The aim of this paper is to introduce readers to the UK’s Combined Heat and Power (CHP) industry, whilst identifying the key influences to the industry’s steady decline and the future diversification from an asset owner to a credible CHP or Utilities Operations and Maintenance (O&M) Service provider. There is a lack of research specific to the CHP and Utility O&M sectors that identify how to focus on attaining service excellence that adds real value to customers and stakeholders.
The Service–Profit Chain (SPC) model developed by J. Heskett et al is a recognised theory and business model that established the connection between profitability, customer loyalty, employee satisfaction and productivity. The application of the SPC model to the CHP and Utilities market sectors has identified a possible shortfall with the SPC model framework; in that it requires additional links to the resource support infrastructure and customer service cycle, whilst including the organization’s strategic service vision.
Going beyond the application of the SPC model, this study will identify the additional management tools required to enhance and support the diversification process. An O&M SPC implementation model and a site specific Key Performance Indicator (KPI) model have been designed to complement the organization’s diversification. In addition to this, 10 golden rules have been developed in conjunction with a six tier approach to attain a meaningful O&M Service culture, which should ensure a sustainable future for an O&M Service provider.