In Business – Why are you here?

WHO is your CUSTOMER?

I had an interesting conversation with Caroline, my daughter, yesterday. Caroline is a teacher, and a very good one. Of course, I am going to say that but it is very true. She teaches in an extremely underprivileged community where a very large percentage of the student body who are English Learners. Further, as with the majority of the students in our region, they rely heavily on the food programs available through schools to be able to have a meal each day. With many agricultural jobs, we see very hard-working families who still need the extra resources. A difficult situation to say the least.

We were talking about education and how this current situation, with the country closed down, is going to affect the future of education. My granddaughter goes to University, it is closed and her classes are all being conducted virtually: even the labs, as she is in the sciences. My grandson is in High School and all his classes are done virtually. My daughter teaches High School and she teaches all day, every day, virtually. Imagine that, would you? They are all in school and no one leaves home.

This is what I have been talking about since the early 2000’s. From the Khan Academy, to every major University, to IT training, most everything that anyone wants to learn is available on line. AND for the most part it is free. At Learning Without Scars we have provided a learning platform for individuals who want to improve their skills and knowledge. Unfortunately, that is not everyone. Being optimistic I believe that more people, particularly the younger generations will change that and that they will constantly be striving to make themselves better. Of course, the world has to catch up. In order for online education to succeed, our students need to have access to a decent connection to the online world. That is still not true in many parts of our country today.

Which brings me to the customer and my conversation with Caroline. The end customer of education is society. School is the vehicle which every community uses to develop the people that will create the social and economic activity that will better society. BUT, the primary customer of the school systems, of education, is the student and their family. Too often that fact gets lost in the bureaucracies of the education community: the Federal Government, which does not have a role in education enumerated in the Constitution; the State Governments, who have primary responsibility, the School Boards with elected Administrators, many of whom have never taught in a classroom in their lives, municipal governments, who receive the taxes to pay for schools and on and on. Who is thinking about the customer here? Of course, it is the teacher. But who supports that teacher?

Now look at your business. WHO is YOUR customer? That should be a very easy question to answer. I would like you to think about that for when we come out of this economic shutdown. WHO is YOUR customer? Is it the person coming in to order parts? Is it the person who calls to schedule maintenance or a repair on a machine? WHO is it? In many of these cases it is an employee of a business who uses equipment. But one more time please – WHO is the CUSTOMER?

I am hopeful that every distributor and dealer will come to a different conclusion than what has been true the past three to four decades. I am hopeful that they will begin to operate in a radically different manner than they have recently. I am hopeful that the employees will be given more and better tools to serve the machine owners. But then again, I am an optimistic person.

Things won’t be any different coming out of this economic shutdown unless we make them different. And that means some serious thinking about WHO that CUSTOMER really is that you are serving.

The Time is Now.

Business Models

Since 1980 when Ronald Reagan and Paul Volcker fixed the high levels of inflation with a drastic increase in interest rates we have been operating on a “cost control driven” business model.

This model now needs to have a dramatic review and update.

  • I don’t believe anyone can make money by reducing costs alone.
  • We are driven by sales per employee metrics to the point of obsession.
  • We have beat up supply chains to extract costs.
  • Just in time inventories supply chains are the norm.
  • We have “computerized” business processes, moving a paper form to an input screen. We have not improved them.
  • We have concluded that market coverage is too expensive and seen precipitous reductions in market share as competitors have taken our customers by simply calling on them.
  • We have taken on incredible levels of risk thinking low interest rates are with us forever.
  • Rental inventories have grown and money has been made without the offset to risk abatement.
  • With market changes the escape valve for too much inventory is nowhere in sight.

Now is not the time to have the technocrats and managers, alone, determine what needs to be done to improve business. Now is the time to include and involve every single employee in this effort. Never forget that the employee doing the job should be the one that knows that job better than anyone else and to ignore them is not only wrong but truly a shame.

The Time is Now.

Dollar Time

We are all on “lock down” today. Some of us are working from home, using communications and virtual software tools, while some of us are going into the office or workplace. Let’s use this time as effectively as possible. So, if you have time think about your job. What can you do, should you do, to make it better? What do we do to eliminate duplications, minimize mistakes, decrease expenses, increase sales? Make a list, talk with your coworkers about it. Let’s do something different this time. Send me your ideas. Send it to ro*@******************rs.org. After a week or so I will consolidate all these ideas and put them in a table and send them back to you. Then you can look into making the necessary changes that you identified or someone else suggested. Let’s make time as effective as we can.

The Time is Now.