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What's Love Got To Do With It? Chapter 2

Gerald Bricker — Mon, 20 Feb 2012 19:00:46 GMT

Gerald Bricker

In my last post I wrote about the importance of having your customers or clients in love with your business. The next question would then be “How do you get customers to love your business?”

The challenge may seem complex. There are many competitive companies, products and services for people to choose from. Sales and marketing efforts aimed at closing sales are beefed up regularly. Innovative new products and services are introduced with great fanfare and promotion. What can a business do to keep customers loyal?

It’s no secret. Happy and motivated employees are the key to loyal customers. Bill Marriott, CEO of the Marriott hotel chain said, “Your employees will treat your customers the same way that they are treated.”

Recently the Consumer Reports National Research Center surveyed 55,000 people and asked them to rate their shopping experiences at major retailers such as Kohl’s, Sears, Walmart and Costco. The only retailer out of ten major chains that received an “Outstanding” rating was Costco.

While there were a number of reasons cited for the ratings such as quality, selection and value, one of the biggest reasons for negative ratings was the check-out experience. This is where retailers’ employees most often come in contact with customers. According to GLASSDOOR.COM Costco rates number 23 among the best companies to work for according to its employees. It is also the highest rated when compared to the major retailers studied by Consumer Reports.

It should be no secret that a person who feels good about the company they work for will have a positive approach to their work. Their positive attitude toward customers or clients will be reflected in how the customer feels about their interaction with those employees and, therefore, with the company they work for.

Whatever a business may want from its relationship with its customers it must also give its employees. Therefore, management has a challenge and a duty to create a work environment in which people feel positive and appreciated for their work.

“What’s Love Got To Do With It?”

Gerald Bricker — Mon, 06 Feb 2012 19:20:27 GMT

This well-known song title poses an important question for company owners and managers. When it comes to your customers or clients, what does their love for your company, product or service have to do with your business?

Most people do not think of their customers as someone who loves them. That can be a serious problem. With the economic challenges that businesses face today and the competitive arena of most businesses, the lack of an emotional connection between customers and the business can mean that those customers are here today and gone tomorrow.

My personal experiences include a bank that charged me fees for my business checking, even though I was a 30-year customer and qualified for free personal checking, and a financial advisor who could not help me one day because she was “just too busy” are cases where I “fell out of love” with them. In both cases I found a new “love.”

Research has shown that 90 to 95% of buying decisions are made at the subconscious level. In other words, emotion plays a major role in decisions to buy. The buying decision may undergo some analysis or rationalization but that typically comes after the subconscious decision is already made.

In my experience even B2B buying decisions undergo emotional influence. The people who are involved will tend to favor the business with whose main representatives they have a strong connection. B2B buying decisions involve a longer buying/selling cycle. This allows for relationships to play a major role as the buying decision is debated, analyzed and negotiated to the close.

No matter what kind of promotional means are used to attract new customers the fact is that decisions are made by people. When a business loses the relationship with their clients it will soon lose the clients. Every point of contact with a customer or client forms, or destroys, a relationship with a client. From the person who answers the telephone to the person who makes the delivery, each of them has the responsibility to do their best to build a relationship and create “love” for the business.

Are You Scared to Plan?

Gerald Bricker — Thu, 05 Jan 2012 18:43:46 GMT

These are some of the scariest words in business! Really! Recently I have been told by several successful, intelligent and hard-working executives that strategic planning scares them. Another told me he does not believe that business owners actually do strategic planning. So how are they successful?

The thing is, whether they have a written strategic plan or not they certainly have a plan, if only in their mind. Whatever a business owner or senior executive does to make the business succeed reflects their concept of the step (or steps) they need to take to make it happen. That is their strategic thinking in action.

Would you get into your car and start driving without knowing where you’re going and how you’re going to get there?

The strategic plan for a business is simple to define but not easy to execute. Perhaps that is one reason that it scares people. It usually means they have to change something. Change is hard especially if the business is doing well. Why spend valuable time and money to make change when things are good. The reality is, everything around them is changing, especially customers and competitors.

It is hard work to put together a sales and profit forecast. A sales and profit forecast is made up of assumptions to begin with. So risk assumptions made. Dan Gilbert, CEO of Quicken Loans and about eight other companies, says “The numbers don’t lead, they follow.” In other words, forecasts must be based on actions, not assumptions. Those actions require a plan based on strategic thinking.

Strategic planning is a way of setting the future path of the company and determining what resources are needed to make it happen. The future and success of the company is based on the decisions that are made and the goals that management commits the organization to achieve.

Without a clear path the company will miss opportunities and lose its competitive edge. The risks of leaving the future of the company to chance are far greater than those of creating and executing a plan that can be managed with clear purpose and effort.

Hopes and Dreams Abound: Now What?

Gerald Bricker — Thu, 08 Dec 2011 21:26:58 GMT

The holiday season ends one year and begins another. With it come feelings of hope and dreams for the future. These are common themes this time of year, but why only this time of year? Are people not hopeful all year round? Yet they focus more on hope this time of year. Perhaps it’s because they take the time to dream about new accomplishments in the coming year.

For business owners and managers this is the time of year when budgets are planned for the next fiscal cycle. Much time is spent forecasting revenues and profit. Some will also create new sales and marketing plans for the coming year. Yet many seem to focus on the financial aspects of planning as a priority. That seems backward. Can a football coach decide the score before he makes his game plan? Dan Gilbert, CEO of Quicken Loans said “The numbers don’t lead, they follow.” Forecasting is a necessary planning tool. But results come from action plans that are tied to goals, not forecasts.

How are hopes and dreams connected to business planning? They are part of the company strategic plan. It begins with the owner’s vision. What will the business become? What will it achieve? It is a statement about the future. It is a dream. Now what? What must be done to move the business towards reaching its vision. Usually, this means setting near term goals, that is, for the next 12 to 24 months. Some call that the Mission and the goals must be mission critical.

After the mission critical goals are set the action plans that will lead to goal achievement must be created. Without the vision, mission, critical goals and action plans the results for the coming year are left to chance and the people are left to try to succeed without knowing what is expected of them. That is a risky way to run a business. Consider a strategic plan that contains these elements to realize your hopes and dreams. Happy New Year!

Be The "Guys" Who Show Up

Gerald Bricker — Tue, 15 Nov 2011 17:08:19 GMT

A friend told me a story recently that speaks to how to build a business and create customer loyalty. Her husband and his brother decided to start a home improvement business. In that region, there were a number of competitors. Things began slowly and after a few months they struggled to get contracts.

After some time the brothers decided that they needed to find a way to stand out, to differentiate themselves from the other contractors. They began to ask people “What is the most common complaint you have in dealing with home improvement contractors?” They were told “They don’t show up.” Apparently, in that area many of the contractors were known for making appointments that they did not show up for or showed up very late, as in days later. The brothers decided to be “the guys that show up. “ They made that their slogan and they showed up on time every time they made an appointment. And their business began to grow.

Many blogs, books and articles have been written recently about marketing. Many advise that business owners must find a way to “be remarkable” or “be distinctive” to truly differentiate their business in the crowded and competitive market place. This true story illustrates that finding a way to differentiate your business does not require that you invest time and money in a complex marketing strategy. You simply must understand what customers want that they are not getting and help them to get it.

There is more to the story. In working with some customers they learned that some customers, Seniors, have many small projects they need done that they no longer can, or want to do, like changing furnace filters, etc. So, they adopted another slogan, “No job too small.” The result of their adding these small free services is that these customers give them numerous referrals to their friends and families. This effort to build customer loyalty won them free word of mouth advertising and led to their business growing and becoming more profitable.

Can You Create a Career Path for Employees?

Gerald Bricker — Mon, 24 Oct 2011 18:30:02 GMT

This is a follow up to my October 7 blog "Employees Want to Know: What is My Career Path?"

The key question is "Whose career path is it anyway?" Does a company direct what the dreams of their employees are? Even if the company makes use of the traditional motivational methods, Fear and Incentive, does it manage to determine where an employee may go with their work life 30, or even 10 years in the future? Not likely. There are too many variables in the work environment, business successes and failures and the economy in general for a company to have real control over the career path of its employees. The company can provide opportunities for career growth. But the path of an employee's career is more up to that person than it can ever be up to the company.

What determines the career path of an employee? First, it begins with their dreams. Where do they want to go in their work life? What position, what earnings, what status do they seek to attain? What do they want to achieve? More importantly, what is the true passion of their life, both in Professional and Personal terms?

Second, where do they see themselves today? When you phone someone to ask directions they usually ask you "Where are you?" This point of reference is needed in order to set a new direction. Self-evaluation and self-awareness are needed to determine where a person is in relation to where they want to go.

Third, what are the critical steps that will get them where they want to go. Yogi Berra said "If you don't know where you're going you'll end up someplace else." For career planning it is important to decide what goals you must achieve to help you realize your dreams. Then create action plans to enable you to reach your goals and set priorities to help you manage your time.

Companies, mentors, coaches and educators can help to move people along the path. It is necessary for the individual to set their path and follow their dreams.

Employees Want to Know: What is My Career Path?

Gerald Bricker — Fri, 07 Oct 2011 20:06:17 GMT

During the last 12 years of my corporate career my sales team was a key part of a company that grew an average of more than 25% per year. Needless to say the organization grew at a rapid pace along with the sales revenues. We hired people and grew the number of employees at a pace of about 10% a year. And, there was a lot of interest on the part of our employees to grow with the organization. A frequent question directed to me was “What is my career path?”

It was not always clear what really motivated the employee asking the question. Was it about seeking input to create their career path? Was it about making more money? Was it about achieving greater status? Or, was it all of the above? The employee seldom seemed to understand the real importance of this question for their future.

My response to this question was to ask two questions: “Where do you want to go? What do you want to become?” I wanted them to know that their career path was up to them, and, that I would do whatever I could to help them. First they would have to set a goal and then I would help them to find the path to achieve their goal.

I spent some time explaining to the employee that any business situation is dynamic and ever changing so it would be necessary to understand that a career path must be a flexible plan. Most companies’ priorities are their bottom lines. Employee careers are more a function of the goals and aspirations of the employee than those of the company they work for. I told them that, in most companies, managers typically have only a little to do with the career path of the employees. They are simply not equipped or expected by the company to manage employees’ career paths. The employee has to demonstrate initiative and interest in a path they have chosen.

With technology and the global business environment changing so rapidaly these days the answer to this question is critical, difficult to answer and, most importantly, it's up to the individual. Next time, I will offer an approach to consider.

Excuse Our Customer Service

Gerald Bricker — Mon, 15 Aug 2011 14:22:58 GMT

What can a business owner do? The economy drove down revenues. Costs had to be cut. The staff had to be reduced. Now things are beginning to turn around. Customers are spending again. Business is turning up. So, when is it time to begin hiring again? Should it be as the revenues grow, or when customers begin to complain about service?

A recent experience with a local home service organization made it clear that the business owner chose the latter. The people who worked on our home delivered what was, in effect, Class C service, even though the owner was charging Class A pricing (based on competitive quoting.) The question is, was waiting for customer complaints the right decision?

Business competition, today, is such that customers can easily find competitive organizations to service their needs. A business loses customers quickly if it does not deliver first rate service. In my case, the business owner wrote a letter of apology. In his letter he chose to excuse the poor customer service by explaining that he cut manpower due to the poor economy and he has now decided to add more field supervision. That, of course, is too late for me. But, is it really the solution to the problem?

When a company is in the service business it is critical that service be the best, period. Bill Marriott, CEO of Marriott Hotels, said "Your employees will treat your customers in the same way that they are treated." Perhaps supervision can help to improve service. But, training, motivation and pride in their work are the things that create the best possible service because it is the people doing the work who deliver the service.

If a business owner resorts to excuses customers are not going to be satisfied with the service delivered. Excuses are not the customer's problem or concern. Apologies are acceptable as long as there is follow up and correction of the problem. However, it is far better to plan and execute exceptional customer service to please the customer in the first place.

What Comes First, Grow or Plan?

Gerald Bricker — Thu, 14 Jul 2011 00:17:55 GMT

If you're running a business what should you focus on first, growth or planning? Many small to mid-sized companies focus on growth and for many of them it makes sense to do so. But what if your company does not have a strategic business plan put together? Does it make sense to charge ahead without a plan? Perhaps. Would you get in your car and head off on vacation without first knowing where you want to go?

Some of the business owners that I have worked with in the past two difficult years have told me that they want to grow their business. Of course, they want to. Revenues have been down for most businesses during these tough times. When I asked them how they would grow, how they would support their customers or clients and how they would build their organization to support the higher revenue levels some of them did not have an answer.

Some business people believe that things will return to normal if they can just get revenues back to the level of two years ago. Then they can grow and thrive from there. The problem is, a lot has changed in recent years in terms of how business is done and what customers expect from you. If your business is not prepared to offer a unique selling proposition, exceptional customer service and a strong personal relationship your competition will eat your lunch.

What is needed to get your business refocused on success is a clear vision, a strong mission with well thought-out goals and a plan to meet those goals. "Our goals can only be achieved through a vehicel of a plan, in which we must fervently beileve and upon which we must vigorously act. There is not other route to success." -Pable Picasso.

For a business to succeed it must be driven by management, supported by employees and focused on customers. If the employees do not understand the vision they will have difficulty doing the work necessary to help take the business in the right direction.

The vision, mission and goals are the key components of a strategic business plan. A well thought-out plan, with clear goals and a plan to achieve those goals may seem like a daunting task. However, most small to mid-sized companies have enough knowledge and brain power to create a plan that can move them forward with a reasonable invest of resources.

Survival of the Fittest Organization?

Gerald Bricker — Fri, 27 May 2011 20:45:37 GMT

One of the basic laws of nature is (commonly) called "survival of the fittest." The idea being that the organisms that are weak or unable to fend for themselves will not survive and over the long term and only the fittest of the species will survive.

Today, the same idea is sometimes applied organizations, especially those that are set up to be profit generators. This may be the way things should be. The question is "What is a fit organization?" Is it one that dominates its segment by striving to always offer the lowest prices? Is it one that ranks highest in customer satisfaction according to a well-known national customer survey organization. Is it one that holds the number one market share in one of the major consumer markets in the USA? Or, is it one that dominates an industrial supplier market by signing major long term contracts that enable it to stop competition from even being considered as a replacement?

In fact, it is none of the examples mentioned above. In the overall business landscape all of those organizations are likely to be replaced at some point in time. The reason I write this is that companies can become strong enough to fend off competition. But many, if not most cannot seem to fend off major shifts in technology or global economic trends.

One interesting situation that is developing now is the dynamic in the automotive industry. The major automotive manufacturers continue to ply their fossil fueled vehicles equipped with relatively low level technology. Meanwhile several brand new car makers are introducing and selling electric vehicles. And, Google, of all companies is seeking government approval in certain states to take to market vehicles without human drivers. What exactly are the current auto makers doing to be prepared to respond to the new consumer trends and the market dynamics in the transportation field?

One begins to wonder if the conventional auto makers are not unlike the makers of steam locomotives were when the first Diesel-electric hybrids were introduced in the early part of the twentieth century. They continue to fight over a market that is beginning to get smaller as consumers shift their interest to alternative technologies and modes of transportation. Another factor is the consumer. There is a trend among young consumers in Japan who do not own automobiles and, in fact, have no interest in owning one. They do not want to pay the every increasing costs of ownership, including the high costs of parking in their big cities. They also prefer to spend their disposable income on more self satisfying items like smartphones, netbooks, etc. The future of this industry will, indeed, be a very interesting dynamic.

What, then, constitutes a fit organization and one that will survive? My view is that it will: 1. Take a long view of the future of society, technology and the economy via a strategic plan; one that looks out at least ten years. 2. Invest in innovation that serves to respond to the long term trends in society. 3. Work to encourage innovation in all that they do, not just in their current products and services.

The makers of steam locomotives were, no doubt, the fittest of the companies making steam locomotives. What good did that do for them when a completely new technology came along and made their product completely irrelevant?

Set Goals for Achievement

Gerald Bricker — Fri, 25 Feb 2011 22:10:00 GMT

Are you good at setting goals but not so good at achieving them? Have you already missed the goals you set for the first month of the year? Why are you good at setting goals but not so good at achieving them?

Many people set goals with the best of intentions. They spend hours putting together SMART goals that are planned to help them to improve their health, increase their income, strengthen their relationships, get that promotion or even find that new job. Before they know it life gets in the way. As John Lennon said, "Life is what happens while you're making plans." Much of the satisfaction with goal setting is that is creates an air of expectation. Like many things the anticipation is nearly as satisfying as the actual event.

Perhaps the reason for not meeting your goals is that, like many people, you learned how to set SMART goals but not how to achieve your goals. One key reason this happens is that "life happens" and before you know it you failed to achieve your goals. Your time management does not help you to achieve what is really important to you.

Remember that the 'T' in SMART is "Time based". The purpose for this is to focus your efforts on achieving what you want when you want it. Did you input your goal plans onto your planner, calendar or e-device calendar? If not the days and weeks went by and you neglected your goals. If that happened, don't worry you can always adjust your goals and re-engage yourself in achieving them.

It's better to set goals, even if you don't achieve them all, than not to. Setting goals gives a focus to your time and your actions. Remember, many Olympic athletes work for years to be able to compete in the Games. yet many fail to win a medal. However, they improve their skills and many of them reach the pinnacle of performance in their chosen fields so that they can become coaches and experts in their chosen fields.

Get the Year Started Off Right

Gerald Bricker — Mon, 24 Jan 2011 13:46:00 GMT

It's the start of a new year. How do you start the year off right? One great way is to prepare for success. Success means many things to many people. At the end of the day it is the accomplishment of your dreams and goals. It takes effort on your part combined with confidence in yourself and a balanced approach to your life.

Start by checking up on last year. Did you meet your goals? If not, why not? Were they connected to your overall purpose or vision? Take some time to evaluate your purpose. What do you want to become...where do you want to go... what do you want to accomplish with your life, both professionally and in your personal life?

If you are clear about your purpose then what do you need to accomplish this year that will help you to fulfill your purpose? Consider both short term goals, those you need to accomplish in the next one, three or six months, and long term goals, those that you need to accomplish in the next 12 to 24 months?

Check your Personal as well as Professional goals. Keep life in balance and avoid focusing on your weaknesses, unless they are holding you back. Peter Drucker always emphasized that managers and people must focus on their strengths in order to maximize their performance.

Why set goals? The famous American philosopher, Yogi Berra, said "If you don't know where you're going you'll probably end up someplace else." Determine where you want to go, what you want to become or what you want to have and set goals that will help you to get there (them).

Now, get busy and do what you must to accomplish your goals. Make sure that your goals are yours, that they are written and that they are in harmony with who you are and with your overall vision or purpose for your life. And, have a great year!

Principles of Abundant Companies

Gerald Bricker — Mon, 24 Jan 2011 13:43:00 GMT

Some readers of this blog have requested a PDF of the list of the "7 Principles of Abundant Companies" as adapted from "The Why of Work" by David Ulrich. If I managed it correctly it will be posted with this blog.

7_Principles_of_Abundant_Organizations_(2).pdf.

Customer Loyalty: The Experience is What Matters

Gerald Bricker — Sat, 18 Dec 2010 18:56:00 GMT

Many companies today are focused on the “experience” their customers have in doing business with them. Marketing people report that a positive “experience”, not just the product or service, is the expectation that customers have today and expectations must be met. Why is this important?

A focus on the customer “experience” is sound business strategy if approached in the right way. Customers must come away from their “experience” with a perception that their expectations were more than met. The key objective is to build “loyal” customers by creating an emotional connection between them and the company. “Loyal” customers will generate “word of mouth” advertising, repeat business and, often, an opportunity to grow revenue with premium pricing. The results will include revenue growth, lower marketing and sales costs and higher profits.

Every connection between the customer and the company must be focused on creating “loyal” customers. A customer loyalty strategy is needed and can be an important part of a company strategic plan. Action plans that support building customer loyalty provide excellent returns on the investment.

Leadership Takes Many Forms

Gerald Bricker — Mon, 20 Sep 2010 00:55:00 GMT

Leadership is often discussed and analyzed by examining people who have held very prominent positions of leadership. US Presidents and corporate CEOs are often the subject of these studies. In the case of US Presidents considerable time passes before history makes its full judgement on their legacies as leaders. Everyone agrees on the leadership skills of Washington and Lincoln. In the case of Reagan, some have come to appreciate that he did have some remarkable leadership skills.

Two Presidents for whom the the term leader (while in office) was a subject for much debate were Eisenhower and Carter. Eisenhower was called the "Hidden Hand President" in the book by Greenstein because he led so much by his personal style of communication. He was the first President to hold televised press conferences. But, he was not known for public expressions of leadership as much as for behind the scenes activities to get things done. Among his many accomplishments were the Interstate Highway System, integration of the armed forces and he held inflation to near zero for his two terms in office.

Many people know that Eisenhower was named the Supreme Allied Commander for the joint forces that planned and executed the D-Day invasion at Normandy to liberate Europe during WWII. He did not have the battle record of Patton or the English Commander Montgomery. What he did have was the ability to pull together a team of officers from four countries to lead a successful invasion.

Carter is more controversial in the leadership discussion. But, he did lead effectively. He was able to get more of his legislation passed than any modern President following Johnson. He also succeeded in cutting America's oil imports during his Presidency. Likely he is remembered more for his battles with the Washington elite than many other things that he accomplished.

While more knowledgable political analysts may have argument with these statements on the two Presidents mentioned. There is one point that should not be missed. Leadership is about results. When people set out to get something done in high level positions it matters not how they went about getting things done. It matters what they did with their opportunity to be leaders and to solve the problems that faced them at the time.

Leadership is often defined in many terms and with long dissertations on how the leader effected his or her results. However, this focus on the person in charge and their characteristics can lead to a misunderstanding of the true meaning of leadership. When a true leader takes charge and gets the intended results their approach can take many forms. The important factor that must be considered is the results that are obtained. When a leader sets out clear goals and helps their team members to set their own goals that lead to success for all that leader has demonstrated true leadership.

Whether Eisenhower or Carter were great speakers, had tremendous personal charisma, or presented themselves as starts in front of the TV cameras did not matter in the final analysis. Their leadership took different forms but, as Presidents they were able to complete significant programs for our country. In the end is that now what we, as voters, really want?

Work-Life Balance: You Need It More than Ever

Gerald Bricker — Mon, 09 Aug 2010 01:16:40 GMT

Work-life balance. Is it really something you need? Maybe more than you think. In the new economy we are all adjusting to individual responsibilities that are growing and most organizations are asking everyone to do more than ever before. A good friend currently holds a job at one of the Detroit 3 auto companies where he and one recent college graduate are doing the work of a department that once included the manager and five people. He previously worked for a small company and became used to carrying quite a bit of responsibility on his plate. The other department managers who were there before had to go through quite an adjustment shrinking their teams by one half to two thirds.

At the same time most of these people have families and personal lives that existed before and, hopefully, will continue to be a part of them. What happened to this other half of their work-life pairing? Did it suffer a reduction in attention as their work duties were expanded? It is very likely that it did. Some would argue that they should all be thankful that they are still employed. Who can argue with that? Nevertheless we are all human. The work-life pairing continues to exist. What, if anything, can be done to find a balance?

This issue must be dealt with at all levels of an organization. Recently the Association of Executive Search Consultants (AESC) published results of a survey of 800 senior executives. The results showed that 55% of the senior executives surveyed did not feel that they had a work-life balance. Further, they responded that 82% of their companies did not have a program to assist them with a work-life balance. Clearly, there is pressure at all levels of most organizations on both sides of the work-life pairing.

With electronic communications what they are a busy executive can be engaged in work related activities 24/7. People are under constant pressure from families to be engaged with them as well. Only distance can mitigate this. However, even families have their electronic tethers (texting, etc.) that help them to try to keep engaged. What is to be done to manage a balance in the work-life scenario?

Whether consciously or unconsciously people must make choices about their priorities. Some manage to do it without difficulty. Some do not. It is through understanding their goals, both personal and professional, that people can better manage how they choose to maintain a suitable balance.

A personal coach can help you with sorting this all out. Finding an independent connection who will help you think through your challenges, clearly define your strengths, your goals and your priorities can be an effective way to discover where your work-life balance can use some adjustment. Your work-life balance may or may not be of a concern to you. Regardless, it is a factor in your life. Would it not be better to manage this part of your life? Your work and your life will be the better for it.

Trust: The Winning Element in Business

Gerald Bricker — Fri, 30 Jul 2010 13:37:00 GMT

Harvard Business Professor Peter Drucker said, "The function of business is to attract and maintain customers." In my experience working for a Japanese company I learned that attracting and maintaining customers is a high priority for their top management and sales executives. Building and maintaining relationships with customers is something of an art form.

In order to reach the point at which a Japanese business can even begin to make proposals Japanese sales people in business to business activity plan to spend at least three years building a relationship. The reason is very simple, they must build trust with the prospect and demonstrate that they can provide value to the customer. They spend considerable time getting to know their prospects on a personal level. And they understand up front that winning business cannot be a priority until the trust level is high enough for their target customer to begin to ask for their help.

Japanese business people take a long term view of the business relationship. In the West, we view a long term relationship as perhaps a period of five years. For the Japanese time is infinite and relationships are not viewed as long term unless they extend beyond 20 years, at least. Clearly, the Japanese focus on building and maintaining relationships is taken from a different cultural view than that of Western culture. However, this approach explains the dedication and success that Japanese businesses have demonstrated in recent years.

Trust is a valuable commodity in business. Not only is it valuable in the client/customer relationship it is also critical in the company employee relationship. Unfortunately, this is an area where many companies are falling short. A recent article in "Corp!" magazine (www.corpmagazine.com) reports on a 2010 Global Workforce Study by Towers Watson in Michigan. The study data revealed that only 47 per cent of workers think that their leaders are trustworthy. The result is that "employees expectations are falling while their stress levels are rising." The study also revealed that almost 40% of employees "remain either disenchanted or fully disengaged [and so] a large group of people ... are not working up to their potential."

If employees do not trust their management and are disengaged what impact does that have on building the customer relationship? Bill Marriott, CEO, of the Marriott Hotel empire said "Your employees will treat your customers in the way in which they are treated." If employees lack trust in their managers it is highly likely, therefore, that these same people will not place a high priority on building trust with your customers or clients.

In today's highly competitive business environment a lack of trust can have far-reaching effects on building external customer relationships as well as that of internal customer relationships. The challenge, then, is to build trust in order to create an environment of where everyone feels secure in doing what they must to meet the company vision and mission and to build customer loyalty that will provide solid long term income and profit.

Trust and Communications – The Keys to Successful Teams

Gerald Bricker — Fri, 21 May 2010 19:07:03 GMT

Anyone who watched the 2010 NCAA “March Madness” (Men’s National Basketball Championship) could not help but notice the Butler Bulldogs, the Indiana team that made it to the final, championship game, even though they lost to the Duke Blue Devils. Butler University is a school of about 4,000 students. They competed with teams in the NCAA tournament that were as much as five times their size and that attracted more sought-after athletic talent.

One reason that Butler did so well was their focus on “the team.” During one TV interview one team member said, “We just trusted that one of the others on the team would make a play when we needed it.” The Butler coach stressed this point in his interviews as well. He also talked about their communications, about keeping their minds focused on the game situation and about helping each other to make the right plays.

Today, with business competition, customer expectations, new technology, etc. it is more critical than ever to build teamwork in your organization. The many challenges that your organization faces, the more critical it becomes that teamwork is effective. The key elements to successful teamwork are trust and communications. It is also crucial to have effective leadership; a focus on common goals and that everyone assume responsibility for success. However, without trust and communications the team will have difficulty functioning effectively.

The whole process of organizational teamwork must begin with a company leadership team that creates a business strategy and a focus on the critical goals of the enterprise. It then becomes a process of communicating the vision, values and mission of the organization to a team, or teams that will be responsible for planning and executing the mission and building trust in the teams and within the teams to carry out their assigned responsibilities. Marketing plans, as well as other operational plans, will succeed only with team-based planning and execution.

The young men of the Butler basketball team understood their mission well, to win the NCAA tournament. Though they did not win that final game they learned a valuable lesson in the value of the team.

Understand Customer Culture for Success

Gerald Bricker — Thu, 25 Mar 2010 18:43:00 GMT

Have you tried to win new business with a customer when your company was the "little guy" on the block? It's a tough task. It is even more difficult when the customer is a large global company that is extremely selective in choosing new suppliers. The experience demands courage, hard work, listening closely, and most importantly, understanding and respect for the culture of the customer.

About 30 years ago, when foreign car makers began to plan for domestic production of their products here in the USA, those companies from Asia and Europe invested a great deal of time and money to find suppliers locally. One of them, a European company with a strong focus on technology and quality, sought proposals from four suppliers of a certain commodity, including one of the smaller suppliers that held just a 5% share of the local market at the time.

I was one of the points of contact with that smaller company that included a team of sales, engineering and senior management personnel who met with and visited the European company to pitch our products and services. After nearly 12 months of effort we won the contract and beat out three larger companies. Later, when there was time to talk with my customer contacts I asked them "Why did our company win?" They told me "Because you respected our culture and made us feel comfortable that we could work with you."

Are you developing the points of contact in your company to help build relationships with your customers? Does that include the customer's culture? Make it part of your strategy and your business will grow and prosper.

Connect to Culture

Gerald Bricker — Mon, 22 Feb 2010 14:21:00 GMT

When Kentucky Fried Chicken (KFC) first entered the Japan market their business did not do well. Sales were well below expectations. Customers avoided their stores. KFC almost exited the market to stop its losses. Their management was uncertain why their business approach failed when it had done so well in its home market.

KFC then hired a Japanese manager who had worked for another Western company. New stores were opened by honoring the local business culture. Local business people were invited to a grand opening with all the typical cultural ceremony that accompanies the opening of a new business. Employees were trained to greet customers, communicate in the polite Japanese manner and to follow local culture with smiles, signs of respect and even the correct manner of handing their orders to customers. KFC's business took off and became strong throughout Asia.

By connecting to the local culture and the people KFC became successful. Making proper connection through the points of connection in the business is a critical step to a successful business. Showing respect and understanding for the culture of the customer is a crucial part of creating strong points of connection for a business. Without it, businesses will not be able to build customer loyalty and optimize their sales and profits over the long term.