The Harvard PIMS Study

Customer Focus Engineering

The Harvard PIMS Study

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One of the most extensive studies of its kind, the Profit Impact of Market Strategy (PIMS) was a joint venture of the Strategic Planning Institute & The Harvard Business School. The study followed the fortunes of over 3000 business units of 450 companies for a 15 year period. The results were reported in the Harvard Business Review, July 1989.

Satisfied Customers Pay Big Dividends

Perceived Quality

"It is not the employer who pays the wages. Employers only handle the money. It is the customer who pays the wages"

Henry Ford, Founder
Ford Motor Company

The study revealed that customer perception of quality was the one variable that most closely correlated with bottom line profitability. Companies whose customers ranked them in the highest quartile in percieved quality had a pre tax ROI almost twice that of companies whose customers ranked them in the lowest quartile.


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