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Who Is Your Customer?

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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.

The Infinite Game – Simon Sinek

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The Infinite Game – Simon Sinek

Branch Operations.

In most dealerships the senior management structures are similar. There is a President, perhaps a CEO, in larger dealers a COO, followed by the Departmental Executives. There are numerous customer facing functions, and support facing functions.

The “Executives” focus on goals and objectives and market share. That is important, performance matters. Everything looks at goals and objectives: financial performance, sales, gross profit, expense control. All are very important. What about the Customer Experience? Who is responsible for ensuring that the Customer is at the forefront of everything that we do?

Who is the person that creates the “vision” for the dealership? Who is it that inspires every employee to be driven to get better at what they do – at “delighting” the customer?

This is an area that Simon Sinek points at in his recent book “The Infinite Game.”

He posits that we are all too concentrated on winning and avoiding losses. We are focused on the short term with no real attention paid to the future. But he isn’t talking about next year or the year beyond. He is talking in terms in decades. How can we make our businesses sustainable over time?    

This caused me some interesting reflection time. Most of you know I swam when I was a young person. Swimming is all about improving your own performance and less about “beating” the other swimmers in your race. I think that gave me a focus that was somewhat different than my peers. I was always about making everything better. There was no such thing as “best.” That is a “point in time.” Think about GE under Jack Welsh, arguable one of their best leaders to date. He was always about the short term. His comment was “Isn’t long term just a series of short terms?” Well to be honest it isn’t. As a result, GE since he left has had serious performance failures. Jim Collins, author of “Built to Last” among others, famously compared two companies in the same Industry and pointed at similar things. Most of our businesses focus on the short term. A study by McKinsey reported that the average life span of a S&P company has dropped since the 1950’s, over a span of fifty years, from sixty-one years to eighteen years today. Harvard Business Review, and many others, report that 70% – 90% of acquisitions fail. A rather serious statement on the ability of business to merge two businesses together.

Sinek contends that is because of our focus on the short term at the expense of the long term. In his book “Start With Why,” on of the most watched TED Talks ever he says; “Most people know What They Do, some can even tell you How they do it, but very few people can tell you Why they do it. It isn’t about making money.

“The Infinite Game” uses the United States as an example of a “Business.” It started with the War of Independence. The Declaration of Independence was not a statement of getting rid of the control of the country by Great Britain. It was about “We hold these truths to be self-evident, that all men are created equal. That they are endowed by their creator with certain unalienable rights, that among these are Life, Liberty and the Pursuit of Happiness.” That made the effort worthwhile. They then got to work on writing the Constitution which set out a series of enduring principles to protect and advance their big, bold, and idealistic vision of the future. That is a future that we still strive to achieve and will constantly be aiming at that vision. It is not an end game it is a journey.

In order to stay in the game long term, to stay in business, long term we must be good operationally at all of those win/lose games we play; market share, gross margin and expense control, asset management, etc.. That this is critical, is something on which we can all agree. But in order to have long term sustainable success it is also about the culture of the company. What makes each employee strive to be better at what they do in order to satisfy their customers.      

I highly recommend that you read “The Infinite Game” by Simon Sinek. It might provoke you to reevaluate your view on how your business operates. 

The Time is Now.

Making Sense of the Numbers

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When we look at our businesses, our numbers need to add up.  But how do we calculate the potential represented within a sales territory?

It begins with the potential business we can earn from each of our customers.