Three quick notes

I will be guest blogger at the Author’s Globe blog – my blog entry will be published on Monday May 10th. The conference I will be blogging about is: Predictably Irrational: Hidden Forces Shaping your Decisions given by Dan Ariely from Duke/MIT and is on May 7th at 12 PM.

I will publish a longer post later but I just have to comment. The economy is still creating unusual situations: a friend of mine was told they didn’t have any projects for him anymore… after only three weeks on the job. How would you explain that at your next job interview? In your company, who is in charge of determining resource acquisition and demand? Also, I have learned of another IT executive leaving Miami for colder beaches (North Carolina). Need to find a way to stop the brain-drain affecting the area.

Last, but not least. I will be becoming a Venture Coach for the The Launch Pad at the University of Miami. The Launch Pad is a UM program for promoting and helping entrepreneurship in the area. (Hopefully) I will be coaching several of their startups. Helping new companies find their way is a great way to keep your edge. Will keep you posted.

Do you taste your own service?

How do you know your service? Do you test it? How do you test it? When I speak to companies about testing their service I usually get a positive answer ("yes, we do QA"). Excuse me, but testing the service is more than doing QA. I propose that you taste all aspects of the service from OUTSIDE your corporate wall - that means: experiencing the service using conditions similar to your clients, and calling customer service with real problems. To see how good do you taste, do the following:

• Use your service from outside your corporate network - use your customer's PC/device if possible. What if there are problems with their ISP? or some other thing outside your corporate network? Do not use any corporate advantage or identify yourself as an employee - do not seek preferential treatment. No VIP pass for you.
• Taste during high peak times - no experimenting at 3 AM when the servers are at 0.0001% utilization (unless that is your peak time). Do not use an super-machine with an infinite bandwidth connection (routed through NASA and a private line to the president).
• Call customer support with real problems - but use the customer's line (don't listen from the call center or call from HQ). I recently had a call with a company's customer service. I am pretty sure my call was between me in the US, one customer rep in India and another company's customer rep in the US. The quality of the call was horrible and it dropped several times.
• Do experiment with different ways to use the service: PC, iPad, Laptop, old PC... and call from landlines, cell phones, international phones (get your overseas relatives involved). 

Live your service from the outside. Get the real picture and the real taste.

Balancing growth is a must!

Every company dreams of getting larger and having more customers (hopefully capturing more value out of each transaction). Unfortunately, uncontrolled growth can disrupt your finely tuned-processes, it can overwhelm your Customer Support infrastructure, and thus, creating a situation where you are growing but dropping in customer satisfaction and repeat customers (it happened to Dell a few years back). So, what is the right choice? Control your growth? or Grow and fix things latter?

If you just grow and expect to fix things latter you may be in for a surprise: bad habits will have set in, your reputation may be already tarnished, your competition will be runing ads making fun of your service, and your customer will be looking for the next new thing! Internally, because of your hurry, you didn't build things the right way, you lost good but overworked persons and lost employee goodwill. Fixing things will cost you a fortune. I believe myspace would have been the Facebook of today if they had manage their growth better and kept their ears to the market.

Controling your growth may be the better answer. It allows you to keep your existing customers happy, while making shiny new customers. The difficult question for me is: what is the optimal speed for growth? The way to gauge your optimal growth speed is to use your "ears" to the market to determine when you are sacrificing quality for growth and shift your focus accordingly (hint: it isn't easy).

This is where your Product Management and Customer Service organizations are invaluable in getting a readout on the market (if you don't know what your customers think about you, you are in trouble). You need to be bold and put new infrastructure in place to support your growth, but as soon as customer satisfaction drops, you need to refocus on getting things under control again. If you keep doing this as fast as your organization is capable of, you are getting the best of both worlds. Hopefully, you will be fast enough as to not give your competitors a window of opportunity.

Don't let Customer Service ruin your customer's experience

There doesn't seem to be a customer service bone in some companies this day. I sent a scathing letter to an airline after five consecutive trips where every trip was either delayed or canceled – Their response was that they didn’t have time to answer my letter because they have received so many complaints lately that they couldn’t respond to them all.
After the initial shock was a sense that the company was no longer interested in customer service. The text of the response was neither apologetic nor palliative. It was matter of fact with no promise to address issues in the future. It was a customer’s dead end.

I have to wonder where does Customer Service at this airline sits with Product Development and Marketing – Is Customer Service even present when the company is addressing service problems. My guess is no. The communication showed no interest in their product, no Product Manager that I know of would sent that letter; and no rational Marketing person would sent such a diminishing communication. Their customer service board must have been asleep at the wheel on this one.

Negotiation - the lost art

I've been reminded of a lecture I attended at the Author's Globe because of a negotiation that I am currently involved with .  At the lecture, one of the exercises was to try to divide 7 marbles between two people. As expected most people tried to get 3 or 4 of the marbles, but there were a few participants that wanted all 7 of the marbles - and were being very vocal and proud about it.

The persons I am negotiating with is like that. They are pricing themselves out of the market, they want every benefit and they do not want to negotiate on anything. I have tried to create a win-win situation, but that means that we need to agree to divide the marbles. I understand that it may be a tactic on their part, but the offer is so out of the market and their attitude so final that I have started to wonder if what they want is for me to leave the negotiating table.

If we do not resolve the issues we will loose the 7 marbles and we will pay extra penalties, both parties will have to put extra marbles out of our pockets. Resolving the issue will create the most economic benefit to both parties, so I don't understand the hold out.

This also creates a bully-type situation, where if you concede too much (say less than 3 marbles) you are never going to be able to negotiate anything with them again - you would become a pushover. In this case unless somebody talks some sense to the other side we may have to end up leaving the negotiation table.

Business life vs. personal life - no difference

There really is no distinction now. Everything you do, can and will end up in your public profile: from that picture when you were drunk at that party to your profile in match.com (try goggling yourself). We all know that employers, business partners can look at our life footprint. Why do me still keep thinking that we have some privacy?

I was talking to an expert on managing your online presence and the conclusion we draw is that we are always "on". The paparazzi have invaded everyone's life. It is not only the high fliers of the world. Every time you go out of your house (physically or virtually) you are leaving a footprint that can haunt you for a long time - there are cameras everywhere.

This came about for two reasons: Tiger Woods' apology - BTW, he shouldn't have apologized to the golf community and media; and, the man who flew his plane into the IRS building. The amount of photos, video, texts, web pages that have been dug up and exposed is frightening. If you were involved in a high profile situation: how would your profile portray you?

You should know your economic environment style

I am always thinking about ways to make a business more efficient and cost effective. When functions, processes and companies are not well organized I can almost see the destruction of economic wealth. Because of this, there are two economic environments that suit me rather well:

1. The downturn. Companies are looking for ways to be more efficient and reduce costs. This plays beautifully into my natural way of thinking.
2. The boom. Increasing capacity by increasing efficiency is the name of the game. Companies recognize that it takes time to put new resources into place - so the more well thought out the processes, the better they can cope with accelerated growth.

What about you? Describe the variables that make your work more interesting (for you). Think about your strengths and apply them to the current environment. This should give you some insight into why your work feels so rewarding sometimes and why in others it just feels blah.

Now, turn the thinking around. Think about your company and what different environments increase your worth to them. Make sure they know your value proposition based on the current economic environment.