BBB Accredited Business

July 5th, 2010

Reprinted with permission of Evergreen Newspapers 

Tomorrow the Sunshine…and Jobs Will Follow

 We hear a great deal of conversation about jobs, or the lack thereof. Our current economic situation won’t be improved until jobs are created and millions of workers who are seeking employment begin to bring home paychecks again.

 We are expecting some politician to come up with a magic formula to oversee the creation of jobs. It’s like believing that we can command the grass to grow. We can put the grass seeds into the ground and water them, but without sunshine the grass won’t grow no matter how much we need or want it.

 The sunshine which will cause jobs to increase is the belief by business owners or managers that demand for their product will be increasing and that it will take additional manpower to capitalize on the increased demand. Whether you are General Motors or a local restaurant you must clearly see that there are more people who want to buy your product before you decide to expand your capacity to supply more of what you sell.  If you were the owner of a restaurant and you were serving 100 meals a day, would you hire more cooks servers or dishwashers without the prospect of being able to serve enough more meals to more than pay the wagers of the new employee? So it’s the sunshine of increased sales that will cause jobs to grow. Nothing else can do it.          

 Consider these clouds which may be blocking the sunshine. First the cloud of personal debt is causing American consumers to watch spending and their debt. The cloud of government spending leaves us wondering when our taxes will go up to pay for the government’s spending spree.  The cloud of healthcare costs which we see increasing to pay for the millions who are being added   The long term forecast sees future clouds of higher gasoline prices because we have stopped drilling.

 So don’t look for jobs to be coming back today. We must clear up the clouds before businesses owners see the sun shining through in the form of increased demand. Take heart…. as Annie sang,

 “The sun will come up tomorrow……So you gotta hang on till tomorrow….Come what may.

Tomorrow….Tomorrow….I love you tomorrow…..You’re only a day away.”

How to Increase Your Job Security by Becoming an MVP at Work

April 16th, 2010

 I’m working on a book; here’s why.  If you have a job, you can be very secure if you are valuable enough to your employer. My book will give readers real life ways to become “layoff proof”. The other half of the book is directed to employers suggesting to them some simple ways they can develop the MVP’s who will improve the profitability of their business.  If I can help even in a small way to reduce layoffs and improve some businesses’ viability, it’s worth the effort.   

The economic crisis we have been enduring for over a year now has brought us to a crossroads. Businesses need to be more creative than ever before to succeed. They need to rethink much of what they “have always done.” At the same time, employees are seeing unprecedented numbers of job losses. Those who have a job, are asking themselves, “Will I be the next employee to lose my job?”  The most valuable asset any business has is its people. Workers largely determine the success of any business, yet many may not be feeling so valuable in these turbulent days.

The book and its format addresses employers under one cover, and employees under the other. It’s an attempt to get both to exchange points of view. I believe that exchanging perspectives is the most powerful way under the sun to facilitate progress in anything. If you want to make giant progress we must change our frame of reference.

Bosses want top performing employees, yet he or she   may not have taken the time to try to understand what their workers are most seeking in their job beyond the paycheck.  We know that like air, a paycheck is necessary for life, but once you have air or the paycheck, there are many other things which effect how you feel.

Anyone can virtually insure their own job security by becoming very valuable to their company. This is done by increasing the contribution the worker makes to the long term success of the company. If you could walk in your bosses shoes and he or she could walk in yours, both of you would greatly increase the probability of getting what’s really important each of you.

We all live in our own frame of references and our personal perspectives largely define how we see the world.  It’s no surprise that our astronauts come back from outer space changed individuals.  They see the world in a way that’s impossible to see while their feet are on the ground. Anyone who has travelled abroad learns that the world does not revolve around the USA as most Americans assume it does.

As I was about to graduate from Officer Training School in the Air Force to become a Second Lieutenant  otherwise known as a “ninety day wonder” the last stop was a visit with a tough old Sergeant who gave us the very best training we had received during the entire course.

Sarge pointed out that today we were trainees, but tomorrow we would be junior officers and as was the tradition, if we passed he would be saluting us. He further pointed out that the salute was out of respect for the gold bars we wore, not necessarily for the wearer. He further explained that non-commissioned officers like himself who earned their rank by experience, actually ran the Air Force. They largely determined the success or failure of each day’s mission.  

The old sergeant went on to tell us that our individual effectiveness as officers would be determined by our ability to work with those who had the experience. If we insisted on believing and acting as if we knew everything, we would fail, and we would never earn the respect of those who we outranked.  If, on the other hand, we were able to respect the experience represented by those who had been there and actually done the work, we would become successful leaders, and our careers and the Air Force would benefit from that leadership.

On graduation day, as we filed past the reviewing stand, there was the old sergeant saluting every one of us. I never forgot his message and his salute, and have tried to earn that salute by honoring the lesson he taught me about exchanging perspectives.      

Trying harder won’t improve results nearly as much as exchanging perspectives between the workers and the boss. Truly, you have to walk in each other’s shoes to understand how working for mutual goals can insure that the company will survive to provide good jobs, and workers will have a much better chance of staying employed.     

The current economy may have you scared to death. If you are like many Americans, you couldn’t survive long without your monthly paycheck.  I know exactly how you feel. I once had a job which I needed badly. I knew that it was important to my financial well-being that I keep the job. I also knew that I was overpaid for the job I had been given. Due to a complicated set of circumstances, the job responsibilities had been lessened after the pay level was set. In other words, I was being paid more than my contributions were worth to the organization. It gets worse. Because of the job loss fear, I became less aggressive about doing the job I had been given. For the first time in my career, I was timid and unwilling to give the tasks at hand all I had. I’m not saying that I didn’t work hard and put in the time, but I just didn’t give it the benefit of my many years of experience. I could have performed better, but fear of losing the job was causing me to underperform. As soon as the first opportunity for a downsizing occurred, I was part of the downsizing. I feel particularly bad about the result of my less than stellar performance because others who worked for me were also downsized.

Every job, whether it’s sweeping the floor or being the CEO, has two levels of compensation which are appropriate for that job. The first level equals whatever the company would have to pay to get someone else to perform the job at a satisfactory level. The second level is the economic worth the organization gets from outstanding performance by the jobholder. Let’s say you are driving a truck and servicing the company’s customers. If you are making the expected number of service calls and successfully completing the calls, your pay should be at the level the company would have to pay to replace you. If, on the other hand, you are not only making your expected calls, but you are also leaving such a positive experience in the minds of your customers that they have a very favorable view of your company, then you are going above what’s expected, and you have actually raised your value to your company.  Your employer might decide to raise your pay either by some merit pay for performance plan or just by recognizing you with a base increase. In either case, you will need to continue to perform at the current level or higher.

 So, if you are following this example, you may say, “what about seniority?” Isn’t there a pay benefit for longevity?  I would tell you that in our current competitive environment, the answer is no unless that extra experience translates into performance that helps your company compete more successfully.  One only has to look at the American automotive companies whose pay practices from the plant floor to the boardroom were not supported by the same level of economic value to the companies.  Companies who overpay their employees will not be able to stay in business. There is no doubt that the one significant factor in the millions of lost jobs is that, like me in the job I lost, the pay was greater than the benefit.

 So if you want job security, you should strive to be underpaid; not overpaid.  The book will help workers be able to gain practical ways to increase their value to their employer. Those who become MVP’s (More Valuable Players) will have great job security, and may find that the boss taps them to find out if they want a tougher, higher-paying job.

April is International Customer Service Month

March 29th, 2010

April is International Customer Loyalty Month….and That’s No April Fools

April is the month where you are to make a special effort to create more loyalty among customers. I’m not kidding, there’s a month dedicated to this.  It seems strange that you only have to do this one month a year. Is there a month for being nice to your Mom or telling the truth?  It would seem that what’s important in April would also be correct all year around.

 Even Google didn’t seem to know who thought up this approach, but whoever it was probably understood that loyal customers buy more from you even without promotional offerings. They recommend you to others and they even give you a second chance if something goes wrong. 

 The question is how you achieve loyalty? Loyalty is a gut level thing rather than the transactional phenomena of satisfaction that many companies seek. You are loyal to your alma mater, your home town or some sports team and of course your dog. This is a long lasting thing that doesn’t go away quickly like the satisfaction you get from a good ice cream cone.  Studies have shown that satisfaction doesn’t motivate people to buy, but loyalty does.

 Our significant studies into loyalty show that it is developed through three elements. First, there does have to be a history of satisfactory transactions. If your broker doesn’t return you phone calls, or your store is out of stock on the items you want, or your bank charges you fees that are not justified in your mind there is little hope of loyalty. Businesses have to be good at what they do. 

 Secondly, loyalty occurs when the organization is unique in something important that they do. Nordstrom is unique in their focus on service. Wal-Mart is unique in their ability to deliver low prices. Loyalty is developed when some unique part of the company offering attracts you because it is an important differentiator for you.

 Thirdly, there must be ongoing and effective communication between the organization and its customers or members.  A conversation, sharing some important information or otherwise adding some value to the relationship all qualify as effective communications. Imagine that the only communication between you and your alumnae association was their request for funds. This would probably not make you want to contribute, but if they effectively reminded you about the wonderful campus days, the story might be different. That communication kindles the loyalty.            

 Organizations who focus on developing loyalty thrive even in tough economic times. Perhaps the focus on loyalty is why Southwest Airlines is the most profitable and fastest growing US airline while the others crank out their satisfaction surveys and add ancillary charges for just about everything. Maybe they will change now that it’s International Loyalty Month.

De Ja Vous All Over Again

March 29th, 2010

De Ja Vous All Over Again

 Since the days of Thomas Jefferson we have been debating whether it’s more powerful to have a strong central governing unit help us make informed decisions or to defend the right of individuals to choose for themselves. In 1830 we passed an amendment to the Constitution to protect the right of states to make decisions not specifically designated to the federal government.

 It occurred to me that my business experience might be able to shed some light on this difference of opinion. In the sixties, I joined Sears who was the largest and most successful retailer in the world. Its sales were greater than the next three competitors combined. I chose the company partially because it was the text-book case for a decentralized company. Local store managers made most of the decisions concerning their store. They spent their days making sure they beat Penny’s and Wards in serving their customer’s needs and delivering the best products and service in town.  Merchandising was done by local managers who were experts in the needs of their local customers.  If a store wanted an item added to the assortment, the buying organization found it and it was made available.

 In the seventies, the country was changing with complex social issues like civil rights and hiring practices becoming important. Sears was changing too. The new President was a lawyer not a merchant and the company became more risk adverse. Local management jobs were eliminated and many were created at the Chicago headquarters which was interestingly called Parent. There were so many experts, that the company had to build the world’s tallest building to house them all. 

 In the eighties and nineties the store organization continued to lose management jobs and the ability to make meaningful decisions. Managers were reduced to store-runners, and told to just follow the plan. “No value adding please.”  Important decisions were made by subject matter experts who probably never stood behind the counter of a Sears store.

 During the nineties I was part of an organization built to take orders for the catalog division. This front line organization was empowered to do whatever was required to serve the customer. They were not directed, but empowered. The results of their great work and feats of customer service was that the catalog was not only rewarded with customer patronage, but with literally thousands of customer letters of appreciation for the service delivered.  This experience convinced me that the model of empowering employees was more successful than  telling them what to do. I remain convinced that the secret to success is within the belief system of people. That is, people will be much more successful if they believe in the course of action they are taking.

 Today Sears has all but vanished from the list of important retailers. I am often asked why this has occurred. The best answer I can offer is to respond that when an organization fails to excite its constituents’ or fails to meet their needs effectively; it begins to wither and die.

 America is experiencing an administration which honestly believes that it has all the answers and that decisions should be made by subject matter experts who espouse the belief that one size fits all. It certainly feels like De ja vous to me. 

 This is not meant to be a political opinion, but rather a belief that in all things, including business and government, empowered people are the critical ingredient to success.

What Every Business Can Learn from General Motors

December 4th, 2009

What Every Business Can Learn From General Motors

It is certain that General Motors new board will replace the now-fired CEO Fritz Henderson with someone from outside the company. Fundamental change almost never comes from company insiders.  

It’s interesting that Detroit’s auto makers have been known as the big three for five decades or so. I’ve personally never heard them referred to as the best three.  GM still has a 5.6% percent lead over Toyota in market share, but is losing billions, while Toyota was profitable in 2008.  Chasing market share has led the Detroit carmakers down a road to ruin. Hopefully, Ford’s recent insight will cause it to recover.

Measuring success by counting the percent of the market owned has caused a focus on production. European carmakers produce what they can profitably sell, while General Motors cranks out vehicles based on what it can produce.  Any retailer knows that too much inventory means you must mark down your goods to clear them, yet Detroit overproduces every year. They support dealer networks over four times as large as Toyota because more dealers means more places to park inventory.

The well publicized labor cost disadvantage which American car companies have brought upon themselves comes form the fear of labor stoppages. If you are not willing to sacrifice production to negotiate reasonable labor agreements over the years, you might end up with the types of cradle to grave benefit agreements and ridiculous pay rates American carmakers have. What other business owners would agree to pay furloughed workers while the workers sit around the union hall?         

Even Detroit’s lack of quality focus probably comes from its singular pursuit of market share. If you stop to innovate and re-tool, you lose production.  Who doubts that Detroit’s employee layoffs damage the quality movement? Toyota avoids layoffs.

So what is there in the troubles of the Detroit big three that can help us in our smaller businesses?

1. Focus on being the very best in your industry rather being the biggest is a proper strategy. While this may seem obvious, many businesses attempt to acquire new customers as a singular strategy ignoring the care of the ones they already have.

2. Design pay and benefits you can afford. Not everyone can afford to be General Motors. Even General Motors can’t afford it these days.

3. Don’t build your production capability with 100% fixed cost, full time employees. If you do, you have no way to reduce your workforce without layoffs.  Layoffs damage your organization in ways you can’t even measure. Avoid them by utilizing a flexible organization.

 A former GM President said “What’s good for General Motors is good for the country.”  Maybe knowing what’s been bad for General Motors can be good for  the country’s small businesses.

A Few Thoughts About Executive Bonuses

November 16th, 2009

A Few Thoughts About Executive Bonuses

So now that we the people have given billions of dollars to financial institutions, the administration is talking about curtailing executive bonuses. If we have a financial stake in the results of these institutions, that’s not a good decision for us. If the institutions do well, we the taxpayers can be a big winner so we should want them to win.  I’m not saying that the current bonus system should be maintained. Absolutely not! Paying business leaders for piling up short-term financial wins only encourages manipulation and insures the eventual downfall of the institution. That’s how we got into this pickle.

 Robert S. Kaplan and David P. Norton published “The Balanced Scorecard” in 1992 and since then its teachings have been an important thought process for most businesses who want to insure long-term success. 

 The core of this school of thought is that there must be balance between focusing on short-term profit and investing for a longer strategic time period. There should be wins for all business’ stakeholders not just shareholders, but employees, business partners, and customers of the business. There must be balance between productivity and quality.  Any business can produce large amounts of a mediocre product, but making a first rate product takes a bit more effort.

 The key to insuring this balance is for each element to be carefully measured and economic rewards (bonuses) be made not for success only in one aspect of the business, but for balanced success. Simply, when you pay a CEO for attaining a short-term financial goal, it will most certainly do nothing for the long-term success of the organization. Kaplan & Norton would argue that you reward a balanced approach that recognizes the need for longer term success and represents the interests of all stakeholders, not just investors.

 So if we have a stake in the large institutions who we have “bailed out” to return to financial good health let’s not eliminate incentives, but rather let’s just insure that they are based on a balanced scorecard.  The American capitalism system thrives when success is rewarded financially. That’s a good thing, but let’s insure that the definition of success works today and tomorrow and that neither trumps the other and that innovation, quality, focusing on customer value and the employees and partners who make these possible are all included.

What Causes Businesses to Fail

November 16th, 2009

Reprinted with permission of Evergreen Newspapers

What Causes Businesses to Fail?

When the economy turns down, there is always an increase in business failures. At the same time, there are always businesses which thrive even in tough times.  I have thought a great bit about why this dichotomy exists.

 I recently completed Jim Collins new book “How the Mighty Fail.” which studies the downfall of once mighty companies. He maps out a five stage formula to track the downfall and predict whether a turnaround is possible. Many smaller companies, don’t last through five stages, they simply go from viable to unable to make payroll as revenues are pushed down by a tough growth cycle.

 One of the key points Mr. Collins makes is that successful companies must understand what has made them successful.  That is, even in good times, what is it that attracts customers to the company?

 My observations convince me that if asked, “What is it that attracts customers to you and causes them to keep coming back” many CEO’s would struggle to give a clear answer.  Allow me some examples, please. Would the head of the post office know the answer, hmm probably not. How about Chrysler or Sears? I don’t think so. What about Southwest Airlines, Wall Mart or Fed Ex; you bet they know and they focus on the delivery every day.  

 So, the point is that all business owners should focus on maintaining whatever attracts and retains customer loyalty.   If you have the lowest prices and the best deals in your industry, raising prices is a formula for disaster. If you differentiate yourself with personal service, reducing your service offering will do you in. Would Wall Mart ever give up their absolute fixation on low prices or would Nordstrom lessen its clear focus on the customer and the service excellence strategy?

 In order to follow the simple idea of not giving up what makes you special, businesses must know what their differentiator is.  The weak economy may hasten business failure, but businesses that don’t understand and protect what’s special about them are on borrowed time anyway.

 As the economy improves, and business cycles dictate that it will, those businesses which strengthen what makes them special will recover faster and better.  The business cycle doesn’t define business success, the ability to deliver what makes a business special does.

 Jim Rohrer, Managing Partner of The Loyalty Partners is a business consultant and expert in loyalty

Show Me The Jobs

November 16th, 2009

Reprinted with permission of Evergreen Newspapers

Show me the Jobs?

 When times are good and revenue is rising, employers are willing to add jobs. But whenever there is a dip in the economy, and growth is not there, the first way employers are able to cut variable expense is with job cuts. This time the economy is really bad and the cuts just seem to keep on coming. It’s clear that unemployment will top 10% for the first time since 1982. 

 Manufacturing jobs seem to have all but disappeared for good, and you might ask, “Will we ever start adding new jobs other than as fast food workers or Wall Mart greeters? 

 The truth is that this recession is tougher than most and employers will not be adding jobs until they see their revenues showing a strong pattern of growth.  Responsible businesspeople don’t like to implement layoffs any better than we like being on the receiving end, so they should be very slow to do anything which causes a repeat of the painful and expensive process of payroll cutbacks.

 New jobs will be created and although the timing is unclear, the need will insure that they will be added. Here’s how.

 This recession has really caused business leaders to take a long look at their enterprise. This has not been a normal business downturn. It has caused failure in businesses thought to be able to weather most recessions. Businesses have had to ponder how they will provide long term success with more scrutiny than normal. This introspection will uncover opportunities for long term improvement, and this process will cause individuals with special skills to be hired.

 Let me give a few examples. Let’s say that a company determines that their best opportunity for growth will be served by a better internet presence. They will find and hire someone who knows how to deliver that improvement for them. Let’s say that another company determines that they need strategically to bolster their service.   They will hire an experienced customer service manager and the resources to make the improvement.

 So the future jobs will be jobs that today don’t even exist, but are needed to strengthen the enterprise’s ability to get and retain customers. Look for employers to add some new staff, but they will do so only when they are convinced that the new person brings knowledge and proven expertise to help the company be more effective. A payback will be required and will likely be carefully measured.    

 The bottom line is that if you can’t demonstrate that you can help a potential new employer be better and more profitable, you aren’t going to get hired.   So here’s the headline. “If you add strategic value, you should be able to find a great new job.”  Employers have many choices, so if you want to be the one hired, you’ll have to bring some special promise.  “Ask not what the company can do for you; ask what you can do for the company.”

Your Call is Important To Us

May 3rd, 2009

Reprinted with permission of Evergreen Newspapers

Your Call is Important to Us

I’m sure you have heard these words when you called some business for which you had a question or problem to be solved. You would swear that you were hearing an accent from some far away place, but he introduced himself as Joe. Worse, you heard that your call was very important, but they didn’t invest in enough agents to answer it. The message they convey is that there is an unusually high call volume so you should consider checking the company web site. In other words, please hang up we are not staffed well enough to answer your call.

Good news, there’s another model out there. Alpine Access, a local company, and others are promoting another way of doing business. They are promoting something I call “home sourcing” an alternative model that hires American workers who work at home. These workers are better educated than typical call center workers. They tend to have many more customer service skills so companies who really care about customer loyalty are signing up for this level of telephone service.

The call center business focuses on one of two things. Some companies want to minimize expense and that’s their focus. They tend to hire offshore operations to just get through the call as fast as possible. Other companies see the conversation on the phone as a defining experience that provides an opportunity to improve the relationship between the customer and the company.

The secret of the call center business is to hire the very best people possible and empower them to serve the customer’s needs. By hiring top people the company doesn’t have to teach them to relate to the customer. Individuals whose life experiences more closely mirror the customers they are serving understand how to do that.

With their work at home model, such companies have a recruiting edge on traditional bricks and mortar operations, so they choose only the very best people. In the face of millions of lost jobs, Alpine Access is planning on hiring several thousand individuals this year whose commute is no further than to their nearest computer. They will be able to utilize the interpersonal skills they have learned over a lifetime to build better relationships for their company’s clients.

So maybe your call is important to us after all.

Bad Service is Hard to Sell

January 12th, 2009

I recently read the quip, “Service isn’t what it used to be; it never was.” One approach to service in the auto business is to include it in the price of the car. BMW and Mercedes do this the best and they generally deliver very high levels of service. Selling prepaid service is not a particularly new idea. Sears has been doing it for years in their appliance business and may other retailers attempt to sell product protection plans just in case your product breaks or otherwise becomes inoperable. Part of what’s being sold with the prepaid service is piece of mind. I say that now, but learning this was a hard lesson for me.

As Operations Manager for the Michigan retail stores, a significant part of my responsibility was to oversee the various service departments which served the customers of the Michigan stores. Ultimately the profit or losses of these service units folded into the profitability of the stores. Actually it was a very significant factor and the poor performance contributed to the profit ranking of the stores as 39th of 42 regions within the company. Obviously, improving the performance of the service units was a very high priority for me.

Of course, there were many factors in the poor performance of the service departments, but the most obvious need for improvement was in the area of selling prepaid service called maintenance agreements. The Detroit stores were particularly bad; in fact they ranked last in the entire company. Store salespeople either couldn’t or wouldn’t sell these agreements. The high levels of appliance sales from these very large sales producing stores, made it very difficult for the service department to compete with units in other parts of the country.

I attacked this problem with vigor. We had sales contests and many other promotional events to cajole the salespeople into doing a better job. No improvement. We had our people ride with service techs so they could see first hand how the service business was conducted and how important it was that we serve the business well. No improvement. Then we got tough. We told our people that selling these agreements was part of the job and if they were not able to do this successfully, they might not be right for that important and high-paying job. No improvement. This was not a short-term problem. It had existed forever and it seemed that it would continue. It was clear to me that without significant improvement in this important area of our business, the profit improvement we needed would not occur. Other regions made millions of dollars annually in service, but we never booked even a half million dollars.

Finally in desperation I agreed to visit the Memphis Region which led the nation in the sales of these agreements. I remember that I was not eager to make this trip. I doubted that there was anything I could learn there. This Detroit problem was just something that came with the territory, and would probably never change.

When I first arrived, I was directed to the call center where customers called to describe their service need and arrange for service to correct their problem. At first, the calls sounded the same as our calls, but after listening a little more carefully, I started to hear things I never heard in Detroit. Customers were asking for next day service and the folks on the phone were agreeing. Back in Detroit, we couldn’t possibly grant such requests. If we got to the customer’s home in less than 4 or 5 days it was considered a good response.

I checked the percent of time that the service call had to be repeated because the service van didn’t have the right part on board. Their percent of this was negligible, while ours was very high. This meant that their investment in stocked parts must be much higher than ours. While I saw the differences, I was unable to translate that into profitability at first.

As I talked to the managers, it became obvious to me that their level of service to their customers was so much higher than ours. Their service levels made selling the piece of mind that prepaid service offers a short jump. In Detroit, selling piece of mind was next to impossible because of the very poor level of service we provided our customers.

Another important factor in the service level we gave was the lack of confidence our service people had in our leadership. Our technicians were unionized and the conventional wisdom was that they didn’t care about the company. The truth was that the company had not communicated to them that they cared about the company’s customers or the technicians that provided that service. We rented a movie theater and brought in all 700 of our unionized technicians. I told them that the meeting would be a short one. We had decided to be the best in terms of service, but admitted that we didn’t really know where to start. We asked for their help and told them we had instituted an 800 number to record their suggestions and had appointed a bright young assistant manager who they respected to sort through the suggestions. I promised that every reasonable suggestion would be seriously considered.

The calls started slowly, but finally they came in. Give us more technical training, have the right parts in stock, update our tools, fix our old and decaying truck fleet and many more. We did them, but we also demanded that customers tell us when they wanted us to come rather than for us to tell them when we would be there. Managers were graded on the percent of promises they kept and the number of calls that were completed with one service call.

We reported these improvements to our store salespeople, and the customers reported them as well. Gradually, the sales of the maintenance agreements began to increase. It reminded me of a rocket launch in that it took a great deal of power to see any movement. Then it rose slowly, but finally it soared.

Detroit was not the problem, poor service was. Once we began to provide the type of service our customers deserved, our people had no trouble producing at high levels. Our reward was profits over twenty times greater that the best service profit year ever.


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