On the same page

The first step an American supplier will take is to gain a deep understanding of the customer‘s needs. Because these aren’t always so concrete, they must also try to identify the perceived needs. The relationship with the customer should be highly collaborative on all levels, from the beginning to the end.

The American supplier, vendor, consultant, constantly strives to make sure that they are “on the same page” with the client. In fact, they work literally side-by-side with the client, going to the client’s place of work and completely adjusting their schedule. They maintain continuous dialogue throughout the process so that they always understand the client’s needs and desires, especially as they change.

This includes knowledge-transfer agreements, which detail when the customer will be able to do something on his own, without supplier assistance, so that he begins to take over the process.

Results: Because the customer exerts such a certain level of control over the external expert (the how as well as the what), the expert is held accountable exclusively for the work dictated (ordered) by the customer. How the results might affect related areas within the client company remains the responsibility of the customer. Responsibility cannot exceed scope of work.

Information: For this collaborative effort to function effectively a high level of communication between customer and supplier is necessary. Information flow is guaranteed via short-term feedback between the customer and the supplier during the entire business relationship. This allow customers to modify their requests depending on changing situations.

Fine Line

To serve the customer is to deliver what the customer has ordered. No more, no less. Quickly. Precisely. Fulfilling the order. Full. Filled. Unless asked, a waiter does not discuss with the customers the wisdom of their choice from the menu.

To consult the customer is to enter into the decision making process, to co-discuss, to co-think. To discuss with, think with. Perhaps initially just as a sounding board. Then later as a provider of information, input, advice. At the highest level, acting independently, but in the spirit of the customer’s wishes.

Stages. From order-taker all the way to co-thinker and co-decider. Grades. Gradations. Graduation. Gradual. From serving to partnering with. And there is a fine line between each phase, at each transition.

If the lines are identified, understood and managed (walked carefully), the collaborator is graduated, “makes the grade.” If misidentified, misunderstood, therefore mismanaged, the collaborator is not graduated. The business relationship might be terminated.

“Stop micromanaging”

Harvard Business Review. “Stop Being Micromanaged.” Amy Gallo, September 22, 2011.

There are managers who have very high standards who like some degree of control. They pay a great deal of attention to detail and exercise some degree of control, but they don’t stifle those who work for them.

Then there are pathological micromanagers who need to make it clear to themselves and others that they are in charge. These are the bosses that give you little to no autonomy, insist they be involved in every detail of your work, and are more concerned about specifics, such as font size, rather than the big picture.” 

It is counterproductive to fight against micromanagement. Gallo suggests: “Make upfront agreements. Talk to your boss before a project starts about how she will be involved. Try to agree on standards and basic approach.

Explain what you think the ideal plan of action is and then ask for her input. Be sure you understand upfront what the guiding principles are for the work, not just the tactical elements. These principles are what you should be discussing with your boss. 

The author recommends: “Remind your boss that she is better off not getting involved in the minutiae because her time and effort are more valuable to the big picture. And keep your boss in the loop.”

War of Currents

Despite its name, the Current War is not happening now, but took place primarily in the late 1800s. It was a war fought between Serbian-born, American-immigrant Nikola Tesla and the American Thomas Edison.

Tesla had difficulty convincing the American public to use his alternating electric current to power their homes and businesses. Alternating current (AC) had the ability to provide electricity over long distances much better than Edison’s direct current (DC), which required power stations to be built close together.

Nevertheless, despite the demonstrable superiority of AC to the spread-out American public, Tesla had great difficulty convincing people to use his system of AC over Edison’s DC. This is because Edison was much better at marketing to the American public. He sold himself as well as his product, and also attempted to discredit AC by incorrectly claiming that it was more dangerous, which he demonstrated by publicly electrocuting stray animals using AC.

As a result of Edison’s marketing campaign DC was the standard electric current for many years. However, this began to change after George Westinghouse, an American engineer and entrepreneur, acquired Tesla’s patents for AC and the induction motor.

Westinghouse was much better at selling AC to Americans than Tesla had been, and the first major victory for Tesla’s current occurred during the Chicago World’s Fair in 1893, in which General Electric, using DC, bid to electrify the fair for $554,000, but lost to Westinghouse, who bid $399,000 using AC.

Shortly after this, Niagara Falls Power Company awarded Westinghouse a contract to begin harnessing the power of the waterfall for use, and on 16 Nov 1896 Buffalo, New York began to be powered by AC from Niagara Falls. General Electric also switched to AC, and it wasn’t long before AC destroyed DC. Even Edison eventually switched to the more productive AC.

Serve the Customer

In many cultures, hospitality – the relationship between a guest and a host – is of great importance. Being considered an inhospitable host is dishonorable to the guest and the local community alike. This idea is similar to the concept of serving a customer in the personal, respectful way that most Americans consumers expect. One example of the importance of this concept is found in the vision of Hilton Hotels: “To fill the earth with the light and warmth of hospitality.”

This idea is not constrained to hotels, however. The president of outdoor supplier L.L.Bean, Chris McCormick, described customer service as a key part of the company’s success: “Superior customer service has always been and always will be the cornerstone of our brand and heritage and an attribute that differentiates us from the rest of the pack. It goes back to L.L.’s Golden Rule of treating customers like human beings.”

In American English, the above quote can be succinctly summarized as: “the customer is always right.” This is a very common phrase that most consumers and businesses treat as an underlying truth in all interactions with customers. Even if the customer is actually wrong, it is up to the service provider to treat the customer with respect, understand his point of view, and offer a solution. Anything short of these expectations will be viewed as bad service.

As one senior consultant at a major American strategy consulting firm put it, “Service is defined completely by the customer.” In the consulting realm and many other industries, customers come with clearly defined needs and expectations. The service provider must understand those expectations and deliver service that is consistent with what the customer expects.

Craig Reid, former President of Operations – Americas at Four Seasons Hotels and Resorts and now CEO at Auberge Resorts, similarly stated that “If customers are buying excellence – and they are the people who define excellence – you’ve constantly got to measure whether they agree with your interpretation of excellence at that particular time. And that definition of excellence evolves constantly.”

Waiters and Waitresses

In American restaurants, waiters and waitresses typically earn well-below minimum wage for their work. Instead, they are supposed to earn their money by providing good service to their customers, who will tip them based on the quality of their service.

For Americans this means that the waiters and waitresses should check in regularly with the customers, ask if they need anything, and fulfill any requests that the customers have – in other words, to act as the customers’ servants. 

Americans are willing to behave this way because they expect monetary remuneration for their actions.

The customer is always right

“The customer is always right” is a very common phrase in American business. It was first made popular in the early 20th century when it was used as the slogan for Marshall Field’s Department Store in Chicago and London’s Selfridges Store (founded by American Harry Gordon Selfridge).

Both of these stores became extremely profitable, primarily because they had a reputation for good customer service. As a result, many American businesses have attempted to model their processes on the principle that the customer is always right.

In 1911, in an attempt to promote a local business, the Kansas City Star newspaper included an article about the business owner George E. Scott, saying: “Scott has done in the country what Marshall Field did in Chicago, Wanamaker did in New York and Selfridge in London. In his store he follows the Field rule and assumes that the customer is always right.“

Listening to Customers

Many companies implement customer suggestions when those suggestions challenge the company’s core principles. In response to customer suggestions for a less cluttered store, Walmart cut its total inventory by 15% and renovated stores to feel less cluttered. The changes resulted in immediate decreases in sales that totaled $1.85 billion dollars before Walmart reverted to its previous model of a much wider selection of products at low cost.

A leading manufacturer of bathroom fixtures is perhaps the most traditional example of a company that must collaborate with and understand the needs of its customers. It must constantly innovate and improve its products with its current and prospective customers in mind.

To this end, the company says: “To the customer, it can seem like each faucet was made with them in mind. We listen closely to what consumers want and need, invest in extensive research and design, and apply smart technological solutions that really do make our customers’ lives easier.” In other words, the how of their innovation process is largely defined by their customers.

In a major US-based international construction company, each of its projects is unique and requires a high degree of collaboration and dialogue with the customer. According to the company’s website, “We work with our clients as a team. Mutual respect provides the foundation for our success.”

Customers expect companies to listen to their input about how a project should look or be completed and create a plan in line with those expectations. The construction company’s website summarizes this idea by emphasizing the importance of finding solutions to their customers’ demands: “We are proactive in finding solutions for our clients that best achieve their goals.“

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