My experiences about Cranfield MBA ..... and beyond

Wednesday, August 22, 2007

Are you being served?

Those who come from my generation would remember the sitcom with the subject title. Those who have not seen / heard about it are suggested to definitely check out a few episodes. However, the take away from those episodes should be more than just humour / laughter.

"Customer service" is a word often forgotten by those who provide it but always remembered by those who experience it. And every one of us on the face of the globe play both roles every now and then.

During the last few weeks, I was visiting US for official work. Over a weekend, I met up with my brother in law and a friend of his and we went out for a dinner. Just as we were being served with the dishes we'd ordered, my b-i-l reminded himself aloud that he did not like potato chips as an accompaniment. He had in fact, forgotten to request the waitress to change it to mashed potatoes. He called the lady and requested if he could get mashed potatoes instead.

In a matter of minutes, she was back with mashed potatoes and served it with a genuine smile. The chips stayed on our table. And that set me thinking and talking about customer service.

This post, by the way, is not an attempt to glorify US or put it in comparison to other countries. It is simply my reflections on the subject and the views are entirely my own.

Assuming customer service comes at a cost, what could have been the incremental cost to the restaurant from the act of this waitress? (Trust a finance guy to ask a question about money first!!) ----- a few US cents (potato + fuel to cook + some minutes of walking time), right!
Against this cost, what did the lady and the restaurant earn? A life long customer perhaps! Or at least positive word of mouth .....of 3 customers, not just 1.

I bet in many countries / cities across the world (maybe even in US itself), had it been the same situation, the waiter(ess) would have first said, "Why did you not order correct the first time?" or "I am afraid it will cost you extra!" or perhaps not said anything, just done it...but with a scoff or a scornful look or cursed mutterings.

As suppliers of goods or services, we do it all so often - forget the customer; just treat it as a "momentary transaction". No matter what an MBA teaches you, unless applied in practice, it is useless.....just good enough to be in books.

Think about it!

Tuesday, August 14, 2007

The Inverse Pyramid

After having worked in the industry for good 15 years, last month I started afresh - this time in management consulting sector. While I undergo induction / on-boarding, last week I was called for supporting a team working on an assignment in Retail sector. No, I am not discussing their assignment here nor the client. Instead, I share an insight which perhaps no book will ever capture. I chose the same words what my colleague Andy called it - the Inverse Pyramid.

When we walked in the HQ of this major retail player, we found it to be absolutely basic, frills-free, low profile office. It did not come across as the HQ of a global multi-billion player and this set us talking. This firm believes in the fact that their customers who walk into their stores across the country are their reason for existence. And it shows. Very simply - the focus is on the stores - it is the stores which need the best of look and feel; not the HQ.

This made me think - not just UK, even in India I have seen few retail players who have plush, hip HQ's but almost basic (if not down trodden) retail stores. It is as if the retail stores exist for the HQ rather than the other way around. All attempts to cut costs began with the stores while the management, sitting in their ivory towers, spent money to get those latest laptops and mobile instruments, constantly spend on reorganising work stations and layouts, flying around in business class for even short haul trips, etc. The list goes on.

This leading UK retailer has, perhaps the swankiest of stores which give a feel-good factor to anyone walking in. I am sure it keeps bringing back repeat, loyal customers - who are the focus. This is the inverse pyramid - where the organisation exists for its customers; an organisation who would rather invest their funds on its customers than its own management team / HQ.

I hope someone is listening.