Tuesday 30 January 2018

Your Most Unhappy Customers Are Your Greatest Source of Learning

This was one of Bill Gates’ observations, and it resonated with me for a number of reasons.

Human beings naturally avoid pain, so when we get a customer complaint, our natural reaction is to go on the defensive.  It’s called the “fight or flight” reaction referring to man’s early time on earth when he had to either run away from danger or face it if he had no choice.

II’ve worked with managers whose strategy in these situations was to find some way of making it the customer’s fault that something had gone wrong.  In many cases, there may well be contributing factors on the customer’s side that resulted in things unfolding in the way they did.

We have three choices when faced with complaints:
  1. Ignore them (some organisations have a reputation for this);
  2. Fight back (same applies);
  3. Sort out the problem and learn from the experience.

Complaints are good – they mean our customers like our product or service and want us to put something right.  It’s the ones who leave without saying anything (except to their friends, maybe costing us future business) that we need to worry about.  “No news” is not necessarily “good news” in this case.
  
A complaint is free information that something is wrong.  There is no such thing as a “fool proof process”.  We can never account for the reactions of our fellow humans.  What I understand by, for example, the colour “grey” may be “light grey” or “mist” or “smoke” to someone else.  I recently saw an instruction to customers to click on a “teal” coloured button in a website.  If I don't know what “teal” looks like or am colour blind, this instruction is of little use.  Whose fault is it if something goes wrong?

When customers complain, we can learn how to improve our processes, products, website, training and more.  A complaint may also be an indication that fraudulent activity may be taking place.  If we see the number of complaints about a particular product, service or person rising, we know where to take action.

Businesses rely on customers to make a living.  No customers, no money, no business.



I have spent more than half my life delivering change in different world markets from the most developed to “emerging” economies. With more than 20 years in international financial services around the world  running different operations and lending businesses, I started my own Consultancy to provide solutions for improving performance, productivity and risk management.  I work with individuals, small businesses, charities, quoted companies and academic institutions across the world. An international speaker, trainer, author and fund-raiser, I can be contacted by email . My website provides a full picture of my portfolio of services.  For strategic questions that you should be asking yourself, follow me at @wkm610.

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Tuesday 16 January 2018

"Gut" or Plan?

The “Action Imperative” – the need to “do something” - is something that we will all have experienced.  Our society demands “action”, Winston Churchill’s catchphrase in WWII was “Action this day!”.  If one is not see to react immediately to various events or stimuli, one is considered lacking in initiative or drive.

When our “action” works out well, we get the glory; when it doesn't, we either try to forget it or get criticised by others. 

Startups and corporate projects are fertile grounds for “action”.  The new excites us and can even act as a drug (after all, we’re “doing something”).    This is why one can see many busy (but few productive) people in the workplace. 

Because of the need for “action”, we face the “I haven’t got time…” syndrome.  We all have multiple tasks to carry out, hundreds of emails to answer, meetings, conference calls… and often “no time to think”. As a result, things may not receive the attention or consideration that is needed to avoid potentially serious consequences. 

A recent example is the decision to require passengers to pack their laptops in check-in baggage as terrorists were supposedly manufacturing explosive devices designed to look like laptops.  The rationale behind the decision was perceived by safety experts as flawed because laptops run on lithium-ion or nickel-metal hydride batteries which can overheat.  If such a device catches fire in an aircraft cabin at 35,000 feet, cabin crew can do something about it.  If it’s in the cargo hold where no one can get at it, catastrophe can be the result.  In the end, the ruling was rescinded, with passengers now required to take laptops out at airport security checks and turn them on to prove they work.

Technology has only served to exacerbate the problem, with people expected to be “online” 24/7.  When I first began my professional career, email didn’t exist, so communication was by letter and memo.  These had to be thought out and (perhaps) dictated, allowing additional time to think.  There is an expectation amongst some that emails should be answered immediately.

The result of this is that, instead of considered responses, we end up relying on that part of our brain (the “limbic” part) that we use when under stress – the part that works on emotion (“gut”) rather than thinking things through.  Some call this the “fight or flight” response.  When Cro-Magnon man was a hunter-gatherer, this instinct served him well, and it still has its uses in certain situations in the modern world.  However, if a “fight” reaction occurs at the wrong moment in the business world (and one only has to look at the behaviour of certain world leaders for examples…), this can have disastrous consequences.

The conclusion?  We need to have a clear understanding of our business environment and its attendant risks.  For this, we need to think.  Thinking finds new (and possibly better) solution, but requires time.  If we understand our environment, we have that extra time to think things through, even if there remains a degree of uncertainty.



I have spent more than half my life delivering change in different world markets from the most developed to “emerging” economies. With more than 20 years in international financial services around the world  running different operations and lending businesses, I started my own Consultancy to provide solutions for improving performance, productivity and risk management.  I work with individuals, small businesses, charities, quoted companies and academic institutions across the world. An international speaker, trainer, author and fund-raiser, I can be contacted by email . My website provides a full picture of my portfolio of services.  For strategic questions that you should be asking yourself, follow me at @wkm610.

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