Abstract
The most important stakeholder after your customer base is your workforce. Here too, important dynamics can occur in service operations. In this chapter we zoom in on those, based on the case study of a Dutch legal aid insurance service. When the company’s parent company, a retail bank, began selling insurance bundles, the company’s number of insurance holders doubled in a few years. However, so did the demand for legal aid. Workforce growth lagged behind greatly. Soon, a huge backlog of pending requests formed. How should management then respond? At full speed or with moderation? The chapter includes a system dynamics analysis of the dynamic interactions between workforce numbers, learning curves, case backlog, customer and employee satisfaction, outsourcing, and costs. This analysis identified several high-leverage policies.
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