September 16, 2010

Five (More) HUGE. HUGE. HUGE. Things Not Taught in Business Schools

Here are five more courses that should be added to all business teachings:
1. ‘Right’ solutions rarely exist
2. Successful Failing
3. The ‘Customerized’ Organization
4. Screw-ups build customer loyalty
5. Ignore the competition

Teaching Points:
> The ‘Right’ Solution. I have a math degree and came out of university believing that there was a definitive solution to every problem. Imagine my dismay when I went into the business world. Regression analysis yielded forecasts that were flawed. Differential equations had no practical use. In business, the ‘Right’ Solution is the one that can be successfully executed. It may NOT be theoretically pristine. It’s strategic essence may lack a dimension or two of perfection. BUT people are willing and able to bring it to life. So it IS the ‘Right’ solution given the specific circumstances of the organization. What works in business is finding a solution that is just about Right and executing it flawlessly. EXECUTE. EXECUTE. EXECUTE.
> Successful Failing is screwing up BUT learning from it so value can be added to the intellectual property of the organization. In fact one could argue that the objective of Innovation is to Successfully Fail as often as possible thereby increasing ideation and the chances of success. Want to impede progress? Punish failing. Corollary to this teaching, however, is never fail at the same thing twice! It means you didn’t learn anything the first time you failed.
> The Customerzed Organization puts the CEO at the BOTTOM of the organization chart. This is the design criteria of the Serving Leadership type of structure where the underlying culture is to serve people who serve the customer. The frontline employee is at the TOP of the structure with the most critical leadership position, the Frontline Leader, right below them. Management’s role changes from Command and Control to Lead and Serve.
> Screw-ups build Loyalty if an organization has a Dazzling Recovery Strategy. The formula: Fix the problem AND do something the customer DOESN’T expect. Its all about the WOW factor. People expect you to fix a mistake you have made - and remember the ‘I’M SORRY’ entry - but they don’t expect you do go the extra mile while doing so. If you do, they will be blown away, tell others how great you are and stay with you in spite of your screw-up. Ever had a Dazzling Recovery course?
> Ignore the Competition and pay attention to the customer. There is too much emotional energy consumed worrying about the competitive hordes entering your markets to compete with you. Erecting Barriers to Competitive Entry is a part of every Marketing program. Creating Barriers to Customer Exit is not. Crazy. Take your eye off your customer and you give license to your competitor to put their value proposition in front of them. Lavish your customers with love and attention and create the shield that repels the bad guys. Focus on your customer. Observe your competitor. BE DiFFERENT.

Cheers, Roy

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Related Blog Articles
1st Five Things Business Schools Don’t Teach
2nd Five Things…
Customerized Organization Structure
The Apology
Does Your Organization Serve the Customer?
Barriers to Entry or Barriers to Exit?
Planning on the Run
Dazzling Service Recovery

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Posted 9.16.10 at 08:00 am by Roy Osing | Read Comments (1) | Leave a Comment