Remember back in the 1950’s and 1960’s when Japanese Cars were rubbish? Then you will remember that it was mainly American Quality Management Guru’s who became missionaries to the Japanese Auto Sector and taught them about World-Class Quality Management, Just-In-Time Manufacturing and World-Class Customer Service. Well the Guru’s succeeded – the Japanese learnt and set about creating cars that were well made and relevant to their markets. Within a generation Japanese Cars became leaders in the Auto Industry. Their leadership, management ability and quality improved to such an extent that their market share grew to a level where they became dominant in every market in the world. All because they learnt.

But did Government Motors or Chrysis Cars learn?

Now GM and Chrysler are not exactly small beer – they have large resources and not so long ago GM was the world’s largest company. Isn’t it amazing how some people learn and others do not? The majority of leaders and managers in Toyota and Honda are NOT Japanese! So what made them learn and what makes Team Obama think that they know more about cars than successful car-makers do? Because this is what he has done – Obama has sent a message to Toyota and Honda that he and his Team know more about making a success of car-making than the market leaders do. Arrogance is the Waterloo of Common Sense. Of course Team Obama do not think that they know better – they simply see the pathetic and failed management of GM and Chrysler as vehicles (sorry about the pun) for their own political ends.

I wonder if anyone from Team Obama asked the CEO’s of Toyota and Honda to go away and come up with a plan that included awarding Toyota and Honda an interest free loan of $50billion of American Taxpayers money plus the bits of GM and Chrysler that they liked – provided they returned the money with interest within 10 years?

I bet nobody asked them! I am sure that making great cars profitably was the last thing on Team Obama’s minds when they Nationalised Government Motors and Chrysis Cars.

With all humility – Sidewalk Solutions could do more for the US Auto Industry with the $50billion – than Team Obama ever will. You see we would simply want to use the money to make substantial profits by designing, manufacturing and selling great cars that people want to buy – full stop!

May 26, 2009 @ 5:23 pm

The Laffer curve is the economic model that purports to demonstrate that by decreasing marginal tax rates, tax receipts may actually increase. It is a central concept of supply-side economics, famously denounced by George H.W. Bush as “voodoo economics” during his Republican presidential primary run against Ronald Reagan. Setting aside the debate over what constitutes an “optimal level of taxation” and the Laffer curve’s other political implications, Maryland provides a good example of how “soak-the-rich” tax policies can lead to disastrous fiscal results.

From the Wall Street Journal:

Maryland couldn’t balance its budget last year, so the state tried to close the shortfall by fleecing the wealthy. Politicians in Annapolis created a millionaire tax bracket, raising the top marginal income-tax rate to 6.25%. And because cities such as Baltimore and Bethesda also impose income taxes, the state-local tax rate can go as high as 9.45%. Governor Martin O’Malley, a dedicated class warrior, declared that these richest 0.3% of filers were “willing and able to pay their fair share.” The Baltimore Sun predicted the rich would “grin and bear it.”

One year later, nobody’s grinning. One-third of the millionaires have disappeared from Maryland tax rolls. In 2008 roughly 3,000 million-dollar income tax returns were filed by the end of April. This year there were 2,000, which the state comptroller’s office concedes is a “substantial decline.” On those missing returns, the government collects 6.25% of nothing. Instead of the state coffers gaining the extra $106 million the politicians predicted, millionaires paid $100 million less in taxes than they did last year — even at higher rates.

We are trying to wean Milo off his Gentle Leader ( http://www.buygentleleader.com/ )  as he tended to take you for a walk and pull you all over the place.  The Gentle Leader having done the job and stopped him from pulling, is now hung up in the cupboard as we trust him to walk alongside us with his normal lead. That is until “Hello Milo” was called out – off he shot across the road – me in his trail – tail straight up, head down, nose one millimetre from the ground, front legs pulling hard enough to tow a truck, travelling at 30 mph toward the Sri Lankan Celebrations – or more accurately the young ladies! The Tamil Tigers would have quaked in their shoes as Milo the Beagle arrived amongst the crowd – tail changing direction from straight up to waggle mode, knocking revellers right and left as if it was Hogmanay.  Fortunately one of the ladies had a biscuit to hand, this stopped Milo in his tracks – he immediately assumed the “please take my paw” position and snaffled the biscuit from the young beauty. Milo thankfully caught the smell of another dog and took his leave from the celebrations to see what was going on next door. Back home Milo was the sole of discretion as Jennifer my wife asked “have you been a good boy then?” Milo as usual heading straight for his favourite spot at the side of the pool falling asleep until mealtime.

Milo has not learnt that plants are bad for him – despite being sick every time he snaffles one. He particularly loves old dried leaves – they remind him I think of the toast he has with us in the mornings. He sits patiently whilst we eat our breakfast until Jennifer makes an extra small slice for him – must be warm, not hot, and crusty please.

I have a favourite chair in the dining room which I have been known to relax in and occasionally drop off after dinner. As soon as I sit in this chair Milo leaps up into my lap and joins me in a wee snooze.

Tash and Milo after dinner snooze!

So the three and three quarter legged wonder has not only made a home happy, he has become well-known in our community – please come and visit him – and don’t forget to bring a biscuit!

A few recent personal examples – the Vodafone shop in Sydney, Australia where the assistant kept chatting to who knows who, on her mobile phone, the entire time she served me. The York, UK taxi driver who played his car radio so loud he could not hear where I wanted to go and when asked to turn the radio down a bit became aggressive and abusive.  In Dubai, the Emirates Business Lounge Assistant who refused to accept my recently out of date Business Lounge Card because they did not have an electronic card reader that would have accepted the card (the account was valid). She did offer to let us in the Lounge for $40 each, no thanks. I am sure you all have your own customer service disaster stories.

During the 1980’s and 1990’s customer service became a great differentiator between good and bad companies, but today customer service is too often seen as window dressing. When electronic systems improve your customer experience then fine and dandy – but it is people contact, whether on the phone or face-to-face, that makes the real difference. Computerised systems mask the differential – try taking away the system and many companies would fall flat on their face.

Teaching World-Class Customer Service at school should not only be compulsory, but should be an essential part of a young person’s development – demonstrating both in case studies and personal projects the difference that World-Class Customer Service makes in today’s fast-moving electronic world. Teaching children how to perform World-Class Customer Service would make life not only more pleasant, but outstandingly so.

Many Private and Public service organisations have long ignored the benefits of world-class customer service in preference to an employee-first culture. Organisations have abandoned world-class customer service in favour of software that makes for a better customer service experience, because it’s easier and does not depend on employee performance!

Unless something is done, World-Class Customer Service will go the way of the Dodo bird and become something quaint that a previous generation used to do.  But they will miss that special feeling that world-class customer service brings – the employee who not only delivers great service but also ensures that everything possible is done for the customer. The employee who follows-up of their own volition to ensure that the customer’s experience is the best it can possibly be and is done with a genuine smile – that employee has made a real difference in someone’s life – not just completed the sale!

We should honour people who provide World-Class Customer Service because they are distinctive in a world that is moving towards sameness.  Just think of how great an experience your local National Health Service, Local Council Authority, Vodafone Shop or Airport could be if they only learnt how to provide and execute World-Class Customer Service?

Imagine a Health Service that provided you with a choice of appointment dates to suit you,  with same day test results, and with a personalised medical service designed to meet your needs, quickly and responsively.

Or a Local Authority that made living in your area a delightful experience with low council tax, super services and fewer regulations.

How about a Vodafone Shop Assistant that listened to your needs and helped you design a package that suits you – rather than their local sales targets.

Heaven help us if we could get an Airport designed for passengers – where we could feel comfortable and safe without feeling like we were the terrorists.

If you want to make a difference – try providing World-Class Customer Service – it is not the easiest way, only the best way!  World-Class Customer Service puts customer first and is identified by such customer comments as – “extraordinary, outstanding, unique, unprecedented, remarkable and phenomenal.”

Now does that describe what you experience out there every day? Try and have a good one!

37 years later Southwest Airlines have led the way in low cost air travel, world-class customer service and consistent profits. Read their latest website message from their CEO Gary Kelly http://www.southwest.com/about_swa/?ref=abtsw_fgn does this sound like Willie Walsh or the nasty Michael O’Leary of Ryanair? If BA want to survive they should go and ask Gary Kelly to please move from the USA to the UK to sort out BA. The result would be a British Airways with an O’Leary type cost base but with a smile and passenger focus that only Southwest have finely tuned. O’Leary copied Southwest’s business model, but not their performance for passengers. British Airways think they can buck the trend – so did KODAK!

Maybe we should look at greed amongst the powerful as a symptom of a more serious disease – a disease which is so endemic that only major surgery can be used, otherwise it will spread like wildfire amongst the rest of us. What makes people greedy? Is it part of being powerful? Maybe it is a reaction to being able to command respect because of one’s position rather than on what one does in one’s life? Whatever the cause, the cure for greed surely lies in making it more difficult to be greedy rather than easy as Politician’s have found.

The more unclear or softer rules are, the more likely that they will be bent. Too many people see rules as being there to be broken – this comes from the fact that many of the rules are over-complex and inconsistent. Most organisations are able to lay down clear and simple expenses rules – with the overiding requirement that profit does not come out of expenses.

So let us have clear and simple rules for our Politicians – if clear and simple rules cannot be drawn up in a day, then they are neither clear nor simple – nor are they going to work effectively, as history shows.  Politician’s in particular, are used to spending most of their working lives making complex laws for the rest of us to follow – and they are the last people to make rules that will govern their own expenses. You just need to look at the mess UK Politician’s are in with their current expenses to realise that they are unable to be fair and balanced in this regard – most of their mess comes from complex expenses rules written by – yes, you guessed it – themselves!

Making new rules for expenses are best left to independent / outside accountants – they should be put into the UK Parliament and given not more than one day to come up with a simple new system with regard to expenses that will be transparent, consistent and apply to everyone employed by Parliament. I expect that they will complete this task by lunchtime.

Once this has been done and voted through Parliament, the same firm of accountants can then take a look at Member’s of Parliament salaries and compensations. This may take up to a week and will almost certainly result in a large increase in MP’s compensation (salary reviews usually do).

In order to reduce the overall cost of Parliament to taxpayers – (why not?) -the number of MP’s sitting in the House of Commons and Members in the Lord’s – should be halved. The UK does not need over 1,000 Politician’s deliberating and making complex new laws. Half that number would suffice and be cheaper. I imagine the cost savings will impress and also be impressive.

Fewer Politician’s, with higher salaries, working under simple, transparent expenses rules – in a Parliament that is cost-effective – and cheaper, now that would do wonders for solving the disease of greediness and could introduce Politicians to the new concept (for them) of “value for money”. It could all be done in a little over a week – bet it’s not!

Alex

It matters not a jot whether the failure is due to a couple of dozen executives who got things wrong, or anything else – there must be no reward that year – even for the cashier who may have got it right. The bottom line is that whenever a business loses money, there must be no reward for anyone in the organisation. In the case of the major Banks – taxpayers should come before employees – once the banks are free of taxpayers money and profitable, then bonus’s can be paid as a reward for achieving meaningful goals.

Dave Cameron’s proposal that there should be a cap of 2,000 pounds on bonus’s and only for those in the lower ranks is a straight electoral bribe to the masses – nothing less. In a situation where a business has lost so much of its wealth, there must be nobody who is rewarded – full stop. Indeed failure should attract sacrifice not reward. The business which lost billions needs to reduce its costs and re-build its strategy – whilst this goes on jobs will be lost, salaries will be reduced and bonus’s not paid – to anyone. Otherwise we will create capitalism on a sea of jelly, where the basic principles of profit and loss become irrelevant, and where politicians with vested interests decide what is and isn’t fair.

The greed and stupidity in the boardroom will not be cured by subsidised bonus payments! People within a business are the only ones that can effect a cure and the cure often adds up to sacrifice and some pain. To try to avoid the inevitable is more cruel than the cure.

Everyone will suffer when an enterprise goes from good to bad – it is every employee’s fault when companies fail – or nobody’s – you choose!

Bonus is a reward for helping to create a healthy and profitable business

Bonus to employees in a business that has lost billions is a subsidised bribe.

Germany, the largest economy in the EU, is not planning to open its labor market to Poles as of May 1 as previously anticipated.

Poland will have to wait two more years – until the middle of 2011 – as German Chancellor Angela Merkel fears the economic crisis. In line with the accession treaty, each of the ‘old’ EU countries could keep the ban on employment for new member states for five years since expanding the EU.

World-Class Customer Service is not for any particular sector or industry – it’s for every organisation whether Government, Charity, Public or Privately owned. So don’t let anyone tell you that World-Class Customer Service is not possible in any business or organisation – including Government! So what is it that these and other companies have and most others do not?

It is called World-Class Customer Service – or making sure your customer is delighted, excited, grateful, astonished enough that they will come back for more! I challenge anyone who has been treated courteously, promptly, graciously, sympathetically and made to feel valued – not to remember or enjoy that experience!

Great Customer Service – is more fun, try working for someone who believes in excellence – in going way beyond expectations – now go and work for someone else – know what I mean? A Great Service organisation is more challenging, there is more energy around the place and people are naturally happier and more knowledgeable about their work. Fewer mistakes are made in companies that strive for excellence therefore the cost of non-conformance is much less.

If it is not extraordinary service then it’s not World-Class Customer Service! The sort of Customer Service that I am talking about gives IBM its longevity as being the gentle and intelligent giant of the Technology Sector, or Ritz-Carlton Hotels their ability to remain in a guest’s memory 10 years after a one-night stopover! It gave Nordstrom its passion for ensuring that you are 100% delighted with your purchase and if not they will give you your money back and no questions asked, or Granite Rock, a Quarry company who say “Yes we will” before you even ask the question!

As I travel around Airports, Government Departments, Supermarkets, Shops and any organisation that serves us, I am constantly disappointed in the deterioration and level of Customer Service. Whilst some companies strive to exceed customers’ expectations – most do not. My memories are dimming of visits to Woolworth’s where the experience was always worse than you expected! If Woolworth’s Management had enrolled their key staff in the Ritz-Carlton Leadership Training Centre they would not have gone bust. You see, customers become loyal to organisations that provide them with a great customer service experience and reward them with more purchases and return visits.

Note the difference between

Nostalgia

“Woolworth’s was where I bought my first LP“

and

Excellence

When I stayed at the Ritz Carlton the porter arranged to forward my extra luggage to my next hotel with one phone call and no fuss and the room service was so good I didn’t want to leave the room

- I can’t wait to return!

In this article I am interested in the excellence of customer service; businesses like Woolworth’s simply didn’t get it and look what happened to them!

The reason that great companies spend so much of their efforts on achieving World-Class Customer Service is simple – it improves their profits and their employee’s experience. It also enhances their reputation – and you can almost taste the “feel good factor” of employees who work there. Striving for World-Class Customer Service is so worthwhile I guarantee you that you will spend all your time achieving what others say is impossible.

Hard to choose my favourite Customer Service story, let’s try this one from Sewell Village Cadillac in Dallas, Texas:

The local Hospital Matron had booked her car in for a service – she declined the use of a replacement car which all customers are offered at Sewell’s – she asked that her car be brought to her at the hospital when it was ready and in any case no later than 11am as she had an important meeting to go to. Unfortunately the agent had typed a noon delivery on the Customer Service System at Sewell’s – when the Matron called them at 11.10am to ask where her car was – the agent immediately realised his mistake. The General Manager of Sewell’s hearing what happened and knowing that the car was in fact ready, drove the car himself over to the Hospital, followed by the agent in another car. Arriving at the Hospital, they apologised to the Matron and informed her that there would be no charge for the service performed that day. They escorted her to her car and saw her drive off to her appointment. As she drove away, the Matron noticed that a large bunch of flowers and a box of her favourite chocolates had been placed on the passenger seat together with a note and two tickets to the Opera.

The meeting the Matron was going to was actually an interview on the largest Dallas Radio station to talk about the new Hospital Wing that had just opened. At the beginning of the interview and live on air, the Matron told the listeners the story about her car experience that morning. Sewell’s were inundated with phone calls and enquiries for new cars and car maintenance requests for months after this event. This story took place some 15 years ago – Sewell’s continue to push the boundaries of World-Class Customer Service – the people who work there will do anything they can to keep their customers happy – every day.

IBM told me once that (as a key supplier) they felt that I cared more about their products than they did. Do you have any idea how much faith customers will put in you if you care and perform great deeds on their behalf. World-Class Customer Service is so important that we should teach it to every student in school. Not understanding the significance that World-Class Customer Service can have to our economic well-being is unacceptable. Just think how much better our life experiences would be if a new generation of employees understood the true meaning and value of World-Class Customer Service – and executed them every day. The new generation would be better-trained, happier at work, more competitive and productive than any past generation. Most of all they would be better equipped personally to be successful in the future.

You see, World-Class Customer Service relies on the skills and personality of the individual; it prospers when people make decisions for themselves and for the customer – without referring upwards. It is at its best when the lowest grade employee serves you with great service, the sort of service that goes beyond expectations – one that customers remember and can’t wait to tell others about.

If you are in the minority and work in a company or organisation that has wonderful customer service, then send me details or a case study and I will carry your story on this Blog. If you are one of the millions who are fed up with the poor Customer Service you encounter every day, join me in fighting for World-Class Customer Service to become part of our daily experience instead of something that we seldom witness. Maybe we could organise a Great Customer Service Day – imagine all the smiles and astonished customers!

Let us fight for Great Customer Service – in our Health Services, Police Service, Local Authority, Petrol Stations, Corner Shops, Airports, Train Stations, Supermarkets and Hospitals.

Stand up for World-Class Customer Service:

Become a beacon of hope and confidence in what you and your organisation do

Train employees in all sectors and levels to take responsibility for Great Customer Service

Everyone has to have authority to do what it takes to provide a Great Service

Let employees follow their instincts – I bet their right!

Do something new for your customer – astonish and delight them – every day

Trust your employees – they do care if you train them and get out of their way

Finally, Customer Service is not for the faint-hearted, as it requires you to give up control and train and encourage front line people to use their own judgement every day. Striving to exceed your customer’s requirements is good business and makes you and the customer feel good and we could all do with a bit of that!

World-Class Customer Service is good for business and profitability, it improves the individual, it encourages customers to return again and again, it helps increase profit, lowers costs, improves products and services – it makes things better and better still.

Send me your case studies and I will publish them here.

Alex

References;

South West Airlines

http://www.southwest.com/about_swa/?ref=abtsw_fgn

The Ritz-Carlton Hotel Company

http://corporate.ritzcarlton.com/en/About/Default.htm

Charles Schwab

http://www.schwab.com/public/schwab/home/why?cmsid=P-985960&lvl1=home&lvl2=why

Nordstrom

http://about.nordstrom.com/aboutus/companyhist/companyhist.asp?origin=aboutus

Longo Toyota

http://www.longotoyota.com/MiscPage_3

Granite Rock

http://www.graniterock.com/

Sewell Village Cadillac in Dallas

http://www.sewellvillagecadillac.com/AboutNewsEventsDetail.aspx?NewsID=7