Amazon has an amazing name for great service and being customeric. So much so that ShepHyken lauded them. And I have been an admirer, till recently. Amazon India had many slipups in fulfilling my orders.
Why Leaders Fail
In a recent article (Why leadership-development programs fail: A contrarian view), I wrote that $14 billion was spent on leadership development, and only 7% of such programs were effective. Mckinsey published an article on what really matters to make good leaders.
This was based on a survey of 81 large companies. They found that the top 4 traits of a leader were:
- Solving problems effectively
- Operating with a strong results orientation
- Seeking different perspectives
- Supporting others
- Give praise, Champion desired change, Motivate and bring out best in others
- Make Quality Decisions, Clarify objectives, rewards, and consequences, Develop others
- Communicate prolifically and enthusiastically, Develop and share a collective mission,
- Facilitate group collaboration, Keep group organized, Foster mutual respect and on task quality decisions
- Remain composed and confident in uncertainty, Recover positively from failures, Differentiate among followers
- Offer a critical perspective, Role model organizational values
Basically employee and team related. Not one of these focuses on the Customer. Instead of the Customer focus, we have making profits and organization development, problem solving. No wonder Leaders fail. They fail because this is not enough in a highly competitive world.
And what about mind-set, and thought processes? Not on the list!
No wonder, companies and CEOs are lasting for shorter times, and leaders are failing in this era of the Customer, fast product introduction, shorter product life cycles, social media etc.
What would your top three or four traits be?
Mine would be:
- A mind-set of Value Creation that goes beyond just looking at the obvious, such as processes, systems and what we did in the past
- Customer focused and add Customer Value
- Employee focus and Employee Value
- Have Values and be a Values role model (ethical, moral, fair), Have corporate consciousness (sustainability, ecology, societal)
Your comments are welcome!
Gautam Mahajan, President - Customer Value Foundation
M: +91 9810060368
Tel: 11-26831226, Fax: 11-26929055
Customer Value Foundation (CVF) helps companies to Create Value and profit by Creating Value for the Customers, employee and for each person working with the companies. Total Customer Value Management (Total CVM) transforms the entire company to focus on Creating Value for the Customer by aligning each person's role in Creating Customer Value and getting shareholder wealth and Value.
The Quality Revolution was meant to be customer focused, instead became process centric and one of record keeping. Nonetheless, Total Customer Value Management can learn from the Quality movement. There is much to learn.
Here is an excellent review on Gautam Mahajan's book on Value Creation written by Colin Shaw, founder and CEO of Beyond Philosophy. Colin is an international author of five bestselling books and an engaging keynote speaker..
I gave a talk to BBA and MBA entering students at SGT University in Delhi and then to Model Institute in Jammu a few days ago. I asked the students whom they should create value for? For ourselves was the answer.