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For your reading pleasure we have provided below an number of free articles.

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Article Categories

Customer Focus and Customer Service  (10 articles)

Leadership  (1 article)

Management Development and Supervision  ( 4 articles )

Personal Financial Education  (1 article)

 

 

 

 

 

 

 

 

 

 

Customer Focus and Customer Service Articles

To be (Customer Focused) or not to be... What a Question

Most of you will probably recognize this soliloquy from Shakespeare’s Hamlet.

To be, or not to be: that is the question:

Whether 'tis nobler in the mind to suffer the slings and arrows of outrageous fortune,

Or to take arms against a sea of troubles,

And by opposing end them? 

To die: to sleep;

What has this got to do with Customer Focus? Based on the unacceptably high levels of poor or mediocre customer service, prevalent across North America and other parts of the globe, it appears that many companies seem to favor “not to be”.  read more...

 

Why Customer Focus Differentiates

Has this ever happened to you? You're in a hurry. You want to complete your business and the person serving you is preoccupied with something other than serving you. Then when you are served, you might get an insincere apology for the delay followed by the completion of your transaction. If asked to describe this experience you would likely respond "That's typical" or "It's nothing more and probably a little less than I expected."  read more...

 

Customer Expectations vs. Customer Needs

The first rule of stellar service delivery is: Service is all about expectations.

You buy a product; you expect it to work the first time. You go to a discount supplier, you expect the quality to be less than the high end dealer, but you still expect what you buy to work, first time every time. When it comes to products, expectations are pretty clear. People expect a good quality product based on the price they are willing to pay for it. When it comes to service, expectations can get a little fuzzy. When a customer begins ... read more...

 

FAST GUIDE: 10 Success Factors of Customer Focus

Customer Focus is more than Customer Service. It is an aligned whole-organization approach to customer satisfaction and service, leading to customer loyalty and advocacy. The result is sustainable profitability. read more...

 

Letter To The Editor

Isn't it curious that, despite all the articles and commentary about the strategic importance of service quality and the empirical evidence which concludes that building customer loyalty through service quality is a profitable long-term business strategy, the service that most of us receive is average at best, and indifferent in most cases. Proof is found in the endless stream of horror stories shared in the press, on the internet and around the dinner table. The scary thing is that this low level of service is typical and when there is a problem, all too often things just get worse.  read more...

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Shocking Recovery!

"Submitted for your judgment, a business plan. This plan is mapped out to the nth degree. It describes the particulars of how to do business. But what can't be anticipated is the tension that washes over a customer like a dense fog. This is the tension that is inherent in registering a complaint. This particular tension, registering prominently on the anxiety scale, brings a foreboding. It carries with it a premonition of doom and is experienced, unfortunately, too often...in the Service Zone." read more...

 

Improving the Customer Experience through Customer Journey Mapping

Today’s customers are becoming more demanding and often drive a hard bargain. They utilize multiple channels and touch points to interact with your organization during their life cycle (Customer Journey). If you are serious about differentiating your organization, you cannot ignore the negative impact that inconsistent and piecemeal customer experiences will have on your business.  read more...

 

Using Information to Create Value for Your Customers

Ask most any employee at work today in American business the same question: "What's our biggest problem?" and you're likely to get the same answer: "Communication!" How can that be? Look at the proliferation of technology that has vastly improved the way in which information is sent and received in corporations. Consider the inordinate amount of time we spend during the typical business day in meetings. What about voice mail, e-mail, pagers, cell phones, fax machines and computers? Yes, even with the multitude of communications technology at our fingertips; even with the increased knowledge base and education of the American worker; even with new concepts in leadership and teamwork, most people will tell you the major cause of problems in organizations can be attributed to "communication." read more...

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No Theory. . .No Learning: A Requisite for Real Change!

To quote an unheralded Deming phrase... "No Theory, No Learning." Explained, it warns us that unless we fully understand the theory, set of assumptions or thinking that we held true when we created practices and procedures that we use presently, we will be forever condemned to create different versions of what we have always done in the future. The result...no real change, just different manifestations of what we always used to do. read more...

 

Would You Do Business With You?

If more company presidents and their senior managers asked themselves this question with the customers’ view in mind, many would answer “probably not.” The reason? Customer service. Much has been said, done and written about customer service during the last decade. Millions of dollars have been spent on programs, training and systems. However, the results have been disproportionate and often outright disappointing. In a recent issue of Fast Company, the cover story declare d “B e t r a y e d ! The biggest lie in business is ‘the customer is in charge’… How could an idea so right go so wrong?”  read more...

 

 

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Leadership

Become a Customer-Focused Leader

In my recent article, “To Be (Customer-Focused) … Or Not To Be…” and “Why Customer Focus Differentiates” I offer a number of compelling reasons for the strategic importance of making Customer Focus a critical business strategy.

If you found these reasons compelling or you already knew in your gut that Customer Focus is strategically essential, then your goal must be to create a customer-centric culture throughout your company. If this is the case then you will need to embed customer focus into everything you do. read more...

 

 

 

 

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Management Development and Supervision

Hey Coach? Bridging the skills gap one skill at a time

Business Issue

One of our clients passed along this training scenario that paints a strong mental picture: “To illustrate the importance of feedback and coaching of employees, ask for a volunteer from the group. Position the volunteer in a standing position and place a large empty box at some distance behind the person. Place about 20 pieces of wadded up paper within reach of the volunteer. Explain to the group...  read more...

 

Alphabet Soup—How to Become a “New School” Leader

If you pick up a training or human resource magazine these days, you're likely to find at least one article about how to work with, maximize, engage and otherwise lead the "Millennials". Sure it rhymes with perennials, but these people aren't just popping up in the spring, they are with you day-in and day-out in the workplace.  read more...

 

How to Make Employee Training Stick

Untrained employees present a bad image for your company.  If your workers understand your products or services but cannot communicate effectively with customers, your business will suffer.  If your customers do not get the attention from employees that they deserve, they will take their business elsewhere.  And if employees can’t get along with co-workers or work as a team, morale and productivity will suffer. read more...

 

What we have here is a failure to communicate!

Business Issue

Many people fail to realize their effectiveness as a manager or supervisors stands or fails on their ability to communicate. No matter what organization you’re in, department you lead, team members you have, or person you are...to manage is to communicate. The ability to communicate effectively helps build a well-oiled and productive organization. read more...

 

 

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Personal Financial Education

 

Pay Now or Pay Later

Why employee financial education should be a priority

Money — the more you make, the more it takes, or so it seems. This statement applies to employers as well as employees. While most businesses struggle with the challenge of doing more with less, employees struggle with the same challenge and are drowning in debt more than ever. While some debt may be necessary for both employers and employees, too much debt is usually the result of poor money management. Financial education, offered to employees by their employer, can be one of the best investments employers can make. read more...

 

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To Be (Customer-Focused) or Not To Be... What a Question

By Ray Miller

This is the first in a series of short articles about understanding why customer focus is strategically important, what it means to be truly customer-focused and how to create or improve customer focus in your organization. This article presents a simple business case for the strategic importance of  creating greater customer focus. . Many excerpts are taken from the book, That’s Customer Focus! We hope you find in interesting and helpful.

Most of you will probably recognize this soliloquy from Shakespeare’s Hamlet

To be, or not to be: that is the question:

Whether 'tis nobler in the mind to suffer the slings and arrows of outrageous fortune,

Or to take arms against a sea of troubles,

And by opposing end them?

To die: to sleep;

No more; and by a sleep to say we end

The heart-ache and the thousand natural shocks That flesh is heir to, 'tis a consummation

Devoutly to be wish'd.

To die, to sleep;

To sleep: perchance to dream: ay, there's the rub;

A popular interpretation of the speech suggests that it is a debate on suicide. Hamlet considers the attractions of death ("not to be"), which he refers “to a sleep”, over life ("to be"), where  pain seems unavoidable. But in the end he decides that  his fear of possible suffering in the afterlife as opposed to the known evil that is life stops him from actively ending his existence.

What has this got to do with Customer Focus?

Based on the unacceptably high levels of poor or mediocre customer service, prevalent across North America and other parts of the globe, it appears that many companies seem to favor “not to be”. The evidence we have to support this view surrounds us. Everyone of you, that has taken the time to read this article, for which we thank you, has undoubtedly experienced poor or mediocre service personally if not today, than very recently.

If you will allow me a little poetic license, with the first few lines of Hamlet’s immortal speech;

To be Customer-Focused, or not to be Customer Focused  that is the question:

Whether it ‘tis better to do what is necessary to reap the benefits of being truly customer-focused

Or maintain the status quo and do nothing but continue to handle customer complaints, put up with customer churn and operational inefficiencies

And by doing nothing?

Commit long-term corporate suicide...

Customer Focus Is Not an Option

Everywhere you turn, Corporate head Offices extol the virtues of service but when it come down to it, most of the time they are really paying accelerated lip service to the importance of service.

This is very curious, particularly when you consider the number-one reason why that small number of service leaders, you know, those few companies where the service is almost always really great, consider customer service a.k.a. customer focus to be a critical business strategy.

What is the Number 1 reason you ask?

Customer Focus is a Profit Strategy!

This happens in a couple of ways. Truly customer-focused companies have loyal customers. Loyal Customers:

• buy more,

• cost less to serve because they know your processes,

• tell you when things go wrong so you can fix the problems and

• tell their friends, family and associates about how great you are and as a result you get more customers.

Also, customer-focused companies are more productive. Employees are motivated, and perform their jobs more effectively.

Re-work, duplication of effort and mistakes are significantly reduced. These all cost you money in terms of time spent, money spent, loss of productivity and loss of business.

Your turnover also reduces so you keep your staff longer and don’t experience down-time, productivity losses and employee morale related issues.

If you are still not convinced, consider the following:

1. It’s 5 times more expensive to attract a new customer than to keep an existing one.

It is safe to say that it is far more profitable and far less costly to keep the customers you have by building their loyalty, than it is to keep replacing them with new customers.

Determining what it costs to acquire customers is a bit intangible for most people. As you can imagine, at lot goes into getting customers to walk into your place of business or call you. Advertising, merchandising, promotions, premises expense, phone systems, salaries and so on are costs associated in part with getting customers.

Someone has to pay for this. Normally payment comes through the proceeds of revenue you get from the sales of your products and services. Sometimes we tend to take this for granted. Research has proven that once you have a customer, your cost of keeping him/her drops dramatically over time. When you lose a customer you will inevitably incur a higher cost to replace the one you lost.

Assuming your cost to acquire a customer is $250 and based on the fact that it is 5 times more expensive to acquire a new one, your new customer acquisition cost would be $1,250 for each new customer required to replace  one that defected. Based on the example above, assuming you lost 20% of your customer base,  the annual cost to replace these customers would be $62,500. Over five years this cost would be $312,500 and you would have turned over all your customers in that period. Can you think of any better uses for the $312,500?

2. About 75% will do business again if the problem is resolved to their satisfaction.

3. 90 to 95% will do business again if the problem is resolved on the spot.

Since mistakes are guaranteed to happen, how you recover from these mistakes will significantly impact on whether the customer will do business with you again. It is important to note that research suggests that if you recover well, your customers will stay with you. The faster you recover, if you can resolve the issue “on the spot”, your customers will be impressed and in all likely-hood reward you with their continued business.

4. Customers are willing to pay for quality service.

In a series of polls we conducted last year with about 1000 course participants, we asked where would you prefer to spend your money? The results compare very favorably with research we have reviewed that suggests that the vast majority -70%, of customers are willing to pay for high quality service. Obviously price is a variable, but service is a constant.

5. An increase in customer loyalty will have a direct positive impact on your bottom line.

Harvard Business Review conducted research which reveals that a 5% increase in customer loyalty can result in a return of 25% to 125% directly to the bottom line depending on your industry. It is safe to assume that investing time and resources  to retain even a small number of your clients would pay for itself. You can do the math. Be conservative and take your gross profit and increase it by 25%.

6. The cost of poor service has a direct, negative impact on your bottom line.

Consider the time and expense associated with fixing problems, dealing with customer concerns, replacing product, re-working reports, and so on. Research from TARP (Technical Assistance Research Programs) indicates that, based on your industry, the cost can be significant.

Pick one of these two and do the calculation.

Wouldn’t you like to have this as profit, rather than as an expense?

The financial gains associated with creating a customer-focused organization can be substantial and well worth the effort.

To quote our friend Hamlet once again

To sleep: perchance to dream: ay, there's the rub;

In today’s highly competitive market place we really cannot afford to take the easy way out. Creating customer focus takes commitment, at all levels of your organization, a comprehensive strategy which targets leveraged actions which will positively impact customer perception, and the will, fortitude and financial support to make the changes necessary to be truly Customer-Focused.

 

Ray Miller is Managing Director of  The Training Bank,  a Training and Consulting firm specializing in Customer Focus, Service Improvement, Leadership and fully customized training solutions. He is also co-author of the book That’s Customer Focus.

You can get more information about That’s Customer Focus by visiting www.thatscustomerfocus.com , www.thetrainingbank.com or www.cantrainonline.com

If you would like a pdf version of this article, please click here and we will send you one.

 

You can also find this article published at these fine web sites

http://www.articlebiz.com/article/65735-1-to-becustomer-focused-or-not-to-be-what-a-question/

http://www.free-articles-zone.com/article/To%20be..%28Customer-Focused%29%20or%20Not%20to%20Be...%20What%20a%20Question

http://ezinearticles.com/?id=580081

 

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Why Customer Focus Differentiates

By Ray Miller

Has this ever happened to you? You're in a hurry. You want to complete your business and the person serving you is preoccupied with something other than serving you. Then when you are served, you might get an insincere apology for the delay followed by the completion of your transaction. If asked to describe this experience you would likely respond "That's typical" or "It's nothing more and probably a little less than I expected."

Welcome to the world of the average consumer.

Most people will probably tell you that good service is just common sense. They would also invariably say "For something so common, it sure is hard to find!" Edward R. Murrow said it very well: "What is obscure, we eventually see. What is obvious usually takes a little longer."

Research from a litany of reliable sources tells us that the primary reason that customers switch their loyalty from one company to another, in the range of 40% to 68%, is because of a perceived attitude of indifference on the part of the service provider. Sure, some leave because of price, or product quality, or other personal reasons; but the vast majority leave because of Poor Service.

These days, customers are really in the driver’s seat. The options and choices of similar products at similar prices at similar quality levels are greater than ever.

Advances in technology, reductions in production time and access to global distribution mean that products and services can be duplicated and customized faster than ever before. And your customers know this!

Consumers have more choices than ever before. This creates an interesting challenge. How do you create value when customers today are not seeing much difference in the choices they are offered? 

Customers tend to look at value from four perspectives:

the Price of the product or service,

the Quality of the product or service,

the degree of Innovation offered by the product  and

the Service provided to customers.

The quality of products continues to improve universally and competitors have developed the ability to duplicate even the most complex of those products. Innovation attracts younger consumers but no sooner do we see one innovation, than someone else comes along and clones it plus adds a few more bells and whistles.

 

Consider the evolution of the flat screen LCD TV. A couple of years ago, few could afford such a luxury item. Now there are LCD TVs to fit a wide range of budgets. And in addition to the traditional manufacturers of televisions, it seems that any one who manufactures computers also has their own LCD TV. 

 

Developing a competitive advantage based solely on product quality and/or innovation is very difficult. And sustaining it is very expensive.  You will also find that there is more price parity today than ever before. Very few companies can compete for long using price as a differentiating factor. By shifting your emphasis to service quality, you will find the greatest room for differentiation. 

 

For most companies, customer loyalty is the key to future profitability and growth.  Corporate newsletters, national periodicals, and most executive speeches are peppered with a litany of examples demonstrating the relationship between customer loyalty and profitability. In almost every market we've learned that retained customers:

• Are less expensive to serve because they know their role in the process.

• Tend to lower marketing costs.

• Often purchase more over time.

• Are open to purchasing new and different products as they are offered.

Clearly, customers value service and whether they get good service or not, they expect it. If they don’t receive service at a level that meets their expectations, they will go elsewhere until they find it. Whether the economy is on the down swing or the upswing, no one can afford to lose customers.

Many companies still deliver lousy, inept, shoddy service and even more deliver only average service.

This creates a unique opportunity for those who dare to be different.

 

Simply stated:

Companies who differentiate themselves through their service have a distinct competitive advantage.

 

Ray Miller is Managing Director of  The Training Bank,  a Training and Consulting firm specializing in Customer Focus, Service Improvement, Leadership and fully customized training solutions. He is also co-author of the book That’s Customer Focus.

You can get more information about That’s Customer Focus by visiting www.thatscustomerfocus.com , www.thetrainingbank.com or www.cantrainonline.com

If you would like a pdf version of this article, please click here  and we will send you one.

 

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Customer Expectations vs. Customer Needs

By Ray Miller – An excerpt from That’s Customer Focus.

The first rule of stellar service delivery is: Service is all about expectations.

You buy a product; you expect it to work the first time. You go to a discount supplier, you expect the quality to be less than the high end dealer, but you still expect what you buy to work, first time every time. When it comes to products, expectations are pretty clear. People expect a good quality product based on the price they are willing to pay for it. When it comes to service, expectations can get a little fuzzy. When a customer begins a relationship with you he or she already has a specific set of expectations. These expectations are based on their perceptions of you, your company and your industry. They are formed through personal past experience, and the experience of others with whom the customer interacts.

Consider the last time you went into a self-service gas station. What did you expect? Other than the pump to be working, not much else right? After all - you are doing all the work.

You have the opportunity to Satisfy, Dissatisfy or Impress–and two of these are bad. Delivering below expectations is obviously bad, but in the context of creating loyalty, so is simply satisfying customers, because they are getting nothing more or less than they expect.

Creating customer value and loyalty comes from consistently exceeding expectations.

Prof. Benjamin Schneider and Prof. David E. Bowen published an article called "Understanding Customer Delight and Outrage".

Delight and outrage?

That may sound a bit melodramatic but this concept is critically important to providing basic customer service. Consider this hypothetical bell curve measuring the quality of service delivery in general:

Basically, most service falls into the median of the curve - the take it or leave it level of service. If you provide this level of service the customer will be satisfied.

 

 

You at least met their expectations. Schneider and Bowen actually break the bell curve distribution into four levels along a continuum:

Customer loyalty is the degree to which customers will patronize your business and your business alone because you've developed or created an emotional bond with them. You've gone beyond their expectations and addressed something more innate - their emotional needs as a consumer. Customers have come to expect fast, friendly service. They expect to get an answer to their questions. They expect you'll answer their call promptly and return their messages. Do those things well and you'll be in the game.

But will you win their loyalty? Not necessarily. If you fail, have you lost them forever? Again, not necessarily.

Research shows customers are willing to accept some failure in terms of these expectations. Fail continuously and that's a different story. This is the "ambivalence" part of the model. Next time they need your product or service they may, if it's convenient, patronize your business. But they won't seek out your business purposefully. To do that, they must be delighted with your service. They must be so impressed with your service that they become a dedicated follower.

Schneider and Bowen refer to these customers as "apostles". They will sing the praises of your business to friends, family and coworkers.

At the other end of the spectrum it's possible to so utterly offend the basic needs of your customers that they'll willfully take every opportunity to sabotage your business. They become a terrorist according to Benjamin and Bowen. They'll tell every person who'll listen about the time your business, yada yada yada. Each time, they're likely to embellish the story.

So what creates such an extreme emotional reaction to service in some customers? According to Schneider and Bowen these reactions occur when you surpass the needs of a customer (delight) or you offend those needs. Not just fail to meet them - you (in the mind of the customer) intentionally deprived them of those needs.

What are these powerful dynamics?

1. Deprived of equity / justice

2. Lack of respect

 

1. Deprived of equity / justice

Customers want to be treated fairly. They want to know that the service and product they receive is as good as that received by any other customer. Consider a study done by a consumer advocate group. They asked samples of airline passengers from numerous airports what they'd paid for their ticket. They found less than 10% of passengers paid the same price for their ticket even though they flew from the same city. The results incited outrage among travelers who saw no justification for paying more, when they had received the same seating and service.

Equity and justice is even more at issue when companies resolve customer problems. At times service or product experience is so bad customers will seek compensation for their time, effort and inconvenience. A participant in one of our customer service workshops shared the following:

."I purchased a large screen TV from one of those audio-video-electronics mega stores. The first one just did not work so we had to bring it back. The second one, which we had to wait two weeks for, had a large crack along the bottom of the screen. Again, we didn't know until we unpacked it. I'd already lost a day of work going to pick it up and unpacking it. When I brought it back they tried to charge me $37.00 because I returned it without the box. It was destroyed unpacking it. I was stunned. Even after explaining the circumstances to the retail associate he made me talk to the store manager who acted like he was doing me a favor waiving the charge."

Equity and justice means making customers feel they're getting a comparable service and product at a fair price. It also means problems are resolved to their satisfaction and that companies consider the cost of the customer's time and inconvenience when making amends.

2. Lack of respect

Nothing is more basic and elementary to effective service than the need for customers to feel respected. In fact, studies show merely respecting customers does not distinguish your business or service. That's because customers expect it. It's when they perceive a lack of respect that things get volatile.

For example:

Rachael brought her car into a repair shop to get new tires put on. After looking the vehicle over the mechanic recommended new brakes. Rachael was puzzled since she hadn't noticed any problem with the brakes. In fact, she had gotten it inspected just two months earlier. "Well they don't look 'em over the way we do." He rattled off some automotive terms to convince her. Rachael was still hesitant. "Why don't we call your husband," he said. With that Rachael told him to put the tires back on her vehicle - she'd be taking her business elsewhere.

Respect means treating customers the same - regardless of gender, race or age. It means listening to the customer's problem and responding in an empathic tone. It means your non-verbal behavior demonstrates concern and attentiveness.

 

When it comes to service, clearly understand what it is your customers want, expect and need and shape your people and processes to deliver a level of service which reflects these.

 

 

Ray Miller is Managing Director of  The Training Bank,  a Training and Consulting firm specializing in Customer Focus, Service Improvement, Leadership and fully customized training solutions. He is also co-author of the book That’s Customer Focus.

You can get more information about That’s Customer Focus by visiting www.thatscustomerfocus.com , www.thetrainingbank.com or www.cantrainonline.com

If you would like a pdf version of this article, please click here and we will send you one.

 

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FAST GUIDE: 10 Success Factors of Customer Focus

By Eric Fraterman

(Eric is a friend and strategic partner.)

What is Customer Focus?

Customer Focus is more than Customer Service. It is an aligned whole-organization approach to customer satisfaction and service, leading to customer loyalty and advocacy. The result is sustainable profitability.

In a Customer Focused organization, Leadership, Processes and People are customer-aligned. In broad strokes this means that:

• Every action is shaped by a relentless commitment to meeting and exceeding customer expectations regarding product and service quality.

• Customer touching and supporting internal processes are constantly evaluated and improved to meet or exceed those expectations.

• Employees are aware of their role in maintaining a valued relationship with their external and internal customers.

My experience based 10 Success Factors

1. Use a piloting approach. Learn, adjust and then roll out, while using managers involved as internal change agents and catalysts.

2. Allocate role of Senior Sponsor for the initiative.

3. Create a balanced set of customer-based measures as key indicators to manage the business and enable real accountability for them.

4. Design Customer Focus from the outside in (driven by the Voice of the Customer) and deliver it from the inside out (using the Voice of the Customer to drive internal deployment, culture change and alignment).

5. Conduct external measurements and surveys first and act on them with clear priority setting and assigning accountability for outcomes.

6. Do not conduct internal climate or employee satisfaction until the Customer Focus initiative is well underway, organized, structured, resourced and communicated.

7. Ensure that your People/HR team translates the customer needs into Customer Focused hiring specifications.

8. Ensure that the performance management system is aligned to the Customer Focus initiative, and measures and rewards to desired Customer Focused behaviors and skills.

9. Ensure that middle managers and senior leaders lead by example and do what is said; avoid the Say-Do gap trap.

10. Make communications into a forethought and harness it to support the required cultural transformation.

 

If you would like a pdf version of this article, please click here and we will send you one.

 

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Letter to The Editor

By Ray Miller

(I sent this to the editor of one of our local papers awhile ago. Thought you might find it interesting.)

Letter To The Editor

The Toronto Star

Toronto, Ontario

Isn't it curious that, despite all the articles and commentary about the strategic importance of service quality and the empirical evidence which concludes that building customer loyalty through service quality is a profitable long-term business strategy, the service that most of us receive is average at best, and indifferent in most cases. Proof is found in the endless stream of horror stories shared in the press, on the internet and around the dinner table. The scary thing is that this low level of service is typical and when there is a problem, all too often things just get worse.

Canadian business should be put on alert status. Swapping bad service stories has become a national pastime. I have never met someone who, after hearing a bad service story rushes right down to the offender to be subjected to the same abuse. For that matter, I have never heard of anyone rushing to deal with a business when the experience they encounter is nothing more or less than they expected either. The reality is that businesses have within their control the ability to generate bad stories, good stories or no story at all. Potential customers are significantly influenced by the stories they hear when choosing where to spend their overtaxed dollars.

Every time I conduct one of our service quality training programs, I am inundated with a litany of tales of horror, and on rare occasions, a gem which renews my faith that service quality is indeed possible.

The good news is there are a few Canadian companies who have backed up their strategic commitment to service quality with real action and the delivery of extraordinary service. The bad news is that these seem to be the exceptions to the rule. The most relevant news for any organization in the public or private sector is that the strategy which offers the greatest room for differentiation with consequences such as customer loyalty and long-term profitability, is service. Not to be confused with services (the stuff you offer to your customers) but rather the way in which your products and services are delivered to the customer. We call it adding value through people.

I have never met a CEO who did not articulate that service is important. I have never met a front line service provider who purposely came to work to irritate customers. Yet bad service exists. Why do we hear corporate leaders and their advertising espousing the importance of customers and service yet we are disappointed when we go to the check-out counter or try to call the customer service department? The business reality is simple: customers are becoming more sophisticated and the majority have realistic expectations when it comes to the quality of service they want and feel entitled to, and these customers are voting with their wallets.

Companies that view service quality as a front line issue are regrettably stuck in the era of "smile training" and the happy faced - have a nice day syndrome. It has been our experience that a service imperative is the responsibility of everyone in an organization regardless of his or her role. At its very core, service is a leadership issue involving leaders at all levels of an organization from a front line or support staff supervisor to the CEO. Poor service is the typical outcome when leaders are unwilling or unable to make the changes necessary to create an environment where service quality flourishes.

As I read your article on March 12, a number of horrific stories came to mind. I then thought, rather than share this bad news, what small contribution could I make to your readers who may be unknowing offenders in the creation of bad stories. I offer below a brief assessment questionnaire which may give leaders responsible for service delivery some insight. I have a few recommendations for anyone with the courage to take the test. First be brutally honest, you're the one who will benefit. Second, ask yourself, "Are my responses based on facts or assumptions?" If the answers are based on assumptions, how can you find out for sure? Finally ask yourself, "How would my customers answer questions A., C., and E.?"

Responses of 3 and below in any of the 5 questions indicate that improvement is critical. Responses of 4 in any of the questions indicate that improvement is necessary to achieve an excellent service reputation. Responses of 5 or 6 would indicate above average performance. These assessment questions serve to allow reflection on the service quality of your organization in a general sense and focus further investigation into service improvement.

 

Sincerely;

Ray Miller

Author of That’s Customer Focus

And Managing Director of The Training Bank

 

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Shocking Recovery

By Rick Tate

(Rick is a highly regarded expert in the world of customer service. He is an extraordinary speaker, trainer, author and human being)

"Submitted for your judgment, a business plan. This plan is mapped out to the nth degree. It describes the particulars of how to do business. But what can't be anticipated is the tension that washes over a customer like a dense fog. This is the tension that is inherent in registering a complaint. This particular tension, registering prominently on the anxiety scale, brings a foreboding. It carries with it a premonition of doom and is experienced, unfortunately, too often...in the Service Zone."

The Musings of A Customer

As a customer, I know things will never be perfect all the time, no matter how hard someone tries. Mistakes will happen now and then. There will be several reasons, some avoidable, some not. For me it's not the mistake that is of utmost importance...it's usually the way mistakes and problems are handled that have that get my real attention.

I know it is admirable to do things right the first time. But, while a company can take care of a product mistake or defect before I experience it and thus never know the error occurred, with service issues, most times the error occurs with me present. As a customer I'm not part of the food preparation process, but I'm actively involved in the service process. So I'm very impressed when, after the first time wasn't pleasant, the second time is exceptional.

In many ways I'm really surprised at myself. I find myself being drawn to and more loyal to those companies who have recovered from mistakes and handled my complaints in an excellent fashion than to any others. It's not that I enjoy situations where I have to complain or when there is a problem. But, possibly, it's such a relief to have a company deal with those situations in a positive manner that it makes the value of that company much higher than what it would normally be. Or maybe it's because the way many companies handle complaints isn't so great.

A Rat or a Mouse? Who Cares?

I remember another hotel experience. I was in my room, sitting on the bed reading a newspaper, when I noticed a rat scampering across the floor of the room. Concerned and moving to the center of the bed, I called the front desk and asked if I could change rooms. The clerk asked what the problem was, and I told her there was a rat in my room.

I'll never forget her response. "How big was it?" she asked. I was taken aback. (I guess they do come in sizes.) I asked if that really mattered. In a very terse tone of voice she replied, "Yes sir, it does. I can assure you this hotel does not have RATS!" Well I didn't think this was the time to debate rodent characteristics. I asked her what she thought I might have seen. She responded, "Sir, it was probably just a mouse."

Just a mouse, I thought. Well that makes all the difference in the world. I asked if we could agree that there was a big mouse in my room. With very little emotion at all, she said she would send someone up. Within two minutes two bell people arrived and helped me move to a new room. They were very polite and helpful. Upon returning later in the afternoon, I found a large basket of fruit, crackers and cheese (the cheese was probably an oversight) and a personally signed note of apology from the manager. Later that night I got a personal call from the night manager apologizing again.

However, while all that happened after the initial request was very positive, I was still angry and I'll never return. You see how the situation was handled at the first contact was so poor this hotel got no return for its subsequent recovery efforts. The clerk had to tell me I was wrong! Why? I don't know. Maybe she was just defending her company. Or perhaps she was right... the hotel had no rats. From my point of view...who cares? Rat, mouse, mule, moose or raccoon...there was an uninvited life form in my room, and I just wanted out.

Even though the specific incident with a rat in my room was an isolated event, the type of response I got from the complaint was not. Many attempts at recovery only offer the customer something tangible, a buy off. Yet, how people handle the situation is just as important, if not more so to me. It seems that in most cases when a problem arises or I complain, I get immediately put into a confrontational or uncomfortable position.

The Pain Of Complaining

First, many times there is a list of arbitrary rules I must have obeyed in order for my complaint to have any validity. Being asked if I have a sales receipt when the company name and price tag are in place seems silly. (I guess I could have stolen it...but then again if that were the case I figure a competent crook would say it was a present.) The 30 day rule is mind-blowing. What if I couldn't return it within 30 days? Does that make the satisfaction level or the problem I encounter any different? It must be to satisfy some internal accounting procedure because it certainly does not relate to my issue or possible future loyalty.

The questions like "What did you do to this?", "How many times has this been used?", "Did you follow the instructions?" "That's the way you order it!"...all seem to suggest that I caused the problem. I love the question, "Did you get that here?" Again, I have often wondered what the crook would say..."Oh no, I was just attempting to rip you off." It seems many of the hoops the customer must jump through are designed to either influence the customer not to bother to complain or to make the customer prove his or her complaint valid. And all to what end? It merely creates an adversary relationship which makes the customer want to do business somewhere else.

Second, I find that in many places it is very hard to complain. For whatever reason, many people don't want to handle the problem or complaint. Also, the complaint process is usually a hassle that entails forms to be filled out and/or several different people to be dealt with. I find myself repeating the situation many times. I can't understand why the sales process is fine tuned with prolific customer courting behaviors, yet the return or problem handling process is a fragmented and time-consuming adversarial event with behaviors reflecting outright contempt.

My Next Purchase Is New Business

I guess I see things a little differently. Why would I come back if I'm treated poorly and dealt with like I'm a pain in the rear? Don't they see my next purchase as new business? I really don't believe there is any such thing as old business. Every purchase I make is based somewhat on my past experiences. I think good customer service is a great sales technique, especially when I encounter a mistake or a problem as a customer.

I'm really like most; I don't often complain anymore. Yes, if the product I buy is defective or the invoice charge is incorrect I will let someone know. But, to complain about the way I'm treated, about the inconvenience, the lack of response, the hassles...is not a good use of my time. Why? Well, for one thing I don't think it will do any good. Many past experiences have taught me that.

Another reason is that it is time consuming, and my time is valuable. Also, I believe it will be confrontational, and I don't wake up in the morning and relish looking forward to confrontations. Altogether it just seems like a big waste of time and effort, especially when I can simply just take my business elsewhere.

However, there are some companies I will definitely complain to. Those companies who have handled complaints and problems well in the past, I give the opportunity to do so again. Could it be the better companies get more complaints than others because the complaint experience isn't punishing for the customer? I know I lower the complaint load for those companies I believe have lousy recovery practices. It's easy to get me not to complain...make it uncomfortable. Maybe there's something to think about here.

There are some companies that really blow me away. Why? They perform their promise really well and they also have superb recovery practices. I'm an avid Nordstrom customer. Why? Never a problem with a return or an exchange. Never! And it is handled by the clerk at the first point of contact.

L.L Bean...simply the best. Why? Again, if I'm dissatisfied with anything for any reason, send it back. No problem. Never! Never!!! And when they are late or out of stock, a personal letter makes me feel like they are bending over backwards to keep me informed and get my order ASAP. Got to love 'em.

P.F. Chang's, the fast growing Chinese bistro! They go out of their way to ensure you have every opportunity to be completely impressed with the food and the service. Complaints are P.F. Chang's opportunity to ensure you will return for another meal!!!

Wal-Mart? Even as a discount store Wal-Mart treats the customer with the utmost respect, the staff is always helpful and the complaint and return process is by far the easiest in their industry. Could be a result of a Sam Walton quote I saw recently...

"There is only one boss: the customer. And he or she can fire everybody in the company, from the chairman on down, simply by spending their money somewhere else."

Thank you Sam!!!

It's a Matter Of True Character

Why are recovery efforts and problem solving practices so important to me? Because during these times a company demonstrates its true character. Like any human relationship, it's not how we treat each other when times are good that is the measure of the relationship. It is in troubled times that the relationship is put to the test.

With excellent recovery practices, a proactive approach to stand behind everything a company does, and a philosophy to make things right when they aren't, my loyalty becomes very attainable.

In business, when complaints of offered, the ledger of character is opened and examined. The tally is made, and then the reward or the penalty paid. This is the comeuppance that awaits us all. Many pay the penalty, the loss of the customer. This is justice meted out for poor recovery.

This is judgment day- in the Service Zone.

Key Principles:

1. How we handle complaints and problems for customers demonstrates who we really are and the values of the organization. This is an integrity issue and the customer will react accordingly. The best of the best recovery better than their competitors.

Thoughts & Questions:

To have a positive impact recovery efforts should be;

• fast and distinctive

• never burden the customer

• proactive - planned out in advance (hesitation sends the wrong message to the customer)

• recorded and used as a data base for future business improvements

2. Recovery is a test of character!

3. Build or destroy the relationship with the customer by how you handle complaints and problems.

4. There is no cost of recovery, there is only an investment in the customer's future business.

 

Thanks Rick

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Improving the Customer Experience through Customer Journey Mapping

By Eric Fraterman

(This is short and to the point. Eric is a friend and strategic partner.)

Today’s customers are becoming more demanding and often drive a hard bargain. They utilize multiple channels and touch points to interact with your organization during their life cycle (Customer Journey). If you are serious about differentiating your organization, you cannot ignore the negative impact that inconsistent and piecemeal customer experiences will have on your business.

 

Mapping the Customer Journey helps you understand the customer’s touch points. If the customer experiences these as consistent and positive, and you occasionally exceed expectations, you create value and set the conditions for nurturing a long-lasting and profitable relationship with loyal and committed customers. Since such customers often also recommend your organization to others, managing the customer journey and experience is a key profitability driver.

 

 

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Using Information to Create Value for Your Customers 

By Rick Tate and Michele Richards

(Rick is a highly regarded expert in the world of customer service. He is an extraordinary speaker, trainer, author and human being)

Ask most any employee at work today in American business the same question: "What's our biggest problem?" and you're likely to get the same answer: "Communication!" How can that be? Look at the proliferation of technology that has vastly improved the way in which information is sent and received in corporations. Consider the inordinate amount of time we spend during the typical business day in meetings. What about voice mail, e-mail, pagers, cell phones, fax machines and computers? Yes, even with the multitude of communications technology at our fingertips; even with the increased knowledge base and education of the American worker; even with new concepts in leadership and teamwork, most people will tell you the major cause of problems in organizations can be attributed to "communication."

We wonder just how much information we are communicating is really relevant to what people actually need to do their jobs in a way that creates value for our customers? Perhaps it's time to consider that our communications problems lie not in "how" we communicate, but rather in "what" we communicate. Is the customer's voice and evaluations the core of the information we channel through our organization, or are we simply using the progress in hardware and software to create better ways to communicate the same information we have in the past with new methods?

Would we have a different type of organization if we made the theme of our information processes "what the customer wants us to know" instead of "what does management want to tell and how do they want to tell it?" How much more effective would we be if everyone knew what was on the customer's mind when doing business with us, what the customer truly valued, and what real experiences the customer deals with?

How Far Have We Come, Really?

One of the reasons the "mom and pop" organizations of the 1920's and 1930's worked is because there was very little distance in time and space between a company's employees and its customers. Communication was easy because there were fewer organizational layers which separated employees from understanding what their customers really wanted, needed, and expected.

During the next two decades, American organizations grew in size and scope, adding layers and layers of organizational structure between their employees and customers. Information flowed from the top, "filtering" through the middle management funnel and was eventually delivered to people at the bottom of the pyramid. There was no sinister plot to withhold information from people. Management simply felt that employees were uninterested and didn't have a need to know certain information critical to the business

In the 1960's, we became concerned about the morale and motivation of the workforce and began to see the need to improve the way we communicated with employees. Company meetings became a thing to do. Cross-functional staff meetings became normal. The "corporate newsletter" went to press all across the nation. Middle management was encouraged to "pass the word" down and keep people informed because we had learned that open communication positively impacted employee morale and motivation.

By the early 1980's the emergence of a totally new economy would make our past practices ineffective. A major lesson learned was that in order to compete in an era that demanded quality products and quality performance, it was critical to have the active involvement of people. As a result, the need for better employee communications structures emerged as the need for information sharing between departments was becoming a critical business strategy. Here is where we saw the growth of the global employee newsletter, employee forums, meetings with management, problem-solving teams, advanced quality circles, TQM initiatives, etc. Like never before, employees had access to an overwhelming amount of information from a multitude of sources.

But the nature of the information passed along didn't really change that much. People were better informed about organizational "events," pay and benefits issues, who was being recognized for exceptional performance, new business ventures, who got promoted, and so on. There was improvement in data about the quality issues with regard to product production. There was some business news, but it was normally just a report on sales, profit, earnings and budget. And, it was communicated in a macro sense which still left employees (with perhaps the exception of those in sales and marketing) in the dark about just how they individually connected with the company's success.

But, Where Did the Real Customer Go?

By the end of the 1980s, we saw the "internal customer" concept take hold. By introducing the idea of serving an internal customer, organizations were attempting to bring each employee down the line closer to the user of its products or services. "I'll serve the customer, you serve me, and your internal customer will serve you. In the end, we'll all be working toward the same goal."

It was a new and impressive concept, but unfortunately one that delivered some unintended consequences. In many cases, a new hierarchy was created that merely replaced the old one. Support functions such as Human Resources, MIS and Engineering now perceived that they were less important than those who were in direct contact with the paying customer and it was their job to be at the mercy of the Sales and Marketing and operational functions. Many times this situation created more hostility and lack of cooperation than what we had before. And all it took was for one function in this linear organizational structure to be out of focus on what the primary objective was to sub-optimize the results of the whole organization. Anyone who has ever struggled with the ritual stringing of Christmas lights knows all too well what happens when one bulb goes awry... the entire string doesn't work and we fail to meet the ultimate goal. Further, the time it takes to solve the problem of "one small bulb" is great and the agitation is profound. Much like the weak link in a chain, when people move in different directions, the effect is disastrous.

The "internal customer" also failed to create the support employee's connection with the paying customer. Many times internal customers were demanding fulfillment of requirements merely because they were now in a position to do so, not because demands created value for the paying customer. In many instances, the paying customer was once again lost due to the internal struggles raging within a company ... ironically all in the name of serving the customer!

Yes, by the mid 1990's, we were incrementally better at communicating with employees and understanding customers. But, the external environment had not changed incrementally over the past 30 years...it had changed fundamentally! And our efforts were not paying the dividends in bringing about the type of change that was really needed, or that most business leaders really desired.

Massage Therapy

But what to tell employees? The truth? Unfortunately, the "message due jour" was massage therapy...candy coated information which presented a view of things through "rose colored glasses." "Times are tough; we have challenges, but we're the best, always have been, and everything is under control." Messages about the realities of the new economy were massaged to the point that many did not see the urgency and importance of individual change. We still held on to the dependency model of the 1940-50's in which the employee sensed that they would be taken care of and that the organization had things figured out.

And without a shared sense of what was really happening and the consequences of not changing fast enough, we labored through times in which credibility was lost as many suffered those consequences without being duly prepared. How many employees in the 1990's have been victims of corporate downsizing without even understanding the real business issues which caused them to lose their jobs?

Moving Forward?

To be successful in the future, we must look to another model of communication. One which will have at its foundation that shared sense of reality, the shared knowledge of the real threats to business success that are needed to galvanize employees and create and a sense of urgency to tackle those threats. What we so desperately need in business today is a revolution in the way we gather and disseminate information in our organizations. We have the tools, but we've been focusing on the wrong information. It's time that we take a good hard look at "what" we communicate in our organizations and decide that what we've been doing for the last half decade will not cut it for the future.

Believing in and talking about a customer-driven approach is one thing; delivering it is quite another. Being really customer-driven hinges on one critical business factor...every single thing we do must be centered on bringing the customer back to do business again!

Many people long for the past when businesses were smaller and the link between the store operator and the customer was unfiltered. Relationships between owner and manager with their customers were strong because the separate parties had more personal knowledge of each other. Today, technology allows us to return to the advantages of relationships past, while simultaneously utilizing the advantages of being big. We're now able to put information into the hands of those employees who serve customers directly and indirectly. Customer information put into the hands of employees allows them to perform their jobs in extraordinary ways.

So knowing this, why are we so reluctant to share valuable customer information with all employees? Perhaps we're holding on to the old beliefs of our corporate ancestors who felt that employees didn't need to know certain information and were uninterested. Or, maybe we don't trust our employees with customer information. It's also quite possible that we don't spend time on a customer agenda because we don't have enough "real" information about customers. We may have at hand customer statistics and numerous reports about customer purchases. But do we really have the type of customer information that lets us truly understand what the customer values when they do business with us?

In any case, we must begin to examine these assumptions that serve as the foundation of our actions and rationalizations. If we do not change our fundamental theories and beliefs we will be severely hampered in our attempts to improve our business practices and capture the involvement of employees. We must move towards a "right to know" theory of customer information. We must have a "shared sense of reality" theory when it comes to deciding what information people should have. With the right philosophy, we can move toward implementing the tactics necessary to improve the customer value our organizations offer.

Usher In Customer-Centered Communications©

If the goal is clear...to focus organizational insights, efforts and talents on creating value for the customer...then there is an effective approach: Customer-Centered Communications© .

Customer-Centered Communications© means ensuring that every employee in your organization has an intimate knowledge of your customers' wants, needs and expectations through the distribution of information.

In order to foster real, fundamental change in the way we use information to create value for the customer, we must first understand the challenges that lie ahead for creating this change:

1. How do we begin to emphasize WHAT we communicate to our employees, after so many years of focusing on HOW we communicate?

2. How do we use information to help our employees get closer to our customers, when our corporate culture may lack basic trust in people?

3. How do we harness employee talents, insights and energies toward serving end-user customers, when we've encouraged them to spend so much time focusing on serving each other?

4. How do we use information as a strategic tool to make it easier to manage our organizations?

5. How do we treat employees as partners in our business, and set the expectation that they behave the same way?

The old model of employee communication was linear and inward looking. It was linear in that information about customers typically entered the organization through one or two sources. Information was watered down and passed on until when it reached the support functions it was nothing more than "nice to know" information. The old model was inward-looking because it relied heavily on the internal customer concept. One department only need know enough to serve its internal customers and had no regard for what was happening outside the organization

The Customer-Centered Communications© model is fundamentally different. It's chaotic. And, as we've learned in recent years, order is born out of chaos. It's outward looking. It relies heavily on an employee's "right to know" customer information; real customer information direct form the customer's own words, in order to make effective decisions, solve problems more quickly, and develop objectives which focus on serving the end-user.

Using the CCC Model as a guide we can begin to ensure that all employees "hear" the voice of the customer in the customer's own words. We can use our existing methods of dissemination of information to make sure the majority of what employees receive centers around customer issues. The customer is the business...let's make sure our employees really "know" the business!

Five Steps to Customer-Centered Communications©

Once you have the good, hard answers to the above questions, it's time to take action. Throw out every theory you know about communicating with employees. Now is the time for fundamental change.

It's time to go back to all those technological advances in communications that we've spent so much time and money on improving in our organizations. Use them! Not to communicate the same information that has been clogging our organizational veins for decades, but to communicate raw, unfiltered customer information which will help your employees create value for your end-user customers.

Involve employees in the communications process and hold them accountable. Find ways to use the communications tools available in your company, along with the talent and enthusiasm of your people, to allow free flow of customer information. Ask them what information they need and want, what will help them contribute more, and how best to deliver it to them. Then, be sure to hold them accountable for knowing the information. Far too many organizations allow their employees to depend on the organization for feeding them information, instead of providing opportunities to get informed, then holding them accountable for seeking out the information.

Examine policies/procedures that may inhibit the flow of communication. Review your policies and procedures manual or any written guidelines used by management with a fine tooth comb. Do your policies "punish" people for communicating or for seeking out information? For example, a policy which prohibits certain employees from taking action to serve the customer, may be causing your organization to drift further and further away from a customer-centered environment.

Agree on what customer information is important to your organization. Consensus should come not only from management, but from employees from throughout your organization, and most importantly from your customers. Ask your employees what they need and want to know about your customers. Ask your customers want they need and want your employees to know about them

Get customers involved in the process. Your customers are just as anxious to be served by your organization as you are to serve them. Invite them on-site to meet with groups of your employees. And not just those from Sales and Marketing, but from ALL functions throughout the company. Ask them to give your employees a "report card" on how well the organization is doing and areas for improvement. Encourage your support employees to make site visits to your customers' locations. The more they understand the customer's experience, the better able they will be to contribute to creating value for that customer.

Tie individual goals to customer outcomes. Review your performance appraisal process. Do you hold your employees accountable for serving the end-user customer? If not, each employee should be involved in helping to develop goals and objectives which measure the impact they have on creating value for the customer.

Much of what we have learned from our experiences in employee communications no longer applies. We are piloting a new and different ship on very different waters. We must experiment with new ways and provide breakthroughs to create lasting changes in today's organizations.

 

Printed with the permission of the authors.

 

 

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No Theory. . .No Learning: A Requisite for Real Change!

By Rick Tate

(Rick is a highly regarded expert in the world of customer service. He is an extraordinary speaker, trainer, author and human being)

To quote an unheralded Deming phrase... "No Theory, No Learning." Explained, it warns us that unless we fully understand the theory, set of assumptions or thinking that we held true when we created practices and procedures that we use presently, we will be forever condemned to create different versions of what we have always done in the future. The result...no real change, just different manifestations of what we always used to do.

Unless our beliefs, theories, assumptions and thinking is critiqued and challenged for validity, what we build in the future will rest on a foundation that is the same as it always was

 "How we think determines what we measure." (Einstein)

Consider the following:

We have understood for years that the gateway to change is through our belief system and accepted theories. Yet, in many instances we have conditioned ourselves not to learn as in our quest for quick fix answers we short-circuit the very element that is critical to effective problem solving and effective change...the examination of the thinking and beliefs that we built today's practices on.

As Thomas Paine so aptly stated ..."A long habit of not thinking a thing wrong gives it the superficial appearance of being right."

If we hold true the theory that the earth is flat then we make decisions and create practices within that framework of thinking and are blinded to the possibilities that are present under a different theory. Worse, all improvements to those practices will be nothing more than upgraded versions of what always was and not breakthroughs.

Almost every significant breakthrough is the result of a courageous break with traditional ways of thinking (a change of theory!). If managers "believe" their views are facts rather than a set of assumptions (or personal theories) that they have accepted as truth, they will not be open to challenging those views and will never create the type of change that will dramatically affect the business. Any future practices or procedures that are altered without a change in thinking or theory will be disguised versions of those same practices or procedures. Is it any wonder that we keep re-creating the wheel?

We are conditioned to steer away from this type of change and become more "action" oriented or pragmatic in our approach. However, this allure to action short circuits the learning process and inhibits effective change in business. We've all heard over and over again..."I don't have time for theory, I need practical application and action." Perhaps we have created the very approach that is our biggest obstacle to effective problem solving and change in business.

No Theory, No Learning? A message that will serve us well and a discipline that will bring about lasting results.

 

 

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Would you do business with you?

By Eric Fraterman

(Eric is a friend and strategic partner. This article was recently published in Customer Service Management)

If more company presidents and their senior managers asked themselves this question with the customers’ view in mind, many would answer “probably not.” The reason? Customer service.

Much has been said, done and written about customer service during the last decade. Millions of dollars have been spent on programs, training and systems. However, the results have been disproportionate and often outright disappointing. In a recent issue of Fast Company, the cover story declared “Betrayed ! The biggest lie in business is ‘the customer is in charge’… How could an idea so right go so wrong?” But surely, you may say, every company wants to delight its customers. That may be true, but while bold promises have been made, bad results have been the reality. The issue is not that service is poor, but that the promised and necessary great service is harder than ever to deliver!

Michael Hepworth, in a Canadian Marketing Association publication, provides some facts in support of the Fast Company report :

• The American Customer Satisfaction Index (University of Michigan Business School) stood at 74 in 1994, dipped to 71 in 1997 and has only slowly re c o v e red to 73 in 2000.

• Only one in three customers who have a problem and contact the respective organization for help are satisfied with the response they get. Customers who contact an organization for help and are dissatisfied with the response are 30 to 40% more likely to take their business elsewhere.

• The average North American company has 11% of its re venue at risk as a result of customer problems and how they a re handled.

• $1 spent on advertising yields less than $5 in incremental revenue, but that same $1 spent on improving customer service can yield more than $60 in incremental revenue . And the need for customer service in the new economy is as great as in the old:

• 75% of all e-shopping carts are abandoned before the purchase is actually completed. Nine out of 10 shoppers who abandoned their carts did so because of a lack of customer service.

• 72% of respondents said that customer service is critical in shopping satisfaction, yet less than 1% of all e-commerce Web sites offer live customer assistance.

• Up to 30% of Internet users re q u i re human intervention before purchasing on the We b .

So what are companies doing to resolve this issue? Today too many company leaders spend their time and resources looking for magical technology solutions. I call this “The Great System Seduction.” Since we live in an age of “real time” and “1-to-1 marketing,” the Customer Relationship Management (CRM) Systems business is burgeoning . However, a good system does not equal good service. The European Centre for Customer Strategy predicts that future CRM effectiveness will be assessed less through hard measures and more through the stories people tell about a company. This means companies must give the customer distinctive service experiences so they will become advocates, telling stories to their friends and colleagues.

Only if your people are ‘turned on’ will you generate such legends!

The disappointing reality is that the human element is frequently overlooked at the expense of the systems challenges. Enduring and real customer service success requires a passion for people—both employees and customers. Author Jim Clemmer observes, “Too many managers treat ‘their people’ as assets with skin wrapped a round them.”

Debra Fields, president of the highly successful Mrs. Fields Cookies, expresses the flip side: “Customer service does not come from a manual or a system… It comes from the heart. When it comes to taking care of the customer you can never do too much and … there is no wrong way if it comes from the heart!” In other words, we need a balance between managing things from the head and leading people from the heart.

While rational strategy is essential, emotional intelligence accounts for as much as 70% of the personal and organizational success factor. The fundamental problem is that most business leaders are not “pathological” about customer service and do not believe passionately in it as a key differentiator. One of my clients (a president who used the word “pathological” in his communications and speeches about customer service) was successful in making service excellence happen and royally reaped the commercial benefits. He did not just make the rational strategy case for it, but he lived it from his hear . Unfortunately there are too few leaders like that. For many, the distance between head and heart is far greater than the typical 16 inches… and therein lies the root cause of customers’ continuing disappointment with the service they receive .

But if the customer is king, why are so many companies still behaving like republicans instead of royalists? There is often misalignment between the people and the systems in place to manage them.

The challenge for today’s business leaders is to put their people front and center; to pursue

short - term results while continuously aligning  technology, work processes and structure a round the people to enable them to become customer-focused in all aspects of operation. After all, a sharper customer focus means a sharper competitive edge.

T h e re are two lessons in this:

1. M o re organizations need to think longer and harder about the people factor in customer service,

and

2. They must also pay fanatical attention to managing each customer touch-point. This is serious and hard work. Being “pathological” about customer service demands passion fro m leaders. They must be pre pared to walk the talk, be patient, pay attention to customer detail, and constantly work on people-and customer-focused alignments. Only then, when they have become “pathological” about customer service, will business leaders truly be able to say “Everyone wants to do business with me.”

 

Eric specializes in customer-focus consulting. He helps clients achieve increased customer-focus and operational effectiveness by ensuring that externally the voice of the customer is captured and is effectively deployed intern ally, so that business operations, people and supporting processes work together to deliver customer-value. The resultant improved customer service, strengthened customer loyalty, organizational alignment and increased employee commitment give clients a sharper competitive edge.

 

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Become a Customer-Focused Leader

By Ray Miller

In my recent article, “To Be (Customer-Focused) … Or Not To Be…” and “Why Customer Focus Differentiates” I offer a number of compelling reasons for the strategic importance of making Customer Focus a critical business strategy.

If you found these reasons compelling or you already knew in your gut that Customer Focus is strategically essential, then your goal must be to create a customer-centric culture throughout your company. If this is the case then you will need to embed customer focus into everything you do.

While Customer Focus and service excellence is everyone’s responsibility, this is particularly true for anyone who manages and supervises others. That’s why we believe that...

                   ... Customer Focus is a Leadership issue.

To become a customer-focused leader, it is helpful to look at the best practices of other organizations when it comes to management and leadership practices and tailor these to your specific situation.

Why is this important?

Truly customer-focused organizations are run and managed on a day-to-day basis by Customer-Focused Leaders. The buck stops with you.

Customer-contact and support employees are rarely the biggest obstacle to service improvement.

It's up to management to create an environment in which employees can deliver excellent service.

The reality is that you can talk about how important service is from the highest levels of your company, you can begin to change processes and procedures company-wide which reinforce customer-focus, and your staff can work diligently at trying to provide service excellence. But, at the end of the day, the only way to ensure sustainable service excellence is for those in management positions throughout your company to do things which create an environment where service flourishes. You will make it happen.

Your Key Role as a Leader is to:

§             To build and maintain the conditions that make service excellence possible and worthwhile

§             To make it real operationally

§             To make it stick culturally

….in other words, to be a Customer-Focused Leader.

 

Organizations that deliver top quality service have a number of things in common. These best practices have been summarized into ten key customer-focused leadership principles.

These are:

I.                    Commit to Service Excellence

II.                  Be Pro-Active in Recovery

III.                Enhance and Align your Systems

IV.               Listen to the Voice of the Customer

V.                 Lead with a Customer Focus

VI.               Define Service Boundaries

VII.             Provide Autonomy

VIII.           Measure What’s Important

IX.               Accountability for All

X.                 Recognize and Reward

 

Let’s take a look at each of these in more detail.

1.        Commit to Service Excellence

Most managers and staff typically say that service is important. The question is, do they act consistently in a way which demonstrates that service is important?  A true commitment to service is based on the belief that service excellence is a competitive advantage. The term commitment in this principle means action. It is what you do as leaders, not what you say that counts. The best evidence of your commitment is found in what customers and your internal service partners say about you and your team.

2.         Be Pro-Active in Recovery

Recovery is a term which describes your actions in response to a customer’s complaint or problem. Even with a goal of “zero defects,” people make mistakes. It is important to remember that the vast majority of customers don’t complain about the quality of the service they receive, they just leave. Problems will happen and should be viewed as opportunities to impress the customer and create positive stories.

In the world of service recovery, the faster the problem is resolved the more likely the customer will be satisfied. Work with your staff to ensure that the solutions provided to customers are designed to at the very least satisfy, but whenever possible impress.

Since the most frequent complaints and problems are predictable, you can work with your staff to plan recovery strategies for handling these complaint situations and empower your staff to take action.

Being pro-active also means seeking out disgruntled customers before they have a chance to complain, particularly when you know that as a result of a change in a process or procedure, complaints are likely to result. It’s about building solid relationships with each customer based on trust, honesty and a sincere desire to earn their loyalty.

3.        Enhance and Align your Systems

An organization’s survival depends upon rapid, continuous enhancement to all processes, policies and systems which impact on the customer. Many processes are designed to meet regulatory, compliance and fiduciary standards. Other processes have evolved to expedite workflow. You need to be continually examining all processes, policies and systems which impact on the customer and looking for ways to make them less burdensome from the customer’s perspective. Management’s role in the development and implementation of improvement plans must be strong, and highly visible. Sustained quality improvement efforts require the highest level of commitment from managers and continual attention and action. This commitment must be demonstrated through their actions.

Any system that wasn’t designed for the essential purpose of creating a high level of customer satisfaction rarely, if ever, results in high levels of customer satisfaction… no matter how hard employees try!

Employees at all levels of the organization must be actively involved in the implementation of improvement plans. Managers play a critical role in identifying and removing barriers to the delivery of service excellence. Minor improvements can be perceived as major improvements by the customer.

Encourage your staff to constantly look for better, faster and unique ways of doing business in a way that your customers value and enable your staff to make these changes or communicate the changes required to those who are empowered to do so.

4.        Listen to the Voice of the Customer

Listening to customers and continually realigning systems and actions to what customers want and need is critical. While periodic customer surveys are important, listening to the customer should be a routine part of day-to-day business practices especially at the point of contact with customers. We will address this issue in greater detail in the Know Your Customer and Learning From the Customer chapters. Enable every customer-contact person to truly listen to what customers say and don’t say.  Recognize that customers’ perceptions are their reality. Create processes to catalogue your customer perceptions and act on this intelligence by aligning your operational practices wherever possible to positively impact on your customers’ perceptions.

Customers also make sweeping conclusions about product quality and service based on minor details, so pay attention to the little things.

5.    Lead with a Customer Focus

Like most organizations, you probably have a Responsive Up Mind-Set where upper management is responsible for setting and communicating the organization’s vision, direction and goals. In this structure the frontline and support staff are responsive to the needs of middle management who are responsive to the needs of upper management. To visualize this, think of your company structure as a pyramid with senior management at the top, customer contact staff at the base and your customers below the base of the pyramid. As depicted in figure 1.

A Customer-Focused Leader’s goal is to combine this with The Service Mind-Set (figure 2)

The Service Mind-Set inverts this structure so that upper management views itself as serving the needs of middle management who service the needs of the frontline and support staff who in turn service the needs of the customer. This is the mind-set that supports leadership with a customer focus. This means seeing yourself as a service organization for your employees.

Recognize that excellent service is impossible if you over-control.  Understand that people are generally eager to do a good job and distressed when they can’t. Remember that frustrated employees do not deliver good service.

View your staff as your customers while at the same time become very adept at managing paradox such as “How can my subordinate be my customer?” or, “How can I increase customer focus while looking for ways to exercise fiscal restraint?”

6.        Define Service Boundaries

Each employee needs to understand your organization’s service values and be able to connect these values to everyday actions. A leader must define a performance playing field that will allow employees to handle the routine deviations from normal customer transactions or interactions.  The employee’s performance playing field must be wide enough to allow employees to handle all routine transactions and interactions, as well as the predictable and routine deviations they face, and narrow enough to protect the financial integrity of the business operation. Each employee must have clearly defined goals, boundaries and guidelines which enable him or her to deliver quality service. It must be clear how achieving performance goals will contribute to service quality.

 

Setting effective service goals requires that every employee thoroughly understands the basic promise your company makes to your customers and Moments of Truth (this is covered in Learning from the Customer) for which he or she is responsible and can identify how to impress the customer. The customer-focused leader creates a service playing field that allows people to succeed. Clearly define measurable and achievable goals and boundaries based on employee capabilities and guidelines to enable them to deliver quality service.

7.        Provide Autonomy

Every employee needs to understand why what he or she does is important in the context of service quality. Ensure that every employee has the requisite knowledge and skill relative to their specific job function combined with a clear understanding of the playing field. When employees demonstrate this understanding and these capabilities, give them the autonomy to take action; set them up for success, not failure.

The people with the most customer contact are the best source of information regarding the customers’ needs and wants. The people with the most internal business partner contact are the best source of information regarding their needs and wants. So don’t micro-manage.  When people show they can do their job, then let them do the job. Too many rules make it difficult, if not impossible, for service providers to effectively perform their jobs. Rules and procedures designed to protect against a small percentage of individuals convey a message of mistrust to the majority of honest customers. Replace rules with judgment.

8.        Measure What’s Important

Some say “You get what you measure.” ... The reality is... “You get what you pay attention to.”

A major responsibility of a leader is to create effective and accurate measures from the customer’s perspective.  Good measurement allows employees to understand how to be successful within the organization. You can do this by translating these measures into actions that will allow employees to understand what good service looks like and how to succeed.

Measurement is about paying attention to the service performance you want, and focusing on outcomes rather than activities. Set service performance goals that are realistic while at the same time strive to go beyond the basics in an effort to exceed customers’ expectations.  Ensure that every employee understands and agrees to what is being measured, why it is important and how these measures reflect the defined playing field. The scorecard you use to assess success must be developed from the customer’s point of view.

9.        Accountability for All

You have an obligation to your customers, to employees, and to the company to be unwavering in your demands for service excellence. Employees will pay more attention if they know they will be provided with solid, equitable and constructive positive feedback on their performance. Employees give credibility to service quality if they are held accountable to the outcomes of their performance.

Measurement must be followed by action. Action means giving timely feedback on both good service performance and poor service performance, equally. Provide feedback as close to the service performance occurrence as possible. A lack of action communicates that service is not important, individual performance does not make a difference, there are no clear-cut performance expectations, and that the organization’s leadership is not credible. Pleasing the customer is the only valid end result of service performance.

10.        Recognize and Reward

Successful service leaders ensure attention is paid to those who serve customers well and to those who assist in that effort. They show their appreciation to those who make sure the organization’s customers are served properly. Consistent recognition of achievement is an integral part of building and maintaining a customer-focused culture. A good work environment depends on positive feedback, so “Catch people doing things right.”

Good leadership makes a big deal of little things and thereby creates a performance culture where little things become a big deal. Recognize the desired changes in service behavior you want frequently and provide rewards when you have seen a sustained improvement in service performance outcomes.  Ensure employees know what they need to do to earn a reward. Provide rewards that are valued from the employees’ perspective and ensure that you reward those who deserve it.

To conclude:

Built on a solid foundation of dynamic internal service your goal must be to master the effective use of all these key Customer-Focused Leadership fundamentals.

The financial gains associated with being a truly customer-focused organization are substantial and  should not be overlooked or taken for granted.  You have it within your power to make a difference and dare to be different. Become a Customer-Focused Leader.

How Customer Focused are you? Would you like to know? I invite you to complete a complimentary online self-assessment to help you determine this. Visit our web site www.thatscustomerfocus.com and you will see a link to this free assessment. It only takes a few minutes to complete and you will find the results quite revealing.

Excerpts of this article have been taken from our recent book That’s Customer Focus!. For more information about this excellent resource, please visit the website we have created specifically for this publication at www.thatscustomerfocus.com.

On the other hand, if you would prefer classroom-based training and coaching in order to help you master the Customer-Focused Leadership fundamentals we have described or to train your staff to become more customer-focused, visit our website at www.thetrainingbank.com or contact us at support@thetrainingbank.com

Ray Miller is Managing Director of The Training Bank and author of That’s Customer Focus! and The Customer Focus Companion.

The Training Bank is a full service training and development firm which specializes in fully customizable Leadership, Customer Focus, Service Excellence, Management and Supervisory Development training.

Visit our website at www.thetrainingbank.com or call us at 416-698-8230. We will be pleased to be of service.

 

 

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Hey Coach? Bridging the skills gap one skill at a time

By Tom Watson

Business Issue

One of our clients passed along this training scenario that paints a strong mental picture: “To illustrate the importance of feedback and coaching of employees, ask for a volunteer from the group. Position the volunteer in a standing position and place a large empty box at some distance behind the person. Place about 20 pieces of wadded up paper within reach of the volunteer.

Explain to the group that their job is to give clues to the volunteer that will help him/her to throw the wads into the box without turning around.

Give examples of clues such as ‘a little to the left.’ Keep the activity going until the volunteer has successfully thrown at least 3 wads of paper in the box.

Ask the group to describe why their feedback or coaching was so important.

Variation: At some point the trainer can move the box to illustrate the importance of communication when change occurs.”

Some Perspective

As I am thinking about this training tip, I have to say that this is great imagery for what happens every day on the job. Can you imagine the person that comes to work with absolutely no skills? How about the individual who is pulled from the front line to be a supervisor? And, what about the new executive working in an industry that is changing so fast he/she barely has the business skills to cope?

This is the challenge of our fast-paced world, where employee skills shortages meet with business technology expansion, competitive overload, and monumental change.

Having a manager who can coach you through the massed pile of “paper wads” and the unfamiliar territory in your day can make or break you in your ability to be productive.

Heaven forbid that someone move the “box” that you have been working towards.

The point is that managers are responsible for a lot these days – hiring staff, meeting budget targets, and achieving departmental goals. This is a strain some days, and it is easy to feel unproductive yourself. It is equally important for employees to feel that they are meeting their goals and performing acceptably. It would be easy to ignore the individual task of coaching, but we simply can’t do that.

Ignoring the skills gap--ignoring the need to develop individual performers will be detrimental to the overall performance of the organization and the ability to stay competitive.

The big question is, are you coaching your people to get their “three wads of paper in the box”? Can they get to five, six or even seven wads of paper by this time next month? Think about it. And, with your environment constantly changing, who will guide the team to the right place?

A Solution

The answer is that it can’t happen without training your workforce to be better coaches. Be sure that you:

• Understand what coaching is, why it is important, and how it supports individual and company goals.
• Prepare for a coaching session by using observation and analysis to build a plan for a successful dialog.
• Hold a coaching conversation that improves an individual’s performance and increases productivity.
• Use coaching as a way to build a valuable sense of teamwork between the team leader and team member through communication, shared goals, and collaboration.

By coaching your employees, their aim will get better.

If you are looking for a great training program which will enhance your coaching effectiveness, have a look at The Five Dimensions of Coaching. It was developed by my colleagues at The Training Bank. It has a great track record and really works. Click here to view the course description.

Tom Watson is an affiliate of The Training Bank and President of Watson Training and Development, Inc.

 

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Alphabet Soup—How to Become a “New School” Leader

By Tom Watson Ph.D

If you pick up a training or human resource magazine these days, you're likely to find at least one article about how to work with, maximize, engage and otherwise lead the "Millennials". Sure it rhymes with perennials, but these people aren't just popping up in the spring, they are with you day-in and day-out in the workplace.

Millennials are also known as "Y's" or the "how to engage generation." Then there are Generation Xers, the boomers, and the echo boomers. It all seems like alphabet soup. Does paying attention to this really make a difference in how things happen at work everyday? Researchers tell us it does.

What is very certain is that managing is changing and challenging today. You and your leaders cannot afford to be "old school."

Old School vs. New School

Management speaker, author and trainer Tim Connor describes the old school leader as a ". . . top down autocrat while giving lip service to bottom up responsibility, decision making, goal setting and problem solving." Further more, he says that these old school leaders are". . . arrogant, closed minded, and often aloof and inaccessible. They believe to win means beating someone else." He goes on, but you get the picture. Does this sound like someone in your organization and in fact, several people? Your organization could be headed for turnover, low productivity and morale, and poor customer service. Maybe you are already there.

On the flip side, Connor explains that the leader of the future, our "new school" version, listens to employees, customers, and suppliers to create partnerships inside and outside the organization. "They empower people by pushing decision making, authority, accountability, problem solving, goal setting and risk taking down through the organization."

This kind of environment is one that is ripe for growth.

Leading the Diverse Workforce as a New School Manager

With all of the diversity in your workforce, new school leadership takes managers who are trained to focus on what people do (their behavior) rather than their attitudes or personal characteristics. They also must possess critical skills necessary to delegate, evaluate performance, deal with complaints and resolve conflicts in a positive and effective way. They support each team member's sense of self-respect and dignity.

As Connor says, "They create a strong team approach to projects, programs, objectives and solving problems. They encourage cooperation and open, honest communication. They reward creativity, mistakes that contribute to improvements and honest feedback."

Benefits of New School Leadership

Whether you have leaders who are new, experienced or aspiring there are many benefits to bringing your leadership into a more forward thinking, culturally and relationally sensitive way of approaching work. The benefits of this new leadership are:

• Retention
• Morale
• Productivity
• Improved customer and supplier relationships
• Open communication and discovery of issues as a chance for positive change
• Become known as a great place to work to improve recruitment
• Maximization of talent and resources

"You do not lead by hitting people over the head - that's assault, not leadership". - Dwight D. Eisenhower

Connor, Tim. The Times, They are Changing. [Accessed: June 25, 2007, woopidoo.com]

Galagan, P. (August, 2006). Engaging Generation, T & D.

 If you would like to develop skills in adapting your leadership styles to focus on behavior, check out The Training Bank's Adaptive Leadership program. Here's a link to the course description. (Click here)  I have be running this program myself for several years and it has received rave reviews.

Tom Watson is an affiliate of The Training Bank and President of Watson Training and Development, Inc.

 

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How to Make Employee Training Stick

By Tom Watson

Untrained employees present a bad image for your company.  If your workers understand your products or services but cannot communicate effectively with customers, your business will suffer.  If your customers do not get the attention from employees that they deserve, they will take their business elsewhere.  And if employees can’t get along with co-workers or work as a team, morale and productivity will suffer.

Another view of training

Many companies fail to realize that employee training and development is an underused and underdeveloped method of customer retention.  These companies train their employees in how to do their jobs (run a cash register, operate a computer, etc.) but not how to interact with customers or work as a team.  Both are equally important.

Recent studies conducted by the American Society for Training and  Development (ASTD), found that the average company in the United States spends only 1.4 percent of its annual payroll on employee training; training that reaches only 10 percent of the workforce.  The ASTD has estimated that if a company invests 2 to 5 percent of its annual payroll on training, it should realize about a 10 percent increase in net profit.  The ASTD also reports that over the past 50 years, companies have realized a greater return on investment in employee training than on investments in capital improvements.

What employees need to know

It appears that the most effective training programs for increasing productivity and retaining customers include: customer service training; team building; communication skills; and basic sales training.  Over the past twenty-five years, my company has been offering those types of courses to companies scattered between Texas and Guam.  Our clients report that training does impact their operation, especially in the areas of customer service, employee morale and productivity.  However, I’ve noticed that some of our training, albeit a small amount, has not transferred back to the workplace—it didn’t stick.  Obviously, whenever training doesn’t have the intended effect, it is of great concern to our company.  After all, we are in the business of delivering information and skills people will use after attending training.

Our research has shown that when training doesn’t transfer back to the work place, it is usually the result of the following: employees do  not see the relevance of the training to their jobs and/or management does not provide employees with the necessary support and reinforcement of those skills learned.  This is true regardless of the quality of training provided.

How to make it stick.

Be sure that you select the most appropriate employees for training and that the employees understand why they have been chosen.  This can best be accomplished by meeting with small groups of employees to explain how the training relates to their jobs and why it is important that they learn and then apply what they learn.  Explain how the training can help them improve their performance and what that means to them and the company. 

It is equally important to reinforce and support employees after training.  Meet with your employees and discuss what was learned and how it can be applied on-the-job.  Ask your employees what you can do to help them succeed with their new skills.  Provide some coaching if they have not completely mastered what was learned.  Be sure to provide positive feedback whenever employees apply new skills on-the-job.  Behaviors that get recognized and praised are usually repeated.  

By training your employees, you can have a more productive workforce and retain and satisfy more of your customers.  This training will “stick” if it is seen as relevant and is reinforced in a supportive environment.  Employee training need not be an expense.  It can be an investment.  

 

Tom Watson is an affiliate of The Training Bank and President of Watson Training and Development, Inc.

 

 

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What we have here is a failure to communicate!

By Dr. Tom Watson

Business Issue

Many people fail to realize their effectiveness as a manager or supervisors stands or fails on their ability to communicate. No matter what organization you’re in, department you lead, team members you have, or person you are...to manage is to communicate. The ability to communicate effectively helps build a well-oiled and productive organization.

Some Perspective

Consider warehouse manager Paul’s style: Paul barges into the warehouse in a heated rage, waving his arms wildly. He is incensed at the slow down in the days shipping as a major client order becomes delayed. Without asking questions, he begins barking orders to the shipping supervisor, Ray. Paul believes Ray should “light a fire” under the staff, and under the packing crew, so that the materials will be boxed quicker and ready for shipment. Ray tries to interject some valuable information to Paul to no avail. Paul turns and leaves in the same huff he entered with.

Had Paul been less dominant and overbearing in his style, he would have taken a moment to visit with Ray about the real cause of the slow down. He would have discovered that it had nothing to do with the packing crew and everything to do with a lack of supplies to fill the order.

What happened to Paul? He was a top performer on the shipping line and seemed to get along well with the team. But ever since he was promoted to warehouse manager, he has had a difficult time. How many Paul’s do have in your organization?

Great contributors do not automatically make great leaders.
Our experience has proven that the communication skills required to perform as an individual are fundamentally different from the skills critical to leading a team.

Here are seven warning signs that you may have a Paul on your hands:

• Uncontrolled emotional outburst.
• Acts like he/she is smarter than anyone else on the team.
• Gets angry fast, especially when someone communicates something is wrong
• Quits having team meetings in order to give more time for work
• Uses methods/programs for productivity improvement without getting input from the team
• In conversation with team members, he/she interrupts and dominates the conversation without showing concern for other members’ views.
• When you need him/her, he or she is usually unavailable.

A Solution

The supervisory skill level of first-line supervisors affects team member retention, overall productivity, and even profitability. It’s the relationship between team leader and team member, built on mutual trust and respect, that builds a strong relationship. It begins with effective communication.

In order to communicate effectively, make sure that you:

ü       See that communication is a two-way process.

ü       Construct clear, concise messages in the interest of the listener.

ü       Manage nonverbal behaviors to reinforce the intent of your messages.

ü       Listen actively to improve communication.

ü       Create a climate of open communication, which increases team members’ motivation and commitment.

Communicating this way will improve your relations with team members and increase productivity, and will ensure that you will not hear:   “What we have here is a failure to communicate!”

Quote for the Day

"The greatest compliment that was ever paid me was when someone asked me what I thought, and attended to my answer." - Henry David Thoreau

 

Tom Watson is an affiliate of The Training Bank and President of Watson Training and Development, Inc.

 

 

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Pay Now or Pay Later

Why employee financial education should be a priority

By Dr. Tom Watson

Money — the more you make, the more it takes, or so it seems. This statement applies to employers as well as employees. While most businesses struggle with the challenge of doing more with less, employees struggle with the same challenge and are drowning in debt more than ever. While some debt may be necessary for both employers and employees, too much debt is usually the result of poor money management. Financial education, offered to employees by their employer, can be one of the best investments employers can make.

Stress hits productivity

According to research, more than one-third of employees are stressed about financial issues, with as many as 50% of them slowing productivity as a result. Other studies show that 90% of employees are dissatisfied with their financial wellness, 75% are insecure about retirement, and 50% hold a part-time job. Employers are surprised to learn that about a third of these employees waste 20 hours a month dealing with money matters on-the-job, are less productive, are absent more often from work, and also suffer from health and family problems.

Teaching employees about money

Since the Enron bankruptcy, many policy makers and other leaders at both the national and local levels have called for a greater focus on financial education. It has been shown that financial education programs can benefit all employees, regardless of their financial status. The National Institute for Personal Finance Employee Education (NIPFEE) has calculated that the first-year return on investment in workplace financial education, even for employees who make only slight improvements in their financial wellness, is more than $400 per employee (e.g., fewer absences, less time dealing with financial matters, and increases in productivity). Here’s an eye-opener — the NIPFEE estimates that the potential return on investment for employers who provide workplace financial education is at least 300 percent.

Some organizations have used financial education to help recruit and train their employees. This type of education also fulfills the requirement from the Department of Labor for employers offering defined-contribution pension plans, such as the 401(k).

Everyone reaps benefits

One popular financial education program, offered by companies like General Motors, US Steel, Exxon/Mobil, Daimler-Chrysler, Xerox and Ernst & Young, teaches employees how to give themselves a 35% raise by eliminating their personal debt.  Although this sort of raise doesn’t require a company to touch a dime of its payroll, it conveys a message of goodwill to employees and helps them to become more engaged with their work. Employees learn how to reach their financial goals using the money they make now. They have less stress and feel less pressure to make more money.

Besides being a sound investment in employees, a quality financial education program would benefit your business for years to come. Workers will be more tolerant of budget cuts that prevent expected increases in pay, there will be fewer employees working second jobs or looking for higher paying jobs, and employees who are more cost-conscious at home should be more cost-conscious at work.

Companies lose through doing nothing

Unfortunately, most employers ignore workers who have personal money management problems because they do not realize the high cost of doing so. The reality is that workers’ personal financial management problems cost employers a lot of money.

The bottom line for most companies is that you can pay now or pay later. If you chose to offer your employees a good financial education program, the investment you make in your employees will not only enable them to better manage their lives, it will enable your workers to better manage the future of your business. Their future is your future.

 

Tom is an affiliate of The Training Bank, President of Watson Training and Development and author of From Debt to Wealth. You can get a copy of his book from our bookstore.

 

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