Building block model

In this lesson

1. 0:00 Building blocks model for service industries
2. 0:37 Service characteristics: four key differences
3. 2:02 Dimensions framework: results and determinants
4. 3:29 Practical measures for each dimension
5. 5:00 Standards and rewards framework
6. 6:15 Veggie Delight case study application
7. 8:41 Innovation dimension: standards and rewards
8. 9:53 Advantages and disadvantages of building blocks

About this lesson

This video walks you through establishing clear performance measures, setting achievable standards with clear ownership, and designing rewards that motivate staff behaviour. Using a practical restaurant example, you'll discover how to assess whether a performance management system covers all the right areas, and when the building blocks model works best—particularly for service-based businesses where staff directly shape customer experience. The building blocks model is specifically designed for service industries, where performance measurement differs from manufacturing due to the simultaneous production and consumption of services, their intangibility, variability, and lack of ownership transfer. You'll explore how to structure dimensions (the measures), standards (KPIs that are specific, measurable, achievable, relevant, and time-bound), and rewards (motivators linked to controllable outcomes). The video demonstrates how these three elements connect to drive engagement and results, with worked examples showing how to apply the model to real scenarios. You'll also understand the model's advantages—comprehensive coverage of success factors, links to strategy, and staff engagement—and its limitations, particularly that it's tailored to service organisations and can be challenging to connect directly to overall strategic objectives.

Duration: 11m