I sit writing, bleary eyed, having just taken off from Milan very early this morning after an excellent night on the tiles at Stream’s annual user conference. The conference circuit has been taking its toll on my blogging of late….. In the last 30 days, its been ECMW, a telco CRM event in Lisbon, our own Chief Customer Officer forum, then Dusseldorf and Paris with LimeBridge external events, LimeBridge’s 10th global gathering. This week it’s been Milan and the British Bankers Association. Finally next week I chair Advanced Customer Management in London and the “season” finishes. I probably need to buy an acre of Brazilian rainforest to offset the flights and the midnight oil that has been burned.
There’s at least 10 blogs to back date from the interesting things I’ve heard people talking about, Prahalad, Eisner. Updates on how LimeBridge is jumping to its next iteration etc – I’ll catch up at the weekend….may be.
What just caught my eye was an article in the FT titled “In the pursuit of happiness”. The story goes that the long held premise that happy staff make happy customers is not backed up by the evidence. Crumbs, I just noticed I know the journalist – will have to shoot him – Alan I know where you live !
On the conference circuit I’ve been talking a lot about our passion of “how do we stop doing dumb things to our customers and people” and trying hard to get people to feel the feelings that customer facing staff feel when they deliver dumb things in what we call the “stupid factory” of poor processes. How it feels when they are not supported by management, and worse when they are controlled by management practices and measurements. And how they perform when they are supported rather than managed (see the blogs on red nose day, and on the 4 questions that Happy use). I’ve been working hard to recognise that change in attitudes starts with them, not someone else. How they respect people by saying hello in the morning, how they listen to their frontline staff who know what customers are saying. How they are as managers and designers of the operation around them.
There’s also a fundamental that people won’t get off their backsides for money, to make shareholders another million. But they will for a real purpose, for a passion that matters. When we did the CCO forum we calculated that about 30 million customers and 90,000 staff would be affected by how the influential people in the room drove their businesses – that matters. Not how much more money their businesses would make as a result. I realised I had to shout this from the roof tops when I heard a colleague of mine say he thought our passion didn’t make our sales proposition clear. Bollocks to propositions, its not about business – its about how frustrated and fed up we’re making those 90,000 people and 30 million customers. And how quickly can we stop it happening.
So as you see the FT article got me going! It refers to the seminal HBR article “The Service Profit Chain” (you can read it in our library at
http://www.budd.uk.com/ ) and how the authors now admit its not that direct a linkage from satisfied staff to satisfied customers to higher profits. That’s its not that linear. Of course it isn’t. But that doesn’t mean that happy staff don’t deliver better results.
The article falls into the trap of measuring results only in shareholder terms ie profit. 21st century business is also about measuring social returns on customer time wasted, staff lives wasted and natural resources wasted from paper wasted on junk mail to midnight oil burned trying to get your laptop to work with all its new software and PDAs and printers. This matters far more to people. It gives purpose to what businesses are for.
In fairness the article does touch on the need for both dimensions, the process and the motivation, to be right in order to deliver a good result for customers. And it emphasises a key thing – that workers should redesign work, not managers or consultants. They already know what’s broken – you just have to free them to change what happens. It’s managers “managing by getting in the way” LINK that’s the problem with the Service Profit Chain logic, not the service profit chain itself. And the article does emphasise the Gallup 12 questions ( see previous post) bringing out that its your direct manager who affects most how you feel and therefore how well you perform
Alan must have been reading our blogs when he put his FT article together, given all the things he mentioned!!
Well that’s another half hour lost to ranting, but I feel better for it! A bientot
Labels: chief customer officer, dumb things, managing, people
