Wickenburg Business

Reputation is everything

The other day I talked with a friend who had a bad experience with a local business.  To hear his side of the story, the business was all wrong.  I’m sure there is another side of the story and that’s why I will not go further here.  The important thing to remember is not the merits of this situation, but how much damage it can do to the business regardless of who is right.  Today consumers have many outlets to express their side of a problem and they can do huge damage.  It isn’t fair to the business that has relatively little chance to defend such an attack.  But regardless of fairness, this example proves the importance of not getting “crosswise” with a customer.

Productivity

One of the most important aspects of any organization is its productivity.  That can be defined by the relationship between its inputs and its outputs.  If a company is able to produce more widgets with less inputs (raw materials, labor, capital) than it would be considered more productive.  Generally competition forces the organization to be more productive with the reward being more profit.  Unfortunately the lack of competition does not force productivity which is why productivity is generally poor in government, health care, and public education.

The best way to improve productivity is to measure it and then track it.  In a retail store an owner might track salaries verses sales by striking a ratio of salaries divided by sales to get a percentage. Then follow that percentage over a few quarters or years and the owner will know if productivity is increasing or decreasing.  Each and every organization needs to watch productivity or it will decrease costing the firm profits or increasing costs. Business owners understand this, but government, health care, and education haven’t figured it out yet which is why the costs of those sectors of our economy are increasing several times the rate of inflation.  

Music

Recently I was in a business that was being managed by a teenager.  He was playing what I think would be called hip-hop or rap.  The business catered to all ages.  Clearly the music was for the benefit of the employee rather than the customer.  Obviously, this is a clear mistake in customer service.

5 star service

While away I managed to break two new fishing rods, (due to stupidity not big fish).  After calling the shop I discovered that they would be covered by warranty and all I had to do was bring them to the shop and he would send them back for replacement.  I would be charged for shipping both ways.  I was certainly pleased with that outcome, but when I got the shop I was wowed by truly great service.  The shop owner took the broken rods, immediately replaced them with new ones off the rack, and didn't even ask for the shipping charges.  I insisted in paying for the shipping, and was greatly pleased that I wouldn't have to wait a couple of weeks to get my new rods.  Needless to say, the shop has earned by loyalty for a long time to come. 

What is your purpose?

Understanding the purpose of a business may have everything to do with its success.  What is the purpose of a business?  Is it to make a profit? To serve customers? To produce a product? I would suggest that the purpose of a business should be to produce a product or service of the highest quality in the most efficient manner.  When we do this we should make a profit, but the profit is the byproduct of the primary purpose of serving the customer.

An article in today’s national news about Toyota’s surpassing GM in auto sales probably says a lot about this issue. The spokesperson for Toyota had the following to say about achieving the milestone, “Our goal has never been to sell the most cars in the world," Paul Nolasco said. "We simply want to be the best in quality. After that, sales will take care of themselves."

With that attitude, Toyota has the key to success.

More than 20 years ago management expert William Ouchi in “Theory Z Management” pointed out that the Japanese were long-term thinkers and would surpass the US because they weren’t out after the short-term gain. Thinking long term and concentrating on quality and service will bring both sales and profits in the long run.

The highest purpose of an organization should be to serve the customer and do it in an efficient manner.  That rule should be for non-profit organizations, governments, churches, and profit-making businesses. When that is accomplished society is best served and owners will profit. 

The Key is Service

For the past 15 years or so I have been studying the extent to which successful business practices are based on what is often called the “Judeo-Christian Ethic”  For all of those years I have discovered more and more of a connection.  Clearly good business practices are coincident with Biblical principles.

            During this Easter season Christians focus on the death and resurrection of Christ. At a service today I was drawn to the concept that Christ died for the benefit of us. In fact, he was willing to go to the cross for our benefit.  That is the ultimate of service.

            In business, service is a key in two ways.  Managers and owners should serve their employees.  Rather than rule over them, we are told in the Bible that those who wish to be leaders should be the servants of all.  Good leadership is servant leadership. 

If you want to read more on that subject, check out the classic, “Servant Leadership” by Robert K. Greenleaf.” It was originally published in 1977, but the 25yr. edition is now available on Amazon for less than $15.  I ordered it again since I last read it when I first went into consulting in 1981.  I’m anxious to read it again.

            The second aspect of serving is to serve the customers.  The more a business can instill that concept into its employees, the better the customer service will be as will be the success of the company.

Town website

Don’t miss the Town’s website, www.ci.wickenburg.az.us.  There is a wealth of information here especially if you want to learn about regulations and statues.  The archives section is full of good stuff, and under the heading of Economic Development are many great resources.  For me the most important part of the website is on the lower left of the home page where it says, “Notify me.”  Click on that link and you will be able subscribe to an e-mail notification system for meetings.  This is great!  They will send you a meeting notification with agenda so you will know what to expect.  Never miss an important meeting.  Business people have to be at these meetings to make sure that our interests are protected!

Piggyback on another’s success

For those businesses counting on tourist trade it’s important to try and tie into events promoted by others. Within the next couple of months we will have the “Cowgirl Up” event at the Museum, The D.C. and Las Damas Rides, and several more performances at the Webb Center. Creative businesses will figure a way to attract these visitors into their stores, galleries, shops, and restaurants.  Think about the type of people coming to the events and what their interests may be.  Then offer them an incentive to do business.  Most importantly let’s all welcome the visitors will our traditional Western Hospitality.

Be different

In a difficult economy for automobile sales Jones Ford etc. has determined to be different with a unique idea – a lifetime limited warranty on engine and drive train.  The fact that there are some exceptions and stipulations is unimportant.  The real key is that the dealership has decided to do something that differentiates itself from the others.  This is a lesson for every business.  “Be different (better) and then tell the world how you are different.” That is a key simple formula for success.

Note that there are two things to be done.  Being better than everyone else does no good if you don't advertise the fact.  On the other hand, a bunch of advertising but not being different is also a waste of time.

Professional image

Today I thought about two Wickenburg businesses that work together for a greater sense of professionalism.  Most anyone will agree that Bill Green operates Double J Court Self Storage in a professional manner.  One thing that sets him apart is that you will always see him in a nicely pressed shirt with his logo.  Who does the logo?  Bobbi Brooks at Creations in Thread.  Bobbi recently moved her shop to Bill Fuller’s Riverside Plaza near Kwikprint.