CRM - May 2008 - (Page 30)

THE EXCELLENCE MYTH of commitment. Organizations are either committed to excellence and the continued improvement of product and service standards, or they are not. Product and service excellence are more than just buzzwords or nice ideas; they serve as a competitive differentiator and strategic advantage. Product and service excellence can also serve as a means to obtain a higher price for products and services. At Gibson, prices had been declining 20 percent a year and to the astonishment of employees, Juskiewicz not only raised prices, in some cases, he doubled them. Yet even with a dramatic increase in price, volume continued to increase. By offering an exceptional, uncompromised product that delighted customers, Gibson was able to raise prices significantly and have customers reaffirm their conviction in the value delivered by its premium price products. Ultimately, customers rewarded excellence. Juskiewicz says that the chainsaw process continues to this day, but he points out that the pile of broken guitars is much smaller. By sending the message that only perfection would be accepted, he has not only raised the quality of his company’s guitars, but the production and service standards of his employees. After all, no employee wants to see the results of his laborious efforts being destroyed by a chainsaw. Do you allow mediocrity into your organization while touting the message of excellence? As a rule of thumb, if you are willing to sell mediocrity to your customers, do not expect excellence from your employees. In a place where “good enough” is accepted, employees will not strive for excellence. As with all commitments, if dedication does not go up, it naturally goes down. This is a compromise that no company can afford to make. The Experience Gap Analysis To identify the differences between employee and customer definitions of excellence, I designed the Experience Gap Analysis (EGA) study. The EGA study surveyed seven companies in the U.S. and Europe and allowed us to analyze 23,088 responses from 18,261 customers and 4,827 employees who served them. (The customers and employees participating in the study represented a variety of sectors including B2B products, business services, and B2C products.) The survey asked customers and employees to rate the employees’ performance during a single performance interaction: the employees from their perspective as the deliverers of the performance and the customers from their perspective as the recipients. The EGA study measured the customer experience on the following four dimensions: Capabilities: The extent to which the employee possesses the necessary tools and authority to deliver performance excellence (e.g., access to customer information) Knowledge: The extent to which the employee understands the customer’s business, lifestyle, challenges, and aspirations Willingness: The extent to which the employee is motivated to deliver performance excellence (e.g., to go above and beyond the call of duty) Attitude: The extent to which the employee’s connection with the customer is affected by his personal communication style (e.g., arrogance, sense of privilege to serve) Each of these four dimensions was addressed through several questions relating to the way customers and employees interact and the outcome of that interaction. Questions were measured based on strong conviction responses rather than on median response. THE GAPS TELL THE STORY EGA survey results revealed a significant disconnect between employee and customer perception, and nowhere was this more evident that in the “willingness” dimension with a 35.8 percent gap. Relative to customer responses overall, employees consistently overestimated their level of performance excellence, believing that they had delivered greater value than their counterparts on the receiving end were willing to give them credit for. A pattern in the responses showed that the criteria employees used in defining performance excellence generally neglected to take the customer’s own criteria into account. Especially surprising were the following statistics: 79 percent of employees said they often go “above and beyond” and exceed customer expectations, yet only 29 percent of customers agreed. Perception gap: 50 percent. 75 percent of employees said their work makes a difference in their customers’ lives, but only 29 percent of customers agreed. Perception gap: 46 percent. 88 percent of employees said they use common sense and discretion in the way they interact with customers, yet only 40 percent of customers agreed. Perception gap: 48 percent. ONLY YOUR CUSTOMERS CAN JUDGE YOUR EXCELLENCE Never miss an opportunity for excellence, which is measured one customer at a time. The challenge posed by any 30 given customer problem is really an opportunity: a chance to convey your excellence. When you engage with your customer, do you address the bigger picture or just your narrow definition of customer needs? This is exactly why excellence should be defined as judged by the recipient. Often, we claim excellence, but by our own terms. Those terms are often narrow and easy to achieve, and may ignore the big picture or our customers’ larger concerns. It is a common mistake when excellence is self-centric and not customer-centric. Redefining and reframing excellence as an everyday occurrence—rather than a rare lifetime achievement—is important to shifting away from The Excellence Myth. Excellence belongs to everyone who wants to deliver it. That means it is you who chooses to unleash your power for excellence. Your employees are capable of excellence, but they may simply choose not to deliver it in your organization in every act. They will take their excellence elsewhere. The only question left unanswered is, Are you ready to believe in your own capacity for excellence? Lior Arussy is the founder and president of Strativity Group, a consultancy. This article is adapted from his most recent book, Excellence Every Day (Information Today, Inc.). He can be reached at lior@strativity.com. www.destinationCRM.com CUSTOMER RELATIONSHIP MANAGEMENT | MAY 2008 http://www.destinationCRM.com

Table of Contents Feed for the Digital Edition of CRM - May 2008

CRM - May 2008 Contents Front Office Feedback Reality Check Customer Centricity The Tipping Point Is CRM Too Hard for Microsoft Vendors Go Virtual For Feedback Sense-sational Marketing How UGC Can Benefit CRM DestinationCRM Dashboard Price Check, Aisle 5 Required Reading The Moving Target The Excellence Myth Seven Steps to SOA Success And They're Off! Are You Ready to Party? Skin in the Game The Right Numbers Secret of My Success Re: Tooling Connect Pint of View

CRM - May 2008

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