Return on Quality (ROQ) in Professional Services

Abstract

Abstract The purpose of this paper is to assess the relevance of the return on quality (ROQ) approach to professional service firms. Using a sample of management consulting firms, managerial attitudes toward the assumptions underlying the ROQ approach were measured and compared with their firm's project mix, comprising Pacesetters, Significant Projects, Bread and Butter Projects and Analytical Work on Project Data. Results indicate that, although Pacesetters account for only a small proportion of the projects undertaken, firms with the highest proportion of the Pacesetters' type of challenging project experience tend to be most likely to consider service quality efforts an investment in their business and to believe that such efforts should be financially accountable. Further, successful firms, measured in terms of sales billings, appear to be more positively inclined toward both considering service quality an investment in their business and making quality financially accountable. Also, results indicate ...