Imperfect Information, Imperfect Decisions

If only.

Two words. Big meaning. Compelling sentiment.

Too often intent, decisions and actions are ill-founded, because of a lack of information. “If only I knew then what I know now” is a common phrase with significant implications. Imagine an environment in which apologies, retractions and remedial actions were not necessary.

The pursuit and attainment of optimal efficiency and effectiveness, as well as quality customer service would be and is more readily and consistently achieved when all the pertinent information is willingly shared. No one individual, department or sector is precluded from the philosophy or process.

Evolving, establishing and sustaining positive relationships are typically centred on mutual respect and trust, which facilitate timely open, ongoing, two way and complete exchanging of information.

Qualified, filtered and edited communication leads to suboptimal performance and stress in relationships, private, personal and in business.

The reality of much commercial sensitive information and supposed intellectual property is one of subjectivity, rather than objectivity. Upon reflection much of what was considered to be a must for confidentiality is in reality not that essential. If only … the information was provided at the time.

ENABLING POWER

The willingness to share information is energising to all concerned. It underscores a strong element of trust, integrity and respect.

Moreover, it enables and facilitates reasonable, rational and objective forecasting of demand, supply, services and resources.

An early exchange of information provides for effective forward planning and forecasting in which operations are optimised and variable costs are minimised.

Information in isolation cannot and will not convert a “no, we can’t supply” into a “yes”. However, it enables appropriate, often mutual searches for identification and securement of alternative sources, supplies, products and services.

DOCTRINE OF NO SURPRISES

Harold Geneen, the former President of ITT, the trans-national telecommunication and investment conglomerate (which previously operated the Sheraton Hotels and AVIS Rent-a-Car networks) subscribed to the …

DOCTRINE OF NO SURPRISES

Early and ongoing advice was considered the foundation of sound forward planning and optimal performance.

No-one was penalised or disadvantaged by being the purveyor of “bad news”.

The underlying cultural belief was that one cannot always control what happens to them in life, but one can control how one responds to what happens to them in life. Life can and does reflect business.

VALUE FORESIGHT

Understandably many business leaders assign marginal value to hindsight. Premium is and should be accorded the foresight, because efficiency is optimised, effectiveness is enhanced, customer service is improved and relationships are cemented and sustained.

20/20 vision may be a measure of ideal sight. Foresight will seldom, if ever, be so focussed, accurate and repetitive.

However, greater credence and understanding are given to acceptance of the premise:

“It was best and most appropriate decision, based on the information which was available at the time.”

The exchange of information requires the allocation of time, people and resources. It can be and often is intense and exhausting.

However, it does give pause to consider the realisation that up to 1 in 4 workers in the United States of America are employed to correct the errors and deficiencies of other workers. Many of those errors are a product of inadequate and incomplete information. Compounding this reality is the multiplying effects of not delivering the products, services and customer services which are expected, all because of poor communication. The impact on one consumer or client can be and often is felt by up to four others.

If only more information was shared at the appropriate time and possibly in the context of confidentiality, customer satisfaction would be enhanced and the capacity of service providers upgraded.

One most often gets paid for what one does rather than what one says. In the scenario detailed, what one says is a pre-emptive factor to what one can do and how, when and why one does it.

If only…

ERRORS OF MY WAY

Clearly for the sake of comprehension and fulfilment of expectations a significant number of people need to correct the error of their ways and counter the tendency to be economical with the information that is shared.

GIVE IT TO THEM

Any reluctance to share and disclose the full suite of information which is available, necessary and, indeed, imperative actually impinges on the ability of service providers to offer that which will provide ultimate customer satisfaction. So, go ahead, give it to them so that they can and will be able to do their job properly.

KEY STEPS

• Determine one customers service needs
• Establish what information is needed by the service provider to ensure customer satisfaction
• Share the information and ask that one’s confidence is respected
• Ensure the channels of communication are open
• Conclude a mutual agreement of performance standards
• Where appropriate, monitor progress
• Acknowledge, applaud and celebrate successful completion of the task/s.

There's Nothing To Be Comfortable About

Being comfortable is a curse!

Numerous leaders, managers and business owners in franchise networks, buying groups, cooperatives and branded marketing channels know the feeling only too well.

Endeavours to innovate, create, change and develop can be and often are frustrated, impeded, blocked or compromised by some individuals and businesses within the respective supply chains who are less driven, because they are comfortable. The reasons can be many and varied.

Seldom are the causal factors deliberately and intentionally negative to the aspirations of others.

The scenario does, however, raise question of just why individuals and entities decide to join networks and do not commit to higher order goals.

Throughout the world large percentages of businesses and owners are locked into a time freeze zone, reflected in the presentation of premises, products and people, often exacerbated by antiquated systems, processes and practices. Such people are part of, but do not belong. Often their initial motivation was defensive, to enable them to buy better or to block entry of competitors into discrete marketplaces. Attainment of such objectives is relatively easy and prompt.

Comprehension of, belief in, adherence to and endorsement of the overriding corporate culture is not a consideration in such circumstances. Future focus, beyond immediate term horizons of trading days, weeks and months is beyond the scope of some. Why? Because they are comfortable.

Imagine the number of owners of small to medium sized enterprises whose primary orientation is to generate an income rather than to develop and grow a business.

Blame cannot and should not be attributed to individuals. Their original intentions may have been honourable and appropriate, albeit, largely self centred.

Analysis of relevant alternative, available actions is the realm of leaders and managers in collaboration with the particular individual persons or businesses. An awakening to the possibilities and, often, the inevitabilities may be and often is all that is required. Defining, refining and documenting mutually beneficial goals may be sufficient catalysts to induce change. Allowing the status quo to persist is destructive.

Decisions are the responsibility of all. Everyone is compromised, is impeded or is frustrated when no decisions are made. Similarly, knowingly and unknowingly, everyone benefits from decisive, timely and appropriate decisions. Recognition of the upside may not be immediately apparent to all.

Counter arguments and rationalisations based on the need for the advantages of volume (and thus the need for “numbers”) are flawed. Reflect on the wide variability of standards, presentations and practices of many businesses within single branded networks. Sadly, the lore of the marketplace is that the collective whole is reduced to the lowest common denominator.

Thus, the well being, growth and value of individual businesses within franchise networks, buying groups, branded marketing channels and cooperatives are impacted, often adversely, by the fact that one or more of the group are comfortable.

A sense of comfort is palpable, conspicuous to suppliers, associates and, sadly, consumers and customers.

Comfort is the enemy of excellence, leadership, competitive advantage and growth. It is also a contributor to complacency, inertia and decline. It tends to be a state in which the orientation is now, with little regard or respect of the future.

Comfort can also be caustic, destructive and the initial phase of entropy, the concept that states all things tend towards to a state of disorder.

THE CHALLENGE

Some readers of this text will feel comfortable with the message, will file it and will then or move on.

Others will be driven to contemplate a full scope of options and actions. Distractions will arise, some impediments will be encountered and, with the best of intention, they will lapse back to a state of being comfortable.

For a select few, they will contemplate the latent potential which resides within their own business, their network and supply chain. They will be driven to make decisions and to progressively implement such.

These few will then find some comfort in the realisation that the process will start all over again. They may even be inclined to address and redress the issue with those for whom comfort has become the norm.

KEY POINTS

· Seek out, identify, isolate and analyse instances of comfort.

· Determine the causal factors

· Detail latent potential which is an alternative to comfort

· Address the issue with those for whom comfort is the prevailing norm.

· Seek consensus on remedial actions.

· Where appropriate, agree on the parting of ways, for mutual benefit.

· Pursue and secure cohesive joint policies, practices and actions which avoid comfort and realise the full potential.

 

Sensitive To Closing The Sale

Two major impediments short change too many businesses.

The seeming inability or reluctance to address and overcome consumer price sensitivity, together with the need to close the sale are the two biggest contributors to suboptimal performance by businesses, big and small.

In the vernacular, too much money is being left on the table or in the pockets of clients, consumers and customers because of the attitudes and (in)action of business people.

Price discounting, competitor tactics and overwhelming mass media campaigns are in reality secondary considerations for most businesses, in their pursuit of business, revenue and profit development.

The phenomena of “sales leakage” has encroached into the professions. Accountants, lawyers, bankers, financial planners and risk insurance consultants forsake large revenue streams because of an apparent lack of self confidence and pride in the quality and value of the services provided.

Ironically, it is the practitioners and retailers themselves who are most price sensitive. Consumers are typically uninformed or ill-formed on fee and cost structures.

Sadly, hesitant references to costs, fees, dollars and cents accentuate the varying perspectives and heighten sensitivity among the clients and customers.

The appropriate tack is to address the value proposition, of which price is one, but not only the key driver. Value is like an iceberg. Most of the package is not conspicuous and needs to be detailed so that others can appreciate the total bulk of what is being offered.

An anecdote about painter Pablo Picasso provides an appropriate perspective. Late in his life, while drinking coffee the artist was approached by a young child, a fan. Picasso quickly drew a pencil sketch and handed it to his adoring fan.

The father of the child enquired about what the true value of sketching would be. Free of modesty Picasso declared a figure which equated to some $20,000 (Australian).

The flummoxed father responded, “but it only took you minutes to draw!”

Pablo Picasso corrected him: “That sketch, sir, took me 76 years to draw.” That’s value!

Similar sentiments are often expressed about my customised conference keynote addresses. Some people express surprise about the fee which applies to a one hour presentation.

It is only after the facts are detailed that they appreciate the inherent value in a speaker and consultant who insists on a detailed briefing, undertaking background unannounced visits to premises, interviewing nominated leaders, compiling unique PowerPoint graphics, integrating pics into the visual aspects and providing exclusive pocket prompter documents which reinforce and expand upon the key points.

Resolving customer service issues often suffer from identical misperceptions. Understandably, many, if not most, customers are unaware of just what it takes to address and redress a circumstance to the satisfaction of the customer. It takes time, focus and discipline to explain to the customer, so that he or she will appreciate the inherent value in dealing with a company, brand and service provider who is dedicated to customer satisfaction. There are no shortcuts.

It is only with such disciplined approaches to interactions with customers that professionals develop their self confidence and belief in their right to ask for and conclude a sales/deal/contract after having invested time in interacting with the prospective customer.

The fear of rejection is omnipotent in business. Unresolved opportunities to “close the sale” relieves the customer of the need to make a decision and a commitment.

Every professional should recognise that the easiest decision to make for most customers is to make no decision at all. Accordingly, sales, profits and customers are lost to the business and industry, rather than to a competitor.

Many customers love to be sold. That assistance and input simplifies the decision making process. Satisfaction ensues.

Too many options can be and often are confusing and frustrating. Two alternatives can be attractive and compelling.

The asking of questions which identify, isolate and enable analysis of customer needs are the foundation steps of establishing, creating and packaging value. Exchanging that information is a catalyst for expediting the sales closure.

In the current marketplace one seldom, if ever, gets a second chance to conclude the mutually satisfying deal. Therefore, it is totally unreasonable and illogical to be sensitive to price and to hesitate in one’s endeavour to close the sale.

CONCLUSION

External forces in the marketplace, including interest rates, the value of the dollar, consumer confidence levels and competitor actions are often reasoned to be the cause of why sales budgets are not achieved or the full potential is not realised.

In reality, the true and ubiquitous reasons are an inner sensitivity to prices and the fear of rejection by professionals who ultimately lose more than just the sale.