Improving customer service is not that hard

At the top end of customer service, airlines such as Etihad and Emirates are world leaders. In hospitality, service in nearly all five, four and three-star hotels is outstanding. This quality is not reserved for the private sector. For example, renewing my passport or driver’s licence is now pure joy compared with a decade ago.

At the bottom end of customer service there is a wide range of culprits. One of the banks that I deal with repeatedly calls me ahead of when a credit card is due, to tell me that the due date is approaching. Worse, it calls at all hours – not only during working hours – and calls repeatedly even if you reply. Even worse, it often uses an automated system to call, and when I answer a message tells me to hold the line while they connect a call agent. This insanity repeats itself right after I pay – the bank wants to thank me for paying. I do not see how any sane executive looked at the proposal for this service and decided that, yes, this would improve customer satisfaction.

Another bank I use has an internet banking application that allows me to log in using a code that is texted/emailed to me or generated via an electronic device. Most banks do this. They also use a virtual keyboard whereby I have to use the mouse to click on the keyboard on the screen to enter my password. Many banks use this. What drives me crazy? This particular bank positions the keys randomly on the keyboard so that I have to spend five minutes playing “Where’s Waldo?” to type out my password. I now fear having to access my account online. This approach to security has been dropped by everyone else.

The problem with customer service is that there is little incentive for decision-makers to do anything about it. Consider companies and government departments of old, where there was no queuing system for clients. It was a mob scene, but it did not affect the employees that much. It takes a brave executive or technocrat to request a simple system, queue tickets on arrival – that costs money but the return is to the brand and not easily measured. I for one would like to thank all the decision-makers who put such systems in place, thus ending chaos and frustration.

Etihad, Emirates, the Jumeirah Group and others all understand the value of customer service to their brand and the value of their brand to their profits. The stronger the brand, the more it can charge for services and the less it has to pay employees and suppliers who benefit from working for a company with a brand.

So how can you avoid the mistakes of the two negative examples used above? The first is a little common sense. For example, tacking on mountains of supposed internet security systems may seem to make things safer, but in the end they also make things unusable. Managers should use the services of their competitors just to get a first-hand feel for what is happening in the market.

Another tool is an effective customer survey. To be effective, such a survey must first attract a representative cross-section of the client demographic. For example, it does not help the banks above if a client, such as myself, simply leaves, thereby denying the original bank the chance to rectify an issue.

More importantly, for a survey to be effective the executives of the company must do something with the results. A good way to encourage this is for companies to publish the results to their clients along with a plan to rectify the issues followed by a post-plan survey to see the results. This approach not only keeps management honest but also engages clients by showing them that they have been heard.

Customer services does not begin with the magic that is Etihad, Emirates or Jumeirah Group. It begins with simple steps: a queue ticketing system; virtual keyboards with keys in the normal positions; effective capture and remediation of client complaints.

These simple steps are not where client-service gurus usually start. They begin at the advanced stage, talking about interpersonal relationships, the psychology of managing an irate customer and, invariably, a client-orientated culture. These are important points but only relevant after the systems, processes and procedures have been fixed.

This article was originally published in The National.

Good Management is more Kaizen and less Blitzkrieg

Many finance authors, including this one, will usually talk about the big steps that a company has taken to become successful. Sony’s Walkman portable tape player in the 1970s, Microsoft’s Dos operating system in the 1980s and Apple’s iPhone today. But this is not managing a business so much as it is innovation; innovation can only take you so far, and it is not strictly necessary.

What is management at its core? It is constant maintenance and making small, continuous improvements, which the Japanese call Kaizen and is one of Toyota’s core values. A good metaphor is tending a garden. A garden, like a company, cannot usually just come into existence. Sure, you could buy plants and grass turf and have a garden overnight, but that is no different than buying a company. I’m talking about planting seeds and nurturing the garden.

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The 7 Habits versus GTD

I have been writing predominantly about the management of other people and have for the most part neglected the equally important issue of managing oneself. Today, I begin rectifying that.

There are two main popular approaches. The first and older one is espoused by Stephen Covey in his seminal book The 7 Habits of Highly Effective People. The book is a little dense but imparts great value, and I highly recommend reading it – perhaps on an annual basis.

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Strategic Downsizing

I have been involved in downsizing at many companies and have been exposed to both the theory of downsizing and the horror of the reality. In today’s business environment we are seeing faster downsizing than usual, but in many cases still not the most effective approaches.

Where senior managers and business owners make the biggest mistake is in understanding their biggest risks in these scenarios – morale. The problem with morale is that it takes time to build and is easy to shatter. The idea that damage to corporate morale can be quickly regained is false and leads to counterproductive strategies.

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The Absent Manager: Not a Mythical Creature

The absent manager is someone most of us have worked for at some point in our lives. Let’s see how to recognise them and the only choice in dealing with them.

A manager can be absent in two ways. The first is to be physically absent. The second is to be mentally absent.

It is not easy to identify the physically absent manager as it is not simply a case of not showing up to work. Managers can be physically absent and still seem to be working quite hard.

One scenario is simply to be out of the city/country ostensibly going to training courses, conferences, marketing, due diligence trips and international client/partner/vendor visits. Although such trips can be useful they are not necessarily the best use of a manager’s time and certainly should not occur frequently.

The second scenario is similar but occurs in the same city as the manager’s office. Here the focus switches predominantly to clients. Again, a manager constantly visiting clients pitching the products and services of the company and trying to close deals is the normal course of business. On the other hand if the manager meets with clients with no specific agenda tied to identifying revenue producing opportunities then it is a waste of time.

There are many warning signs to meeting clients as a replacement for real work. This includes meetings that occur in coffee shops instead of the client’s premises. Why on earth meet in a coffee shop? There is no privacy, there are no resources to support the meeting and it is never quiet. Worse is the manager who spends his whole day wandering from coffee shop to coffee shop, an executive nomad, filling his time in between scheduled meetings with other ineffective managers swapping gossip and who believe coffee shops equate to managing. One almost wonders if the revenue of the local branches of Starbucks, Costa and Bateel aren’t a negative indicator of management effectiveness.

An internal warning sign is when a manager spends the whole day in coffee shop meetings but at the end of the day does not generate any action items. A natural consequence of any meeting is to produce minutes of that meeting highlighting decisions made, potential revenue opportunities and action items. This should happen for every single meeting. So a day filled with six coffee shop meetings and a lunch should end with several hours writing meeting minutes, reflecting on opportunities and identifying action items. Instead it seems that the only outcome of all that coffee is frequent visits to the restrooms.

The third and final choice that a manager has to be absent is to be physically present in the building but not present in the relevant offices. I do not know who cursed us with the concept of “management by walking about” but there is nothing effective about that other than to give absent managers legitimacy.

There are exceptions as always such as trading floors or factory floors where real-time work in an open space can be observed. However in most cases employees work singly in offices or cubicles and just randomly dropping in adds no value to the employee and provides no insight to the manager. Instead it gives an excuse to the manager to socialise with employees and usually waste their time. Sadly, anecdotal evidence points to attractive female employees as being the most likely target of this tactic.

One step up from this is meetings. Nothing gives the incapable and incompetent a better sense of fulfillment and accomplishment then attending a meeting. Warning signs include frequent ad hoc meetings (a week’s notice should be a minimum requirement), lack of agenda, lack of advance material, a goal other than to reach a decision (such as updates), lack of action items, lack of circulated minutes, etc. Again, these are not hard and fast rules but a pattern of such behaviour is a clear danger signal.

If you do manage to corner a professionally absent manager that doesn’t mean that you will get anything useful, especially if you are looking for a decision. The defensive judo skills of the absent manager include “Did you get sign off from the following 36 people?”, “There isn’t enough data, get more,” “Let’s run it up the flag pole” and the dreaded “Leave it on my desk.”

Entertaining as it is to talk about the absent manager, it is important to understand that he is lethal to your career. The fact that it is not overtly malicious behaviour makes it all the harder to recognise. But if you your boss is a professional absentee, you are best served by finding a new manager, even if it means going to a new company.

This article was originally published in The National.

Letting Go for Sustainable Growth

Why do successful companies fail? One reason is an inability to let go of a successful product. Read that again – the issue is not about an inability to innovate but an inability to let go of successful products so as to allow newly developed superior ones to take their place.

An example of how to do it right is Apple and the iPhone. Apple’s turnaround at the turn of the century began with computers. The iPod was a hit and provided much-needed diversification for Apple. In late 2007, when the iPhone was launched, Apple faced a pivotal moment.

The iPod sold 50 million units worldwide in 2007. To use the language of the industry, it was a killer product. The problem was that the iPhone would cannibalise part of the iPod market. Indeed, the iPhone was basically an iPod with a GSM chip implanted.

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Leadership versus Management: Myth and Reality

The “Leadership versus Management” debate has mushroomed, infesting every corner of the business media space. Sadly, the debate has devolved into a polarised view of leaders as empowering saints and managers as narcissistic hell-spawn. This is not only wrong, it is harmful.

Leadership and management are simply roles. Anyone in business who fills just one role and not the other will fail spectacularly. Not knowing when each role is appropriate will also stifle an executive’s career.

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The Importance of a Culture of Trust

This blog recently talked about the importance of trust-based systems, as opposed to personal trust. This article continues investigating the role of trust in business with a focus on the importance of building a culture of trust.

The prime mistake made with respect to building a culture of trust in a business is believing that the aim is to have senior employees trust more junior employees. This is the complete opposite of what is needed, and the core reason that so many corporate cultures lack an element of trust.

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Fox News: Manipulative not News

Fox News is arguably the dominant news network in the United States. It is also quite possibly the most hated channel on Earth. Understanding that dichotomy also leads to some interesting business insights.

Although Fox is often accused of reporting biased to the conservative side, it is clearly its political commentary that the anti-Fox crowd finds most objectionable. Studies have shown that Fox News is not as effective at keeping its viewers informed.

Yet despite the channel’s objective failure as an information provider, its viewership stays loyal to the brand and its ideology. A short digression on commentary, or rhetoric, can explain the Fox phenomenon.

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Financial Gems found in Famous Quotes

I have noticed a trend whereby people will post or tweet a quote, with nothing else: no analysis, no interpretation, not even a link to a relevant real world situation.

But that is not what I find strange. What I find strange are the scores of ‘likes’ and dozens of responses along the lines of “Right on!”, “Exactly!”, “How insightful!”, etc. How vapid. There is, though, one redeeming quality of this social media blight. I get to use the word vapid in writing for the first time in my life. Also blight.

I am not saying that these quotes from great minds are not enlightening, just that if one wishes to post quotes, then they should use it as the foundation of a deeper meaning. Otherwise it is just spam.

Not being one to simply point out problems without providing solutions, allow me to lead the way in posting pearls of wisdom from the long dead as well as my insights on these quotes. Attempting to provide value, if you will.

The trouble with the world is that the stupid are cocksure and the intelligent are full of doubt.
– Bertrand Russell

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