Archive for July, 2008
“Restaurant Chains Close as Diners Reduce Spending” describes more downstream parts of the US economy adjusting to the recession. And that matters if all your business “eggs” are in one basket.
If your business touches those lately hit by the downturn, you’re already feeling it. Hopefully, those in charge of your firm’s diversification have planned for it in advance .
If you’re a service contractor, and the bulk of your business is serving customers like those chain restaurants, you’re probably looking at new vertical markets. Good hunting, so are lots of others.
In either case, customer or contractor, diversification of your business base isn’t a bad idea. But who thinks about it in good times?
I guess the lesson to be learned is “in good times try and remember the bad times”. But not by missing out on some portion of the gold rush.
How is your business base diversified?
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Chris Arlen
President, Service Performance
Technorati: diversification, service contractors, vertical markets
July 30th, 2008
No one starts from a blank slate when engaging service. Both the buyer/user and seller/provider come at the engagement with expectations - before the first interaction.
Determining expectations explicitly and fully understanding them is essential to successful engagements.
But it’s rarely done to the degree that’s needed. And when they’re not, lawsuits, red ink, torched reputations and hurt feelings can result.
Looking at Gap 5
In “Gap 5 & Roswell” you’ll find the key driver to service quality is Gap 5, which is from the ServQual model by Zeithaml, Parasuraman & Berry.
Gap 5 is the distance between customers’ expectations and their perceptions. The closer the gap - the higher the service quality. And once engaged, service quality is a big driver to happy business.
Yes, price and product quality count too, but once engaged price is compared to the quality received to see if they match. And product quality isn’t a major driver in services.
Starting a service engagement screams for really understanding those expectations. Before service starts.
Specifications are not Expectations
Specs define “what” is done, sometimes “when” and by “who”. But rarely do specs spell out how exactly the results buyers/users want. Even if they do, there’s a world of different interpretations.
Sellers/providers can work through processes with buyers/users describing their expected outcomes in writing, even by pointing to physical examples to agree on what they’re seeing.
SLAs & KPIs are Not Enough
Service Level Agreements (SLAs) and Key Performance Indicators (KPIs) are great tools and necessary components for determining expectations. But there’s more to it than customer satisfaction and inspection scores.
Understand Communication Preferences
How and when expected information is communicated is also a part of buyers/users expectations.
Sellers/providers must find out how and when buyers/users want to be contacted. And in what circumstances.
Emergency Contact Lists are Not Escalation Protocols
Sellers/providers must get specifics from buyers/users about triggers for communicating incidents in progress. Security services and IT providers typically do this well.
However, all service providers should document a series of common incidents that can happen and find out their buyer/user wants to hear about it and when. Best to work this out during the pre-start up phase of a contract/provider transition.
Asking is a Great Way to Raise Awareness
When sellers/providers ask for these specifics from buyers/users it points out several things, all good:
1) This seller/provider is proactive, process-oriented and experienced enough to deal with more than the incidents - but also to keep their buyer/user in the loop and blood pressure down.
2) The buyer/user gets to think about how they want to work with their seller/provider. As a result the working relationship has a better chance for smooth interactions during tough times.
How do you determine expectations?
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Chris Arlen
President, Service Performance
Technorati: Gap 5, KPIs, ServQual, service expectations, contract services
July 26th, 2008
I recently worked with a client on an annual report, which doesn’t sound earth shattering by itself. Until one realizes he doesn’t work for a public company. He’s the President/CEO of a regional security guard firm.
He’d started with the company 9 months ago and wanted to formally communicate his achievements to the owners.
The professionally printed and bound report highlighted financials, technology improvements, service innovations, and sales and marketing efforts.
This was a smart move on his part - to explicitly get recognition.
Wherever you are on the food chain, you’re accountable to somebody - to your boss, shareholders, customers, employees, regulators, the environment, the public at large. Any and all of the above.
How is your personal performance communicated?
Most businesses attempt an employee performance review annually. But those reviews can be perfunctory, or skipped altogether when the latest crisis calls all hands on deck.
Then you’re left with another year of great work and accomplishments, but unsure if anyone upstairs knows your name.
Upwardly mobile career path
Ever wonder why some executives rise up corporate org charts faster than other, more qualified ones?
It’s due to their skills communicating personal success. And although it’s self-serving, it’s made not to appear so. It’s described in terms of the business’ success. And they were its engineers.
Create an Individual Annual Report
Take a page from the fastest rising among us - communicate your success. As it helps your business and stakeholders get what they want.
1) Create a 1-page annual report of your achievements.
Make it easily read within 45 to 60 seconds. Stay away from dense text paragraphs. Make it fact-filled with bullets, charts and tables. Define accomplishments.
2) Send it to your boss shortly before your annual review.
You can then spend your time talking about your future. And how you’re going to help the business further, and in the process make your boss look good.
How do you communicate your success?
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Chris Arlen
President, Service Performance
Technorati: annual report, career path, personal performance
July 20th, 2008
…the act of misleading consumers regarding the environmental practices of a company or the environmental benefits of a product or service…
Bandwagons are for jumping on.
And Green is playing loudly everywhere, especially in the facility services arena.
Greenwashing was inevitable. There’s always a population of businesses and individuals trying to capitalize on deception and misinformation.
Why? SourceWatch lists a number of reasons why companies greenwash, but the one they list I believe is the main driver is:
“…seeking to expand market share at the expense of those rivals not involved in greenwashing; this is especially attractive if little or no additional expenditure is required to change performance; alternatively, a company can engage in greenwashing in an attempt to narrow the perceived ‘green’ advantage of a rival…”
Not all green marketing claims are false. But add a healthy dose of cynicism and some investigation to the claims.
And it’s never black and white for those who are, and who aren’t greenwashing. There’s always a location on a sliding scale that gives a rationale for claiming Green.
Is it using a few Green Seal products? Or is it being certified ISO 14001:2004 at all a companies locations?
Who’s to say?
In the very near future Green will be a requirement, like following OSHA. Really, who markets their contract business is OSHA compliant. It’s a given, an expectation. So it will be with Green, evenutally.
But for now, here’s an excellent guide to greenwashing (it’s a large file, 2.82 mb) from Futerra Sustainability Communications. Though written for the U.K. it gives a great window into greenwashing.
Where have you seen greenwashing lately?
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Chris Arlen
President, Service Performance
Technorati: environmental marketing, Green, Green cleaning, Greenwashing
July 12th, 2008
The title above is a quote attributed to Mark Twain.
And life now a days is just as befuddling as it was in his time. Media and experts pour out spin that can overwhelm our native intelligence.
Sometimes things are as simple as they appear. And that’s encouraging when wrestling over a complex decision or planning something.
Here are several examples of what appears to be lapses in common sense.
Too many Starbucks?
Starbucks is closing 600 stores because they’re unprofitable.
“For years, Starbucks was known for aggressive growth, opening some stores only a few city blocks away from others.”
Too many stores too close together? You’ve seen it. One Starbucks within frappucino distance of another. Starbucks fell to their own propaganda.
Auto crisis follows rising gas prices?
Car Sales at 10-Year Low.
Evidently gas prices affect auto sales. Sound new? Here’s a personal story.
My father purchased a Chrysler dealership after years of being a very successful salesman. He’s in his new dealership for six months when gas prices rise above levels anyone can imagine.
Now, all of a sudden big cars and trucks aren’t selling. Gas is too expensive. And Chrysler doesn’t have enough high-mileage cars to sell. Chrysler hamstrung dealers because they didn’t see it coming and aren’t prepared. As a result, my father gets rid of the dealership.
This took place in 1973 - not 2008.
Today, auto makers’ common sense appears to have been OTL (out-to-lunch) since OPEC‘s oil embargo 30+ years ago.
Two more thoughts while I’m at it
“All other things being equal, the simplest solution is the best.”
Occam’s razor
“If you can’t explain something to a 5-year old so they understand it, you don’t understand it yourself”
…paraphrased from Kurt Vonnegut
Where else do you see common sense hiding?
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Chris Arlen
President, Service Performance
Technorati: common sense, Kurt Vonnegut, Mark Twain, Occam’s razor, Starbucks
July 2nd, 2008
