Objectively Quantifying Quality
A key mission of Greenwich Associates is to independently measure quality of service. In so doing, we have developed the Greenwich Quality Index (GQI), the market standard gauge of service quality that is widely used to compare service quality within and across financial markets. GQI is closely monitored by senior-level managers at a majority of our clients around the globe and is frequently directly linked to performance reviews. The GQI's cross-market, cross-relationship comparability is very powerful when senior managers evaluate their business portfolios and customer relationships. In addition, it is very useful for corporate and buy-side professionals when evaluating the performance of their service providers, and also in the due diligence process when new providers are under consideration.
The GQI is a statistically meaningful measurement of the quality of service provided by sellers of institutional financial services. It summarizes the qualitative evaluations provided by the users of financial products and services about their financial services providers (FSPs) into a single score. This score is normalized and transformed to a scale from 0 to 1,000, with a mean score of 500 and a standard deviation of 166.7.
This methodology is consistently applied across all of Greenwich Associates' annual research and provides a truly meaningful way for financial professionals to quantitatively measure qualitative service attributes through time. Also, the 1000-point scale provides maximum differentiation among the client relationships of FSPs an important feature given the highly competitive nature of the institutional financial marketplace.
To calculate the Greenwich Quality Index we use the Rasch model, a statistical engine for scoring, and WINSTEPS, a statistical software application. For more information on the Rasch model, please refer to the Institute for Objective Measurement (www.rasch.org) and for WINSTEPS to www.winsteps.com. (For a more detailed technical description of the Greenwich Quality Index, please click here.)
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