Transform Your Business

Focus on delivering customer satisfaction to achieve your long-term business goal

 

Another of my article is featured in CATS Recruit Section, page C30, of The Straits Times today, 17 June 2009. We have it reproduced here below for your reading pleasure.

Businesses will need to manage the process of cost reduction well to ensure that they do not unwittingly compromise their product quality or service standards. Cost-cutting is a short-term strategy. It is far more important that companies take a long-term view to build and strengthen their organisation and its capabilities now, positioning themselves for the eventual economic recovery.

Over the years, businesses have worked hard to win customers to get to where they are today. To lose their customers now would be tragic indeed. Studies have shown that it costs up to six times more money to acquire a new customer than to retain an existing one. In the slow economy, it would probably cost even more to win a new account.

Businesses must have an unrelenting focus on delivering the best customer experience. There must be the line of sight from the top to the bottom of the organisation. Take care of that and you will enjoy customer loyalty – and revenues and profitability will follow. Many companies find that 20 per cent of their customers provide over 80 per cent of their revenue. Thus, high levels of repeat customers will lead to high levels of profit.

To achieve that, companies must remain constantly vigilant about the changing requirements of their customers, understand their business models and the markets they operate in, know what their customers want and deliver these to help their customers succeed.

Achieving excellence

To achieve business excellence, everyone in the organisation needs to focus on delivering customer satisfaction by taking personal responsibility for improving processes and be empowered to make changes.

Departments need to become self-managed teams; cross-functional teams are needed at the company level; and the organisation needs to be flatter and more efficient for faster decision-making and response. When the company finds a problem or an opportunity for improvement outside, they need to collaborate to find the solution.

For that to happen and for that change to be successful and sustainable, a holistically integrated approach to business excellence, which engages all parts and elements of the organisation and its leadership, is required.

Leadership for change

Executives must lead the change process, the thinking about productivity and quality to learning to create a company that consistently delivers high value and customer satisfaction.
They must establish a culture of continuous improvement that seeks to remove bottlenecks, eliminate sources of wastes and customer dissatisfaction, and become more efficient and more effective.

There must be a focus on reducing cycle time, rapidly transferring knowledge and delighting the customer – these help the company to maintain its competitive edge.

Management must also be able to spot changing customer preferences, be aware of the changing competitive landscape, harness advances in technology, seize opportunities and implement new solutions rapidly.

Product and service standards have to stretch from the top to the bottom of the organisation and need to cut across all departmental lines. The organisation’s own learning and development process must be structured, systematic and focused on building on its strength. Critical systems that support hiring, training, recognition, career advancement and information access need to be in place.

Employee engagement

Organisations can reorganise, downsize and streamline their way to efficiency. These approaches are necessary but often not sufficient to catapult organisations into high performance mode because they neglect one essential component of performance – engaging employees in their work.

To mobilise the entire organisation, leaders must ask for employees’ inputs and their involvement, especially in areas that need improvement. Unfortunately, in modern day continuous improvement process this step is often missed which causes communication and ownership problems that hinder success. Employees must be trained and equipped to go from “good to great”.

Total approach needed

For companies to be successful in their business, they need to be responsive to their customers’ needs at every step of the business process involving every function, employee and leader. Anything short of a total approach is unlikely to deliver the desired outcomes.

Organisational transformation is a long-term process requiring a fundamental change in management practices and culture – a paradigm shift.

Finally, the organisational direction that advocates the strategic intent has to be clear about the objectives that needs to be achieved, the type of values and capabilities that are needed and how all this is going to be implemented for successful change to occur.

If you like this article, please subscribe to our blog and get our Free Report on “10 Secrets to Successful Employee Engagement”. If you have comments, we would love to hear. Please post them below.

P.S. To find out more about this topic, Register NOW and enjoy early bird discounted fee (by 19 June 2009) for our 2-day workshop at ST701 Professional Development Workshop to be held on 29 & 30 June 2009. Please log on to www.jobs.st701.com or email to st701@sph.com.sg. Alternatively, you may also call 6319 5979 / 6319 5923.

Is Your Organization Ready For Quality Leadership Culture?

It is never too late if you are planning to build a quality leadership culture for your organization. These are challenging times and only companies that continue to meet or exceed customers’ expectations will come out stronger from this period of economic malaise. Frankly, no organization or business can do without it if they plan to be around for long.

To help facilitate success, at least a few top managers of the group or company must be on board. We provide here a simple Checklist that allows you to do a quick assessment of your organization’s readiness to implement quality leadership culture.

Checklist For Quality Readiness:

You need to be very honest when using the checklist above. Count the number of checks in the list above after you completed it. If you have less than 6 check marks, you might want to try following the steps recommended in my previous article entitled “How To Start Right Building A Quality Service Culture” before embarking on much larger scale campaign.

In Closing

Remember that Quality usually starts with just a few people in any organization. However, the higher those people are in the organization, the more likely the process of building a quality leadership culture will succeed.

If you like this article, please subscribe to our blog and get our Free Report on “10 Secrets to Successful Employee Engagement”. If you have comments, we would love to hear. Please post them below.

How To Start Right Building A Quality Service Culture

Quality usually starts with just a few people in any organization. The higher those people are in the organization, the higher the probability of success. Any single group can declare itself a quality group and thrive without the overall organization being on board. It is rare for entire organization to agree on any one agenda when effort and involvement on the part of everyone will be required. 

To ensure that a good beginning is in placed right from the onset, the following is recommended: 

• 1. Provide coaching for upper level managers
• 2. Have upper level managers and the board of directors go through a seminar on service quality
• 3. Do an upside-down review. Have subordinates rate the managers on quality readiness
• 4. Have upper level managers go through an executive retreat to assess this cultural readiness and work through a plan to change the culture. This is done by defining the desired culture and then doing a gap analysis by surveying employees to see how close the current culture is to the desired outcome. Outside facilitators can be most helpful. 

Leadership training comes in many forms. There are four basic types; feedback, personal growth, skills building, and conceptual. Each has its drawbacks and advantages. The latest trend, however, is to use a value-based approach. 

Value-based leadership maintains that if we share certain values, the bond between us will be stronger than if we follow the same commands. It requires leaders to articulate the company vision and then create an environment where employees can figure out the answers. 

The Japanese went through 20 years of changing a very authoritarian management philosophy into one that involves considerable direction from the top and input and decision making at the bottom. 

Total quality service is both top-down and bottom-up management. For it to succeed, leadership has to be responsive. Work on the leadership first if this is not the case. Unresponsive leadership will only make employees and customers resentful as heightened expectations are dashed against the arrogance and resistance. Most organizations have a bit of this in place, but ultimately leadership has to walk the talk.  

If you like this article, please subscribe to our blog and get our Free Report on “10 Secrets to Successful Employee Engagement”. If you have comments, we would love to hear. Please post them below.