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Doesn’t
it warm you all over to know both Ford and Firestone consider us their
Number One priority?
About
every 30 minutes, one of their CEO’s is assuring us of that fact while
they try to find out why Firestone tires and Ford Explorers seem to mix
like oil and water.
Sorry, but
I’m not buying their line. What is left out of their message is if we
had been their Number One priority all along, the crisis might never have
happened in the first place. Evidence will show, I predict, that
someone made a decision somewhere along the way more focused on the bottom
line than on the customer.
Now the
debate centers on which tires in which plants were defective and was there
enough psi in the tires and who is to blame. That’s not customer
focus. That is the bottom line talking again. If I owned a Ford
Explorer or Firestone tires (I own neither), I would demand new tires
regardless. My family deserves no less.
Unlike
Ford/Firestone, I remember three crises where the customer’s concerns really
were put first. The most famous is the Tylenol case. Having found a bottle
that had been tampered with, Johnson & Johnson pulled all the bottles off
the shelf. Not just the ones made in certain plants or distributed to a
certain area. They pulled all the bottles. Their quick action averted a
disaster and a lot of lawsuits.
Then
there was Chrysler. A number of years ago, it was reported that Chrysler
executives were driving new cars a few hundred miles, turning back the
odometers and selling the vehicles as new. Against legal advice, Chrysler
chairman Lee Iacocca ran full-page ads with the headline, “We Goofed,” and
promising never to do that again. End of crisis.
Finally,
there was the day that Coca-Cola executives Roberto Goizueta and Don Keough
discovered we didn’t want New Coke. We liked Old Coke. Much as Iacocca had
done, Goizueta and Keough did a mea culpa and -- marketing studies to the
contrary -- declared, “The customer is right. Give them back their Old
Coke.”
Despite
these examples, companies don’t seem to learn. They think words speak
louder than actions and that we don’t know the difference. We get
these patronizing messages from corporations that seem to feel telling the
whole truth is a crime against humanity. Call your typical company
–any company – and get the maddening routine about punching touchtone
buttons. How impersonal can you get? Then go read that company’s
annual report and particularly the CEO’s message (he’s the one with the halo
over his head) about their all-day, everyday commitment to you, the
customer. Bull feathers! The commitment is to the bottom line.
Touchtone buttons cost less than people. You don’t have to pay them
benefits, buy them a desk, supervise them or hire and fire them.
Companies
in all sectors are merging at alarming rates today. Yet, the
mega-conglomerates assure us that there will be “more customer choice.”
Yeah right. In truth, customer choice is way down the list of reasons that
companies merge. The bottom line is the first priority. CEO’s get fired
for poor financial performance, not poor customer service – unless poor
customer service leads to poor financial performance.
Take
airlines, for example. They cram us in like sardines – more fannies in
seats mean more dollars to the bottom line – and then talk about their
commitment to customer service. They know and we know there isn’t a lot of
choice as to which airline we can fly so let’s drop the bromides, please.
I am all for
profit. I own stock in several companies and I cheer their financial
progress on those rare days when they show any. But with 40 years of
corporate hindsight, I suggest a company can be profitable and still not
treat their customers as having no more sense than a hockey puck.
Early in
my career I learned a rule about the external environment that is as
inviolate as a law of physics. It should be the first thing taught in our
business schools. Arthur Page, the first public relations vice president of
AT&T, said more than 50 years ago, “All business in a democratic country
begins with public permission and exists by public approval.” That rule is
as true today as when he said it.
Loosely
translated, it means you and I still call the shots. Companies that ignore
Page’s rule, do so at their peril. Ask Ford and Firestone. |