Are Your Customers Satisfied?

Too many businesses assume that their customers are satisfied with the service they are receiving. In some cases, making such an assumption is a recipe for failure. Many businesses simply do not understand how to deliver outstanding customer service. In fact, many don't understand how to achieve even mediocre levels of service. Knowing how your customers feel about your business, its products/services and the level of service being provided is critical to making necessary adjustments in processes, people and other facets of the organization. Surveying your customer base is one way of identifying customer perceptions of your business. We recommend that a customer satisfaction survey be conducted at least once per year. Surveying a few hundred customers (or fewer if your business has less than a few hundred customers) can yield important results that, when followed up on, can mean the difference between success and failure.

Identify Performance Measures

It is critical to measure the success of your business based on what are sometimes called "key indicators" or "performance measures". These are nothing more than the primary factors by which the success of the business and its various parts should be measured. They should be easy to measure and track and they must be the most critical and meaningful measures of success. Some examples include gross profit, sales, returned goods, customer complaints, amount billed to amount collected, and billable hours.

Employees Cannot Establish Accountability

In well managed businesses, employees are highly accountable for results and for their time. We find in too many businesses a lack of accountability for either. Employees must understand that they come to work to do just that. And they must also understand that, as long as they are reasonable, they are to strive to meet expectations. The problem that exists in many organizations is that employees are allowed to call too many shots. They establish the level of work being done and the level of accountability. There are too many managers in the business world who simply will not manage to the level they need to manage. Nowhere is this more apparent than in their inability to instill a high level of discipline and accountability. They allow their employees to do their own thing and "set the bar". In these organizations, results are usually unacceptable. Are your managers instilling high levels of accountability and productivity?

Avoid Emotional Roller Coasters

Good managers maintain a fairly even emotional state while at work. They don't allow things to bother them too much, yet they don't take things that are important too lightly either. Taking a "level" approach to going about day-to-day activities and management of people is critical to maintaining a smooth functioning organization. Businesses that are too "high strung" tend to "lock up" and not make the type of progress they need to. Also, managers who are too emotional or hot tempered send negative messages to those around him/her and let them know that they have difficulty handling tough situations. Keep in mind that nearly everything works out and staying as emotionally even as possible will help you and those who work for you get through difficult times.

Be Honest With Your Banker

Establishing a sound relationship with your bank is important. Too many businesses inflate projections, fail to provide important information when necessary and even lie to their bank. These actions do nothing more than erode the relationship between the business and a key partner. Keeping the bank apprised of important activities and information and being as honest as possible are critical to keeping the bank comfortable with your situation. When projections consistently miss their target by big amounts and the representatives of the business fail to be up-front and honest, the bank loses confidence in those who manage and/or own the business. This usually begins a process that could cost the business its ability to borrow sufficient funds.