Showing posts with label Customer Service. Show all posts
Showing posts with label Customer Service. Show all posts

June 18, 2012

Flying The Miserable Skies

So I had booked up on the airline to go to the Florida Keys.

You have to go to Miami first and switch flights—it’s a two-legged trip.

But I decided after the first flight to just to stay in Miami and not go on the second flight to the Keys.

Since the flight was overbooked—not only didn’t the airlines lose anything by me not going, they actually benefited by having my empty seat for another passenger—and making money twice off of the same seat.

Yet, the airline demanded that I pay them a change ticket fee.

This is the first time that I heard of being asked to pay extra for not using a product or service.

Common sense and basic business practice is that if you don’t use something, you get a credit or refund, but the airline was actually demanding I pay an extra fee for this so called “change.”

I explained politely that I didn’t change anything and that I just wanted to be able to get home.

They said even by not getting on another flight that is a change—and as the customer service representative (and I choke on even calling him that) then went on to say, “you will pay for that mistake!”

I reiterated that I didn’t make a mistake or any change, I simply decided not to use the second leg of the trip.

I asked to see a copy of the policy or guidelines where I had to pay for not using something, but the customer rep refused this.

He may as well have said, “Who needs right, when we have might?”

Basically, it came down to, “If you want to go home, you will have to pay.”

As if this wasn’t enough, when I arrived at the airport, another airline representative made me put my rolling carry-on into the sizing device to check that it would fit in the overhead.

Dar-gone-it—I bought it specifically for just that purpose, as it was advertised—why go through this?

In the airport, in front of everyone, they made me empty my things out and put some in another bag to skinny the first--“just a little.”

Then they said, uh ha, now you have an extra carry-on we can charge you for—but I didn’t, I only had two bags, total!

Later, in the airport, I overpaid for a stale sandwich and diet soda.

And for the first time, even after going through airport security and showing my boarding pass and picture identification once, I was then asked to do it all over again—while “walking the plank” to board the flight, with suitcase and sandwich in hand. 

Not long after I sat down, an airline attendant literally shoved my seat up straight, and then reminded me put up my seat before takeoff! Yet the seat was already up—the whole time.

Another comes up and asks me if I was the one who asked about the Internet—no, it wasn’t me, but there’s another customer somewhere onboard who did ask about it—they just forget who it was—oh well.

It used to be that the airlines were just overcrowded, the bagged peanuts were skimpy, and the recycled air was nauseating, but now the flying experience is at a whole new level of yuck!

This is no way to run an industry, treat customers, or generally do business.

On the airline, the stewardess gets on the mic and says “welcome to {Blank} airlines” and hope you enjoy the ride—unfortunately, they are riding all of us. ;-)

(Source Photo: here with attribution to Kuster and Wildhaber Photography)

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March 17, 2012

Goldman Sachs Reputation Sacked?

When Greg Smith published his editorial in the New York Times (14 March 2012) on the alleged debased culture and greedy exploits at Goldman Sachs, this was far from surprising after the many misdeeds of Corporate America over the last decade that saw the rise of Sarbanes Oxley in 2002 and the massive financial bailouts in 2008, which does not represent who we really are and can be. 

It's not that Corporate America is bad, it's just that they frequently get rewarded for doing the wrong things

All too often, promotions, corner offices, year-end bonuses, and stock options are the rewards for racking in profits, but are not necessarily tied to innovation and/or customer satisfaction.

I believe over the years this has taken many word forms from snake oil salesman, charlatans, spoilers, and many others.

Greg Smith who worked for a dozen years at Goldman--in of all things "recruiting and mentoring"--described the venerable Goldman Sachs as a place where:

- "Interest of clients continue to be sidelined" 

- "Decline in the firm's moral fiber represents the single most serious threat to it's long-term survival."

- If you make enough money for the firm...you will be promoted."

- At sales meetings, "not one single minute is spent asking questions about how we can help clients." 

- Leaders callously "talk about ripping off clients" and call their clients "muppets," a British slang terms for "idiots."

The funny-sad thing is that after all these horrific accusations, Goldman has not come out and full-on-full repudiated these claims. 

On March 15, the Wall Street Journal reported "Goldman Plays Damage Control" saying that "it will examine the claims."  

Rather than denying the accusations in specific ways and pointing out their true moral fiber, the Chairman in a memo to employees chose to downplay the accuser calling him only one "of nearly 12,000 vice presidents" of 30,000 employees. In other words, this is just the opinion of a lone wolf. 

More generally, the Chairman wrote coyly that this does "not reflect our values, our culture, and how the vast majority of people at Goldman Sachs think of the firm and the work it does on behalf of our clients."

In another article, in Bloomberg BusinessWeek (19-25 March 2012), it states similarly that "Goldman Sachs would have you believe it's learned from the financial crisis. Don't be fooled."

The article goes on to list a scathing history of scandal from Goldman Sachs Trading Corporation that "blew up" after the stock market crash of 1929 to Goldman's settlement with the SEC for a whopping $550 million in 2010. Further, it describes a current conflict of interest case with El Paso and Kinder Morgan that they call a Goldman "heads-I-win, tails-you-lose approach."

While I have always respected the likes of Goldman Sachs for their unbelievable brainpower and talent, the accusations against them and by extension against others in Corporate America is very concerning.  

The notion that customers are but idiots for Corporate America to pillage and plunder is not democracy and capitalism, but greed and evil.  

When we no longer value a creed of service above pure profiteering then moral bankruptcy is just a prelude to financial bankruptcy. 

No company can stay afloat and be competitive over time, if they do not work to strengthen their balance sheets, income statements, and cash flows.

However, at the same time, no competitor can thrive for long on a culture of greed and duplicity that sees people as victims to spoil, rather than as customers to serve.

While I do not know the details of Greg Smith's accusations, this last part I know in my heart to be truth. 


(Source Photo: here)

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December 18, 2011

Beyond the Four Seasons

For anyone who has ever stayed at the Four Seasons, you know it is an incredible hotel.
Customer service reins supreme and that's not just good business, it's good corporate values.
But reading about the Indian version of the Four Seasons called the Taj--it seems like they have taken customer service to a whole new level.
The Taj which has been operating for more than 100 years (opened in 1903) has 108 hotels in 12 countries, including of course India, but also Australia, South Africa, the United Kingdom, and even America (Boston, New York, and San Francisco).
Harvard Business Review (December 2011) describes not just the routine day-to-day service provided at the Taj, but rather how they behaved under one of the most trying events, a terrorist attack.
On November 26, 2008, there began a coordinated 10 attacks across India's largest city Mumbai than killed at least 159 and gravely wounded more than 200. The attack now referred to as 26/11 (i.e. 26th of November) included the luxury hotel, the Taj Mahal Palace and Tower (i.e. the Taj Mumbai).
The Taj Mumbai suffered at least 6 blasts and "stayed ablaze for two days and three nights" engulfing the beautiful domes and spires of this structure.
But while the hotel suffered significant damage resulting in months of rebuilding, the spirit of service by the workers at the Taj was tested to the extreme and thrived.
HBR describes how Taj staff, hearing the blasts and automatic weapons, safeguarded their guests during the attack going so far as "insisting that husbands and wives separate to reduce the risk to families, offering water and asking people if they needed anything,...[and] evacuating the guests first."
The Taj staff did not run out screaming--everyman and woman for themselves, but they not only stayed calm and helpful, but they actually put their guests lives above their own.
This is sort of reminiscent of the firefighters, police, and other emergency first responders on 9-11, who ran up the stairs on the burning World Trade Center to save people--but in this case at the Taj, these were not trained rescuers, they were hotel staff.
In another instance at the hotel, according to the article, hotel employees even "form[ed] a human cordon" around the guests.
This again sounds more like the Secret Service protecting the President of the United States, then waiters and waitresses serving guests.
This is not to say that culture is the driving factor here, for example just this December 9, ABC News reports on how a fire broke out in an Indian hospital and killed at least 89 residents, while the "staff flees" and 6 administrators are subsequently arrested.
So if national culture is not the difference in how organizations and its people treat customers--what is?
HBR explains that it's really a recipe for customer service and user-centricity.
Starting with a "values-driven recruitment system" where the hotel looks for employees with character traits such as respect for elders, cheerfulness, and neediness (this reminds me of a boss I had that used to say she likes to hire employees "who are hungry.").
The Taj follows up their recruitment with a commitment to training and mentoring and empowering employees fully to do whatever it takes to meet the needs of its customers at what it calls "moments of truth."
The values of the Taj go so far toward serving its customers, that they insist that employees actually put customer needs ahead of the company and this is reinforced with a recognition system for those who strive and act for making happy customers.
Is this user-centric orientation limited to just the Taj Mumbai?
Apparently not, when a Tsunami struck at 9:30 AM on December 26, 2004 and killed 185,000 people, the Taj on the Maldives Island affected "rushed to every room and escorted them [the guests] to high ground" and still managed to serve lunch to survivors by 1:00 PM.
Talking about setting the bar high for customer service--how can you beat that?
(Source Photo: here)

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October 1, 2011

When a Phone is Not Just a Phone

Vertu = luxury phones, at least on the outside, for now.

The phones are handmade, one at a time, by master craftsmen in England for the luxury division of Finnish phone maker, Nokia.

Made from stainless steel with a sapphire crystal screen making them virtually unscratchable (except by diamonds) and keys that pivot on ruby bearings, the Vertu watches are undeniably eloquent and unique.

Bloomberg BusinessWeek (3-9 October 2011) pegs the average cost at for a Vertu at $6,800 with their Signature line costing more than twice than amount!

Started in 1998, they have sold more than 300,000 phones in the last decade, and have seen "high double-digit sales growth."

The main problem with the phones according to IDC researcher is that they are "remaining decidedly low-tech"--running on "Symbian, the old Nokia smartphone operating system being phased out in favor of Microsoft's Windows Phone 7"--another market non-starter!

Currently, they are seen as more jewelry than smartphone, and so "a lot of Vertu owners have another device for everyday use."

However, another area where the Vertu phone has the special something is in terms of service--concierge service that is. Free for the first year and then costing about $3,0000 a year thereafter, you get a 24-hour hotline in nine languages for handling everything from restaurant reservations to travel planning and sending exotic gifts, such as "a box of live butterflies"--well not something I would do everyday, but I may just not be such a great gift giver :-)

Also, many models come with dual-SIM cards so you can have one phone for example for both business and private use with different phone numbers, networks, billing plans, etc.

Certainly this phone makes a big statement in terms of handsome looks and a very special service offering, but to really be luxury inside and out in the mobile computing marketplace, it's got to do a deal with Apple and/or Android, period.

Vertu customers paying big bucks for a great phone, deserve not only the best looks, but the best smartphone technology.

Another big challenge is that with people upgrading their smartphones every 18-24 months, how do you maintain the Vertu's value over time or is this a luxury purchase to be made on the order of Moore's Law?

Oh baby, that's a lot of Vertu!

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June 15, 2011

Apple Store "Heaven"

The Apple Store is always packed with people--it's like they are just camped out there, permanently.

According to the Wall Street Journal (15 June 2011), the Apple stores are an unbelievable success story:

1) The 326 stores sold about $11.7 billion worth of merchandise in 2010, and have an estimated 26.9% profit margin--compared with about 1% margin for Best Buy before taxes.

2) They led with sales per square foot of over $4,406--higher than Tiffany at $3,070,, Coach at $1,776, and Best Buy at $880

3) More people now visit Apple's stores in a single quarter than the 60 million who visited Disney's 4 biggest theme parks last year.
And people are not just "window shopping," but people are actively engaged trying out, testing, experimenting with the latest Apple products sitting out on the display desks.

Of course, there are also lots of sales people in their bright red Apple shirts ready to help, answer questions, and even sell you something.

Apple's stated "sales" philosophy--"not to sell, but rather to help customer solve problems."

Thus, employees receive no sales commissions and have no sales quotas--that's definitely pretty novel! (The exception is that "employees must sell services packages with devices"--I've always been a little leery of those, thinking why do I need the service package if the product is supposedly such high quality to begin with?)

Apple focuses their team on customer service, and their 20007 training manual uses the APPLE acronym as follows:

A--"Approach customers with a personalized warm welcome"
P--"Probe politely to understand all the customer needs"
P--"Present a solution for the customer to take home today"
L--"Listen for and resolve any issues or concerns"
E--"End with a fond farewell and an invitation to return"

I sort of like it--no where does it say to sell, up-sell, cross-sell the customer, but rather it's much more about services and solutions.
At checkout, the salespeople can ring you up from where ever you happen to be in the store on iPod touches with credit card readers.

And trouble shooting Apple products is done at the "Genius Bar"--something like the Geek Squad on steroids. This is where things start to get a little weird, since Apple only pays their geniuses something like $30 an hour, so but for the love of Apple, what are they doing there?

Overall though, I think the whole store experience is pretty ingenious: from "the clutter free look using natural materials like wood, glass, stone, and stainless steel" to the large image color displays of the products dotting the walls, the stores are inviting, hip, and you know when you walk out with a product, it'll be plug and play, immediately functional, and extremely sleek to match.

J.C. Penny made a brilliant move announcing the hiring of Ron Johnson as their new CEO, effective November--Ron is the brains behind the Apple store design. If Ron can Apple-fy the Penny stores, wow wow wow, but that this is not a sure thing, since Apple products are cool and sort of sell themselves anyway--they just needed the right ambience.

(Source Photo: Andy Blumenthal)

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March 11, 2011

Power To The People




From potholes to garbage, broken street lights to vandalism...we want to get our community problems resolved.
There is a good-looking application called "SeeClickFix" for connecting people and government to point out problems and get them fixed, fast.
It works with iPhone, Droids, and Blackberries; integrates with Facebook and Twitter; and has dashboard reporting and alerts, as well as emails notifications to provide acknowledgements and status updates on issues.
Built on the Open311 model, which provides APIs to existing internal systems and processes, so citizens report non-emergency issues to government based on standardized, open-access, and interoperable systems.
Open 311 describes how it works:
"Using a mobile device or a computer, someone can enter information (ideally with a photo) about a problem...This report is then routed to the relevant authority to address...this information is available for anyone to see and...contribute more information...By making the information public, it provides transparency and accountability for those responsible for the problem."
According to an article, iCitizen, in Fast Company (December 2010-January 2011), reported problems from citizen's smartphones or computers can even be routed straight to dashboard computers on public works trucks, "meaning a click in the morning can lead to a repair in the afternoon."
Ok, this may still be more vision than reality at this time, but it is a noble vision, indeed!
This is an evolution from 311 phones systems in many cities which are one way communications from individuals calling into government call centers and then waiting, waiting, waiting to see if the problem gets resolved to instead applications like SeeClickFix as a highly visible cloud solution where many people can openly exchange information over the Internet on public issues--providing more information, even potentially rating and ranking them (i.e. helping set public priorities for allocating limited public resources to community problems).
This can even be coupled with suggestion platforms such as IdeaScale for crowd-sourced citizen input into urban planning and community health, safety, and livability issues.
As part of its Apps for Democracy contest, DC awarded a prize and grant for the development of FIxMyCityDC, a web-based application for submitting service requests, checking status by interactive maps, along with the option of the user getting a call when the problem is resolved.
This is huge progress from the prior endlessly annoying call centers and their Interactive Voice Response Units that previously took callers through a maze of pre-recorded numeric options that more-often than not ended in the users abandoning the call and service requests going unfilled.
This is a far better model of information sharing, collaboration and transparency to solve real everyday problems in our communities, and a great example of the power of e-Government.

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October 13, 2010

Customer Service Design

I really liked the article in MIT Sloan Management Review (Fall 2010) called “Designing the Soft Side of Customer Service” by Dasu and Chase.

The authors write: “Even in the most mundane [customer] encounters, emotions are lurking under the surface. Your job is to make those feelings positive.”

Wow! That is a pretty powerful statement.

Think about it. How often do you genuinely deliver on that positive experience for your customers versus how often do they come away feeling slighted, taken advantage of, maybe even cheated of the service they know they deserve.

Sometimes of course, there are justifiable reasons why we can’t make a customer happy—maybe the customer is simply being unreasonable or is a knucklehead or maybe even some sort of nutcase. We have to use good judgment when it comes to this.

But often there are other problems that are getting in the way of us delivering on that positive customer experience:

Problem #1: We get caught up in the policies, processes, personalities, and politics of a situation, rather than focusing on the customer and their satisfaction. We forget who our real customers are.

Problem #2: We don’t think like the customer. We don’t genuinely listen to the customer or try to understand where they are coming from or what they even want. We are too busy talking the “company line,” playing defense, or taking an adversarial role. We don’t put ourselves in the other person’s shoes, not even for a minute.

Problem #3: We often don’t put the customer first; we put ourselves first. We are more concerned with not making a mistake, getting into trouble, or maybe don’t want to even work “that hard.” In general, we should, but don’t go the extra mile for the customer, let along deliver on first mile.

The MIT article tells us that we can improve customer experiences by designing-in how we manage the customer’s emotions, trust, and need for control (ETCs), as follows:

  • Emotions—have empathy for customers and generate thoughtful interactions that limit negative customer emotions and accentuate positive ones, so that the customer comes away feeling joy, thrill, happiness rather than anger, anxiety and stress.
  • Trust—provide consistent performance, a high-level of engagement and follow-up, and clear and open communication. These contribute to building an enduring relationship.
  • Control—provide customers with ample information, so they feel “cognitive control” over what is happening to them, and provide customers with the ability to make significant service delivery decisions, so they experience “behavioral control.”

Designing for positive customer ETCs experiences will go a long way to resolving the problems of poor customer service, where we know and stay focused on who our customers are, can think as they do, and seriously deliver on their needs the way you would want your customer needs addressed.

I suppose if I have to sum it up in a couple of words, it’s about being professionally selfless and not selfish in all our customer interactions.

It takes some maturity to get there, but I think it’s why we are here to serve.


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September 15, 2010

Eat, Pray, Fly

Imagine your airplane flight with 40% more people than today's already crammed cabin...

(Pretty unimaginable right?)

Well check out these new airline seats called Skyriders, marketed by Italian company Aviointeriors.

The catch is that the Skyrider seats are only 23 inches narrow and passengers are expected to be in this crazy, half-sitting, half-standing "ergonomic" position for up to 2 hour flights.

The company's advice to larger size people: "You have to lose some weight!"

This certainly doesn't seem like a very customer-centric attitude, nor a very practical way to fly, no matter how much their spokesperson tries to "sell us the Brooklyn Bridge" on this one.

GONG! Back to the drawing board on this "innovation."
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September 6, 2010

ITIL Version 3 - Serving Customers Like A Fine Restaurant

This is not a framework or vendor endorsement, but I liked this simple video explaining ITIL version 3.

It explains the five key IT service cycles by comparing them to business services in a restaurant, as follows:

1) Strategy to headquarters creating restaurant theming
2) Design to chefs developing the restaurant menu (to meet customer needs)
3) Transitions to cooks running the restaurant kitchen (reliably)
4) Operations to waiters/waitresses delivering services (and owning customer satisfaction)
5) Service Improvement to the maitre d' ensuring quality standards

The video is a little quirky in the way it cycles back and forth between ITIL and the restaurant, but overall I think the analogy works!


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January 17, 2010

A Winner Goes the Extra Mile

I recently came across this poem called "A Winner’s Attitude." I don’t know who the author is, but I really like the poem. The poem has valuable leadership lessons, especially when it comes to serving our customers in earnest, overcoming challenges and obstacles, and always striving for betterment and growth. Hope you enjoy it as I did.
___________________________________________

A Winner's Attitude

A winner always has a program.
A loser always has an excuse.

A winner says, "Let me do it for you."
A loser says, "That's not my job."

A winner sees an answer for every problem.
A loser sees a problem for every answer.

A winner says, "It may be difficult, but it's possible."
A loser say, "It may be possible, but it's too difficult."

A winner listens.
A loser just waits until it's his turn to talk.

When a winner makes a mistake, he says, "I was wrong."
When a loser makes a mistake, he says, "It wasn't my fault."

A winner says, "I'm good, but not as good as I could be."
A loser says, "I'm not as bad as a lot of other people."

A winner feels responsible for more than his job.
A loser says, "I just work here."

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December 13, 2009

It's the Customer, Not the Technology, Stupid

Two of the finest customer service companies these days are Amazon and Apple. Amazon with free shipping and generous return policy for just about any reason is amazing in their no nonsense customer-service orientation—they inspire virtually complete customer trust. And Apple with their try it, you’ll like it stores full of computers, iPhones, and iPods, as well as their extended product warranties, training classes on products and awesome service desks is just another great customer shopping experience.

We need more of these positive customer experiences:

· Products—products should be true quality through and through (not the shoddy stuff made on the cheap to maximize profit and minimize customer satisfaction).

· Commitment—companies stand by their products with hassle-free money back guarantees (forget the 15% restocking fee, the mandatory return authorization number, and the 4-6 weeks to get your money back).

· Service—customer service has got to be easy to access and quick to resolve problems (banish the cold and calculating automated calling systems with the loop-de-loop dialing—“dial 1 if you want to jump out of a window!”—and where routine service problems are resolved without having to escalate numerous levels to get a supervisor only to then get accidentally disconnected and have to start all over again; oh, and did I forget having to give your basic information over 3 times to each service rep you speak with).

Aside from these basics, we need new ways to improve customer experiences to give the customer an absolutely satisfying experience.

In this regard, I loved the recent commentary by Steve Kelman in Federal Computer Week entitled Customer service Tips From Developing Countries, where some simple yet novel customer service innovations were identified, as follows:

· Chinese Passport Control and Customs provides a kiosk for passengers to “report on their travel experience by pressing a smiley face or a frowning face.” Whoola instant feedback!

· Saudi Arabia ATM Machines, while withdrawing money “offered an option of paying parking fines and some government license fees.” That couldn’t be simpler and quicker.

· Singapore Passport Control “placed a bowl of candy at the counter.” A tiny gesture that goes a long way.

From a simple smiley/frowny face feedback mechanism to a candy bowl as a way to say thank you; it is not rocket-science to be kind, gentle, and caring for customers—most of the time, it’s the basic manners your mother taught you.

In technology, these customer services lessons are especially apropos, since it is easy to get enmeshed in the technology and forget the people and processes that we are supporting. (Or to put it in another way, “it’s the customer, not the technology, stupid!”)


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November 21, 2009

Learning from Steve Jobs, CEO of the Decade

Fortune Magazine (23 November 2009) named Steve Jobs of Apple, the CEO of the decade.

Steve Jobs’ unveiled his “digital lifestyle” strategy in 2000 when Apple was worth about $5 billion. Now almost a decade later, Apple is worth about $170 billion—slightly more than Google. Apple has revolutionized the markets for music, movies, mobile telephones, as well as computing.

Steve Jobs embodies User-centric leadership in every way:

Customer is #1—Apple’s products satisfy customers. “He may not pay attention to customer research, but he works slavishly to make products customers will buy.” There is intuitiveness to Steve Jobs’ understanding of people and technology. He knows what customers want even if they don’t or can’t articulate it and he designs the technology around the customer. Think iPhone, iPod, and Mac—they are some of the easiest and most customer friendly technologies out there; hence 100,000 applications for the iPhone, 73% of the MP3 player market, and some of the best PCs on the market today.

Innovation is key—Apple is consistently ahead of the curve. Their products are leaders, not follower-copycats. Despite losing the PC wars to Microsoft Windows, the Mac operating system, functionality, and design has been the one setting the standard for ease of use, speed, and security. The iTunes/iPod completely upended the music and movie industry, and the iPhone is the envy of just about every professional and consumer out there who doesn’t yet own one.

Holistic Solutions Delivery—Steve Jobs delivers a comprehensive solution’s architecture for the customer, and it shows with his merging of hardware, software, and service solutions. For example, “over the course of 2001…Apple launched iTunes music software (in January), the Mac OS X operating system (March), the first Apple retail stores (May), and the first iPod (November).” In 2002, Jobs told Time, “We’re the only company that owns the whole widget—the hardware, the software, and the operating system. We take full responsibility for the customer experience.”

Design Genius—The design of Apple’s products are sheer genius. They are sleek, elegant, compact, mobile, yet user-friendly—they are timeless, and pieces such as the G4 Cube have actually been showcased in The Museum of Modern Art and The Digital Design Museum. Even the Apple store in Manhattan with its winding glass staircases and cube entrance is a tourist destination in NYC.

Big Picture, Little Picture—Jobs is a master of balancing the strategic and tactical aspects of product execution. Jobs set the vision, but is also involved in the execution. “He’s involved in details you wouldn’t think a CEO would be involved in.” Apple is his passion and his desire for virtual perfection comes across the spectrum of both product and service from the company.

Mastery of the Message—he rehearses over and over every line he and others utter in public about Apple.” And it’s not only the contents of the message, but also the timing. Jobs knows how to keep a product launch secret until just the right moment. MacWorld, for example, has been used to strategically communicate the launch of new products, and this has kept both Apple fans and competitors closely tuned to these events.

Steve Jobs is a true model of leadership excellence due in no small measure to his relentless pursuit comprehensive product solutions based on innovation, design excellence, and customer service excellence.

Great Jobs!


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May 1, 2009

Customer Service Will Always Be Goal #1

Too many organizations espouse good service, but very few actually excel and deliver on the promise.

However, one company is so good at it that it serves as the role model for just about all others--that company is The Four Seasons.

The Wall Street Journal, 29 April 2009 reviewed the book “Four Seasons” by Isadore Sharp, the luxury hotel’s founder.

Here are some things that I learned about customer service from this:

- Customer Service means reliability—“a policy of consistently high standards.” At Four Seasons, anyone who has visited the chain around the world [83 hotels in 35 countries]…can attest to its reliability. To be reliable, customer service is not just raising and holding the bar high-- having high standards for quality service--but this must be institutionalized through policy and delivered consistently—over and over again. You can’t have a bad day when executing on customer service. Fantastic customer service has to always be there, period!

For The Total CIO, this type of reliability means that we don’t focus on technology per se, but rather on the customer’s mission requirements and how we can consistently deliver on those in a sound, secure, and cost-effective manner. CIO leaders establish high standards for customer service through regular performance plans, measures and service level agreements. Reliable customer service is more than a concept; it’s a way of relating to the customer in every interaction to consistently exceed expectations.

- Customer Service means innovation—“The things we take for granted now during our hotel stays-comfortable beds, fluffy towels, lighted make-up mirrors, fancy toiletries, and hair dryers-made their first appearances at the Four Seasons…likewise for European-style concierge and Japanese-style breakfast menus, in-hotel spas, and the possibility of residence and time-share units.”

For The Total CIO, technology changes so fast, that innovation is basically our middle name. We never rest on our laurels. We are always on the lookout for the next great thing to deliver on the mission, to achieve strategic competitive, to perform more cost effectively and efficiently.  Advantage. Moreover, we reward and recognize customer service excellence and innovation.

- Customer Service means valuing people—“Follow the golden rule. Workers are vital assets who should be treated accordingly…at the Four Seasons, those who might otherwise be considered the most expendable ‘had to come first,’ because they were the ones who could make or break a five-star service reputation.”

For The Total CIO, people are at the center of technology delivery. We plan, design, develop, and deploy technologies with people always in mind—front and center. If a technology is not “user-centric”, we can’t employ it and don’t want it—it’s a waste of time and money and generally speaking a bad IT investment. Moreover, we deliver technology through a highly trained, motivated, empowered and accountable workforce. We establish a culture of customer service and we reward and recognize people for excellence.

- Customer Service means solving problems—“Turning the top-down management philosophy on its head, Mr. Sharp authorized every Four Seasons employee to solve service problems as they arose to remedy failures on the spot.”

For The Total CIO, leadership is fundamental, management is important, and staff execution is vital. It is the frontline staff that knows the customer pain points and can often come up with the best suggestions to solve them. Even more importantly, the IT customer service representatives (help desk, desktop support, application developers, project managers, and so on) need to “own the customer” and see every customer problem through to resolution. Yes, it’s nice to empathize with the customer, but the customers need to have their problems fixed, their issues resolved and their requirements met.

The Total CIO will make these customer service definitions his and his organization’s modus operandi.


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March 27, 2009

Save A Penny, Lose a Customer

It’s amazing to me that organizations and people still miss the basic premise that underlies any successful business and that is good customer service.

Indeed all the innovation and technology in the world will not make up for the common business sense in putting the customer first.

Whatever happened to the customer is always right?

One of the most frustrating customer experiences is often associated with how companies routinely mishandle customer calls. We all know the shtick all too well by now:

  • The phone rings off the hook in the customer call center—why isn’t anyone answering?
  • If the phone is answered, very likely, the call is handled by automated call telephony—and you end up in a maze of instructions and options from which quite frankly, you may never return.
  • If you are so fortunate as to actually get to a real-live customer service representative, they won’t identify themselves—except with a first name--or provide a direct contact number to reach them should you get disconnected or need to follow up with them.
  • If you can identify who you are actually dealing with, you may quickly realize that you are talking to someone who is likely resident in another hemisphere and you may be unable to understand or effectively communicate with the company representative on the other end of the line (whose primary language is not your own).
  • If you are able to actually communicate with each other—what did you say?—you are likely to hear all sorts of gobbley-gook policies and excuses for why they can’t resolve your service request, need or complaint.
  • If you argue, raise your voice in frustration or ask to speak to a supervisor, you are likely to get “accidently” disconnected and you go back to go and cannot collect $200.
  • If you manage to get to a supervisor, the supervisor may throw you a bone and give you a partial win or more likely will stand firm and tell you to “talk to the hand, cause the face ain’t home.”
  • If you threaten to take your business elsewhere, you will have to place a call to another customer call center and start from step one all over again.

This is NOT a customer-centric enterprise architecture for an organization—it is almost the furthest thing from it aside from going out and actually paying customers to go use a competitor’s products or services instead of their own. This customer service-NOT approach is the death of our national competitiveness and represents the end of life for an organization and any individual employing it.

The Wall Street Journal, 24 March 2009, has a review on a book titled “Your Call Is (not that) Important to Us” by Emily Yellin who hits this right on the head.

“It is one of the most maddening ordeals of modern life. You are having problems with a product or service, and so (fool that you are) you call a customer help number, only to be greeted by a cheerfully inept or robotically indifferent voice at the end of the line.”

So why do organizations behave in this self-defeating, anti-customer fashion?

It’s called pinching pennies. Or penny wise and dollar foolish.

“Companies naturally try to keep costs down, sometimes rating the performance of their harried call-center workers by the number of calls they log, not by how well they resolve callers’ complaints…or companies move their help desks to countries where costs are low but accents are impenetrable. Or they switch to computer systems that leave already unhappy customer shouting their responses at an unresponsive machine.”

This is emblematic of the short-term focus on quarterly profits and share price at the expense of the customer satisfaction, service, and long term retention goals. The result: piss-poor customer service!

That’s why as enterprise architects, we need to ALWAYS start, end and follow every point in between with the customer needs. So in terms of EA what can we do to improve service delivery?

  • Focus on organizational performance goals and put customer satisfaction and retention at the top of those goals.
  • Align technology solutions and investments to deliver on the customer experience.
  • Don’t automate the customer out of the equation by removing genuine listening, empathy, and problem resolution.
  • Add a human-capital perspective to enterprise architecture frameworks to focus on best practices, targets, and transition plans to manage both the humans that work in the organization and to satisfy the human beings who are our customers. Human-to-Human interface!

Generally speaking, technology is known as an enabler for efficiency and effectiveness. Let it be first and foremost a means to better customer experiences. That is what is going to keep them coming back for more or heading to the exits.


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December 21, 2008

Engineering Employee Productivity and Enterprise Architecture

Ever since (and realistically way before) Fredrick Taylor’s time and motion studies, employers have looked to “engineer” the way employees do their work to make them more efficient and effective.
The Wall Street Journal, 17 November 2008, reports that “Stores Count Seconds to Trim Labor Costs.”
Companies “break down tasks such as working a cash register into quantifiable units and devise standard times to complete them, called ‘engineered labor standards.’ Then it writes software to help clients keep watch over employees.”
So for example, in some retailers, “A clock starts ticking the instant he scans a customer’s first item, and it doesn’t shut off until his register spits out a receipt.”
Employees who don’t meet performance standards (e.g. they fall below 95%), get called into for counseling, training, and “various alternatives” (i.e. firing).
The result is “everybody is under stress.”
So, is this workforce optimization or micromanagement? Is this helping employees learn do a better job or is this just scare tactics geting them under the management whip?
Some employers are claiming improved productivity and cost savings:
One retailer, for example, claims saving $15,000 in labor costs across 34 stores for every one second shaved from the checkout process.
But others are finding that customer service and employee morale is suffering:
Check clerks are not as friendly. They don’t chat with customers during checkout. Cashiers “avoid eye contact with shoppers and generally hurry along older or infirm customers who might take longer to unload carts and count money.”
Additionally, as another cashier put it, “when you’re afraid you’re going to lose your job, you make more mistakes.”
Other employees are gaming the system to circumvent the rigid performance measures and for example, improving their time by hitting the suspend button to stop the clock more than they are supposed to—it is meant only for use when remotely scanning bulky merchandise.
The other problem with the engineered labor standards is that they often don’t take into account the “x factors”—the things that can go wrong that adversely affect your performance times. Some examples: customers who don’t have enough cash or those “digging through a purse,” credit cards that don’t swipe, “an item with no price or item number,” customers who forget something and go back or those that ask for an item located at the other end of the store.
It seems obvious that while we need to measure performance, we need to make sure that we measure that right things and in the right way.
What good is measuring pure speed of transactions to “boost efficiency” if at the same time we
  1. alienate our customers with poor service or
  2. harm employee morale, integrity and retention with exacting, inflexible, and onerous measurements?
Like all sound enterprise architecture efforts, we need to make sure that they are reasonable, balanced, and take into account not just technology, but people, and process.
In this case, we need to ensure the process is customer service driven and the employees are treated fairly and humanly. Without these, the productivity savings of engineered labor standards will be more than offset over time by the negative effects to our customers and employees.

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September 26, 2008

Treating the Root Cause and Enterprise Architecture

All too often, when there are issues in our organizations, we treat the symptoms instead of the problems. Just like this is bad medicine in treating illness and healing patients, so too it is ineffective in architecting our organizations.

The Wall Street Journal, 22 September 2008, has an article entitled “Making the Most of Customer Complaints.”

The quick-fix problem resolution:

"Companies have customer service sort out the immediate problem, offer an apology or some compensation, then assume all is well. This approach does nothing to address the underlying problem, practically guaranteeing similar failures and complaints.”

This “has enormous impact on customer satisfaction, repeat business, and ultimately profits and growth.”

The three actors and their conflicting approaches:

The customer—“can be left feeling their problem was not addressed seriously, even when they’ve received some form of compensation.” Customers are fairness-minded; they want to know why the problem occurred and that it will not happen again.

The service rep—“can start seeing complaining customers as the enemy, even though they point out flaws that need fixing.” Customer service reps are yelled at and abused by frustrated and angry customers who hold the service reps responsible for failures that are out of their control.

The managers—“can feel pressure to limit flows of critical customer comments, even though acting on the information will improve efficiency and profits.” Managers need to learn from failures and reengineer the processes to correct problems, but instead they fear reporting negative customer satisfaction and shun reporting these. In essence, they are taught to just make the problem go away!

The result:

“Fewer than 8% of the 60 organizations” in the wall Street Journal study did well integrating these actors and their perspectives to resolve problems at their root cause.

The focus unfortunately is on short term results instead of architecting long term success.

“Our experience with managers interested in improving service recovery indicates that most hope for a quick fix…but quick fixes only treat the symptoms of underlying problems. Real resolutions should involve closer integration among the three stakeholders, such as gathering more information from customers and sharing it throughout the company, and adopting new structures and practices that make it easier to spot problems and fix them.

There is an important enterprise architecture lesson here:

While executive management often want to achieve a quick turnaround and show results ASAP, and getting the low hanging fruit is often quite tempting, it is not often going to lead to substantive improvement in our organizations without a commitment and plan to address root cause.

Sure, in architecting the organization, we need to start somewhere, show progress, and continuously build on initial success (i.e. it’s an evolutionary process). However, there must be a long term plan/architecture that deals with genuine, deep-seated organizational issues, improves our underlying processes and their technology enablement, and leads to fundamental growth and enterprise maturation. A quick fix just will not do!


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April 30, 2008

Customer Experience Management and Enterprise Architecture

Customer service is so important. We need to architect it in every fiber of the organization. Good customer service is a critical differentiator for organizations and it offers a strategic competitive advantage to those enterprises that embrace it and make it central to their product offering.

DM Review, 25 April 2008, reports that “companies are under unprecedented pressure to optimize the customer experience.”

Customer Experience Management (CEM) is emerging as an increasingly important tool. CEM is the practice of actively listening to customers, analyzing what they are saying to make better business decisions and measuring the impact of those decisions to drive organizational performance and loyalty.”

CEM information should be considered an essential component of the business perspective of the enterprise architecture. CEM should be incorporated into EA planning and governance to accelerate and improve enterprise decision making such as “tailoring products to customer desires to save investment in unwanted innovations.” The overall goal is to provide the customer with world-class service and an overall high satisfaction interaction.

How are organizations achieving CEM?

  1. Chief Customer Officer (CCO)—establishing executive positions that are focused on the customer experience and on earning high marks for customer satisfaction.
  2. Measurement—“putting tools in place that measure the customer experience” and provide feedback to the organization. These tools include customer satisfactions surveys, focus groups, blogs, point-of-sale data/trends, and customer relationship management (CRM) systems that “hold valuable comments from emails, support cases, and online conversations between contact centers and customers.”
  3. Process improvement—using customer feedback and measurement to tune processes, streamline them, and eliminate defects.

Unfortunately, “still at many companies today, the potential of CEM remains untapped.” It behooves the enterprise architects to help drive CEM as a major source of business intelligence and for use in enterprise architecture planning and governance for new investments.

Ultimately, just like the EA end-user is the final arbiter for driving the development of the EA information products (so they are useful and usable), so too the customer is king when it comes to influencing the organizations’ future direction for product, process, technology, and service. If we’re not satisfying our customers, they will find a better supplier to give their business to.


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