Operational excellence is not enough
Operational excellence, often considered a guarantee for achieving organizational success, can be an elusive target that is difficult to attain. However, this caliber of excellence is often rooted in two key tenets that are easy to recognize:
- High quality products that perform as expected, and
- Service that keeps clients satisfied and on the client roster for an extended period.
Keeping current clients happy is always better than replacing them: an old adage states, “it costs 5x more to acquire a new client than retain an existing one.” More than two decades ago, a study found that a 5% increase in customer retention can increase profits anywhere from 25% to 95%–today, this still rings true.
Even with end goals in focus, many organizations struggle to define and attain operational excellence. Value propositions may overpromise resulting in products or services that disappoint and under-deliver. Client service may fall short of expectations, and then problems go unresolved because of a lack of prioritization or unwillingness to go the extra mile. When this happens, client retention rates suffer. PwC found in the United States, even when people love a company or product, 59% will walk away after several bad experiences; 17% after just one bad experience. Globally, 32% of all customers would stop doing business with a brand they loved after one bad experience.
As elusive as it may be for many, even if a company achieves operational excellence, it may not matter without a culture of quality that puts client satisfaction first. Operational excellence should include delivering what was promised…sometimes delivering more. Organizations with a culture of quality know operational excellence doesn’t matter if a client is unhappy. Companies must commit to creating a culture of quality, and that culture must permeate every facet of the organization. When a company commits to that culture, it can become self-sustaining.
The Four Pillars Supporting a Culture of Quality
A solid, sustainable culture of quality within any organization rests on four fundamental pillars:
Client Delight
A delighted client increases the odds they will work with you for all of their needs. Whether a job was completed correctly or not is immaterial; if the client is unhappy, they won’t want to work with you. While it can be difficult, organizations must value delighting the client above being right. When examining the objective success of a project versus the subjective reaction of the client, both are valid, but one is paramount. A company can deliver on contractual goals and still provide a poor client experience if the outcome isn’t what the client expects. The time to set reasonable expectations is during the sales phase, not once the contract is signed and work is under way.
Famous example: Disney is well known for its commitment to creating magical experiences at its theme parks. While no detail is too small (e.g., logos on the manhole covers), the most important aspect of the Disney experience is treating every guest as a VIP. They seek to understand their guests by taking the time to get to know them and personalizing their visit as much as possible.
Care the Right Amount
By making client work personal, team members serve clients on an individual-to-individual basis rather than as a faceless company. This approach encourages team members to take pride in their work as they attempt to deliver positive outcomes, but it’s also important for those individuals to objectively evaluate whether they are meeting the client’s needs.
It can be a bit of a balancing act for team members to put their blood, sweat, and tears into a project, while also taking a clinical view of client feedback (which sometimes includes harsh criticism) to avoid reacting negatively. They must be able to remove personal feelings when reviewing and incorporating feedback to deliver better outcomes and conducting root cause analyses to identify the underlying cause of client dissatisfaction.
Famous example: Apple is known for its customer service, both in-person at the Genius Bar in retail stores and online with chat, forums, and instructional resources. But before an employee can become a Genius and serve customers, they must complete a 14-day training program, with a particular emphasis on customer empathy and how to fearlessly accept feedback.
Spirit to Serve
Service companies are in the hospitality business, and those with a culture of quality ensure every team member deploys a “Concierge at the Ritz Carlton” approach, providing clients access to all of the amazing services offered. The number one rule for a spirit to serve: the client’s concerns are always valid. Even in cases where the client is objectively incorrect by the established metrics of the project, their concerns should be listened to, validated, and addressed. Team members should ask why the client feels they did not receive what they were promised and determine where the misalignment occurred. Everyone should adopt the mindset of removing client concerns and with a willingness to go above and beyond.
Famous example: Beyond the Ritz Carlton, Chick-fil-A’s “second mile service” goes beyond what’s expected in fast food: bring food to tables, check in with customers, take large orders to cars, open doors for customers, etc. If a customer is dissatisfied for any reason, staff members work to remedy the situation quickly.
Be the “Easy Button”
Every time a client calls with a concern or complaint, the goal should be to remove the concern in a way that simplifies their day. Team members should acknowledge the urgency in this request and profess to do everything within their power to make it right. Clients should only need to ask once, with team members following up methodically until the issue is resolved. The goal should be to make the client’s life easier. Never make a client regret hiring you.
Famous example: Staples (the original Easy Button) devoted itself to ensuring getting office supplies is easy and convenient and solving any office need with a single click of a button. The effortless problem-solving campaign is still going strong after 20 years.
Client satisfaction matters most
Operational excellence is a great goal for organizations to strive for, but it’s not enough on its own. It must be paired with a culture of quality, which makes operational excellence more practical and measurable and ensures it finds its way to the bottom line.
UnitedLex helps organizations achieve operational excellence through tech-enabled services, transformation, and creating the culture of quality required to make it count. Contact us today for a complimentary audit and opportunity assessment.
