Modeling values for managing service enterprises

All decisions of a service firm are made to achieve the objectives of that organization. It is more likely that these objectives will be achieved if they are made explicit in an understandable and useful way. This paper outlines how to build a value model of the objectives of a service firm. It summarizes procedures for developing a solid qualitative foundation for the model by identifying the set of relevant values and structuring them as objectives. Then theory and procedures are presented to aggregate these objectives into an objective function. The art of building such a model is also discussed. The paper outlines several uses of the value model for typical service-firm decisions.

Duke Scholars

Author Ralph L. Keeney Fuqua School of Business