instead, they  should be
sensitive to  changing customer  needs and  tastes,  the  changing
environment,  new discoveries,  and  unorthodox  ways of  regarding
reality. (ABI/INFORM)
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V. ROLE OF THE EMPLOYEE IN CUSTOMER SERVICE
Doing the Little Things Right
Holloway, Gene D.
American Agent & Broker v63n9 PP:46,  48 Sep 1991

 The  Page  Agency (Deland, Florida)  is convinced that  doing the
little things right separates it from the competition.  The agency
concentrates its efforts in 3 principal areas: employee selection
and training, education, and  customer service.   The company uses
the personality testing service provided by the Omnia Profile Inc.
to make accurate employee selection.   Basic training tools include
a procedures manual, an employee manual, and underwriting guides.
An  in-house  underwriting guide  familiarizes employees  with the
underwriting requirements  of each of its  divisions.   The guide
helps the  agency avoid  making  an inappropriate submission  to a
market.    The Page  Agency takes advantage  of  company-sponsored
educational  programs  and  holds  monthly  staff  meetings  that
emphasize  company  procedures  and coverage  changes.    Since the
agency is interfaced with 5 carriers, it can provide fast service
to clients.  (ABI/INFORM)


Customers and commitment.
Shaffer, James C.
Communication World v7 Dec, 1990, p23(5)
                                           *•
 Organizations that develop good relationships with their employees
will  provide high-quality products   and  services  to  customers.
Communicating organizational  values  to employees will  help them
become committed to providing high-quality  customer service. The
rewards received by customer-service  personnel of one southeastern
company were based on the number of telephone  calls they completed.
The  reward  system  indirectly  communicated to  employees  that
completing a large  number of telephone calls was  more  important
than obtaining customer satisfaction. The firm was able to improve
customer service by rewarding employees for customer satisfaction
instead  of  for  the number  of  telephone  calls they  completed.
(MANAGEMENT CONTENTS)


Auditing customer service: look inside as well as out.
Zemke, Ron
Employment Relations Today v!6 Autumn, 1989,  p!97(9)

 A study of  101  companies with good  customer service reputations
suggests that businesses boasting high  employee job satisfaction
also boast high  customer  satisfaction. Successful firms understand
that staff support  and  frontline  employees are valuable sources of
information about how companies are perceived in the marketplace.


                               27

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Business managers can look to employees to provide relevant data to
develop excellent  service  programs.  The  15 areas  where employee
evaluations can  be valuable include: identifying  the  clarity of
service focus; identifying  the  level of management commitment to
service excellence; and determining quality training and support.
(MANAGEMENT CONTENTS)


Creating commitment.
Macher, Ken
Training & Development Journal v45 April, 1991, p45(5)

 The effective management of  an organization  involves  creating a
commitment  to   service,    making   work  more  meaningful,   and
implementing a continuous  learning process. The steps in achieving
employee commitment include obtaining the personal commitment of
managers,   developing   relationships with employees,  and  being
truthful with employees.  Employees will feel that  their  work is
meaningful if  employers  fulfill psychological  job requirements,
which include contribution, a sense  of  community,  and  influence.
Employees must have an understanding of the business before they
can take the  initiative. The best way to institutionalize learning
is to involve employees in  improving their own jobs. (MANAGEMENT
CONTENTS)


Using customers'  ratings to reward employees.
Lee, Chris
Training:  the  Magazine of  Human  Resources Development v26  May,
1989, p40(7)

 Customer service has  increasingly been seen by business as a way
to improve market  share  against competitors.  Now  some  firms are
using customer service  ratings on products and services as a way to
reward employees for jobs well done. Firms that are interested in
designing a customer  rating reward  system should:  discover what
customers want;  set standards around specific points  of  service
delivery that customers have deemed important; measure performance
against the  designated  standards;  and develop  a  system  which
rewards employees for  the desired results. (MANAGEMENT  CONTENTS)


Service training made  simple.
Piskurich, George M.
Training & Development Journal v45 Jan,  1991,  p37(2)

 A  customer-service  training  program  is  more  likely  to  be
successful if the  training  process is simplified.  Revco D.S. Inc
developed  a  training  program  that  appears  to  be  successful.
Trainees were taught that providing  customer  service is a simple
three-step process:  greeting every  customer upon  entry to the
store,  offering  assistance  to  every  customer  searching for  a

                                28

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product, and making eye contact with every customer. The training
process involved explaining the importance of customer service to
employees,  describing  the  three  steps,  and  following  up  by
observing the employees. Employees are able to remember and use the
three-step process even if they are busy. (MANAGEMENT CONTENTS)


How does Disney do it?
Solomon, Charlene Marner
Personnel Journal v68 Dec, 1989, p50(8)

 Walt Disney  Co  is projected to  earn $4.4 billion  in  1989,  and
reasons for its high revenues include emphasis on customer service,
and a  focus on the  elements of efficiency,  courtesy,  show,  and
safety. While Disneyland visitors see aspects of company courtesy
when  visiting the  amusement  parks,  the  theme  of  courtesy  is
extended in personnel management too.  Many hours have been devoted
to designing successful employee 'universities' which train workers
in the  Disneyland philosophy.  The  universities are  specific  to
various sites, ranging from movie studios to theme parks. Some of
Disney's successful employee training and hiring techniques include
using peer interviews for  hiring people  and requiring employees to
develop a  modification  or idea to be implemented  by Disney.  The
company has  found that it  is  important to  stress  that employee
development  is  an on-going  process because  reinforcement  helps
workers to stay committed to the company. (MANAGEMENT CONTENTS)


Instilling a service mentality: like teaching an elephant to dance.
(the importance of top management commitment to customer service)
Albrecht, Karl; Zemke, Ron
International Management  v40 Nov, 1985, p61(3)

 The   transition   has  begun   for   many   industries   from   an
emphasis on  manufacturing  to   an   emphasis on  service,  but  an
important aspect of this transition is the training,  or retraining,
of employees  to  ensure that they understand  the  importance  of
customer service.  The customer's happiness is paramount  in success
in service  sectors of the economy because of the  importance   of
return   business,   and   it is  a  topic  that  has  received  the
attention of  top  management  in a wide  range  of  industries,  both
service  and manufacturing.  The basis  of  many service training
programs is the idea  that  each  time  a  customer  does business with
a company,  the  customer makes  a  judgment  on the  quality  of  the
service, with an image of  the firm's service quality formed by the
sum total of all the judgments of all its customers.  (MANAGEMENT
CONTENTS)
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Empowering employees. (Customer Satisfaction)
Johnson, Gail Cook
Canadian Business Review  v!8 Summer, 1991, p47(3)

 The   REACON   Employee Opinion  Survey Data  Bank,  a  data  base
comprised of  the replies  of over 15,000  employees  in  59  North
American organizations to public  opinion   surveys,  reveals  that
employee  empowerment is  one of  the keys  to providing quality
customer service. The companies  with  the highest rates of customer
satisfaction   promote  communication   between  management   and
employees,  facilitate employees'  interaction with customers, and
encourage employee feedback.  The firms that are leaders in customer
service display a commitment  to service, promote teamwork, devote
resources to  personnel  to  ensure  their    competence,   and  have
managerial principles stressing communication, employee feedback,
and a proactive orientation.
(MANAGEMENT CONTENTS)


Internal research helps to define service  quality.
Brown, Timothy P.
Marketing News v25 Feb 4, 1991,  pll(l)

 Customer satisfaction programs require data on  the  producers of
products or  services  due to the importance of  employee interactions
with  customers  in  defining  customers'  perceptions  of  quality
service.  Internal research  programs are   necessary  in  order  to
ensure  that employees  are motivated and  capable of  delivering
quality customer service. Internal research is both qualitative and
quantitative.  In the  qualitative phase, questionnaires are used to
ascertain perceptions of performance and service among management
and front-line employees. Internal research programs allow firms to
define  service   quality   and   will   help   front-line  employees
understand  customer  expectations  and how  to meet them,  and  help
management understand customer expectations and whether employees
are able to meet them. (MANAGEMENT CONTENTS)


Buying into customer service
Steinburg, Craig
Training & Development  v45 Sept 1991, pll(2)

 The upgrade of customer service quality in companies has become an
integral aspect of management practice.  Companies must be willing
to devote manpower, time,  and money to upgrade customer service if
they are to  improve their business prospects.   Businesses can avail
themselves  of  the  services of  consulting firms  which  train
employees with  the  skills, knowledge and  attitude necessary for
providing outstanding customer  service.   The various  aspects of
employee competency should be covered in the training program.
(MANAGEMENT CONTENTS)

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Looking   for   good   reading  on   service   quality?  Here are
favorites of experts in the field. (Service Quality)
Rubenstein, James
Bank Marketing  v23 April, 1991, p66(2)

   Book  recommendations  made  by service  quality  experts  are
presented. Bane One  Corp  VP  and  Chief Quality Officer Charles
A. Aubrey prefers  reading books  that  tell  banks  how  to  be
more     proactive   in   improving   service  quality.   Aubrey's
recommendations include Juran's Quality Control Handbook, by  J.M.
Juran  and Frank M. Gryna; Qaaiity Is Free,  by Philip Crosby; and
Quality  Service,  Pure  and simple,  by Ronald   W.  Butterfield.
Training consultant Ronald Zemke's recommendations include Service
Quality:  A Profit  Strategy  for  Financial  Institutions,  by Len
Berry, Dave Bennett, and  Carter Brown;  Commit   To   Quality,  by
Patrick  Townsend   and  Joan Gebhardt;  and Managing   Quality: The
Strategic   and   Competitive    Edge,    by  David   Garvin.   The
recommendations  of  Premier   Bancorp   Exec  VP   L.  Biff Motley
include At America's Service:  How Corporations Can Revolutionize
The  Way  They  Treat  Their   Customers,    by    Karl    Albrecht;
Excellence  Was  Expected, by Ferry  Porsche;  and Service Quality
Management, by the Bank Marketing Assn. (MANAGEMENT CONTENTS)


Services: Beyond "May I Help You?"
Armstrong, Larry
Business Week Special Issue PP: 100-103 Oct 25,  1991

 Industries are finding that quality is as vital a marketing tool
as price. This  realization is coming in the face of a tight economy
and  a growing  refusal on  the part  of  customers  to  stand for
anything  less  than  the best.  However,  only 10%  of US service
companies today  have any  kind  of quality  program,  according to
Gunneson Group  International Inc. The company predicts that, by the
year  2000,  perhaps 70% of service  companies with more than 500
employees will have  formal quality  initiatives.  Employees in the
future must like their jobs,  and they  will need  more  authority.
Beyond training, quality in services may require large amounts of
spending on technology.  Some service companies make the mistake of
approaching quality  with  a manufacturing mentality.  Progressive
service companies now look to  a better measure of quality, such as
whether or not  customers are being maintained, according  to Bain &
Co.'s Frederick F.  Reichheld.  Companies are increasingly learning
to view their clients as potential  customers  for life. (ABI/INFORM)


Consumers just  can't wait to be  satisfied:  interaction between
customer, employee is critical.
Schlossberg, Howard
Marketing News v25 Feb 4,  1991, p!3(l)

 Massachusetts Institute of Technology Sloan School  of Management

                                31

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Dir of Systems Thinking and Organizational Management Program Peter
Senge, in  his  book 'The  Fifth  Discipline1,  shows how  firms can
deliver   customer   satisfaction   by   creating   a   'learning
organization'.  Senge, who runs a management training and consulting
firm,  Innovation Associates  Inc (Framingham,  MA) , has  created a
framework  for  measuring  and delivering customer  satisfaction.  A
learning organization is forward thinking and alert to trends and
has organizational mechanisms to keep it that way. Senge believes
that the key components of delivering quality customer service are
the treatment of employees, who will treat  customers  as they are
bring  treated,  and  sources  of  .ij^ovation,   which  require  a
commitment of management to long-range*problem solving and systems
thinking.  (MANAGEMENT CONTENTS)


Transforming customers into kings.
(customer service)  (Total Quality)
Crainer, Stuart
Accountant's Magazine v94 Feb, 1990, p21(2)

 Quality customer service  is essential to business  success and must
involve  every  employee and  every  manager  to  make sure  quality
standards are adhered to and become  part of the corporate culture.
Trends indicate that increased customer sophistication is leading
to market  segments  becoming smaller and more  focused.  Customers
will buy products and services that  most closely meet their needs,
meaning that companies must exploit  and defend specialized niches.
A survey  conducted  by the Massachusetts Institute  of Technology
indicates  that  77%  of innovations  in the  scientific  instruments
industry  are developed by customers rather than manufacturers,
indicating  that open and  close  communication with customers is
vital  for   business  success.  Companies   must   listen  to  and
communicate  with  customers to  turn market research  into  viable
strategic  decisions  and  to  implement  a  continuous  process  of
assessment  and  improvement  of  customer  service.   (MANAGEMENT
CONTENTS)
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VI. SELECTED LIBRARY RESOURCES ON THE CUSTOMER STRATEGY

     The following selections are highlights from the EPA Library
Network on  effective  customer service.  These books,  videos and
journal articles  may be  requested  through the  EPA Headquarters
Library, and other EPA Network Libraries.
A. Books

Managing  to Keep  the  Customer:    How to  Achieve  and Maintain
Superior Customer Service Throughout the Organization
Robert L. Desatnick.
Region 8 Library                                HF5415.5.D47 1987

Complete Guide to Customer Service
Linda M. Lash.
AWBERC Library, Cincinnati                      HF5415.5.L37 1989

Delivering  Quality  Service:   Balancing Customer  Perceptions and
Expectations
Valarie A.  Zeithaml.
AWBERC Library, Cincinnati                      HF5415.5.Z45 1990

Winning Ways:  Achieving Zero-Defect Service
Jacques Horovitz.
Region 3 Library                              HF5415.5.H6313 1990

How  to Develop Quality Measures that  are Useful  in Day-to-Day
Management

This paper  has been  prepared  by staff  of  the Federal Quality and
Productivity Improvement Program  in the Office of Management and
Budget.

PB91-155150
Region 9 Library                                    HF5414.4.H687

Customer Satisfaction through Total Quality Assurance
Robert W. Grenier.
Region 3 Library                                 TS156.6.G74 1988

Purple Pages
Jeffrey Feinman.
AWBERC Library, Cincinnati                            HC110.C63F4

Administration as Service, the Public as Client
OECD
Headquarters Library                            JF1525.P8A36 MGMT
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Customer Connection Quality for the Rest of Us
John Guaspari.
AWBERC Library, Cincinnati                         HD38.G765  1988


B. Videocassettes

Listening Leaders
Video Arts, 1989.
(30 minutes)
Headquarters Library                            HF5415.5.L57  MGMT


Customer is Always Dwight:  How to Achieve 100% Quality  the First
Time/ Every Time
Video Arts Limited, 1988.
(22 minutes)
Headquarters Library                                HD31.C87  1988


C. Audiocassette

How to Give Exceptional Customer Service
Lisa Ford.
Region 3 Library                                     HF5415.5.F67


D. Management Journals

Administrative Science Quarterly
Published quarterly by the Johnson Graduate School of Management at
Cornell University.

California Management Review
Published  quarterly  by  the  Haas  School   of  Business  of   the
University of California, Berkeley.

Harvard Business Review
Published   bimonthly  by  the  Graduate   School   of   Business
Administration, Harvard University.

Public Personnel Management
Published  quarterly  by   the  International  Personnel  Management
Association - United States.

Supervisory Management
Published quarterly by the Sloan Management Review Association, MIT
Sloan School of Management.

Training
Published monthly by Lakewood Publications Inc.

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MANAGEMENT BIBLIOGRAPHY COLLECTION

     Bibliographies on topics of  current management  interest are
produced on  a  quarterly basis by  the Headquarters Library staff.
Following  is a  list of the most recent management Bibliographies.

     1. LEADERSHIP STYLES
         by Sigrid N.  Smith,  December 1991
         EPA/IMSD/0/91-019

     2. TEAMWORK: EMPLOYEE INVOLVEMENT
         by Sigrid N.  Smith,  September 1991
         EPA/IMSD/91-013

     3. PUBLIC POLICY MECHANISMS: NON-REGULATORY OPTIONS FOR
       ENVIRONMENTAL PROTECTION
         by Sigrid N.  Smith,  June 1991
         EPA/IMSD-91-006

     4. EFFECTIVE CONFERENCE PLANNING
         by Sigrid N.  Smith,  March 1991
         EPA/IMSD-91-002

     5. CONTRACT MANAGEMENT
         by Mary  Hoffman and Sigrid N. Smith, January 1991
         EPA/IMSD-91-001

     6. MANAGING A DIVERSE WORK FORCE
         by Anne  Twitchell, June 1990
         EPA/IMSD-90-007

     7. PROJECT MANAGEMENT
         by Anne  Twitchell, June 1990
         EPA/IMSD-90-1990

     8. STRATEGIC PLANNING
         by Anne  Twitchell, March 1990
         EPA/IMSD-90-O05

     9. TOTAL QUALITY MANAGEMENT
         by Anne  Twitchell, December 1989
         EPA/IMSD-89-009
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