It's not about the money

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Last week we talked about the need to bend company rules when a heroic action is needed (click here to read the issue).We posed the following questions: "Under what circumstances would your company be willing to go out of its way to be a hero to your customer or member? If so, what was the result? And on the flip side, what happens if you don't?"

This week's story was submitted by a reader about the "flip side." We've left out the names to "protect the innocent." The story highlights what happens when a company is NOT heroic, and how a focus on money and departmental budgets in the short run result in an unhappy...and ultimately lost...customer or member in the long run.

We all benefit in learning from others' examples, whether in what to do or what NOT to do. Don't worry, your secret identity is safe with us! Just click here to share your story.

Lisa and the Creative Abandon team

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My story is not about a positive experience, but about how and why un-heroic decisions are made.

Our company has been growing significantly for the past years. This has caused many changes in management and management styles. The company is under pressure to maintain expenses as well as release new products.

We are currently releasing a new product that has the potential to provide significant revenue to the organization. To launch this product requires the coordination of several departments to ensure that customers are adequately trained on its use, and that the equipment is installed and in proper working order. The first units have been installed at some customer sites, and the organization has been using these customers for Peer-to-Peer selling.

During this initial product usage, customers noted some problems with the design of the device. The problems were reported and changes were implemented. But to fully correct the problem, several departments again have to coordinate efforts...and here's where the problems lie.

Each department is jockeying to avoid incurring the expense of the update. Customer needs are not getting met for the sake of each department's short-term needs. Our customers are caught in the middle, and are growing increasingly impatient with the time it's taking to resolve the problems they reported. And remember, these are the customers who were supposed to be talking up the product to other customers, peer-to-peer!

This foolish "passing the buck" on who incurs expenses has the potential to cost the ultimate price: a customer and their future sales. However, instead of keeping their eyes on the long-term prize, company incentive plans focus on short-term goals: efficient expense management for each department in the short term, an outlook which directly conflicts in this case with the goal of excellent customer support.

Yes, we all need to manage expenses appropriately.This is a prerequisite of an effective manager. To be successful decisions need to be based on the desired outcome, not the personal gain. To be heroic, short-term expense should be a secondary consideration to the number-one goal: a satisfied customer.

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