Personal Effectiveness
Continuous Learning
By Brian Tracy
Throughout the developed
world, we have moved from an era of manpower to an era of mind
power. We have moved from the use of physical muscles to the use of
mental muscles. Today the chief sources of value in our society are
knowledge and the ability to apply that knowledge in a timely
fashion. In the information age, knowledge is king, and those people
who develop the ability to continuously acquire new and better forms
of knowledge that they can apply to their work and to their lives
will be the movers and shakers in our society for the indefinite
future.
read more...
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to top
Transforming Bad
Habits
By Brian Tracy
Your habits have been
developed from early childhood as the result of things that you have
chosen to do, or not to do. Your entire life is the result of your
past choices and decisions. And like all of us, you probably have
some bad habits that have held you back from your true potential.
But here’s the good news: Since you are always free to choose, you
can make new choices and decisions today that will determine what
happens to you in the future.
read more...
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to top
Do Companies
Really Care About and Value Their Customers?
By
Ray Miller
Apparently not enough!
Last week American Express released the findings of its Global
Customer Service Barometer,
a survey conducted in the U.S. and eleven other countries exploring
attitudes and preferences toward customer service.
Following the release of this survey I expected to hear alarm bells
going off across the corporate world but so far at best I have heard
only a resounding tinkle. Maybe it’s the dog-days of summer or
perhaps the FIFA final last week. Regardless, these survey results
are an important wake-up call and if you want to improve you
organization’s performance you will want to have a hard look at it.
We
all know that there is plenty of corporate rhetoric and advertising
which espouses the importance of the customer but I am sure you will
agree that actions speak louder than words. Far too many companies
are not living up to their promises and the Amex survey results
confirm this.
Depending on where you conduct business, 4 to 6 out of 10 customers
believe
that most companies are helpful, but don’t do anything extra to keep
their business. While on the surface this may seem to be acceptable,
given the fact that the vast majority of customers (90% or more)
want greater value in the form of an exceptional service experience,
this number becomes significant and perhaps, scary.
To make matters
worse a further 2 to 3 out of 10 feel that the companies they
conduct business with take them for granted or don’t care.
Most people seem
to feel that their service experience has not changed or it has
become even worse. In numerical terms, it suggests that 8 or 9 out
of 10 customers may be at risk.
The research
further indicates that roughly nine in ten customers or more
find customer service to be important when deciding on companies
with which to do business particularly during the current economic
environment. The only markets not affected appear to be France, the
Netherlands and Japan where it seems that the service experience is
not as important.
It doesn’t take
an MBA to realize that the customers at risk are quite likely the
same ones that consider service to be important, especially in the
current economic environment.
Last week I also
saw some research which suggested that you should not focus on
delighting customers, but rather focus on a positive customer
experience. Keep in mind that from the customer’s point of view,
there are three possible experiences; Negative, Neutral and
Positive.
Dissatisfy =
Negative
Exceed
Expectations = Positive
Satisfy =
Neutral
Remember if all
you do is Satisfy customers this means the experience they have had
is actually one which is nothing more or less than they expected.
Certainly not an experience which they will tell others about. This
becomes significant considering the survey findings which indicate
that close to 90% of customers are highly influenced by the
recommendations of friends and family. And if a customer expected a
mediocre experience, this will hardly guarantee any repeat business.
I don’t know
about you but if every company that I dealt with focused on a
positive experience, I would be both shocked and delighted.
The Amex study
also revealed that the criteria used by most customers when making
buying decisions these days includes: (in order of importance)
-
Value for
the price
-
Overall
quality of customer service
-
Knowing the
company will be there to resolve any problems
-
Benefits the
product or service provides
-
Convenience
-
The way the
product or service makes me feel
Customers appear to think that the three most influential factors
when deciding which companies they do business with include personal
experience (98%), a company’s reputation or brand (92%), and
recommendations from friends and family (88%).
Upon closer
analysis of the Amex research findings, the companies at greatest
risk of losing a significant percentage of their customers are
located in Canada, the UK, Australia, and Italy where only 10 to 15%
of customers report they feel valued and have any sense of loyalty.
In the USA 24% of customers feel valued. And while that number is
better than others, it means that 7 out of 10 customers are at risk.
Here’s the wake up call.
Clearly customers are focused on getting good value for their money.
A high percentage indicated that companies haven’t done enough to
improve their approach to service in this economy. If you don’t act
now, you will lose customers.
There is a huge Pay-off for any Company serious about
enhancing the customer experience.
There
is plenty of empirical evidence which supports the view that
customers are willing to pay more when they believe that the company
they are dealing with delivers excellent service and demonstrates
that they value the customer’s business. The Amex study has
reconfirmed this and the pay-off is significant. Depending on where
you conduct business, customers are willing to pay from 7% to 11%
more.
In
addition, current thinking suggests that it is 5 to 7 times more
expensive to acquire new customers than it is to keep the ones you
have. AND, loyal customers cost less to serve so a greater
percentage of each sale finds its way to your bottom line.
While
we are at it, did you know that the cost of poor service is
typically between 25% and 35% of your gross operating expenses?
What Next?
You
have several options.
Door
#1: You can “stay the course” and deal with a smaller customer base.
This is probably fine since you will need to eventually cut back on
more staff anyway.
Door
#2: You can focus on acquiring new business. That should get you
plenty of new faces to replace the ones which will be leaving out
the back door. At least until they have a service issue and don’t
feel valued.
Door
#3: Make customer focus a strategic part of your business plan. Not
when the next budget cycle starts, but now.
If you
decide to go with what’s behind door #3, here are some thoughts to
get you started.
In a
Customer-Focused organization, Leadership, Processes and People are
customer-aligned. This means that:
n
Every action is shaped by a relentless commitment to meeting
and exceeding customer expectations regarding product and service
quality.
n
Customer
touch points and supporting internal processes
are
constantly evaluated
and improved
to meet or exceed those expectations.
n
Employees
are aware of their role in maintaining a valued relationship with
their external and internal customers.
-
Use a
piloting approach to role out your customer focus strategy.
Learn, adjust and then roll out, while using managers involved
as internal change agents and catalysts.
-
Make this
issue important. Don’t hand everything over to HR or Marketing.
Identify a Senior Sponsor who is passionate about the customer
experience and provide the budget and resources needed to make
it happen.
-
Create a
balanced set of customer-based measures as key indicators to
manage the business and enable real accountability for them.
-
Design
Customer Focus from the outside in. It needs to be driven by the
Voice of the Customer and deliver it from the inside out by
using the Voice of the Customer to drive internal deployment,
culture change and alignment.
-
Conduct
external measurements and surveys first and act on them with
clear priority setting and assigning accountability for
outcomes.
-
Ensure your
employees gain the knowledge and skills they need in order to
understand and execute their Customer Focus role and get them
trained.
-
Ensure that
your People/HR team translates the customer needs into Customer
Focused hiring specifications.
-
Ensure that
the performance management system is aligned to embody Customer
Focus, and that your measures and rewards encompass the desired
Customer Focused behaviors and skills.
-
Ensure that
team leaders, supervisors, managers at all levels and senior
leaders are trained to lead by example and do what is needed in
order to build and sustain a customer-focused environment. We
call this Customer-Focused Leadership.
If you are
wondering how customer-focused you are, visit our website and
complete our free How Customer-Focused Are You? online assessment.
Thousands have completed it and found it to be quite revealing.
Here’s a link. (click here)
If you are not
sure where to start, get some external help. We have been helping
our clients sharpen their customer focus for over 20 years. Any
gains you realize in the short term will more than offset any
investment you make. And we can show you how.
If you
have not seen the summary of the American Express Global
Customer Service Barometer results (click here). Amex gave us
permission to post it on our websites, so feel free to have a look.
The
opportunity is significant for any Company willing to do what it
takes to join that small number of highly successful
customer-focused organizations.
Ray Miller is
the author of That's Customer Focus and Managing Partner 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.
Copy of
American Express Global Service Barometer Press Release
Provided
with permission of American Express
Americans Will Spend 9% More With Companies That Provide Excellent
Service
-- But Two-Thirds Feel Companies Aren’t Doing Enough to Earn
Their Business --
-- Service Is Even More Important in Tough Economic Times --
New
York, July 7, 2010 –
A majority of Americans report that quality customer service is more
important to them in today’s economic environment (61%) and will
spend an average of 9% more when they believe a company provides
excellent service. However, in a challenging economy where growth
is harder to achieve, many businesses are missing out on this
opportunity. Although only a little more than a third of Americans
(37%) believe that companies have increased their focus on providing
quality service:
-
27% feel businesses have not changed their attitude toward
customer service.
-
28% say that companies are now paying less attention to
good service.
These
findings were released today in the American Express Global
Customer Service Barometer, a survey conducted in the U.S.
and eleven other countries exploring attitudes and preferences
toward customer service.
“Customers want and expect superior service,” said Jim Bush,
Executive Vice President, World Service. “Especially in this tight
economic environment, consumers are focused on getting good value
for their money. Many consumers say companies haven’t done enough to
improve their approach to service in this economy, and yet it’s
clear they’re willing to spend more with those that deliver
excellent service – suggesting substantial growth opportunities for
businesses that get customer service right. It’s important to see
customer service as an investment, not a cost.”
Almost
All Agree Service is Important, but One in Five Feel They’re Taken
for Granted
Not
surprisingly, nine in ten Americans (91%) consider the level of
customer service important when deciding to do business with a
company. But only one-quarter (24%) believe companies value their
business and will go the extra mile to keep it. Most feel businesses
can do more to retain their loyalty:
-
48% feel companies are helpful but don’t do anything extra to
keep their business.
-
Worse, 21% believe that companies take their business for
granted.
Good
News Travels Fast – Until You Go Online
Importantly, customers are spreading the word willingly and widely
when they experience good service. In fact, contrary to conventional
wisdom, customers are more inclined to talk about a positive
experience than complain about a negative one. Three-quarters (75%)
are very likely to speak positively about a company after a good
service experience in contrast with 59% who are very likely to speak
negatively about a company after poor service.
Good
service experiences also carry more weight than bad ones when
Americans make future spending decisions. Consumers are far more
likely to give a company repeat business after a good service
experience (81%) than they are to never do business with a company
again after a poor experience (52%).
In
fact, consumers say the three most influential factors when deciding
which companies they do business with include personal experience
(98%), a company’s reputation or brand (92%), and recommendations
from friends and family (88%).
Nearly
half (48%) of consumers report always or often using an online
posting or blog to get others’ opinions about a company’s customer
service reputation. But when consumers go online they’re looking for
“watch outs,” saying they put greater credence in negative
reviews on blogs and social networking sites than on positive ones
(57% and 48%, respectively).
“The
Internet has made service quality more transparent than ever
before,” Mr. Bush said. “In the online space, positive
recommendations are important, but people often give more weight to
the negative. Because consumers can broadcast their views so widely
online, each and every service interaction a company has with its
customers becomes even more crucial. Developing relationships with
customers, listening to them, anticipating their needs, and
resolving any issues quickly and courteously can help make the
difference.”
Two
Strikes and You’re Out. Or Is It One?
A
negative service experience is an important factor for most
Americans: 81% have decided never to do business with a company
again because of poor customer service in the past. When asked how
many poor experiences they allow, half of all Americans (50%)
reported it takes two poor service experiences before they stop
doing business with a company.
Importantly, consumers are far more forgiving if a company has
earned their trust over time. Almost nine-in-ten consumers (86%)
report they’re willing to give a company a second chance after a bad
experience if they’ve historically experienced great customer
service with that company.
But
companies who get it wrong should realize it’s at a cost.
-
Half of consumers (52%) expect something in return after a poor
customer service experience, beyond resolving the problem.
-
Most consumers (70%) want an apology or some form of
reimbursement.
Service Leaders Recognize the Value
Companies with reputations for great customer service take different
approaches, however they share the common understanding that
investing in service truly pays off.
"While
customers appreciate the plush surroundings of our five-star hotels,
we know that luxurious touches don't matter to guests unless the
service surpasses the setting," said Simon Cooper, president, The
Ritz-Carlton Hotel Company LLC. "Trends may change, but a focus on
service excellence is timeless."
"What
many people refer to as ‘great service’, we call hospitality,” says
Susan Reilly Salgado, managing director of Danny Meyer's learning
business, Hospitality Quotient. “Service is all about the technical
delivery of the product, while hospitality is about how guests feel
during that transaction. Hospitality happens when guests believe you
are on their side. For people to rave about their experience and
become repeat customers, you need to have both - but what surprises
customers and makes them feel genuinely cared for is the
hospitality. And that’s the reason people love to talk about those
fantastic experiences – because they surpass expectations."
“By
focusing on our company culture, we've been fortunate to hire great
people where providing great service is in their DNA. We always have
been and continue to grow through word of mouth. If you treat the
customer how they should be treated and form personal connections
with them, they'll want to tell others about it,” said Aaron Magness,
senior director, brand marketing and business development,
Zappos.com.
Service is Valued Everywhere, but Views Vary Globally
Similar to their U.S. counterparts, a majority of consumers in all
but one country surveyed feel that customer service has become more
important in the current economy:
In
most countries where the highest percentage of consumers feel that
service is more important today, there is a corresponding belief
that companies have increased their focus on providing good customer
service:
-
65% of Indian, 49% of Japanese and 47% of Mexican consumers
agree with this statement.
However, some consumers are not feeling the love. In Australia
(71%), Germany (66%), and Canada and Italy (65% each), consumers say
they feel companies haven’t increased their focus on service or are
paying less attention to it.
This
can spell trouble and lost opportunity for companies, given that
consumers around the world consistently express a willingness to
spend more with companies that provide excellent service:
Average Percentage More That Consumers
Are Willing to Spend
About
the American Express Global Customer Service Barometer
The American Express Global Customer Service Barometer
research was completed online among a random sample of 1,000 U.S.
consumers aged 18+. Interviewing was conducted by Echo Research
between April 13 and April 20, 2010. Overall, the results have a
margin of error of +/- 3.1% at the 95 percent level of confidence.
The same survey methodology was used in Canada, Mexico, France,
Germany, Italy, the U.K., Spain, the Netherlands, Australia, India
and Japan.
Back to Article Do Companies Really Care
About and Value Their Customers
Why Customer
Focus Training is a Strategic Investment and NOT an Expense
By Ray Miller
It’s time to
set the record straight. Customer Focus Training is NOT an Expense.
It is a strategic investment and here’s the proof.
Look, I know
you have a lot to think about these days. I run a business as well.
The pressures of managing your bottom line, worries about the impact
of a global pandemic, rising benefits and health care costs (for
some of you), and a seemingly never ending list of problems weigh
heavily. I’m sure that for some of you there are some days you would
like to lock your door, turn off your telephone and just get away
from it all. While I can’t help you deal with all these issues, I
can show you a way to come out the other side of this current
dilemma with a strong, vibrant and profitable organization.
I know, you’ve
heard it all before. But hear me out. Let me prove to you
that using training to create a customer-focused organization is one
of the best strategic investments you will ever make!
As an expert in this subject matter
I spend a lot of time looking at research studies, customer
feedback, customer commentary about various companies they deal with
and customer trends. From all of these data I have compiled a list
of ten compelling reasons why customer focus training should be
viewed as a strategic investment.
10. 80% of companies believe they deliver a superior Customer
Experience; however, only 8% of their customers agree.
This
represents a significant difference in perception and since it is
the customers’ perception that drives their buying behavior, this is
pretty scary.
9. Beyond price and product quality, your customers value how they
are treated. Only 12 -14% of customers leave for product reasons
while 68% leave because of poor treatment by employees.
To make matters worse, believe it or
not, most of your customers do not complain about poor service
because they don't think it will do any good.
8. Only about 4% of unhappy customers ever complain when it comes
to how they were served; 90% do not bother to complain and simply go
elsewhere.
Your customers are looking for
maximum value when spending their hard-earned cash, particularly in
this economy. While they will likely complain about the product or
price if it is not delivered as expected, when it comes to their
service experience or lack thereof, they won’t bother complaining.
7. Depending on the report you look at, from 85% to 95% of senior
business leaders believe that the next competitive differentiator is
Customer Experience.
The customer experience requires the
active participation of everyone in your organization. Creating and
implementing a comprehensive Customer Focus strategy will
differentiate your business.
6. In this market,
companies are losing at least half of their “satisfied” customers.
“Satisfy” means to
provide nothing more or less than the customer expects. Customers
want to deal with those who demonstrate that their business is
valued. Creating a Customer-Focused Culture is a proven strategy for
both short-term success and long-term growth.
5. The average value of customers is 8 to 10 times their initial
purchase depending on the research we have reviewed. The cost to
attract a new customer is 5 to 6 times more than your cost to save
an existing customer.
Keeping your existing customers is
cheaper and more profitable than getting new ones. Too many
companies are continuing to focus their marketing efforts on
obtaining new business, sometimes at the expense of their existing
customers. Others are attempting to create loyalty but not providing
their employees with the knowledge and tools they need to function
in a way which actually creates customer loyalty.
4. The cost of poor
service ranges between 25% to 35% of your operating expenses.
Aligning internal processes and ensuring every employee understands
how he or she contributes to the customer experience will reduce the
cost of poor service. Why not move the total of these expenses from
your expense journal to your operating profit.
3. Low customer focus companies average a 1% Return on Sales and
lose 2% market share a year. High customer focus companies
historically average a 10 -12% Return on Sales and grow, on average,
5 - 6% a year.
Customer Focus is a
profit strategy.
2. A 5% increase in customer loyalty will contribute between 25%
and 125% directly to your bottom line.
The potential sources of revenue are
substantially greater than what it would actually cost to ensure
your Organization is truly customer-focused.
1. If you wait, it will be too late!
The time to act is now.
Even your best customers are looking for the greatest value for
their hard earned cash. The current economic situation has resulted
in even higher expectations of service and unless your employees do
everything they can to exceed these expectations now, these
customers will be gone by the time the economy has turned around.
Okay, so forget about
the fact that:
·
most top
business leaders believe Customer Focus is the single greatest
differentiator,
·
most of
the best performing companies right now rate extremely high in
customer focus,
·
the main
reason why these company perform well is because the
owners/managers/senior executive are passionate about customer focus
and have enable all their employees to deliver extraordinary service
from the inside out, and that
·
most of
your customers are demanding better service and they are willing to
pay for it.
Just look at the
numbers. You do the math! Do a couple of simple calculations based
on the research findings above to determine what your return on
investment could be if you got passionate about becoming truly
customer-focused.
If you want to justify the investment
associated with training your staff, try completing the following:
A. What are your
customers worth?
Enter
the average annual amount a customer spends for your products and
services:
B. What is your
customer attrition rate?
Enter the number of customers you lose annually:
(if
you don’t know how to calculate this, give us a call)
C. Multiply A X B =
D. What is your net margin as a percentage of
Gross income?
E. Multiply C X D =
F. What is your
current cost of poor service?
Enter your total
operating expenses:
G. Multiply X 5% (although research suggests 20 to 30%)
H. Add E + G =
I. What would it
cost to train your employees?
(For third party
training services this can typically range from $200 to $300 per
person depending on the provider. If you don’t know, contact us and
we will tell you.)
J. Subtract I from H =
K. How much will now be added to your bottom line? (insert result
from J)
Most people who complete this calculation end up with a surplus. In
your first year if you simply break even you are still ahead of the
game. The bonus is you will stem the flow of customers leaving your
company instead of replacing them with new customers who cost at
least 5 times more to acquire.
While training is not a panacea and it is certainly not the only
thing that needs to be done to build a customer centric culture, for
many it seems to be one of the biggest obstacles, in part because it
is viewed as an expense.
There
is an expression, “You have to speculate to accumulate”. Proven
customer focus training which is customized to reflect your
strategic service goals and objectives is not speculative. It is a
sound investment which can yield an exceptional return.
Ray Miller is
the author of That's Customer Focus and Managing Partner 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.
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:
-
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?
-
About 75% will do business again if the
problem is resolved to their satisfaction.
-
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.
-
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.
-
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%.
-
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?
-
Deprived of equity / justice
-
Lack of respect
-
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.
-
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
-
Use a piloting approach. Learn, adjust and then roll out, while
using managers involved as internal change agents and catalysts.
-
Allocate role of Senior Sponsor for the initiative.
-
Create a balanced set of customer-based measures as key
indicators to manage the business and enable real accountability
for them.
-
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).
-
Conduct external measurements and surveys first and act on them
with clear priority setting and assigning accountability for
outcomes.
-
Do not conduct internal climate or employee satisfaction until
the Customer Focus initiative is well underway, organized,
structured, resourced and communicated.
-
Ensure that your People/HR team translates the customer needs
into Customer Focused hiring specifications.
-
Ensure that the performance management system is aligned to the
Customer Focus initiative, and measures and rewards to desired
Customer Focused behaviors and skills.
-
Ensure that middle managers and senior leaders lead by example
and do what is said; avoid the Say-Do gap trap.
-
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
If you would like a
pdf version of this article, please
click here
and we will send you one.
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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:
-
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
-
Recovery is a
test of character!
-
Build or destroy the relationship
with the customer by how you handle complaints and problems.
-
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:
-
How do we begin
to emphasize WHAT we communicate to our employees, after so many
years of focusing on HOW we communicate?
-
How do we use
information to help our employees get closer to our customers,
when our corporate culture may lack basic trust in people?
-
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?
-
How do we use
information as a strategic tool to make it easier to manage our
organizations?
-
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:
-
M o re
organizations need to think longer and harder about the people
factor in customer service,
and
-
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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Customer Focus
in a Slow Economy
By Ray Miller
I wanted to call
this article “Sharpen Your Customer Focus or You Will Lose
Customers!” but a few of my colleagues thought this was a bit
too blunt. Absolutely true mind you, but blunt.
Then I thought why
not make the headline a question; “How Many Customers Are You
Willing To Lose Today Because of a Lack of Customer Focus?”
Again, true but too direct. So in the end I went with what you see
above.
So here we are
again. The economy is getting tough and for many, life is stressful
and difficult. For business, this is not new. We’ve all been here
before. Hopefully we’ve learned from the last time the economy
slowed … But then again, have we?
Nobody wants to lose
customers but you know as well as I that when the economy gets
tough, many organizations go into reactive mode. Their focus shifts
to cost control and the acquisition of new customers. History has
taught us that every time this happens, relationships with existing
customers can be put at risk. Financial responsibility is important,
as is getting new business, but not if it is at the expense of your
existing customers.
Allow me to explain.
During an economic downturn most customers
will be looking to increase value for their money. They will try to
make their hard earned cash go further and you can be sure that they
will be more critical when making buying decisions.
With less disposable income, customers
will be less forgiving of a mediocre or poor service experience. And
don’t forget that when it comes to service, the vast majority, 90 to
96%, will not complain and most will simply go elsewhere. You can
bet that they will want to deal with organizations that demonstrate
that they want and appreciate their business.
You can also be guaranteed that your
customers will be strongly influenced by the commentary of their
friends, acquaintances, family and colleagues when it comes to
recommendations for products or services and providers.
As I mentioned earlier, when economic
conditions become more demanding, far too many organizations focus
on cost cutting and acquiring new customers which invariably puts
the relationships with their existing customers at risk.
Quite often training budgets are the
first to get cut. This includes all important training on things
like Customer Service and Leadership.
Process improvement plans get put on hold
often including process improvements that were intended to enhance
the customer experience.
Even though it is five times more
expensive to get new customers than it is to keep existing already
profitable customers, many organizations bolster their marketing
efforts trying to pull more customers in the front door, at the same
time virtually ignoring their existing customers who simply walk out
the backdoor looking for someone who wants and appreciates their
business and proves it through their actions.
The retention of existing customers is all
the more important during difficult economic conditions. Research
proves that existing customers are more profitable and improvements
in your operating expenses and resulting bottom line can be achieved
through maintaining a high level of customer focus. Just to remind
you, don’t forget a five percent increase in customer loyalty can
contribute from 25% to 125% directly to your bottom line.
Remember that your customers always have
the choice of buying from you or your competition. When times are
tough, that choice becomes even more important.
Implementing a customer focus strategy
will create valuable and long-lasting relationships with your
customers that will provide a secure and growing revenue stream.
Focusing on
getting the customer experience right is critical. Making sure that
your customers choose you over your competition is essential. If you
get it right when times are tough you will certainly reap the
benefits and rewards of unleashing the power of customer focus as
conditions improve.
So this time, why
not dare to be different. Why not unleash the potential of customer
focus, while everyone else has their eye off the ball.
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
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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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Qualities of Leadership
By Ray Miller
This is the first
article in a six part series which discusses the Qualities of
Leadership. Why six parts? Most people to under time compressed
these days and don’t have the time to sit and read at length. On the
other hand, everyone can find 3 minutes if they had to. So we
decided to divide this series into six three minute “sound bites” if
you will.
In this article we
will discuss leadership in general terms. Then in the five articles
which follow, we will explore the Ten Qualities of Leadership in a
bit more detail.
For
decades organizational scholars have debated the qualities of a
"leader." What are they? Is a person born a leader or can they be
trained as a leader? Can anyone learn to be a leader? Can an
employee be a leader or do you need to have people reporting to you
to lead? The list goes on and on. In our leadership training class
we routinely ask the audience to define the qualities of a leader.
Many participants suggest traits like "charismatic," "confident,"
"visionary," etc. Occasionally, someone will offer what we think is
a truly distinguishing observation. "You don't often notice or think
about the qualities of a leader. What's noticeable is how they make
you feel."
That's it in a
nutshell.
What
really defines a leader is his or her ability to make individuals feel
committed to a cause or challenge. But not only do they
feel committed, they take action. The term "follower" sounds like an
obedient golden retriever but we'll use it anyway. Leaders make
those that choose to follow them feel important and significant.
Leaders have a genuine, unquestioned respect for the individuals
around them. Their decisions are decisive and well founded in
arguments that support the core values of the company, its customers
and its employees. Because they're human, leaders make mistakes and
own them - and they expect and tolerate mistakes from others. They
know that their power rests on the relationships they build with
others - and that titles and authority alone won't earn respect.
They're consistent in their actions and words and show no
favoritism. When the company faces a significant challenge or
uncertainty, the leader's calm demeanor bolsters confidence and
motivation in others. Leaders believe that their followers are
capable of anything and as a result, so do their followers.
No doubt you know
someone who you would consider a leader. Maybe it's a manager you
work with - maybe not. It may not even be someone you know from work
such as, a coach, teacher, friend, etc. But something about that
person caught your attention, your imagination and your admiration.
Chances are they made you feel significant. They made you believe
you were capable of more than you thought. They made you dream - at
least for a moment. That's what leaders do.
Ask a hundred
management scholars and you'll get a hundred different opinions on
the qualities of leadership. The good news is that when you boil
them all down there are some very common themes that appear.
This article offers
an overview of Leadership in general terms. I will describe
the key competencies or characteristics associated with leadership
in two follow-up articles, so stay tuned.
First let's discuss
"leadership" in some general terms.
What is Leadership?
Leadership
is unique. It occurs when an individual with the right motivations
meets the right opportunity. Some people, maybe all, have the
qualities of leadership but never get the chance to demonstrate
them. They wait their whole life for that single situation that
forces them to reach deep down and find the courage to step outside
what's comfortable. But naturally, most people fear the unknown.
They fear the ridicule of taking a stance or an unpopular position.
So instead, they wait for someone else to step forward and take that
chance. Often times the person that steps forward is ostracized as a
"non-team player" because they don't conform to popular wisdom. Just
look at the way some groups make decisions. In the long run their
vision can direct the company to new opportunities. Other times
someone with leadership potential may grow frustrated because their
company offers no opportunity to exercise that potential
If
you're serious about developing your leadership qualities recognize
that it should be a life long pursuit - and one that you'll never
fully achieve. How could you? A leader accepts that he/she can always improve. By acknowledging yourself as a leader you'd be
forfeiting one of the true traits of a leader - humbleness.
Let others decide you're a leader by your actions and attitude. And
remember, leadership spills outside of the workplace. Can you really
be an effective leader at work if you don't devote the same
intensity to your personal and physical life?
Truly effective
leaders maintain a healthy balance among all facets of their life.
The two are inseparable. Your family, your friends, your physical
fitness, your commitment to community and fellow man, your
spirituality, your thirst for knowledge - all play a role in shaping
your leadership qualities.
To help you
understand what leadership is it is sometimes easier to describe
what it is not. Here’s a short story to help you
A Lack of
Leadership
A
consultant was working with a team charged with the development of a
client-server based, project management application at a large bank.
The process of managing projects cut across all departments and
functions so, of course, opinions were plentiful. No sooner did the
team get out of one meeting and they'd be back in another. They'd
work into the night to build a prototype to meet one group's
specifications then find out someone else didn't like it. Still,
implementation dates were set, communications sent out and training
scheduled - yet they couldn't get buy in on the system - they didn't
even have a process designed! And, they were building the project
management application? Frustration was beginning to manifest itself
in the destructive behaviors that tear apart a team - apathy,
cliques, anger, cynicism.....since the consultant assisted with
process and project management a couple of the members confided in
him.
The
team agreed it was time to go to senior management and ask for
support. At the meeting an adjunct member (Doug) posed a question -
"Shouldn't we get Senior Management to appoint a leader to oversee
this effort...?" The irony is, that all along there had been a
leader - John. John spoke up and acknowledged that the project was
off course and rattled off some reasons why - "Its scope is larger
than planned...", "Lack of support from other areas..." or "....end
of the year - it's tough to schedule work...." He accepted no
personal ownership for the problem. The meeting broke - those close
to the project knew John just got slammed like a screen door in
windstorm.
John
approached the consultant and suggested he and the consultant speak
with Doug to explain that John was project leader and get that
clarified. That's when the consultant took him in private.
In
the consultants' opinion, John had developed a very passive approach
to leading the project. Meetings were called on the fly, ill
attended, with no agenda or documentation. Facilitation fell to
whoever spoke the loudest since John's voice conveyed little energy
or confidence. Rarely were specific tasks assigned to members so
progress was difficult to gauge. Early on when team members had
concerns about a lack of buy in, John was reluctant to go to
management. He was indecisive - "maybe we should.... or I think we
might.... or we sort of have...." so there were few consistencies
the team could use to guide them. Rather than seek the ear of upper
management and gain consensus on a design, the team tried to appease
everyone. Needless to say there was no project plan that united
members - no plan to get from point A to point B. No vision.
The
fact that someone asked the question "Shouldn't we get a
leader......" is the crux of this story. Leadership by
appointment and title means nothing. What matters is the
opinion of followers. In the above example, Doug was the one showing
leadership by sticking his neck out to bring the problem into the
open. When a team is suffering members will rally behind the person
who steps forward - whether or not it's the person who owns the
title of leader. How many times have you seen it - problems persist
and team members flock to an un-appointed, informal leader with
their concerns instead of the formal leader? We all recognize
leadership when we see it. That in itself suggests some universal
traits. With a sincere commitment and a willingness to be
self-critical anyone can develop those leadership traits.
Based on our research and past experience
there are 10 Qualities of Leadership. Effective leaders:
·
demonstrate genuine respect
for others
·
show humility
·
demonstrate honesty and
integrity
·
are confident and courageous
·
are influential
·
are decisive
·
are effective communicators
·
establish and reinforce a
set of core values
·
are driven continuous
improvement
·
possess and encourage
physical, mental and spiritual health
As we will be
discussing each of these qualities in more detail in upcoming
articles, here’s a 40,000 foot snippet.
Leaders
demonstrate genuine respect for others
This is perhaps the
fundamental trait of an effective leader. If those around you
perceive a lack of respect for them - they'll never respect you.
Leaders show
humility
We all notice when
someone is humble. Likewise we notice the person who takes credit
for someone else's work. It's like the manager who can't admit
mistakes and inadvertently teaches his staff to hide theirs.
Leaders
demonstrate honesty and integrity
"Lying" may be too
strong a term. Actually honesty - or the lack of it - in
organizational terms is more subtle. It's how willing a person is to
dabble in the grey area. Did you ever hear someone justify a
situation by saying - "I didn't lie - you didn't ask me."
Leaders are
confident and courageous
Confidence is
contagious. It's also rare. Especially in large organizations where
things become paralyzed in decision making because there are so many
layers and levels of approval - it's refreshing for someone to step
out of bounds once in awhile.
Leaders are
influential
Unless a person can
influence others to follow their vision, they're not a leader.
Leaders have that something extra that gets others to buy into their
ideas and jump aboard.
Leaders are
decisive
Employees will
gravitate towards those who provide clarity and direction. That
requires someone to make a decision. Unless that's done the group
stagnates - and looks for a leader.
Leaders are
effective communicators
Have you ever
listened to someone present and idea when they're loaded with
enthusiasm and passion - but you're not exactly sure what they
said?! They know exactly what they mean but somehow it gets lost in
the presentation.
Leaders establish
and reinforce a set of core values
This is an aspect of
leadership that few people ever take the time to think about in
business - yet it's quite common outside work. Many people have
values that guide their life, their decisions - everything. What's
important to you at work? The next section describes core values
in behavioral terms.
Leaders are driven
continuous improvement
A leader is never
satisfied. Leaders are driven by an internal desire to constantly
improve the business, employees, relationships with customers, etc.
Without that desire a group stagnates. Work becomes ho hum and "good
enough" is standard practice.
Leaders possess
and encourage physical, mental and spiritual health
Without a balance in
your life you can't be an effective leader at work. The two are
inseparable. If you neglect your personal needs - family, physical
health, mental health, and spiritual - you'll lose your edge as a
leader.
Okay so the first
article took more than 3 minutes. Sorry but we had to lay a
foundation. I promise the remaining articles will stick to the 3
minute window.
If you have the time,
why not move on to our next article “Qualities of Leadership:
Genuine Respect for Others and Humility.
Ray Miller is Managing Partner 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 The Training Bank and That’s Customer Focus by
visiting
www.thatscustomerfocus.com or
www.thetrainingbank.com
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Qualities of Leadership
– Part 2: Genuine Respect for Others and Humility
By Ray Miller
This is the second
article in a six part series which discusses the Qualities of
Leadership. It builds on what was covered previously so if you
haven’t read the first article, be forewarned.
In this article we
will discuss in greater detail two of the qualities of leadership:
Genuine Respect for Others and Humility.
A
Leader Shows Genuine Respect for others -
This is perhaps the
fundamental trait of an effective leader. If those around you
perceive a lack of respect for them - they'll never respect you. The
key word there is perceive. You may say, "Of course I respect
them..." But, if their perception is you don't - their perception is
their reality. If history has demonstrated anything it's that when
one group lacks a genuine respect for others, when they allow
inequities, then resistance and conflict erupts. So how does someone
decide whether or not you respect him or her? It's in the way you
speak to them. It's in the way you listen. It's in how you thank
them for their effort (if you do). It's in how you credit them for
their accomplishments. It's how you apologize when you're wrong.
It's in the way you respond to their requests for help. It's in the
way you're sensitive to cultural and gender issues. It's in the way
you treat them no differently than you would the president of the
company.
Leadership Behaviors
which demonstrate genuine respect for others include:
1.
A Leader speaks to all coworkers, regardless of
position/title in a professional manner.
2.
A Leader takes time to listen objectively to the ideas and
opinions of coworkers. If situation does not allow for full
attention he/she offers an opportunity for follow up.
3.
A Leader thanks co-workers for their efforts and hard work.
4.
A Leader is not influenced by gender, race, religion, age, or
any other personal characteristics. He or She treats all employees
with equity.
5.
A Leader is sensitive to co-workers' personal life and
commitments outside of work.
6.
A Leader follows all guidelines for avoidance of
discrimination and harassment in the workplace.
7.
A Leader does not tolerate inequity – such as preferential
treatment by managers, unfair interviewing, selection or evaluation
practices, etc.
A
Leader Demonstrates Humility
We all notice when
someone is humble. Likewise we notice the person who takes credit
for someone else's work. It's like the manager who can't admit
mistakes and inadvertently teaches his staff to hide theirs.
Leaders recognize
that they alone cannot move the world. They know their power lies in
the cumulative efforts and talents of their followers. By
recognizing that, they acknowledge the importance of the team, and
the strengths and weaknesses of the individuals that comprise it.
Humbleness also means accepting responsibility for personal mistakes
and acknowledging when help is needed. By doing so you model a
powerful quality to those around you. It says, "It's okay to
err...it's okay to be open about it...and it's okay to ask for
help." How much energy and resources are wasted in organizations
because mistakes and failures are covered up? How many opportunities
to learn and improve are lost because we're afraid to acknowledge
problems? Leaders have to be seen as human, as real people that
anyone can follow and aspire to emulate. Leaders also have to be
comfortable stepping back and letting others take the driver's seat
when they're the experts. That's humility.
Here's
an experience that speaks to the importance of respect and humility
as leadership qualities.
At
a chemical manufacturing plant a team was tasked with improving the
production process for a prototype industrial solvent. The solvent
would be used by large manufacturers to purify transport containers.
While the new solvent showed tremendous promise in this niche market
it produced an unacceptable amount of foam residue. It was also
expensive to manufacture. The team members took up the challenge to
reform the product in six months - a daunting task. A portion of the
team worked with engineering to analyze the production process.
Another portion worked with R&D to address the foam residue. A team
leader was appointed to oversee the effort. In short time the
engineering team had identified a method to produce the product in
larger batches cutting the production cost. Later they found a way
to eliminate a major step in mixing the components of the solvent.
Due to the chemical nature the components had to be processed and
treated before they could be combined to produce the solvent. The
R&D team was taking longer due to the complexity of their task.
However, they were able to reduce foam residue by 8% and theorized a
method to cut the residue another 40-50%. Seemed everything was
going better than expected - almost.
The
team leader took it upon himself to present the findings to upper
management. He insisted that no communications be sent out by team
members on the progress and that he would serve as the communication
vehicle. Not a bad policy from a project management standpoint but
his method had a disastrous effect on the team. Seemed progress
reports from the Engineering and R&D teams were being reworded by
the team leader and forwarded to management. In the reports the team
leader took direct credit for supervising the processes when that
was untrue. He also presented findings directly to management.
Meanwhile team members had gotten a hold of the modified status
reports. They were already angry that the team leader insisted on
presenting the findings alone when he was not knowledgeable enough
to speak to the specifics. Several commented that the team leader
always spoke in terms of "I" rather than "we." A subtle observation
but an important one. The team was quickly losing confidence that
their hard work and ingenuity was not being realized. Then came the
kicker. Due to the significant progress in the product viability
there was talk that the team leader would be promoted to Product
Manager.
Things
unraveled fast. Team members complained to the team leader and upper
management. Progress ground to a halt as the team leader found
himself trying to repair his relationship with the team and salvage
his credibility with management.
Had
the team leader made an effort to recognize the team they would have
continued to give 110% to the cause. Instead, the inequity stole
their motivation. Humble leaders realize that they cannot move
mountains by themselves. They need to work as part of a team. They
need to allow others to step into the limelight and be recognized.
Perhaps the most effective leader is the one that fades into the
scenery allowing the team to be recognized and steps into only to
offer direction and encouragement.
Here are a few
Leadership Behaviors which demonstrate Humility.
1.
A Leader ensures coworkers and team are recognized for
accomplishments rather than promoting self.
2.
When needed he/she asks for help from coworkers and
management.
3.
A Leader encourages others to take the lead when they are the
most knowledgeable or capable.
4.
A Leader will assist with tasks and responsibilities "below"
his/her level when coworkers or team needs support.
If you have the time,
why not move on to our next article “Qualities of Leadership:
Honesty and Integrity and Confidence and Courage.
Ray Miller is Managing Partner 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 The Training Bank and That’s Customer Focus by
visiting
www.thatscustomerfocus.com or
www.thetrainingbank.com
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Qualities of Leadership
– Part 3: Honesty and Integrity and Confidence and Courage
By Ray Miller
This is the third
article in a six part series which discusses the Qualities of
Leadership. It builds on what was covered previously so if you
haven’t read the previous articles, be forewarned.
In this article we
will discuss in greater detail the next two of the qualities of
leadership: Honesty and Integrity and Confidence and Courage
A Leader
Demonstrates Honesty and Integrity
"Lying" may be too
strong a term. Actually honesty - or the lack of it - in
organizational terms is more subtle. It's how willing a person is to
dabble in the grey area. Did you ever hear someone justify a
situation by saying - "I didn't lie - you didn't ask me.
Obviously a blatant
liar is going to have a hard time motivating and convincing others
to respect them. But usually (not always) honesty in the
organizational sense is more subtle. It means explaining openly how
a mistake occurred and owning it if it's your fault. It means
telling someone that you think he/she doesn't have the skill set for
the position they're interested in - but could develop them. It
means telling your manager that the numbers regarding your
productivity have slacked off, and what can be done to improve them.
How many times are reports, numbers and opinions massaged and
sanitized out of fear upper management will be displeased with
reality? Honesty requires sharing information with those around you
rather than hoarding it. Honesty is the foundation of one's
integrity. With integrity you build trust with those around you.
Then personal agendas can be tossed aside for that of the team.
If
someone is willing to dabble in the grey areas, to "creatively
interpret data," to carefully word status reports in vague,
half-truths, to make empty promises to staff, he/she jeopardizes
their honesty and integrity.
Honesty,
integrity, and genuine respect promote one of the most crucial
elements in a healthy work - equity. Everywhere in our lives
we seek equity and fairness. Why does it seem certain laws apply to
some but not others? How about taxes? How many times have you seen
someone get the job for all the wrong reasons? Why is it when
profits plunge, executives get a raise, while the worker bees get
laid off? If history has taught us anything, it is part of human
nature to resist inequity.
Here are a few
Leadership Behaviors which demonstrate
Honesty
and Integrity.
1.
A Leader openly admits mistakes and failures so they can be
rectified.
2.
A Leader does not claim credit for accomplishments that
he/she was not directly involved in.
3.
A Leader maintains the highest ethical standards when dealing
with customers and suppliers or vendors.
4.
A Leader will keep promises or at least offer an explanation
why they can't be kept (promises to co-workers, management,
customers, etc.)
5.
A Leader does not manipulate data or information for personal
gain or protection.
A Leader has
Confidence and Courage
Confidence is
contagious. It's also rare. Especially in large organizations where
things become paralyzed in decision making because there are so many
layers and levels of approval - it's refreshing for someone to step
out of bounds once in awhile.
A leader is the first
to believe in his/her abilities. If they have doubts, those around
them are sure to see it in their actions, in their words and in
their demeanor. Having confidence and courage doesn't mean an
employee or manager has to swing in on a chandelier, sword drawn,
and scarf waving in the wind. Sometimes it's in what they don't do.
They can say "no" when unreasonable requests are made of them or
their team. By trying to appease everyone a leader knows they can
lose the confidence of others. They may not conform to "the way
we've always done things." In fact, a leader has to be secure enough
in his/her convictions to advocate new directions even if the
short-term response is rejection or ridicule
Leaders
understand that failure represents opportunity - opportunity to
learn and to take a step closer to the solution. Rather than roll
over and play dead, leaders just try harder. Leaders also have to
rely on their courage when there is no one else to turn to. When
times get tough everyone can turn to the leader and vent. But who
does the leader turn to? He or she turns to that flame inside them,
that intrinsic drive to try no matter what. If he/she panics -
followers will lose faith. In times of true challenge it is the
leader's confidence that inspires others.
Consider
also the more overt signs of confidence. This may sound a bit primal
but we respond to physical queues the same way animals do. A wolf,
in the presence of the pack leader, will hunch its back, bow its
head and avoid eye contact. At the most blatant level a servant wolf
will lie on its back, fully exposed, as a sign that it is submissive
and loyal to the pack leader (If you try that one with your boss,
call us, we'd be curious to know the outcome). The point is how you
carry yourself conveys a message to those around you. Whether you
are confident in stature and voice, if you maintain eye contact, or
even how you lean into or away from conversation sends important
messages regarding your confidence. Leaders have the attitude "That
which doesn't kill me...only makes me stronger..." Believe it.
Here are a few
Leadership Behaviors which demonstrate Confidence and Courage.
1.
A leader speaks openly and honestly to co-workers,
management, and customers even when the message is negative.
2.
A leader helps others accomplish tasks rather than
micromanage or interfere with their work.
3.
A leader attempts new ventures that will improve the
company/department performance even if those ventures are untried or
unproven.
4.
A leader places his/her personal reputation on the line for
challenging deliverables because he/she believes they are
attainable.
5.
A leader maintains a calm, professional demeanor under times
of stress and "crunch" times.
6.
A leader speaks with a confident in tone. Avoids passive
words and phrases such as "try" "maybe" "sort of" and is comfortable
and convincing when speaking to groups.
If you have the
time, why not move on to our next article “Qualities of Leadership:
Influential and Decisive”.
Ray Miller is Managing Partner 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 The Training Bank and That’s Customer Focus by
visiting
www.thatscustomerfocus.com or
www.thetrainingbank.com
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Qualities of Leadership
– Part 4: Influential and Decisive
By Ray Miller
This is the fourth
article in a six part series which discusses the Qualities of
Leadership. It builds on what was covered previously so if you
haven’t read the previous articles, be forewarned.
In this article we
will discuss in greater detail the next two of the qualities of
leadership: Influential and Decisive
A Leader is
Influential
Unless a person can
influence others to follow their vision, they're not a leader.
Leaders have that something extra that gets others to buy into their
ideas and jump aboard.
Most times a leader's
vision for the future means changing the status quo. It means asking
others to abandon the comfortableness of their current position and
take the leap of faith that the leader's vision will lead to a
better state. The ability to persuade coworkers, management, and
customers is absolutely paramount to a leader's success. How does a
leader influence others? First the leader must anticipate resistance to change. That means appreciating the motivations
and anxieties of those around him/her. To methodically defuse those
anxieties the leader must first understand why someone is
resistant or hesitant about an idea.
The
leader must provide empirical evidence that his/her recommendation
will in fact lead to improvement. Emotional arguments alone will
rarely persuade others.
To
the leader, the answer could be as obvious as a finger in the eye
but that means nothing unless others are convinced. When resistance
occurs a leader must listen and respond with empathy
to the concerns. The leader must wait patiently as the group he/she
is trying to influence arrives mentally at the same conclusion the
leader is advocating. The leader's motivation should be to improve
the good of the company or department. If anyone suspects the leader
is out to promote his/her own interests then influence is lost.
The
leader must be flexible enough in his/her own thinking so as to
alter his/her own plan of action so issues of resistance are
minimized. While the leader sees change as a means to improvement
others may be threatened because change suggests that the way
they've always done things has been wrong. A leader's ego allows
others to save face (at least publicly). By anticipating resistance,
providing empirical justification for the change, listening to
concerns and offering supportive alternatives a leader has laid the
foundation for influencing others. Critical to a leader's ability to
influence is their honesty and integrity. If they don't have a track
record of honesty and fair play those around them ill lose trust.
Without trust influence is lost.
Here are a few
examples of Influential Leadership Behaviors.
1.
A leader can effectively and convincingly communicate the
benefit their idea will have for the company or organization.
2.
A leader listens effectively to concerns and issues and
ensures they are addressed in order to build a true win-win
relationship for all parties.
3.
A leader addresses resistance to change and accepts change
openly
4.
A leader communicates his or her idea in a way that is
genuine and credible and does not come across as manipulative or
self serving.
5.
A leader provides empirical support (data, concrete evidence)
for his/her position or idea.
6.
A leader successfully builds and maintains relationships with
individuals outside his/her sphere of responsibility.
A Leader is
Decisive
Employees will
gravitate towards those who provide clarity and direction. That
requires someone to make a decision. Unless that's done the group
stagnates - and looks for a leader.
Individuals are more
apt to follow a leader's aspirations if the leader appears decisive.
"Decisive" doesn't necessarily mean the leader makes quick
decisions. It means the leader can structure dialogue with others so
as to logically arrive at a consensus. Other times, when a decision
can only be made by the leader, he/she is able to convey a rational
basis for it. In other cases a leader may not be able to make a
particular decision - i.e, an employee suggests an improvement for
his department by changing a work process that affects several other
departments. In that case, an "employee leader" would help the
manager convince appropriate decision makers and do his/her best to
persuade that person that the change is worthwhile. The important
point is leaders don't delay or avoid decisions. When a leader makes
a decision it will be consistent and logically supportive of business priorities and
core values. For instance, if
your company determines customers are dissatisfied with service,
management shouldn't balk at spending more to hire, train and retain
good service reps. By communication and focusing on specific
business priorities and core values (see below) no decision comes
out of left field. Sounds obvious, but how often are lofty strategic
objectives lost in the trenches. It's not uncommon for work to
stagnate or grind to a halt because no one is willing to make an
important decision.
Other
times it will appear the leader has facilitated a decision when in
fact all he/she has done is allowed a compromise. For instance,
suppose team members are arguing over how the yearly budget should
be allotted. One group wants to purchase new software another wants
to spend it on training. After listening to the parties argue the
leader decides a 50-50 split is the easiest solution. Maybe it was
the easiest but was it the best? A leader would take
the time to understand the business justification for both options.
That way the entire group can come to consensus on the best course
of action.
Here are a few
examples of Decisive Leadership Behaviors.
1.
A leader takes time to fully understand all options before
making or promoting a decision.
2.
A leader makes decisions in a timely manner.
3.
A leader makes decisions that are logically consistent with
the business priorities and core values of the company or
department.
4.
A leader makes difficult decisions when no one will and
communicates a rationale for the decision.
5.
A leader escalates issues when a particular decision is out
of his/her jurisdiction.
If you have the time,
why not move on to our next article “Qualities of Leadership:
Effective Communicator and Core Values”.
Ray Miller is Managing Partner 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 The Training Bank and That’s Customer Focus by
visiting
www.thatscustomerfocus.com or
www.thetrainingbank.com
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Qualities of Leadership
– Part 5: Effective Communicator and Core Values
By Ray Miller
This is the fifth
article in a six part series which discusses the Qualities of
Leadership. It builds on what was covered previously so if you
haven’t read the previous articles, be forewarned.
In this article we
will discuss in greater detail the next two of the qualities of
leadership: Effective Communicator and Core Values
A Leader is an
Effective Communicator
Have you ever
listened to someone present and idea when they're loaded with
enthusiasm and passion - but you're not exactly sure what they
said?! They know exactly what they mean but somehow it gets lost in
the presentation.
"...Due to the
competitive nature of the marketplace and our industry, we must
adapt our strategic initiatives and realign our core operations to
enhance our productivity and financial position. This may require,
where necessary, adjustments in our staffing and resource
allocation. We will publish additional communications as those
determinations are made." This
excerpt was taken from an actual company wide announcement. Though
effective at raising anxiety while telling employees little, it is
hardly the type of communication people associate with effective
leadership. Leaders will take the time to explain the direction of
the organization. They will avoid the sterile, cryptic, impersonal
announcements that earn the label "corporate announcement." Their
language is honest, concise, and in a manner that all can relate to.
Considering "influential" is a key attribute of leadership -
communication skills are critical. In addition, leaders must be able
to stand confidently in front of a crowd and voice their opinion in
a logical, convincing manner.
That skill is
difficult for most people - but in terms of leadership it is
absolutely critical. How can someone lead if he/she cannot convince
others to follow? Have you ever watched someone give a presentation
who is stammering and obviously nervous and weak kneed. It's
difficult to concentrate on their message because their physical
appearance is a distraction.
Finally, for a person
to be an effective leader they must be an effective listener. Just
consider the other leadership qualities discussed. If you're not
willing to truly listen to someone can you demonstrate genuine
respect? If you're not willing to listen to the concerns of
others you won't dismantle their resistance to new ideas and your influence is lost. Can you really make effective decisions (decisive)
if you don't listen carefully to the opinions of others?
Here are a few
examples of Effective Communication Leadership Behaviors.
1.
A leader articulates ideas and opinions in a very clear,
concise and convincing manner.
2.
A leader presents ideas and opinions to audiences in a very
comfortable, confident manner.
3.
A leader practices effective listening skills.
4.
A leader produces documents that are of the highest quality -
professional, clear and accurate.
5.
A leader utilizes all available company communication
channels in an effective manner. (email, presentations, meetings,
bulletins, voice mail etc.)
A Leader is
establishes and reinforces a set of Core Values
This is an aspect of
leadership that few people ever take the time to think about in
business - yet it's quite common outside work. Many people have
values that guide their life, their decisions - everything. What's
important to you at work? The next section describes core values
in behavioral terms.
At a managed
healthcare company the Vice President posted a set of core values
that she believed should govern the way we do business. Two
of those core values were: "Our customers' needs will dictate every
action we take" and "Promote equity in the work environment by
recognizing the vital contributions of all staff." At the same time
there was a long standing policy in existence that allowed
clinicians three weeks of vacation while non-clinicians (i.e.
customer service representatives) got two weeks. The VP successfully
convinced corporate to change the policy. Why? It violated two of
our core values. It wasn't equitable since it allowed some staff
preferential treatment and at the same time it minimized the
importance of customer service. That VP exemplified true leadership.
Her actions and decisions were predictable because they were shaped
by strong values and beliefs that she held important. Beliefs that
shaped her thinking, her decisions, her dialogue and the priorities
she set for her operations.
If
a leader is successful in communicating and modeling core values
others will learn to adjust their thinking and recommendations to
support those same values. Once followers recognize a leader's
commitment to core values they'll shape their own actions and
behavior to comply with the same values. These core values are
softer and less tangible than management skills. For instance, in
this system the modules offer brief 4-8 steps or mini-frameworks for
easy use. Those mini-frameworks become tools for employees and
managers in certain situations.
Similarly, Core
Values are principles by which a leader chooses to shape his or her
actions. For instance, suppose a manager decides that to be truly
productive he/she must maintain a healthy balance between work and
family life. He/she is likely to make the same assumptions for
staff. That value will manifest itself in time off policies that
encourage and support family commitments. Excessive overtime and
burdensome hours are likely to be curtailed since they could
interfere with personal commitments. The key point is this - core
values of leaders are obvious in both their words and actions.
Leaders communicate and reinforce those values consistently. The
result is a culture shaped by the values of that leader.
For employees it is
especially important that you align yourself with the core values in
your company so your actions and words support the company's
objectives.
Here are a few
examples of Leadership Behaviors which reinforce
Core Values.
1.
A leader communicates a consistent set of core values
regarding business quality, customer service, employee well being,
and work ethic.
2.
A leader ensures that employees understand their role in
supporting these core values.
3.
A leader models the core values that management communicates
to staff.
4.
A leader reinforces core values by recognizing co-workers who
exemplify those values.
5.
A leader makes decisions consistent with the company's core
values.
6.
A leader supports policies and procedures that reinforce core
values.
You might be
wondering - does my department or company have core values? If so,
take a step as a leader and ask!
If you have the time,
why not move on to our next article “Qualities of Leadership:
Continuous Improvement and Physical, Mental and Spiritual Health”.
Ray Miller is Managing Partner 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 The Training Bank and That’s Customer Focus by
visiting
www.thatscustomerfocus.com or
www.thetrainingbank.com
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Qualities of Leadership
– Part 6: Continuous Improvement and Physical, Mental and Spiritual
Health
By Ray Miller
This is the sixth
article in our six part series which discusses the Qualities of
Leadership. It builds on what was covered previously so if you
haven’t read the previous articles, be forewarned.
In this article we
will discuss in greater detail the next two of the qualities of
leadership: Continuous Improvement and Physical, Mental and
Spiritual Health
A Leader is driven
by Continuous Improvement
A leader is never
satisfied. Leaders are driven by an internal desire to constantly
improve the business, employees, relationships with customers, etc.
Without that desire a group stagnates. Work becomes ho hum and "good
enough" is standard practice.
Some companies market
their Total Quality Management campaign to customers as leading
edge, but ask employees and they'll either agree politely or if
cynicism gets the best of them, laugh openly. More often than not
the company seems to fight fire after fire and is lucky just to
maintain the status quo.
Leaders won't settle
for just getting by. They constantly challenge every department and
every person to find ways to improve products and service. They look
for ways to make improvements, even small ones, as long they're
constantly on the look out for them. They ask their manager for
aggressive, but realistic targets to better their performance. If
leaders stagnate, their business will.
Just as a leader
constantly pushes him/herself to improve his skills, knowledge, and
performance a leader expects the same of others. If someone is truly
a leader they will never settle for good enough. For employees this
means constantly asking yourself: "Is there a way to improve my
performance or the performance of my team?"
Here are a few
examples of Leadership Behaviors which demonstrate being
driven by Constant Improvement
1.
A leader constantly raises expectations for product and
service quality rather than settling for mediocrity or "acceptable"
performance.
2.
A leader praises co-workers for suggestions and ideas that
improve quality.
3.
A leader abides by policies and procedures that exist for
monitoring, measuring, and improving quality.
4.
A leader demonstrates constant improvement by way of data and
results.
A Leader
encourages Physical, Mental and Spiritual Health
Without a balance in
your life you can't be an effective leader at work. The two are
inseparable. If you neglect your personal needs - family, physical
health, mental health, and spiritual - you'll lose your edge as a
leader.
We firmly believe
that someone must have a certain degree of physical fitness to be
effective as a leader. Now, you don't have to run marathons, bench
press three hundred pounds and a have a cholesterol level of 10, but
then you shouldn't get winded walking to the water cooler either.
Constant physical ailments wear on an individual's ability to
concentrate and focus. When fatigue sets in, decisions are
jeopardized. Periodic absences will stall and stagnate important
initiatives and undermine the confidence of staff.
Being physically fit
also suggests a discipline characteristic of leaders. They devote
time to all aspects of their well rounded life. They expect their
followers to expend energy to constantly improve - how can they
expect anything less of themselves?
Finally, a person who
is physically fit is more confident and that confidence is perceived
by others.
As
for mental health, with the responsibility of leadership comes the
stress of leadership. Those who can effectively deal with stress
actually use it as a fuel to drive their accomplishments.
Overwhelmed by stress, an employee or manager will make hasty
decisions, cut corners, and otherwise send signals to others that
he/she cannot handle the pressure. You must take deliberate actions
to reduce stress and use it constructively. That begins with
recognizing the physical symptoms of stress.
Spiritual
health? This may strike a nerve with some because it can be
misinterpreted as religious commitment. Here's why we think it's
important. Belief in a higher power (whatever your devotion) propels
an individual towards the ideal self. Spiritual beliefs provide a
doctrine that forces us to examine our own actions and motivations
against a core of morality.
That pursuit of the
ideal self in spirituality spills over into the leader's work life.
They pursue the ideal organization. Just as they have a core set of
values that drives their spirituality they have core values that
drive their efforts at work. Recognizing that you are not perfect
and that you must constantly work to better all facets of your life
is a key characteristic of leadership. This discipline pervades
every aspect of a leader's life, family/personal, community, and
work.
Here are a few
examples of Leadership Behaviors which reinforce
Physical, Mental and Spiritual Health
1.
A leader devotes time and attention to proper exercise and
diet to maintain good physical health.
2.
A leader manages stress effectively so it does not interfere
with the quality of his/her work.
3.
A leader maintains a productive, healthy balance between
family, personal, and work obligations.
4.
A leader constantly critiques his/her own behavior, attitudes
and decisions against a framework of ethical and moral standards.
Here’s an exercise to
help you apply the concepts we’ve presented in this article series.
The best way to apply
the principles of leadership we have described is to understand them
in behavioral terms. Take some time to complete the exercise below:
Exercise: Who is a
leader?
Think about your own
work experiences. Does someone standout as having a significant
impact on your motivation and performance? Did anyone energize you
to feel especially committed to a cause or project? Recognizing
the qualities of leadership in someone else is one of the best ways
of improving your own. We've provided words and theory based on
academics and real life experiences. Only you can apply them as real
behaviors.
Write down, in
specific behavioral terms, what that person did that distinguished
them as a leader.
For instance, rather
than "He treated me with respect" - probe deeper:
"He took the time to
listen my ideas and provide feedback."
"He always said thank
you when I made an extra effort."
To take the exercise
a step further contrast this person with someone who you feel was
especially ineffective as a leader. By contrasting the two you will
begin to really highlight the qualities of leadership that you
appreciate. More importantly, can you recall your emotions as you
worked with these two individuals? How did they make you feel about
your job?
For example:
Positive Leadership behavior:
Always challenged our team to find new ways to improve our work
Negative Leadership behavior:
Accepted work as usual
Positive Leadership behavior:
Spoke courteously to all employees
Negative Leadership behavior:
Was abrupt and impatient when speaking with employees
Positive Leadership behavior:
Spoke passionately about new directions and possibilities for the
company
Negative Leadership behavior:
Showed little energy or enthusiasm for new ideas and challenges
Now assess your own
qualities of leadership in behavioral terms.
Leadership comes from
within. You get to choose what kind of leader you want to be. That
choice is your first important leadership decision so make it count.
Ray Miller is Managing Partner 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 The Training Bank and That’s Customer Focus by
visiting
www.thatscustomerfocus.com or
www.thetrainingbank.com
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Creating a Culture
By Ray
Miller
Jack
Welch, the renowned CEO of GE, led the company through a massive
reorganization in the early 1980's. At the time the company was made
up of countless product lines and diverse businesses. GE had to be
slim, responsive, and innovative to remain a world leader in
industry. Welch's vision - reduce the company to a dozen or so
specific product lines that were number one or two in their global
markets. Do what GE does best or don't do it at all. Achieving this
would require extraordinary changes in structure, management, and
operating philosophy. GE met the challenge, and today it continues
to be recognized as one of the best-led companies in the world.
During this transformation, Welch did something that few company
leaders succeed at: he communicated passionately and convincingly
the type of culture, or environment, that GE would need to dominate
its competitors. Amazingly, he encapsulated it in a simple phrase:
SPEED, SIMPLICITY and SELF-CONFIDENCE
This phrase may have
been simple, but it was loaded with Welch's values, beliefs, and
expectations of management and employees. To make this phrase mean
something in the furthest recesses of the company, on the production
shop floor, would require tremendous dedication and leadership. To
appreciate the culture Welch envisioned for GE, you have to hear it
in his own words. Here's an excerpt from a speech he made in 1989.
It's rather long but well worth your time:
...How do we
get big companies back to their roots - back to the type of
spirit and fire that creates miracles in those garage start ups
in Silicon Valley before they get big and before they forget
what made them big? That's what we're talking about.
Our
prescription, and we know there will be others, can be summed up
in three words: speed, simplicity and self confidence.
Speed - in
seeing what's happening in the world, in anticipating it, in
responding to it - is the essence. The '90's cry out for it.
We found in
the '80's that as speed increases in an organization, reviews
and measurements decrease. GE had constructed over the years a
management apparatus that was right for its times - the toast of
the business schools. This system produced meticulous, highly
polished work. It did little harm in the early 70's, became a
growing handicap in the early '80's and it would have been a
ticket to the boneyard in the '90's.
So we got rid
of it - along with a lot of reports, meetings, and endless paper
that flowed like lava from the upper levels of the Company. When
we did this we began seeing people, who for years had spent half
their time serving the system and the other half fighting it,
suddenly come to life, making decisions in minutes - face to
face - on matters that would have once produced months of staff
gyrations and forests of paper.
We haven't got
all the answers by any means. We're far from where we have to
be.
Our
transformation in the '80's was largely confined to upper
management. In the 90's it has to engulf and galvanize, it has
to be in the blood of every single person in the Company.
We also found
in the 80's that becoming faster is tied to becoming simpler.
Our businesses, most with tens of thousands of employees, will
not respond to visions that have subparagraphs and footnotes.
If we're not
simple we can't be fast - and if we're not fast we can't win.
Simplicity is
a concept sneered at today in cultures that like their business
concepts the way they like their wine - full of nuance,
subtlety, complexity - hints of this and that. In the 90's
cultures like that will produce sophisticated decisions loaded
with nuance and complexity that arrive at the station long after
the train has gone.
The demand for
simplicity applies to every one of us. To an engineer it's a
clean, functional design with fewer parts.
For
manufacturing it means judging a process not by how
sophisticated it is, but how understandable it is to those who
must make it work.
In marketing
it means clear messages and clean proposals to consumers and
industrial customers.
And, most
importantly, on an individual, interpersonal level it takes the
form of plain speaking, directedness - honesty.
Simplicity is
an indispensable element of a leader's most important functions:
projecting a vision - and demanding and rewarding boldness,
speed, and passion. The leader's unending responsibility must be
to remove every detour, every barrier to ensure that vision is
first clear and then real.
The leader
must create an atmosphere in the organization where people feel
not only free to, but obliged to demand clarity and purpose from
their leaders. They must insist on the dignity that goes with
achieving. They have to feel the rewards that go with winning -
in the soul as well as in the wallet.
Defining this
relationship, this bond throughout the company is a lot easier
than making it real. But we believe the nexus between simplicity
and speed is so important, so critical to winning in the 90's -
that GE has embarked on a decade long, company wide crusade to
get it.
But just as
surely as speed flows from simplicity, simplicity is grounded in
self confidence. It takes enormous self confidence to be simple
- particularly in large organizations. Self confidence does not
grow in someone who is just another appendage on the
bureaucracy, whose authority rests on little more than a title.
Bureaucracy is terrified by speed and hates simplicity. It
fosters defensiveness, intrigue, sometimes meanness. Those who
are trapped in it are afraid to share, can't be passionate, and
- in the 90's - won't win.
But people who
are freed from the confines of their box on the organizational
chart, who have and have had the chance to dream, risk, and win,
whose status truly rests on real-world achievement - those are
the people who develop the self confidence to be simple, to
share every bit of information available to them, to listen to
those above, below, and around them and then move swiftly.
Obviously a
company can't distribute self confidence. What it can do, what
we must do, is give each of our people that opportunity to
dream, risk, and win and hence earn self confidence themselves.
They don't get that opportunity - they can't taste winning - if
they spend their days wandering in the muck of a self absorbed
bureaucracy.
Speed.
Simplicity. Self confidence. We can grow a work ethic that plays
to our strengths, one that unleashes and liberates the awesome
productive energy that we know resides in our work force. If we
can let people see what they do counts, means something; if you
and I and the business leadership of this country can have the
self confidence to let people go - to create an environment
where each man and woman who works in our companies can see a
clear connection between what he or she does everyday, all day,
winning and losing in the real world - we can become productive
beyond our wildest dreams - certainly beyond the abilities of
our international competitors, most of whom are hobbled by
cultures that make it virtually impossible for them to liberate
and empower their people...
The
"culture" that Welch wanted was clear. He was able to articulate it
and describe it in terms of expectations and benefits for all staff.
But, before he could even consider communicating the type of culture
necessary for GE to compete and win, he had a personal "vision." He
took the time to look forward and anticipate the changes facing GE.
And from those visions he determined the type of work environment GE
needed. Of course, the act of translating that vision into
observable actions is a tremendous challenge, but it's clear GE knew
where it had to go and was set to chart a path to get there.
Why
is this important? Every
company no matter what size develops some type of culture. The
culture can be a productive one – i.e. employees committed to
customer service and quality, company wide commitment to being the
best among its competitors, employees empowered to make decisions
and identify improvements, company is passionate about providing new
innovative products, etc. Or, the culture can be a negative one –
little appreciation for employees, managing chaos, pervasive "that's
not my job" attitude. Whether you set out to create one your company
develops a culture. That culture is the perception of employees who
see and hear "how things are done." Your culture is the summary of
your environment, morale and management style.
You
may think that company culture is a consideration for large
companies only. The truth is, every company, no matter what size,
needs the right culture to survive. Small companies who take the
time to nurture that culture have a tremendous advantage over their
competitors. Remember, what most large companies strive for is that
"small company" mentality. As Microsoft continued to grow, Bill
Gates wanted operating units kept to 250 employees at most. He's
been pretty successful if billions in net worth are any measure.
Companies want to be lean, responsive, and unencumbered by channels
of bureaucracy. They want to be daring and entrepreneurial. They
want to tap the wealth of ideas and initiative in their staff - the
things that are easier when you're small.
Creating an effective
company culture should be an unending process. Even if you believe
you're there, changes in your environment, competition, staffing and
customer demands will challenge your culture.
Let me emphasize this
point - whether or not you think your company has or needs a culture
- one will develop. If you shape it correctly, it will become the
driving force behind your success. Employees seek direction, they
look for consistency in their work environment and they want to know
what management values. In a nutshell they're evaluating the culture
Three Key Elements
For Creating Your Culture
When
you hear the word culture, you typically think of some unique group
of people in our society. The group is distinguishable from other
groups by certain characteristics (or stereotypes). What does the
group value and believe in? What is the common thread that links its
members? It may have a strong religious doctrine or certain
expectations about how people relate to one another. There are
cultural differences in the roles of men and women.
Since a culture evolves, you must understand how it came to be in its current
state in order to influence where it is going. That's why an
important part of maintaining a group's culture is documenting its
history. From cave walls to hieroglyphics to computer chips, man is
obsessed with documenting history and culture. By documenting
history, the group recognizes certain achievements. It communicates
that history through ceremony, rituals and its elderly members. It
has its own language and symbols to communicate its cultural
expectations. It recognizes heroes as those who espouse the
qualities that are consistent with its values and beliefs. Enduring
cultures have a strong moral doctrine and discipline.
In any culture, all
of these elements and more must be communicated, consistent, and
reinforced. If these elements are
not communicated, consistent, and reinforced, eventually the culture
dies and is replaced by a new one. Think about it. Are companies any
different?
We're going to
examine these general points: Communication, Consistency, and
Reinforcement.
This should provide
you with a canvas for painting your culture - or a foundation on
which to build your vision.
Communication or
"It starts at the top..."
Unless you are, or
have the endorsement of the senior most executive in your
organization, limit your attempt at influencing culture to your own
department. The "culture" needs to be communicated, modeled and
reinforced by senior management. They must lead by example. And as
the excerpt from John Welch illustrates, executive management cannot
be afraid to be passionate when talking about "culture." It's that
type leadership that can ignite a company.
Don't wait for a
cultural mutiny to occur or for the changing of the guards to usher
in a new organizational personality. If you have a vision for your
department and really believe in it, then attend to your local
culture. Just be sure it meshes with the culture described by senior
management. What if it doesn't?
Here's an example.
The manager of
a systems development team at a large bank prided himself on
creating a team environment that was creative and
entrepreneurial. His culture was one where team members were
encouraged to offer creative, cutting edge computer
applications. Risk taking was encouraged. Like most
entrepreneurial "companies" they wanted to be quick and
responsive. He reinforced the importance of "speed to market"
for new applications. Inadvertently he had also reinforced a
team culture that became lax in terms of internal protocol. As
new applications were introduced in the bank, application teams
were expected to go through a thorough (sometimes agonizing)
change management process. The intent of the process was to
anticipate possible disruptions to other systems and users so
costly mistakes could be avoided.
Months later a
new senior executive took the reigns for the technology
division. That new senior executive considered change management
the absolute crux of operational efficiency (he was right).
Suddenly a team that paid little attention to the formalities of
change management found itself under the microscope by a senior
executive. Culture Clash!
Consistency or "
Waiter...I didn't order this..."
Whether or not you
deliberately set out to create a culture, one will evolve. If you
ask employees to describe their work environment they'll likely look
for consistencies (good or bad) that they think typify "the
way things are done around here." If there is little consistency,
your company may have an "identity crisis" - but that's your culture
- chaos, territorialism, constant, seemingly aimless change, etc.
Things appear to be done haphazardly with little forethought or
planning. Change is a reaction not a product of the constant pursuit
of a vision. Employees will spot inconsistencies in decisions and
inequities in the way people are treated. Many companies suffer from
this.
Reinforcements or
"You reap what you sow...."
The culture that
takes root is not necessarily the one communicated in mission
statements, or the lofty words of executive management, but the one
that ultimately gets reinforced. For instance you may want a culture
where employees are innovative risk-takers. But what happens after
an employee fails on a new project or novel idea he/she proposed and
management doesn't listen anymore. What happens when your CEO speaks
passionately of the need for continuous improvement - but the minute
those numbers dip - you're on the hot seat.
The result? You won't
devote time to fix problems for fear that productivity will
momentarily dip. The status quo is maintained. You may talk about
the need for teamwork but your reward system only recognizes
individual performance. Your CEO may want openness and candor at
every level - but managers constantly "shoot the messenger" or
dissenting members are viewed as non-team players.
Those are the key
drivers of your culture - any business culture - Communication,
Consistency and Reinforcements. Let's look at Communication in more
detail.
Communication
Communication
is a key element in creating a culture. Executive leaders must
ensure that what the organization values (priorities) and believes
in is clear among all staff. While actions speak far louder than
words, without words you cannot move people to action. Those words
are the justification for implementing specific initiatives and
making decisions that reinforce the defined culture.
Vision: What
You're Communicating
To create a culture,
your executive management must have a vision of "what" the company
could be, and "how" it can get there. Your vision may be to "become
recognized as the national leader for quality widget production,
customer service support and outstanding value."
You plan to achieve
that by decentralizing your organizational structure and driving
decision making and ownership right down to your regional offices so
that employees have full reign in dealing with their customers,
solving problems and managing their work. It will involve massive
reorganization of your management team, and Human Resource design
and will require new attitudes and behaviors - but you have a target
- something to move your organization toward.
Without that target
and vision you cannot achieve consistency in your actions. Every
function and every priority in your company must become aligned with
that vision. Your vision now becomes the foundation of your culture.
How many times has
your company unveiled a new mission statement? If you're really
large you may have a couple mission statements competing at once.
Truth is your last mission statement probably didn't sound all that
different. Stick with a vision and implement it. Adapt it only as
the marketplace demands.
Developing a vision
is not itself difficult. Developing the plan to achieve that vision
can be.
The Medium: How
You Are Communicating
Executive
Leadership
It should go
without saying that executive leadership needs to communicate
the desired culture to all staff. They should be so committed to
their ideal that they can speak confidently and passionately to
it. That vision should be so ingrained that your executives
sound like broken records.
If you can not
articulate your desired culture, can you really have a plan for
creating one? Leaders must be the supreme role models of the
culture they want to create. They will influence their direct
reports - those managers in turn serve as models for their staff
and so on.
Sounds easy on
paper. Take the time to talk with your staff about the work
culture you want to create and how it involves them. Devote time
in your management meetings to address cultural issues. Tell
staff what they should expect of you. Don't wait until
the once a year "state of the company" speech to remind them
with a stale recital of the latest buzzwords.
Written Statements
Post or
distribute to all staff a description of the culture that you
want to promote. Make it visible. Refer to it when speaking. It
should serve as a constant reminder to everyone of what your
senior management has committed to. Some companies distribute a
description of their values and beliefs on plaques to be hung in
cubicles and offices. Others have them printed on glossy cards
to be carried or framed.
The point
is...formalize yours. It's one tiny piece in creating your
culture but it's tangible. Make mention of your culture in your
mission statement. "Culture" refers to the work environment, the
work ethic you expect of employees at all levels, and the
actions you take to achieve important values (values like
customer service, quality products, financial return for
investors, etc.). It refers to the important qualities of
individuals who will make the company successful and achieve its
mission.
Visible Signs
All around you
there are visible signs of your company's culture. They may
suggest issues of equity such as prime parking spots for
management or year-end bonuses for managers who did little more
than show up and drink coffee. Your dress code may reflect
aspects of your culture: Is it formal, business attire or is it
up to the individual?
Take a look at
employee cubicles. Do they hang cartoons or sayings that are
generally positive or negative? Is your work environment clean,
suggesting that people have a lot of pride in their work place?
Work cleanliness is a key component of the Japanese attitude
towards quality. It suggests discipline and respect in the
workplace.
What's hanging on
your all-staff bulletin boards? Is there a hodge-podge of
outdated material, or is it fresh and attractive? What does the
material say? Is it dry policy and procedural stuff or is it
recognizing accomplishments or reinforcing important values?
Imagine that a
customer will come in and view your all-staff bulletin board as
an indicator of "how your company functions and what's
important." What do you want it to say? Look around your
environment and see what it says about your culture.
What's Your
History?
Just as a society
or group of people needs to have a history, so must companies
reflect upon their past. What has contributed to the success or
lack of success for your company? Are there certain dates that
you celebrate annually like the awarding of a significant
contract, the founding of the company, etc.?
Do you recognize
certain professional societies like National Health Care Quality
Week, Secretaries Day, etc.? Do you have these annual mileposts
that become recognized as part of your history? Some companies
actually have an employee or a team of employees who serve as
corporate historians. They document the "historical achievements
and evolution" of the company and share it with staff.
Less formally, do
some probing in your operations and service areas. Ask for
documentation on policies and procedures. Are flowcharts
available that describe the inner workings of your departments?
Are training materials updated? All of these are ways of
documenting your history and current state.
Veteran Staff
In "Indiana
Jones: Raiders of the Lost Ark," Harrison Ford (Indiana) brings
that mystical head piece to a shriveled, white-haired,
older-than-dirt, ancient guy who knows the long forgotten
language needed to interpret its engravings. The old guy refers
to a dust covered, weathered book and unravels its message.
The point is,
companies need to have veteran staff who can pass down stories
of company accomplishments and heroes, and teach newcomers how
things are done. Without them you really can't develop a
culture. Companies with high turnover face a tremendous identity
crisis. Take advantage of the knowledge and experience these
folks have to offer.
Let them train
new staff, let them represent your departments in
cross-functional projects, ask them to write up background
information for your orientation program, etc. Again, if you
don't know where you've come from it's difficult to avoid
similar mistakes when trying to create a desired culture.
Management Taking
Stands
This is a powerful mechanism for communicating cultural values and
beliefs. Here's an example:
A new CEO of a
Fortune 500 manufacturing company called together his executive
staff. During their staff meetings each executive was to be
given an hour to talk about quality initiatives in his/her
function. The first executive went and was done in about 10
minutes. For the remaining 50 minutes the group sat there in
uncomfortable silence. The CEO refused to continue. You can bet
the executives began to take his emphasis on quality more
seriously.
That same company
went on to win the Malcolm Baldrige Award. I was told of an
executive at a mammoth telecommunications company who took over
responsibility for a particular business line. His first order
of business was to call a meeting with his key management where
he tossed volumes of documented policies and procedures in a
trash can. He then replaced them with a one page description of
the important values and beliefs that he felt would make the
division efficient and profitable again. The division went on to
become the "crown jewel" of that business line.
Emotional stands
by key executives send a powerful message to staff. They catch
our attention and spark our imagination.
In the example
earlier of the senior executive devoted to change management,
that executive personally contacted a manager (multiple levels
below him) who side stepped that change process and
inadvertently affected an internal customer. He told him next
time that occurred he'd personally see to having the manager
removed
Next, let's look
at Reinforcement in more detail. Reinforcement includes specific
actions you can take to recognize the positive attributes of
your culture and to curtail the destructive aspects of it.
Reinforcements
The most
important question to address here is;
how do you reinforce actions or
behaviors consistent with the culture you're trying to create?
Model them
The most obvious
way to reinforce the culture you're trying to create is to model
it. If you want employees to be respectful of one another you
need to exemplify respect for all of them. If you want an
environment that thrives on innovation and creativity you need
to lead the charge in breaking out of old paradigms. You have to
sanction the ideas of others and tell them to run with it rather
than send them off to a paper bound, bureaucratic committee
where the idea stagnates for months. Employees will emulate your
style of management.
Human Resources
Do your Human
Resource initiatives support the type of culture you want to
create? For instance, is there reference to it in your
orientation process? If you want employees to be responsible for
improving the quality of their work, are they trained in how to
solve problems? Do they know how to channel suggestions or ideas
for improvement to the appropriate parties (Training)?
Are the values
important to your culture recognized in your performance
evaluation system? For example, if teamwork is important, how is
it observed and evaluated? Does your Reward and Recognition
program focus on areas consistent with your desired culture?
When employees truly demonstrate the qualities you believe are
necessary in the culture you've created, are they typically ones
that see their careers moving? You should conduct a complete
assessment of your HR practices to see if and how they reinforce
your ideal culture.
Management
Training
The actions of
management will be "the" major factor in shaping the culture
that evolves in your company. Many believe the executive
management team of every company has a "personality." That
personality then trickles down through your environment. That
personality (hopefully a positive one) shapes a desired culture
defined by executive management.
All levels of
managers should be trained on their role in supporting that
culture. They must model the values of the company - whether
they be teamwork, respect for individuals, creativity,
initiative, etc. They must also know their responsibility for
reinforcing employee behaviors and actions consistent with those
values.
This may sound
too touchy feely for some. But that's the challenge of shaping
your culture. You need to translate those soft values into
observable actions and behaviors. Only then can employees see
and live the culture you desire.
Corporate Heroes
We've all heard
of them. The employees that went above and beyond the call of
duty. Maybe it was an incredible customer service deed or an
innovative idea that enhanced quality, whatever the case,
they're recognized by the company and stories abound. As time
goes on, their feat is passed on to others around the water
cooler (Each time with a little embellishment probably).
The point is
they've provided an extreme example of something that the
company values and admires. It says a lot about the culture.
Next, let's look
at Consistency in Purpose in more detail. Consistency in Purpose
includes specific actions you can take that illustrate the
values and priorities of your business and business culture.
Consistency in Purpose
How
do you ensure that your company's actions are consistent with
the values defined by your culture? Though similar in some
respects, this is different from ‘reinforcements’.
Reinforcements are initiatives to recognize or reward the
desired behaviors of your culture. They're reactive. Consistency
in Purpose is proactive. These actions help build your culture
by creating a consistent expectation about “the way things are
done.”
Culture of the
Month Program
One of the worst
things you could do to undermine your culture is to toss out
last year's cultural statement for a "new improved" version.
Unless you completely missed the mark or real market demands
require it, changing your position will only confuse the masses.
If you didn't achieve your desired culture it's not the words -
it's the implementation that failed. Stick to it. Show a
long-term commitment to your vision.
Language
It seems obvious,
but perhaps the distinguishing characteristic of most cultures
is their language. Ones that immediately come to mind may be
English, Spanish, French and so forth. But there are also the
more subtle colloquial differences (Northeast US compared to
Southeast US). There can be other types of cultural differences.
Just ask any parent who's tried to decipher the slang of their
teenager.
In communicating
the important values of your culture you have to use consistent
language. How many times have you seen the same effort or
initiative attempted - and all that's really changed is the
acronym or name of the project?
Every time the
title changes - participants change, objectives change, diagrams
and flowcharts change - it's like starting all over again. By
starting over you've lost your history and the chance to learn
from your mistakes. There's no consistency.
If employee
empowerment is an important value, you cannot call it
empowerment one time, participative management then involvement
another. You can't refer to quality improvement teams as QI
Teams in one setting then Employee Involvement Teams in another,
etc. If you're using a certain management method or training
when you refer to particular management skills, use consistent
terminology (i.e. Adaptive Leadership, Managing Change, Customer
Focus-Leadership, etc.) to reinforce the skill among your
managers.
Management Process
How do you go
about conducting meetings? How do you go about solving problems?
How do you escalate issues to the attention of management? How
do you develop plans for all your departments that are
supportive of your overall strategic plan? How do you manage
projects?
Some may say
“What do you mean? We just do it.” When things just sort of
‘happen’ it's difficult to perceive a consistent, predictable
management process.
We spend a lot of
time designing and engineering our workflows and systems, but
how much attention do we give our management process? To make
your process consistent, you should have a standard meeting
format, a structured process for solving process problems, and a
process for developing a strategic plan and cascading it down
through all your functions.
While these
practices may sound regimented, they're really just more
efficient. You can still be innovative, flexible and responsive
without flying by the seat of your pants. As for your culture,
these practices will become recognized as “the way we do things
around here.”
Strategic Planning
It is amazing how
many companies (large and small) do not have a strategic plan. A
strategic plan is paramount to the long term survival of any
company. The operational and financial benefits aside, let's
look at it from a cultural standpoint. To maintain consistency
in your management process, you have to be working towards
something. Strategic Planning allows you to align your efforts
with the requirements of your customers and culture.
Without that
target, or that vision of what your company could be in 2, 5, or
10 years, you can't direct all your efforts toward anything. You
operate by solving day-to-day problems. Every culture must have
a sense of purpose and direction.
Equity
Employees seek
equity and justice in their work environment. Preferential
treatment, favoritism and inconsistent HR practices will
immediately define your culture for you (and a bad one at that).
The following scenario may sound familiar:
Like many
companies, company X goes through a downsizing. Executive
management told staff they had to tighten their belts because
competition was stiff. Along with the downsizing came an
announcement that there would be no merit increases that year,
or promotions for staff and management. Two weeks later a Senior
Vice President sends out a memo saying that he was delighted to
announce the promotion of so-and-so to Vice President. You can
imagine what the reaction was. How merit increases are awarded,
how promotions are granted, the way your HR policies are
executed says a lot (and vice versa) about consistency in your
work environment.
Note:
It cannot be stressed enough how important the perception of
equity is to morale and motivation, productivity and your
culture.
Putting It all
Together
Let's put it
altogether now. How can you create the type of culture that will
really propel your department or company to unexpected levels of
service and productivity?
Assessing your
present culture is an excellent place to start if you want to
move towards a desired one. Because business settings are
different, one generic approach is not advisable. However,
invaluable information can be gained from surveys and focus
groups (both are usually conducted by an objective outsider).
Surveys and the objective of the focus groups are typically
reviewed with management first, then a formal assessment
completed. The process can take from 2 weeks to 2 months
depending on the size of the company.
Planning the type
of culture you want to create may seem overwhelming, but if you
take a step by step approach to it you'll be surprised at how
quickly the plan comes together. Consider the following
questions:
-
Based on your
strategic plan or vision where do you see your
company in 2, 5, and 10 years?
-
What products
and services will you offer?
-
How will your
customers differentiate you from your competitors?
-
Regarding
your employees, what skills and attributes will they
need to successfully achieve your vision? (In other words,
describe the ultimate employee (management and non
management).
-
Regarding
your work environment what will your company value
most? (Your values and beliefs). Consider case studies or
stories of especially effective organizations. Better yet,
visit them and benchmark the process that shaped their
culture.
-
Most
importantly, how will you apply the concepts of communication, reinforcement and consistency in purpose
to build that culture?
Ray Miller is Managing Partner 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 The Training Bank and That’s Customer Focus by
visiting
www.thatscustomerfocus.com or
www.thetrainingbank.com
The Role of a Leader
By Brian
Tracy
April 18,
2008
Excerpt
From: Management Success
(you can purchase a copy of this great book by
clicking here)
Your
ability to negotiate, communicate, influence, and persuade others to
do things is absolutely indispensable to everything you accomplish
in life. The most effective men and women in every area are those
who can quite competently organize the cooperation and assistance of
other people toward the accomplishment of important goals and
objectives.
Of course, everyone you meet has different values, opinions,
attitudes, beliefs, cultural values, work habits, goals, ambitions,
and dreams. Because of this incredible diversity of human resources,
it has never been more difficult and yet more necessary for
diplomatic leaders to emerge and form these people into
high-performing teams.
Fortunately, leaders are made, not born. You learn to become a
leader by doing what other excellent leaders have done before you.
You become proficient in your job or skill, and then you become
proficient at understanding the motivations and behaviors of other
people. As a leader, you combine your personal competencies with the
competencies of a variety of others into a smoothly functioning team
that can out-play and out-perform all its competitors.
When you become a team leader, even if your team only consists of
one other person, you must immediately develop a whole new set of
leadership skills. In order to determine what these skills are, you
need to consider the genesis of high-performing teams.
Teams generally go through four phases as they evolve toward high
performance. These stages are called forming, storming, norming, and
performing.
The forming stage is very important, perhaps even critical, to the
success of the team. Your ability to select the proper team members
in order to accomplish a particular task—personal or business—is the
mark of the superior leader. If you select the wrong people in the
first place, it becomes almost impossible afterward to build a
winning team, just as it would be impossible to win athletic
championships with unskilled or ill-suited players.
In the forming stage, the team members come together and begin to
get a feeling for each other. There will be a good deal of
discussion, argument, disagreement, personal expression of likes and
dislikes, and the forming of friendly alliances between team
members.
This stage, especially the discussions and conversations that take
place, may seem time consuming, but it is absolutely indispensable
to the development of a unified group of people that you can lead.
One of the most important qualities of a leader is that of patience.
And patience is never more necessary than when you are going through
the early stages of assembling your team.
The second stage of team development is called storming. Storming is
a shortened form of the word "brainstorming." It is during this
stage when the group, whose members are now comfortable with each
other, begins the hard work of setting goals and deadlines, dividing
up the tasks, and getting on with the job. During the storming
phase, people learn about the contributions that each member can
make to achieve the purposes of the team.
The third stage of team development is called norming. This is where
norms and standards are established among the team members so that
everyone feels secure and confident in his or her place. All members
know what is expected and how it is to be measured. And all members
are aware of the responsibilities and obligations that they have,
not only to the job, but to the each other as well. Your ability as
a leader to promote the norming process is critical to the success
of the team.
The fourth stage of team development is performing. In the final
analysis, your ability to get results is all that really matters.
Your lifestyle, your rate of promotion and level of rewards, and
your respect and esteem among your co-workers and bosses will all be
determined by your ability to perform and to get others to perform.
There are basically five qualities of the most productive work teams
that you need to foster throughout the stages of team development.
The degree to which you accomplish this before you start working
will determine your success as a team leader and the success of the
team as a whole.
The first quality is the existence of shared values. You can foster
this quality by asking the question, "What are our values?" or,
"What do we stand for?" People will contribute the values they
consider the most important. As they do, you or someone else can
write them on a flipchart. The values will usually be something
like: integrity, excellence, quality, caring about people,
profitability, and harmony.
The second quality of top teams is shared objectives. It is
absolutely essential that everyone takes the time to discuss the
actual reason for forming the team and the chief results that are
expected of them.
Leaders are those who can see the big picture. They are absolutely
clear about what it is they want to accomplish and what it will look
like. They have the ability to articulate this vision in the minds
and hearts of others and to get everyone, no matter what their
background or personality, working together in harmony toward the
realization of that vision.
People cannot hit a target they cannot see. Again, even though it
may appear time consuming, everyone needs to have ample opportunity
to discuss and agree on the ultimate goals desired before work
begins. The more thorough the discussion on goals and objectives,
the more effective the team will be when it begins working.
The third quality of highly-productive teams is shared activities.
Everyone knows what they are supposed to contribute to the
achievement of the overall goals and objectives of the team.
Everyone also knows what each of the other members is expected to
do. All the work that has to be done is clearly divided up among the
team members, and everyone knows their role in the process.
The fourth quality of high-performing teams is that the head of the
team leads the action. You become the role model for all of the
others. You go out in front. You continually look for ways to make
it easier for your team members to do their jobs. You accept
complete responsibility for the achievement of the overall goal. You
start a little earlier, you work a little harder, and you stay a
little later. You set careful priorities on your time and you always
work on your highest value tasks. You never ask anyone to do
something that you wouldn’t do yourself. You always put yourself out
in front and go to bat for your people in every circumstance. You
are a leader because you continually lead.
The fifth and final quality of high-performing teams is that
individually and as a group, they continually evaluate their
progress toward their goals and values. The are always asking
themselves, "How are we doing, and how can we do better?" When they
manufacture or sell products in the marketplace, they ask their
customers for ongoing feedback and evaluation. They set incredible
standards of excellence and they are constantly striving to be
better.
Whenever they have problems, misunderstandings, or difficulties
within the team, they reexamine their values, their goals, their
activities, their assignments, and their responsibilities. They are
more concerned with what’s right than with who’s right. They are
more concerned with winning than with not losing. High-Performing
teams run by excellent leaders, are determined to perform in an
excellent fashion. All members know that their ability to work
together in harmony and cooperation is the key to the success of
every one of them.
The wonderful thing about becoming a leader in your work and
personal life is that you can practice the skills of influencing and
persuading others toward a common objective. You can promote the
principles of excellent teamwork by establishing your values and
goals, determining your activities, and then leading the action. And
you can improve yourself by continually evaluating your performance
against your standards.
One of the marks of excellent people is that they never compare
themselves with others. They only compare themselves with themselves
and with their past accomplishments and future potential. You can
become an even more excellent person by constantly setting higher
and higher standards for yourself and then by doing everything
possible to live up to those standards. The more proficient you
become at getting the results for which you were hired, the more
opportunities you will have to get results through others. And your
ability to put together a team and then to lead that team to high
performance will enable you to accelerate your career and fulfill
your goals faster than ever before.
"Brian Tracy is the most listened to audio author on personal and
business success in the world today. His fast-moving talks and
seminars on leadership, sales, managerial effectiveness and business
strategy are loaded with powerful, proven ideas and strategies that
people can immediately apply to get better results in every area.
For more information, please visit Brian on the web at:
www.briantracy.com."
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Becoming a Master of Persuasion
By Brian
Tracy
April 27,
2008
Excerpt
From: Sales Success (you can purchase a copy of this
great book by
clicking here)
Persuasion power can help you get more of the things you want faster
than anything else you do. It can mean the difference between
success and failure. It can guarantee your progress and enable you
to use all of your other skills and abilities at the very highest
level. Your persuasion power will earn you the support and respect
of your customers, bosses, coworkers, colleagues and friends. The
ability to persuade others to do what you want them to do can make
you one of the most important people in your community.
Fortunately, persuasion is a skill, like riding a bicycle, that you
can learn through study and practice. Your job is to become
absolutely excellent at influencing and motivating others to support
and assist you in the achievement of your goals and the solving of
your problems.
You can either persuade others to help you or be persuaded to help
them. It is one or the other. Most people are not aware that every
human interaction involves a complex process of persuasion and
influence. And being unaware, they are usually the ones being
persuaded to help others rather than the ones who are doing the
persuading.
The key to persuasion is motivation. Every human action is motivated
by something. Your job is to find out what motivates other people
and then to provide that motivation. People have two major
motivations: the desire for gain and the fear of loss. The desire
for gain motivates people to want more of the things they value in
life. They want more money, more success, more health, more
influence, more respect, more love and more happiness. Human wants
are limited only by individual imagination. No matter how much a
person has, he or she still wants more and more. When you can show a
person how he or she can get more of the things he or she wants by
helping you achieve your goals, you can motivate them to act in your
behalf.
President Eisenhower once said that, "Persuasion is the art of
getting people to do what you want them to do, and to like it." You
need always to be thinking about how you can get people to want to
do the things that you need them to do to attain your objectives.
People are also motivated to act by the fear of loss. This fear, in
all its various forms, is often stronger than the desire for gain.
People fear financial loss, loss of health, anger or disapproval of
others, loss of the love of someone and the loss of anything they
have worked hard to accomplish. They fear change, risk and
uncertainty because these threaten them with potential losses.
Whenever you can show a person that, by doing what you want them to
do, they can avoid a loss of some kind, you can influence them to
take a particular action. The very best appeals are those where you
offer an opportunity to gain and an opportunity to avoid loss at the
same time.
There are two ways to get the things you want in life. First, you
can work by yourself and for yourself in your own best interest. You
can be a "Robinson Crusoe" of modern life, relying on yourself for
the satisfaction of your needs. By doing this, you can accomplish a
little, but not a lot. The person who looks to himself or herself
completely is limited in his or her capacities. He or she will never
be rich or successful.
The second way to get the things you want is by gaining and using
leverage. Leverage allows you to multiply yourself and get far more
out of the hours you put in rather than doing everything yourself.
There are three forms of leverage you must develop to fulfill your
full potential in our society: other people’s efforts, other
people’s knowledge, and other people’s money.
You leverage yourself through other people’s efforts by getting
other people to work with you and for you in the accomplishment of
your objectives. Sometimes you can ask them to help you voluntarily,
although people won’t work for very long without some personal
reward. At other times you can hire them to help you, thereby
freeing you up to do higher-value work.
One of the most important laws of economics is called "Ricardo’s
Law." It is also called the Law of Comparative Advantage. This law
states that when someone can accomplish a part of your task at a
lower hourly rate than you would earn for accomplishing more
valuable parts of your task, you should delegate or outsource that
part of the task.
For example, if you want to earn $100,000 a year, in a 250 day year,
you need to make $50.00 per hour. That means you must be doing work
that is worth $50.00 per hour, eight hours per day, 250 days per
year. Therefore, if there is any part of your work—like making
photocopies, filing information, typing letters, or filling out
expense forms—that is not valued at $50.00 per hour, you should stop
doing it. You should persuade someone else who works at a lower
hourly rate to do it for you. The more lower level tasks you can
persuade others to do, the more time you will have to do tasks that
pay you higher amounts of money. This is one of the essential keys
to getting the leverage you need to become one of the higher paid
people in your profession.
Management can be defined as "getting things done through others."
To be a manager you must be an expert at persuading and influencing
others to work in a common direction. This is why all excellent
managers are also excellent low-pressure salespeople. They do not
order people to do things; instead, they persuade them to accept
certain responsibilities, with specific deadlines and agreed-upon
standards of performance. When a person has been persuaded that he
or she has a vested interest in doing a job well, he or she accepts
ownership of the job and the result. Once a person accepts ownership
and responsibility, the manager can step aside confidently, knowing
the job will be done on schedule.
In every part of your life, you have a choice of either doing it
yourself or delegating it to others. Your ability to get someone
else to take on the job with the same enthusiasm that you would have
is an exercise in personal persuasion. It may seem to take a little
longer at the beginning, but it saves you an enormous amount of time
in the completion of the task.
The second form of leverage that you must develop for success in
America is other people’s knowledge. You must be able to tap into
the brain power of many other people if you want to accomplish
worthwhile goals. Successful people are not those who know
everything needed to accomplish a particular task, but more often
than not, they are people who know how to find the knowledge they
need.
What is the knowledge that you need to achieve your most important
goals? Of the knowledge required, what knowledge must you have
personally in order to control your situation, and what knowledge
can you borrow, buy, or rent from others?
It has been said that, in our information-based society, you are
never more than one book or two phone calls away from any piece of
knowledge in the country. With on-line computer services that access
huge data bases all over the country, you can usually get the
precise information you require in a few minutes by using a personal
computer. Whenever you need information and expertise from another
person in order to achieve your goals, the very best way to persuade
them to help you is to ask them for their assistance.
Almost everyone who is knowledgeable in a particular area is proud
of their accomplishments. By asking a person for their expert
advice, you compliment them and motivate them to want to help you.
So don’t be afraid to ask, even if you don’t know the individual
personally.
The third key to leverage, which is very much based on your
persuasive abilities, is other people’s money. Your ability to use
other people’s money and resources to leverage your talents is the
key to financial success. Your ability to buy and defer payment, to
sell and collect payment in advance, to borrow, rent or lease
furniture, fixtures and machinery, and to borrow money from people
to help you multiply your opportunities is one of the most important
of all skills that you can develop. And these all depend on your
ability to persuade others to cooperate with you financially so that
you can develop the leverage you need to move onward and upward in
your field.
There are four "Ps" that will enhance your ability to persuade
others in both your work and personal life. They are power,
positioning, performance, and politeness. And they are all based on
perception.
The first "P" is power. The more power and influence that a person
perceives that you have, whether real or not, the more likely it is
that that person will be persuaded by you to do the things you want
them to do. For example, if you appear to be a senior executive, or
a wealthy person, people will be much more likely to help you and
serve you than they would be if you were perceived to be a lower
level employee.
The second "P" is positioning. This refers to the way that other
people think about you and talk about you when you are not there.
Your positioning in the mind and heart of other people largely
determines how open they are to being influenced by you.
In everything you do involving other people, you are shaping and
influencing their perceptions of you and your positioning in their
minds. Think about how you could change the things you say and do so
that people think about you in such a way that they are more open to
your requests and to helping you achieve your goals.
The third "P" is performance. This refers to your level of
competence and expertise in your area. A person who is highly
respected for his or her ability to get results is far more
persuasive and influential than a person who only does an average
job.
The perception that people have of your performance capabilities
exerts an inordinate influence on how they think and feel about you.
You should commit yourself to being the very best in your field.
Sometimes, a reputation for being excellent at what you do can be so
powerful that it alone can make you an extremely persuasive
individual in all of your interactions with the people around you.
They will accept your advice, be open to your influence and agree
with your requests.
The fourth "P" of persuasion power is politeness. People do things
for two reasons, because they want to and because they have to. When
you treat people with kindness, courtesy and respect, you make them
want to do things for you. They are motivated to go out of their way
to help you solve your problems and accomplish your goals. Being
nice to other people satisfies one of the deepest of all
subconscious needs, the need to feel important and respected.
Whenever you convey this to another person in your conversation,
your attitude and your treatment of that person, he or she will be
wide open to being persuaded and influenced by you in almost
anything you need.
Again, perception is everything. The perception of an individual is
his or her reality. People act on the basis of their perceptions of
you. If you change their perceptions, you change the way they think
and feel about you, and you change the things that they will do for
you.
You can become an expert at personal persuasion. You can develop
your personal power by always remembering that there are only two
ways to get the things you want in life, you can do it all yourself,
or you can get most of it done by others. Your ability to
communicate, persuade, negotiate, influence, delegate and interact
effectively with other people will enable you to develop leverage
using other people’s efforts, other people’s knowledge and other
people’s money. The development of your persuasion power will enable
you to become one of the most powerful and influential people in
your organization. It will open up doors for you in every area of
your life.
"Brian Tracy is the most listened to audio author on personal and
business success in the world today. His fast-moving talks and
seminars on leadership, sales, managerial effectiveness and business
strategy are loaded with powerful, proven ideas and strategies that
people can immediately apply to get better results in every area.
For more information, please visit Brian on the web at:
www.briantracy.com."
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7 Tips To Boost Your Sales
By Brian
Tracy
April 20,
2008
Excerpt
From: Sales Success (you can purchase a copy of this great
book by
clicking here)
Tip
number 1: Get serious! Make a decision to go all the way to the top
of your field. Make a decision today to join the top 10%. There is
no one and nothing that can hold you back from being the best except
yourself. Remember, it takes just as long to be great as to be
mediocre. The time is going to pass anyway. Your job is to commit to
excellence, to get better and better each day, and to never, never
stop until you reach the summit.
Tip number 2: Identify your limiting skill to sales success.
Identify your weakest single skill and make a plan to become
absolutely excellent in that area. Ask yourself, and your boss,
“What one skill, if I developed and did it consistently in an
excellent fashion, would have the greatest positive impact on my
sales?” Whatever your answer to this question, write it down, set a
deadline, make a plan, and then work on it every day. This decision
alone can change your life.
Tip number 3: Get around the right people. Get around positive,
successful people. Associate with men and women who are going
somewhere with their lives. And get away from negative, critical,
complaining people. They drag you down, tire you out, distract and
discourage you, and lead you inevitably to underachievement and
failure. Remember, you cannot fly with the eagles if you continue to
scratch with the turkeys.
Tip number 4: Take excellent care of your physical health. You need
high levels of energy to sell effectively, and to bounce back from
continual rejection and discouragement. Be sure to eat the right
foods, get the right amount of exercise and get plenty of rest and
recreation. Make a decision that you are going to live to be 80
years old, or more, and begin today to do whatever you have to do to
achieve that goal.
Tip number 5: Visualize yourself as one of the top people in your
field. Imagine yourself performing at your best all day long. Feed
your subconscious mind with vivid, exciting, emotionalized pictures
of yourself as positive, confident, competent and completely in
control of every part of your life. These clear mental pictures
preprogram you and motivate you to sell at your best in any
situation.
Tip number 6: Practice positive self-talk continually. Control your
inner dialogue. Talk to yourself the way you want to be rather than
the way you might be today.
For example, repeat to yourself these powerful words, over and over
again. "I like myself! I'm the best! I can do it! I love my work!"
Remember, fully 95% of your emotions are determined by the way you
talk to yourself, most of the time. The way you feel determines how
you behave. And how you behave determines how much you sell.
Your job is to get yourself on an upward spiral where you think and
talk to yourself positively, all day long. You think, walk, talk and
act like the very best people in your field. When you do, your
success becomes inevitable.
Tip number 7: Take positive action toward your goals, every single
day. Be proactive rather than reactive. Grab the bull by the horns.
If you are not happy with your income, get out there and get face to
face with more customers. If you are not happy with any part of your
life, accept responsibility and take charge.
All successful salespeople are intensely action oriented. They have
a sense of urgency. They develop a bias for action. They do it now!
They have a compulsion to closure. They maintain a fast tempo and
move quickly in everything they do.
The faster you move, the more energy you have. The faster you move,
the more ground you cover. The faster you move, the more people you
see. The more people you see, the more experience you get. The more
experience you get, the more sales you make. You will be happier and
more positive.
The faster you move, the more you take complete control of your
entire life and virtually guarantee that you will be one of the top
performers and the highest paid people in your field.
"Brian Tracy is the most listened to audio author on personal and
business success in the world today. His fast-moving talks and
seminars on leadership, sales, managerial effectiveness and business
strategy are loaded with powerful, proven ideas and strategies that
people can immediately apply to get better results in every area.
For more information, please visit Brian on the web at:
www.briantracy.com."
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Continuous Learning
By Brian
Tracy
April 24,
2008
Excerpt
From: Financial Success
Throughout the developed world, we have moved from an era of
manpower to an era of mind power. We have moved from the use of
physical muscles to the use of mental muscles. Today the chief
sources of value in our society are knowledge and the ability to
apply that knowledge in a timely fashion. In the information age,
knowledge is king, and those people who develop the ability to
continuously acquire new and better forms of knowledge that they can
apply to their work and to their lives will be the movers and
shakers in our society for the indefinite future.
When you learn and practice the techniques for rapid learning, when
you join the learning revolution, you will learn how to unlock the
incredible powers of your mind. You will learn how to become
smarter—faster than ever before. You will learn how to become a
master of your fate rather than a victim of circumstances. You will
learn how to take complete control of your present and future
destiny so that you can accomplish and achieve anything you want in
life.
Knowledge is doubling every two to three years in almost every
occupation and profession, including yours. This means that your
knowledge must double every two to three years for you to just stay
even. People who are not aggressively and continuously upgrading
their knowledge and skills are not staying in the same place. They
are falling behind. You see this demonstrated all over the place
with massive lay-offs, declining wages, and growing insecurity in
the workforce. You see it in the increasing bewilderment and despair
on the part of people who are being displaced from low-skill jobs
which have either moved overseas or disappeared altogether. We are
in the midst of a societal revolution where unionized industrial
workers are becoming a smaller and smaller percentage of our
workforce each year.
As recently as the 50s and 60s it was common to believe that you
finished your schooling, got a job with a large company and stayed
with that company for the rest of your life. This was based on the
old paradigm of learning. In this old paradigm, life was divided
into three parts. First were your "learning" years, during which you
got your education, however extensive or limited. Then came your
"earning" years. This was the period of time during which you worked
for a living. After that came your "yearning" years. This was the
period of retirement which would be paid for by Social Security,
savings, and pensions.
Today, with workforce requirements changing so rapidly, you must
continually be asking yourself, "What is my next job going to be?"
You must also be asking yourself, on a regular basis, "What is my
next career going to be?"
Imagine for a moment that your entire company or industry vanished
overnight and you had to start all over again in an entirely new
business doing an entirely different job. What would it be? And
don’t think this question is speculative or that it applies to
someone else. It is a question that you will probably have to deal
with, perhaps far sooner than you expect. In thinking about your new
job and your new career, here is the most important question of all:
"What do I have to be absolutely, positively excellent at doing, in
order to earn an excellent living in my new job and my new career?"
The answer to almost every question and the solution to almost every
problem in the world of work is to learn and practice something new
and different. When you learn how to use the incredible power of
your brain to absorb and apply new ideas and information, you will
be able to lead the field and rise to the top of any profession or
occupation.
Here’s another question for you: What is your most valuable asset?
In terms of cash flow, what is the most valuable thing you have?
Well, unless you are very rich, or have a family trust account, your
most valuable asset is your "earning ability." It is your ability to
earn money. It is your ability to apply your knowledge and skill in
a timely fashion to get results for which others will pay.
All your education, knowledge, experience, reading, training, and
work has contributed toward building up your earning ability.
According to the research, the so-called "rich" in America, and in
other countries, are almost invariably people who started from
common beginnings, often with great disadvantages, and then overcame
those circumstances by investing an enormous amount of time and
effort on developing their earning ability. And you can do the same
thing, starting today, or at any time.
Management consultant Peter Drucker says that the truly educated
person today is a person who has learned how to learn continuously
throughout life. Tom Peters says that continuous learning may be the
only real source of sustainable competitive advantage for
individuals and corporations. And Peter Senge, who wrote The Fifth
Dimension, says that only learning organizations, those
organizations that are capable of taking in new information,
adapting it, and using it faster than their competitors, will
survive in the fast-changing, competitive world of tomorrow.
The more you know, the better you will be at solving problems and
getting results for which people will pay you. The more you know,
the more freedom and opportunity you have. And the more you learn
and the faster you learn it, the more rapidly you move upward and
onward in your career and in every other area of your life.
Between where you are and where you want to go, there is almost
always a gap, and in almost every case you will find that you can
bridge this gap with knowledge and skills. In order to get from
where you are to your goals, you have to learn and practice
something new and different. You have to learn new skills and
abilities. You have to learn new attitudes and methods. You have to
learn new techniques and practices. If you want to be a better
parent, you must learn and practice better parenting skills. If you
want to be a better spouse, you must study and practice relationship
skills. If you want to earn more money, you have to determine what
it is that people will pay more money for, and then get busy
learning and practicing those behaviors.
Specific knowledge and specific skills will become obsolete with the
passing of time, but learning how to learn is a permanent skill that
you can use all the days of your life. The people who join the
learning revolution, and who learn how to learn faster, like those
people who first learned how to operate computers, or learned how to
become excellent in their fields, will be able to earn more in one
or two years of work than the average person earns in perhaps five
or ten years.
By joining the learning revolution, you will enhance every area of
your life. You will be able to help your spouse and your children
unlock and realize more of their individual potentials. You will be
a better friend in helping your friends use more of their abilities.
And you will be a better manager, developing the skills that will
enable you to get far more out of yourself and other people than
ever before.
"Brian Tracy is the most listened to audio author on personal and
business success in the world today. His fast-moving talks and
seminars on leadership, sales, managerial effectiveness and business
strategy are loaded with powerful, proven ideas and strategies that
people can immediately apply to get better results in every area.
For more information, please visit Brian on the web at:
www.briantracy.com."
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Transforming Bad Habits
By Brian
Tracy
April 19,
2008
Excerpt
From: Personal Success (you can purchase a copy of this great
book by
clicking here)
Your
habits have been developed from early childhood as the result of
things that you have chosen to do, or not to do. Your entire life is
the result of your past choices and decisions. And like all of us,
you probably have some bad habits that have held you back from your
true potential. But here’s the good news: Since you are always free
to choose, you can make new choices and decisions today that will
determine what happens to you in the future.
One of your main objectives in life is to develop new habits and
make them your masters, while at the same time overriding and
setting aside old habits that may be interfering with your progress.
You have two major types of habits. You have habits that revolve
around your desires and you have habits that revolve around your
fears. The habits that revolve around your desires for health,
happiness, financial independence, and success are life-enhancing.
They are the habits that have brought you the success you enjoy
today. The habits that revolve around your fears, on the other hand,
act as brakes on your potential. They hold you back. They interfere
with your success. They trip you up on a regular basis. They cause
you to sell yourself short and settle for far less than your
potential.
Dr. Martin Seligman, in his book, Learned Optimism, wrote about the
chief psychological phenomenon of modern life. He called it “learned
helplessness.” Based on his 25 years of research, he discovered that
virtually every person has one or more areas where they feel
helpless and unable to do something that they really want to do.
Seligman’s research demonstrated how animals can be trained to feel
that they are helpless. In one example, he put a dog into a cage
with a glass wall in the middle that separated the dog from a bowl
of food. The dog was hungry and tried to get at the food but kept
banging his nose on the glass. After several hours, Seligman removed
the glass. And what happened then? The dog, who was still hungry,
sat only a few inches away from the food and never even attempted to
eat it. The dog had learned to feel helpless. The had become so
convinced that he was incapable of getting to the food that even
when the obstacles were removed, he just sat there with his stomach
growling.
There are dozens of experiments like this. In every case, it is
clear that animals, and human beings for that matter, learn to feel
helpless. They develop habits of thought that hold them back from
reaching their full potential.
If someone were to tell you that you could learn to type 30, 40, or
50 words per minute by taking a typing course and practicing an hour
each day for the next few months, you would shrug your shoulders and
say, "Of course!" Everybody knows that you can acquire a particular
physical skill by learning how it is done and then repeating it over
and over again until it becomes automatic.
But when it comes to mental habit patterns, most people are a little
baffled. They don’t realize that you can learn mental habit patterns
by following exactly the same process that you would use to learn
physical habit patterns. And mental habit patterns will have a far
greater impact on your life and happiness than any physical habit
pattern ever could.
Once you have recognized the old, negative habit patterns that do
not serve your purposes, you can determine what new habit patterns
you would like to adopt. Begin this process by looking around and
determining the people that you admire the most, both living and
dead. Ask yourself: What qualities do they have? Which of their
characteristics do you most wish to have for yourself? Then make a
plan to incorporate those ideal habits into your own character and
personality.
You know that you can shape a piece of clay into any desired form.
You can also shape your own character and personality by simply
deciding to do so. I won’t say that it is easy. Changing your
beliefs and attitudes about yourself is one of the most difficult
undertakings you will ever face. But it is definitely possible and
achievable if you dedicate the necessary time and effort.
How long does it take to develop a new habit pattern? It depends on
how complex the habit pattern is. You can develop a simple habit
pattern in 14 to 21 days. For example, if you want to begin getting
up half an hour earlier so that you can plan and organize your day,
it might take just two to three weeks to develop the habit. If you
want to develop a new habit pattern of behavior that does deeper
into your character, it might take several months or even a year or
more. The most important point is that, no matter how long it takes,
the end result is achievable if you are really determined.
The habits of success have been studied by the great thinkers and
philosophers for at least 2,500 years. After personally studying the
subject for more than 30 years, I have found that the very best
people have the very best habits. Based on these findings, I have
identified seven habits that you need to develop if you want to
perform at your very maximum in everything you do.
The first is goal orientation. You need to become a habitual goal
setter, and dedicate yourself to working from clear, written goals
every day of your life.
The second habit you need to develop for success is result
orientation. Result orientation is made up of two practices. The
first is the practice of continuously learning so that you become
better at what you do. The second practice is that of time
management, which means setting very clear priorities on what you do
and then concentrating single-mindedly on the most valuable use of
your time.
The third major habit you need to develop is that of action
orientation. This is really the most important habit for material
success. It is the ability to get on with the job and get it done
fast. Fast tempo in whatever you do is essential to your success.
You need to overcome procrastination, push aside your fears and
launch 100% toward the achievement of your most important goals.
The fourth habit you need is people orientation. This is your
decision to cultivate within yourself the habits of patience,
kindness, compassion, and understanding. Virtually all of your
happiness in life will come from your ability to get along well with
other people. And getting along well with other people is based on a
set of habits that you have learned, or failed to learn, from
childhood. But it is never too late to become a wonderful human
being in your relationships with other. The more you practice being
a truly excellent person in your relationship with others, the more
you will internalize those qualities and actually become that
person.
The fifth habit you need for great success is health orientation.
This means that you must make a conscious effort to eat the right
foods in the right proportions. You must exercise on a regular
basis, continually using every muscle and joint of your body to keep
it young and fit. And finally, you must have regular habits of rest
and recreation that will enable you, in combination with diet and
exercise, to live a long, full life. Remember, your health is the
single most important thing you have, and it is completely dependent
upon the habits you develop with regard to the way you live.
The sixth habit is an orientation toward honesty and integrity. In
the final analysis, the character you develop as you go through life
is more important than virtually anything else. Honesty means that
you practice the “reality principle” in everything you do. You are
completely objective with yourself and with the world around you.
You set very clear values for yourself and you organize your life
around your values. You develop a vision for yourself and then you
life your life consistent with your highest ideals. You never
compromise your integrity or peace of mind for anyone or anything.
This attitude of honesty will enable you to enjoy all of the other
success habits that you are developing.
The seventh habit—the one habit that guarantees all the others—is
that of self-discipline. Your ability to discipline yourself, to
master yourself, to control yourself, goes hand in hand with success
in every area of life.
My favorite definition of self-discipline comes from Elbert Hubbard.
He said, "Self-discipline is the ability to make yourself do what
you should do, when you should do it, whether you feel like it or
not."
Every one of these habits—goal orientation, result orientation,
action orientation, people orientation, health orientation, honesty,
and self-discipline—can be developed. The following is a seven step
method you can use to internalize any habit or group of habits that
you want to make a permanent part of your character and personality.
1. Decide clearly on the new habit. Write it down as a goal in the
form of a present tense, personal, positive affirmation. For
example, if you want to develop the habit of self-discipline, you
write, "I am an extremely well-disciplined individual in everything
I do."
2. Repeat your affirmation as often as possible, and with as much
enthusiasm and conviction as possible. The more times you repeat
this command, the more likely it is that your subconscious mind will
ultimately accept it and begin to adjust your thoughts, words, and
behaviors to be consistent with it.
3. Visualize yourself as if you already had the new habit pattern.
Imagine yourself as already being exactly the person that you want
to become in the future. Remember, your subconscious mind is
activated and programmed by mental pictures. All improvement in your
life and character begin with an improvement in your mental
pictures. Use visualization on a regular basis in conjunction with
your positive affirmations.
4. Emotionalize the affirmation and the visualization. Take a few
minutes each day to actually experience the feeling of being the
excellent, outstanding human being that you have decided to become.
5. Launch into your new habit with conviction. Assume the role,
acting as if you had been hired to perform this role in a movie or
play. The more you behave exactly as if you already had the habit,
the more you actually become the person that you desire to be.
6. Tell others that you have decided to develop this habit. When you
tell others, you motivate and encourage yourself. You also force
yourself to consistently act in accordance with your new resolutions
because you know that others are watching.
7. Continually review your progress on a day-to-day basis. When
Benjamin Franklin developed his own process for character formation,
he would review his behavior every single day to see if he was
living consistent with the values that he had determined were
important. You can do the same thing. At the end of every day, do a
brief recap of your behavior during the day relative to the values
and habits you are trying to develop. Give yourself points when you
are strong, and be patient with yourself when you slip from time to
time.
The most important keys to developing new habit patterns are
patience, determination, and persistence. When you begin to change
yourself, you will find that it is not particularly easy. But it is
possible if you continue to work at it.
You can take complete control over the shaping of your character and
personality, and everything that happens to you in the future, by
making the decision, right now, to define and develop the habits
that will lead you to great success. And when you develop the habits
possessed by other successful people, you will enjoy an equal, if
not greater, level of success.
"Brian Tracy is the most listened to audio author on personal and
business success in the world today. His fast-moving talks and
seminars on leadership, sales, managerial effectiveness and business
strategy are loaded with powerful, proven ideas and strategies that
people can immediately apply to get better results in every area.
For more information, please visit Brian on the web at:
www.briantracy.com."
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