The blog post highlights four CEOs and their approaches to customer satisfaction:
1. Kwinn listens to customers but doesn't always follow through on feedback. His approach may not truly prioritize customer needs.
2. Sun-tzu focuses on competitive bidding and delivering on time/budget at the expense of building relationships. This could undermine long-term customer loyalty.
3. Top Cat aims to offer full services but may lack the resources to truly compete with larger competitors in the long run.
4. Doe insists on single-source solutions which customers could perceive as inflexible or insensitive to their specific needs.
The post questions whether these CEOs are truly prioritizing and understanding
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The CEO and Customer Satisfaction
1. UPworld Blog 2011 – Blogger of the Quarter Wes Morgan!
The CEO and Customer Satisfaction – Posted December 27, 2011
We hear a lot about companies who strive to earn repeat business by exceeding customer expectations
and delivering tremendous value. Still I wonder. Here are four Chief Executives. Tell me if you think they
have happy and loyal customers.
1. Hard Goods Manufacturer Co. – The Mighty Kwinn CEO bends over backwards to listen to his
customers. He has a panel of representatives on whom he depends for feedback. The meetings
are routinely held in warm places with plenty of time for golf, deep sea fishing and/or tourism. The
chosen ombudsmen for the industry are delighted to participate even if, at times, they aren’t sure
action is really taken based on the intense discussions that cover price, product, service and
ways to improve everything from order processing to training support. ―Be a good listener,‖ thinks
Kwinn.
2. Four States and Texas GC - The Sun-tzu CEO believes winning is warfare. His family-owned
high-growth company is looking to earn ―clients for life‖ among the Fortune 500 elite. He believes
the way to win is to excel in the trenches with a tough-as-nails, hard-bid process. Furthermore,
the company has a ―can-do‖ culture of dedicated workers, who will do whatever it takes to deliver
on-time, under budget and work safely. Sadly, the margins are always pretty thin due to constant
competitive bidding and employee burn out is common. Customer surveys reveal that they are
pleased with the work, but he doesn’t want to invest in any more research. Sun-tzu says ―Kill the
competition on price. Knock yourself out to deliver.‖
3. Integrated A/E/C - The Top Kat CEO leads his company with flair. Customers like doing
business with Top Kat, because he has resources that allow him to offer full service from site
selection and development all the way to financing and marketing. Top Kat is big and wants to
work with others who think big. Top Kat wants to ―Run with the big dogs and be one.‖
4. Builder of Hospitals, Inc. – The John Doe CEO is an engineer who is convinced he can
bludgeon the average healthcare administrator with logic. His company offers a single source
design and construction method, and you assume no risk until you agree with the proposed
solution. An occasional hospital executive might be embarrassed at having mismanaged the
process of planning the design and construction of his/her facility, but the Doe team is ready to
come to the rescue. ―Build a better mousetrap, and the world will beat a path to your door,‖ he
thinks.
Could the following be true?
Kwinn is listening but doesn’t always following through. Is he really listening?
Sun-tzu is doing battle at the expense of building relationships. Is he driving for the right things?
2. Top Cat may not really be a Big Dog and thereby does he fall short in the long run? When the
chips are down, will this Kat hunt?
Doe is completely inflexible with regard to the solution he provides. Could this be perceived as
insensitivity?
What do you think?
Marketing Tactics 101 – Posted December 14, 2011
Check out this list of marketing tactics.
1. Print Advertising - It makes sense, within the context of an integrated marketing campaign, to
promote your company and successes. Start with an evaluation of local/regional publications
such as business journals, newspapers and select industry magazines. Understand that
circumstances may arise when you will want to place advertising in support of owners,
communities and sponsorships. Make sure you have a creative strategy that includes featuring
key projects and expertise. Your marketing department should be involved in all advertising
placements, so the rationale for advertising is understood and can be reviewed periodically.
Employees approached by media sales representatives should advise that all advertising is
purchased through the corporate office marketing department. Develop/budget for a media
schedule (timing, reach and frequency). Selectively budget for advertising. Develop creative ads
for planned placements, but remain flexible for unique opportunities.
2. Public Relations - As part of a total marketing communications campaign, pursue positive
relationships with the media, and seek opportunities for favorable editorial coverage. Editors and
publishers are always careful to keep the editorial decisions and the advertising sales process
separate. But it takes advertisers to keep publications viable just as it takes quality editorial to
assure ongoing readership. Keep the heat up on media coverage of the company, people,
expertise, projects, etc. Let the marketing department know when opportunities come up.
Cultivate positive stories about your company. Review editorial calendars and build a media list of
publications and media contacts. Match stories with planned editorial coverage whenever
possible. Package the information, photography, elements and/or graphics to meet and exceed
editorial requirements. Develop a media list of core publications and contacts. Send out routine
releases. Pitch stories.
3. Direct Response - As with any database of names and addresses, moves, personnel, titles,
addresses and contact information changes. Your mailing list and database needs regular and
ongoing attention. The database should be managed by the marketing department. Everyone
should be encouraged to advise the marketing department of changes as they happen.
4. Networking - You can still set yourself apart with basic, marketing, communications tactics. In
developing these channels, you will also be developing content for social media and the overall
strategic vision for your business. Don’t underestimate the power of personal contacts. Participate
in industry and community networking events. Use your network to keep the information about
your company top-of-mind.
Happy Hunting.
3. Go Team! – Posted December 2, 2011
The decisions you make at the earliest stages of your project are the most critical. It is your building
project, and you don’t want to leave your schedule, cost or quality to chance. Setting priorities early on
will be the best way to get a finished project you deserve.
Your project may require unique expertise. For example, a hospital may require phasing that allows
patients, doctors and staff to continue working 24/7. If you are building a High School, the team must
understand that the school needs to be open in time for the academic year. If you are building a retail
store, the objective may well be to optimize sales in the fourth quarter. If you are building a commercial
office project, you’d want to be ready for business to hit the ground running without losing revenue.
The team needs to be proactive in finding solutions that best achieve your goals. A big part of that is
putting together the team you know, like and trust to get it done. Here are some things to keep in mind.
1. Build Green. Green buildings are not only good for the environment, but they also provide
immediate and long-term economic benefits for developers, building owners and occupants.
Sustainable construction practices need to be a part of your planning up front too. The LEED
rating system from the United States Green Building Council provides an orderly set of priorities
to consider and is a good place to start.
2. Build Safely. Another aspect of planning up-front is building a culture within your team that
promotes a safe and injury-free environment. It starts with planning for the safest possible
workplace for employees, subcontractors, clients and others. It requires elevating safety
standards through a wide variety of methods—from zero-tolerance drug testing, aggressive fall-
protection, innovative training/education, providing appropriate resources, reducing risk and
improving loss control on every project. It is the right thing to do and the smart thing to do for all
involved.
3. Plan, design and build as a Team. Leading a design and construction team should provide
value-added services and offer solutions especially in the early stages and through the
completion of your facility. As a construction project progresses, the cost associated with changes
increases. Plan thoroughly for all of your construction needs. It is easier said than done. Working
closely as a team of design and construction professionals to maintain clear focus and control
during all phases of the project is key. Having faith in experts in the field during construction is
critical, and it starts with a clear understanding of the mission. Every detail including mechanical,
electrical, architectural, equipment and interior finishes offers the opportunity to deliver true value
– as a team.
Bunker Mentality – Posted November 18, 2011
It takes money to make money. All kinds of people make the world go around. No man is an island. Okay,
but when the global economy is in such turmoil, it’s hard for companies and people who run them to
recognize that the way out is to reach out. FDR said the only fear is fear itself. That may very well be true
today.
I live in a town where a great many talented and creative people have been displaced. Many struggle with
the challenge of reinventing themselves. At the core of their being is the basic belief people have in the
ability for these people to think outside the box and be creative, to look at opportunities and to see things
in a way that shows the glass is half full. The world needs leaders who are optimistic. There needs to be
faith shown in individuals, in mission, in achievable goals again. When it’s every man for himself, the
problems of the world are simply too large to be conquered. Organize the troops, and take charge. Go.
Fight. Win.
4. If you are a leader of a business, small or large, you have a greater responsibility than protecting yourself.
You became a leader, and you’ve seen success because people believed in you. Are you squandering
that trust? Was it deserved? Luck is usually not just serendipity. You made your breaks, and now you are
on top. Don’t hide. Your business, your community, your family, your friends and the world at large needs
your vision now more than ever.
Take a calculated risk. Start an initiative. Generate some energy. Be enthusiastic. Be smart, but take
action. This is a great time to make a difference.
Winning Proposals – Posted November 8, 2011
Proposals are more likely to result in elimination that winning. Sorry to say, but owners are going to be
looking for losers first in this process. Let’s face it, it is a challenging economic environment, and the
buyers have an advantage now. Think about winning strategies for putting your best foot forward. They
are looking for losers more than the winner in the opening round of reviewing your proposals.
Just because you can doesn’t mean you should respond to a request for proposal. You need to have a
GO/NO GO decision criteria. Sometimes an off-the-shelf response is okay, but most of the time, it makes
sense to ask, ―What is specific to this project that we should include in our proposal?‖
Consider an executive summary. Take the time up-front to plan your strategy. Be concise. It takes more
time to write a shorter and more efficient proposal. Mark Twain said, ―I didn’t have time to write a short
letter, so I wrote a long one instead.‖
The number one reason for not winning is inadequate knowledge of the customer. 80% of wins are, at
least in part, a result of a previous relationship, so don’t wait to learn about the customer and the specifics
of their needs. It could be too late. Studies have shown that odds of winning increase with the number of
people involved, so get people in your company involved in responding to proposals.
The average cost of preparing a proposal is around $2,000-$4,000 per million bid. You need to quantify
the costs. Your response to an RFP is for a client to BUY THEIR PROJECT not your capabilities. This is
important to remember. A lot of contractors want to say how great they are. They say things like, ―We can
deliver safely, on time and within budget.‖ These are the things your competition will be saying too. How
will you differentiate yourself?
Happy Hunting.
The tailored idea – Posted October 21, 2011
Build-to-suit or Settling for Low Cost Alternatives
Real estate professionals, architects, engineers, builders and owners can find themselves faced with a
dilemma in an environment of economic uncertainly. It has always been true that buying exclusively
based on lowest price is a dangerous way to do business. Catering to such clients can be hazardous as
well. Consider the guy looking to buy a new suit. He enters a clothing store but he doesn’t want to spend
too much money. The tailor shows him a designer brand nice suit for $400. ―It is too much,‖ he says.
Shown another suit for $200, he says, ―It’s still too much money.‖ After several others, finally he is shown
one that only costs $10. ―That’s more like it!‖ the guy says, and tries it on. He looks in the mirror and one
sleeve is about two inches shorter than the other.
―No problem,‖ says the tailor, ―Just hunch up your right shoulder.‖
So the guy hunches his right shoulder way up, and the sleeves look OK, but the lapels are crooked.
5. ―No problem,‖ says the tailor, ―Just stick out your left arm and cock it like a bird’s wing.‖
So the guy sticks out his left arm and the lapels look OK. But then he notices that one pant leg is shorter
than the other.
―Well, just keep that leg stiff,‖ says the tailor, ―and no one will notice.‖
―I’ll take it!‖ the guy says.
The guy leaves the tailor shop wearing the suit. Walking with his left leg stiff, one arm stuck out like a
bird’s wing, and one shoulder hunched way up. Walking down the street he passes two orthopedic
surgeons.‖I have never seen anyone in such bad shape in my twenty-five years of practice!‖ says one of
the doctors. ―Me neither,‖ the other doctor says. ―Nice suit, though.‖
Maybe we all need to remember, even in the face of increased pressure to deliver low-cost solutions, the
integrity of our collective professional lives depends on value without compromise, appropriate quality,
and sustainable building that will serve well into the future. Ultimately, when someone says ―Nice
building!‖ let’s hope it is true for the intended life-cycle of the project.
Design Build coming of age – Posted October 13, 2011
The Design-Build project delivery method is gaining popularity, and it looks as though continued growth
can be expected. The process, by definition, is so collaborative it is likely that more segments of the
A/E/C marketplace will embrace it. This method provides the following:
1. Mission Control - Design Build will grow in popularity as will trends toward improving the method
itself. Design-Build is at its very best when all the parties associated with a structure
communicate accurately and in a timely manner. One top Design Builder in the Midwest, for
example, maintains what they call Mission Control where project management software and
documents are managed by a support team, so project managers can focus on the project
details. Plans, e-mails, meeting minutes, change orders and project web cams are a mouse click
away. It isn’t just the technology; it’s the culture of teamwork. Each project is a fully integrated
group working toward the successful completion of the job. Project management software and
tools support the process, not hinder it, always with the idea of making sure everyone on a job
understands the scope as well as the details. Value engineering happens more often and faster in
a process that replaces finger pointing with a shared vision.
2. Design and Construction of Green Buildings - The emergence of the United States Green
Building Council and their Leadership in Energy & Environmental Design (LEED) helps to define
what it means to be Green. Design-Build may be the very best way to deliver it. Design-Build
enhances LEED projects and, done well, addresses the critical components of Sustainable Sites,
Water Efficiency, Energy & Atmosphere, Materials & Resources, Indoor Environmental Quality as
well as Innovation & Design Process. Design-Build is all about understanding the very specific
goals of a project up-front and maintaining the commitment to those goals through completion.
3. Seamless and Single-Source Design-Build from Site Selection through Punch List - It could
be a sign of things to come. A totally integrated concept for design and construction may be
expanding to include real estate service from site selection and due diligence all the way through
leasing and longer term facility planning.
4. Strong finish - Smart design-build firms know that the next job could very well hinge on the
proper closeout of the job finishing up today. The importance of quality control and best practices
cannot be underestimated. Satisfactory job completion through the very last punch list item is the
best marketing any builder can do.
6. Why is writing so important in construction? – Posted September 30, 20011
Writing plays a crucial role in so much of what goes on in the multi-billion dollar global construction
business. The Architecture/Engineering/Construction (A/E/C) world includes many highly technical
people, but the left-brain bias can sometimes lead to a shortage of right brain articulation.
Consider the following illustrations. In each case writing can be a difference maker.
Grant Writing – It’s imperative to articulate well a company’s commitment to training and education. The
ability to clearly describe a training program, for example, can result in thousands of dollars in funding for
trade skills training. It is a win-win that benefits the company and the economy as a whole.
Requests for Proposals – RFPs and Requests for Qualifications (RFQs) are often where the business
development process begins. The response will, of course, include all of the technical specifications,
schedule, flow charts and cost data, but a critical component of such a response is the verbal glue that
holds the information together. It is the words that put all the technical information into plain language in
such a document.
History and Record Keeping - Writing a description of a construction project, and the articulation of the
obstacles that were overcome in completing a project are an important way to set your construction firm
apart from your competition. Owners frequently look for experience that justifies the selection of one
contractor over another.
Marketing – Marketing communications is all about meaningful content. Marketing construction, in many
ways, is no different than marketing other products and services. You need to differentiate your brand
from other alternatives available to the buyer. We know that parity products (and choices perceived as
such) have a greater difficulty in attracting profitable businss. If all the choices are perceived as being
equal, the decision will more likely be made on the limited variable of price. The low guy wins. Effective
marketing in construction leverages experience and expertise to increase the likelihood of being
perceived as better than the alternatives.
Internal Communication – The bigger a construction company gets, the greater the need for well written
communication. The management wants the brand to be strong, and they want the employees to
embrace the same values that made the company successful. As companies grow, they can sometimes
lose touch. Larger organizations need to find ways to formalize best practices, training, cultural values
and communication. Write it down.
Getting the job done – Finally, it may seem obvious, but the communication that happens on a job site
through completion of the final punch list requires crisp and clear direction. This direction may be spelled
out in a lot of technical plans, but it needs to be understood by the guys that make it happen. Safety,
procedure and appropriate training all involve well written steps to success.