Responsible Service Part 2

In part one we talked about the importance of personal responsibility in driving customer satisfaction. This week is about building a culture of personal responsibility, and how that culture creates opportunities for highly personal relationships.

THE IMPORTANCE OF CULTURE

Culture is the average of every individual’s values in your organization. This means that if the majority of individuals in your company desire to make a name for themselves, the culture will reflect that “dog eat dog” mentality. Likewise, if your employees value unity, conflict resolution is a skill many of them use on a daily basis. No matter what, culture exists. And though cultures vary, two broad types of culture separate every organization: transactional or relational.

TRANSACTIONAL BUSINESS

Like a vending machine each input variable results in a specific output. With a vending machine, humans put in money, we punch in our request, and the machine distributes the item. When the transaction goes smoothly we feel satisfied. When the machine doesn’t deliver, we can call the 1-800 number but what we really do is bang on the machine to get our snack to break loose or concede the battle and pay again.

RELATIONAL BUSINESS

Here, inputs and outputs still exist, but the delivery process gives us a sense of connection. The best example of this in our world is the relational vending machine, Amazon. Inputs and outputs still exist; however, Amazon also offers recommendations or “frequently purchased together” suggestions that create a shopping experience more tailored to our needs and wants. They also send updates including shipment and delivery notifications. When the transaction goes smoothly, items arrive in a couple of days. When Amazon doesn’t deliver, a short phone call, email or live chat result in a quick refund.

I’m not saying transactional businesses are inherently bad, it’s just that businesses with relational cultures have higher levels of trust and commitment from their customers. And building a relational culture and a culture of personal responsibility go hand in hand. In fact, there is one question that can help us do both at the same time.

THE QUESTION: HOW ARE YOU DOING?

It’s a question we hear every day. Unfortunately, we use it so much we’ve become numb to its meaning. Yes, we can use it to show concern for someone we care about it, but most of the time it’ is just a responsive greeting. We use it when talking with complete strangers without any expectation of an honest response. Yet, despite its commonality, if we are intentional and genuine, this question prevents us from remaining passive. By asking it, we assume the burden of hearing and replying to the answer.

And leaders must be the first to ask, “How are you doing?” and listen. For when leadership asks and is intentional about listening, they model care and responsibility for their team. Over time, this will encourage other team members to ask the question and assume the burden to listen and act. In so doing trust, commitment, and regard for others will be reciprocated beyond the four walls of your business.

How do you get started? What does asking this question look like in different business activities? To help answer these questions, here are three ideas you can use today.

ASK TEAM MEMBERS IN THE DAILY HUDDLE

This is a discipline we recommend to all of our clients so that the team begins each day on the same page. The focus of these 5-10 minute meetings is for leaders to support their employees by asking three questions.

• What is on your list for today?

• Did you get yesterday’s list done?

• How are you doing? Are you stuck?

The beauty of the huddle is that there isn’t enough time to get into operational weeds, and the focus is on hearing and responding to the needs of your employees.

ASK CUSTOMERS WHEN WE TALK TO THEM

You should directly ask your customers the question with phone scripts or surveys. You may think it’s a no-brainer, but your receptionist should ask this question to every customer. Not only does it provide valuable intel about the customer, but if the receptionist passes that info along to the next department who speaks with the customer, it immediately becomes an opportunity to communicate that your company listens and cares.

ASK OUR PROCESSES WHEN WE MAKE CHANGES

Weekly operations meetings are a time to address issues and troubleshoot. In these meetings someone in the room should always play “customer advocate” when discussing changes. The assigned individual’s role is to get everyone in the room to ask, “Is the customer going to be better off after this change?” In this indirect way we are trying to ask our customer “How are you doing?” after a change is made. The answer should always be better, and it is the advocates job to articulate exactly how the customer will be better off after the change.

Cultures don’t change overnight and creating a culture of personal responsibility will take time. By asking “How are you doing?” and intentionally listening to the response you will start to see individuals not only accept, but assume personal responsibility in the business. Always start from the inside out. Your team needs to know that you feel a responsibility toward them before they can ever pass that along to customers and the business at large.

Responsible Service

The role of customer satisfaction in business is undisputed. Businesses exist because they satisfy a customers wants and needs by delivering products and services for a profit. Without satisfied customers, businesses fail. Yet, despite its importance, predicting customer satisfaction is surprisingly hard to do. There has got to be a better, less dynamic, variable that accounts for satisfaction and that is standard across businesses.

That universal variable is personal responsibility. Customer satisfaction will be higher in an organization where employees have a greater sense of personal responsibility for the customer’s satisfaction. So how would we measure this variable? How does it differ from fault? How can a business leverage this variable?

To answer these questions, I’m separating the topics into two blog posts. Here I’ll talk about personal responsibility and the distinction between fault and responsibility. In my next post, I’ll share the question that each individual in your organization should be asking to build a culture of responsibility and how this transforms any company to be more relational.

Personal responsibility

The variable that you should use as an indicator of customer satisfaction is personal responsibility. Measuring personal responsibility is an inexact science at best, but if we get creative there is a way we can gauge to what extent individuals within the company view their efforts as being responsible for customer satisfaction.

Imagine a company survey that asked employees to fill out a pie chart assigning customer satisfaction responsibility to each department. In this company there are four departments: sales, service, operations and administration. If each department viewed their efforts as equally responsible for customer satisfaction each would draw a perfectly weighted pie divided into four neat pieces. In other words, each department when asked independent of the others, decided that they were only 25% responsible for the customer’s satisfaction.

But imagine a company where the sales department weighed themselves as 60% responsible with the other departments sharing the remaining 40%. Service weighed their portion at 75%. Operations similarly put their responsibility as 65% of the pie. Administration viewed their role as 85% responsible for customer satisfaction. For purposes of our “Personal Responsibility Metric” we don’t care how each department rated the others. We only care how each department weighed itself. In this company the totals don’t add up to 100%. They add up to 285%.

It is safe to say the the company where individuals view their roles as more responsible for customer satisfaction will enjoy higher satisfaction ratings among actual customers.

By contrast, a business where each department thinks customer satisfaction is someone else’s responsibility cannot expect to find many satisfied customers in real life.

Fault vs Responsibility

It’s important to note we aren’t measuring fault. Fault by nature is error-centric, where responsibility is solution-centric. There’s a saying, “If someone leaves a baby on your doorstep, it isn’t your fault, but it is your responsibility.” This perfectly highlights the contrast between two terms that are often used interchangeably.

Don’t measure customer satisfaction on the basis of fault or an employee’s ability to do their job; this doesn’t work. I’ve experienced skilled employees who’ve done their jobs well but left me feeling unsatisfied as a customer. One of our clients experienced the cost of a dissatisfied customer when a $50,000 contract was cancelled. In the meeting to determine what went wrong, we heard mostly fault-finding. Everyone was looking for an individual or process to blame for the customer cancellation. But there was no silver bullet. In the end there was just a string of instances where everyone viewed customer satisfaction as someone else’s responsibility.

The organization where fault finding is the norm — though it is important to identify errors — is ultimately trying to avoid disappointing customers over thinking of proactive ways to satisfy them.

The Role of Culture

How then does a company leverage personal responsibility to improve overall customer satisfaction? Through the culture. Without a culture of personal responsibility, most businesses will default to fault finding in a crisis. This is reactive and toxic to a healthy team. In my next blog post, I’ll give you a very tangible question that everyone in your company should be asking to build a culture of personal responsibility. And I’ll show you how this transforms even the most transactional encounters with customers into opportunities for highly personal relationships with your company. 

Before You HIRE Your Next Customer, Ask These Three Questions

A few weeks ago I had lunch with the owner of a creative agency. We talked about the difficulties of work related to managing customer expectations. He shared the story of a customer who came to him wanting a complete re-brand for a community district. The project required designing unique street signs, facilities signs, park benches, trash cans, etc. All to create a distinct atmosphere for the district.

This was a huge opportunity for his company; the district received a ton of foot traffic and the community recognition alone would have been sure to bring new business to the firm. There was only one catch, the customer wanted the plan complete and ready for implementation in just two weeks. 

I love this story because I think it represents a dilemma that business owners face more often than they admit — the question of "Should I, or shouldn’t I?" Often times the knee-jerk reaction is to accept the opportunity and then struggle to meet the customer’s expectations. This is haphazard. There is a better process that incorporates strategy when deciding to work for customers and their expectations. That process involves three questions.

Question 1: Do we have the resources to execute?

This question is the logical starting point. It requires that you clarify the constraints that are rooted in the customer’s expectations. Resource constraints come in many forms. Time, personnel, materials, cash, and technology are the minimum constraints that should be considered before you decide whether or not you can serve the customer. Ask clarifying questions like:

• Do we have the personnel to deliver/perform our product/service?

• Will we have to hire to get the job done?

• Can we deliver on time?

• Will we have to move current deadlines to make the customer happy?

• Do we have the materials, inventory, or technology required to deliver?

Depending on your answer, it may be wise to consider declining the work. Even if the new agreement will provide all the cash you need to go out and buy resources you should consider that you are reacting to the situation, and that the firm that will be delivering the finished product is not the firm you have now. Being able to become the firm that can deliver is not the same as being the firm that can deliver. Which leads to our next question.

Question 2: Are we changing who we are to serve this customer?

Deciding if you can satisfy a customer depends on more than the availability of resources. This is because a company’s identity is not simply its products and services, but also why and how it delivers those products and services. Said another way, a company’s identity is in the values and culture that shape every interaction within the organization. The last thing you want to do to meet a customer’s expectation is undermine the current culture. 

This is why making the decision based upon the availability of resources alone, although prudent, is incomplete. For example, say you’re short the personnel capacity to do the work, but the customer provides and advance that pays for workers. How quickly are you going to be able to recruit and hire? Do you plan on retaining them? If you don’t plan to retain them, how likely is it that they will adopt your culture and values?

Cutting corners to satisfy a customer’s expectations could harm current customer relationships, establish new, undesirable norms, and worse, erode your company’s culture and identity. Depending on your answer to this question, it may be wise to consider referring the customer elsewhere. But if you are still thinking about saying yes there's one more question.

Question 3: Do we really want to do the work?

This question is probably the toughest, because it requires that you temper your own expectations. It requires honest reflection on your own motivation. Yes, you have the resources and you are staying true to your values, but is this job likely to get you out of bed? Are you doing it for the next dollar? There are plenty of other ways to make money.  Is the association with this customer one you will be proud of? Do they stand for the things you stand for? Is this work, all things considered, that we are going to stand behind and be proud of? Only after this last question are you ready to make the call. But rest assured you’ve carefully considered whether or not the next steps are worth taking and you are managing customer expectations strategically.

So, what did the business owner I had lunch with do? He gracefully declined. He explained it wasn’t a lack of resources, or that it was contrary to the DNA of his company. It was that he couldn’t answer the last question with a confident, yes. His desire was to lead the project, but the expectation from the customer was too idealistic. He knew that he couldn’t stand proudly behind his work under a demand that it had to be done in two-weeks. So he said "no" without any regrets.