The Heart Of Business

By Craig S. Galati

In the fall of 1982, Johnson & Johnson voluntarily pulled one of its best selling products, Tylenol, from store shelves because seven people in the Chicago area had died after taking cyanide-laced Extra Strength Tylenol capsules. It was determined that the product had been tampered with after it left the manufacturing facility, and although Johnson & Johnson was not to blame for any of the deaths, it immediately took steps to remove the product and to send messages through the media not to use the product.  This move by Johnson & Johnson was one of the largest voluntary recalls of a product in history, involving approximately 31 million bottles of its product. 

But Johnson & Johnson did not stop there.  It offered to exchange all Tylenol capsules that had been purchased for Tylenol tablets.  Although this proposition cost Tylenol millions of dollars, one executive was quoted as saying that it was the right thing to do.  In addition, Johnson & Johnson offered a $100,000 reward to help catch the murderer, and immediately suspended all Tylenol advertising. 

Johnson & Johnson was not forced to do these things.  Many people cite the Tylenol example as one of the greatest public relations efforts in history — and it was.  But the original recall was based on safety concerns for the general public rather than concerns for the company and its profits. 

Contrast this with the recent events involving the Endoscopy Center of Southern Nevada in Las Vegas.  More than 50,000 patients of the clinic were potentially exposed to Hepatitis B, C and HIV from March 2004 to January 2008.  The Southern Nevada Health District identified at least six confirmed cases of hepatitis C that stemmed from procedures performed at the clinic on the same day. 

How did this happen?  To cut costs, nurses and doctors at the Endoscopy
Center reused single dose vials of medication on multiple patients.  It is believed that this practice tainted the medication and that tainted medicine was passed on to other unsuspecting patients.  To save about $2 per patient, the Endoscopy Center placed at least 50,000 people at risk of contracting a serious disease.

But it’s worse than that.  The Endoscopy Center did not step up to the plate when the problems began to surface.  It did not suspend all procedures until the situation was fully understood and corrected.  Instead, it issued a public apology and vowed not to do it again.  The City of Las Vegas eventually closed the clinic.

Since then several nurses have come forward to tell how they were instructed to cut corners, even though they knew they risked contaminating patients with life-threatening communicable diseases.  Also, since the center’s closing it has been found that surgical instruments were not properly cleaned, and that some procedures were performed in less-than-appropriate environmental conditions.  It is hard to believe that the moral and ethical obligations of health professionals could be ignored to this extent. A doctor formerly associated with the clinic said profits were placed higher than the obligation for public health and safety.

Today, Johnson & Johnson is a thriving company and Tylenol remains a leading brand.  Most people born after 1982 have never even heard of the Tylenol crisis.  Johnson & Johnson did the right thing and it is successful today.  It led the way in developing the strict anti-tampering packaging that helps protect consumers today. I have no fear of taking Tylenol even though I clearly remember the Tylenol crisis.

Let’s hope that The Endoscopy Center never opens again.

I’d like to hear from you:

• Can you remember a time when your company’s ethics were challenged?  How did your company handle the situation?

• Can you identify a situation when you observed a company acting in the “right way”? 

• Do you believe that corporations can act ethically and still succeed? 

Next time we will explore these questions. Until then …

Craig

by Craig S. Galati 

If I hear another commercial espousing a company’s “Greenhood” by offering carbon offsets, I think I’ll puke! 

Land Rover says it cares about the environment so much that it will plant a tree for every vehicle sold to help offset the carbon emissions of that vehicle.  I recently rented a car at Enterprise and was asked if I wanted to pay an extra $1.25 to help offset the emissions from the car I was renting.  Perhaps offering a low emission or alternative fuel vehicle would be more appropriate.  Or better yet, how about investing in research and development for a vehicle that doesn’t use fossil fuels?  Or how about investing in alternative transportation methods that would make the buying or renting of a vehicle unnecessary?

A carpet company sales representative recently came to my office to present a wonderful product–a new 100% recycled carpet tile.  I was really impressed until I saw the sales representative leave in his Hummer H2.  As I watched him drive away, I wondered if the product really lived up to its billing.

Almost everyone has jumped on the “green” bandwagon.  That’s the good news!  But are these companies really interested in the environment, or is being “green” just the new chic and a way to gain more market share for their goods and services?

I recently received a very large, very thick, direct mail piece from a company touting its sustainable approach to design.  The piece was printed on 90% post consumer material, so I suppose the company is “green.”  While I appreciated the beauty of the marketing piece, it probably was the wrong medium to tout its “greenness.”  To me, the message was lost and, quite frankly, so was the company’s credibility.

There is a very large, new town being planned approximately 60 miles north of my hometown of Las Vegas.  This new town will use water pumped from a couple of rural counties hundreds of miles away.  The town is expected to eventually house 150,000 people and will include 17 golf courses.  The homes are being advertised as ENERGY STAR ¹ homes, and the clubhouse is being touted as a LEED² Silver building.  One of the engineering firms working on the project recently asked our firm if we could help it integrate sustainable strategies into the piping and pumping design for the water transmission system.  Piping water from rural farmland to a new town in the middle of the desert sustainably.  What an oxymoron!

I’m not a Birkenstock-wearing, organic farming, sage tea drinking environmentalist (OK, I like sage tea), but even I can see through this greenwash.  All is not lost, however.  There are many new companies that are matching their values with their actions.

Borrego Solar Systems in El Cajon, California only uses vehicles that use biodiesel.  And it only buys from companies that produce locally or utilize alternative fuel vehicles for shipping.  Earth Mama Angel Baby from Clackamas, Oregon only uses recycled containers to package its organic line of products for pre-natal and post-natal women and their babies.³  New Belgium Brewing’s entire Colorado brewery is 100% wind-powered, making it the first brewery in the United States to be fossil-fuel free.⁴

These companies have found a way to be true to their beliefs in the environment.  But I’m even impressed by little things like receiving an electronic version of a marketing flyer or a newsletter.  I even make a point to read them just because I appreciate the effort.

Here are some things to consider for your company:

If you are saying you’re green, then act that way. Remember that your actions always speak louder than your words.  Align your green message with the beliefs and values that you are willing to live.

Don’t just feel good, feel good about really doing something. There are many things you can do that of which you should be proud of.  Remember the old-turned-new-again saying–Reduce.  Reuse.  Recycle.

If you are really green, you won’t need to promote it. If you have aligned your practices with your belief in environmental stewardship, it will be self-evident.  If your brand is self-evident and authentic, people will already know of your green values and you can save that marketing dollar for something more important and purposeful. 

I’d like to hear from you:

• Can you share examples of (green) companies walking the talk?

• Have you considered being (green) as a value and not just a marketing strategy?

• Do you believe that you can be (green) and still be profitable?

Until next time …

Craig

¹ ENERGY STAR is a joint program of the U.S. Environmental Protection Agency and the U.S. Department of Energy that rates and promotes energy efficient products and practices.

² LEED is Leadership in Energy and Environmental Design developed by the United States Green Building Council, a program that rates buildings by their environmental and energy conserving strategies.

³ BusinessWeek Small Biz Magazine, Mission Possible by Anne Field, December 2007/January 2008 edition.

⁴ Stirring it Up, How to Make Money and Save the World, Gary Hirshberg, Hyperion Publishing, January 2008.

By Craig S. Galati

I’m sensing an interesting dynamic within my firm these days. It appears a changing of the guard is in order. I believe that the next generation is poised and positioned better than my generation was. People in my generation seldom admitted when they didn’t know something. However, those in this new generation recognize when they do not know something and are not afraid to ask for help. People in this new generation are looking for employment experiences that augment their current understanding. We looked for job security, while they are looking for learning opportunities and freedom.

Like so many before us, we are having a difficult time understanding the next generation. While I understand and appreciate the younger folks’ need to strive for balance between what they need and what their employers need. I am somewhat concerned that the organization that we know today may not exist in the future. People in my generation gave themselves unselfishly to the companies for which they worked. Our identities were defined by these companies and we viewed work as much more than just our calling or our sense of duty. We became tied to those companies and gave tirelessly, even sacrificing our own personal lives to help make the companies succeed.

The new generation has set boundaries. It appears to me that this new generation’s sense of commitment is not unconditional, like my generation’s was. This has pros and cons as viewed through my lens, but since I don’t fully understand this generation’s mindset, I hesitate to pass judgment. On the one hand, I envy them; on the other, I wonder if they will be successful. But what is success? They will define it differently than I did.

Recently, a young professional working in my firm decided that he no longer wanted to live in Las Vegas, and he left the firm. While this is not necessarily uncommon, I was struck that he packed up and moved without having a new job waiting for him. This was unheard of for my generation. My peers would never have left our jobs without a new job lined up.

I’m happy for him, especially because he has the courage and confidence to make a move to the place he wants to live–and he’ll find a good firm in which to work. But, at the same time, it causes me to question whether my lens is too foggy to see things as this newer generation sees things.

My generation was loyal to the company for which we worked. People in this new generation are loyal to themselves and to the experiences they receive from the company. Not that this is a bad thing, but what does it mean to the company of the future?

Here are some things to consider as your company evolves:

Engage the younger generation in the planning of your company. Since we can be pretty sure that the next generation of employees and company leaders will view things differently than we do, involving them in strategic planning will help to expose these differences. The planning process will be a great opportunity for different generations to understand each other better and to see and appreciate their diversity. Appreciation of these varying viewpoints will help your company strive for something better than one viewpoint ever could.

Embrace a mix of flexibility, challenge, security, and tailored jobs in your company. While those in my generation don’t view work the same way as those in the newer generation, it doesn’t mean that we don’t value some of the same things. Given the opportunity, we would look for flexibility, challenge, security and jobs that fit our given talents and passions. It makes sense that if we want to keep good employees, then we should embrace the things that they are looking for in a company. Things like a flattened hierarchy, autonomy, and collaborative leadership and management.

Document the values and principles on which your company was founded. One of the things that hold diverse opinions and people together is shared vision and values. I’m sure that your company has developed a set of values and principles that set it apart from other companies. Documenting these values and principles and sharing the reasons they are important to the company is critically important for long term sustainability.

I’d like to hear from you:

• Have you been through a generational firm transition? How did it feel? Can you describe the pros and cons of the process you went through?

• Do you see a difference between the way you view work and the way others view work? Can you describe the differences? Are they generational?

Until next time …

Craig

By Craig S. Galati

A friend of mine was recently invited to be a partner in an architectural firm. He asked me for some advice regarding what to consider in making his decision.

In 1988, I was in the same position as my friend is today. I remember clearly that anxious feeling–a mixture of excitement for the possibilities and fear of the unknown. I’m glad today that I didn’t know then what I know now! I knew so little about business. I survived on pure adrenaline and naivety. I didn’t know enough not to be persistent. Not knowing caused me to read everything I could get my hands on and not filter it through already having done it. Our firm was able to chart our way as we wanted and didn’t get stuck doing things the way others did.

So back to the advice for my friend. There are three overarching themes that one should understand about moving into a leadership position in a company: passion, commitment, and the Golden Egg.

Passion. To succeed in business you must be passionate about what you do. You must believe in it so strongly that others around you get swept away by your excitement. Think of people you’ve met throughout your life. You can tell who’s passionate about what he does and who is just going through the motions.

Business will have its ups and downs; you’ll have good days and bad. Passion for what you are doing and a clear understanding of why you are doing it will get you through these times. Take the time to really think about what you are doing and be sure you have a good reason that aligns with your values.

Commitment. Commitment is one of the keys to success in business. While it goes hand in hand with passion, commitment is much deeper. Seek a clear understanding of your business and its value to you and to its customers. Clearly understand the business’s operating principles and the values that are held sacrosanct. If your vision of the future and the direction of the business are in alignment, you are at a great starting point!

Commit to what you believe. Early in their careers, most people are altruistic. Committing to business altruism is difficult, but it has great rewards. You can be committed to a higher purpose beyond your core competency and become highly compensated for your efforts.

The Golden Egg. To be and to stay in business, you’ll need to find a way to supply your business oxygen–the money to make it all work. Equally important, you’ll need to figure out how to do it and not kill the goose. Too many businesses figure out how to make a lot of money, but they do it on the backs of their employees, eventually burning their people out and losing talent and investment in the process.

Find a way to engage the hearts and souls of those who work for your organization. In my experience, this is one of the keys to long-term financial stability. Just look at the turnover rates of so called “sweat shop” companies and think of the stranded costs of that turnover and how the quality of the work is affected. Again, this goes against prevalent business practice, but strive for mutuality in your employee relationships.

In closing, look at other businesses and study how they operate. Clearly understand what you want and how your firm can be great; then find a way to connect the dots. This will allow your passions to soar, your commitment to grow, and the golden eggs to be plentiful.

I’d like to hear from you:

• Can you identify a person who is passionate and committed to his business? Do you know someone who is not? What similarities and differences do you notice?

• Why do you want to be in a business leadership position?

Until next time …

Craig

By Craig S. Galati

I have been in a creative slump for the past several weeks. Every word I write feels like labor. I struggle to find new ideas to emerge. This is not the norm. I guess the stress of business and the final push to finish my recent book has taken me to this place. I finally hit the wall. I needed a break from spontaneous creativity–besides, it wasn’t happening anyway. But I had deadlines looming and I had used up my idea backlog.

So, I read a novel! It was entitled, “Dice Angel” written by my friend Brian Rouff, and it was excellent. Although I read many books, they are mostly business books–rarely do I read anything fictional.

In Brian’s book, a guy, down on his luck turns to the “Dice Angel” to help him win at craps. He needs the money to save his career and his future. I couldn’t put it down. I enjoyed it immensely but I got something unexpected from reading it. Something exciting happened. Reading the book helped me break out of my slump! The more I retreated from my day to day life into the book, the more my creative juices flowed again. Ideas jumped out to me; ideas about things I could do at the office, things I could write about, and new avenues to pursue. Retreating from the day to day activities rejuvenated me. I took in a little “mind candy” and it worked.

I’ve always felt guilty in the past reading books or watching television when I could be working or reading something that would help me with my business. Friends and family have told me for years to slow down, take some time for myself. But I don’t listen. I have written several times that life is short and we should enjoy the journey. I should follow my own advice.

I do, however, believe in self-reflection and I spend time reflecting every day. Most of my creativity has been born during this reflective time. I have used reflection to help me break previous slumps, but reflecting didn’t work this time. This dose of “mind candy” was even more powerful than reflection.

My brother is the one who coined the phrase “mind candy” to me. He is a successful attorney in Sacramento and once told me that when work was stressful, he would take off and go see a movie–and that one small thing helped refresh him and readied him to face his challenges. He advised me that “mind candy,” in moderation, is good for you.

Sometimes people give you great advice but you don’t hear it. One needs to be open to possibilities. I’m grateful that I was open when Brian gave me a copy of his book.

I’d like to hear from you:

• Have you partaken of any “mind candy” lately?

• Do you have any other techniques to break through the wall?

Until next time …

Craig

P.S. I’ve just purchased Brian’s second book, “Money Shot” for my next dose of “mind candy.”

By Craig S. Galati

Brett Favre just retired from the NFL. I watched him at his news conference choking back tears as he told the world that he did not have the passion to continue. So, what does that have to do with business? Everything! His recent news conference is a great demonstration of being true to who you are and what you want to do. As I’ve written before, life is short–don’t waste it working on things that don’t stir your soul. Unfortunately, many people don’t take the time to think about what they want; they just go through the motions, bumping down life’s road.

I believe as business owners, leaders, or managers of our respective organizations, one of our responsibilities is to help the people who work in our organizations discover who they are and what passions reside inside of them. And if we are good at helping them uncover their hidden passions, we will find ways for them to unleash these passions in our organizations.

Business is all about people. It’s time we quit looking at people as human resources (we all know how we treat resources in our country). It’s time for us to look at people in terms of their passions and help them reach their potential whether with our organization or with another. To be able to do so effectively for others, we must have already done it for ourselves.

Back to Brett Favre. It must be hard to quit something you love and for which you get paid so handsomely. As Brett said, “I got paid to play a game and I’m thankful every day for the opportunity.” But he reached a point, both mentally and physically, where he couldn’t do it any longer. The game he loved so much didn’t stir his soul anymore–at least not to where he could continue the work it took to play in the NFL. For Brett Favre, retiring was being true to himself. Sure, he had the financial resources to retire, but he could have hung on for several more years “at least for the money.”

There are many people who would like to see Brett Favre play for a few more years, just as there are those in your organization who think they know what you should be doing with your life. But the key to enjoying life, as the Life s Good brand proclaims, “do what you like, like what you do.” All of us have the ability to be good at whatever we choose, as long as we also have the drive. The important thing is to enjoy what you are doing so that it is easy to drive forward.

I talk to many business owners, leaders, and managers. They tell me of the next generation of workers and how they are the “entitled generation;” the generation that chooses the things they deem are worthy of their attention. If true, then the old ways of leading people and our old management practices are doomed to failure.

Consider the following:

Focus on human potential not human resources. People are not expendable resources. Focus on the potential of those with whom you work and help them find their passion or calling. A person who is excited about what they do, will be great for your organization.

Act like a career counsellor, not a boss. If you are in a position to influence and help others in their career, then do so. Take an interest in those with whom you work and help them find positions in which they will succeed.

Don’t put a square peg in a round hole. I see it all the time. People are put into positions where they cannot succeed. Just because someone has tenure or because someone is technically proficient does not mean he is management material. Promoting people to positions where they cannot succeed does a disservice to them and to your company.

I’d like to hear from you:

• Do you have any tips on how to unleash people’s potential?
• Can you think of a time when you weren’t true to yourself?
• Are you in a position that allows your passions to be realized?

Until next time …

Craig

By Craig S. Galati

Everywhere I go they say it. Everything I read says it. Seems the “R” word is on everyone’s mind. Although many people believe we are either in or heading into a recession, there are also many people who view these economic times as a market correction which will turn around soon.

We have reached a critical time, one in which we can either talk ourselves into or out of a recession. I know many businesses are feeling the pinch, especially those with ties to real estate, land development, or mortgage banking. And for them, this is already very real.

The American Oxford Dictionary defines a recession as:

“A period of temporary economic decline during which trade and industrial activity are reduced, generally identified by a fall in the GDP two successive quarters (emphasis added).”

In other words, when consumers reduce their spending, there is less need for goods and services and therefore, a reinforcing loop of diminished confidence in the economy is created. Then, business owners slash prices to try to stimulate sales, which in turn causes more suspicion in the consumer market.

I’ve been through a few of these cycles in the course of my career and recognize that there are a large number of younger workers and entrepreneurs who have not. For them, I offer a few things to consider:

Stay positive. One of the most important things one can do is to stay positive during a slow down. There are many reasons to stay positive. Staying positive keeps you on top of your game, and a positive mindset is just as contagious as a negative mindset is. When a person stays positive during a tough time, he become an inspiration to those around him. He helps instill confidence in his business, co-workers, employees, clients and potential clients. You never want these folks to lose confidence in your business and if you are still confident, they will be, too.

It is difficult to close new deals when you have a negative outlook or if you appear depressed. Now, I’m not saying you should stick your head in the sand and ignore what’s going on around you, but a positive outlook will help you weather the slow down.

Don’t cut your prices. An engineer I know described an article she read recently in which several professionals said they felt cutting their prices were the way to get through an economic slow down. I heartily disagree. According to BusinessWeek SmallBiz Magazine, cutting prices may boost sales in the short term, but could spell trouble in the long run. “When the market turns around, you’ll be stuck with more price sensitive salespeople and customers and less profit.”¹

Focus on value. Now is a great time to focus on the value of your services instead of the volume of sales. During a slow down, there will be more competition. Competition is good because it makes our companies better. Look at ways that your services and products can provide higher value to your clients — and use value to differentiate your firm now and into the future.

The little things really matter. Not that they didn’t matter before, but during a temporary slow down, the little things really matter. Focus on client service, focus on making great impressions, and focus on building relationships for the long term. Call your existing clients. Let them know you care and ask them for honest critique. If you’ve gotten fat and happy during good times, look at your business critically and use this slow down to get better at what you do. Use this time to build a stronger customer centric culture within your organization.

Remember. Learn from the things you are going through now. Look at the things you may have done to contribute to the slow down. Talk about it with your colleagues to build institutional memory. Business is cyclical and most likely you will see another slow down or two again in your career. The things you remember will be invaluable in positioning your firm to weather the next slow down.

Look at the positives. You will get through this, and you and your company will be better for it.

I’d like to hear from you:

• Do you have any tips to “R” proof your company?

• What trends are you seeing in today’s economy?

• What did you do last time you went through a slow down and do those lessons apply today?

Until next time …

Craig

¹Don’t Let the Down Turn Get You Down; Amy S. Choi and Jeremy Quittner, BusinessWeek Small Biz February/March 2008,

by Craig S. Galati

I’ve learned over the course of my career that there are two kinds of promises: soft promises and hard promises.  Soft promises are those we don’t really have to fulfill. For example, you’ve probably found yourself, upon leaving a function, telling someone that you’d call them for lunch or to go golfing, knowing that you’d probably forget to call, or not even intending to call. The other party knows it too, but there is no real consequence for not keeping the promise. We all make these kinds of promises, and because both parties know that the promise won’t be kept, this behavior is culturally acceptable.

A hard promise is one that, when not fulfilled, has a negative consequence. If you tell someone you’ll deliver a project by a certain time or attend an important meeting, there are ramifications if you don’t follow through. Not only is your reputation affected, but your relationships can be damaged. 

So why don’t people keep the hard promises? One reason is that some people let their daily task lists get in the way of the promises previously made. We live in a fast-paced world where there is always something urgent to do.  Another reason people don’t keep the hard promises is that over time people desensitize themselves to the importance of fulfilling hard promises by habitually not fulfilling the soft ones. Once you establish an attitude that devalues the soft promises, your perspective on hard promises can erode as well. It is a vicious cycle and one that can erode your career.

Here are some things to consider to help you keep your promises:

Practice discipline. People who have fallen into the trap of not fulfilling promises aren’t bad people.  They have just become undisciplined in their thoughts and actions. They have become more accustomed to telling people what they think people want to hear and less accustomed to considering the implications of the promises that they make. This creates a slippery slope that will take discipline to climb. Take the time necessary to understand your commitment so that you make better decisions and in turn, better promises.

Words matter. I’m sure that not a single one of us would tell a client, “I’m going to deliver your project two days later than I tell you.” Yet many of us do deliver late, violating the promise. Think of your actions in terms of the promise given; make a promise you are sure you can keep.

Stay focused on important things. Each day we are hit with many things to do.  Our task list grows out of proportion with the actual urgency of these tasks. Stay focused on the items that are truly important to you and your clients.  I suggest rather than just keeping a to do list, that you develop a promise list and hold it to a high level of importance.  Be careful of how many promises you make.  Take a critical look at your list and be honest–can you really commit to this new promise?

People don’t trust those who don’t fulfill their promises.  Have you ever been in a meeting where a chronic underperformer promises to do something?  You can almost hear people’s eyes rolling back. Everyone is thinking, “Yeah, right, sure.”  Don’t become the one who loses trust by not keeping your promises. It takes a lot more work to regain someone’s trust than it does to lose that trust in the first place.

I’d like to hear from you:

• Do you take the time to fully understand the situation before you make the promise?

• Have you ever not been able to fulfill a promise?  How did you feel?

• Do you know someone who worked his way out of the trap of not keeping his promises?  What techniques did he use?

Until next time…

Craig

By Craig S. Galati

As many of you know, I wrote a book in 2005 entitled “Admit it! - 21 things you already know but apparently have forgotten regarding client service.”  While client service is still very important to me, I haven’t thought about the book very much lately.  But recently, Mark Buckshon of Construction Marketing Ideas posted a review of the book on his blog.¹ It was picked up by another source, JLC Online, where several people posted thoughts regarding customer service.²

Watching this discussion peaked my enthusiasm once again about the topic and got me contemplating which was the most important message from “Admit it!”  After some reflection and re-reading the book, I believe that all of the chapters point to one central theme, which I will call Client Service Mindset or the “22nd Thing” (if Steven Covey can have an 8th Habit, then I get a 22nd Thing.)

A Client Service Mindset occurs when client service becomes ingrained within a person.  It becomes a part of who you are and how you work.  As Sonny Lykos says in a post on JCL Online, client service is “living per the Golden Rule.”

Too many professionals take client service for granted, but I believe it is the hallmark of a great company and that it is the single most important thing you can do to increase your marketing effort.  I spoke recently at a monthly meeting for the Society for Marketing Professional Services where I asked the marketing staff present how many of them monitored the performance of the work to ensure that the marketing promise was delivered.  The answers were unsurprisingly dismal.

Marketers are in a unique position. They make the promise but few actually perform the work.  Yet they could follow the project and ensure that the promise is delivered. Promises are important–but delivering those promises are critical to the success and future success of our companies.  Making the promise may close today’s deal, but delivering the promise will close future deals.

Here are a few things to ponder as you develop a Client Service Mindset:

Clients talk about their experiences. If a client has a good experience, he’ll tell a few friends if asked, but if a client has a bad experience, he will go out of his way to tell everyone he meets.  Bad experiences make people do crazy things–ever see someone wearing a lemon costume at an auto dealer?  A bad client experience is hard for a business to overcome and in today’s age of rapid information transfer could be devastating to the business.

The client is always right. Absolutely not, but no matter how much you argue with him, you will not change his mind.  Clients have expectations when they interact with a business.  Our job is to understand these expectations and meet or exceed them.  To know the client’s expectations, we must ask.  If we find out that we cannot meet a client’s expectations, it is incumbent upon us to tell him and either negotiate the expectations or not take the business.

It takes great service to build a great experience. A great client experience is built upon two factors:  the service must be convenient and it must meet the client’s expectations.  Meeting these two factors gives you an opportunity to deliver an experience; something unexpected that truly delights your client and builds loyalty between him and your company.

The little things matter. I’ve found that most of the time, when I ask what a client’s expectations are, they are pretty small things that are easy to deliver.  This point is made very eloquently by Michael Levine in his book, “Broken Windows, Broken Business.”  What may seem small to us often is very important to your client.

I’d like to hear from you:

• Do you have an exceptional client service story?

• Can you remember a time when you knew you delivered the promise but missed the expectation?

• How do you develop a Client Service Mindset in your company?

Until next time…

Craig

¹http://constructionmarketingideas.blogspot.com/2008/01/admit-it.html
²http://forums.jlconline.com/forums/showthread.php?p=356773

By Craig S. Galati

They say that in business you get what you earn. While I agree, I also think what you get is dependent upon how much you risk. Business is like a crap shoot, but with more data to help you understand the odds. But just like a professional gambler, the successful businessmen look for the best risks to take, hedge their bets, and go out on limbs by betting on the long-shot occasionally.

A true entrepreneur is one who is not afraid to take risks; she is confident in her talents and abilities and knows that she can recover if the risk goes sideways. If you were to study some of the greatest entrepreneurs of our time, you will find that in their careers, they faced incredible adversity and even bankruptcy because of the risks they took; but they persevered based on their abilities and confidence. They moved on to the next great idea until something clicked.

You will find something else if you study their careers. They did not move from idea to idea willy-nilly. They worked on things that they were passionate about and that stirred their souls.

I can hear you now, “Craig, we can’t take risks, we’re doing fine and making money!”

Tell that to the photo-film industry, travel agents, and any retailer who didn’t embrace online sales early enough to remain vital.

Here are a few thoughts to guide your entrepreneurial spirit:

Don’t just stick to your knitting. Stick to what you do well and to that which you are passionate. But don’t get too comfortable with the way you work. Be open to new processes, new ways of thinking, and new customers. If you sit stagnant, some day they’ll be digging your business from the La Brea tar pits.

Don’t just innovate. Simply improving your current business practices and services are not enough to catapult your company ahead of your competition. While innovating within your core service area is important and should not be ignored, the greatest breakthroughs are achieved through daring moves. Try something exciting and forward thinking. Look at your business in both the present and future states at all times. Experiment for tomorrow as you innovate today.

Don’t be afraid. You are smart, you are talented, and you should be confident in your abilities. Take some small risks to prove this to yourself. Learn to rely on your intuition and passion.

Follow the trends. Follow the trends, but not the fashion. Look at things that may seem deviant today for the clues for tomorrow. I read an article several years ago where the author stated that all things deviant become mainstream eventually (think rock-n-roll, rap, tatoos, gambling)¹. How did these deviant things become mainstream today in our society? There may be a clue to the future hidden here.

Think of the opportunities that can move your business forward in leaps and bounds … and don’t rest on your laurels.

I’d like to hear from you:

• Have you taken a big risk in business that has paid off?

• What innovations, trends, or deviants can you identify that could benefit your business tomorrow?

• What keeps you from taking risks?

Until next time …

Craig

[1] Deviants, Inc., Ryan Mathews and Watts Wacker, FAST COMPANY Magazine, February 2002