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Imagine doing business with an organisation whose systems
are designed according to your needs, where the person
who answers the telephone can close the deal, where,
when you complain, the first person you speak to resolves
the problem.
How does that feel? Now imagine they consult you about
how best to run their business, so that it suits your
requirements, with the intention of producing goods
to suit them?
It sounds almost too good to be true, but some suppliers
and manufacturers are already doing it. While many organisations
in Britain are struggling to make the leap there are
companies in America where self-managed, self-motivating
teams are the norm. Clothing retailer Nordstrom is a
by-word for Customer Service Excellence. They empower
their staff to do virtually whatever it takes to ensure
customer delight – mere satisfaction is not enough.
The management support whatever decision the staff take,
even if it proves to be the wrong one. It is a safe
place to make mistakes. The staff exhibit entrepreneurial
spirit and outstanding people skills, and operate as
all but self-managing, self-motivating individuals.
They are ultimately driven by exacting sales targets,
but the result is incredible customer focus and service.
Take, for example, the customer who had her heart set
on a dress in a Nordstrom store. When the store she
was in was sold out in her size, the sales assistant
rang all the Nordstroms in the region to try and track
one down. When this failed, the assistant marched across
the street to a rival shop where the dress was also
available, purchased it at the marked value one higher
than that at her own store and returned to Nordstrom,
selling the dress to the customer at the Nordstrom price.
This is one story among the many that show why Nordstrom
has almost unrivalled customer loyalty.
SEMCO is a Brazilian manufacturer and service provider.
Their president is Ricardo Semler, son of the founder.
These days he has to call the company for permission
before he visits, as the 'associates' are not too keen
on management turning up unannounced. SEMCO is perhaps
the most extreme example of participative management
to be found the decision-making power of the organisation
lies almost entirely in the hands of the workers, and
any decision the board might make must be passed by
them before implementation.
Each area, each team is responsible for its own operational
effectiveness and objectives. While this may sound like
a recipe for anarchy and failure, SEMCO has increased
in size seven-fold over the past seven years. Offer
your people real empowerment, is the message, and they
will return your investment in spades.
Peter Day, journalist and presenter of BBC Radio 4’s
'Business Matters', said recently that the future will
be about mass customisation. This apparent paradox means
that each unit of mass produced goods will be tailored
to the needs of the individual consumer.
Car manufacturers such as Ford are already examining
ways of tackling this and selling via the Internet.
Levi's jeans are now offering in their larger 'Originals'
stores a bespoke service to find and make the pair of
jeans which fits perfectly.
Larger organisations with centralised and bureaucratic
decision-making processes cannot hope to respond quickly
enough to the rapidly changing customer landscape. To
cope with such demands the self-managed, self-motivating
team, driven by customer need, is appearing. They represent
the future of Customer Service Excellence. Decision-making
power devolved throughout the organisation leads to
empowered individuals using their best judgement at
all times, to paraphrase Nordstrom, in the interests
of the greater whole.
The future is fluid
But will this be enough five, ten, twenty years down
the line? Almost definitely not – the future is fluid
and in the spirit of continuous improvement, the most
effective companies are tracking consumer trends and
interviewing customers, constantly seeking the next
innovation in service delivery.
Here's a suggestion: what if these self-managed teams
included in their number the customer as a full time,
fully participating team member, involved totally in
the decision-making process and the team's business
matters?
Imagine the speed of response and overall effectiveness
of such a team, of a business organised in this way.
They would be much more immune from the vagaries of
the market and consumer fickleness, able to act appropriately
and almost instantaneously.
Don't scoff, it's coming. How ready are you?

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