Tag Archives: Speed

Urgency Without Direction is Chaos

John P. Kotter’s book “A Sense of Urgency” provides four (4) tactics to jumpstart change in your organization.  However, the most compelling reason to read the book is to internalize the distinction between a true and a false sense of urgency.  One is high in activity; the other high in achievement.  One capitalizes on crises; the other is paralyzed by them.

Few would argue that accomplishing a goal quicker is bad.  After all, speed allows companies to exploit their advantages and minimize their weaknesses.  What good is innovation if you can’t get to market before your competitors?

The problems develop when casual practitioners confuse speed with true urgency.  That is, they spend more time and effort on the appearance of activity (false urgency) than they spend accomplishing initiatives which help the business move forward.

To leverage a sense of true urgency one must first develop a sense of direction.  Consider this scene between the Alice and the Cheshire Cat in Lewis Carroll’s “Alice’s Adventures in Wonderland.”

“Would you tell me, please, which way I ought to go from here?”

“That depends a good deal on where you want to get to,” said the Cat.

“I don’t much care where – ” said Alice.

“Then it doesn’t matter which way you go,” said the Cat.

“—so long as I get SOMEWHERE,” Alice added as an explanation.

“Oh, you’re sure to do that,” said the Cat, “if you only walk long enough.”

Many customer service teams suffer from such unguided initiatives.  They improve a meaningless metric or solve a trivial issue while the game-changers remain unsolved (or worse, unidentified).  Here are four ways to avoid false urgency.

Failing to tackle false urgency has serious repercussions to the long and short-term health of your business.  Ask yourself “how long can you afford to walk SOMEWHERE?” How many of your employees will follow you without knowing the destination?  And which of your investors (shareholders) will give you the latitude to stumble without direction?

The pivot point is that direction and urgency go hand in hand.  Direction without urgency yields no change.  Urgency without direction yields change without meaning.

Don’t end up like Alice walking aimlessly through life.  Get directions first.

Aligning your Business to Customers: Pillar 2 – Products

If employees are the starting point for connecting businesses to customers, products come in a close second place.  For a company to have value to a customer, products must have value.

There are many ways to determine value.  Some customers value speed, some value low cost, and others value status.  Products must appeal to the targeted market.  Walmart knows it is not Nordstrom’s.

I occasionally run across companies who confuse “revenue at all costs” with “revenue at the right margin.”  What would happen, for example, if Nordstrom’s tried to appeal to a typical Walmart customer?  In order to sell anything, prices would have to come down.  Falling prices would be followed by fewer perks, say less personalized service when buying clothing.  Or perhaps Nordstrom would have to eliminate its well-known return policy.

Another case arises when the target market doesn’t place enough value on the products to support the business.  Blockbuster and Hollywood Video are finding out what happens when the products no longer meet the convenience and cost objectives of customers.  Companies like Netflix must take steps to align their products with their customers.

In short, the products and services we offer must meet a need.  Note that being trendiness is not likely a sustainable business.  Pet rocks and parachute pants had their place once.  They now belong in museums as relics of earlier times.  Sad note for engineers… cool stuff (e.g. products without a market) isn’t the answer either.

The pivot point is that products that meet customers’ needs, sold at a fair price can sustain a business.  Meanwhile, the opposite is not true: businesses cannot be sustained by products that fail to meet customer needs.  The second pillar of aligning businesses to customers is to develop/deliver products that succeed in meeting customer needs.

Don’t miss Pillar 3 – Communication… subscribe here.

Setting Your Company Apart in a Commodity Market

In a recent Business Week article about JPMorgan and Bank of America we learn that bank consolidation has led to unhappy customers.  Not surprising really and tough to think of this as “news”.  Clearly, pushing two behemoths together causes change.  Banks know they can benefit when they leverage economies of scale and so M&A activity is an attractive option.  What they seem to have missed is that these benefits should extend advantages to their customers too!

I don’t understand why bank-owners (which now largely deliver a commoditized service) think they can cut corners on customer service.  I’ve written before about three controllable dimensions of service: cost, quality, and speed.  In a commodity market cost and speed are equal which is why companies like Bankrate even exist.  Customers see little difference between one bank and another.  And because costs to switch are low consumers can choose with whom to do business.  Bankrate provides the perfect answer.

In a commodity market, only service differentiates.  (In this example of bad PR, the Bank of America and JPMorgan are definitely not creating positive differences.)  Excellent service creates strategic advantages which:

  • Protects your existing customer base,
  • Generates positive word of mouth, and
  • Attracts new customers.
  • (Repeat as needed to develop your business.)

About the only thing that does make sense in this article is the bank’s reticence to comment publicly about the poor customer service they are delivering.  What can they say?  “We are improving shareholder value by short-changing our customers.”

The pivot point is that spending money on customer service should be considered an investment, not a cost.  Wells Fargo’s customer satisfaction has benefited after acquiring Wachovia, a company with high customer satisfaction.  Part of Wachovia’s value to their customers and to their shareholders comes precisely from their investment in a customer-focused culture.