Strong Link Between CRO Service Quality and Financial Performance
Under no pretense do we believe there is a single metric that can explain or predict the stock market performance of pharmaceutical service providers. The supply and demand forces exerted on a company’s stock price are an accumulation of current and past performance, future expectations, management strength, competitive forces, and macro economic trends. However, a solid relationship does exist between a CRO’s service quality and their financial performance. If causal inference cannot be claimed, how then do we explain the correlation which does exist? Back to first principles: a service provider improving its service is likely to enjoy improved financial success. Industry Standard Research’s Service Variability Index (SVI) reliably measures service quality and hence is correlated with financial performance.
For this
The goal of this analysis is to stimulate conversation regarding the importance service execution plays in the financial health of an organization and to encourage the pharmaceutical service provider industry to adopt a consistent and continual program that ensures they are measuring their performance against their customers’ expectations.
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