Abstract As economies of industrialized countries become ever more dominated by services and competition in service businesses increasingly is global, many service firms are realizing that quality will be the major determinant of their success. Yet producing consistently high quality in services has not received as much attention as in manufacturing firms. Characteristics of services have led many managers to believe that quality improvement methods used successfully in manufacturing are not applicable in service organizations. This paper will argue that this is not true and, in fact, approaches such as just-in-time, total quality management and work teams, suitably adapted, can work also in service firms. The importance of a proper service philosophy and strategy is crucial to establishing high quality and continual improvement in services. How a firm can develop this philosophy and the programs that support it, are discussed with examples of high quality service organizations cited.