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Thoughts From The Road

Several years ago, Michael Treacy and Fred Wiersema published the highly acclaimed book, The Discipline of Market Leaders: Choose Your Customers, Narrow Your Focus, Dominate Your Market. The central premise of the book is that no company can succeed today by trying to be all things to all people. In other words, the authors maintain that a company must select one and only one value discipline as the basis for its competitive advantage: product leadership (innovation); operational excellence (low cost); or customer intimacy (service). While there is a certain level of competency that an organization needs in each area as a ticket to market entry, a laser-like focus on only one discipline is required to be a true market leader. They argue that it is not practical to attempt to lead in more than one of the disciplines as the cost and loss of focus will lead to sub-par performance in all disciplines.

While on vacation last week, I was reminded of this book by the actions of two travel-related companies I encountered. Customer service used to be first and foremost in the minds of airlines. Remember when the United Airlines’ slogan was “Fly the Friendly Skies?” Beyond survival, I am not sure what United strives for these days. It is doing everything possible to wring costs out of its operations. While it has not yet reached the point of coin-operated restrooms or water fountains, it is close. It amazes me to read in the press about the issues that United has with its customer-facing employees, but given the level of distrust and lack of harmony, it is no wonder that the airport and flight personnel struggle to keep a positive attitude toward their paying customers. Perhaps if the company accepted the fact that it has to move to an environment where the most important discipline is lowering costs, it could drop all pretense of attempting to provide high-quality customer service and compete solely on cost.

Consider:

• If the market changes in your business, are you prepared to reinforce your distinct competency rather than paying lip service to it?
• Do you and all of your employees understand which of the three disciplines is most important to you and your company, and does everyone take the steps necessary to maintain focus in pursuing it?

I also had the opportunity to witness the operations of Princess Cruise Lines last week. It’s a company that is and always has focused on customer service. The crew was, in a word, “amazing.” Every member of the crew, from the people who painted the deck railings to the room stewards, the pool staff and the wait staff, seemed to genuinely enjoy their work. These people, even those not in roles directly facing the customer, said “Hello” and made eye contact when they did. You could stop any of them and, even if it was not their area of operations, they would stay with you until they were certain that you found the person who could give you an answer. Don’t get me wrong. Much of what they do at Princess is also done with ala-carte pricing, but the employees have such a positive attitude that customers are willing to cheerfully pay the cost.

Consider:

• How can you get your customers to appreciate your go-to-market strategy?
• How do you instill in your people the willingness (and the desire) to go the “extra mile” to serve the customers?

It’s good to be home, and there’s much to consider and act on.

This publication is part of Blackman Kallick’s marketing of professional services, and is not written tax advice directed at the specific facts and circumstances of any person and/or entity. Contents of this publication are of a general nature, and you should not act on this information without obtaining professional advice from your business advisor that is appropriately tailored to your individual needs and circumstances. This written advice is not intended or written to be used, and cannot be used by any taxpayer, for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code.