Monday, June 16, 2008

Chapter 5: Financially Successful Companies

Thomas Peters and Robert Waterman Jr. examined financially successful companies and discovered that these companies have eight common characteristics: (1) active decision making, take actions, (2) never forget who makes them successful - customers, (3) empower employees to take risk, innovate, and take responsibility,
(4) quality products depends on quality workers, (5) strong core values are widely shared among employees, (6) company tend not to diversify, stick to what they do best, (7) simple hierarchies and division of labor, and (8) neither decentralized nor centralized management. This information is meaningful because it is a good reference for success and for setting organizational cultures. There are large companies and small businesses that become successful and forget that the customers contributed to their profit (i.e. not all coffee shops franchise are friendly or have the same quality customer service), abuse and degrade employees instead of empowering and recognizing them (i.e. no recognition for 10 year service). I am a strong advocate for customer service and for the continual success of a good company, and so I take the time to let a successful community college or wholesaler know that they need to remember the customers and to fix certain acute problems that would otherwise be a detriment to their sustainability.

5 comments:

Roy Hobbs said...

Hi Rabbit Tale - The practical view offered by Peters and Waterman, Jr. is one I believe that not only corporations can apply, but one that government organizations could do a better job instilling in their culture. Given my work in a public agency, I view customer service from a different, but just as important, perspective. I agree with you that customers (or in my case, citizens) need to be heard and understood. I have also found that organizations that lack the bias for action or active decision-making have struggled mightily. This has a trickle-down effect on the third characteristic of promoting autonomy and entrepreneurship. If management is not interested in making key decisions, it is likely that they are lukewarm about empowering staff. Communication in this environment is not effective and can spell trouble for an organization.

Kim Mai said...

When I read your blog, I also thought of the public sector like Roy Hobbs did. Although, non profit organizations or governmental agencies do not operate in the way that private businesses do which is often times for profit, they are nonetheless delivering goods and services to the public/clients. Non profits organizations often time forget that customers and clients are crucial to the longevity of their organizations because without people to serve, the organizations lose its purpose of being in existence. However, I think the American Red Cross of empowering its employee of the core values of humanity, compassion, neutrality and etc, and those values reflect their programs, activities, and trainings.

Vos Yeux said...

I agree with both Roy and Kim. All too often I have seen successful companies and corporations forget about their customers. I have also seen so many times where employees have been degraded and not recognized for their achievements. Nummi is Gm's painting facilities. They are very successful because of how long GM has been around. But they do not treat theri employees fairly, an employee their has moved up very quickly in the last two years because of his hard work. Yet, there are people under him that still make more money than him because they have worked there longer. Because of this he and his family will have to move because he can not afford to live in the bay area. Because of bad communication and the fact that they do not recognize a qualified employee, they will not only lose a good employee but possibly will lose more if they continue to operate in this way.

JMcAvoy said...

Rabbit Tale - I want to touch on what you said about customer service and how important it is. I have to agree with you whole heartedly about how important customer service is to any company or organization. I recently took out a private loan through Wells Fargo to pay for my summer classes. I need something from them to take to the bursar’s office as proof so I called to ask it of them. The first person I spoke with was extremely helpful, accommodating, and got everything I needed. Unfortunately, the fax machine they faxed my stuff to, I later learned, was broken. She mentioned that I could call back and have them re-fax it. The next person I spoke with was rude, sounded like he hated his job and didn't listen to a word I said. Furthermore, he said he sent the fax (to a working machine this time) and it never came. Needless to say, the next time I called I was absolutely furious. Luckily, I didn't have to deal with the likes of him again. So, yes, customer service, I believe, can make or break a company. If I hadn't dealt with such nice people every other time I called Wells Fargo, I would have never given them my business again.

sp1028 said...

I definitely agree with what the three others have mentioned. This does happen, often corporations forget about their customers, but they really need to understand that without their customers, corporations would not survive. I agree with you completely when you say companies and small businesses "abuse and degrade employees instead of empowering and recognizing them. I worked at a pre-school for five years, I just stopped working there in Oct. of 07. My former employer had to let a co-worker and I go, do to the fact that she got in trouble by the county because she was over her limit on the children she was allowed to have. She never even said thank you to me for all the years that I helped her. She was not very good at communicating with her employees.