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Customers introduce tremendous variability to that process, but they also complain about any lack of consistency and don't care about the company's profit agenda. Managing customer-introduced variability, the author argues, is a central challenge for service companies. The first step is to diagnose which type of variability is causing mischief: Customers may arrive at different times, request different kinds of service, possess different capabilities, make varying degrees of effort, and have different personal preferences. Should companies accommodate variability or reduce it? Accommodation often involves asking employees to compensate for the variations among customers--a potentially costly solution. Reduction often means offering a limited menu of options, which may drive customers away. Some companies have learned to deal with customer-introduced variability without damaging either their operating environments or customers' service experiences.

The key table ... Y-axis: (1) Arrival variability, (2) Request variability, (3) Capability variability, (4) Effort variability, (5) Subject Preference variability; Y-axis: (a) Classic accommodation, (b) Low-Cost Accommodation, (c) Classic Reduction, (d) Uncompromised Reduction