Avionics News February 2012 - 46

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ECONOMIC RECOVERY

Understanding the shift in power from seller to buyer. Enabling workers and removing their impediments. Dynamically linking business success to customer satisfaction. 4. Instilling values that create innovation and growth. 5. Engaging customers in conversation instead of delivering demands. Let’s briefly explore how to implement these principles and apply them to the average avionics shop. First, it should not be a huge secret that potential customers in these economic times are reluctant to part with the little hard-earned cash they have managed to retain. To say the customer is in the pilot’s seat would be an understatement. Denning’s example of how to keep customers happy

1. 2. 3.

Today’s economic realignments, stagnation and lack of innovation across multiple industries and disciplines demand even the most traditional business needs to rethink its operations.

focuses on Apple Computer and its ability to offer the iPhone, “a platform on which users can choose their own Apps and so customize the product to their specific needs.” Applying this principle to the avionics shop might involve demonstrating to a customer how an instrument panel renovation would provide new operational flexibility and capability. Meanwhile, enabling workers and enhancing their performance, according to Denning, facilitates collaboration while enhancing their ability to learn and do their jobs, and to innovate. As he summarizes it, the idea is to “mobilize the energies and talents of those doing the work so that they become more productive, more creative, more collaborative and more able to learn and innovate quickly.” Whether your workers toil on the shop floor or at the bench, ensuring their voices are heard and they have the knowledge and talent to perform their tasks is critical. One way to meet this challenge is regular attendance at the annual AEA International Convention & Trade Show and Regional Meetings, plus an ongoing program based on the association’s substantial education resources to ensure professional development keeps pace with the times.
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Denning’s dynamic linkage principle entails performing work in short cycles per management’s goals and understanding of the customer’s expectations. Ongoing decisions about how the work is done are the responsibility of those doing it, and progress is measured by direct customer feedback. Realizing this principle in the avionics shop can involve setting realistic, short-term work goals, based on the customer’s expectations, and then providing detailed updates and reports to the customer as each phase of a project is completed. Leveraging the Internet and various social networking tools to keep customers informed of your shop’s progress also can be used to advertise your ability to meet commitments and expectations. The use of value as a management tool in Denning’s hierarchy focuses less on creating worth than ensuring the customer realizes the good or service for which he’s paying is valuable. As he puts it, “there is a necessary shift from a preoccupation with ‘value’ to a preoccupation with the ‘values’ that will grow the business by generating innovation and customer delight.” Among the values Denning said can overcome this preoccupation are transparency, “continuous improvement, trust, honesty... and openness to outside ideas.” Finally, communication should be focused on the customer’s needs and frames of reference. Denning stresses conversation rather than command-oriented interactions, allowing the customer to believe his or her needs are readily understood and creating a social relationship rather than a strict, top-down discourse. Implementing this principle involves “using stories, metaphors and open-ended questions,” while ensuring conversations remain focused on the customer and his or her needs. Create Your Own Recovery Waiting for the latest and greatest products to be passed down from the usual suspects certainly is one way to weather the current economic downturn. It also involves embracing the new economic realities and accepting their consequences. When those products arrive, you will be competing against every other local avionics shop on price, scheduling, turnaround and added value. How long you have to wait for those doorbusting products is unknown, but at least you will have the benefit of knowing your competitors are doing the same thing. Or, you can refuse to accept reduced profits and excess capacity on your shop floor by rethinking how to attract customers, sell your services and create return business. Today’s economic realignments, stagnation and lack of innovation across multiple industries and disciplines demand even the most traditional business needs to rethink its operations. The results can be its own realignment and innovation, leading to growth, not stagnation. q

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Avionics News February 2012

Table of Contents for the Digital Edition of Avionics News February 2012