In eras following downturns and scandals, it is incumbent upon good companies to go the extra distance to be ethical and set good examples. Demonstrating visible caring for communities by company executives is the ultimate form of potlache.
No matter the size of the organization, goodwill must be banked. Every company must make deposits for those inevitable times in which withdrawals will be made.
To say that business and its communities do not affect each other is short-sighted… and will make business the loser every time. Business marries the community that it settles with. The community has to be given a reason to care for the business. Business owes its well-being and livelihood to its communities.
Business leaders have an obligation to serve on community boards and be very visible in the communities in which they do business. If done right, community stewardship builds executives into better leaders, as well as receiving deserved credit for the company. Civic service is the ultimate way to steer heir apparents toward the leadership track.
Communities are clusters of individuals, each with its own agenda. In order to be minimally successful, each company must know the components of its home community intimately. Each company has a business stake for doing its part. Community relations in reality is a function of self-interest, rather than just being a good citizen.
Companies should support off-duty involvement of employees in pro bono capacities but not take unfair credit. Volunteers are essential to community relations. Companies must show tangible evidence of supporting the community by assigning key executives to high-profile community assignments. Create a formal volunteer guild, and allow employees the latitude and creativity to contribute to the common good. Celebrate and reward their efforts.
Publicity and promotions should support effective community relations and not be the substitute or smokescreen for the process. Recognition is as desirable for the community as for the business. Good news shows progress and encourages others to participate.
The well-rounded community relations program embodies all elements: accessibility of company officials to citizens, participation by the company in business and civic activities, public service promotions, special events, plant communications materials and open houses, grassroots constituency building and good citizenry.
No entity can operate without affecting or being affected by its communities. Business must behave like a guest in its communities, never failing to give potlache or return courtesies. Community acceptance for one project does not mean than the job of community relations has been completed. It is not ‘insurance’ that can be bought overnight. It is tied to the bottom line and must be treated accordingly, with the resources and expertise to do it effectively. It is a bond of trust that, if violated, will haunt the business. If steadily built, the trust can be exponentially parlayed into successful long-term business relationships.
Potlache
Potlache is the ultimate catalyst toward Customer Focused Management. It means extra gifts, beyond value-added, visionary mindset and the ultimate achievement of the organization.
The word ‘potlache’ is a native American expression, meaning ‘to give’. For American Indians, the potlache was an immensely important winter ceremony featuring dancing, food and gift giving. Potlache ceremonies were held to observe major life events. The native Americans would exchange gifts and properties to show wealth and status. Instead of the guests bringing gifts to the family, the family gave gifts to the guests.
Colonists settled and started doing things their own way, without first investigating local customs. They alienated many of the natives. Thus, the cultural differences widened. The more diverse we become, the more we really need to learn from and about others. The practice of doing so creates an understanding that spawns better loyalty.
When one gives ceremonial gifts, one gets extra value because of the spirit of the action. The more you give, the more you ultimately get back in return. Reciprocation becomes an esteemed social ceremony. It elevates the givers to higher levels of esteem in the eyes of the recipients.
Potlache is a higher level of understanding of the business that breeds loyalty and longer-term support. It leads to increased quality, better resource management, higher employee productivity, reduced operating costs, improved cash management, better management overall and enhanced customer loyalty and retention.
Community Relations
The well-rounded community relations program embodies all elements: accessibility of company officials to citizens, participation by the company in business and civic activities, public service promotions, special events, plant communications materials and open houses, grassroots constituency building and good citizenry.
Never stop evaluating. Facts, values, circumstances and community composition are forever changing. The same community relations posture will not last forever. Use research and follow-up techniques to reassess the position, assure continuity and move in a forward motion.
Companies need community relations at all times:
Prior to coming into locales.
Every year in which they do business there…in good and bad economic times.
When they are leaving an area.
Even after they have ceased operation in certain communities.
In today’s economy, no business can operate without affecting or being affected by its communities. Business must behave like a guest in its communities… never failing to show or return courtesies.
Community acceptance for one project does not mean than the job of community relations has completed. Programs always shift into other gears… breaking new ground.
Community relations are not ‘insurance’ that can be bought overnight. It is tied to the bottom line and must be treated accordingly… with resources and expertise to do it effectively. It is a bond of trust that, if violated, will haunt the business. If steadily built, the trust can be exponentially parlayed into successful long-term business relationships.
About the Author
Hank Moore has advised 5,000+ client organizations worldwide (including 100 of the Fortune 500, public sector agencies, small businesses and non-profit organizations). He has advised two U.S. Presidents and spoke at five Economic Summits. He guides companies through growth strategies, visioning, strategic planning, executive leadership development, Futurism and Big Picture issues which profoundly affect the business climate. He conducts company evaluations, creates the big ideas and anchors the enterprise to its next tier. The Business Tree™ is his trademarked approach to growing, strengthening and evolving business, while mastering change. To read Hank’s complete biography, click here.
https://www.strategydriven.com/wp-content/uploads/HankMoore2.jpg333290StrategyDrivenhttps://www.strategydriven.com/wp-content/uploads/SDELogo5-300x70-300x70.pngStrategyDriven2012-10-05 06:01:522015-12-19 19:29:33The Big Picture of Business: The Business Leader as Community Leader
The Pocket Small Business Owner’s Guide to Negotiating by Richard Weisgrau provides readers with a complete set of practices and strategies for successfully negotiating through numerous situations. Richard explores both the psychology and activities occurring before, during, and after a negotiation. Through his book, readers learn to:
Differentiate between principle and positional bargaining
Negotiate contracts, purchases, and service deals
Resolve conflicts
Barter
Assess risk
Take advantage of the psychological aspects of negotiating
Employ rhetorical tactics and body language successfully
Benefits of Using This Reference
StrategyDriven Contributors like The Pocket Small Business Owner’s Guide to Negotiating for its thoroughness in covering a multitude of negotiating situations. We found Richard’s book a good ready reference for small business owners and large company division and department managers.
The Pocket Small Business Owner’s Guide to Negotiating covers the psychological and behavioral aspects of negotiation, both being critically important to a successful outcome. Additionally, Richard provides an easy-to-follow method for negotiation preparation, execution, and follow-up. By using the prescribed methods, readers should find their negotiations more successfully resolved.
If we had one criticism of The Pocket Small Business Owner’s Guide to Negotiating it would be that the negotiating approach seeks an equitable outcome; precluding the opportunity for overwhelmingly positive terms.
The Pocket Small Business Owner’s Guide to Negotiating provides readers with actionable steps to negotiate the situations most commonly encountered by small business and business group leaders. While not intended to inform the actions of those negotiating ‘super-deals,’ the thoroughness of the methods and real world examples conveyed makes The Pocket Small Business Owner’s Guide to Negotiating a StrategyDriven recommended read.
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All choices require the decision-maker to deal with a degree of uncertainty and ambiguity. Many times the information needed to make the highest quality decision simply does not exist, is unavailable to the decision-maker, or cannot be identified within the decision’s needed timeframe. Consequently, these information gaps are filled with assumptions – the best educated guesses of the decision-maker and his or her team – in order to allow the decision-making process to move forward. These assumptions necessarily contribute to the uncertainty surrounding the decision and therefore must be treated carefully.
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Dear Jeffrey, I am a huge fan. I recently had a WOW experience that completely coincides with your philosophy on customer loyalty versus satisfaction. Today, I received the following email from Amazon:
Hello, We noticed that you experienced poor video playback while watching the following rental on Amazon Video On Demand: The Hunger Games. We’re sorry for the inconvenience and have issued you a refund for the following amount: $3.99. While Amazon Video On Demand transactions are typically not refundable, we are happy to make an exception in this case. This refund should be processed within the next 2 to 3 business days and will appear on your next billing statement for the same credit card used to purchase this item.
This is amazing to me for a few reasons. Yes, I did notice that my movie was buffering more than usual and, yes, it was annoying. However, it was nothing more than a minor frustration. I didn’t complain. I didn’t complete a survey or give any feedback about this experience. Truthfully, until I received this email, I hadn’t given it a second thought.
When I got this email, it stopped me in my tracks. THEY NOTICED. They noticed that this particular experience was below their normal standards. But what’s more important, THEY NOTICED WITHOUT ME TELLING THEM.
Good companies would refund my money if I complained. Of course they would, that is expected. I never have had a company refund my money without being prompted. Never. And this, this was a surprise.
Would I have used them again even if they did not refund my money? Yes, often. So what’s the difference? I wouldn’t have REFERRED them. I received this email today at 2:18pm. Since then, I have told all my coworkers I came in contact with, posted this on my Facebook wall, and now am writing you.
Amazon lost four dollars today, but they gained a customer for life! It was so impressive, I had to share. Make it a great day, Candace
Brilliant, eh? Proactive, memorable service.
Amazon is monitoring the quality of their streaming bandwidth and can identify quality issues. Then, they DO SOMETHING ABOUT IT. No waste of time and money “survey,” no phony empty apology, just a good, old fashioned admission of guilt, and a proactive refund for poor performance.
My bet is Amazon has given thousands of these, and the same customer response has happened with every one of them. What a strategy! Let’s make sure the customer experience was great, or let’s give them a refund.
Simple. Powerful. Profitable. Give up $4.00 to earn thousands. I wonder who thought that one up? Certainly not their advertising agency.
Look at the elements of business and sales as a result of Amazon’s action, and customer reaction: a huge wow, several social postings, more social proof, an amazing testimonial, customer loyalty, and pass along value that cannot be measured on any ROI scale. Amazon’s actions breed return on proactive, memorable service – the WOW factor, social response, and customer word of mouth. It’s WAY beyond ‘priceless’ – in the long term, it’s worth a fortune.
HERE’S YOUR LESSON: You can invest in some marketing program to reach new people – or you can invest in giving your existing customers the best service possible, and let THEM find new people for you.
PREDICTION: I’ll bet the investment in existing customer experience is one-tenth the cost of any marketing program. In fact, I doubt this type of outreach is even on a marketing team’s mindset. They’re still in the Stone Age measuring ‘ROI.’
Amazon has lead the Internet all the way with vision and tenacity. Quality and value. Ease of doing business, buy with one click. Suggestive buying and published reviews. Not just price, delivery.
And now add to that list: proactive WOW interaction. They dominate because they differentiate. They dominate because they innovate. They don’t study the market – they create it (like Apple). Most marketing studies are a CYA act of companies afraid to make mistakes, let alone be bold.
Take this lesson to heart – and take it to your customers. If you come up with something creatively compelling, you can also take it to the bank!
Reprinted with permission from Jeffrey H. Gitomer and Buy Gitomer.
About the Author
Jeffrey Gitomer is the author of The Sales Bible, Customer Satisfaction is Worthless Customer Loyalty is Priceless, The Little Red Book of Selling, The Little Red Book of Sales Answers, The Little Black Book of Connections, The Little Gold Book of YES! Attitude, The Little Green Book of Getting Your Way, The Little Platinum Book of Cha-Ching, The Little Teal Book of Trust, The Little Book of Leadership, and Social BOOM! His website, www.gitomer.com, will lead you to more information about training and seminars, or email him personally at [email protected].
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About the Author
Hank Moore has advised 5,000+ client organizations worldwide (including 100 of the Fortune 500, public sector agencies, small businesses and non-profit organizations). He has advised two U.S. Presidents and spoke at five Economic Summits. He guides companies through growth strategies, visioning, strategic planning, executive leadership development, Futurism and Big Picture issues which profoundly affect the business climate. He conducts company evaluations, creates the big ideas and anchors the enterprise to its next tier. The Business Tree™ is his trademarked approach to growing, strengthening and evolving business, while mastering change. To read Hank’s complete biography, click here.
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Business Programs
The Big Picture of Business: The Business Leader as Community Leader
/in Management & Leadership/by Hank MooreIn eras following downturns and scandals, it is incumbent upon good companies to go the extra distance to be ethical and set good examples. Demonstrating visible caring for communities by company executives is the ultimate form of potlache.
No matter the size of the organization, goodwill must be banked. Every company must make deposits for those inevitable times in which withdrawals will be made.
To say that business and its communities do not affect each other is short-sighted… and will make business the loser every time. Business marries the community that it settles with. The community has to be given a reason to care for the business. Business owes its well-being and livelihood to its communities.
Business leaders have an obligation to serve on community boards and be very visible in the communities in which they do business. If done right, community stewardship builds executives into better leaders, as well as receiving deserved credit for the company. Civic service is the ultimate way to steer heir apparents toward the leadership track.
Communities are clusters of individuals, each with its own agenda. In order to be minimally successful, each company must know the components of its home community intimately. Each company has a business stake for doing its part. Community relations in reality is a function of self-interest, rather than just being a good citizen.
Companies should support off-duty involvement of employees in pro bono capacities but not take unfair credit. Volunteers are essential to community relations. Companies must show tangible evidence of supporting the community by assigning key executives to high-profile community assignments. Create a formal volunteer guild, and allow employees the latitude and creativity to contribute to the common good. Celebrate and reward their efforts.
Publicity and promotions should support effective community relations and not be the substitute or smokescreen for the process. Recognition is as desirable for the community as for the business. Good news shows progress and encourages others to participate.
The well-rounded community relations program embodies all elements: accessibility of company officials to citizens, participation by the company in business and civic activities, public service promotions, special events, plant communications materials and open houses, grassroots constituency building and good citizenry.
No entity can operate without affecting or being affected by its communities. Business must behave like a guest in its communities, never failing to give potlache or return courtesies. Community acceptance for one project does not mean than the job of community relations has been completed. It is not ‘insurance’ that can be bought overnight. It is tied to the bottom line and must be treated accordingly, with the resources and expertise to do it effectively. It is a bond of trust that, if violated, will haunt the business. If steadily built, the trust can be exponentially parlayed into successful long-term business relationships.
Potlache
Potlache is the ultimate catalyst toward Customer Focused Management. It means extra gifts, beyond value-added, visionary mindset and the ultimate achievement of the organization.
The word ‘potlache’ is a native American expression, meaning ‘to give’. For American Indians, the potlache was an immensely important winter ceremony featuring dancing, food and gift giving. Potlache ceremonies were held to observe major life events. The native Americans would exchange gifts and properties to show wealth and status. Instead of the guests bringing gifts to the family, the family gave gifts to the guests.
Colonists settled and started doing things their own way, without first investigating local customs. They alienated many of the natives. Thus, the cultural differences widened. The more diverse we become, the more we really need to learn from and about others. The practice of doing so creates an understanding that spawns better loyalty.
When one gives ceremonial gifts, one gets extra value because of the spirit of the action. The more you give, the more you ultimately get back in return. Reciprocation becomes an esteemed social ceremony. It elevates the givers to higher levels of esteem in the eyes of the recipients.
Potlache is a higher level of understanding of the business that breeds loyalty and longer-term support. It leads to increased quality, better resource management, higher employee productivity, reduced operating costs, improved cash management, better management overall and enhanced customer loyalty and retention.
Community Relations
The well-rounded community relations program embodies all elements: accessibility of company officials to citizens, participation by the company in business and civic activities, public service promotions, special events, plant communications materials and open houses, grassroots constituency building and good citizenry.
Never stop evaluating. Facts, values, circumstances and community composition are forever changing. The same community relations posture will not last forever. Use research and follow-up techniques to reassess the position, assure continuity and move in a forward motion.
Companies need community relations at all times:
In today’s economy, no business can operate without affecting or being affected by its communities. Business must behave like a guest in its communities… never failing to show or return courtesies.
Community acceptance for one project does not mean than the job of community relations has completed. Programs always shift into other gears… breaking new ground.
Community relations are not ‘insurance’ that can be bought overnight. It is tied to the bottom line and must be treated accordingly… with resources and expertise to do it effectively. It is a bond of trust that, if violated, will haunt the business. If steadily built, the trust can be exponentially parlayed into successful long-term business relationships.
About the Author
Recommended Resource – The Pocket Small Business Owner’s Guide to Negotiating
/in Management & Leadership, Marketing & Sales, Practices for Professionals, Recommended Resources/by StrategyDrivenby Richard Weisgrau
About the Reference
The Pocket Small Business Owner’s Guide to Negotiating
by Richard Weisgrau provides readers with a complete set of practices and strategies for successfully negotiating through numerous situations. Richard explores both the psychology and activities occurring before, during, and after a negotiation. Through his book, readers learn to:
Benefits of Using This Reference
StrategyDriven Contributors like The Pocket Small Business Owner’s Guide to Negotiating for its thoroughness in covering a multitude of negotiating situations. We found Richard’s book a good ready reference for small business owners and large company division and department managers.
The Pocket Small Business Owner’s Guide to Negotiating covers the psychological and behavioral aspects of negotiation, both being critically important to a successful outcome. Additionally, Richard provides an easy-to-follow method for negotiation preparation, execution, and follow-up. By using the prescribed methods, readers should find their negotiations more successfully resolved.
If we had one criticism of The Pocket Small Business Owner’s Guide to Negotiating it would be that the negotiating approach seeks an equitable outcome; precluding the opportunity for overwhelmingly positive terms.
The Pocket Small Business Owner’s Guide to Negotiating provides readers with actionable steps to negotiate the situations most commonly encountered by small business and business group leaders. While not intended to inform the actions of those negotiating ‘super-deals,’ the thoroughness of the methods and real world examples conveyed makes The Pocket Small Business Owner’s Guide to Negotiating a StrategyDriven recommended read.
Decision-Making Best Practice 18 – Dealing with Assumptions
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Don’t need a subscription? Buy access to Decision-Making Best Practice 18 – Dealing with Assumptions for just $2!
What’s your proactive marketing approach to loyalty?
/in Marketing & Sales/by Jeffrey GitomerDear Jeffrey, I am a huge fan. I recently had a WOW experience that completely coincides with your philosophy on customer loyalty versus satisfaction. Today, I received the following email from Amazon:
This is amazing to me for a few reasons. Yes, I did notice that my movie was buffering more than usual and, yes, it was annoying. However, it was nothing more than a minor frustration. I didn’t complain. I didn’t complete a survey or give any feedback about this experience. Truthfully, until I received this email, I hadn’t given it a second thought.
When I got this email, it stopped me in my tracks. THEY NOTICED. They noticed that this particular experience was below their normal standards. But what’s more important, THEY NOTICED WITHOUT ME TELLING THEM.
Good companies would refund my money if I complained. Of course they would, that is expected. I never have had a company refund my money without being prompted. Never. And this, this was a surprise.
Would I have used them again even if they did not refund my money? Yes, often. So what’s the difference? I wouldn’t have REFERRED them. I received this email today at 2:18pm. Since then, I have told all my coworkers I came in contact with, posted this on my Facebook wall, and now am writing you.
Amazon lost four dollars today, but they gained a customer for life! It was so impressive, I had to share. Make it a great day, Candace
Brilliant, eh? Proactive, memorable service.
Amazon is monitoring the quality of their streaming bandwidth and can identify quality issues. Then, they DO SOMETHING ABOUT IT. No waste of time and money “survey,” no phony empty apology, just a good, old fashioned admission of guilt, and a proactive refund for poor performance.
My bet is Amazon has given thousands of these, and the same customer response has happened with every one of them. What a strategy! Let’s make sure the customer experience was great, or let’s give them a refund.
Simple. Powerful. Profitable. Give up $4.00 to earn thousands. I wonder who thought that one up? Certainly not their advertising agency.
Look at the elements of business and sales as a result of Amazon’s action, and customer reaction: a huge wow, several social postings, more social proof, an amazing testimonial, customer loyalty, and pass along value that cannot be measured on any ROI scale. Amazon’s actions breed return on proactive, memorable service – the WOW factor, social response, and customer word of mouth. It’s WAY beyond ‘priceless’ – in the long term, it’s worth a fortune.
HERE’S YOUR LESSON: You can invest in some marketing program to reach new people – or you can invest in giving your existing customers the best service possible, and let THEM find new people for you.
PREDICTION: I’ll bet the investment in existing customer experience is one-tenth the cost of any marketing program. In fact, I doubt this type of outreach is even on a marketing team’s mindset. They’re still in the Stone Age measuring ‘ROI.’
Amazon has lead the Internet all the way with vision and tenacity. Quality and value. Ease of doing business, buy with one click. Suggestive buying and published reviews. Not just price, delivery.
And now add to that list: proactive WOW interaction. They dominate because they differentiate. They dominate because they innovate. They don’t study the market – they create it (like Apple). Most marketing studies are a CYA act of companies afraid to make mistakes, let alone be bold.
Take this lesson to heart – and take it to your customers. If you come up with something creatively compelling, you can also take it to the bank!
Reprinted with permission from Jeffrey H. Gitomer and Buy Gitomer.
About the Author
StrategyDriven Podcast Episode 41 – The Big Picture of Business: When the Next Recession is Coming
/in Strategic Planning, StrategyDriven Podcast/by StrategyDrivenEpisode 41 – The Big Picture of Business: When the Next Recession is Coming explores the marketplace markers that signal a recession’s start and the timing of the next American recession. During our discussion, Hank Moore, Corporate Strategist and author of The Business Tree: Growth Strategies and Tactics for Surviving and Thriving
, shares with us his insights and illustrative examples regarding:
Additional Information
In addition to the outstanding insights Hank shares in The Business Tree
and this edition of the StrategyDriven Podcast are the resources accessible from his website, www.HankMoore.com. Hank’s book, The Business Tree
, can be purchased by clicking here
.
Final Request…
Thank you again for listening to the StrategyDriven Podcast!
About the Author
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