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Review: What (Really) Works

July 6th, 2008

What do great businesses in common? What do bad businesses forget to do? In their book, What Really Works- the 4+2 Formula for Sustained Business Success, the authors Joyce, Nohria, and Roberson analyzed data from hundreds of different companies. Using total return to shareholders as a results, the “Evergreen” project as it was called identified 8 factors of successful businesses.

In order for a business to have sustained success they needed to exhibit all of the first four, and two of the last four, hence the 4+2 formula in the subtitle.

The four mandatory factors are:

1) Strategy- Devise and maintain a clearly focused strategy

2) Execution- Develop and maintain flawless operational executution

3) Culture- Develop and maintain a performance-oriented culture

4) Structure- Build and maintain a fast, flexible, flat organization

The four optional (remember, you only need two) catagories are.

1) Talent: hold on to talented employees and find more

2) Leadership: keep leaders and directors committed to the business

3) Innovation: Make innovations tha tare industry transforming

4) Mergers and Partnerships: Make growth happen with mergers and partnerships.

One of the problems that I have with some of these management books is that they shoot their wad after the second chapter, the one that outlines the book. The value of this book after the second chapter is arguably less that the outline, but the case studies of both good and bad companies are interesting, well written, and reinforce the premise of the book.

I think one could argue about total value returned to shareholders being the paramount sign of a good company, especially when one looks short term. The authors had to pick something, and I think it was a good enough factor, that was easy to define.

I also know that this book isn’t a panacea. Like every other business book, this one will chaffe with age. I do think it reinforces some basics, and I think it merits reading.

If you’re in Columbia,MD, get a copy cheap. Daedalus Books in Columbia had it in stock for $4.98

Customer Service, Sales

A Car That I Would Buy… Some Lessons For the Auto Industry from Southwest Airlines

July 6th, 2008

If the US auto industry wants to save themselves, they might want to take lessons from Soutwest Airlines. That’s right, SWA. Why, because much of the things that GM does is exactly the opposite of what Southwest does, and that’s why we don’t have any loyalty.

So what could a car company do to make themselves “the Southwest of Cars”.

  • Put out an easy to maintain product set. SWA keeps costs down by having a fleet of all 737s. This keeps costs down because parts inventories are reduced, training costs are reduced, and mechanics only need to develop expertise on one product.The auto industry puts out cars that now are computers specializing as cars. Because these cars have computers, it would make sense to have a diagnostic tool that an average layman could understand, and be able to access, by a USB cable, or 802.11 WIFI. Instead a whole industry is developed around developing costly tools that the average person can’t afford, let alone use. They keep us out of the know, and make us subject to their determinations of the issues, and high prices.
  • Trim a product line down to 2 cars: A sedan and a station wagon. Keep everything else the same. A simple engine with a decent amount of power, a decent radio (put a headphone input jack in), and a nice quality inside. Don’t offer options on mechanics, and offer options on trim that are fairly priced.

  • Fair Pricing for Repairs. Southwest isn’t always the cheapest, but the rules on pricing, standbys and upgrades are easy to understand, and more importantly they are fair. Southwest sets up their pricing structure so that people know what to expect when making upgrades or transfers. Your $150 flight doesn’t end up costing you $900. They have also set up the system so that customers can’t cheat one another, by taking advantage of the pricing rules.Automobile dealers get commission on the amount of cars they service, and the prices they charge. They are incentivized to charge you more, and there is little to deter them ripping you off. They control the information.
  • The Internet changed the way that the buying process worked for the auto industry. The average buyer is aware of how much the car should cost them. But we’re still in the dark on repairs. That’s wrong. Let’s make the diagnostic and repair pricing process open, affordable, and transparant.

  • Don’t Gouge us On Parts Prices: If a car breaks, it shouldn’t be something that makes a car dealership super profitable.  Car dealers  get rewarded in the short term for putting out a substandard product. In the long term, we go to Toyota and Honda, because while their prices may be expensive as well, the total cost of ownership, and amount of mental anguish is less.
  • Long Term Bumper to Bumper Warranties: Auto companies, back up your quality with a 120,000 bumper to bumper warranty. If you can’t products with components that last more than 36001 miles, then you should pay us for the repair. Keep in mind also, that if my car breaks, I’m going to need a rental.
  • Stop Those Quality Surveys: Your quality surveys are bull, and everybody knows it. Everytime I bring my car in, I get a call from someone reminding me to give them an excellent on the review. I would be shocked if I had an “excellent” experience with an auto service dealer. Sorry, but free coffee and donuts, and a color TV in the waiting room don’t cut it for me.
  • I know that what I want is not what everybody wants. Some folks like to fly First Class rather than to deal with Southwest’s fair and democratic seating arrangement. I’m just giving a business model that could make the auto companies get new business.

    Hopefully, someone will hear this, and they will have me as a customer for life.

    Customer Service

    You’d Think They Would Know Better ZD-NET and SPAM

    July 6th, 2008

    Once a year or so, I unsubscribe to everything email. Newsletters, marketing, things I want, things I don’t want. It doesn’t matter, it’s a purge, a way to get things in my inbox back in order.

    This year, I’ve only had a bad experience with one company, and to my surprise, it was ZD-NET.   Their emails keep coming, and coming, and coming, like the Terminator.

    So, I sent a nice email out to  Jason Young, CEO at Ziff-Davis pubishing.

    Jason,

    I know this is not intentional on the part of your teams, but ZD has grown so much that when it comes to email, you are a victim of your own success.

    Half of my inbox was being filled up with your publications, and despite multiple what appeared to be successful attempts to unsubscribe, I’m still getting them.

    I’m a reader, I know that ZD frequently rallies against this type of issue. Could you have someone on your team investigate the issue, and see what’s going on?

    Thanks

    Paul Misner

    I didn’t get a response from anyone on Jason’s staff, but I did have the Web Buyer’s Guides Stop coming, but other email from Ziff Davis keeps coming and coming and coming.  At least 5 more since I wrote this letter.

    The Can SPAM act requires

    that your email give recipients an opt-out method. You must provide a return email address or another Internet-based response mechanism that allows a recipient to ask you not to send future email messages to that email address, and you must honor the requests. You may create a “menu” of choices to allow a recipient to opt out of certain types of messages, but you must include the option to end any commercial messages from the sender.

    Ziff-Davis has been made aware that this is a problem, yet they are not addressing it.   What’s up??

    Note: Class Action Attorneys, count me out. I don’t want a free subscription to PC World for 2 months, while you collect a big settlement.

    Customer Service, Marketing

    What a Company Can Do to Keep Me as a Customer

    July 6th, 2008

    I started writing this article shortly after being locked in an airplane on a runway for 2 hours. The first draft was noticeably more negative than I normally am. So, here is the much calmer second draft.

    I’m a salesperson. I love it. But I’m also a customer too. And sometimes, I’m a very difficult customer.

    Sometimes I don’t live up to my own high standards. I try to achieve perfection in my profession, but it’s an unreachable goal. I’m human, but that doesn’t stop me from everyday trying to do my best.

    Ocassionaly, when I write an article like this, I’ll get an anonymous message from someone who has some complaint about my past service. Please, don’t be anonymous. Let me know what I’ve done, and we’ll see if together, we can make it right.

    OK, so here are 10 things that any salesperson, or any company can do to raise your chances of keeping me as a customer.

    1) If I call you, Ms. Salesperson, and you are not at your office, don’t leave a voicemail telling me to call you on your cell phone. Please forward your calls. (The technology is only 10 years old or so, so pick it up).Anytime a customer wants to talk to me, it’s important. Important enough that I forward my calls. If I don’t answer your call, just leave voicemail. I’m with another customer, if it’s during business hours. One number to call: 877-VPNDude (876-3833). It’s simple to remember too.

    2) If, Big Company, you have me on hold, please refrain from having a taped recording that tells me how great your company is, and don’t use that message to try to sell me anything. Each minute I’m on hold is a minute that I’m thinking about taking my business elsewhere. If your company was really great, someone would answer my call. I know that sometimes you are slammed, so at the very least, play music. I can then put you on speakerphone, and get some work done while you finish up with the other customers.

    3) Please know what makes you different from the competition, Mr. Salesperson.

    A lot of my competition doesn’t read my website. Don’t worry, I’m reading theirs. I know all about what they’re doing. I know where I’m better than them, and I know where they’re gaining on me. I know their financial picture and what the analysts are saying about them. If you want to know about my competitors, call me. I’d be happy to give you a brain dump.

    4) Read my website. Google my company. Don’t ask me what I do.

    I do my homework. It is a privilege to have the opportunity to spend time with you, and I like being prepared. I check your website, Google your company, and Google your name.

    5) Please don’t leave me a voicemail without your phone number, Mr. Salesperson. I don’t have my phone book handy all the time, but I will have your message.

    If number my competitor does that to you, remember that my phone number is easy to remember- 877-VPNDude. If they send you an email, and it doesn’t have their number, again call me, the number is 877-VPNDude.

    6) Please don’t arrive consistently late for meetings, Ms. Salesperson Most of us live and commute in DC traffic, and we know that even the best of us will, sometimes, hit a snag. Many of us have kids, and they get bloody noses or fall just when we’re just getting ready to leave for the call. It happens, but not every time.

    I give myself one hour before my first appointment in DC in the morning. If I’m running late, 95% of the time, it’s because my earlier appointment is running late. I’ll call you if that happens.

    7) If you want to sell me something by conference call or Webex, please don’t be late. If I have a team of people on a call, and I’m waiting for a salesperson, it’s costing my company a lot of money.

    I am on a conference call 5 minutes before it begins, and 10 minutes before a Webex begins. If I’m not on time, it means that my last customer call has run late. I’ll do anything in my power to let you know that.

    8) If you don’t love your product, or your job, please don’t bother to call me, Ms. Salesperson.

    I have never taken a job with a company whose products I did not love. Here’s why. Because I’d know I’d stink at it, and I’d waste my time and your time, and maybe do irreparable damage to my relationship with you. I’ve worked with products that were difficult to sell, that I couldn’t sell, but I believed in them, and still do.

    And sales… I love it. I love getting on the phone, calling you, educating you, having you educate me, writing emails, doing my newsletter and website. I work a whole lot, but have unbelievable freedom at the same time. My job uses all my creativity, I never run out of things to learn, and I get to talk to my true bosses, YOU, everyday.

    9) Fight like a madmen internally for me, when I have a problem. That’ll keep me as a customer.

    I learned this one the hard way, and it won’t ever happen again. I had a customer, the World Bank, who I absolutely loved to work with, but who was having some problems with the product I was working with. My customer at the World Bank knows more about Linux and Unix than probably 95% of us, and he probably knew more about my products than most of my first tier engineers at the time. He had a problem that I escalated to the head of support, who just sat on it, and sat on it, even though I called a couple of times to follow up. By the time I was able to get an engineer to help him, it was too late. I lost the customer

    World Bank, I can’t tell you how bad I felt losing you, but I can tell you that I’ll never lay down for anyone when I’m representing a customer.

    That being said, I’ve been extremely excited about the responsiveness I’ve seen from Product Management, and Technical Support since I’ve joined Websense. They all know me, I think I’ve only had to shout once.10) Please don’t waste my time, Mr. Salesperson, trying to sell products that don’t work for my organization.Guess what? I am always trying to find a reason that I can’t sell to you. I’ll let my product managers know that reason, and if they can’t or don’t want to fix it, I’ll be the first one in the conference room who says good-bye. And if I’m in that conference room, you better believe that I’ve done everything before my first call to you to see if I can’t sell to you.and the bonus…11) Put yourself in my shoes once in a while, Ms. Salesperson. Download your demos, try your own products, and take notes. Let your inside team know the problems, and try to get them fixed.

    Customer Service, Sales

    Tables and Power strips and Chairs- Oh My- How I Would Like to Fly

    July 6th, 2008

    I’m sitting in Islip, New York, at the airport. It’s gone through a renovation, and that’s why it sucks. It sucks because the airlines still haven’t learned to accomodate the business traveler. Or maybe they know, and they just don’t care.

    Albequerque, New Mexico. Tiny little non-descript airport. I love it! Do you know why? Because it has two things that most airports don’t have, power strips and those cheap folding tables that the Dudley Boyz are famous for. Like the Dudley Boyz, I don’t need a table to do my job, but having one makes things a lot more convenient.

    I’m at gate A2, and I look up, and do you know what I see on the second floor business loft? Nothing, because there isn’t one.!! Just a really high ceiling, that could easily be made into a second floor, with desks and tables and power, and maybe even some recliners.

    I’d be willing to pay for a nice business place. $10 per trip, 15 if you’ll give me a soda or something.

    Kanye said it, and I say it too.

    “Airports don’t care about business people”

    Hey Southwest, you’re my favorite airline. Prove me wrong here.

    Customer Service

    Let’s Fix the Toll Booth Situation

    July 6th, 2008

    I sent this email to the Governors of Maryland and Delaware. Why am I putting this on this site? Because this is about customer service!Taxpayers are customers. Tollpayers are customers, and it’s time that our time, our money, and our environment are not taken for granted because the bureaucracy doesn’t care.  If you have tolls in both directions on your highways, it’s time to revolt.  Kindly cut and paste, and send to the bureaucrat of your choice.

    Your honor,

    I’d like to respectfully request that you remove the  toll gates in one direction on I-95 and 895. With this one act, you could

    1) Reduce pollution
    2) Reduce traffic congestion
    3) Save fuel
    4) Save money
    5) Make your voters happy with something that effects a large number of them every day.
    6) Make the drive more for people who tourists who come to Baltimore.

    It amazes me that this has not been done before. I believe that you can see the logic in doing this, and realize that this is something that can be done with a minimum of state funds, possibly through a partnership with the trucking industry.

    Thank you in advance for your consideration of this request. I’m posting this note and your response on my website www.salespowwow.com.

    Paul Misner
    paul@paulmisner.com

    Customer Service, Management

    Is this a Gift?

    July 6th, 2008

    I don’t know how to think about this, so I’d figure I’d just blog it, and ask my readers.

    On our anniversary, my wife and I went to a wonderful, but expensive restaurant around us. The bill was about $250, and we didn’t get a bottle of wine, but it was definitely worth it. The waiter was excellent, the service extraordinary, a great night.

    A good friend of mine is running a fundraising event this February. She  requests donations from various businesses in the area. My friend called the restaurant, and asked for a donation.

    She did get a donation, a gift card for $25. Twenty-five bucks won’t buy someone two mixed drinks in that place, much less than a meal.  So, here are my thoughts, mixed as they are.

    1) $25 gift card is a gift, and should be accepted with gratitude.
    2) $25 is an insult, it’s worse than giving nothing at all.
    3) My friend did not relay the benefit of giving generously to her organization. It’s for a good cause, but also just about everyone in that room will fit the demographics that this restaurant needs. Other good restaurants in the area, like the Elkridge Furnace Inn, understand this, and make it part of their marketing plan.

    I guess I’ll look at the gift as a $25 donation, and give it mentally the value of a $25 donation. Thank you, restaurant. Your gift was nice and appreciated. The size of it does not particularly encourage me to go to your restaurant again, but I won’t boycott you either. Nor do I feel encouraged to mention your name, but if someone asks me about the restaurant, I will say it’s great. You haven’t been raised any higher on the list of places where I entertain clients (which would have more than made up for a good donation, I’m more than certain), but you haven’t been placed any lower either.

    Customer Service, Marketing, Sales