Veteran, new and aspiring executives need methods to be successful in their organization. There are 1000s of leadership podcasts, videos, blogs, and articles but few authors address what to do or how to do it.
We have witnessed many executives who are efficient (doing things right), but few executives are effective (doing the right things). We believe this is misguided and aim to remedy the shortfall with executives.
The Effective Executive Podcast – Episode 7
Doing the Right Thing for the Customer
Efficient vs Effective Executive
How to be an effective: 1. Understand the Types of Interactions
2. Understand What is Important to Customer
3. What Clusters/Segments Appear
4. Deliver Value
Tripp Babbitt: [00:00:00] Hi, I’m Tripp Babbitt. I’m host of the Effective Executive podcast, and this is the seventh episode of this podcast and.
Tripp Babbitt: [00:00:14] I wanted to talk about the customer, I haven’t really talked about the customer that much, if they’re. If we didn’t have customers, we wouldn’t have a business, so let’s begin by just doing a brief review.
Tripp Babbitt: [00:00:29] If you’re an efficient executive, which all of you are, that’s doing things right. And if you’re an effective executive, it’s doing the right things. And it’s always better to do the right things wrong than do the wrong things right.
Tripp Babbitt: [00:00:48] So if you want to get a little review on that, I’ll put some links out to the efficient versus effective executive videos and also the analytical versus the synthetic, which is the systems thinking versus breaking things apart. So I’m not going to get into all that right now. But one of the biggest ways that you can identify or contrast, efficient versus effective, is it really becomes evident when you look at how organizations with efficient executives handle customers. No customers want value from your organization. It’s the one thing that is inevitable for every customer is how do they get value out of your customer. And, you know, from your own experiences of calling other companies for service or products that. They don’t always deliver to the value that you’re looking for. So the same thing happens in your organization and the question becomes. How do we gain that value? Now, my contention is that only effective executives can deliver value from an efficient standpoint, you might get lucky, but for the most part, only effective executives know really how to go about and deliver that value to customers. And I’ll explain why here in a minute, value is defined by each individual customer. So when you get a phone call, you can’t just expect that each customer is going to be asking for the same things. You’re going to look for those types of things. But each customer has a different experience. They have different wants and needs in association with the products and services that they have. So the first thing is that we want to understand that customers define the value and each individual customer defines their value.
Tripp Babbitt: [00:03:05] And then we’ll look for the clusters, as I mentioned, or segments of customers and the demographics and things of that sort. Once we’ve understood what the individual customers are, then you’ll start to identify these are all kind of grouped together. They’re looking for the same thing.
Tripp Babbitt: [00:03:24] So how you go about doing this as an effective executive is you identify what’s important to the customer and I have found over and over again, this is kind of counterintuitive, but high quality means delivering that value to that customer always cost less, because if you don’t deliver that value, they’re going to be calling back. They’re going to spread bad words about your organization. You know, they can never get what I want out of this company. Now, how do we contrast that to an efficient executive?
Tripp Babbitt: [00:04:01] Well, they’re typically concerned with things like how many calls, how many visits, how many patients, how many repairs did you do? You know, and that’s being very efficient. But the problem is, is it covers up with their focus, their being a front line person in your organization focused on how many that they’re doing being just that, because that’s how they’re being measured. And there could be also how you’re rewarding or controlling their actions.
Tripp Babbitt: [00:04:38] A technician, a front line person is not always going to see what’s right for the customer if what they’re being rewarded on or controlled over by the system or the executive in the way that you’ve designed that system, it’s going to be covered over and they’re not going to pay attention to really what the customers are saying and what’s important to them, because they’re so focused on the numbers that they’re being measured by. And this is all driven for the most part by financials. So the efficient executive is preoccupied with what the financials are of the organization. And I’m not saying they’re not important, but I find when people focus on financials, costs always go up because they’re not focused on what’s important to customer. And costs increase when you don’t do what’s important to a customer, as I identified earlier. So what are the keys to effective effectiveness?
Tripp Babbitt: [00:05:44] Well, the first thing is, is you’ve got to understand the types of interactions that your customers have with your organization. What are they asking for? What are their complaints about your organization? Because that also is a way to identify what’s important to them.
Tripp Babbitt: [00:06:02] So that is actually the second thing, which is take time to understand complaint’s help, identify what’s important to the customer, and and the second step is what is it important to the customer? And because you’re not taking time as an efficient executive to understand what’s important to the customer, because they’re so focused on getting to the next thing.
Tripp Babbitt: [00:06:25] And a lot of front line people are measured on that. You’re not delivering it because you don’t even know what it is. The questions aren’t being asked. So it’s something that you have to consciously look for and identify those things in your system that may be inhibiting a front line person from understanding what’s important to the customer. Now, when you’ve understood what’s important to the customer, then you’re going to find some very universal things and there will be things that customers really hate the hate to get transferred on a phone they get they hate to have you come in and start to fix something and say, well, I don’t have the right parts. They hate the self routing when they try and guess your phone menu of things and go through and say, gee, you know, I was trying to get to a technician and I got to sales. Those are very frustrating for customers. So there’ll be some universal things you find when you understand what’s important to a customer.
Tripp Babbitt: [00:07:36] So the third thing is, once you’ve identified all of the things that are important to the customers, you can begin to look at clusters or marketing. People love these marketing segments.
Tripp Babbitt: [00:07:48] So there may be three, four or five different segments of customers that are calling your particular organization. You can identify who they are. And the important thing here is marketing may be going after a certain type and you’re in your head. You may think that you’re here’s your cut, what your customer base is, but your customer base is. Who is calling you, right? It’s not who’s not calling you. So it’s important to identify from a customer in standpoint to identify what those clusters and segments are.
Tripp Babbitt: [00:08:23] And then the fourth thing is then deliver the value of what’s important to the customer. If there are universal things about that I talked about with regards to transfers and self routing and being out of parts, then you’ve got to identify what those things are and deliver that value. Now, I think it’s important also point out that you don’t want to over deliver unless it’s going to create some type of value for a customer. If you do, then let’s say, for instance, you said you’d be there between or be there at 10:00 in the morning if you’re there at 9:00, that’s not necessarily something that is good for the customer because they were prepared for you to be there at 10 and you may think you’re creating value for them, but they’re expecting a 10 unless you call them ahead of time or something.
Tripp Babbitt: [00:09:20] Being there ready an hour earlier provides no value to that particular customer. And you don’t want to undergo liver because that costs something, so, you know, if you go and you’re an hour late and, you know, from an appointment standpoint or miss a window, then obviously there’s going to be costs that they’re associated with because customers are going to call, they’re going to complain, they’re going to tell their friends and neighbors. So there’s a whole series of loss, things that happen when you underdelivered. So if you need help going through this particular process, you can go to the ninety five method dot com, I have a starter kit for executive, but it’s a ninety five method dot com forward slash starter kit and that will hook you up with a free starter kit for you to kind of understand how the system works and how you can deliver value to customers by what’s important to them. And then there’s also the executive education program, which you can get to at the ninety five metha dot com forward slash exact ad. So E, e, c, ed. And there there’s a whole series of training associated with how you can build a system to make you a more effective executive. That’s it for this week. Thank you. And I’ll see you next week.