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Reprinted with permission from Get It, Set It, Move It, Prove It: 60 Ways to Get Real Results In Your Organization by Mark Graham Brown • Copyright © 2004 by Productivity Press, a division of Kraus Productivity Organization, Ltd. •www.productivitypress.com
Chapter
6: Find Out What Aggravates Customers
Organizations
spend a lot of money trying to find ways to delight us. Extra
miles, extra soaps, fancy packaging, no-cost options, free minutes,
free months, and other things are supposed to entice us to buy
and continue to buy their products and services. When we do buy,
what we want is something pretty basic, and most of us are not
thrilled by these little extras. What we want more than anything
else is to have a product or service work like it is supposed
to and not be aggravated when we are buying it or trying to enjoy
it. How many aggravations do you think today’s airline passengers
have to put up with to go from point A to point B? Try contacting
your local motor vehicle department for anything more than a routine
transaction and see how many aggravations you must endure. Try
taking something back to a discount retail store and it will make
you think twice about shopping there again. For that matter, try
buying stuff at one of these places on a Saturday. They even make
spending money a pain in the butt.
Organizations
would do better if they figured out all the little and big things
they do to aggravate us and eliminate them, rather than waste
time trying to “delight” us with extras when they
can’t even get the basics right. Forget the espresso in
the service department of the car dealership, just get my car
fixed right when you promised. Forget the extra miles and certificates
for free trips that always seem to come with a page of restrictions
that make them unusable, just get the planes to land safely and
on time. Forget the monthly visits from your friendly account
reps with more samples of drugs that have two pages of side effects
and don’t seem to work with half of patients; market a drug
that works without side effects that are worse than the symptoms
being treated.
Ever try to buy
anything on the Internet? Most sites are so complicated and have
so many screens where you have to enter your email address and
password that it is almost less aggravating to contact your call
center and wait on hold for 20 minutes.
How about shopping
at a home-improvement superstore on Saturday? These are, of course,
just one customer’s personal experiences, but whenever I’ve
shopped at one of these retailers on the weekend, I always have
to park my car a half a mile away; I get lost trying to find the
items I came for; I try to find a store employee to help me and
eventually I give up, after filling my cart with a bunch of cool
stuff that I didn’t even intend to buy. Then I wait in line
with a bunch of other weekend warriors; I finally see the store
employee, but he is not there to help me. Instead, he wants to
check my bags and receipt to make sure I didn’t steal anything.
Selection and savings are important, and the superstores excel
at both, but I think they could make shopping a little less aggravating.
Some leading organizations, such as FedEx, have done a lot of
research on the different things they can do to aggravate a customer.
They not only have a long list of these aggravations, they rank
them from the most minor to the worst. If your package was on
the plane with Tom Hanks in Castaway, that would probably qualify
as a level ten aggravation. Leading organizations know all the
ways they can make life difficult for customers and not only measure
the occurrence of these things, they try to eliminate the aggravations
entirely. Returning a rental car is now rarely aggravating thanks
to hand-held terminals that agents use to check you in and get
you a receipt. However, cashing a check at a bank is still, at
best, a minor aggravation.
Chapter
17: Writing Stuff Down Does Not Make It Happen
Big
organizations love to write stuff down. They have binders filled
with policies, procedures, work rules, flowcharts or process
models, standards, specifications, appointments, meeting minutes,
strategic plans, operational plans, mission and vision statements,
team charters, project plans, PowerPoint presentations, and
things-to-do lists. Somehow, it makes us feel better to write
stuff down.
I
recall a training program I attended on time management where
we learned to use this cumbersome notebook to write down our personal
goals for the week, activities, and so forth. Most of the attendees
felt that the approach was too cumbersome and time consuming,
but the company was pushing use of this notebook, so most carried
one around and tried to use it. I continued doing consulting work
at this company for several years and watched the number of people
carrying around their bulky planner notebooks diminish each month.
One guy I talked to summed it up nicely: “I took the time
I used to spend writing stuff down in my planner and now I just
do my job instead, so that has added about an hour a day of productive
time.”
When
we write things down it seems like we are doing valuable work:
documenting a process, writing a policy, preparing a set of goals.
These things all sound like things people at work should be doing.
The problem is we spend too much time planning and writing stuff
down that we’re supposed to do, and too little time doing
the things we’re supposed to do.
Writing
down goals, procedures, or anything does not change anyone’s
behavior unless they first read it, and have appropriate resources
and consequences for accomplishing what it says we are supposed
to do. One of the best business books in recent years is called
Execution. The authors make some excellent points about the futility
of simply writing stuff down. You need to execute – do the
job – not just write down what you intend to do.
I
remember working with one of the largest aerospace companies that
loved to issue new policies to try to change behavior in the organization.
Whenever people were not doing what they were supposed to, corporate
issued a new “Corporate Policy Directive” and sent
it out to everyone. Some of the policies had been issued many
times with multiple drafts, so a complicated coding system soon
had to be devised to sort all the policy directives so that CPD
39-a. rev. 3 was not confused with CPD 39-a. rev. 2. Do you think
that these policies controlled a lot of behavior? Do you think
that most people even read them? Of course not. But it made the
corporate types feel like they were doing their job.
Remember
in the 1990s, when everyone was enamored with process mapping?
Using a collaborative team process, we created flowcharts for
everything an organization did. We even got ISO 9000 certified
based on the excellence of our documentation. The problem is that
employees didn’t look at the process maps very often so
they still did things the way they had always done them, and we
even forgot to show them to the new kid who started last week
and might have found them helpful.
Chapter
33: Activity Does Not Equal Results
Managers
always feel better when they see people who look busy and engaged
in work. An office worker friend explains that she always takes
a file folder or two with her and always walks fast. As a result,
people think she is a hard worker even though she confesses to
only working about three hours out of an eight-hour day. Many
slackers have learned the right behaviors to spend time on to
give the impression that they are hardworking team players. Most
eventually get found out, but some have managed to slack off their
entire careers by engaging in some shrewd behaviors. The point
of this chapter is that moving it is about getting results, not
about behavior or action. Just like people write many goals and
plans that they never achieve, they also waste a lot of time on
activities that do nothing to produce results.
You
see this at work, at play, and in all activities. I watch people
sweating in the gym, doing exercises all wrong, lifting heavy
weights, and they wonder why they never look any different. The
best lesson I got in finding the right behaviors to spend time
on and deciding which should be dropped from my repertoire was
a recent client project. A large industrial organization hired
me to help determine the core competencies of a Project Supervisor.
This was one of the top jobs in the company, and Project Supervisors
managed projects with budgets of more than $50 million that involved
hundreds and even thousands of people.
My
project involved studying the two top performers – Frank
and Billy – and contrasting them with the poor- or average-performing
Project Supervisors to find the difference. They all had similar
educations, similar prior experience, and strong dedication to
the an organization needs procedures, rules, flowcharts, and plans.
However, simply writing things down is not enough to achieve performance.
We need to execute, not just write about it.
-
Do prepare brief to-do lists, policy statements, and procedures
manuals – but spend most of your time actually doing
the work. It does help to have a written plan (even a
daily to-do list), written goals, and written guidelines to
refer to: the best time-management
people say that
if you write it down, you’re more likely
to achieve it than if you just think about it abstractly.
But it’s more important to actually do that’s
on the list. So keep the written stuff brief, so you can get
to the job at hand – and finish it!
If people spent less time writing stuff down and more time doing
their jobs, all organizations could experience an improvement
in productivity. Don’t get me wrong: documentation is
important, and
organization. When I studied the poor- and average-performing
supervisors, I found that they all:
-
Worked more than 70 hours every week
-
Received 30 to 40 phone calls per day
-
Received 75 to 100 emails per day
-
Were well liked by their peers and subordinates
-
Participated in company teams and improvement initiatives
-
Felt stressed out by the job.
With all this effort and behavior, these Project Supervisors were
consistently way over budget on projects, missed major milestones,
and had a lot of rework and defects on their projects. Billy and
Frank’s projects were always major successes. They were
done under budget, on time or early, and often with close to zero
defects. These two guys were legendary in their ability to achieve
good results, yet their behavior would lead you to think they
were not hard workers. Frank explained it to me in an interview:
“My priorities are my health, my family, and my job, in
that order. I never come in before 7:30 and leave every day at
4:30. I work out at the gym until 5:45, shower, and have dinner
with my wife and kids each night at 6:30. I never work weekends
because that is when I spend time with my family. I don’t
read e-mails, so people don’t send them to me. I don’t
participate in any committees or any of the B.S. management programs
they have going on here, and I tell my managers to only call me
with something they shouldn’t be handling on their own,
so I only get three or four phone calls a day. I also don’t
bother with that stupid five-pound time management notebook everyone
lugs around. I know what’s important and I get it done,
rather than spend an hour a day writing down all this stuff.”
As you might expect, lots of people resent Frank and think he
is arrogant (he is), but Frank and his counterpart Billy have
full lives outside of work and do not appear stressed out like
the poor performers. Maybe Frank and Billy are just smarter than
their peers, but I don’t think so. I think that both of
these guys have learned which behaviors are important and which
ones are not. The lesson here is that the hardest-working, busiest
people are often the worst performers. Study the ones who are
calm, relaxed, and go home at 5:00 while producing incredible
results, and you will start to understand that a lot of the behavior
managers see that makes them feel better is probably a waste of
time.
Chapter 50: Looking for Links Between Hard and Soft
Metrics
A big utility in the Midwest has been tracking measures of employee
morale, customer satisfaction, diversity, employee education,
and various other “softer” measures on its corporate
scorecard for years. It does look at performance on these softer
metrics in a monthly one-hour meeting, but it has another meeting
once a month that lasts most of the day where financial and
operational results are reviewed. Further, the bonuses that
executives receive are only tied to the financial measures.
A $2 billion chemical company in Pennsylvania had a balanced
set of measures as well. Back when I worked with it, 95 percent
of the executive bonuses was for financial performance; five
percent was for performance on all the other gauges. What this
says is that the company had no faith in the non-financial metrics.
This is actually fairly typical, and these two companies are among
the majority that do not really believe that results on the softer
measures really link to the hard measures of profits, growth and
increase in share price. Consequently, they are unwilling to pay
for these things. Also, you can cheat on these other measures,
whereas everyone knows you can’t cheat on financial results,
right? Right – just ask WorldCom and Enron.
The problem with this approach is that almost all financial metrics
are measures of the past, as are outcome metrics for government
organizations. Executives often believe there is a link between
employee morale, customer satisfaction, and outcomes, but they
are not sure how strong the link is, and they do not trust the
data as much as the financials.
In order to convince executives that the softer measures really
do matter, and that these results can lead to improvements in
outcomes and finances, you need to prove it. So how do you prove
this? With data. A financial services firm I worked with found
that if it made enough small mistakes on customer accounts, or
made a couple of big mistakes, customers would leave, never to
return. In fact, it found the reverse to be true as well. By reducing
errors it could increase customer loyalty and drive up profits,
because long-term loyal customers are more profitable than new
ones that have to be lured with expensive marketing campaigns.
What this company also found was that you reach the point of diminishing
returns when it comes to reducing errors. Customers would forgive
them for an occasional minor mistake, and the effort required
to get to zero defects would not drive enough increased customer
loyalty to pay off. As a result of this data on the links between
operational errors, customer loyalty, and profits, senior management
paid much more attention to the data on operational quality than
in the past.
Sometimes these links between measures are discovered by accident,
rather than through a planned experiment. A pharmaceutical firm
found that a decrease in visit frequency by their sales reps actually
improved customer satisfaction, when it expected satisfaction
to decline. It had to increase the territory of sales reps so
they had to visit doctors less often, and focus groups later revealed
that doctors thought more favorably about the company because
a sales rep was not always in their office bugging them when they
had work to do.
If you ever hope to get senior management to pay attention to
your softer measures, such as: corporate culture, employee satisfaction,
intellectual capital, and customer loyalty, you need to prove
to them that these metrics link to things they care about. Executives
in government care about outcomes and image or public opinion.
Executives in business care about growth, profits, and share price.
If you can prove that there are practically significant links
between your softer measures and these outcomes, you can bet they
will start paying attention to them, and possibly even linking
pay to them like Ford, FedEx, and other forward-thinking companies.
Mark
Graham Brown has over 25 years of experience consulting with
organizations on measuring and improving performance. He is
the author of three books on Balanced Scorecards and Strategic
Planning: Keeping Score – Using the Right Metrics to Drive
World-Class Performance (1996), Winning Score – How to
Design and Implement Organizational Scorecards (2000), and now
Get It, Set It, Move It, Prove It (2004). Mr. Brown’s
clients include Bose, Medtronic, Northrop Grumman, Raytheon,
Army, Navy and EPA. He heads his own consulting firm in Manhattan
Beach, California.
Contact information for Mark Graham Brown can be found on his
website: www.markgrahambrown.com.
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