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The 2011 American Express Global Customer Service Barometer reports that 60 percent of U.S. consumer respondents believe that businesses have not increased their focus on providing good customer service.  Even more surprising, 26 percent think companies are actually paying less attention to service.

Wow—now is your chance to be the one who CAREs about service!  Here are three places to start being the one who leads the charge so everyone in the organization has a customer service mindset:

1. Declare “legendary customer service” as an imperative. Put it out there. Say, “We want to be #1 in our space for delivering Legendary Customer Service.” Show any metrics you currently have and set new targets /metrics for success by showing what a good job would look like.  Explain the business imperative for service and have a kick-off meeting where senior leaders model the service they want others to emulate—greeting people at the door, shaking hands, valuing them for all they do, etc.  In this meeting, actively involve people in activities, get them fired up about the initiative, and have them challenge each other to rally to serve customers and contribute to the vitality of the organization.
2. Establish a service champion team who will go out and walk in the customer’s shoes.  Do some action learning.   Map the flow of customers and research positives and negatives by asking customers, employees, suppliers, and anyone who is in the service chain for their thoughts on what is working and what could be improved. Put them on the agenda at all company meetings to share their findings and use time to brainstorm options, set goals, create first steps, and assign roles.
3. Immediately showcase individual employee customer success stories and create images for everyone of the optimal service you are looking for. Remember that the brain stores in images and not words, so to create momentum, be sure to highlight ideal service successes and let people see their outstanding peers in action.  Show examples of customers singing praises to demonstrate the impact of great service. Share any improvements such as fewer complaints, improved referrals, or more repeat business.

As a leader, it’s important that you demonstrate a service mindset and show others how to accomplish it.  By following these three steps, you can get your organization off to a good start on a path that will lead to better performance.

“Creating an environment where goals are clear, where success can be seen, and where learning is encouraged will help employees engage customers with a true sense of meaning.”               

– Garry Ridge, President and CEO, WD-40 Company

It’s the start of a new year and a great time to take stock of where you are and where you are going as a leader.  The ability to think clearly and make the best decisions is a key part of any leader’s role.  Yet, many leaders tend to fall into bad thinking patterns—especially after a couple of years on the job.  Here are three of the most common bad habits and what to do to avoid them.

1. Either-Or thinking

Executives are asked to make decisions—and they get more difficult the higher up you are.  People or profits?  Centralized or decentralized?  Frontline decision-making or command and control?  Leaders will often have to choose from among opposing viewpoints and the people supporting those viewpoints will be expecting and asking you to endorse either Plan A or Plan B.

Always consider a Plan C first.  While opposing camps argue for why their plan will work while the other point of view won’t, see if you can find a solution that incorporates the best of both proposals while minimizing the downsides.

For example, should we empower our frontline people to make decisions? Yes.  Is there the possibility that they will make mistakes if we do?  Yes.  Does that mean we have to choose between all decisions being made at the frontline, or all decisions being made at headquarters?  No.  There is a better decision that allows frontline decision-making and maintains accuracy and consistency.  Find it.

2. Confusing decision-making with taking action

As a leader, it is easy to think that your job is primarily to make decisions.  Decision-making is only the first step.  The purpose of leadership is to take action and move.  If five frogs are sitting on a log and one decides to jump, how many frogs are still sitting on the log?  The answer is five until the decision to jump is actually acted upon.  Don’t confuse decision-making for taking action.  Take action!

3. Making announcements with little follow-through

If good decision-making is hard—taking action is even more difficult.  The biggest trap for leaders is focusing too much time on getting things started and too little time on following through to achieve results.  Legendary former chairman of Herman Miller, Max De Pree once likened leadership to being a third-grade teacher when he said that it oftens means repeating things over, and over, and over again until people get it right, right, right.  As a leader you need to keep the vision alive—even after the newness wears off.  You also have to provide people with the tools and resources they need to get the job done.  Remember that there is a strategic and a tactical side to leadership.  To be effective, you have to be good at both.

Resources to help you get started

There are a lot of great resources available to help leaders get started or stay focused on making decisions and taking action.  Here are three that focus specifically on each of the points above.

• To help combat either-or thinking, check out Polarity Management by Barry Johnson.  It details a step-by-step process for finding the best solution when faced with seemingly opposite choices.
• Who Killed Change?  A great book which identifies the “usual suspects” that kill good ideas in companies and keeps decisions from turning into action.
• Helping People Win at Work  Identifies a clear, 3-step process for setting goals, providing resources, and following up effectively.

Make 2012 your best year ever.  Exercise your decision-making power.  Strive for the best solutions, take action, and follow-up.  You’ll be surprised at what you can achieve when you do!

Now that the holidays are over, the true test of customer service begins…Black Friday has come and gone; all of the holiday specials, the “one day only” sales and then the post holiday sales have all died down, so what’s left to attract customers into your stores or businesses?

A big part of it is the memory your business has created in the minds of your customers.  Were you easy to do business with in all of the hustle and bustle of holiday shopping?  Were your employees friendly and inviting and patient with the customer?  Did you welcome returns and exchanges and use that time to chat about people’s best memories of the holidays? It is not too late!

I worked for many years with a number of ski resorts in Colorado and the biggest message I needed to impress upon the employees was that by working in  a seasonal business, there was only a small window to make a great impression on their guests so that they would remember their positive experience and want to come back again next season.  The same is true for all companies and businesses.  Even during your busiest times, that’s when your customers are watching for, and expecting, great customer service.

I have read countless of comments on my Facebook from friends sharing their frustrations of horrible customer service they received over the holidays.  They were mad and frustrated and couldn’t wait to post it on Facebook for the world to read!  Research shows that people don’t make buying decisions anymore based on only their experiences.  They  make those decisions on friends’ and family members’ experiences, and now with the help of social media, based on thousands of strangers’ experiences as well!  That one bad service story spreads like wildfire and can ruin your reputation very quickly.

So what do you do as a business owner, manager, or even as an employee of a company to start a legendary story of service?  Remember that customer service is ALWAYS important and should never be discounted like your prices! Make each interaction with a customer so memorable, that the product becomes the by-product.  Remember that great service with external customers starts with great service to your employees or internal customers. Praise employees when you catch them giving great service, and  constantly keep “serving others” front of mind.  If you do this and stay focused on serving people, your customers will reward you with their devotion and loyalty.

This guest post by Kathy Cuff is the latest in a series looking at exceeding customer satisfaction and loyalty.  Kathy, together with Vicki Halsey, are the principal authors of The Ken Blanchard Companies’ Legendary Service training program.  Their posts will appear on the first and third Thursday of each month. 

WD-40 CEO Garry Ridge and best-selling author Ken Blanchard got some eye-opening responses to questions they asked in a recent webinar.  They were sharing some of the key points from their book Helping People Win at Work, and as a part of their presentation they conducted a survey with their audience.  They wanted to find out how attendees felt about the performance management process in place at their organization and how it was impacting culture and performance.

To get at that, they shared five key questions from WD-40’s annual engagement survey and asked the audience how many of these statements they would personally agree and/or strongly agree with.  Here are the questions (and the percentages of positive responses.)  See how this stacks up with your experience.

In my organization/company…

1. I am treated with dignity and respect. (78% agree/strongly agree)
2. Employees work passionately toward the success of the organization. (52% agree/strongly agree)
3. I am allowed the freedom to openly discuss an alternative point of view concerning issues at our company/organization with my supervisor. (71% agree/strongly agree)
4. My supervisor respects me. (77% agree/strongly agree)
5. I know what results are expected of me. (68% agree/strongly agree)

Then Ken Blanchard asked one additional question to highlight the connection between performance management and culture.  After the initial results were shared, he asked, “Do you believe that you, as an employee, benefitted from your last review with your supervisor?”

Over 58% of the 500 people in attendance said “no”.

Blanchard and Ridge used this final question as a springboard to share their thoughts on what makes up a successful performance management system for employees.  They identified three key components.

1. Clear, agreed-upon goals.
2. Consistent day-to-day coaching designed to help people succeed.
3. No surprises at performance review.

The core of their message was that it’s all about trust and respect.  Organizations that treat people as valued team members by taking the time to structure jobs their properly, provide direction and support as needed, and focus more on helping people succeed instead of evaluating them, are the ones that create engaging work cultures that bring out the best in people.

What’s possible?

But does it work?  That’s where Garry Ridge’s experience at WD-40 really caught my attention.  After working at this for the past 10 years, Ridge answers, “absolutely” and he has the numbers to back it up.

Check out these responses from WD-40’s most recent survey on the same questions Ken Blanchard asked the audience.

1. At WD-40 Company I am treated with dignity and respect. (98.7% agree/strongly agree)
2. Employees at WD-40 Company work passionately towards the success of the organization. (98.6% agree/strongly agree)
3. I am allowed the freedom to openly discuss an alternative point of view concerning issues at WD-40 Company with my supervisor. (98.3% agree/strongly agree)
4. My supervisor respects me. (98.0% agree/strongly agree)
5. I know what results are expected of me. (97.7% agree/strongly agree)

The numbers at WD-40 are at least 20 points higher in all categories and an eye-popping 46-points above the audience survey response when it comes to question number two, “Employees at WD-40 Company work passionately towards the success of the organization.”

Ridge also has the bottom-line impact numbers you’d expect with the company experiencing consistent growth over the time period and record sales for the most recent fiscal year.

How about your organization?

Strong performance management is a basic key to success but its implementation is very uneven in today’s organizations.  Some companies have strong processes in place while others leave it up to the discretion of the individual manager. 

What’s your company’s approach to performance management?  How is it working? 

If you could use a more consistent, proven approach, check out the process that Blanchard and Ridge suggest in their book Helping People Win at Work.  It can be implemented at any level in an organization.  To see the complete presentation Blanchard and Ridge conducted check out the webinar recording posted up at Training Industry by clicking on this link.

Good performance management is a basic to better performance.  Don’t let an uneven approach create inconsistent results.  Your people deserve better.  Conduct a performance review of your performance management system today.

What’s your favorite place to shop?  One of my favorites is my local Ace Hardware store.  It has a unique combination of the home improvement products you’d expect plus décor items to make your house feel more like a home.

But that is not why I really shop there.  What stands out for me and why I love to shop at this store has to do with the people that work there.  Sure, the products got me in the door originally, but when I started shopping there and interacting with the employees that work there, I quickly realized this store was different than many other stores because of the way I felt when I was in the store.

The moment you walk in the door, you are greeted (in a sincere way, not the phony tone you so often hear) and asked if you need help locating anything.  There is always somebody nearby to ask a question, say hello to me, or asking how your day is going.  I feel welcomed, like when you go to a friend’s house.

I recently went to this store to have a key made for my car. Now, there are numerous places to have a key made these days, so I had lots of options to choose from.  Again, I chose to go to Ace because I like the way I feel when I am in there, knowing that the employees really care about me and want to serve their customers.

And it isn’t just one or two employees—it is everyone in the store that works there.  As I was waiting for the guy to make my key, two different employees walked by me, aware I was waiting, but took a moment to just make small talk with me, letting me know that they noticed me, which made me feel good.  So often an employee walks right by you, not even acknowledging you standing there.  Ace management has obviously trained their employees to recognize customers and make sure each and every customer feels taken care of.

It’s about the feelings you create

So why does this store have such an impact on me?  It is not the products or services that they provide, since they aren’t really unique from other stores or businesses.  It is not the price of the items, since they are definitely competitive with others but not the cheapest deal in town.  It boils down to the people that work there and how I feel when I am in the store, whether purchasing something or not.

What’s the experience customers have when they interact with your people?

Your competition can replicate your products and services, but it’s your employees that really make or break that shopping experience.  Getting them to understand and believe that serving people is their job is the winning ticket.  When the customer feels like the employee cares about them, it will bring your customers back and also have them share their experience with others.

Editor’s Note: This guest post by Kathy Cuff is the first in a series looking at exceeding customer satisfaction and loyalty.  Kathy, together with Vicki Halsey, are the principal authors of The Ken Blanchard Companies’ Legendary Service training program.  It will appear on the second Thursday of each month.

The average organization is losing an amount equal to 7% of their annual sales because of poor leadership practices. That’s the surprisingly large amount of money identified by companies who completed the Blanchard Cost-of-Doing-Nothing online calculator. 

In the December issue of the Blanchard Companies Ignite newsletter, I discussed some of the initial findings from an analysis of the 200+ companies that shared their current and desired levels for customer satisfaction, employee retention, and employee productivity in their organizations.

That analysis found a 14-point customer satisfaction gap, a 16-point employee productivity gap, and a 45-point employee retention gap which translates into over $1 million dollars for the average organization.

The role of leadership

Strong leadership and management practices can close the gap in all three of these areas.  Academic research has established a strong correlation between employee satisfaction scores and subsequent customer satisfaction scores and in both cases these have been tied back to leadership practices. The bottom line is that leadership practices matter. Companies that have good leadership practices outperform companies that don’t.

Organizations that do not address leadership practices suffer a persistent drag on performance that keeps results down. When times are good, this drag on performance can be manageable, but when times are tough, it’s critically important that everyone perform at their best—especially in terms of creativity, innovation, and breakthrough thinking.

Join me for a webinar on December 7

On December 7, I am going to be presenting a more in-depth look at the Cost of Doing Nothing analysis and sharing some strategies for addressing it.  This is free webinar courtesy of Cisco WebEx and The Ken Blanchard Companies.  Over 500 people are registered and I hope you’ll join us also. You’ll see some information about the webinar below.

PS: If you would like to read more of the Blanchard article, Don’t Underestimate the High Cost of Poor Leadership, just click here.  (You’ll see my recommendation for a first step that all leaders can take right away.)

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The High Cost of Poor Leadership: The three performance gaps you have to address Wednesday, December 7, 2011, 9:00 a.m. Pacific, 12:00 p.m. Eastern, 5:00 p.m. UK and GMT

Poor leadership practices cost companies millions of dollars each year by negatively impacting employee retention, customer satisfaction, and overall employee productivity. In this Webinar, Blanchard Program Director David Witt helps you take a closer look at the effect that leadership has in each of these three areas and what you can do to improve performance.

You’ll learn that

• Less-than-optimal leadership practices cost the typical organization an amount equal to as much as 7% of their total annual sales
• At least 9% and possibly as much as 32% of an organization’s voluntary turnover can be avoided through better leadership skills
• Better leadership can generate a 3 to 4% improvement in customer satisfaction scores and a corresponding 1.5% increase in revenue growth
• Most organizations are operating with a 5 to 10% productivity drag that better leadership practices could eliminate

Drawing on proprietary original research, you’ll learn which management techniques generate the best results and also look at some of the common cultural roadblocks that keep companies from implementing them. You’ll also learn how to overcome these obstacles and make the shift from knowing to doing.

Organizations need to make sure that they are getting the best out of their people by providing strong, consistent, and inspiring leadership. Don’t miss this opportunity to learn how to evaluate and improve leadership practices throughout your organization.

Register today! http://www.webex.com/webinars/The-High-Cost-of-Poor-Leadership-The-three-performance-gaps-you-have-to-address

We all know the saying “If you want something done, give it to a busy person.” It’s sound advice—but it’s also a dangerous habit unless you step back occasionally to see what impact it might be having on the busy person’s experience at work. For most managers, having a “go to” person is a great asset. Just make sure you don’t overdo it by going to the same person again and again.

This is a dilemma for most managers according to Scott Blanchard in a recent blog post for Fast Company magazine.  Blanchard explains that it is only natural to assign tasks to the most accomplished people on your team. The challenge is to balance a short-term need for immediate results with a long-term view for the growth and development of your people.

Finding the perfect balance

Drawing on some of the core concepts from Mihaly Csikszentmihalyi’s book Flow: The Psychology of Optimal Experience, Blanchard explains that managers need to balance routine work that is easily accomplished with challenging new tasks that provide variety.

How can managers find the right balance?  Here are three strategies that Blanchard recommends:

• Become more aware of your goal-setting habits.  Have you optimized the challenge inherent in each person’s goals or tasks, or have you fallen into the habit of overusing and under-challenging your best people? Have you focused more on your own needs instead of theirs by giving them routine work you know they can accomplish successfully with little intervention on your part?
• Focus on both the long and short term.  Manage the urge to assign a task to a proven winner to ensure quick completion versus assigning the same task to someone who is brand new and may require some direction and support. But don’t go overboard. You don’t want to focus solely on employee development and compromise organizational effectiveness. Balance is the key.
• Create variety for yourself and others. According to Warren Bennis, the most effective managers are the ones who actively engage in clear periods of reflection as well as action. Balancing task variety is one of those projects that requires some discipline and awareness to think through.

Blanchard also reminds readers that most people become bored because they’re doing boring tasks—not because of a character flaw. Instead of moving away from a person you might see as a complainer, see that person instead as someone who is not really “in flow” and work with him or her to find out what the right mix could be. It’s a management basic that creates the long and short term impact that works best.

PS: To read more of Blanchard’s thinking on creating the right mix in your work environment, check out, Helping Your Employees Find Their “Flow” at Fast Company.

Everyone goes through emotional ups and downs during the course of a normal work week.  What’s your personal policy as a manager when it comes to addressing the feelings of your people at work?

• Are you an Avoider, unsure about how to deal with feelings so you retreat from the situation? 
• Are you an Ice Man, and believe that feelings don’t really have a place in the work environment?
• Are you an Over Indulger and tend to get a little too wrapped up in emotional situations?

Going too far in any of these three directions can lead to problems at work.  The best approach is to find a balance.  Make sure that people are clear on performance expectations, but at the same time let them know that you are there to help and support them when necessary.

Looking for a way to do this regardless of your personality type?  Here’s some good advice from Ken Blanchard, best-selling author of more than 50 books on management and leadership.  When asked what he hopes people remember most from his body of work, Blanchard identifies one concept that goes back to his best-selling book, The One Minute Manager, written together with Spencer Johnson. 

“Catch people doing things right.”

Take the time to notice when someone who reports to you is doing something right.  This one simple gesture says volumes.  Imagine it for yourself.  How would your day be impacted if your boss stopped by and shared a kind word about something you’re working on? How would that make you feel, impact your morale, and subsequent performance? 

Now, imagine what a kind word from you would do for your direct reports.  No matter what your personality type is, a kind word is always appropriate and appreciated.  Try it today.  You’ll be surprised at the difference it makes.

In a recent blog post, Gen Y: The Doom of Middle Managers? Entry-Level Rebel Jessica Stillman points to data that suggests Gen Y workers might not need traditional middle managers. 

Why? 

Changes in technology, attitudes, and the nature of work eliminate the need for supervisors who only see their job as telling people what to do and then evaluating performance at an annual review.

If that is what’s happening in your organization, consider asking senior leadership to create a higher standard for managers.  Setting goals and conducting performance reviews are just the beginning of a middle manager’s job.  Their real value is in their ability to access resources, remove obstacles, and provide day-to-day coaching for the people who report to them. 

If your manager is not providing you with the support that you need to succeed, here are three things to ask for (and a proven way on how to ask for it.)

What to ask for

1. A clear sense of how your job impacts key departmental goals. Everyone needs to know that their work is meaningful and to have some clear alignment between what they do and what the organization is trying to accomplish.  If you can’t point to a key departmental objective and how your work is impacting it, you do not have the alignment that should be in place.
2. A well defined job that includes some routine and some challenging tasks. In a healthy work environment, you will typically have 3-5 goals that you need to accomplish.  If your job is structured properly, some of those tasks will be very achievable with your present skills while others are more of a stretch that you cannot accomplish with your current skill set and resources. This mix is an essential component of a satisfying job that also encourages career growth.
3. A clear agreement with your boss about where you are at and what you need to succeed.  For tasks where you are self sufficient you need an agreement with your boss to give you the autonomy you deserve to accomplish the task as you see fit.  No one likes being micromanaged on tasks they are capable of achieving on their own.  For tasks that are beyond your current skill level and immediate resources, you need an agreement for the direction and support that will help you access the budget, training, and expertise you need to get the job done.

How to ask for it

• Use “I need” statements.  One of the most powerful ways you can get the help you need to accomplish your work goals is to use “I need” statements.  For example, “In order to process customer orders more efficiently, I need a higher level of access into our customer database,” or “In order to create the type of social media campaign and metrics that we are talking about, I need some additional training.”  For best results, pair any “I need” statement with three possible solutions.  Very few bosses will turn down this type of request—especially when it is in pursuit of legitimate departmental goals.

A good middle manager or front line supervisor takes strategic directives and turns them into results.  Is that the role your immediate manager is playing?  If not, expect more.  Use “I need” statements to make sure that your job is aligned,  that you have a mix of routine and stretch goals, and that you have an immediate supervisor committed to helping you access the resources you need to succeed.

Good middle managers will never be obsolete.  That distinction is only reserved for managers who see their role as assigning tasks and evaluating others.  That truly is obsolete, not just for the next generation of employees, but for all employees.

“Make sure that people understand your reasoning and process. If you decide that some information is just too sensitive to share openly, that’s okay. Just be sure that the process you use isn’t seen as secretive. In the absence of openness, people will imagine the worst,” says Scott Blanchard in a recent column for Fast Company.

One area where companies often run into trouble with this is sharing information about employee compensation. Most companies keep actual salaries confidential but that doesn’t mean that the process of determining salaries has to be confidential also, explains Blanchard.  “If you have a good reason for paying at the level you do, let people know. Keeping it a secret doesn’t help things. It just causes unnecessary discontent.”

A Case in Point

To illustrate his point, Blanchard shares a story about the experience of a CEO who serves on the company’s board of directors.  This CEO went through something just like this when an internal employee survey showed dissatisfaction about the fairness of pay in his company. This was really frustrating to the CEO, who believed that the company’s pay scales were well above industry averages.

“It was purely an openness issue,” explains Blanchard. “The company had been operating fairly for a long time but leadership had not taken the time to fully disclose the way they were making decisions. When they eventually did disclose the process, perceptions went up.”

For this company, the first step was to conduct a highly visible and transparent study with an outside firm to analyze the company’s whole compensation system.

“What it showed was that the company’s base pay levels were almost exactly at the 50th percentile for organizations of a similar size and with the same demographics. It also showed that the company had a generous bonus plan in place available to all employees. The bonus plan, together with the base pay, resulted in employees being compensated at the 75th percentile–well above average.

“Armed with this information, the leadership team went on an organization-wide campaign to talk about the procedure they used to determine pay scales and the rigor they used in applying it. As a result, they were able to change people’s perceptions of the level of compensation in the organization and its relative fairness. Because people had a greater understanding about the way pay scales were determined, they had a better capacity to understand and accept the results, even though they still wished—like all of us—that they were making a little more.”

How open is your company when it comes to sharing information about how decisions are reached? 

Are you more of an “open book” or a “closed book” culture?  Remember that your approach will have a definite impact on employee’s perceptions of fairness.

As Blanchard concludes, “When people aren’t able to point to a process that is known, published, and understandable, they start to make up their own stories. If there isn’t clarity about the way decisions are made, the stories people make up are typically a lot worse than reality.”

You can read Scott Blanchard’s entire column in Fast Company, The Just-Right Approach To Social Media And Transparency, And What It Says About Your Company and also check out Blanchard’s other thoughts on compensation at The Role Money Plays in Engaging Employees.  To read more about money’s role in creating an overall engaging work environment, download the new Blanchard white paper, Employee Work Passion: Connecting the Dots