Are traditional productivity measures adequate for professional services? This paper argues that existing measures, designed for industries with tangible outputs, fall short when applied to professional services, which involve intangible and specialized factors. The research seeks to address the challenges associated with measuring productivity in professional service firms and to propose a more adequate measure. Testing this measure on a sample of Swedish management consulting firms, the study assesses its relation to several performance indicators. The findings illustrate the inadequacy of manufacturing-based procedures, demonstrating that a measure acknowledging the unique characteristics of professional services correlates better with firm performance. This study seeks to improve business.
This paper's focus on productivity measurement in professional services aligns directly with the International Journal of Operations & Production Management's scope. The journal emphasizes efficiency and performance improvement, and this research contributes by challenging traditional methods and proposing new approaches for service industries. Performance indicators of these firms correlates better with firms’ performance, improving business.