Category Archives: Culture

Timpson: Business Success Through Humanistic Leadership

Allow me to introduce you to a little know business gem: Timpson. It is a family business operating 1000+ stores, annual turnover in the region of £200m, and annual profits of £10m+. Today, this organisation (and its leadership) is on my mind again. Why? Because of what I saw and read on LinkedIn.

This is the photo that captured my attention:

Timpson Free Outfit Cleaning

The last time I looked there were 240+ likes. Here are some of the comments that caught my attention:

  1. “Leadership at its best”;
  2. “Hats off to CEO James Timpson”;
  3. “Very thoughtful and caring”;
  4. “Pay it forward”;
  5. “Brilliant. More selfless acts needed”;
  6. “If another company did this it would probably seem like a publicity stunt, but Timson’s record speaks for itself..”; and
  7. “How many Advocates and how much good feeling does that create for Timpsons who are already an exceptionally socially responsible company…Great win win!”

Why did these comments catch my attention? Because these comments provider a pointer towards the following:

  1. The shape-look-feel-character of humanistic leadership: authentic as opposed to faking it in order to manipulate others (publicity stunt); thoughtful and caring as opposed to thoughtlessness and indifference to our shared humanity – where humanity is hidden under the labels of customer, employee, supplier; and selflessness leading to paying it forward as recognition of one’s good fortune and shared humanity as opposed to unlimited greed dressed up in fine sounding words like maximising revenues and profits.
  2. The impact human-centred leaders make on us: we tend to think of this kind of leadership as “leadership at its best”; and those who exercise this kind of leadership call forth respect – when we are authentic we take our hats off only to those whom we genuinely admire, esteem, respect in terms of their virtues and/or skills.

  3. The benefits that tend to show up as result of exercising humanistic leadership: the good feelingthat this kind of leadership calls forth in just about everyone except sociopaths and those professionally trained as economists and MBAs; and the advocacy-loyalty that is automatically brought into play as a result of evoking this good feeling.

I am clear that we (those of us living in the UK and USA) live in transactional, individualistic, non-humanistic, competitive cultures. So those of us, who are ‘smart’, are likely to be tempted to fake humanistic leadership to get the benefits (respect, status, increased profits, wealth) without paying the necessary ‘price’. So here’s the paradox. The exercise of humanistic leadership does generate advocacy, loyalty, revenues, and higher profits. However, this is not the case when humanistic leadership is exercised for the sake of harvesting these benefits. Why? Because, one can only fake it so long before true intentions leak out and are detected by those who are being manipulated.

Is Timpson faking it? Is this offer of free outfit cleaning for the unemployed merely a publicity stunt? This is what Justin Parkinson of the BBC says on this blogpost:

The problem is that getting suits dry cleaned usually costs in the vicinity of £10, which can be prohibitive for unemployed people looking to return to work.

The offer, in place since 1 January, has been taken up by hundreds of people, Timpson chief executive James Timpson says. “When people are going for interview it’s important to look and feel smart and getting their suit dry cleaned is part of that,” he adds. “It makes people more confident and gives them that 2% extra chance of getting a job. We just thought it was a really good idea.”

In my experience, one of the core challenges of taking a humanistic approach to doing business (including the exercise of human-centred leadership) is that we have a dim view of human nature. Our actions show that we are convinced that if we appear ‘soft’ then we will be taken. So how has this offer turned out for Timpson? Here is more from that BBC blog:

“We just trust customers,” says Timpson. “We had one lady who came in with a cocktail dress and we told her to hold on. But that’s the only instance of a customer taking advantage.”

What is going on here? How to make sense of this? It occurs to me that somewhere deep down in us, our human decency is intact. Put differently, for most of us, there is something deep in our being that makes us think twice and usually prevents us from taking advantage of those who show concern for us, our fellow human beings, and our shared humanity. Where we transgress and do take advantage of the kindness of others, guilt comes into play. That is the price we pay for not honouring the best of our humanity.

Now you may be wondering what this has to do with Customer. I say take a look at what has been done in the name of customer service. Take a look at CRM. Take a look at customer loyalty programmes. Take a look at Customer Experience. Take a look at all that has happened and all the money-effort that has been expended in the name of the Customer. Now ask yourself how it is that despite all of this customer loyalty and employee engagement are stagnant – at best. There is your answer: humanistic leadership (and management practices) are the access to calling forth the good feeling that in turn leads to engagement-loyalty-advocacy: from your people, from your suppliers/partners, and from your customers.

If you are interested in learning more about Timpson then check out this piece that I wrote some time ago as it continues to be relevant and instructive: Timpson: Shifting-Transforming Culture Through Language and Practices.

Note: At the invitation of Bob Thompson, I write the Human-Centred Leadership column on CustomerThink.com. This conversation was published there last month.

You may have noticed I have not been conversing much recently here on this Blog. I have been dealing with back pain for the last six weeks. This has limited by ability to do that which it takes to create-share conversations. I hope to back in action soon.  If you missed me then I thank you for your patience. If you didn’t, excellent: now you know that you are wasting your time-life listening to me, please go and do something that lights you up!

Unlocking Organisational Magic Through Humanistic Leadership

Let’s imagine that you want to play the sales effectiveness game. What does it take to play this game well – effectively? At a minimum it takes folks in marketing and the folks in sales to play well together – as one team. Take a broader look, play with the time horizon, and you are likely to find that it takes folks in product development, engineering, strategy/finance, marketing, and sales to work well together.

What does it take for an organisation to excel at the customer-centricity / customer experience / customer loyalty game? One way of answering this question is to take a look at what folks nominate as the biggest obstacles in playing this game. Do the following sound familiar: lack of executive sponsorship/leadership, competition (rewards and resources) between folks in different silos, and the lack of employee engagement – ‘us versus them’ even within the folks in each silo, especially between folks in management positions and those who work at the coal face.

When I look at what is so, I do not find a process challenge here. Nor do I find a technology challenge. And I certainly do not see a strategy challenge. I see a people challenge. In particular I see the challenge of creating a context which calls forth organisational magic.

What is the source of organisational magic? Allow me to put that question different: who/what is the source of greatness in organisations – greatness as in generating breakthrough performance-results? Go beyond the dominant ideology of Anglo-Saxon individualism, beyond the Steve Jobs type myth, and you are likely to find that the source of organisational magic is teamwork: genuine teamwork. What calls forth teamwork? Is it technology, for example the latest collaboration technologies? Is it specific teamwork processes, methods, techniques? Or does the access to genuine teamwork lie in the human realm – how we relate to one another? 

It occurs to me that envisaging and articulating a future/possibility that leaves the folks in your organisation inspired-uplifted-elevated is necessary but not sufficient. The leader who is effective must also cultivate a context that calls the folks in the organisation to work well with one another in the pursuit-fulfillment of that future/possibility. Put differently, the effective human-centred leader must call forth, forge, genuine teamwork. 

How do you, as a leader, call forth organisational magic: genuine teamwork over a prolonged period of time and across many different types of people (personalities) in different roles, functions, and business units?

I invite you to listen to the following words of wisdom (bolding mine) from a master of insight into the ‘human condition’ (bolding mine):

I could always tell when an organization was in good shape. I could tell because the manager of the organization would always be talking about how great the people in the organization were. If the manager was talking about anything other than how great people in the organization were, I knew that the organization was in bad shape. The way to manage an organization successfully is to manage it in such a way that you can be proud of the people with whom you are working. You have to find a way to interact with the people with whom you are working in a way that makes you proud of them.”

– Werner Erhard

As one who is in a leadership position are you proud of the people who you find yourself working with? Be honest. Now ask yourself how likely it is that you will call forth the best from folks who, at least at a subconscious level, get that you are not proud of them – that you see them broken-faulty-lacking in some manner.

I say that if you are playing the customer-centricity / customer experience / customer loyalty game then you are, whether you realise it or not, looking to find ways to interact with your customers which leaves them feeling good about doing business with your organisation. 

Given that your organisation is the folks that collectively constitute your organisation the pressing challenge, for you as the leader, is to find ways to interact with these folks in your organisation such that you are left feeling proud of them. And they are left feeling appreciated and proud to be working in an organisation led by you. 

What way of interacting with folks is likely to leave you feeling proud of them, and them proud of you? A great place to start is with the practice of granting an A.

I invite you to consider that you, as the leader, are responsible for each and every person who you find yourself not proud of. How so? Either you failed to put in place the right recruitment practices and people. And/or you have created a context where people you are proud to hire into your organisation end up being turned into people you are not proud of. I am not saying this is the truth. What I am saying is that this is a great (as an powerful, effective) place to stand and operate from. Why? Those who play victim do not make great leaders; great leaders take responsibility for that which is so, and not so. Enough for today, thank for listening.

Note: this conversation was originally published here on the CustomerThink site.

Customer Experience: Summing Up 2014

I Find Myself Hurt, In Pain, With Sprained Ankle At Paddington Station

In an earlier conversation I shared the following:

I arrived at Paddington Station and made my way hurriedly toward the underground. Suddenly, I found my feet sliding, no control, left knee smacks into the hard tile floor, right leg twists awkwardly, the right ankle is in some pain. A helpful gentlemen helps me up. I recover and get that the floor has become an ice rink in some places (food for a future post). I walk slowly, in pain, towards the underground….

I hurt myself. Why? Because, the ‘vehicle’ for enabling-facilitating walking at Paddington Station was not fit for purpose. What do I mean by that? That one of the primary functions of a floor is to make it easy for folks to move around, at normal walking speeds, safely.  Before, I get further into this, I want you to get that Paddington Station is one of the main railway stations coming into and out of London. There are always plenty of people standing around and walking about. It is especially heavily trafficked at peak time (early mornings, after work). And there are all kinds of people using this station: older couples, middle aged folks, youth, male, female, business folks, leisure travellers etc.

Customer Experience: What Is The Default Setting?

Why is that the floor at Paddington Station did not facilitate one of its primary roles: enable passengers (customers) to walk about easily, freely, quickly (if need be) around the railway station?  Because it was raining. Some of the rain ended up on the smooth, good looking, tiled floor. The rain on the smooth floor, reduced the already reduced friction/traction – to the point where it is really easy to be walking one second, sliding the next, and then finding oneself in pain, hurt, on the floor, dazed, wondering what happened.

Let’s stop. I invite you to ask yourself, how is it that intelligent business folks did not put the various elements together to foresee (smooth floor, rain, floor as ice rink) and thus prevent the annoyance and/or harm to the passengers? My hypothesis, is that insufficient attention-consideration was given to the customer. Did anyone even put the ease/safety of walking as a key decision criteria when the floor was being selected?  It is easy to be smart with the benefit of hindsight. So let’s accept that with the best of intentions we are fallible creatures and make mistakes.

Before we move ahead, I do wish to make one general point: the default is that of poor customer experience  and this is so because the world has been setup without adequate consideration of experience based customer needs. In my view, this is particularly so in nations-cultures with a strong Protestant-Calvinist influence. Incidentally, the lack of consideration of the end users experience based needs is the reason that most CRM systems fail to be adequately adopted and thus fail to generate the promised benefits.

Summing Up The State of Customer Experience As At 2014

Let’s get back to Paddington station and sum up the challenge:

What is so: the floor becomes a potential safety hazard for customers (passengers) when it rains;

Desired outcome: make it easy and safe for all the usual customers to walk around the station, given many obstacles (usually fellow travellers), in all the usual weather conditions – rain is usual in the UK.

Imagine that you are the person responsible for Paddington Railway station. You are the person confronted with coming up a course of action to deal with what is so and bring about the desired outcome. What is the course of action that you’d take? What would the end solution look like?  Would you fix the roof so that no rain got through to the floor? Would you fix the floor to ensure that the floor is rougher thus providing more traction? Would you put some kind of drainage solution to drain water from the floor?  What would you do if you were truly customer-centric and committed to putting the right customer experience (of walking) in place?

Here’s the answer that the folks that manage Paddington Station have put in place:

caution cone paddington stationLet’s stop and consider this. Has the challenge been addressed?  Has management got rid of the potential hazard to customer safety?  Has management improved the customer experience?  No!  What has management done? Management have provided some useful information to the customer: “caution wet floor”. What else has management done?  They have placed the burden of responsibility on to the customer – now if the customer slips and hurts himself he can blame himself for being careless. And management has mitigated its liability under the health and safety legislation. Why have I shared this with you? Because it occurs to me that this concrete example illustrates the course of action that many have taken regarding Customer Experience challenges-opportunities.

Looking at 2014, based on my personal experience, the experience of fellow consultants, and reading the relevant articles/posts, I am of the view that I can sum up the state of Customer Experience in 2014 as follows:

  1. There are only a handful of organisations that compete on the basis of the Customer Experience and excel at it. These organisations continue to do well. For the folks in these organisations Customer Experience is a way of life – like speaking English is a way of life for me.
  2. The vast majority of Tops and Middles toying with Customer Experience lack the courage to take bold action.  In the absence of courage, a ‘burning platform’ is necessary to trigger bold action. For most organisations and management teams such a burning platform is not present.  Look beyond the fear mongering and ask yourself how many organisations are in the shape IBM was when Lou Gerstner took over and kind of totally reshaped IBM?

  3. Where work has been done on Customer Experience, Tops and Middles have taken the easy way out, tinkering on the edges. The stuff that really matters has been kept intact. The business model remains intact. Management practices including those that yield ‘bad profits’ – profits made at the expense of the customers – remain intact.

  4. The Tops and Middles have, once again, resorted to the same old tools and techniques: business process changes and implementation of information technologies whether labelled as CRM, CX, marketing automation, or big data…

  5. Many claim to be Customer Experience experts and/or gurus, almost none of them are. Before you accept this claim I ask you to consider how you would determine if a carpenter is a great carpenter. Would you do so by listening to him speaking? Would you do so by reading his book where he share his tales and tales of others – stories which make you feel good?  Or would you go and see for yourself that which the carpenter has created with his own hands? This has to follow logically and necessarily from point 1 above – there is only a handful of organisations that compete on the basis of the Customer Experience and excel at it.

  6. One reason that so many can get away with claiming to be Customer Experience experts and/or gurus is that the term Customer Experience has been turned into an empty and usually misleading idea. For example Customer Experience is became another fashionable, higher status, label for Customer Service; many folks of significance in Customer Services (including call-centres) have customer experience in their titles. On the other hand some marketing folks – especially digital marketing folks – are using and abusing this fashionable label. Then there are folks who oversee the execution and compilation of customer surveys – they have also chosen to sit under and claim the Customer Experience label.

 

 

Forget Working On The Customer Experience, Focus On Competition

I say that the way to make a significant impact on the quality of the customer experience (as experienced by the customer) is for the organisation not to focus on improving the Customer Experience.  That is a bold assertion and shows up as nonsense to many. So what is it that I am getting at?

It is my experience that after accessing the voice of the customer and doing the journey mapping a range of initiatives are on the table. So the folks around the table getting busy figuring out which initiatives to take forward. Which ones do they take forward? The ones that don’t rock the boat. The ones that are the least risky. The ones that are usually called low hanging fruit: the easy ones that involves a tinkering at the edges,  and in the bigger scheme of things make little difference.

To Improve The Customer Experience Ramp Up The Quality Of Competition

SouthWestTrainsPacked

Take a look at this photo. Notice, the people standing up – how many there are, and how closely packed they are against one another. I invite you to step into this picture. Imagine yourself standing up in this train. And finding yourself packed in like sardines in a tin.

I found myself on this train – standing up. This train was so packed that it took considerable skill to just get my smartphone out of my trouser pocket – to take this photo.  How long was I standing up in this train? For one hour and ten minutes.

So I ask you how is it that this kind of occurrence is actually a regular occurrence on the trains going into and coming out of  London at peak travel times? It is so because there is no competition. On each line there is one company that has won the right to run the train services.  A monopoly is in place and the folks who need to use the train have no choice but to put up with whatever they have to put up with.

Now consider that the Tops of just about every business strive to minimise the competition. Why?  Because where there is no genuine competition, Tops can ignore customers, and run the organisation in a manner that extracts surplus profits from customers.

Looking at the situation from the Customer’s point of view I am clear that the most effective way of causing improvements in Customer Experience is to effect genuine competition into every industry, every market place.  Genuine competition for customers will force companies to do that which they are not willing to do today: focus on creating superior value for customers – that includes the Customer Experience.

I don’t know about your country, I do know about the UK.  I assert with confidence that there is no genuine-significant competition in many industries: retail banking, grocery retailing (Aldi, Lidl are starting to make a dent), energy (gas, electricity) suppliers, telecom’s providers….

Consider that if business genuinely had the interests of customers at heart then the Tops of every business would welcome increased competition in their market place. Why? It would provide the impetus to do better: to focus on creating superior value for customers – including providing a better Customer Experience.

Is injecting genuine competition into a market place enough? Is it enough to ‘force’ the incumbents to pay attention to customers and do right by customers: focus on providing superior value for customers?

Effective Regulation Is Necessary To Make Competition Work

For two years I was leading a data mining and predictive analytics practice which operated across Europe. So I got to know something about how different countries went about implementing-enforcing the European Data Protection directive.  Some countries were effective (Germany, France, Italy, Spain) and others (UK) ineffective. Why? The Germans, French, Italians, and Spaniard adequately funded their national data protection agencies and allowed them to levy unlimited fines (usually running into millions of Euros). I believe one of these countries set up the funding arrangements so that the data protection agency had to fund itself through the fines it levied on those companies found bending or simply not following the legislation. Whereas the UK government provided the minimum funding possible, and limited the fine that the national data protection agency could apply to £50,000.

Let’s get back to the issue of competition. Is it necessary for national governments to put in place effective regulations and enforcers of these regulations?  No? Are you of the view that multinationals so love their customers, and are so committed to the Customer Experience, that regulation is not necessary? If so I invite you consider this: business, especially, big business is not customer friendly.  Allow me give life to this assertion.

Yesterday I read this Guardian article: France fines 13 consumer goods firms €951m for price fixing.  Which companies are involved? Companies include:

  • Gillette
  • Proctor & Gamble
  • Reckitt Benckiser  – €121m
  • Unilever – 2nd largest fine, €172.5m
  • Colgate-Palmolive
  • L’Oreal – largest fine, €189.5m
  • Johnson & Johnson
  • Henkel (maker of Persil) –  €109m
  • Biersdorf (Nivea) – €72m
  • SC Johnson

Which products were involved? As far as I can figure out, just about everything. Here’s what the Guardian says (bolding mine):

The price-fixing affected a large number of popular brands, such as Vanish stain remover, Palmolive washing-up liquid, Sun and Calgonit dishwasher tablets, Sanex and Petit Marseillais shower gel, shampoos including Head & Shoulders, Fructis and Elsève, and Colgate and Signal toothpaste. Mouthwashes, deodorants, shaving creams and razors, female hygiene products, body lotion, facial and sun creams and insect sprays were also affected.

So what went on?  What did the folks at these companies do to merit such a large fine? This is what the Guardian says (bolding mine):

The regulator said the 13 companies ….. had colluded on price increases between 2003 and 2006. “These two sanctions are among the most significant imposed to date by the competition authority,” it said. The regulator added that the price-fixing had kept prices “artificially high” affecting consumersand “caused harm to the economy”.

…. commercial directors and other sales officials from the companies involved met “regularly and in secret” to co-ordinate price hikes at restaurants or via correspondence to private homes, as well as through telephone calls. The groups in which they met were called “Team” or “Friends”. 

Consider that if business genuinely had the interest of customers at heart – were committed to creating superior value for customers – then business Tops would not only welcome regulation, they’d want it enforced rigorously and big fines handed out to those who cheat customers.  Name me a Top that advocates this position – can you think of one?  I cannot.

Summing Up

I say greed, selfishness and even corruption permeate our way of life. It permeates politics, national government, and local government. It permeates the police. It permeates business. It permeates the broader society – us.  Given this context, I say, all talk of customer - customer focus, customer service, customer relationships, customer engagement, customer experience, customer obsession – is totally and utter bullshit.

Do you study history?  I have. This is what I have learnt: every right that you/I enjoy today was earned and paid for through blood of brave souls many years ago.  So if you and I are going to be treated right by folks in big business then it behoves us to fight for genuine competition in the market place, stronger customer protection legislation, and effective enforcement bodies.  What you and I cannot count on is business itself: yes, the words have changed, and business as usual (screwing customers) continues unabated. I say that the true customer strategy of most business is something like this: blind customers with bullshit, and empty their pockets whilst they are not looking.

Invaluable Customer-Centricity Lessons From Tesco

Tesco: The Darling of Customer Marketing Guru’s Issues Its Fifth Profit Warning

Tesco continues to struggle. According to this piece from the Guardian newspaper, Tesco has issued its fifth profit warning, share price has plunged (down 16%): Tesco is on the floor.  Why does this matter? Why is it worth me writing about.  Let’s go back a little.

In the early 2000s Tesco was much lauded my many: the customer-centricity gurus, the 1:1 marketing gurus, the data mining and predictive analytics players, and customer loyalty program vendors.  Tesco was the exemplar of harnessing customer data through a loyalty programme (Tesco clubcard), using data mining and predictive analytics to generate insights and then doing database driven marketing based on these insights.  In the process Tesco went from being just one player amongst the UK grocery retailers to the the dominant retailer. At one point it looked like there would be no stopping Tesco.

Today Tesco is on the floor.  Why? Because Tesco’s management ended up doing what management teams do: exploiting customers to extract surplus profits for the Tops and Shareholders. I think some wise person said something like “power corrupts: absolute power corrupts absolutely.”

What Can We Learn About The Challenge Of Building A Customer-Centric Organisation?

So what is it that you and I can learn from Tesco if we are grappling with the challenge of shifting a business towards a customer-centric orientation: one not based on using data/insight to exploit customers; one based on using data/insights to generate superior value (product, proposition, customer experience) for the customer?  Here are the paragraphs from this Guardian piece that catch my attention (bolding is my work):

Lewis [CEO], who marks his 100th day in the job on Tuesday, said he was building “a new Tesco” that would eventually reward shareholders. “We need to get back to core principles. We need to improve the service and availability and that is what we are doing.”

Here is what strikes me, how I make sense of this statement based on my prior lived experience:

1. Moving an organisation from a business as usual (product-centred, extractive, short-term focussed) to a customer-centric organisation is akin to building a new organisation;

2. Building a new organisation is not simple, not easy, not quick. It requires the persistent application of substantial energy across a large number of people for a long period of time – years. Only a CEO who has the power and genuinely cares about the wellbeing of the organisation will do what it takes, and keep doing it over the long term of many years.

3. Part of the challenge in building a new organisation is sacrifice. This sacrifice especially involves shareholders. Why? Because usually the shareholders have gotten fat through ‘bad profits’ delivered by their agents (Tops) putting in place strategies-structures-people-practices that collectively take advantage of customers, suppliers, and the employees – extracting surplus rents (to use the term used by economists);

4. Building a customer-centric organisation is matter of getting back to core principles. Notice, it is not discovering some secret recipe nor the latest shiny miracle technology. It is about honouring already discovered, well known, rarely enacted, core principles. How does one honour a principal? By living it – being an exemplar of that principle in action.

What Specific Actions Does It Take To Be A Customer-Centric Retailer?

Let’s continue this conversation by looking at another paragraph that speaks to me. Here it is:

In a bid to improve customer service, the retailer has taken on 6,000 more staff since mid-October, and despatched 6,000 existing head office staff to spend one day a fortnight on the shop floor to get a taste for the sharp end of the grocery business. Lewis has decided not to lay off people after Christmas, a traditionally slack time for retailers, as part of this customer service drive. “Certain activities help you manage profits, but can have a detrimental impact on how you serve customers,” he said. “What we are trying to do is deliver better for customers … I believe that is the foundation from which we can build a new Tesco, which is financially attractive to shareholders.”

Here is how I choose to make sense of this paragraph:

  1. A customer-centric organisation is one which “delivers better for customers”. Delivers what better? Delivers better products. Delivers better service. Delivers better value propositions. I sum this up by saying it delivers a better Customer Experience.
  2. Customer service is a key thread of Customer Experience.  Organisation which seek to show up as customer-centric have to get customer service right. This is especially so for service heavy businesses where the employee to customer encounter is important, even critical.

  3. Getting customer service right means investing in the people who actually are the customer service of the organisation. Please notice the word “are“.  Your front line people are your customer service; they do not merely deliver the customer service that someone else (perhaps in head office) has already produced. This critical aspect of reality is much ignored: your front line people simultaneously invent-create-deliver customer service every time they encounter the customer – they are your customer service!

  4. Investing in people is long term play. Think Warren Buffet: you select the right people and then you hold on to them over and for the long term.  That means not laying people off during traditionally slack periods. Why? Because two way loyalty (sticking by one another) is essential to creating the context for greatness to show up from your people.  When you, the CEO, take the pain for your people you are putting a deposit in the bank account of goodwill. And this allows you to draw on the goodwill of your employees when you need it. Think Market Basket.

  5. The core challenge of building and then keeping in existence (over the longer term) a customer-centric organisation is this one: “Certain activities help you manage profits, but can have a detrimental impact on how you serve customers”.  It occurs to me that this is THE most critical insight.  There is a broad range of ingrained, celebrated, management practices that deliver the numbers over the short-term whilst at the same time chipping away at the  quality of the Customer Experience.  Over the shorter-term there is no visible impact. Then the hit occurs and when it does it is big. I refer to this as the ‘straw that broke the camel’s back’.

  6. The people who collectively constitute the biggest obstacle to making the shift to a customer-centric organisation and keeping this customer-centric orientation intact (and effective) are the people who work in head office: those who make policies, set targets, dictate management practices…. I am talking about the Tops and Middles: those who work with concepts and not reality.  John Timpson of Timpson recognised this and turned the role of the head office from a dictatorship to a helpline, and in the process reduced the number of people in head office, and moved them to the branches where the real work of interacting with and serving customers occurs.

Final Thoughts: Leadership and Governance

If find it interesting that the management practices that have brought Tesco to its knees ended up being unconcealed when an outsider (no relationship to the Tops running the organisation) took over the role of CEO; and

It is the competitive world in which Tesco competes which has forced Tesco’s leadership to deal with these management practices.  It is only when that which had been hidden (bullying of suppliers by head office folks, bullying of store managers by head office folks, manipulating profits through shady accounting practices) could no longer be hidden that both people and management practices are being addressed.

It occurs to me that Tesco is in crisis as there has been a fundamental breakdown in leadership and governance. The Board of Directors failed to do that with which it is concerned. Ensuring that the right person/s are running the organisation. And overseeing the actions (and management practices) of these people. Interesting then that the Chairman of Tesco has had to walk the plank.

I thank you for listening to my speaking. And I invite you to share your thoughts and experience with me. Looking forward to reading your comments.

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