Leadership is the solution: especially today.

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Leadership is the solution: especially today.

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1. Leadership is the solution: especially today. Lane Sloan Bruce Anderson Bill Spitz Carl Wilson

6. Leadership Development A Function of Adult Development

7. Adult Development We continue to develop after childhood. These adult stages of development involve an increasing awareness and consciousness and at some level it is hidden from us. It just evolves. At a particular stage of development, we don’t see the next stage. We are stuck in our world view and the way things should be done. We only get to “see” the previous stage until we have gone to a “higher” stage. This a huge factor in understanding the development of leaders

9. Leadership Strategies For A Growing Business In Tough Times Presented By William J. (BILL) Spitz

10. Satisfaction Alone Is No Longer A Guarantee That Customers Will Come Back. We Must Develop Customer Loyalty!

11. Have You Ever Calculated What It Costs To Get A New Customer? All Marketing Costs? All Sales Commissions And Salaries? All Sales Development Costs? All Start Up Costs?

12. Have You Ever Calculated What Customer Turnover Costs You?

13. Have You Ever Figured Out How Little You Make On A One Time Sale? Compared To The Increased Profit You Make On A Repeat Customer?

14. One Time Customer Is Satisfied Not Angry Bought And Paid For Products/ Services Don’t Come Back!

15. Lured Away By Competitor Because That Customer Never Became A Loyal Customer Of Yours! They Defected! They Simply Went Elsewhere!

16. Measurement Is The Key To Understanding The Impact Of The “ Loss Of No Return”

17. Compilation Case Histories Of My Business Case Histories Of Others Harvard Business Review Article Entitled “Zero Defections: Quality Comes To Services” By Frederick E.Reicheld & W. Earl Sasser Jr. Work Done By Prestigious Research Organizations.

18. The Same Basic Concepts, Methods, Techniques Can Be Used By You!

19. Let’s Go Back To The 80’s Manufacturing Executives Looked At Their Scrap Heaps And Realized -- Poor Quality Was Expensive!

20. Harvard Article “Quality Is Not Just An Integrating Slogan, But The Most Profitable Way To Run A Business”

21. “Continuous Improvement In Service/Quality Is Not A Cost But An Investment In A Customer Who Generates More Profit Than The Margin Of A One Time Sale

22. Executives Can Therefore Justify Giving Priority To Investments In The Service/ Quality Vs. Things Like Cost Reduction”

23. “ Zero Defects Was The Guiding Light And The Quality Movement Took Off ”

24. Service Companies Have Their Own Scrap Heaps. Customers Who Will Not Come Back

25. Service Company Executives Began To Strive For: Zero Defections Keeping Every Customer That Could Be Served Profitably

26. Resulting In A Surprisingly Powerful Impact On The Bottom Line

27. Harvard Research Found" Companies Can Boost Profits By Almost 100% By Retaining Just 5 % More Of Their Customers. The Longer A Customer Stays With You The Higher The Level Of Profit They Bring.”

28. Can We Count On Continued High Growth? Sooner Or Later Cycle Will Change Will You Be Prepared?

29. Harvard, “It Is Common For Business To Lose 15% - 20% Of Its Customers In A Year.

30. Simply Cutting Defections In Half Will More Than Double The Average Company’s Growth Rate.”

31. I Was Very Lucky I Had A Mentor For Over 16 Years

32. His Impact!

33. The Caveat He Gave Me In The Early 80’s Before The Houston Depression Before The Oil Bust Before “Zero Defections --” When Houston Was Riding High Other Parts Of Country Suffering

34. “Times May Not Be Bad In Houston Yet” I Can See From Reports You’re Too Satisfied! You Are Losing Your Edge!

35. Can Your Customers Be Lured Away By Hungry Competitor? Now While Things Are Good You Need To Build A Loyal Customer Base Basics, Blocking And Tackling

36. Hank Moore Service is Presently At An All Time Low And Getting Worse

37. Be The Best At What You Do!! Make Sure Your Customer Is Aware Of That Fact

38. That Advice Was Pure Gold! Carried Us Through Toughest Time Houstonians Had Ever Experienced

39. Leadership Team Meeting - Reduce Losses To 5% Per Year. Resulting Enormous Impact On Our Profits

40. Develop An Action Plan To Be The Best At What We Do Make Your Service Memorable Ask Client What Can We Do To Serve You Better? “Help Me With Market Research.” Very Important It Worked Like A Charm

41. “ Retain The Gain” King On Throne Message: Customer Is King 8 1/2 x 11 Posters 2” x 2” Stickers Everywhere

42. Story That Had Huge Impact On Me And On My Business Career. How’s Your Business?

43. I Redoubled My Commitment To Be The Best At What We Did And To Build A Loyal Customer Base

44. It Was Time To Have A Meeting With All Of Our Employees To Discuss The Future Of Our Company

45. Raise The Bar Take Additional Steps To Improve Level Of Service Measure Actual Number Of Complaint Calls Count Each And Every One Rechecks

46. You Are All Volunteers

47. You Are Bill Spitz Live Up To All Commitments No Matter What It Takes

48. How This Program Helped Us To Retain A Major Customer

49. We Were About To Embark On A New Marketing Program

50. Skilled Market Research CO. Phone Contacts - Focus Groups Final Report - Huge Book Bottom Line “ Your Customers Are Fiercely Loyal”

51. Reflected On Our Customer Retention Program Significant Increase In Profit Over What We Used To Consider OK We Grew During Depression Many Benefits Having Zero Defections And Building Customer Loyalty

52. What Does It Take To Achieve Customer Loyalty? Pay Attention To What Is Important To Your Customer! What You Think & What I Think May Be Terribly Unimportant Find Ways To Listen To Customer

53. Challenge Your Assumptions Probe Deeply - Customer Concerns How To Get Beyond Satisfaction? What Do Customers Value Most?

54. Message Factors, Inc. Research Company “If You Are Not Hearing Voices You Are Crazy!

55. If You Are Not Listening To Customers, You Can’t Know What They Expect- What They Value, What They Could Live Without

56. Your Customers Will Tell You How To Keep Them Loyal And How To Persuade Your Competitors Customers To Become Your Loyal Customers As Well

57. This Information Allows You To Allocate Your Resources Accordingly”

58. Focus! Focus On What Part Of What You Do Is Most Important To Your Customer Example: Clean Truck - Uniform Most Important - Be On Time Get Back To Work, Or Car Pool, Or Whatever

59. Deliver What Customer Wants You May Not Be Providing What Is Most Important To Customer Of All Things You Do, Find Out Which Is Most Important To Client

60. Start To Measure Defection Rate Different For Every Business Information - Trade Association As CEO What Is Acceptable ? Compare Yourself To Best

61. Your Defection Rate Will Not Get Any Better If You Don’t Measure

62. Develop Relationships Loyalty And Retention Technician Jimmy

63. Understand The Difference Between Customer Loyalty & Customer Satisfaction

64. Customer Satisfaction: Everything Was OK Nothing Special Not Unhappy May Return If Convenient

65. Loyalty Is: I Love The Service You Have Added Value To ……. Everything Was Better Than Expected I Will Come Back I Will Tell My Friends Described “The Pursuit of Wow!”

66. Market Research Not Identified On A Scale Of 1 to 5 At What Point Will A Customer Become Loyal?

67. Result: Only At 5!

68. Capitalize On Your Strengths! Can You Compete With The Big Guys? Advantages: Closer To Customer Communicate Directly Ability To Respond In Way To Promote Loyalty

69. If And When There Is A Problem You Have A Special Opportunity To Create Loyalty. When Something Needs To Be Fixed, Replaced Or Repaired Do It With A Smile!

70. Do It Quickly Give Reward For Inconvenience

71. Small Companies Can Run Circles Around Big Organizations - Bureaucracies Bureaucracies Lose Creativity Not Nimble Slow To Respond Do Not Engender Loyalty Example: Photos

72. Guarantee Your Work Our Guarantee Was Unconditional, Money Back Customer Was The Sole Judge Complaints Resolved Immediately

73. “Thank You For Bringing This…” “You Have Done Us Great Favor.. Then Do It! Real Differentiation!

74. Have You Ever? “It Is Not My Job” “ I’m Doing The Best I Can” “You Will Have To Talk To Another Department……”

75. What Does It Take? What Must We Do? Begins With Clear Vision Of What You Want Your Organization To Be You Must Articulate To Your Entire Organization

76. Statement Of Purpose - Tell Your Team Why You Exist

77. We Were In The Business Of Protecting The Health & Property Of Our Customers Without Endangering Our Environment

78. Core Values That Are Changeless And Inviolate Of What You Stand For Integrity, Ethics, Commitment To Achieve Customer Loyalty

79. Example: Mastercare In Part “To Provide The Service Buying Public With A Superior Buying Experience That Will Encourage Them To Return Willingly And To Share Their Experiences With Others”

80. Example Don Grogg Core Value: Deliver On Time No Matter What It Takes

81. There Are Essential Basics That The Team Must Understand In Order To Reach The Pinnacle Of Customer Service Resulting In Customer Loyalty

82. Clearly Enunciated So That They Become An Integral Part Of The Company Culture In Order To Achieve Desired Results

83. Must Select Quality People Who Can Carry Out Your Vision Attitude Brain Power Commitment

84. Training Absolutely Essential Some Say It Costs Too Much Pay Me Now, Or Pay Me Later Prevents Loss Of Customers Motorola

85. Customer Selection Target Customers Willing To Pay For Your Superior Services, Profitably!

86. Watch The Door Telephone Your Call Is Important To Us Create An Alert System

87. Example: Railroad Loss Part Of Business

88. If Customers Defect ‘Bring ‘Em Back Alive’ Swat Team - Convince Them To Stay Example: Food Plant

89. If Unable To Retain Benefits Are Still Available Gather Information And Insight As To Why Customer Is Leaving Get A View Of Your Business Not Available From Those On The Inside Early Warning System-Prevent Others From Defecting- Improve Your Score

90. Feedback - Concrete, Specific, Relevant, Not Hypothetical Understanding Why Is Important Need Someone Skillful At Probing

91. Defections Can Help Companies Decide Which Service/ Quality Investments Will Be Most Profitable Should You Invest In Computerized Cash Register Or A New Phone System?

92. Which Of These Two Will Address Most Frequent Causes Of Irritation And Possibly Defection?

93. Questions? Or Your Case Histories Showing Value Of Loyal Customers

94. Leadership in Action Carl Wilson [email protected] In 1942 Admiral William F. Halsey was aboard the US Aircraft Carrier Enterprise. As Commander of the Pacific Fleet he was engaged in a fierce struggle with the Japanese for control of the South Pacific. The outcome was uncertain. Many lives had been lost and the Japanese were relentless and better equipped. My own father was severely wounded in the battle for Guadalcanal. During this period a young squadron leader had sought to step dawn from leadership following the loss of several of his squadron members. The loss had made him feel that he was inadequate and unfit for command. Admiral Halsey had this to say: Next Slide In 1942 Admiral William F. Halsey was aboard the US Aircraft Carrier Enterprise. As Commander of the Pacific Fleet he was engaged in a fierce struggle with the Japanese for control of the South Pacific. The outcome was uncertain. Many lives had been lost and the Japanese were relentless and better equipped. My own father was severely wounded in the battle for Guadalcanal. During this period a young squadron leader had sought to step dawn from leadership following the loss of several of his squadron members. The loss had made him feel that he was inadequate and unfit for command. Admiral Halsey had this to say: Next Slide

95. All would agree that these are extraordinary times. Certainly they are not life threatening as in Halsey’s time, but they are potentially life changing and have caused many to be looking for leadership. As usual in all such times, whether we are prepared or not, the leadership required to deal with our extraordinary circumstances will again be provided by ordinary men and women just like you and me. What I hope to accomplish today is: To provide you with some of my 50 years experience as an owner, manager and occasional leader, an outline for building your own special brand of leadership and to encourage you to look ahead, enthusiastically, to what, I believe, will be one of the most exciting times in our history. All would agree that these are extraordinary times. Certainly they are not life threatening as in Halsey’s time, but they are potentially life changing and have caused many to be looking for leadership. As usual in all such times, whether we are prepared or not, the leadership required to deal with our extraordinary circumstances will again be provided by ordinary men and women just like you and me. What I hope to accomplish today is: To provide you with some of my 50 years experience as an owner, manager and occasional leader, an outline for building your own special brand of leadership and to encourage you to look ahead, enthusiastically, to what, I believe, will be one of the most exciting times in our history.

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