Four Costly Mistakes Contact Center Execs and Recruiters Make When Filling Key Leadership Positions

By: Greg Jerralds,SPHR - Profit InnerCircle, LLC
It’s not unusual for a recruitment process to take 60 to 90 days (even longer in some geographies) to find the right person to fill an open Contact Center senior-level leadership position. Unfortunately, it only takes one day to lose valuable customers and clients!

In today’s dynamic Contact Center environment, what executive or recruiter can afford to have a key leadership position open for three months, two months… or even two weeks for that matter? You see, when you have an open key leadership position within your contact center, each day that passes places your company’s bottom-line at greater risk.

Here are four costly mistakes that commonly occur during lengthy recruitment periods, and negatively impact the bottom-line:

Mistake #1:
Hiring Manager and HR Manager increases the level of pressure placed on the recruitment staff to ‘speed up’ the hiring process.

Even the most efficient recruiter and recruitment process requires a reasonable amount of time to fill positions, especially key contact center leadership positions. Rushing the process only increases the risk of hiring the wrong person for the job. And, when that happens, you quickly turn your short-term issue into to a much longer-term problem.

Mistake #2:
Hiring Manager assigns a less experienced internal team member to cover the senior leadership gap until a permanent replacement arrives.

Even the most competent, enthusiastic and high-potential team member often experiences difficulties navigating through the unclear lines of responsibility, accountability and authority. And, if not considered or selected to permanently fill the open position, regardless of how well the expectations were set, the ‘interim’ internal team member is often left feeling demoralized and passed over.

Mistake #3:
Hiring manager assumes additional responsibilities of the open leadership position, while juggling his/her regularly assigned job duties.

This option often appears simple at first. However, this choice adds even more tasks to an already full plate of responsibilities. As a result, important strategic and fiscal initiatives generally suffer in lieu of addressing time-sensitive and tactical operational issues. When this occurs, the long-term success of the contact center is placed at risk, while the short-term challenges are only moderately addressed.

Mistake #4:
Hiring Manager holds staff and lower-level leaders accountable for sustaining performance, quality and productivity levels until the new leader arrives.

This option may sound good in theory, and might be sustainable over a short period of time (four weeks or less). However, in most dynamic contact centers, 30 days is plenty of time for performance and productivity to take a downward trend. In fact, the most costly mistake of all is choosing to weather the storm, in hopes that any damaged realized during the recruitment period is easily reversible when the new leader arrives.

The longer my leadership gap… the more my bottom-line suffered.

Don’t get me wrong… I’m not pointing fingers or placing blame. Like you, I faced the same painful dilemma, and made the same mistakes. And, all of these mistakes posed an immediate threat to my bottom-line as well as my personal credibility.

I experienced the same operational pressures, challenges, and financial risks associated with a lengthy recruitment process as other hiring managers. As a result, my service level performance and customer/client satisfaction results suffered along with employee morale, engagement and sales revenues. Furthermore, the absence of my Contact Center leader often brought active projects and key initiatives to an instant halt… placing my long-term success at risk as well.

I quickly learned that rushing the recruitment process is not worth the risk of hiring the wrong contact center leader for the job.

Even the best recruitment team and process requires several weeks to fill a key leadership position, and I certainly don’t recommend rushing the process. But, keep in mind that even a short period without a key leader on-site could damage your long-term customer relationships, revenue opportunities, service-level performance and employee engagement and productivity results. So, the question is… what should contact center executives and recruiters do to protect their company’s bottom-line in the interim?

Before your permanent contact center leader is hired, you can implement an interim solution that will insure your operation is sustainable throughout the recruitment and selection period.

Here are four important attributes your Interim Contact Center Executive must have:

1. A minimum of 15+ years leading high-volume, top-performing, customer-focused contact centers with a proven track-record of success.
2. Diverse background in highly-regulated industries ensures fast and seamless transition into virtually any contact center operation.
3. Instantly ready to assume the hands-on leadership of your day-to-day operation to run your business.
4. In addition, the ability to immediately improve your business by:

• Building and sustaining strong customer and client relationships.
• Engaging employees to achieve performance expectations.
• Delivering revenue and bottom-line results.

Avoid Making The Same Mistakes…

By implementing an Interim Contact Center Executive solution, you will insure that your dynamic contact center operation is well-managed during the short-term. And, you avoid these mistakes that pose an immediate threat to your bottom-line and your personal credibility.

Here are the three easy steps to get started:

Step 1:

Decide that you want the best short-term solution to insure your long-term success!

Step 2:

Learn more about the Interim Contact Center Executive™, and contact Greg at 210.497.1948 ext. 102 or GregJ@ProfitInnerCircle.com

Step 3:

Immediately fill your critical short-term leadership gap and protect your bottom-line!

Managers: Communicating Expectations and Aligning Performance Goals to Achieve Exceptional Results

By: Greg Jerralds (www.ProfitInnerCircle.com)

Managers are expected to play a significant role in the success of each team member’s performance. In addition to performing the four primary management functions (planning, organizing, directing, and controlling), managers are responsible for establishing the right performance measurements and tools as well as communicating clear goals and expectations to their team members. When managers perform their role well, so do their team members.

Make no mistake…managers must do more than simply communicate what they expect. The performance measurements and expectations they provide must not only align with the company’s business strategy, but also lead to desired outcomes. Failure in this area can be extremely counter-productive to the overall success of the business.

Neglecting to provide clear goals and expectations timely, or at all, generally places team members at a significant disadvantage. This often causes team members to fall short of meeting the established goals. Remember, when the proper performance measurements are not in place, and team members don’t know what is expected of them to achieve success, the business will certainly struggle to achieve its full profit potential.

Communication and Reinforcement

Performance expectations should be communicated to team members as early in the new hire orientation process as possible, and then be continuously reinforced throughout their employment. In fact, the sooner team members learn what is expected of their performance, the sooner they will begin performing to meet, or in the case of your top performer, exceed expectations. Continuous reinforcement should occur in the form of ongoing follow-up discussions, one-on-one communication sessions, employee coaching, and ongoing development initiatives.

Providing ongoing coaching and development should not be limited to newly hired team members. As team members gain more tenure and experience, managers should adjust their performance goals accordingly: goals should be challenging, yet attainable. When expectations are clearly communicated, and team members feel supported by their manager, they generally perform with greater enthusiasm and drive.

Ownership and Accountability

A word of caution… managers should never present performance goals as “handed down by senior management.” Employees often see those goals as unrealistic, out of touch with reality, and impossible to achieve. Even if the goals are a mandate from the “top,” the goal setting and administration process is much more effective when the team members feel involved in the process.

Allow your team members to contribute to the goal setting process, when possible. Simply encouraging their involvement, even in the slightest capacity (e.g., designing the goal attainment tracking form), generally increases their level of commitment, and tends to lead to a higher level of employee ownership, accountability and performance. Remember, it’s not managers who complete the tasks needed to achieve the goals; it’s the team members who work for them.

Once goals are clearly defined and communicated, it is vital for managers to develop the tools needed to accurately measure and track each employee’s performance. Openly posting performance results and periodically meeting with team members to review their individual progress is a key step in achieving and sustaining desired results.

Motivation and Recognition

Once the right performance measurements and tools are in place and performance expectations clearly defined and communicated, the manager’s next task is to ensure the team members are productive. One way to keep team members performing at optimal levels is to implement a rewards and recognition program. This will help to motivate employees as well as insure top performing team members receive the recognition they have earned. And, for your top performing team members who may have mastered their job functions, managers should recognize them by finding new tasks and assignments to further expand their knowledge, skills and abilities.

Recognition comes in many forms: monetary, such as spot and period bonuses; opportunities for growth and exposure, such as assisting with special projects or assignments; and greater responsibilities, such as acting team leader or supervisor. Whichever combination you decide, be sure that every team member understands the relationship between exceptional performance and being rewarded and recognized for achieving it.

7 Quick Reference Steps

Here are seven quick reference steps to help managers lead their teams to achieve exceptional performance results:

1. Establish a strategic alliance with your human resources managers.
Managers must begin to recognize their HR managers as strategic partners, and then begin to leverage that relationship to overcome barriers, ensure consistency, and further develop employees’ core competencies. HR can help to insure your department goals and expectations are in line with your company’s business strategy.

2. Align your performance goals with your company’s business strategy.
When goals are not properly aligned, it places significant risk on the company, particularly when employees are focusing on and achieving department goals that are in direct conflict with the company’s overall strategic direction. This increases your risk of losing customers and employees and it also negatively impacts your profitability.

3. Increase your level of effective communication and collaboration.
Rather than retain vital information, managers should share it with those who need it most, their team members. When employees are robbed of the critical information they need to perform their job, they become unsure of the company’s direction, purpose, and most importantly, how their personal successes and failures impact the company’s ability to make a profit.

4. Provide continuous employee coaching and development.
Far too often, managers avoid providing their team members with ongoing coaching and development. This probably is the most common of the five areas, and the most detrimental to any company’s ability to be competitive, improve customer satisfaction and increase profitability.

5. Empower your team members to perform their job.
Provide your team members with the tools, information, direction and support they need to get the job done. Reward and recognize positive performance, and provide ongoing coaching to correct and improve performance.

6. Provide an open forum for two-way communication.
Create and maintain an environment of trust and open communication by encouraging your team members to share feedback, make recommendations for improvement, etc. If you really want to know how you department is doing, or how your customers feel about your company, simply ask your employees.

7. Regularly validate your performance measurements.
Managers often get comfortable with the status quo. As a result, they fail to challenge current performance measurements to ensure their goals and metrics are properly aligned with the corporate strategy.

© 2009 ProfitInnerCircle.com - All World Rights Reserved

AUTHOR

Greg Jerralds is with Profit InnerCircle.com. He is the author of the book, “The Leader’s Guide to Performance Management” and co-author of “The Best Kept Profit Secret.”

Greg is available for media interviews, speaking engagements, on-site training/consultations, and teleseminars/webinars. He can be reached at 210.497.1948 ext. 102.



IMPORTANT MESSAGE: You have received this article, compliments of Profit InnerCircle.com. You have our permission to use it in your publications. However, it must be used in its entirety with no revisions or modifications (including Author information). Also, the complete copyright information must be clearly visible-
© 2008 ProfitInnerCircle.com - All World Rights Reserved

Surviving Tough Economic Times: “Increase Your Profitability By Boosting Your Investment in Continuous Improvement Initiatives!”

By: Greg Jerralds (http://www.profitinnercircle.com/)

It’s official. We’re in a recession!

It never fails. As soon as the economy takes a downward turn and annual revenue projections are lowered, the first place, after lowering headcount projections, companies search to reduce operating cost is employee development initiatives. I can't tell you how often during my 20 plus years in corporate leadership I have been challenged by executive leaders to reduce the employee training and development dollars for my department or division. And, each time I am tasked with such an outlandish request, I prepare for battle.

Need to Reduce Your Operating Costs? Increase Your Employee Development Spending!

Don’t get me wrong - I don’t enjoy confrontation! As a matter of fact, on most issues, I’d rather search for compromising alternatives. But I am a firm believer in the value of continuous employee education and development. So when it comes to cutting costs needed for development initiatives, my strong convictions usually have me reaching for the latest advancements in corporate battle gear. Let the jousting begin!

In a desperate quest to lower operating cost, senior executives search for ways to reduce headcount expense. If it is not reduced headcount, then it is to significantly slow its current rate of growth. Of course, senior executives target other budget categories, but headcount generally has the greatest influence on a company’s operating expenses, particularly in large production-oriented businesses.

But, here’s where the friction occurs most often. In contrast with senior executives, middle managers are constantly lobbying for additional resources. They never seem to have enough employees to meet the demands of the business. So, their motivation is to retain current headcount levels, while justifying the need for additional resources. As a result, requests for headcount reductions are generally met with resistance from middle managers. Therefore, to avoid cutting headcount, managers often sacrifice their budgeted dollars allocated in other areas, particularly employee development. When that happens, the entire business suffers!

An $80,000 Investment Delivered a $200,000 Return!

Lauren, a contact center director for a growing manufacturing company, was asked by the department vice president to reduce her expense forecast for the upcoming budget year. Her VP explained, “Although we continue to realize significant growth, our average sales are slightly down for the third straight quarter. This is primarily due to fluctuating trends in consumer buying. So, to insure we meet our profit projections for the upcoming year, our combined operating budget must be lowered by one million dollars. I am looking for $100 thousand of that to come from your contact center budget.” Without hesitation, Lauren’s VP stated, “I see you forecasted $80 thousand in employee development initiatives. Cut that, and you’ll only need to cut your headcount projection by one Full-Time Employee (FTE) to meet the target!”

Seems so simple, right? Wrong! And here’s why!

Like most department leaders, Lauren was asked to trim her budget forecast -- what she already considered to be aggressively tight -- even more. Understanding she was on the hook for $100K in reductions and her employee development dollars were at risk, Lauren had to get creative!

Lauren realized the value of providing ongoing development to her employees. She had seen favorable results in the past, particularly with her leadership team members. But now, she faced a tough dilemma. Either reduce her headcount forecast by three FTE (equivalent to $120K), or postpone her employee development initiatives for full a year. With the exception of headcount, which contributed the lion’s share of her annual operating expenses, the $80K allotted for employee development stood out like a tall, ugly weed begging to be chopped by her VP’s financial sling blade. And, it was no doubt her VP was prepared to swing!

After intense thought and planning, Lauren submitted her revised budget. Lauren’s VP called after reviewing the revisions and said, “I noticed you reduced your headcount growth projection by five FTE, but retained your employee development allocation of $80,000. How do you propose to handle next year’s growth in business?” Lauren replied, “My $80,000 allocation will be used to create and implement two employee development programs: one designed to improve process efficiencies, and the other to improve quality. The efficiencies my department will gain after completing our new process improvement training programs will enable us to increase productivity by 10% - equivalent to the production of two employees.” Lauren went on to say, “In addition, our new quality assurance program will enable us to reduce data entry errors and rework by 15% - equivalent to three more employee.”

It’s all about synergy...where the whole of a system is greater than the sum of its parts; being powerful in effect with little waste of effort results in more being done by fewer people. The objective is to leverage your resources to effectively capitalize on the full potential of the entire unit; a common goal, a common message, and a common direction!

The Economics of Continuous Improvement!

Lauren’s $80,000 investment in employee development programs resulted in total efficiency gains equivalent to five FTEs. With an average annual salary of $40,000 per employee, Lauren’s programs realized $200,000 in cost avoidance (5 FTEs x $40,000). This not only delivered a $120,000 ($200K benefit - $80K expense) Return On Investment (ROI) to the bottom-line, but also slowed Lauren’s annual employee growth rate by five FTEs. In other words, she absorbed new business growth without adding additional employees. Most importantly, the new programs had an extremely positive impact on customer satisfaction and quality assurance ratios.

So often, knee-jerk decisions to lower operating expenses by delaying or eliminating employee development and incentive programs, are met with substantial increases in customer dissatisfaction, decreases in product and service quality, as well as downward trends in employee satisfaction and productivity. All of which, result in higher operating costs and less profit.

Employee cost is often the largest cost of doing business and if through constant and on-going small improvements, such as new efficiencies, employee cost can be reduced by just by 2% without any lose of production, an additional 5% to 10% in profit will result. And, an additional 5 to 10% in profit may well mean a two-fold improvement in the bottom line.

Unfortunately, many businesses do a poor job of anticipating these added costs, and an even worst job measuring them. Often, the true risk of their financial impact is overlooked during the budget planning and approval stages. But, one thing’s for sure; the negative impact eventually shows on the bottom-line.

For businesses to truly realize their full profit potential, they must stop looking at their employees as negotiable financial control devices and begin viewing them as the valuable resources they are! When properly trained, led and inspired, employees have the potential to save companies far more than they actually cost them. Combine an effective strategic plan with modest investments in employee development and technology, and you will find healthy companies that realize sustainable gains in customer delight and retention as well as profitability.

Businesses must focus on continuous improvement to survive in today’s competitive marketplace. If companies control the costs associated with the successful delivery of products and services by seeking constant improvement, they can be both competitive and profitable. As stated by Abe WalkingBear Sanchez, Co-Founder of Profit InnerCircle, LLC, "A business manager not focused on improvement becomes an administrator at best and a bureaucrat at worst."

"What Top Business Executives Don't Know and How It Can Hurt Your Business!"

At a time when the economy is slow and sluggish, many companies find that they have to cover the same fixed expenses out of fewer sales. However, by reducing the cost of production (the people part) through constant and on-going small improvements, profitability can be sustained or even enhanced.

So, as the current economic climate continues to resonate in the minds of consumers, businesses will need to become even more efficient, financially savvy, and customer-oriented to effectively:

• Increase new sales
• Grow repeat sales
• Improve cash flow
• Raise customer delight and customer retention levels
• Drive down the cost of doing business (for themselves and their customers)

Let's face it...there are many creative ways that companies can make a profit. They can rip off employees for their retirement plan or fail to fully fund the plan...sound familiar? They can also make a profit by cheating customers and suppliers...any companies come to mind?
If you're a business executive or business owner (or aspire to be one) who is serious about increasing your profitability, I encourage you to read our 20-page FREE Special Report at www.profitinnercircle.com titled, "What Top Business Executives Don't Know and How It Can Hurt Your Business." This report will help you to improve key areas of your business which lead to increased profitability.

© 2009 ProfitInnerCircle.com - All World Rights Reserved

AUTHOR

Greg Jerralds is with Profit InnerCircle.com. He is the author of the book, “The Leader’s Guide to Performance Management” and co-author of “The Best Kept Profit Secret.”

Greg is available for media interviews, speaking engagements, on-site training/consultations, and teleseminars/webinars. He can be reached at 210.497.1948 ext. 102.


IMPORTANT MESSAGE: You have received this article, compliments of Profit InnerCircle.com. You have our permission to use it in your publications. However, it must be used in its entirety with no revisions or modifications (including Author information). Also, the complete copyright information must be clearly visible-
© 2008 ProfitInnerCircle.com - All World Rights

Tough Economic Times Call For a New Fundraising Approach

San Antonio executives raise funds for children and education by sharing the best kept profit secret with business leaders


(SAN ANTONIO -Friday, March 27, 2009) - In a recent poll, fundraising associations and organizations see one of their top challenges as, "Donors seem to be tired of the same products and services being offered to them." In addition, the seventh annual GuideStar Nonprofit Economic Survey released on October 29, 2008 revealed significant challenges for charities. It showed:

The proportion of charity representatives reporting decreased contributions nearly doubled between 2007 and 2008
Almost half of participants from nonprofits that rely on end-of-year gifts expect donations to decline during the last quarter of 2008 compared to the last quarter of 2007

“We know associations and organizations are looking for a new way to raise funds, especially during these tough economic times. They want an innovative way to generate donor support, keep more of the profit with virtually zero out of pocket costs,” said Greg Jerralds, Chief Operating Officer with San Antonio based, Profit InnerCircle™, LLC. “In addition, business leaders are willing to donate to a great cause in exchange for cutting-edge business strategies and techniques that could help improve sales and maximize profits.”

The Reagan High School and Bush Middle School Choral Departments in North East ISD have already partnered with Profit InnerCircle President and CEO, Davy Tyburski. Mr. Tyburski, the international business speaker and author, will conduct two exclusive 90-minute events at Reagan High School. The first event will be held on Saturday April 18, 2009 at 3:00 pm. The second event will be held on Monday April 20, 2009 at 7:00 pm.

These proven and time-tested methods have been delivered to many individuals, companies and organizations nationally and internationally including Master Lock, the Walt Disney Company, Medtronic, Goodyear, Kellogg's, and Microsoft to name a few. Profit InnerCircle just released its latest book, The Best Kept Profit Secret: The Executive’s Guide to Transforming a Cost Center Into a Profit Center.

Mr. Tyburski will reveal a few profit secrets from the book during his 90-minute, high energy, business presentation. All attendees receive a copy of the new book and bonuses valued at over $500.00.

“Because of budget shortfalls and a lack of innovative fundraising ideas available to associations and organizations, we see a chance to lend a hand by conducting fundraising events that not only support the organization; they also benefit business leaders! We’re committed to furthering the success of children and education by donating up to 80% of the profit from these exclusive 90-minute fundraising events,” said Mr. Tyburski.

Mr. Jerralds, co-author, will join Mr. Tyburski at the events and take part in the post-event book signing sessions. Both events are open to the public and will be held at the Reagan High School auditorium, 19000 Ronald Reagan, San Antonio, Texas (in the Stone Oak area located off Sontera Blvd).

Seating is limited. To check dates, register and learn more about these exclusive events, visit http://www.thebestkeptprofitsecret.com/register.html.

###

North East ISD has close to 70 schools and magnet programs with a fall 2008 enrollment more than 63,000 students. NEISD employs nearly 9,000 people. It is the second largest public school district in the San Antonio area and the ninth largest in the state. NEISD has 19 Exemplary schools, the most in Bexar County, and is a Recognized district. More information about NEISD can be found at http://www.neisd.net/.

Profit InnerCircle is an international group of seasoned trainers, consultants, speakers and coaches that provide business owners, CEOs and senior managers with Profit-Centered Business Management services and products. Profit InnerCircle delivers its proven strategies and techniques through a broad range of client-centered products and services, including live speaking events, continuing education programs, webinars and teleseminars, and on-site evaluations and consultations.

7 Cost-Effective Ways for Business Leaders to Improve Communication and Collaboration

The Silo Effect

Some business leaders may argue that it’s not important for every employee to be involved in, or even informed about the company’s business strategy, financial position or other seemingly “executive-exclusive” information. But, my experience tells me that when companies strangle, or in some cases, sever the critical lines of communication and collaboration amongst its employees, the result can be catastrophic.

Poor communication and collaboration causes employees to become disconnected from the business altogether, which places a company at a severe disadvantage. What’s truly unfortunate is that those same employees, who are robbed of vital information and opportunities to collaborate, generally prefer to have more involvement, empowerment and accountability.

Employees are often found entangled in a web of silos and barriers when denied open lines of communication. As a result, those talented and skillful employees have very little, if any, knowledge of what actually happens outside of their specific area; they become true victims of the Silo Effect! Although many companies acknowledge silos exist, they often struggle in breaking down the barriers.

Costly Work-A-Rounds

In the case of most silos, departments tend to develop their own unique set of ‘work-a-rounds’ and creative processes to get the job done. When this occurs, it generally takes employees more time and resources to complete the work (greater operating costs). In addition, it often takes departments much longer to realize internal problems, errors and missed opportunities, which lead to increased costs and negative impacts on customer and client satisfaction.

Narrow-Focused Leadership

Some business leaders believe that the extent of their responsibility is to ensure their department runs well. They believe that it’s up to their peers to achieve the same level of success within their department. This couldn’t be further from the truth! In fact, it’s that kind of narrow-focused leadership mentality that cripples ‘great’ companies, brings ‘good’ companies to their knees, and literally stops promising ‘startup’ companies in their tracks. Business leaders beware!

Here’s the good news; it’s not too late for business leaders to open the lines of communication and collaboration. From my book, “The Leader’s Guide To Performance Management: Building Organizational Excellence One Employee at a Time,” here are seven cost-effective ways to improve communication and collaboration to get you started.

7 Ways To Improve Communication and Collaboration

1. Develop a “top-down” culture that encourages and rewards open communication and collaboration.

This is where the C-level executives come in! It starts at the top, and then must be driven down throughout the entire organization. Without sustainable top executive commitment and support, steps 2 through 7 will be difficult to achieve.

2. Share the corporate strategy and vision with every employee.

Don’t just send one email… create posters, add it to company newsletters, etc. For employees to truly catch on, and most importantly, believe that their company is serious about success, the message has to become engrained within the culture.

3. Regularly communicate corporate initiatives, expectations, and results to every employee.

Don’t just limit this vital information to employees within a particular department. Share it with every employee. Develop a corporate scorecard; one that lists the top 3-5 goals or initiatives, and then share it. Insure middle managers are helping hourly employees connect their job and goals with the corporate initiatives.

4. Align division and department goals with your corporate strategy.

This is a vital step, and one that requires some quality time and focus. In some cases, you may realize that some department-level goals must be modified or eliminated all together. Remember, if your department is focusing on the wrong goals, your company will have a tough time realizing its full potential.

5. Share financial results (both good and bad) with all employees.

Many leaders are afraid to share financial information with employees at all levels. However, if you truly want your workforce to perform less like employees and more like entrepreneurial-minded, strategic partners, then share your financials and explain how they apply!

6. Create and deploy a department-level balanced scorecard.

The balanced scorecard must effectively align merit, bonuses and other monetary reward systems to performance, quality assurance, operational efficiencies and customer delight results…at a minimum. Explain the connection, and then share the results on a consistent basis.

7. Celebrate successes (both big and small)!

This helps to reinforce the company’s commitment to the strategy as well as its importance. Be sure to promote a culture that encourages learning from mistakes, and rewards calculated risk-taking.

Closing

In today’s competitive global marketplace, business survival depends upon the effort, commitment and drive of the entire organization. That organization, fueled by every employee, every division, every goal, every objective and every strategy, must encourage and maintain a constant flow of information to truly realize its full potential.

With so many businesses downsizing, outsourcing, and running excessively lean operations, it’s often utter chaos and seems virtually impossible to get employees together. And, with department leaders and hourly employees wearing so many hats just to keep the business running, making the transition to providing greater communication and collaboration won’t be easy. But, business leaders can, and must overcome these barriers to remain competitive, increase customer satisfaction, and meet the growing demands of today’s marketplace.

© 2009 ProfitInnerCircle.com - All World Rights Reserved


Greg Jerralds is with Profit InnerCircle.com. He is the author of the book, “The Leader’s Guide to Performance Management” and co-author of “The Best Kept Profit Secret.”

Greg is available for media interviews, speaking engagements, on-site training, consultations, and teleseminars and webinars. He can be reached at 210.497.1948 ext. 102, or Info@ProfitInnerCircle.com.


IMPORTANT MESSAGE:
You have received this article, compliments of Profit InnerCircle.com. You have our permission to use it in your publications. However, it must be used in its entirety with no revisions or modifications (including Author information). Also, the complete copyright information must be clearly visible-
© 2008 ProfitInnerCircle.com - All World Rights Reserved

Businesses Can’t Ignore The Value Of Customer Satisfaction, Especially During a Down Economy!

By: Greg Jerralds

What senior executive or business owner is not interested in uncovering ways to increase profitability? This certainly is the case when the cost of doing business skyrockets, and tough decisions must be made to uncover ways to leverage revenue growth with rising operating costs to achieve desirable profit levels.

The cost of doing business continues to challenge even the leanest of companies. And, as the present economic condition continues to flop around like a tiny bobbin on a raging river, companies must become even more creative in their effort to retain existing customers, while attracting new ones!

Rising Cost Of Doing Business

It’s no doubt that companies will continue having a difficult time controlling costs. And, as costs continue to rise, business leaders must become savvier than ever before. They must find new and more cost efficient ways to produce their goods and services. However, there’s one vital area that must not be overlooked. In fact, it’s the very area capable of providing the most accurate barometer of a company’s success…customer satisfaction and retention!

Although businesses may not have much control over the rising cost of goods and services, one thing’s for sure; they do have a considerable amount of control over the level of service they provide to their customers. And, those who provide exceptional customer service will be in the best position to weather the storm!

The Power of Satisfied Customers

Let’s face it; customer satisfaction has always played a significant role in determining a company’s level of success as well as its degree of failure. In today’s competitive global marketplace, service has truly emerged as the ultimate differentiator in the minds of so many consumers. And, with such easy access to online cyber communities, consumers have an endless number of channels to share their customer service experiences with hundreds, even thousands of a company’s current and potential customers. So, if they’re not sharing positive feedback about your business… beware!

Customer’s Have Choices…Business Leaders Take Heed

It’s no surprise that customers are in the driver’s seat, and they possess the ultimate power…the power of choice: the choice to do business with one company, rather than another. They have the choice to wait on hold, accept poor service, or contact a competitor. It’s those types of choices that have a profound impact on how companies behave and conduct business, particularly those that actually listen to their customers.

Often, it’s not the actual product, or cost of the product alone that motivates a consumer to buy; it’s the perceived level of service they received during each interaction. In fact, it’s the power of consumer choice, and passion for new and better services that should excite senior executives, and business owners everywhere! And, here’s why!

Well, the formula is quite simple… greater customer satisfaction and loyalty means more new and repeat sales. And, greater sales lead to greater profitability. Actually, it’s during difficult economic times that businesses have an enormous opportunity to increase customer satisfaction and loyalty. Unfortunately, the same can be said of destroying it too. The goal is for companies to understand their customers’ needs, remain flexible, and be willing to accommodate their ever changing demands.

A Common Mistake

Alan, the Vice President of Customer Service, was asked by his CEO to lower operating cost by reducing headcount by 10 representatives. Alan responded, “Eliminating 10 customer service representatives will negatively impact the level of service we provide to our customers. The CEO replied, “Our prices are very competitive, and our products have always been in high demand. I’m sure our customers will be willing to wait a little longer to receive our products when necessary.”

Alan reduced his headcount as instructed. However, after three short, but very costly weeks, Alan’s CEO reconsidered his original request. You see, Alan’s CEO was correct about the company’s competitive pricing and high product demand, but what he did not factor into his assumption was the amount of importance his customers placed on the level of service the company provided.

The Value of Customer Retention

The CEO quickly learned that his customers’ loyalty was not tied to competitive pricing and quality products alone, but to quality business processes and historically high levels of service they were accustom to receiving: a level of service that far exceeded their competitors. But when the service level declined, there was little to differentiate Alan’s products from those provided by his competitors. As a result, Alan’s company experienced an immediate decline in revenue that far exceeded the financial impact caused by the growing cost of raw materials.

Far too often, business leaders use the ‘level of service’ they provide to customers as a negotiating factor: hoping the customers won’t notice a change, or when noticed, become tolerant of it. Sure, there are situations that warrant modifying staff levels, but companies must be very cautious not to place quality or service levels at risk when doing so. Remember, it’s much easier to keep loyal customers satisfied and buying than it is to find and motivate new customers to buy!

Make The Commitment

Is your company truly committed to providing exceptional customer service? If so, here are FIVE tips to help maximize the level of service you provide to your valued customers:

1. Employ a ‘top-down’ culture that fosters a customer-centric philosophy!

Communicate the importance of providing exceptional customer service. It must be ongoing and sustained to have a positive impact on changing the corporate culture. The message must be supported and reinforced at the highest level.

2. Talk to your customers. They are smarter than you think!

If you really want to know how your customers feel about your products and services, just ask them! Take the time to capture, track and trend their feedback. You can’t afford not to!

3. Talk to your employees. They know more than you think!

Your employees know exactly how your customers feel about the company’s products, services, policies, and procedures. A word of caution: Don’t shoot the messenger! Employees will stop sharing feedback the moment they feel threatened by doing so!

4. Challenge your internal policies and procedures. They may be the very things annoying your customers!

Far too often, it’s your internal policies or procedures that form a wedge between the exceptional level of service your employees provide, and your customer’s overall level of satisfaction. Business leaders must frequently ask, “Are our policies or procedures single-handedly destroying our ability to achieve exceptional customer satisfaction?”

5. Align goals and performance measurement to insure optimal levels of customer satisfaction is achieved. Place every employee on the right page!

This step is vital in reinforcing your commitment to the customer-centric strategy as well as its importance. Properly aligning goals and performance measurements will insure division-level and department-level business initiatives are consistent and in full support of the company’s customer-centric philosophy. Having the right metrics in place will help your company determine its success as well as identify areas of opportunity.

Simple…Delivery Exceptional Customer Service!

Here’s the bottom line! If you’re providing good customer service today, provide better customer service tomorrow. If you’re providing great customer service today, provide exceptional customer service tomorrow. One thing’s for certain, customers will remember the service they received well after the product has expired. Delivering exceptional customer service requires a total commitment from every employee! And, when executed well, it pays big dividends.

So, should every employee be thinking about customer satisfaction? Absolutely… a company’s survival depends on it! There’s a highly competitive environment out there, and companies must depend on the collective effort, commitment and drive of the entire machine. That machine, fueled by every employee, every division, every goal, every objective and every strategy, must be properly aligned and calibrated to support the company’s primary reason for being in business …to meet or exceed customer expectations at a profit! And, one of the fastest paths to profitability is led by extraordinary customer satisfaction and retention programs. So, make the commitment to make more profit…deliver exceptional customer service today, and every day!

ProfitInnerCircle.com
http://www.blogger.com/www.Info@ProfitInnerCircle.com

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About the Author:

Greg Jerralds is the Chief Operating Officer with Profit InnerCircle™, LLC. Greg is a professional speaker, author, instructor, and senior leader with more than 20 years of experience leading customer service call center operations. He is the author of “The Best Kept Profit Secret” and “The Leader’s Guide to Performance Management.”

Greg began his leadership career at the age of 19 as a customer service supervisor. Since, he has held leadership positions in the financial services, healthcare, pharmaceutical, insurance, and medical device industries.

Greg’s experience includes organizational development, process and performance, project management, quality assurance and employee training and development.



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