Client Newsletter - Second Quarter 2009
IN THIS ISSUE

Leading in a Recession

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Service Creates Loyal Customers

In the current economic environment, it is more important than ever to keep customers happy and coming back. An article in News and Food Report recommends these seven ways to keep your customers happy.

  1. Solicit complaints. For every person who complains, 26 who feel they have been mistreated do not. Make it convenient for customers to complain and treat them with respect when they do. You can win back most of them by resolving their complaints and, in some cases, make them more loyal.

  2. Indoctrinate all service employees, not just managers. Supervisors need training but so do the lower-level employees who provide customer service face to face.

  3. Hire people who don't feel that service is servile and whose values and personalities make them want to provide friendly, helpful service.

  4. Commit the company to customer service by word and deed. Regularly remind employees of the value of good customer relations -- and reward them when they carry through. Evaluate managers on their ability to achieve customer service objectives that are part of their overall job objectives.

  5. Educate employees to provide customer service. Employees aren't born with the required skills and attitudes. If left alone, chances are they will be oblivious, overbearing and unwilling to give good service.

  6. Use simple, inexpensive, entertaining training media. Video is an effective communication tool for the TV generation. Written materials must be simple, clear and concise.

  7. Treat employees like worthwhile, sensitive, deserving human beings -- just as you expect them to treat your customers. People will behave as they are treated.

Leading in a Recession

Leadership makes a difference. In these challenging times, the right leadership behaviors not only make a difference in your sales results, they also allow you to prove yourself as a manager. So what are the "right" leadership behaviors for these turbulent times? Last year, Forum Corp. researched management in a recession, looking at the things leaders can do to improve performance in a downturn. Kerry Johnson, executive consultant to Forum, says the research found four recurring themes.

  1. Positive outlook and engaging climate. Climate refers to our perception of the work environment and what it feels like to be in a place. Managers represent 70 percent of the variance in the climate, which means a great climate is essentially the result of great management. To get there, leaders today must create a climate that engages their team and keeps their focus on the things they can control.

  2. Narrow the focus. These days, it can be tempting to tackle a multitude of projects, but that approach dilutes focus. Rather than trying to solve all your problems at once, select a few key issues and pour your efforts into those. You'll have more success, more quickly, by narrowing the focus this way than by trying to fix everything. Not sure where to start? Talk to your customers. "Re-examine how you create customer value and what your customers find valuable right now," says Johnson. "Getting honest feedback helps you know where to focus."

  3. Bring people together. When times get tough, people tend to go into survival mode, protecting their turf, engaging in negative politics, and putting their own interests ahead of the organization. Yet tough times are when cooperative behavior is most needed. Right now, great leaders are dissolving boundaries and building relationships between internal departments. "Tap into the collective expertise of all employees rather than just a few at the top," advises Johnson. This is easier said than done because you first need to create an atmosphere that makes employees feel safe in raising questions and ideas.

  4. Manage the temperature. This element of leadership has largely to do with authentic communication and the importance of involving others in decision making. Don't try to be the hero by shouldering the entire load of problems in your department. Instead, involve your team by communicating regularly and openly about what's going on in the company, in the market, challenges your organization is facing, and so on. Seek their input and ideas and then show them how their contributions are making a difference, both in the organization and personally. Your candor and openness puts you in a position of strength, not weakness, says Johnson. And besides, he adds, "In the absence of candor, people will make things up."

According to Forum's research, leaders who take these key actions during economic downturns settle their organizations, keep them headed in the right direction, and ultimately, emerge on top.

For more information, visit www.forum.com

*From Selling Power newsletter

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