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wlkleo00cpz · Posted: Thu 21:06, 05 Dec 2013 Post subject:

Tom Northup Article Feed :
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About the Author:
How to Thrive in the New EconomyArticle Summary: In past downturns, companies easily rode out the few months of poor growth and quickly turned themselves around to generate stronger revenue and profitability. Our current economic malaise is different. This is not a typical business cycle downturn, it is a balance sheet downturn caused by the decades-long super debt cycle that collapsed five years [link widoczny dla zalogowanych] ago and which will take more years of recovery time.
Tom Northup is a recognized management expert, consultant, speaker and coach. As a former CEO a Tom understands the complexities faced by today's executives. He is the author of the book, The Five Hidden Mistakes CEOs Make. How to Unlock the Secrets and Drive Growth [link widoczny dla zalogowanych] and Profitability. Go now to or BuildingStrongerLeadersBlog to learn more.
Category:
Significant change is here and affecting all of us.
In past [link widoczny dla zalogowanych] downturns, companies easily rode out the few months of poor growth and quickly turned themselves around to generate stronger revenue and profitability.
Our current malaise is different. This is not a business cycle downturn, it is a balance sheet downturn caused by the decades-long super debt cycle that collapsed five years ago and which will take [link widoczny dla zalogowanych] more years of recovery time. We face difficult political and financial challenges. The next decade will see slow growth, higher unemployment, and frequent ups and downs in the economy.
Peter Drucker said, "The world is changing at a rapid pace and [link widoczny dla zalogowanych] only those who understand what those changes mean will be poised to prosper under the new rules."
As a result of our current economy, it is time to ask what your "new normal" will be over the next few years as you work to develop new ways to create sustainable revenue and profitability.
It is certain that if we keep doing what we have always done, we will NOT keep getting what we have always gotten.
Change is happening now. Our job is to [link widoczny dla zalogowanych] react proactively to it by developing change in the culture of our organization.
This new economy has put most of the conditions we face are [link widoczny dla zalogowanych] beyond our control. In this environment, strong leadership is increasingly important. We must review, challenge and change the areas we do control if we want sustainable [link widoczny dla zalogowanych] revenue and profitability.
The condition of constant change requires new thinking from a pro-active management to strategically transform your organization. We need a clear strategy and effective operations to implement strategic transformation and develop an outstanding organization. Effective leadership is key to both strategy and operations. In the final analysis, if there is clear strategy and effective leadership the organization will achieve a high [link widoczny dla zalogowanych] level of performance.
Clear strategy will not save you if you have an ineffective leadership culture. Employees alone will not make the changes necessary to achieve success.
Effective leaders understand that their company culture, which is primarily created by leadership, is the key to developing a strong organization. They want to proactively react to change. They build a results-based culture of enthusiastic, motivated, confident employees committed to achieving the organization's future vision.
Effective leaders understand [link widoczny dla zalogowanych] that the more success their employees have the more success they will have. Good managers achieve results through other people. Great managers achieve results through other people and develop those people's skills and effectiveness while doing so. [link widoczny dla zalogowanych] Effective leadership is the necessary catalyst for people development. People development is the necessary catalyst for organizational development. Strategic transformation is people transformation.
As a practical example, let's look at one [link widoczny dla zalogowanych] of the most basic areas we control; how we view and relate to customers. [link widoczny dla zalogowanych] We [link widoczny dla zalogowanych] all have personal stories of weak customer service from retail clerks, telephone service reps, and corporate sales people. When the economy was booming, we could ignore this condition in our own company. Yet there has always been a direct relationship between service and profitability.
For more than 10 years, Gallup research has consistently [link widoczny dla zalogowanych] found that emotionally engaged customers deliver far superior financial returns than disengaged customers. Fully engaged customers deliver a 23% premium in terms of profitability, revenue, and relationship growth over the average customer. Disengaged customers deliver a 13% discount.
For many there is a discrepancy in how we view the quality of our customer service. A Bain & Company survey found 80% of companies believe that the service they provide is superior. Yet only 8% of customers describe the service they receive as superior.
We often equate giving good service with creating customer satisfaction. The true value we give is equal to the sum of the values of customer relationships. Excellence in customer service is about creating customer loyalty. Knowing the difference between satisfaction and loyalty is the first step in developing customer-focused excellence in your organization. Smith & Rutigliano found that many industries have customer 'satisfaction' levels that reportedly range from 75%-85%, yet the numbers for customer engagement are substantially lower, averaging about 18%.
Building loyalty is about giving memorable service. Do we want customers' memories to be positive or negative? When the company doesn't give customers the help they expect, the need still exists but the customer is [link widoczny dla zalogowanych] now dissatisfied. Memorable service is achieved through employees who are positive, are friendly and build rapport. A satisfied customer may still shop the competition. A loyal customer doesn't.
Build loyalty in customers by providing memorable service. Our customer's perception is reality. When we talk about excellence we are using our word. Instead, we want to build a memorable experience from the customer/s perspective.
Developing customer loyalty is only one example of the changes we need to make to create our future success. The change process can be difficult and take time. To develop effective change we need to eliminate organizational silos and change individual behaviors and attitudes through effective leadership.
Strategically transform your organization to build an outstanding company with a positive change oriented culture of motivated employees. Build memorable service and loyal customers. Leadership is the single most important factor in determining the level of productivity, achievement, and your results. Leadership drives performance. Performance drives results. Strong results position you as a growing market leader with competitive advantage and sustainable revenue and profitability.
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