Taking One For the Team

Posted on by Scott

match-1100912_1920His hands fumbled for the release on his seatbelt harness. Tugging at the catch set him free and he began to slowly pull himself out of his seat and to his feet. Dazed and somewhat confused, he reached out his hands toward the voices racing toward him. They were concerned voices, but excited. The phrase “fastest man on earth” reached his ears. He strained to see the men who now surrounded him, their hands supporting him and patting his back, but he could not see them. He was blind.

It was December 10, 1954, and Colonel John Paul Stapp had just reached a top speed of 632 miles an hour, faster than a .45-caliber bullet, strapped to a rocket powered sled. He’d accelerated from zero to max velocity in 5 seconds. But his ride wasn’t meant to see how fast man could travel, or fast he could accelerate. This was a test to see how fast a man could decelerate, and live to talk about it.

At 632 miles per hour, Stapp hit the brakes and came to a dead stop 1.4 seconds later. His body absorbed forces 40 times that of gravity. His eyeballs shot forward in his skull, leaving him with two black eyes and blindness that fortunately only lasted a few hours. But Stapp had expected something like this to happen. It was, after all, his 29th trip on the sled.

Col. Stapp was a doctor with the United States Air Force, and an example (granted, an extreme one) of the sacrifices many take in order to support their coworkers. Stapp and his team conducted extensive research into the results of deceleration on the human body. Their work resulted in design changes to military aircraft and safety harnesses that have allowed pilots to literally walk away from catastrophic plane crashes. His findings have also influenced the automobile industry, leading to safer occupant restraint systems around the globe.

Service always involves some degree of sacrifice. That’s because service is more than just a job. It’s an attitude. Your job description might require that you perform certain actions in order to satisfy a customer’s needs, but the manner in which you approach your work determines whether it’s remains a job, or gets elevated to the position of service. As we celebrate Internal Service Month, I think it’s only fitting that we explore the sacrificial characteristic of service.

Colonel Stapp’s approach to his job illustrates three key aspects of sacrificial service.

1. He expected to sacrifice for those he served. Stapp knew his body would undergo an incredible amount of stress in pursuit of his research. He even anticipated that he might emerge from the speed sled having lost his sight. In the days leading up to the run, he practiced dressing and undressing himself in the dark so that he wouldn’t be totally helpless afterward. But Stapp knew that his sacrifice could save the life of the pilots he served. Service is suffering so others don’t have to.

2. He accepted that his sacrifice would be ongoing. One of the reasons Stapp knew to expect blindness was because he had experienced it before. His record-setting run wasn’t his first; it was his 29th. Previous rides down the track had left him with a laundry list of injuries. He’d suffered concussions, broken ribs, hernias, hemorrhages, and shattered bones. But Stapp wasn’t in this for the quick victory. He knew that service was the only way to ensure the desired outcome. Service is an attitude, not an act.

3. He volunteered for the sacrifice. Studying rapid deceleration was Stapp’s job. He’d been assigned to lead this particular branch of research. But he didn’t approach his work as something he’d been forced to do. After more than 30 test runs using dummies, Stapp determined that only live human testing could provide the data needed to protect live human pilots. The word went out for volunteers, and several showed up. But Stapp wouldn’t ask others to do what he unwilling to experience himself, so he was the first and most frequent test subject. After his record-breaking run, Stapp’s superiors had to forcibly ground him out of concerns for his long-term health. Service is a calling, not a job.

Do you know someone who has willingly gone out of their way to help you out? Which coworkers have given of themselves again and again so that your job could be made a little easier, or a little safer? Who approaches their work as a calling, rather than an occupation? Don’t you think that sacrifice is worth acknowledging?

Internal Service Month

Posted on by Scott

girl-1186895_1920Well, we’ve made it to July. That means we are officially half-way through the year. It also means that this is Internal Service Month. You may not have heard of this celebration before, and that’s ok. In fact I doubt anyone reading this has celebrated it before. But don’t feel bad.

I just created it.

That’s right. I decided, all on my own, that we need to take a few weeks to honor those who toil away behind the scenes. We need to recognize the men and women who work hard so that the rest of us can look good in the eyes of the customer.

A quick Google search shows me there are 854 million hits for “customer service.” The vast majority of them focus on frontline service – that’s the interaction between an employee and a customer. Volumes have been written about this subject and you can’t make it through a company meeting without someone waxing poetic about the importance of customer service. There are awards and conferences dedicated to customer service. There’s even an entire week of emphasis coming up in October.

Sadly, we often neglect to address the service that takes place behind the scenes. I guess out-of-sight truly is out-of-mind. The fact is, though, none of us would be able to service our customers without these magicians behind the curtain. Our support teams provide the foundation from which we are able to deliver those WOW moments to a customer. I feel it’s time they received their due.

When you think about it, there are really only two types of jobs. There are those that support the customer, and there are those that support the people who support the customer.

Have you ever seen acrobats at a circus, or cheerleaders in pyramid formation? The focus is always on the person at the top of the formation, and understandably so. They’ve put themselves up high, in a vulnerable position, where everyone can see them. When they stretch their arms out wide, the audience gets the payoff and applauds.

But they’re always standing on the backs and shoulders of several teammates. Those who form the base of the pyramid, and who form the link between the base and the performer up top are just as critical to the successful completion of the pyramid. Remove either one and guess what happens…the team experiences failure. The pyramid collapses and the customer misses out on a potentially extraordinary experience.

Think about the work done by these miracle workers:
• They support the products you sell.
• They create the resources you use.
• They maintain the systems you utilize to do your job.
• They handle every aspect of the customer experience that you don’t.

So yeah, I’m declaring July Internal Service Month.

Over the next couple of weeks, I’ll share the stories of some unsung heroes – people who acted behind the scenes so that their teammates could succeed. By learning of their sacrifice, perhaps we can pick up a few lessons to help improve the service we provide to our own coworkers.

In the meantime, I challenge you to recognize the internal service heroes around you. Take the time to let them know how much their support means to you. Write a note…send an email…make a phone call, but let them know you care. I promise you one thing, it will mean a lot to them. Let’s make sure they know how much we appreciate the service they provide to us!

Can You Hear Me, or Aren’t You Listening?

Posted on by Scott

listeningThe human body truly is amazing. Take your ears, for example. So many of us take them for granted. Yet these odd looking appendages allow us to enjoy music, recognize friend from foe, and engage in meaningful communication. In fact, we rely on verbal communication to such an extent that references to ears and hearing are everywhere.

“Do you hear what I hear?”

“Friends, Romans, countrymen, lend me your ears.”

“Can you hear me now?”

Here are a few facts about our ears that you may find interesting:

  • The outer ear, the part hanging on the side of your head, is designed in a way that funnels the variety of sound waves around us and channels them to the middle ear.
  • Incoming sound moves from the outer ear to the eardrum, causing it to vibrate. These vibrations are picked up by three bones that amplify the sound.
  • These three bones (the malleus, the incus, and the stapes) make up the middle ear and are the smallest in the human body. All three could fit on the face of a penny.
  • After leaving the middle ear, sound waves are picked up by tiny hairs in the liquid medium of our inner ear. These hairs release chemicals that send signals to the brain which interprets the sound.
  • Humans are capable of detecting sounds as low as 20 Hz and as high as 20,000 Hz.
  • We need both ears to help determine the direction from which sounds originate. Using both ears also makes it easier to pick out someone’s speech in noisy environments.
  • The human ear continues to function even while we are asleep. The brain simply blocks out most of the input.

As incredible as our ears are, we don’t do a very good of using them. As far back as 1957, researchers have been studying the difference between hearing and listening. That’s when Ralph G. Nichols and Leonard A. Stevens from the University of Minnesota conducted tests to find the connection between hearing information and retaining it.

They tested several thousand people by having them listen to a short talk and then testing them on the content. Their tests revealed that “immediately after the average person has listened to someone talk, he remembers only about half of what he has heard – no matter how carefully he thought he was listening.” Within two months, the average participant in their study could only recall about 25% of what had been said during the short talk they had listened to.

You would expect that, over time, we’d retain less and less of the material we’d been exposed to, but the University of Minnesota study found otherwise. After one year, Nichols and Stevens reported that we tend to forget more during the first, shortest interval than we do over the next six months or more. The most significant retention loss occurs within the first eight hours.

Their conclusion was rather blunt: people simply do not know how to listen.

Hearing and listening are two very different activities. Hearing is a passive activity. It happens without me doing anything. Without any effort on my part, sound waves are entering my outer ear, hitting my eardrum and vibrating the bones of my middle ear, and then creating chemical secretions in the hair of my inner ear which then travel to my brain. This complex process is effortless.

Listening, however, is not a passive activity. Listening is intentional. It requires me to concentrate on specific sounds in order to analyze them. Listening involves more than just the ears. The brain must be engaged in order to create context, meaning, and application. This complex process is anything but effortless.

But remember, Nichols and Stevens found that the no matter how hard participants in their study worked at listening, the results were still the same. Listening “harder” did not help anyone retain more information or hold onto it for a longer period of time. The problem, they said, is that our brains are just too powerful.

Most Americans speak at a rate of around 125 words per minute. Our brains, on the other hand, process information significantly faster. We still know all there is to know about the brain, but suffice it say 125 words a minute barely registers. Our minds simply have a lot of extra time to ponder other things even while listening intently to someone else.

I myself am often distracted while trying to listen to other people. For instance, during a walk around my neighborhood, I like to download a podcast or two in order to help pass the time. I hit the play button and focus my mind on the speaker’s content, intent on learning something new and interesting. But within seconds, my mind has drifted. Something that’s said sends causes my thoughts to wander. Sometimes I start thinking about how I can apply one of principles they’ve shared. Other times, a word or phrase jogs my memory about an unrelated topic and my mind is off to the races – moving in a different direction even as the speaker shares valuable and intriguing information. I’m hearing, but I’m not listening.

They key to improved listening has nothing to do with our ears. Obviously, the answer doesn’t lie in slowing our brains down either. We’ve got to arm ourselves with tools that help focus our minds in a way that listening is improved. We have to discover methods of actively participating with the information being received so that it makes a bigger impact.

That’s why the term “active listening” is so appropriate. Listening is not a passive activity. It requires action on our part in order to work. The next time you find your mind drifting during a conversation, don’t just sit there. Take action!

Hidden Opportunities & Sweating the Small Stuff

Posted on by Scott

small-door-1130644_640In June of 2012, a group of volunteers gathered at Placer High School in Auburn, California. They had assembled to repaint the school’s weight room, a facility that hadn’t received any TLC in decades. But as they began the process of emptying the room and prepping the walls, they made an incredible discovery.

Situated on one of the interior walls was a small screen door. Barely big enough to crawl through, the door sported a padlock and peeking through the screen revealed only darkness. Several alumni were familiar with this door – it had been there for as long as any of them could remember – but no one had any idea where it led or what was inside. Curiosity got the better of the group and the decision was quickly made to remove the lock and find out.

The exploration reveled a make-shift bomb shelter dating back to the days of the Cuban Missile Crisis. In the midst of nuclear tension between the USA and the USSR, similar shelters had been funded by the Civil Defense Department. The nuclear fallout never came and they were mostly dismantled to make way for more pressing needs. This one, however, was still fully stocked. There was medicine, food rations, paper supplies, and even bagged water. All was perfectly preserved, having been forgotten by those who created it.

Day after day, people walked by that door, never realizing what waited on the other side.

It seems amazing that something like this could go undiscovered for so long. Yet every day, we walk by corners of our own homes and workplaces without giving them a second thought. Who knows what we’d find if we’d just take the initiative to look?

Think about your daily routine. As you make your way from the car into your office, what areas lie just outside of observation? What would you see if you approached from a different direction or used another entrance? What aspects of your business’ appearance go ignored simply because they aren’t part of your typical route? Sometimes things go unnoticed despite being right under our noses.

I once visited the men’s room of a bank branch and found the sink faucet handle laying to the side. There was no way for me to turn on the water and wash my hands. I mentioned it to the manager and she thanked me for bringing it to her attention. She said “We’re all women working here, so we never go into that restroom. Guess we ought to check it out once in a while” Who knows how long that faucet had been broken?

Customer service author/consultant Dennis Snow says “everything speaks.” In a time when just about every business struggles to differentiate themselves form the competition, it’s often the details that make the biggest difference. Those who choose to excel at the little things are the ones who win. It pays to look at things from a different perspective once in a while.

There may not be a hidden room waiting to be discovered in your building; but I bet there are areas that you haven’t given any thought to in quite a while. Identifying them, and addressing them, could be just enough to lift you above the competition in your customer’s mind. Perhaps it’s time to do a little exploring.

Put the Law of Attraction to Work for Your Business

Posted on by Scott
puffer_nest
Photo by Y. Okata

In 1995, divers off the coast of Japan reported a strange underwater anomaly. They’d found a large, circular design in the sand of the seabed. Approximately 6 feet in diameter, the mysterious circle included an outer ring of clearly defined sand ridges that pointed toward the center. The center of the circle was flat and consisted of finer sand particles than the outer ring. Furthermore, fragments of shell and coral decorated the peaks of the outer ridges.

 

Nothing like this had ever been seen before. It was if someone had created a temporary work of art for the divers to find. However, there was no trace of human intervention. There was no sign claiming credit for the work. And after only a few days, the current had returned the sea floor to its undisturbed state.

Other divers soon reported additional “mystery circles” scattered around the sea floor in the same general area. For almost 20 years, the origin of these underwater works of art remained just that – a mystery. Finally, in 2011, the artist was caught in the act. His name was Torquigener Albomaculosus. That’s the name scientists gave to a new species of pufferfish. Just five inches long, it’s the male who’s responsible for creating what we now know to be a nest.

Working almost endlessly for about 10 days, the male pufferfish creates the intricate circle to attract a mate. The outer ridges with coral and shell bling catch the eye of potential females. The soft sand in the center provides a safe place for eggs to hatch. It’s an incredible display of architecture and design, being both functional and attractive at the same time.

If only such attention were paid to the average workplace. If only more businesses realized the importance that both form and function play in attracting customers. You may recall that most customers rely on their perception of your business from the outside in determining whether or not to take the next step. Those that make the choice to venture inside should be rewarded with an environment that invites them to stay, do business with you, and make the decision to come back.

Most of us take great care to maintain our home so that it functions properly. Routine care is necessary to keep the various parts working. Beyond that, we also make choices in terms of layout, furnishings, colors, and amenities that express our personality. Visiting my home would give you a pretty good sense of who I am as an individual. Pretty quickly you’d start to piece together the types of things I value and that perception would lead you to expect a certain type of behavior. As much as I work to shape my environment, it also shapes me.

The workplace is our second home. It, too, should reflect the values we hold. Our offices and meeting rooms and lobbies communicate who we are and what we believe in. What kind of message is your work environment delivering? Does it match the story you tell your customers and prospects, or is there a conflict? Are people drawn to do business with you because of your work environment, or does it drive them away?

Take this quick assessment and see how your surroundings rate. Sitting right where you are, make note of what you see:

  • Stains on the carpet or upholstery
  • Faded or chipped paint
  • Outdated or damaged furnishings
  • Cobwebs or dirty windows
  • Clutter or distracting décor
  • Missing or confusing signage
  • Strange or unpleasant smells
  • Evidence of insects or rodents
  • Empty or abandoned workstations
  • Evidence of the back office intruding into customer sightlines

Odds are, you’ll check at least one box (if you’re honest). You may even be surprised at what you see. We’re just not used to looking at things from the customer’s perspective. We’ve grown so accustomed to our surroundings that we can’t see what’s right under our nose. But it’s amazing what you find once you go looking for it. Take off your jaded employee glasses and see things from a new perspective.

Now that you’ve addressed some of the shortcomings, take another look. What tweaks can you make to improve things just a bit? Maybe it’s rearranging some furniture or changing up the lighting. Perhaps you need to add some personality.

Get creative. View your workplace the way Torquigener Albomaculosus views his nest. Spend a little time fixing up the place to attract someone new. Approach it as if that’s the only marketing tool at your disposal. You may just wind up creating a work of art.

Get a Grip: Master the Handshake

Posted on by Scott

handshake-1471563_640Technically, it’s called dexiosis. That’s the short ritual in which “two people grasp one of each other’s like hands,” typically the right ones. In most cases, it’s accompanied by a brief up and down movement of the grasped hands.

What we refer to as a handshake is thought to have originated in ancient Greece. Ruins from as far back as the 5th century BC show soldiers shaking hands. Scholars believe the gesture began as a way for two strangers to greet each other in peace. Extending your empty hand for a handshake proved you were unarmed, and therefore not an immediate threat.

These days, handshakes are used in a variety of situations beyond an initial greeting. They can take place when parties part ways, to offer congratulations for an achievement, to express gratitude, or to seal an agreement. Handshakes are a staple of business interactions.

Despite the common use of handshakes, there remains a great deal of confusion about them. How tight should I grip? How long should I hold the other person’s hand before letting go? Should women shake hands? Uncertainty has resulted in a plethora of unsatisfying, even gross, handshake exchanges.

If you’ve ever been on the receiving end of a dead fish, a clammy palm, or a bone-crusher, you know how easily handshakes can go wrong. Since a good handshake goes a long way toward making a great first impression, let’s clear up some misconceptions. Here are a few tips for delivering good handshakes.

  1. Anyone can initiate a handshake but, as the business professional, you should make the effort to recognize the customer or prospect and make the first move.
  1. Start and end business conversations with a handshake. The first serves as a formal greeting and a sign of trust. The second indicates agreement and a mutually beneficial conclusion.
  1. Make sure your hands are clean and dry. If you are prone to cold or clammy hands, anticipate the need to address it before extending your hand.
  1. Face the person directly with your shoulders facing theirs. Don’t approach from the side or attempt to shake hands while on the move.
  1. Assume the right hand will be used. Someone who needs to use their left will let you know. I have a friend with a prosthetic right hand. He’s always the first to extend his hand (the left) so things aren’t awkward.
  1. Extend your hand and make full contact with the other person’s hand, aiming for web to web contact. Avoid grasping just the fingers.
  1. Use a firm grip. Squeezing too hard doesn’t make you appear powerful, just disrespectful. A limp hand comes across as timid or nervous.
  1. Give two or three pumps and loosen your grip to indicate you are ready to let go. Shaking for more than a few seconds is generally considered awkward.
  1. Maintain eye contact throughout the handshake. Don’t look over their shoulder or to the side. This is usually when a stranger offers their name, so pay attention.
  1. The same rules apply whether shaking hands with a man or woman. Treat everyone with the same level of respect and professionalism.

There are a lot of customs that have somehow fallen out of common business practice. It’s rare that you see someone holding the door for another, using courtesy words, or shaking hands. Sad as this may be, it provides an advantage for those of us seeking a competitive advantage over the competition. Making use of good business etiquette is an easy way to stand out from the crowd. Use the power of a good handshake to signal you’re someone worth doing business with.

What’s in a Name? The Importance of Being Known

Posted on by Scott

handshake-2056023_640Last Monday, I accompanied my son Alex on a visit to Lubbock Christian University. Alex is a junior and LCU is one of the colleges he is considering attending after graduation. Periodically, the school will host what’s known as “Chap Day,” a structured introduction to the university’s programs, facilities, and faculty for high school juniors and seniors. “Chap,” by the way, is short for chaparral (a roadrunner) which is the school’s mascot.

Arriving on campus, I could tell Alex was a little anxious. He’s an introvert by nature and doesn’t feel all that comfortable around strangers or in new, unfamiliar environments. His shoulders were tense and he spoke in a low tone, almost a whisper. He trailed behind me as we left the car and headed toward the designated check-in location.

We rounded a corner and headed toward a table situated outside the Welcome Center. Several college students were on-hand to greet visitors and usher them to the correct place. As we approached the table, I heard someone call out “Hey, Alex!” I looked up to see a member of our church’s college class. He works with the high school kids as well, and knew us.

I shot a glance over at Alex and noticed a complete change in his appearance. His shoulders had relaxed. His head was up and his eyes sparkled. A smile spread across his face, and he now walked ahead of me – moving forward to shake hands. In a split second, Alex’s entire demeanor had changed. He had been recognized. He had been called by name.

Oxytocin is a hormone produced by the hypothalamus of the brain. It is commonly referred to as the “love hormone” because it’s a key player in the formation of close relationships. Production ramps up when we interact with lovers, our children, and pets. As we learn to trust and appreciate others, oxytocin kicks in to help us form friendships and alliances.

Research has also shown that oxytocin plays a role in our primal “fight or flight” response. When entering a safe environment (or one in which our brain believes it is safe) oxytocin production increases. This relaxes our muscles and increases our confidence. We can trust those around us and let down our guard. But in an unfamiliar situation (one which our brain does not recognize as safe), oxytocin production drops. Our eyes and ears strain to detect danger. Our muscles tense in anticipation of defending ourselves.

In 2006, Dennis Carmody and Michael Lewis published a study in which they revealed that simply hearing your own name increases the production of oxytocin. By studying the fMRI (functional magnetic resonance imaging) scans of volunteers, they were able to determine that very specific parts of the brain respond to the sound of one’s own name. These parts of the brain are associated with identity and aren’t activated by hearing someone else’s name. Even under sedation, people will respond to the sound of their name.

Last week, I wrote about the power of words and how our brains process the words we hear. The left side of the brain interprets the meaning, or the definition, of words. The right side processes the feelings associated with those same words. When we hear our name, that third part of the brain reserved for identity is activated as well. When Alex heard his name being called, his brain instantly worked through a sophisticated process of analysis:

Left brain:           “That’s my name. Someone is addressing me.”

Right brain:        “That’s my name. Someone is glad to see me.”

Identity center: “That’s my name. Someone knows me.”

Is it any wonder that experts in sales, customer service, and leadership often mention the use of someone’s name as an important aspect of success? In his book How to Win Friends and Influence People, Dale Carnegie put it this way: “Remember that a person’s name is, to that person, the sweetest and most important sound in any language.”

When someone hears their name, there is an immediate, physical response. Calling someone by name communicates that you are someone to be trusted, someone to be confided in, and someone to be listened to. When you use someone’s name, you are calling up their very identity – their sense of self – and saying “I know you.” We can’t help but respond. When we are called by name, when we are known, it taps into our primal need for belonging.

Of course, you already know this, don’t you? I don’t have to sell you on the importance of using people’s names. If you’re like me, the big issue is actually remembering their name in the first place. You can’t use it if you can’t remember it. Fortunately, Mr. Carnegie also gave us a system for remembering names:

  1. Impression. The initial step is to focus on the name when you first hear it. You have to concentrate. You have to listen. Make sure you hear the name correctly, even if it means asking your customer to repeat it. Also make note of any distinguishing facial characteristics. The idea is to connect the name with the face and imprint this identity on your brain.
  2. Repetition. Step two is to immediately repeat the name. Just like memorizing a phone number, the more you repeat it, the more you’ll create a memory. Start by saying it back to the customer. Instead of “It’s nice to meet you,” say “It’s nice to meet you, Mr. Voland.” Find opportunities to use the name once or twice during the ensuing interaction as well. Don’t overdo it, but remember that each time you repeat the name you are improving your own recall while simultaneously creating good feelings in your customer’s mind.
  3. Association. Finally, paint a mental picture of the person doing something that will help you remember their name in the future. This mental picture should involve motion and be something memorable. If you want to remember Ms. Baker, you could envision her falling face first into a cake she just baked, for example. The stronger this mental picture is, the more likely you are to recall it (and the associated name) the next time your customer walks in.

As Chap Day progressed, Alex ran into other people who knew him and called him by name –students and professors. Later that night, he voiced his desire to attend LCU. When I asked why, he talked about the academic programs, the social clubs, and the proximity to home. Then he added. “Plus, I know a lot of people there.”

And they know you too, son. They know you too.

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The Ultimate Sales Model

Posted on by Scott

plan-1725510_640There’s a popular story in retail circles about a man in Anchorage Alaska who visited his local Nordstrom department store to return a set of tires. After explain to the manager that he wasn’t satisfied with the purchase, he received a full refund – despite that fact that Nordstrom doesn’t sell tires. This customer had actually purchased his tires from a company that had sat on the very same piece of land at some point in the past.

While stories like this one have become widely-recounted examples of Nordstrom’s legendary service, they hardly seem to represent a profitable business model. The idea is to make money, not to give it away. You can’t grow a company by offering full refunds, especially for products you don’t even sell.

Or can you?

There are two primary models for driving business today. The first involves product innovation. In this model, a company is always working to reinvent their product lineup. By offering a steady stream of new products, as well as improvements and additional features to existing ones, they seek to stay ahead of the competition. They seek to position themselves as pioneers in their industry and attract customers looking for the latest and greatest.

Of course, this model has drawbacks. It’s difficult to stay on the top. As soon as a revolutionary new product is introduced, competitors work to offer up their own version of it. What was touted as yesterday’s must-have innovation, is today’s commodity. Those playing catch up benefit from the costly trial and error of the trend setter. Their products are usually cheaper and often better since the heavy lifting has been handled by someone else. So, innovators must always be innovating to stay on top.

The second prevailing model involves price discounts. In this model, a company drives efficiency and expense management in pursuit of low prices. They compete by always offering the best prices, either through every day positioning or the advertisement of frequent sales. They see volume as the path to prosperity. They seek to position themselves as the best value and attract customers looking for the cheapest way out.

This model also has drawbacks. There’s always someone else willing to cut their prices to compete. Engaging in the price war means you must find some way to keep going lower, despite pressure to maintain a reasonable margin. This means that corners get cut – cheaper materials, cheaper labor, fewer features, and lower quality all become legitimate paths to improving the bottom line. And while you attract a lot of customers with low prices, those customers are inherently disloyal. Having been caught via the lure of a bargain, they become trained to shop based on price at the expense of value.

Both models are costly. It takes a lot of effort to make them work, and both create a customer base ready to jump ship at a moment’s notice. Such is the case when short-term revenue outweighs long-term growth. But there is another business model that can be used. It’s hard to find, but it’s the one growth strategy that makes the most sense. It’s the one used by companies like Nordstrom and Disney World and Chic-fil-A.

It’s the service-first model.

Companies that adopt the service-first model aren’t interested in being the lowest cost provider. In fact, they typically command premium pricing. You pay more for their products than you would elsewhere. And service-first organizations aren’t typically the innovators – at least not in a “we have the latest gadget” kind of way. You’ll often find them in commodity-based industries. Nordstrom sells clothes and cosmetics, just like any number of other department stores. Chic-fil-A sells fast food, just like thousands of other restaurant chains. Disney World is a theme park, and the competition is fierce.

Service-first organizations see their mission as providing an unmatched experience. It’s the experience that keeps customers coming back despite competitors that might be shinier or cheaper. It’s the experience that customers pay for; and they gladly pay a premium for it. Nordstrom clothes are not cheap. They don’t offer coupons and they rarely run sales. When they do, it’s as a thank you to those loyal customers who’ve shopped with them in spite of seemingly overwhelming reasons to take their business elsewhere.

Interestingly, a service-first model is the one most companies claim. The problem is, you can’t do it all. You choose, knowingly or unconsciously, a philosophy that dictates the course your business will take. One track always takes precedence over the others. And it always shows. Regardless of what you advertise, the people who matter most (your customers and employees) will figure out where your heart is. Make a list of companies you feel are truly service-first. I’ll bet the list is short.

I find the great irony of business is that those who deliver the best service experience don’t talk about it much, while those who actually chase another business model are the ones who most fervently claim to be service-oriented. They’re all bark, little bite. This list is quite a bit longer, isn’t it?

So, do you compete on product? Do you scratch and claw your way to the next short-lived product innovation?

Do you compete on price? Do you slash and burn the infrastructure to drive prices as low as they can go?

Or do you compete on service? Do you simply offer an experience that exceeds that of the competition – one so valuable people gladly pay premium prices to be your customer?

What business model makes the most sense to you? Choose wisely.

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What’s Your Free Throw Percentage?

Posted on by Scott

blue-basketball-american-basket.jpgI’ve always been a fan of basketball. It’s the perfect sport. It doesn’t take a lot of fancy equipment or training to play. It’s fast-paced and the rules are fairly simple to understand. It requires a combination of strategy, teamwork, and individual skill. Though I’ve cheered for a number of specific teams over the years, including my son’s championship high school team, I don’t need a particular side to root for in order to enjoy a good game.

One part of the game that has always frustrated me though, is free throws. When shooting a free throw, the player has just about everything to their advantage. They stand in a specific spot to shoot, so they don’t have to adjust for varying angles to the basket. The opposing team cannot steal the ball or block the shot, so they player can focus their attention. They have plenty of time to prepare for each free throw, so they don’t have to worry about being rushed to beat the clock. Yet, with all of this going for them, so many players are horrible at shooting free throws.

It’s often said that games are decided at the free throw line. Statistically, two-thirds of a winnings team’s points over the final minutes of a basketball game come from free throws. However, free throw shooting percentages have remained relatively unchanged over the past 50 years. College players make, on average, 69% of their free throw attempts. Players in the NBA average around 75%. There have always been individuals who stand out, but despite 50 years of sports evolution, why hasn’t the average make-rate of this “gimme” shot improved?

The answer is simple: practicing free throws isn’t fun. Few players want to spend significant amounts of time standing in the same pot, shooting the same shot, over and over again. It’s much more invigorating to run special plays or launch low-percentage fade-away three point attempts during practice. Even coaches will admit they generally have low expectations for the free throw.

Becoming a free-throw master isn’t really that hard. The perfect free throw shot is straight, creates a 45 degree arc, and hits the basket about 11 inches past center. Get these three things right consistently, and you’re among the elite – the hero of the game. Miss the easy shots when they count and, well…

Winning the sales and service game is a lot like playing basketball. We live for the big play and the game winning shot, but all too often, we miss the easy shots. It’s the mundane, day-to-day, seemingly insignificant activities that wind up making the difference in whether we win or lose. But it’s precisely because they’re easy, or should be, that we don’t give them much thought.

It takes so little to stand out from the crowd. Often you just have to stand up when everyone else is sitting down. You don’t have to be the most innovative, have the flashiest marketing, or offer the lowest prices. Simply execute, consistently, on the simple stuff and you elevate yourself above the average. That’s what the best do. That’s why they win. The fancy shots and buzzer-beaters make for a great the highlight reel, but games are won by executing on the basics.

So, what’s the secret to consistency? It’s identifying the best way to approach your shot, getting the right kind of coaching, and practicing until perfection becomes automatic. That’s how you win basketball games, and that’s how you win customers.

What’s your free throw percentage? How often do you greet the customer, identify their needs, meet those needs, and then thank them for their business? How consistent is your team at delivering on the easy shots – the can’t-miss opportunities to remind people of the great decision they made in choosing you? Master this part of the game and you’ll greatly increase your odds of a winning season.

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Searching for Clues: Hone Your Powers of Observation

Posted on by Scott

detective-156647_640He can tell where you are from just looking at your shoes. He can guess your occupation after a brief examination of your hands. He can determine your next steps based solely on clues you’ve already left behind.

I’m talking, of course, about Sherlock Holmes. The world’s greatest detective has been solving mysteries since his introduction by Sir Arthur Conan Doyle back in 1887. I’ve personally been a fan since I first read The Hound of the Baskervilles as a kid.

Holmes possesses a number of traits that prove valuable as he works through each investigation. He’s a student of the physical sciences which aids his analyzing evidence from a crime scene. He is also a brilliant strategist, something that allows him to anticipate the motives and likely next moves of his opponent. The skill I most admire, however, is Holmes’ ability to decipher a great deal of information from a handful of seemingly meaningless clues.

Think about the impact this ability would have in the workplace, for instance. Salespeople could uncover unmet needs by simply observing the habits or appearance of their prospects. Service personnel could determine the source of a customer’s unhappiness by reviewing past account usage and analyzing communication patterns. Managers could better equip their teams by acting on clues gathered from mere observation.

Known as abductive reasoning, Holmes’ ability to infer huge amounts of information from tiny bits of data seems like something only a fictional character could be capable of. Recent research, though, would seem to indicate that this “Holmesian deduction” is actually an innate ability that each of us can tap into. The power of focus is formidable, and it’s within our grasp. We’ve just forgotten how to do it.

Holmes himself once told Watson “You see, but you do not observe.” That, I believe, is the problem all too many of us face. Our eyes function properly, but we fail to observe what we’re seeing. That is, we fail to process information in a meaningful way. The vast majority of what we see simply does not register as important. Although seen, it is almost immediately dismissed and, therefore, forgotten.

Another barrier to abductive reasoning is our inability to focus attention on any given task. Our desire to multi-task coupled with increasingly short attention spans has robbed us of our ability to focus. While conducting research for her book Mastermind: How to Think Like Sherlock Holmes, author Maria Konnikova attempted to counteract her tendency to shift focus so that she could see as well as observe. The pull of email and social media proved almost too powerful to overcome. She found herself fighting the impulse to look at each email that popped into her inbox.

I know that, even in my own house, achieving a state of Sherlock Holmes-like focus is extremely difficult. My family has a hard time sitting down to watch an episode of television without multi-tasking. My son studies for school while watching. My wife hops up to finish the laundry. I reach for the phone when it signals some type of update.

So how do we regain our super-powers of observation? It takes discipline and time. To become a great detective in our own right, we have to begin by making a concerted effort to block out distractions. It’s hard to focus on any one thing when others are competing for your attention. Konnikova found that she lacked the personal discipline to ignore the lure of online distractions. She actually downloaded an app to her phone that blocks access to certain functions for a predetermined amount of time.

Secondly, it takes practice. Blocking out distractions does nothing to keep the mind form wandering on its own. You have to train yourself to live in the moment – to fully immerse yourself in what’s going on around you. You have to reach a state where your brain actually observes what your eyes see. This doesn’t happen overnight. Like any skill, this level of mindfulness has to be practiced.

There’s another benefit to mastering this skill as well. Konnikova uncovered research that shows multi-tasking is counterproductive and damaging to your psyche. We’re actually more productive and happier in general when we allow ourselves to live in the moment and fully take in what’s happening around us. The constant distractions that we think keep us connected and efficient are actually having the opposite effect.

I’m going to give it a shot. I often feel frustrated at the length of time it takes me to complete certain projects. Something tells me it’s my inability to block out distractions that keeps me from focusing in a way that produces my best work. Stayed tuned for an update on my progress. Or just watch the news. You might see me listed as the man who solves the next big mystery.

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