This is the first in our series of articles that looks at leadership capacity and its impact on organizational growth and transformation. The full series will be available for download as a white paper once it is completed.

Leadership capacity is more than simply skill development; it’s about performance, growth, transformation and change. For the purpose of our discussion in this series of articles, let’s define it as;

“Leadership Capacity is the skilful use of leadership attributes for the growth and development of ourselves, our colleagues and our organization”.

Great leaders not only understand how to engage and inspire their teams to get the best results — they understand the need to create participatory and collaborative processes that develop the abilities of the next generation of leaders.

Leadership lays the groundwork for success

Successful companies do not happen by accident. They are the result of building effective leadership capacity and an awareness and willingness to take the necessary steps in identify internal talent and nurture them into the leaders of tomorrow.

Leadership lays the groundwork for success in 3 key ways:

1. Builds an internal development system: Not unlike a great sports dynasty with a deep pool of talent in their farm teams, strong leaders foster leadership in all levels of their organization. When leadership capacity is developed at all levels of the organization, it creates a farm system of future leaders that will be prepared to move up and take on new challenges, preventing the organization from experiencing a future leadership gap. Internal leadership capabilities also create a rich internal resource of new and innovative ideas that management can consult when charting out the future of the organization.
2. Creates a competitive advantage: Companies that invest in leadership development are the minority. Organizations and their leadership get caught up and focus on the day to day operations of the business — the most pressing issues that drive short term results. They forget to invest time in the future because the ROI is less obvious. When this happens, it is the long term vision and growth potential that tends to suffer because of gaps in leadership transition. If your organization is one of the few that consistently commits to developing internal leadership capacity and is constantly producing future leaders, you will have an advantage over competitors — not only because ideas and innovative thinking are constantly being revitalized, but also the ability to attract the best new talent that can be developed into future leaders.
3. Fosters innovation: Leaders at the top of the organization need to intentionally gather information from across the organization. To consistently have the ability to grow and stay fresh with your thinking you need leaders at all levels of your organization that are able to evaluate activities and provide honest feedback based on understanding the vision and values of the organization. When employees are given additional responsibilities and the ability to make decisions, this puts them in a position to expand their capabilities, grow as an employee, and develop their skills — which leads to new insights, perspectives, and efficiencies that benefit the broader organization as well.

Leadership elevates your ability to grow

Leadership has a direct impact on your company’s ability to grow. While much of the attention about leadership is focused on the leaders at the top of the organization, it is the leaders at the mid-level and front line that have the greatest direct impact on growth.

No matter where your leadership development is as an organization, here are 4 critical elements to consider when evaluating the overall leadership capacity and culture within your organization.

Establish and communicate a clear direction: Strong leaders communicate a vision that inspires and attracts people with shared beliefs and values. Having a clear direction ensures that the correct infrastructure, resources and people are in place to advance the growth process. A clear direction also provides leaders with a measuring stick they can use to gauge decisions, strategy and future planning. A clear direction, clearly communicated is also a highly effective recruitment tool for other top performers.

Define goals and objectives: Leaders that clearly lay out the specific goals and objectives not only for the organization, but for each department, project, and employee make it easier for employees to commit to those outcomes. Everyone needs to be clear on what success looks like in the organization. Leaders that define what needs to be done will have greater success gaining the desired results from their people.

Set standards of behaviour: Outcomes are important — but by themselves can be detrimental to the organization if the “how” is also not clarified. Great leaders understand that leadership starts first through the behaviours they model; however, true leadership capacity is more than simply leading by example. Leaders must create a working environment that fosters and rewards desired behaviour in addition to the desired outcomes.

Embed continuous improvement into your culture: Many organizations are pretty good at the first 3 elements — but fall down in the area of continuous improvement, which is the most critical. This only occurs when everyone in the organization is committed to building their own leadership capacity and helping the organization grow and evolve based on people willing to providing input from across the organization.

If the organization only has direction, goals and behaviours — without the consistent, positive tension of personal contribution and improvement, senior leaders lose the benefit of the wealth of ideas from less senior leaders across the organization. Resultant, the farm system is not strengthened and the flow of innovative thinking is stifled.

What can leaders do tomorrow?

Building out your leadership capacity must one of your prime objectives. Without building your personal leadership capacity, you will inhibit both your personal and companies’ ability to change and grow.

Leadership impacts performance and performance impacts growth. Growth will not happen if people do not perform. Effective leadership builds more effective people, teams, and organizations. When leadership is present at all levels it helps to accelerate business results and makes it possible to fire up change and growth.

Consider this information and think about how it applies to you as a leader and your company. Think about the current state of your leadership and think about ways that you can put yourself in a position to be a better leader and achieve change in your organization — even from the bottom up.

The next article in our series will examine the characteristics that leaders must possess to create change and improve their companies’ ability to grow.

It’s essential that staff receive support or they can’t do their job properly. Support isn’t limited to merely work-related aspects of the job but to other things such as morale and recognition as well.

There are plenty of different ways employers can support their staff. Here are a few thoughts to keep in mind in your work environment.

Training is vital
It’s crucial that staff receive all necessary training when they start a job and also ongoing training as often as required. It’s also essential that training is consistent for all staff members. It’s not acceptable for answers to vary from one employee to another because this can cause confusion and further problems. Proper training is inevitably what makes better quality employees.

Positive work environment
Whether you work in a call centre, an office or a retail store, it’s vital that you have a positive work environment. If employees dread the thought of going to work each day, they’re not going to perform at their best and they may even feel resentful for being there.

There are many ways to create a positive workplace. Attitude is essential — people should be respectful and friendly towards one another. Bitchiness or backstabbing should not be tolerated. Not just by supervisors, but among colleagues as well. If anyone has issues, the supervisor/manager should always be available to help resolve such problems so they don’t linger and taint the rest of the workplace.

Décor and proper equipment also contribute to your environment. Do you have ergonomic chairs and desks? Do you have a proper lunch room where staff can take breaks away from the public eye? Is there somewhere you can store your personal possessions if you don’t have a desk? All of these things contribute to a harmonious working environment.

Motivation is an individual thing
Employers should know what motivates their staff and use that knowledge to build stronger relationships. People are motivated by different things and so it’s important to learn what motivates each individual if that’s possible and incorporate that into your overall leadership strategies.

Take the time to get to know what motivates each member of your team. Having a staff suggestion box is a great way to get ideas and suggestions. Motivations change over time and if you want to keep your team working at peak efficiency, it’s vital that you learn what’s important to them.

Recognition and rewards
Staff have to be acknowledged and rewarded for the good work they do. Financial bonuses are always great if they are available — but they’re not your only option. You could have an employee of the week or month plaque that is presented and then displayed on the wall for everyone to see. Acknowledgement for most improved staff members could be another idea. When staff do something wrong, managers are quick to admonish them so they should be just as quick with their praise, in whatever form they choose. Like motivation, your team can also suggest great ideas on what works for them.

Scope for advancement
Most people don’t like to feel trapped in a dead end job. Internal promotions should always be considered before advertising externally. Staff are more motivated to excel in their work if they have a vision for the future growth and development.

If you’re not seen to be actively supporting your staff, you can’t expect them to perform at their best. Everyone wants to feel appreciated and to be a part of a team. If you do that, you can’t lose.

This is our final article in the series of six articles dealing with different aspects of excellent customer service and how it leads to an increase in your overall profitability. It is now available for download as a White Paper at www.BillHogg.ca.

If you have been following along, we have focused on a number of elements of the customer service experience that lead towards building stronger — more profitable — customer relationships.

Every single interaction with a customer affects your business. Whether it is positive, neutral or negative, the goal is to build a loyal relationship so they return again and again to spend their money with your business — and tell their friends. This leads to greater profitability. The loyal customer is the ideal customer and all employees should be focused on building loyalty at every opportunity.

In this article we’re going to cover a few key ways to turn customers who are satisfied into those loyal customers who are responsible for most of your company’s income. Loyal customers mean more profitability for the company and stronger job security for the employees. Customer loyalty literally pays the wages so taking active steps to turn satisfied customers into long-term loyal ones is in everyone’s best interests.

Actively solicit customer input
How many companies demonstrate an interest in what their customers want to see happening in the store? Regular customers may surprise you with ideas that are really good. Of course there are bound to be some that are impractical. But why not ask them what they would like? Tap into them as a vital resource.

There are different ways to get customer input. One method would be to have a suggestion box in a prominent place. Another would be to have a section on your website that enables customers to provide feedback for you to act upon.

Although many businesses can use a similar technique, we’ll use a restaurant as an example. As patrons get up to pay their bill, many restaurants ask “was everything okay…” only to receive a curt “yes” as the patron rushes out the door. A better way to handle this would be to ask them what you could have done to improve their dining experience.
This type of question signals that you are interested in hearing what they have to say and encourages customers to provide feedback on how you can improve — versus just hearing from customers who want to complain.

It’s essential that you take action based on the feedback provided and you could even give that customer a $10 voucher to use on their next visit so they can see for themselves that you have listened and taken action.

Treat every customer like pure gold
Every customer that walks through your door is a chance for you to make a good impression and create a loyal customer. But how do you do this? You have to “read” each customer because they’re all different. Watch their body language. Do they come in and demand immediate attention or do they want to browse first?

We all experience that salesperson that comes up and offers help and if you don’t need it, they stand there like a vulture, watching and waiting. Let them browse if that’s what they want. When they want help, they’ll ask for it. Once you have made yourself available, step back and give them space.

It’s essential that you provide the service they need without being too pushy. You can actually drive them out the door if you push too hard. Once they ask for your assistance, then it’s time to shine. You want to make their customer service experience a positive one so they’ll come back again and again.

Try to personalize each customer interaction to suit the specific customer. If they’re chatty, have a brief chat with them while helping them. If they prefer to simply pay for their goods, handle them courteously and professionally so they can get on with the rest of their day.
Anticipate and meet their needs on every level and they will have no reason to go elsewhere. If you exceed their customer service expectations, they’re well on the way to becoming loyal customers.

Look for Small Ways to Exceed Expectations
In many cases, your products or services may be similar or identical to those of your competitors. If that’s the case, you have to find the small things that will differentiate your experience and add up to an outstanding customer service experiences that not only inspires satisfaction but loyalty too.

Some examples can include: ordering in items that you may not normally stock, carrying heavy items out to the customer’s car, providing a delivery service, offering a free gift wrapping service, ensuring your store registers are always open when the queues build up and being a little flexible in your hours of operation if circumstances dictate.

Customers see these little things as big to them although they may seem insignificant to your overall business. If you’re doing all the extra things that your competitors don’t care enough to do themselves, you’re sure to stand out as a business that really cares for its customers in every possible way.

Build relationships
Everyone likes to hear their name used by other people, whether they realize it or not. Employees should get to know customers and use their name (if appropriate) whenever possible. This creates a relationship that is a little more than just an employee/customer relationship.

If your team greets people by name whenever they enter the store, the customer will feel welcomed and be more inclined to keep coming back. Obviously this isn’t always possible but it’s definitely easier to do than people think, especially if the same customers keep on coming back.

If you keep a database of your customers, you can send them promotional material and discount information on a regular basis. While this may not be a new idea, you can add another function to your database. Utilize it as a reminder service and send out birthday cards to your customers, letting them know that you do care. Make sure the card is handwritten so it’s personal. Perhaps you can include a small gift card or voucher to honour their loyalty and encourage a return visit. This sort of touch lets them know you care.

Conclusion
We have covered a lot of different aspects of customer service in this series. Everything is important when dealing with customers, even if it may not seem that way at the time. Loyalty means everything to the longevity of the company and employees must be trained to have “big picture thinking.”

Without customers, your business would cease to exist and so it’s critical you do everything in your power to ensure that every single customer gets the best treatment, no matter what they need.

It’s not enough to merely satisfy your customers — you can’t differentiate yourself by simply providing that basic level of service. You need to work smarter to build loyalty.

And remember, make them unhappy, even once, and your competition will be glad you did.

This is the fifth in a series of six articles that looks at different aspects of excellent customer service and how it leads to increased overall profitability. The full series will be available for download as a white paper once it is completed.

In the last article, we covered a few of the reasons why customer service should be better than expected — but what happens when we fail to deliver an exceptional experience.

A negative experience often means the customer goes elsewhere with their business — and often they tell their friends. So each lost customer means more than just their lost business, but it results in lost business from their friends as well.

However, research also tells us that if we are able to recover from a poor experience — then customer loyalty actually increases. So if you can turn a negative experience into a positive one — that can lead to loyal customers and increased profits for the company.

In this article, we will cover 5 methods for turning a negative into a positive customer service outcome and helping to keep customers in the process. Customer retention is vital. It’s far easier and cheaper to retain customers than to find new ones.

Remain Calm
If an employee is confronted with an angry or upset customer, they should let the customer vent to express their frustration. No one is rational when they have pent up anger and emotion. Remind employees that the customer is angry at the company and not them as an individual — they’re simply the person in the position of handling the complaint. If an employee took every complaint personally, they wouldn’t survive long in the job.

Once the irate customer has expressed their frustration and calmed down, the employee can ask questions and determine the actual problem. Listen to the real concerns because part of complaint handling is giving the customer the chance to express themselves. Then training can kick in and the problem solving techniques will be put to good use to ensure that whatever the concern, the customer leaves the store satisfied because proper action has been taken to rectify the problem.

Empathize
The employee can diffuse the situation by showing the customer they’re “on their side” and want to help. Sincerity is the key. The customer should feel the employee is there to help instead of arguing or disagreeing with what has been said.

Avoid typical phrases such as “it’s company policy” or “I can’t do that” because they’re negative and will only inflame the situation. Calming phrases such as “Can you tell me exactly what happened?” or “I appreciate your frustration and I am here to help” will go a long way towards winning the customer’s trust.

Lastly, don’t be afraid to say you are sorry for the way they are feeling or their experience. “I’m sorry to hear about your bad experience — what can we do to make it right” is totally different than apologizing because the employee themselves made a mistake.

Evaluate
Review the situation objectively. Ask the customer what would satisfy them and determine the best course of action. Talk through different options if there is more than one to choose from and let the customer provide input on what they want to happen.

In these situations, it’s critical that the employee can think “outside the box” as not all complaints fall within company policy. However, there are often solutions that can be solved by using guidelines that satisfy the customer’s needs and still allow the employee to follow correct procedures to avoid possible future problems.

Take action
Once the optimal solution has been determined, the employee should advise the customer what steps need to be taken to implement that solution. It may be easy to do or it could mean a few different steps need to be taken to ensure the problem is rectified completely.

It’s essential that your team look for every opportunity to exceed a customer’s expectations. It’s one thing to merely satisfy their current problem but if you can take things a step further, the customer will not only be satisfied but may convert to being a loyal customer because their problem was addressed professionally and promptly.

Check back/verify
It’s not enough to just put steps in motion to satisfy a customer. It’s vital that those steps be followed up and your team should ensure that everything has been done the way they promised. Actions may need to happen in other departments or places beyond their control and so follow up may be necessary.

Contact the customer once everything has been taken care of and verify that they’re satisfied with the final outcome. Express appreciation for bringing their complaint back to your company so you had the opportunity to fix the problem.

You should always be looking to go the extra mile for the customer to keep them happy. It may not always work but the effort will often be appreciated. It will help turn the negative experience into a positive one with a hopefully happy ending.

Finally, remember to always thank them for their business and for allowing you to help. After all, they are the customer.

In our final article we’re going to talk about 4 Ways to Turn a Satisfied Customer into a Loyal Customer because that’s where the bulk of the company’s profits are made.

There are many different aspects of work as a customer service representative, regardless of whether it’s face-to-face or on the telephone. Understanding some of the key tips that improve customer service will enable staff to do their job better.

Make people feel welcome
People should always feel welcome when they enter your store or office, regardless of the reason. If they call, they should also be greeted with a friendly voice. This helps people feel more comfortable and the likelihood of them using your services is far greater.

Listen first
You can’t hope to provide great service unless you know what your customers want. Ask questions and listen to what they say. Give them your undivided attention and then help them to the best of your ability. Remember that all customers are different. This means their requirements may also be different, even if only slightly. If it’s within your power, you should help give them exactly what they need.

Say yes as often as possible
Some customers ask for things that may not be considered “normal” but could still be possible. Never say no unless something is impossible — and even then provide an alternative if possible. If you don’t know if something can be done, check with your supervisor before giving a final answer. Then the customer will know that you have at least tried.

Don’t be afraid to apologize
Things can sometimes go wrong, whether it’s your fault or not. However, you’re a representative of the company and if something has gone wrong, offer a sincere apology immediately on behalf of the organization. Customers appreciate acknowledgement of errors and once the apology has been made, you can then help remedy the situation so the customer ends up being a happy one.

Follow-up
If a customer is unhappy, try and help them. That’s a given. However, what often happens is that follow-up promises aren’t kept. If you promise to do something, it’s imperative that you do it. If you promise to return a call on a specific date and time, do it even if it’s to report that you don’t yet have the answer the customer needs. They’ll usually be prepared to wait longer if you’re honest and keep the lines of communication open.

Phone tips
In addition to the previous tips, there are some that specifically apply to people dealing with customers on the phone. Your phone manner is extremely important. You should always be courteous, polite, calm and positive. You’re there to help the customer, no matter what issue they have. Avoid using jargon when dealing with a customer as they probably won’t know what you’re talking about and that will only make them more frustrated and angry.

It’s a common thing to have to place someone on hold. Ask them if it is okay to do so and make sure you keep coming back to them if they have to wait a while. There’s nothing worse than being on hold and listening to the same droning company messages over and over again, or even worse, getting cut off.

If you have to transfer someone, make sure it’s a warm transfer. Introduce them to your colleague and explain the situation before letting them take over the call. Transferring someone into another queue where they end up having to explain the same problem all over again is the quickest way to make your customer angry.

If you get an angry or upset customer, let them vent. Someone else may have placed them in the queue and so they’re already upset when you answer the phone. Although it’s not your fault, apologize in a calm voice and tell them that you’ll endeavour to solve their problem if they can just explain it to you clearly.

Customer service doesn’t have to be complicated. Quite often it’s employees that make it that way through bad behaviour — or simply not caring enough to look after customer needs. If expectations are set early and staff are given the proper training, angry or upset customers will be kept to a minimum.