Inspired by the principles developed in the “Service Profit Chain”, Mike Hohnen takes you through each of the steps needed to create an outstanding service business.

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We live in a world of abundance – there is plenty of choice everywhere. And since 2008 we have experienced significant drops in demand as consumers became more careful. The result is a widening gap between supply and demand in virtually any category you can imagine.
When that happens, many companies have a knee-jerk reaction, and the recipe is more or less always the same: initiate rigorous cost-cutting programs, reduce staff and/or services, offer discounts in many forms, and increase advertising aggressively.
This, however, is the equivalent of trying to steer and brake as your car begins to skid on black ice while going through a sharp curve.
As you hit that declining demand curve, you need to perform what at first seems like a counterintuitive move: hold your price, increase your services, improve your quality, and narrow your focus in the market.
In this book, you will not only understand why but also see how you can do that.

One that struck me in particular was the story of when Jobs returned to Apple after his years of involuntary exile. At that point in time Apple was on the ropes and the market was rapidly losing faith.

Jobs convened a product review meeting – Apple at that time had 10–15 different versions of the Mac on the market and even more in the pipeline. Jobs went to the whiteboard and drew a 2 x 2 matrix. On the one side he wrote home/professional on the other he wrote desktop/laptop. Jobs then announced: That is it – four products. A laptop for professional or home use and a desktop for professional or home use. Everything else is as from now abandoned/discontinued.

The lesson for us all of course is: focus. Decide what it is you want to do and do it well.

Trying to be all things to all people invariably results in being nothing to anybody.

What particularly caught my attention was this:

“S+B: In a talk at the ALIA Institute last summer, you said that the only leaders who succeed are those who have some kind of personal spiritual discipline.
WHEATLEY: Yes, I’m convinced of this. By discipline, I don’t mean meaningless, repetitive, boring practice. That disables people. Nor do I mean religious practice per se. I mean some regular activity that leads you to reflect on your struggles and challenges in a larger context. For one of my friends, Alcoholics Anonymous serves that role. For others, it can be prayer, meditation, or time in nature. I’m not sure about running or other physical exercise, because I think a practice has to connect you to the rest of life — to take you out of the false perception that you are the center of the universe.
Without that discipline, I don’t see how leaders can maintain their integrity and focus. The prevailing mass culture has schooled a lot of people to follow their passion, find their calling in life, and do what they love. Then they encounter setbacks, failures, disappointments, and very subtle impediments — for instance, their loved ones say, “Why are you working so hard here?” Many people quit. That’s what’s essential about discipline. You do it day after day, even when it’s boring, because you believe ultimately it will lead to a good outcome. The fruit of all this effort becomes apparent only after a long time when it seems not to be going anywhere. Work can begin with passion, but it’s only through discipline that people can persevere.
Brain research is also clear on why we need quiet time, especially when under stress. This spring, I went on a long, solo retreat. I didn’t interact with anyone except my teacher. I witnessed my own mental capacities coming back in full flower. I regained great powers of memory and concentration. I could understand complex ancient texts. I was so mentally alive. Now that I’ve returned to my overly distracted life, I am back to old ways; I’ll walk across a room and not remember what I went looking for. But now I know that my memory loss isn’t caused by aging or deterioration. The cause is distraction, and working in an anxious world. I can regain my mental capacities if I regularly take the time to slow down and focus.”

Read the full interview here

We don’t yet know what is next – but we do know it will be different. One thing you can be sure of is that in the next 5 years you will see more innovation than you have experienced the past 15 years – what will that mean for your business?

Fred Reichheld and Rob Markey’s The Ultimate Question 2.0 is a follow-up to the bestselling book that first helped businesses understand their Net Promoter Score. One question — would you recommend us to a friend? — offered businesses a vital metric that has since been adopted widely by organizations, including GE. Wharton marketing professor Peter Fader spoke with Markey about what NPS is, how companies can increase the number of people who promote them and why it is now a system and not just a score.

I know I often get the question: Why can’t we do this in our own meeting facilities, that would cost so much less and be much easier for all of us?

The simple answer is often that if we go off site then we will not get distracted and participants will not be tempted to do their normal stuff. But considering the often quite serious costs involved in going off site that does not really explain an adequate return on investment in itself.

A more nuanced answer has to do with the concept of slow learning – a concept that is also key to achieving a much higher ROI on your training efforts

Let me explain.

If we try and map out ways of learning in a simple matrix with slow and fast learning on one axis and formal versus informal learning on the other we get the following picture:

Informal learning is defined by Jay Cross as “Learning which enables you to participate successfully in life, at work, and in the groups that matter to you. Informal learning is the unofficial, unscheduled, impromptu way people learn to do their jobs” (and all the other stuff we need to cope with life – (my addition)

Formal learning – is scheduled, planed and with a predefined content.

Fast learning is what happens when we try and cram the most information into the shortest possible time frame – either because we are in a hurry or because we want to cut costs.

Slow learning happens when we allow ourselves time to digest. When we have the possibility to reflect on how new information applies to our situation. This deeper learning occurs in a subtle mix of personal reflection and discussion with others.

There is – in a way – the same nutritional relationship between slow- and fast learning as theres is between slow- and fast food.

The big difference between fast and slow learning becomes evident once the session is over. Fast learning seldom sticks – it is often called teflon training – guaranteed not to stick – there is no or very little implementation afterwards. Participants may have added tools to their kit but they continue to use the hammer they always used. And what ever growth there is, is horizontal – they know more stuff.

Slow learning on the other hand produces visible shifts in behavior – the changes occur not so much as a result of understanding new skills but in the way participant are able to take new perspectives.They see things in new ways and reach their own conclusions as to what needs to be done. This is vertical growth – looking at challenges from a different level than the one they where created at – and the result is deep change.

If you truly wish to advance rapidly you need to retreat…

The future will belong to the bold. The world of business is now so crowded that only those who have a significant and dramatically different story to tell will grab the attention of consumers.

In a world of ‘green wash’ and PR spin, authenticity will shine through. In the face of unprecedented levels of marketing spend an increasing consumer cynicism, simple recommendations from ‘consumers like us’ will carry the day. In an age when we have come to expect good levels of service and product quality as a given, only in exceptional and memorable experience will earn customer loyalty. At a time when legal loopholes and corporate caveats allow companies to wriggle out of their responsibilities, those who stand by their promises will stand out from the herd. It requires courage, conviction and imagination to be bold but the rewards can be immense.

The first paragraph from:

“BOLD – How to be brave in Business and Win”
by Shaun Smith & Andy Milligan

Need I say more ?