Nothing.
If some leaders can just get over themselves, the chance that their company will emerge from this recession stronger and more competitive is so much greater. But unfortunately when it’s suggested, it’s often met with one of the following responses: confusion (i.e. you talking to me?), dismissiveness (i.e. you have no idea what you’re talking about), shock (i.e. how dare you talk to me that way), anger (i.e. you’re fired). After all, they are the smartest person in the company. They know the problems, they know what needs to be done, and they will do it.
We have a secret to share – no one is that smart, no one can do it alone, and talented employees want to – well –contribute and show their talent. And the greatest tragedy in this delusional thinking is: good employees leave, the remaining employees just do what they are told, and the replacement employees are less talented. And whom does this adversely affect? The customer. Who benefits? The competition. Now, how’s that work for you?
Customer service is the lifeblood of the business. (Yes we are aware that cash is king and without positive cash flow the business ceases to exist. Without satisfied customers, however there is no cash. And without satisfied and engaged employees there are no customers – satisfied or not).
James L Heskett with four co-authors in 1994 wrote an article that was recently re-printed in the Harvard Business Review (July – August 2008) titled: Putting the Service-Profit Chain to Work. The premise is simple:
ü Highly satisfied customers drive growth and profitability
ü Equipping employees with the skills and power to serve the customer results in:
- Increased employee satisfaction
- Increased employee loyalty and productivity
- Increased service to the customer
- Increased customer satisfaction and loyalty
- Revenue
According to the American Customer Satisfaction Index, good examples of companies with high customer satisfaction are Nordstrom, Southwest, Jones Apparel, Publix, Apple, Netflix, Barnes & Noble. Are they perfect? Of course not. Are they serious competitors? Absolutely.
We see this as an employee driven profit model – it’s people centric, which to us is the heart of your business.
On Thursday in our Quick Tips we will discuss ideas you can use to better engage your employees in improving customer satisfaction using the concepts presented in the service-profit chain model.
It doesn’t help you, your employees, your customers or your business to live and work under the false impression that you are the smartest person in the room. Your ego may enjoy it, but you’ll be holding a party for one.
Copyright 2010 Kubica and LaForest
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