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| Customer Focus is Finally Returning |
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When I wrote my second book, Firing on All Cylinders: The Service/Quality System for High-Powered Corporate Performance
in the early nineties, customer service and quality improvement was
becoming a key focal point for both the public and private sectors.
Movements like Total Quality Management, Continuous Quality
Improvement, and related customer service initiatives were helping many
organizations toward dramatically higher levels of performance.
Rigorous quality award frameworks and processes in Canada, the U.S.,
Japan, and Europe highlighted what outstanding organizations were doing
and how dramatically they were pulling ahead of their peers.
Unfortunately,
those were the exceptions. Most attempts to improve customer service
were too narrow and superficial. They failed to focus the
organization's culture and core processes on serving customers. They
suffered from a real lack of strong leadership to back up all the
marketing hype and rhetoric.
So the
re-engineering movement took over and eventually fuelled the high
bubble of the late nineties. Just as the "dot com" companies thought
they were rewriting the laws of economics, these expensive new tools
promised to enable average organizations to leap over their industry
and competitors toward new heights of service and quality. All that was
needed were big capital investments and even bigger consulting
contracts to have outside experts slam-dunk "change management"
programs on the organization.
But new
technology such as automated phone systems, CRM (customer relationship
management), call centers, and e-commerce alienated many customers.
That's often because they were designed to increase organizational
efficiencies, not serve customers the way they wanted to be served
(e.g. CRM too often looks like an exercise solely designed as Cost
Reduction Management). Walls between these technologies and the rest of
the organization compounded the problem. When front-line producers and
servers also felt alienated and poorly supported by their organization,
the customer was served a lethal service/quality cocktail. A culture of
"if we don't take care of the customer, maybe they'll stop bugging us"
can easily seep insidiously into the front-lines.
High-performing
organizations are highly customer-centered. Since 1994, an ongoing
University of Michigan study has found "the statistical relationship
between customer satisfaction and market valuation is very strong."
Other research has shown that improving customer retention by just five
percent doubles the profit margin.
I am
delighted to see plenty of signs that the pendulum is swinging back
again. Many organizations are rediscovering their customers. Whether
they are running internal staff support organizations or line
operations, leaders are recognizing that they have drifted into
planning, priority setting, and change from the inside out. They are
now moving their organizations back toward changing from the outside
(customers) in.
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| Customer-Centered Planning |
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Recently
a Client asked me to deliver a strategic planning workshop for their
top executive team. They wanted to provide them with a framework and
process that the team could use for their own planning. Each executive
could then take this process back to use with the division he or she
was leading. We explored various approaches that started with the
organization's vision and goals and cascaded throughout the
organization. I asked where their customers factored into their current
planning process. It became clear this company was pushing their
priorities and view of the world out to their customers. That's one of
the key reasons the company was blindsided by a shift in customer
expectations, trust, and this company's reputation in the marketplace.
We agreed to use the customer-centered assessment and planning process
of The CLEMMER Group's "compass model" below.
The
compass model provides direction and a strategic planning framework for
the many "Transformation Pathways" needed to move an organization to
its next performance level. The model combines both the Management and
Leadership elements needed for balanced improvement (see www.clemmer.net/models/hperflship.shtml
for a look at the foundational piece to most of my work). The three
burgundy sections of the model represent work that is primarily in the
Leadership realm. The three blue sections of the model show what are
mostly Management activities. Customers and internal and external
partners needed to serve them are deliberately placed in the "north
star" position. Effective strategic planning takes its direction by
checking the organization's position relative to the "true north" of
customers and partners.
Go to www.clemmer.net/oassess/tranpath.shtml
for a look at all sixteen pathways in this model. You can also complete
a gap analysis model to assess your own organization's strengths and
weaknesses across these key organization effectiveness areas.

During
my 15 years of working with management teams on moving their
organizations to higher customer service levels, I have evolved a
series of practical tools and applications around the Pathways model. I
have also developed practical tools and approaches for personal and
leadership development. All of this is now condensed into an intense
two-day workshop. Please go to www.clemmer.net/events/lcco/lcco.shtml for more information.
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Thoughts That Make You Go Hmmmm...
On Customer Service |
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In
industries around the world, from cars to chemicals to computers,
overcapacity threatens to commoditize just about everything. How do you
compete in a world like this? Not on price if you can help it, but
rather through innovation and service, both of them nearly magical
results of human interactions...
- Geoffrey Colvin, "The Changing Art of Becoming Unbeatable," Fortune Magazine
Raising customer retention rates by five percentage points could increase the value of an average customer by 25 to 100 percent.
- Frederick F. Reichheld with Thomas Teal, The Loyalty Effect: The Hidden Force Behind Growth, Profits, and Lasting Value
Research
suggests that there's a high correlation between levels of customer
satisfaction and financial performance indicators like return on assets
and equity. In fact, the connection between satisfaction and revenues
is so close that we believe customer satisfaction will vault past
customer acquisition and market share as the primary indicator or
profitability. Product, price, place, and promotion no longer affect
the competitive barriers of differentiation they once did.
- Tom Siebel, CEO of Siebel Systems
In
a Yankelovich Monitor study of 2,500 consumers, 68% of those surveyed
agreed with the statement that "most of the time, the service people I
deal with for the products and services that I buy don't care much
about me or my needs.
A woman walked up to the manager of a department store. "Are you hiring any help?" she asked.
"No," he said. "We already have all the staff we need."
"Then would you mind getting someone to wait on me?" she asked.
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Permission to Reprint: You may reprint any items from the Leader Letter in your own print publication or e-newsletter as long as you include this paragraph:
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"Reprinted with permission from the Leader Letter,
Jim Clemmer's free e-newsletter. Jim Clemmer is a bestselling author
and internationally acclaimed keynote speaker, workshop/ retreat
leader, and management team developer on leadership, change, customer
focus, culture, and personal growth. His web site is www.clemmer.net."
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More Moose Hunting
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As generally happens whenever I use the Moose-on-the-Table approach, last month's Leader Letter focus on this topic (see www.clemmer.net/newsl/oct2004.html) generated lots of feedback and questions.
One reader asked, "How would you, or can you, change the leadership style of individuals who have come to believe that this is normal behavior?" Here's my response:
Changing
the leadership style of anyone is very difficult. I have not found any
one formula that applies to everyone. Each situation is so different.
Here are a few thoughts:
- The
first and key part of any change is the wish to change. The individual
that you may be trying to change needs to feel the need for change him
or herself. Unfortunately, like unhealthy lifestyles that led to a
serious health problem, most people only change leadership style to
escape pain. So the challenge is to show that the pain or problems that
person is experiencing could be improved by using a different approach.
- The
vicious cycle of denial or avoidance leading to ignoring the moose is
what shuts down conversation about the problem. Some people will delude
themselves into thinking there can't be a Moose-on-the-Table because no
one is talking about it. Finding a way to open the conversation about
the moose and get everyone to acknowledge it's there is the big
challenge. That may involve biding your time and waiting until the pain
is great enough, the problem becomes obvious enough, or receptivity
seems to be opening up.
- Organizational
or team surveys can be a good way to see if others are seeing a moose.
If so, you can then talk more reflectively or objectively about why
those perceptions exist and what can be done to address the issues.
That's one of the reasons I developed a confidential on-line management
team assessment tool (details are at www.clemmer.net/books/tldsurvey.shtml).
- Regular
reflection exercises (such as after meetings) or offsite retreats
should include gathering everyone's input to questions like what should
our team keep doing, stop doing, and start doing. Make input open and
safe (such as through an anonymous survey or third party run focus
groups or personal interviews) to ensure all voices and perspectives
are being heard.
Another reader asked, "What if you think you are an 'almost moose?'"
If
you think you're an "almost moose" and want to know whether others see
you as a full moose, you need a safe process to allow people on your
team to give you honest feedback on your behavior. That's usually an
anonymous process like a survey or interviews and/or focus groups
facilitated by an objective third party consultant or expert.
Soliciting this kind of unvarnished and open feedback is one of the
most difficult and courageous things a leader can do in his or her
personal growth.
Here's a Moose-on-the-Table comment from another reader:
Somebody
e-mailed your newsletter to me. It hit very close to a comment said
about me at the close of a very intense meeting involving much changing
of roles and responsibilities in our organization. Being a truthful and
outspoken person by nature, I had become the only person in a group of
close to forty who questioned certain plans and assumptions put forth
by our management team. At the close of the seminar I was thanked by
the management team for being outspoken in this way:
"Mike
comes upon a dead moose in the office. While others also see the dead
moose lying there, they remain silent pretending or hoping it will go
away. Before long it will fester and make the air become foul. Mike
prefers to just grab that moose as soon as he sees it and throws it on
the desk announcing, 'there's a dead moose – what are we going to do
about it?'"
I'm
wondering if they've been exposed to your concepts and teachings or can
this be just too coincidental! I read your newsletter and found it
fascinating. The same group of forty is meeting in two weeks and I'm
going to try some of your moose hunting ideas there.
Thanks,
"Mike"
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| How Effective Leaders Use Rules and Policies |
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Improvement Point ..on Authenticity
"Replace
rules and policies with values and trust. Effective leaders treat team
members as responsible adults who want to do the right thing for the
team or organization. They know that with good support, training, and
examples to follow, most people will exercise good judgment."
- From Jim Clemmer's article, "Bringing Values to Life."
Read the full article at www.clemmer.net/excerpts/bringing_values.shtml
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I
agree 100%, Jim. But if they are not in place, how do you deal with the
1% who abuses this trust? These rules set the expectations don't you
think?
There
is a place for rules. And there is a need to enforce them occasionally.
Managers start with values that (often unconsciously) treat people like
children and need rules to keep them in line. They see themselves as
enforcers and often hide behind legalistic, bureaucratic approaches to
"treat everyone fairly." They use position power to cover up their weak
people skills and manage to the lowest common denominator.
Leaders
start with trust and assume people are responsible adults. They enforce
rules and policies as a last resort when persuasion power has failed to
bring the individual onside. They continue to expect the best from
people even when they see the worst from a few. They would rather be
occasionally taken advantage of than bring everyone down to a rule
bound, restrictive, and bureaucratic mediocrity.
Like
everything else in life, this issue is all about balance. We need both
management and leadership. But the greatest results clearly come from
starting with leadership and falling back to management when needed.
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| Top Improvement Points from October |
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| Rare Public Upcoming Workshops in Ontario, Alberta, and British Columbia |
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If
your organization has been striving to improve customer service levels
but not quite pulling it together, you may want to attend my two-day Leading a Customer-Centered Organization
workshop in Vancouver or Mississauga. I have distilled 20 years of
research, experiences, best practices, and leadership/personal
development into this intensive session. Check it out at www.clemmer.net/events/lcco/lcco.shtml.
Vancouver, BC - January 11-12, 2005
Mississauga, ON - February 7-8, 2005
Leadership
is clearly THE key to success. That's why it's such a popular topic.
But despite all the talk about leadership and change, many "change
fatigued" people are still struggling with how to strengthen their
leadership and how to help their team/organization successfully
navigate change. Join me in Calgary or Kitchener for two intensive days
at my Leading @ the Speed of Change workshop. Check it out at www.clemmer.net/events/lsc/lsc.shtml.
Calgary, AB - January 13-14, 2005
Kitchener, ON - May 31 - June 1, 2005
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| Feedback and Follow-Up |
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I am always delighted to hear from readers of the Leader Letter
with feedback, reflections, suggestions, or differing points of view. I
am also happy to explore customized, in-house adaptations of any of my
material for your team or organization, drop me an e-mail at [email protected].
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I hope to connect with you again next month!
Jim
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post or pass this newsletter on to colleagues, clients, or associates
you think might be interested. If you received this newsletter from
someone else, and would like to subscribe, click here: www.clemmer.net/subscribe.shtml Phone: (519) 748-1044 ~ Fax: (519) 748-5813 ~ E-mail: [email protected] www.clemmer.net | | | | | |
| Copyright 2004, Jim Clemmer, The CLEMMER Group |