Corporate Culture
Are your customers advocates, ambivalent, or covertly unhappy?
(01 Mar 2019; Reprinted from The Penn Wealth Report) I recall watching a cocky, arrogant little Oscar Munoz, CEO of United Continental (UAL $65-$90-$98), being interviewed on a major business network right after an incident in which a man was dragged off an overbooked United flight. The story, rightfully, made national headlines. Instead of simply apologizing for his airline's terrible handling of the situation, a defiant Munoz essentially blamed the passenger. Within hours his tune had changed—no doubt after someone at the company made him aware of the blowback—but the CEO's true colors were on display in that first interview.
Fast forward. I have been a reader of the Wall Street Journal for decades. I was once an advocate for the paper. Over the past four years, however, I have gone from advocate to someone who would jump ship as a subscriber at the drop of a hat. Unfortunately, the company's product isn't fungible—there just aren't many good alternatives out there, and they know it. Perhaps that is the reason they have spiked their prices by 16%, 14%, 12%, and 5.4% over the past four years, respectively. Maybe their input costs went up? Not likely—as a digital-only customer they would not save one cent if I left (one of the incredible benefits to a company operating in a digital world). So, I will politely complain to the company (as I have for the past two years), I will get a cold fish response, and I will fume on.
But is that really how to run a business? We cannot change someone else's organization, but we can shape our own. Always be considering how products and services can be improved, and never forget who is keeping the lights on. You may offer clients a unique value proposition, but that doesn't mean you shouldn't constantly be evaluating the customer experience. Look at Lord Jeffrey's words of wisdom (quote of the day) from the 18th century. Nothing has changed in the 270 years since he penned them; they remain excellent words to live by, and to embed within your own corporate culture.
Before the likes of Amazon, companies (from bookstores to clothing retailers) had much greater pricing power. While there may be only a few "top-notch" business publications out there right now, the news industry will undoubtedly continue to be disrupted by technological advances. For arrogant management teams who treat customers like cattle, that is bad news. For the new breed of disruptors who treat their customers like gold, that is incredibly exciting.
(01 Mar 2019; Reprinted from The Penn Wealth Report) I recall watching a cocky, arrogant little Oscar Munoz, CEO of United Continental (UAL $65-$90-$98), being interviewed on a major business network right after an incident in which a man was dragged off an overbooked United flight. The story, rightfully, made national headlines. Instead of simply apologizing for his airline's terrible handling of the situation, a defiant Munoz essentially blamed the passenger. Within hours his tune had changed—no doubt after someone at the company made him aware of the blowback—but the CEO's true colors were on display in that first interview.
Fast forward. I have been a reader of the Wall Street Journal for decades. I was once an advocate for the paper. Over the past four years, however, I have gone from advocate to someone who would jump ship as a subscriber at the drop of a hat. Unfortunately, the company's product isn't fungible—there just aren't many good alternatives out there, and they know it. Perhaps that is the reason they have spiked their prices by 16%, 14%, 12%, and 5.4% over the past four years, respectively. Maybe their input costs went up? Not likely—as a digital-only customer they would not save one cent if I left (one of the incredible benefits to a company operating in a digital world). So, I will politely complain to the company (as I have for the past two years), I will get a cold fish response, and I will fume on.
But is that really how to run a business? We cannot change someone else's organization, but we can shape our own. Always be considering how products and services can be improved, and never forget who is keeping the lights on. You may offer clients a unique value proposition, but that doesn't mean you shouldn't constantly be evaluating the customer experience. Look at Lord Jeffrey's words of wisdom (quote of the day) from the 18th century. Nothing has changed in the 270 years since he penned them; they remain excellent words to live by, and to embed within your own corporate culture.
Before the likes of Amazon, companies (from bookstores to clothing retailers) had much greater pricing power. While there may be only a few "top-notch" business publications out there right now, the news industry will undoubtedly continue to be disrupted by technological advances. For arrogant management teams who treat customers like cattle, that is bad news. For the new breed of disruptors who treat their customers like gold, that is incredibly exciting.