Wednesday, July 11, 2007

YOUR FIRED!

I have updated this blog; in my research I found over 1,000 customers were fired that called customer service over 90 times a month. That number is still high, that's two times a day for 30 days.

This is a reply blog for a conversation we had in class. The question was asked, should you fire a customer? One person in particular felt a company should not fire a customer unless the customer harmed someone. While watching CNN last night I was surprised to see Sprint has decided to fire over 1,000 customers for complaining too much. The letter is posted in the first link below; the news article is second; I tried to figure out how to link the website to words but couldn't. Anyway

Why were these customers fired; because Sprint felt they were part of the reason other customers were experiencing long hold times. The customers that were fired called up to 90 times a month complaining about their billing and technical problems.

These customers were wasting the customer service representative’s time and other customer’s time by constantly complaining about the service, creating longer hold times. Hooray for Sprint!

Oh and this made me laugh. The customers that were fired were told to call Customer Service if they have any questions regarding the transfer of their number to another service or if they had questions regarding their final bill. Genius!

http://consumerist.com/consumer/exclusives/sprint-customers-terminated-for-complaining-too-much-were-scamming-sprint-for-free-service-277026.php):

http://gizmodo.com/gadgets/announcements/sprint-dumps-needy-customers-275374.php

http://articles.moneycentral.msn.com/Investing/Extra/SprintDumpingCustomers.aspx

Monday, July 9, 2007

Declining profits do not necessarily reflect an unsuccessful compay; sometimes the company just needs a new image. Take for instance, NovaRede, this company started off good by introducing the concept of “chain retail banks, consistent customer service, and innovative products,” but they needed more to reach their full potential. After an evaluation of their customers, NovaRede recognized many of them were only set up for one of their services; the remainder of the services were thru competitors. To turn this around, NovaRede began to focus their operation to appeal to customers on a higher level; by implementing an “advanced ATM technology, an innovative branch layout, incentives for employees to help customers make transactions at machines, and incentives for customers.” This strategy of expanding the business worked and NovaRede’s profits began to rise.
Many companies today also use this approach, especially banks. Bank of America offers all the services you would want from a bank; checking, savings, online banking, loans, mortgages, credit cards (with incentives.) The incentives offered include credit cards that offer cash back, airline miles, hotel points; low interest rates on loans and mortgages, etc. These incentives make it appealing and convenient for customer to get all their banking needs in one place.
Jack Welch, then CEO of GE, used GE’s annual management meeting in 1992 to expose those who where not in attendance due to violation of the organizations values. His exact comments were, “One was removed for the numbers, and four were asked to go because they didn’t practice our values.” Should employees like this be exposed to the entire company when situations like this occur? I struggled with this question for a moment. At first I thought it was very unprofessional of this manger to call out ex-employees without them there to defend themselves, but then I had to think of the impact this message had on employees. Sometimes words are not enough for people fully understand the significance of company policies; sometimes it takes something as drastic as firing an employee who has violated the values of the company in order to create an example for others. Values are important to the company and its image, when employees violate these values, consequences are sure to follow; which can include being an example for “what not to do in business.”

http://en.wikipedia.org/wiki/Jack_Welch

http://www.rhsmith.umd.edu/smithbusiness/fall2006/leadersdigest_4.html

Monday, July 2, 2007

Mandatory Review

Should reminder of core values be done frequently? The book says no, but I say yes. The values of the company run every aspect of the company; from the way employees look at customer, customers look at employees, employees look at employees, employees look at themselves; etc. Core values are a reminder of what the company expects from their employees and many times employees forget this type of information; therefore they should be reminded frequently. How frequently you ask? At least twice a year.
If this sounds like too much let me remind you of a company called Enron. Enron’s core values included words such as “respect, integrity, and excellence.” Could a simple email from the company, short meeting, or overview of core values have prevented this tragedy from occurring? I’m not too sure, but if the company had reviewed the company core values with all employees frequently it would have made the ones involved at least think about what they were doing. Now when you log onto the website for Enron all that’s left is bankruptcy notices, notices of payment to creditors and a name tarnished forever.

http://www.prague-tribune.cz/2005/11/14.htm

Values are Meaningful

In order for values to mean something, they must first be implemented within the organization. Anyone can hang a plaque on the wall listing the values of the company but until these values are practiced and held to a high regard they are nothing more than "wall art."
Although the company Cisco Systems had some hardships when the collapse of the market for telecom equipment occurred; they were able to recover by making adjustments to the company's strategy which relied on the values set early in the company. Management realized that the value system set up in the early stages of the company's development contributed to the success; therefore it was important to go back to these values.
John Morgridge, the company’s chairman, said: “The key to the values is more how they are practiced than what they say. Current key words and phrases (around the company) are customer success, drive change, open communication, fun, empowerment, market transitions, no tech religion, frugality, giving back, stretch goals, and teamwork. Some go back almost to the start and some reflect more what we have been doing all along.
This statement means that a company can become relaxed in its values, only touching on those that seem to mean the most and/or are easy to implement. When a company experiences hardships they should reevaluate what made them successful in the beginning and review these values to see where they need improvements. Company values should be more than “wall art” they should be art that is appreciated and respected.

Friday, June 22, 2007

Values and Decentralization

When people are held personally responsible in the decision making process they are more likely to make a more ethical, well thought out plan of action. Decentralization in an organization creates an environment of value, and is important for the success of a company. Decentralization involves a non-hierarchical management structure which means employees are able to make quick decisions based on what they feel will benefit the company. This type of management structure proved to be successful when Jim Burke, the CEO of Johnson and Johnson, was out of the country when a product containing cyanide killed seven customers. The Johnson and Johnson team was able to make a quick decision to recall $125 million worth of products off the shelf to protect the customer and the company’s image from being tarnished. This decision was costly to the company, but proved to be successful in the long run because it showed compassion for the customer as well as the value system of the company. Companies are still leaning from this type of management strategy; in fact it is referred to as “the gold standard in crisis control.”

http://money.cnn.com/magazines/fortune/fortune_archive/2007/05/28/100033741/index.htm

http://www.jnj.com/home.htm

Incentives for Employees

Do incentives really create better employees, or do incentives create greedy employees? I believe incentives can motivate employees to an extent, but after a while the employee will EXPECT more incentives in order to do the job they were hired to do. One article I read called, “Equity, the unifying factor - equal treatment and privileges of executives and employees,” seems to agree with my theory of incentives creating greed. In this article the author talks about corporations focusing less on individual incentives and more on meeting corporate goals.
Another article I found called, “Keeping Workers,” lists one way of motivating workers is to offer incentives. In my experience with incentives, the offer of extra money for a job well done is met with great effort by an employee to achieve task at hand; which is usually part of their job duties anyways. Once the task is complete and there is not an incentive to go above and beyond normal tasks, the employee becomes complacent and it takes more incentives to get them motivated again.
In summary, if an employee works hard, on a consistent basis, to achieve the goals of an organization, than I fully support incentives. However, if an employee is only driven by incentives, it’s probably time to replace that employee.

http://findarticles.com/p/articles/mi_m3495/is_n2_v37/ai_12070747/pg_2

http://www.sasknetwork.ca/html/Employers/workplace/rewardsandincentives.htm

Monday, June 18, 2007

Who comes first, the buyer or the seller?

You cannot have one without the other; much like the “chicken and egg theory;” so which one do you put more emphasis on? My vote is for the company. The success of a company begins with its core vales; these values define the company and develop their vision and strategy. In the book it says companies should put employee’s first, customers second, and shareholders last. Companies that realize this strategy sets them apart from competitors. In the article “Bad Customer Service is Top Reason Consumers Switch Carriers,” says it all. Competition makes it easy for customers to discontinue doing business with one company and switching to another. Just recently I switched electric companies from TXU to Amigo, “Your Friends in Energy”. The customer service I received from TXU was horrible, the prices were outrageous, and the service technicians had no sense of urgency. Thanks to deregulation of electric services, this created more competition and I was able to switch. With Amigo the customer service is great, prices are lower and my overall satisfaction is 100 times that with TXU. In summary, success begins with the core values of the company which bleeds over to the employees, then to customers; all companies should develop the concept that employees come first in order to improve customer service.

http://www.mobiledia.com/news/33661.html

www.amigoenergy.com

WANTED! Top Performers Only

Should businesses create "fewer, more significant jobs?" Absolutely. From the standpoint of good business sense, employing people that train hard and work harder will make the company more successful in the long run. Let's face it, if you have an employee that cannot pull their weight in the workplace, not only are they hurting productivity and sales, they also hurt morale. An interesting fact I found in, “End ‘equal treatment’ today! Focus on top performers;” in companies Human Resource departments, professionals spend “little to no time with top performers identifying barriers to their productivity or what factors motivate and retain them.” So, does this mean that if a company had only top performers and the riff-raff was escorted out the door, companies could save money on training programs such as Ethics, Violence in the Workplace, etc and focus more on company business than personnel issues?
When a person does not care about their position in a company and the company itself, it shows in their job performance. Therefore, a person eager and willing to learn and uses this knowledge to better their performance and those around them are more beneficial to the company than someone who considers it “just a job.” Although employers might have to pay these high performers more money, in the long run they will come out ahead due to increased customer satisfaction and increased work output. Employers can take the money they would pay non-performers and put it toward employees of “value.”

http://hbswk.hbs.edu/item/3405.html

http://www.humanresourcesmagazine.com.au/articles/0f/0c020e0f.asp

Monday, June 11, 2007

Positive Change Thru Feedback

Jerry Colley, the new North American recruit for Office Depot, hit the nail on the head by working alongside employees in stores to come up with different strategies for change in the organization. Who better to know about change than the employees and customers? Sometimes upper management tries to implement unrealistic goals to the organization as a whole because they do not understand the way the company operates and functions at the lower levels. Also, working with the customers gets a more realistic perspective on what they want in a company and the changes that need to be made to make it happen. Sometimes customer surveys are not the best strategy to get customers response for change, because many times when people fill out these surveys it is negative because they are unhappy.
For example: I called my apartment complex last week to complain about my air conditioning always being broke. While on the phone I described the problems I was having and expressed my irritation on how this problem has been dealt with in the past by previous management. At the end of the phone call I told them I was not disappointed in the maintenance staff, but in the office for the way my problem was being handled. I continued to praise the maintenance staff for the job they do and how fast the try to resolve problems…. The apartment manager thanked me for the positive comments because they consistently only hear negative feedback.

http://findarticles.com/p/articles/mi_m0FNP/is_4_40/ai_71560918

http://media.corporate-ir.net/media_files/nys/odp/reports/AR02/report/07.htm

Employee Satisfaction & Loyalty = Profit and Growth

"Profit and growth are linked to customer and employee satisfaction and loyalty." When employees and customer are satisfied with a certain company they are more likely to provide loyalty to that company.
The way a customer is treated in a store can determine whether that customer will ever return to that store again. I used to shop at a certain store all the time for my groceries. One day I went in and the cashier questioned my identity on my credit card and my driver’s license. There were 5 people in line behind me, the ordeal took about 10 minutes, I was mortified. After I left the store I never returned again. This employee was in some serious need of customer service skills, because not only was she mistakenly rude, she made me feel guilty for something I didn’t even do.
Optimal customer service has 4 important points each employee should understand while working for a company: 1) Your employees can keep their job. Remember, no customers equals no business and no employees. 2) You've created a positive buying atmosphere for both first-time and repeat customers. 3)You're able to satisfy the information or buying needs of your potential customers. 4) You're able to transform prospects into happy, satisfied customers. And happy, satisfied customers come back for more.

http://www.entrepreneur.com/humanresources/employeemanagementcolumnistdavidjavitch/article76422.html

http://www.blonnet.com/2002/05/20/stories/2002052000040900.htm

Winners Attract Winners

I agree to this statment for the most part but first you have to recognize the winner from the non-winner and hope you have made the right decision.

Wal-Mart is a company that looks for “niceness” in their employees during interviews; wonder if they ever considered that the person’s niceness was only a façade in the end? So how long does it take before a company realizes that the employees with the “winning” attitude were only putting on a front? I ask this question because many companies believe in the motto “winners attract winners.”
I used to work for a company and their idea of winning talent was being college educated; during the time I was there they brought in one college graduate, then this persons friends followed. Out of this group of 6 that walked thru the door, all of them ran around in the same crowd, graduated from the same college, and lived in the same apartment complex, yet they were completely different in their work ethic. So I question the method of winners attracting winners.

I also believe you can have too many of the same type of person working in the same environment. When too many friends are hired to work along side each other, the work environment is more like high school than business. Therefore I question the motives of some companies only hiring from referrals and word-of-mouth.
In the links below I have included some companies that use this as part of their recruiting technique.

http://www.laneav.com/aboutlane/about.asp

http://www.hrpao.org/NR/rdonlyres/64F5476B-A350-4F56-8741-EBA7DF871F05/0/HRPAOcdnbusiness.pdf

Live and Learn

Mistakes can and will occur in business; therefore management should learn, grow and implement change in the organization when these problems arise. In the case of Ericsson, the management team did not respond fast enough after the destruction of the semiconductor plant. They were too sure the company would recover without any problems, there was no sense of urgency to resolve the problem which put the companies reputation in jeopardy. The way management responds in a crisis, whether large or small, is important to the success of the company; which Ericsson found out the hard way.

The company that did have everything under control was Nokia. Nokia’s management team jumped on the issue at hand and attempted to deal with the situation immediately. They communicated with all levels of the company, the destruction the semiconductor plant impacted. I felt the success Nokia experience was due to their good communication skills; which is what Ericsson seemed to be lacking.

The mission statement from the new CEO in 2003 was presented as follows: “The overall objective for the management team is to create a strong and profitable company with focus on technology leadership, high internal efficiency and strong customer relations.” Do you think the internal efficiency part was thrown in due to the way the management team handled the situation in 2001?

http://www.crm2day.com/news/crm/EpuAlZpVupYkliwgyo.php

http://www.nokia.com/

Friday, June 8, 2007

Turnover and Company Practices

I believe you can tell a lot about a company by its turnover rate; if an employee is happy they are likely to stay with a company. Take for example Vanguard, this is a company that puts the employees before anyone and anything else. In this company they do not spend enormous amounts of money on advertising, high-priced investment managers, showy conference rooms, first-class travel, large salaries or any other kind of “waste.” So why would anyone want to work for a company without any perks? At Vangard the employees believe in “mutual respect” and are happy with being part of a “crew.”

These employees realize that money will not buy you happiness. Some may disagree but it has been proven, “Lottery winners return to their previous level of happiness after five years. Increases in income just don't seem to make people happier--and most negative life experiences likewise have only a small impact on long-term satisfaction.” I believe this to be true, money does not make you happy, happiness comes from within. I still wouldn’t mind winning the lottery though.

Many times companies do not realize why the turnover is so high. They blame existing management, management blames the employees, the company blames the industry. Companies must realize the employee should come first; because people are no longer happy "just to be employed," they need to believe in the company and feel like they are a part of its success.

I guess what I am trying to say that part of the value profit chain is to “treat employees like customers.” This is the most important step to a successful business. If the employees do not believe in the company, why should the customers?

http://retensa.com/clients/large-company-turnover.php

http://www.forbes.com/work/2004/09/21/cx_mh_0921happiness.html

The Value Profit Chain

A little trivia. Do you know which company made a $20,000 profit every minute in the year 2005? Wal-Mart. There are many other elements, besides low prices, which make Wal-Mart successful. The most important element, I feel, is employee satisfaction. When an employee likes where they work it will show on their face and in their performance on the job. Wal-Mart tries to make sure their employees are taken care of by offering them incentives to create a work environment where employees feel a part of the Wal-Mart family; they offer employees stable employment, variable hours, a family atmosphere, opportunities for personal growth, stock in the business, and the Wal-Mart chant (squiggly included.) While the chant might sound corny, I know it does to me, I’m sure it puts a smile on the faces of the employees, which is what will keep the customer coming back. These staff meetings also give employees a chance to learn about the company and how they operate.

Wal-Mart’s mission statement in the words of Sam Walton, “a wide assortment of good quality merchandise; the lowest possible prices; guaranteed satisfaction with what you buy; friendly, knowledgeable service; convenient hours; free parking; a pleasant shopping experience.” Although Wal-Mart has not always been known for their excellent customer service and clean stores, it seems they are making an effort to try to improve it. Now when you go into the Wal-Mart stores, on the debit/credit card reader, it asks you if the “employee was friendly; Yes or No.” Wal-Mart is also revamping their image by installing wood floors, subways food chains, and "reducing the clutter." This is Wal-Marts effort to compete with Target; which is considered to be a more upscale retail establishment.

http://www.progress.org/2005/tcs179.htm

http://www6.lexisnexis.com/publisher/EndUser?Action=UserDisplayFullDocument&orgId=2708&topicId=100019774&docId=l:619048575

http://findarticles.com/p/articles/mi_m0FNP/is_4_45/ai_n16089281

Wednesday, June 6, 2007

Introduction

Hi everyone my name is Shannon S, I guess I would consider myself a senior at Northwood, I have 9 classes left. I plan on getting my Bachelors degree in Business with a minor in Marketing. This is my first time to blog so I hope I'm doing it right. I look forward to learning new things so hopefully by the end of this class I will become an expert blogger... Just a little about me. I work for Lockheed Martin, have been there for 5 years. I grew up in Fort Worth, I love this town and will probably never leave. I have been attending Northwood for a little over a year now and looking to graduate by next May. See all of you in class.