Achieving Business Excellence with John Spence

Which Should Come First? The Employee or the Customer?

A few weeks ago I posted a guest video from my good friend Joe Calloway, so that I could introduce him to all of you that did not know about his fantastic work. He sent a great video on leadership and disruption. (Click here to watch that video). The video was so well received that I decided to reach out to several of my very favorite authors and ask them to contribute. Today I am extremely pleased to introduce you to Dr. Joseph Michelli, who I would consider the world’s leading expert on customer service/customer experience. Joseph has written several amazing books including “The Starbucks Experience” and “The New Gold Standard” (about the Ritz Carlton). His newest book is called “Driven to Delight” and it looks at how Mercedes Benz catapulted the company to first place rankings in national customer satisfaction studies while at the same time growing sales and profits. ALL of his book have valuable insights that can help any business improve their customer service, satisfaction and loyalty. In this blog Joseph answers a question I get a lot too; Is it customer first or employee first? I will give you my opinion at the end of the blog, but first, here is what Joseph has to say…

Which Should Come First? The Employee or the Customer?

from Joseph Michelli

Ok, I admit the issue of employee versus customer primacy falls into the category of   unanswerable debates such as which came first the chicken or the egg. That said, many leaders continue to articulate a mantra that either the customer or the employee “comes first.”

While I personally like to side-step this looping debate by suggesting that “all business is personal,” and that personal connections must be formed with the people we call employees in order for those people to profit and serve other people we call customers or shareholders, I am convinced greater leaders have a penchant for forming meaningful personal connections at all levels of an organization.

The experiences on which I’ve come to concluded the importance of “interpersonal engagement” stems from my work with and the books I have written about companies like the Pike Place Fish Market, Zappos, The Ritz-Carlton Hotel Company, Starbucks, and UCLA Health Systems. Here are a few lessons and tools I’ve picked up along the way by watching the consistent care afforded by leaders in these organizations:

1) Employee Engagement Drives Customer Engagement.

While a causal relationship would be difficult to prove, strong correlations exist between employee engagement and customer engagement. As such, leaders in “world class” service organizations measure and actively seek to drive employee and customer connections. Ultimately these leaders seek to have employees who feel their opinions matter, are recognized for work that is well done, are provided opportunities to work and grow and to function in a community environment where employees experience autonomy, mastery, and purposefulness.

2) Customer Engagement Drives Loyalty and Advocacy.

Customer satisfaction does not ensure customer loyalty. In fact, satisfaction alone leaves your customers a coupon away from trying a competitor. As such, great leaders and business owners seek to instill a culture of service excellence through a clear delineation of the optimal customer experience (operationally and emotionally), and by constant discussions of core service values, as well as an emphasis on the overarching purpose of the business. These leaders collect stories of service excellence and link them back to the desired optimal customer experience and to their companies mission, vision, and values

3) Business must be transacted for high efficiency but filtered through the lens of humanity. In my book Leading the Starbucks Way, I share a conversation I had with the company’s CEO Howard Schultz in which he demonstrates this point best, “Take love, humanity, and humility and then place it against a performance driven organization; these are in conflict to the naked eye but …we have become more performance driven than at any other time in our history and the values of the company are at a high level. If we can infuse love, humanity, and humility on a global basis and build it into a performance-driven organization, we are unbeatable.”

So rather than trying to craft a catchy slogan like the customer is king or queen, or the employee is number one, how about redoubling efforts to drive the engagement of both customers and employees while fueling a high-performance organization in which leaders makes decisions through the lens of humanity? That seems like an unbeatable combination to me, how about to you?

 

From John: I agree with Joseph in large part, but I will sum-up my thoughts with one Awesomely Simple phrase…

The customer’s experience will never exceed the employee’s experience.

I hope you found this helpful, if so, please share it with your network. Thanks so much – John

 

…….

Leadership and Disruption

There are several authors who have had a huge impact on my thinking and my career, and at the top of that list is Joe Calloway. I have read every book he has written, and then reread them, and then read them again. The title of one of Joe’s books is “Be The Best At What Matters Most”” which exactly describes Joe. I asked him if he would send me something that I could share on my blog to introduce him to any of my followers who did not already know him. Folks, this guy is brilliant, he has amazing business ideas, he has ideas that can change your organization and take you to a completely new level of success. He put this video together especially for us, and it offers you some very valuable business advice. I urge you to go look at his other videos and buy his books. Not because I’m trying to help him make money, but because I’m trying to help YOU make money. Here is my good friend and someone I respect and admire a great deal, Joe Calloway…

Here is a link to Joe’s author page on Amazon — it lists all of his books there.

Click HERE

 

 

Irrationally Passionate

I was driving into the office this morning (Saturday – and you notice I didn’t call it work) listening to a podcast about how to increase sales. The person being interviewed said that the best way to grow your business was to focus on “irrationally passionate” customers. People, who are fanatical about the type of products or services you sell. Good examples would be Star Wars fans who will buy just about anything that has to do with Star Wars, or a sports fan who is crazy about their team, someone into golf, knitting, gardening, dogs, cats… a target customer who is so irrationally passionate that they become a raving fan for your business because you offer something that they “have to have.”

I love this idea. It makes perfect sense for how to identify your key target market. If you start your focus on this potential group of customers, you will also appeal greatly to the folks that are not quite as passionate but still very interested. It also makes it so much easier to sell when you are offering your products and services to people that are enthusiastic about buying them. I see a lot of businesses waste time and money trying to sell to people that either don’t want or can’t afford their product. Here is a quote I use a lot when I’m delivering sales training, “Don’t try to sell to broke people.”

However, I also saw another application for the idea of “irrationally passionate.” This is the exact same thing that YOU need to be about your business/career if you want to achieve a high level of success. It’s very hard to become superb at something you are not deeply excited about. If you want to be one of the best of the best you must be fully committed… irrationally passionate… and willingly do what unsuccessful people are unwilling to do. So here are a few questions for you.

Are YOU irrationally passionate about…
  • Being better prepared than any of your competition?
  • Being insanely customer focused?
  • Delivering the highest quality products and services?
  • Delivering world-class customer service?
  • Operating with 100% honesty and integrity?
Is your company irrationally passionate about…
  • Hiring only top talent?
  • Building a winning culture of highly engaged employees?
  • Being fair and generous with your customers and employees?
  • Creating high levels of accountability across your entire organization?
  • Fostering lots of open, honest and transparent communication within your company?
  • Focusing intently on disciplined execution?
  • Demanding excellence and refusing to tolerate mediocrity?

These are just a few questions; I could easily add another twenty. The point is, you will never become truly great at something if you are not irrationally passionate about achieving greatness in that area. I know that sounds simplistic, but it is the truth. Unfortunately, I see a lot of people today that think that they can attain great success without great effort. That has never happened and it never will. All success comes from work, usually very hard work, and excellence comes from being irrationally passionate about the pursuit of excellence.

What are you irrationally passionate about?

Five “Easy” Steps to Dominate Your Market

 

Do these five things CONSISTENTLY and you will crush your competition.
I guarantee!!

 

 

A Perfect Breakfast Storm

240_F_90927099_z6LSkcqAbKKIpsbNmhygPROfNiNTK1x9Recently I witnessed a perfect storm of two prevalent business problems:

 Activity vs. Results and The Law of Unintended Consequences.

 

I was having breakfast at a very nice hotel. When I was seated I asked the hostess if I could have a menu but she explained to me that they only offered a buffet. So I walked over and put together a plate of food. When I returned there was a glass of water on my table, however, I really like to have iced tea with my breakfast, so I looked around to try to catch the attention of one of the servers. I was literally the only person in the restaurant, yet I couldn’t get any help. The staff was feverishly working away at folding napkins and setting tables for lunch (it was 8:40 AM), busy as could be and completely ignoring me. When I started to eat my meal, the eggs were cold, the sausage was cold and the potatoes were cold, so I decided I might as well have some yogurt, because it’s supposed to be cold. I set my plate to the side and went back to the buffet for the yogurt, upon returning my plate was still there and no iced tea. After I ate my yogurt I waited patiently for someone to come over so that I could ask for a check, and no one ever came to my table. So on my way out of the restaurant I mentioned to the hostess that no one asked me to pay for my breakfast, to which she replied, “Oh it is included in with room, you have already paid for it.”

That is when it dawned on me. Because they had no way to earn a tip, nobody put any effort into helping the customers, it was much easier to just look busy folding napkins so that their manager did not give them a hard time. Again, I tell you these sorts of stories not to complain, but to hold up a mirror and ask you: Do you ever do this in your business? Do you judge your employees by how early they get to work, how late they stay and how busy they look – not on the quality of their work or results they deliver? Is your reward and recognition system in alignment with the priorities of your business?

Are you paying your people to do what is most important and drive success, or to have nicely folded napkins?

If you would like some ideas about how to improve your culture, I wrote a short ebook with my best ideas. Here is a link to learn more:

51Mk+KEqXTL

 

 

 

 

 

 

How To “Win” In Sales

shutterstock_727943

 

This is one of the biggest “aha moments” I ever had when learning to be salesperson, which I got from a fantastic book called: Let’s Get Real or Let’s Not Play by Mahan Khalsa.

“In sales, you and the customer want the very same thing: the Exact Right Solution.”

 

Let me unpack this for you…

If you are talking to a potential customer, than they have already given you a buying signal; they are giving you some of their time, which means there is at least some level of interest in your product or service. So you both know what you are there for, a potential sale. The goal then is to make sure that you both get what you want out of the transaction, they get a reasonable price on a product or service that they need and you make a reasonable profit. This is the only possible outcome for successful transaction, the Exact Right Solution.

  • Sell them something too expensive and they find out that your price was high, you lose the customer.
  • Sell them something too cheap and you lose money on the deal, your company goes out of business.
  • Sell them the wrong product that will not actually meet their needs, but makes you a nice commission, you lose the customer.
  • Sell them the right product and deliver it late, you lose the customer.
  • Sell them the right product and it does not work, and you fail to follow-up and get it fixed quickly, you lose the customer.
  • Sell them the right product but promise them too many additional services, you lose money on the deal, your company goes out of business.

I could go on and on, but I’m sure you get the idea, unless both you and the customer get exactly what is right for both of you, you have not made a successful sale.

That means that it is not you against the customer, it is the two of you working together as a team to develop the Exact Right Solution. To me, this takes away the sometimes adversarial relationship between buyer and seller. I remember early in my career that every time I went on a sales call I felt like I was trying to “win the sale.” The truth of the matter is I should have been trying to win the trust of my customer by giving them exactly what they wanted, that also aligned perfectly with what I wanted, so that we could build a strong positive relationship and I could be seen as a partner and trusted advisor who would always do what was in their best interest, as long as it was also in my best interest. The classic Win-Win agreement.

Now that I understand this, sales is so much more fun. I’m not there to “win” anything, I’m there to help us much as I can and work jointly with my customer to develop solutions that makes everybody happy so that we look forward to doing more business together in the future.

To me, that is the way a professional salesperson approaches the sales process.

Your thoughts?

6 Key Business Ideas to Help You Succeed in 2017

Mercedes, John, Sheila, Esther

Mercedes, John, Sheila, Esther

On behalf of myself, my wife and business partner, Sheila Spence, our Operations Manager, Mercedes Petrus and our Financial Manager, Esther Mallard – thank you VERY much to all of our clients from 2016 for trusting us to be involved in your businesses.

 

I hope you will share this video with your network, and if you have not already, please sign up for my blog – I only post good stuff!  blog.johnspence.com

 

For Your Convenience

Screaming into telephone.Whenever you see the phrase, “For your convenience,” you know it’s going to be anything but convenient. I’ve been on the road for about two weeks and during my trip here are just a few of the things that people so kindly did for my convenience…

“For your convenience, rubber mats for the shower are available upon request, simply call the operator and we will have one brought your room.” Not very convenient when I’m standing in the slippery shower and realize I need a shower mat to keep from falling and killing myself.

“For your convenience, we have added a daily $10 charge to your room for cleaning services.” I guess if I refuse the charge they will leave my room dirty?

“For your convenience, the café opens at 7 AM.” Unfortunately, I have a 7:30 meeting on the other side of the hotel, not very convenient to have to skip breakfast.

And finally, my favorite one, yesterday morning I ordered a taxi cab at 8:30 AM so I could make the 6-mile drive to my client’s building and arrive on time for my 9:00 AM meeting. I called down to the desk at 7:00 AM to order the cab, and 30 minutes later they called and said the cab was out front waiting for me. I mentioned to the operator I was not expecting the cab for another hour, the reply was that the cab driver thought it would be more “convenient” because there’s often a lot of traffic at this time of the morning.  “Really,” I inquired, “I need an hour and a half to go 6 miles?” She told me the cab driver said it would likely take that long. So I rushed like crazy to get dressed, packed and down to the cab as fast as possible.

While riding in the cab on the way to my appointment, the cab driver mentioned he just happened to be across the street when the call came in for an 8:30 ride and thought it would be much more “convenient” to pick me up at 7:30. Convenient for who? By the way, it took 11 minutes to get to the building where my meeting was and I had to sit in the lobby for an hour before going up to my client’s office.

My point in all this? What might your company be doing for your customer’s “convenience” that is not actually convenient for them at all? Where are you causing frustrations, disappointments and unhappy customers because it is more “convenient” for you and your staff? How can you remove or replace any procedure that is not truly convenient for the people you serve?

I wrote this article, “For your convenience,” I hope you found it helpful.

Signed With a Handshake: How Trust Builds Good Companies

Recently I rehandshakecommend a great book from Bernie Swain called “What Made Me Who I Am.” I was very impressed with Bernie and his approach to business so I asked him if he would share a guest blog for my readers (that’s you). I really love what he sent, and I think you will too, it is a great testament to how important it is to build honest and real trust with your customers. Here is his article…

When you start your first business, it is hard work. The odds are against you. When you start your first business in an industry you know nothing about (other than what you read in a magazine), it is virtually impossible to succeed. And yet, that is exactly what my wife, my business partner and I did more than 35 years ago, when we hung out our shingle as the Washington Speakers Bureau.

No matter how you start, you will quickly learn some important lessons about finances, products, customer service, marketing, and, if you are like us, the need for a business plan. These are the fundamentals of any business. You also learn about the intangibles necessary to succeed, such as leadership, passion, focus, integrity and trust. You often learn these through trial and error. But I learned one of them, trust, by mistake and it became a defining moment in our company.

In our first year, we represented no one. We made no money. Then after 14 months, we signed our first speaker, Steve Bell, the news anchor for ABC’s Good Morning America. Actually, all we did was shake hands. While the practice in our industry was to sign speakers to one- or two-year written contracts, we were too excited to do any paperwork.

This meant that Steve could walk away from us at any time. Loving that idea, he told some of his friends, a group of Washington journalists, that we didn’t require signed contracts and if they went with us, they, too, could walk away.

This mistake attracted our first stable of speakers, all on a handshake. It did one other thing, totally unanticipated. It established an atmosphere of trust. We knew that we had to work hard to keep our new speakers happy or they would walk. But in turn, our hard work showed our clients how much we cared. Instead of being a mistake, our handshake agreements built a deep intimacy and a bond on which we began to rely on each other. That is the basis of trust, and it was a critical turning point for our company, where we continue to “sign” every speaker with a handshake.

We went on to become the biggest speaking bureau in the business, representing many of the world’s leading figures in government, business, sports and the arts, in addition to the media. In talking to many of our clients about the challenges they faced in their careers, I realized that we were in good company. They, too, had benefited from turning points—some intentional and some by way of happenstance—that made the difference at crucial junctures in their lives.

To be sure, not every business agreement can depend on a handshake—employee contracts and vendor agreements, for example, almost always have to be far more formal.

But every company can find ways to foster trust—by delegating responsibility, say, or establishing a compensation system that gives each employee a stake in the organization’s future. The company benefits, the employees benefit and, most important, the customers benefit.

For us, the trust we have with our speakers has spread to all personal and professional relationships in our company. “Can I trust you?” is not a question we ask, but rather, “Is this the right thing to do?”

Trust builds good organizations, just like it builds good families. By contrast, “distrust is very expensive,” as Ralph Waldo Emerson put it. It tears everything apart.

Whether you discover this truth by mistake or by design, you’ll find that trust is fundamental to the success of any group of people you bring together or lead.

Let’s shake on that.

** By the way, I also do this with many of my clients. No contract, just show up, try to help them as much as I humanly can, and they send me a check. I really like doing business that way.