Serving employees first and customers second has been a recurring theme of my work as readers of this blog will know.
A story is told about Southwest Airlines who received a letter from a woman complaining about the absence of seat assignments, a first-class section and meals. She also didn’t like the boarding procedure, or the flight attendants sporty uniforms, and she disliked the casual atmosphere and abhorred peanuts! Southwest answers every customer letter, but this one stumped them. So they sent it to Chairman Herb Kelleher for advice and inspiration. In sixty seconds, legendary Herb penned this response: “Dear Mrs Crabapple, We’ll miss you. Love, Herb”.
Now a story in the New York Times tells about Steven T. Bigari, a Colorado Springs McDonalds Franchisee, with staff turnover of 300%, paying minimum wages to employees from the ranks of the working poor. He started with the traditional “old story” plan for dealing with shrinking profit margins: cutting employee’s vacations. But then he had an epiphany and reversed his thinking. He realized that if he put employees first, they would take care of customers and build his business for him.
His 12-store franchise system introduced an array of services, from arranging day care to organizing transportation to making small emergency loans. His business became so successful he sold it to McDonald’s and now teaches his ideas to businesses. Read the entire, inspiring story here.
Thank you for sharing this powerful story Lance. I think it’s imperative that we remind ourselves that “doing good” is NOT bad for the bottom line but, in fact boosts business and improves lives and communities at the same time. Bravo to all involved!
Lance,
The Southwest story just reiterates that Purpose comes before everything. In this case, the ladies demands were nincongruent with Herbs reason for starting the airline.
I have no doubt whatever that this philosophy works. I’ve employed it myself to great effect.
When you create an environment of enthusiasm, empowerment, and good will for your staff, the effect translates directly to the people your staff serve. Serve your employees in the manner you want them to serve their clients. Seems a simple concept, it’s hard to imagine why this mode of thinking isn’t more universal (well, ok, not all that hard, but a shame that’s so).
But further, this isn’t just about putting (good) business first. It goes beyond simply manipulating employee attitude to achieve a particular benefit. It is in my opinion a moral imperative of business. Our employees are every bit as much a stakeholder as our shareholders. And strategic-thinking shareholders both respect and understand both the moral and business value of this philosophy. We owe our staff supportive, benevolent leadership. This in no way implies that leadership is incapable of being firm, decisive, and authoratative when need be; in fact the two approaches achieve great synergy. Is there really any other way to really expect an ownership mentality, low turnover, and the type of job enthusiasm and self-motivation that underpins great individual and corporate job performance?
Frankly, I can’t see doing it any other way. If I couldn’t provide the kind of leadership that creates this sort of organizational culture, I’d just as soon go play my guitar.
I’d add that, in addition to employees being equally important stakeholders as owners and customers in the win-win-win triangle of business success, employees deserve as much the benefit-of-a-doubt as do customers, and that likewise customers need to be held to the same standards of cooperation and reasonableness we expect from our employees. Absent this approach, the triangle inevitably breaks down; there is no triangle (success) without three integral sides.
Nice story Lance. And i love your writings.
I would like to add my view here though I am not a business owner (atleast still).
I myself dont prefer to say anyone first or second – neither employees nor customers. Everyone is same & equal. Not just employees or customers or shareholders or ….
A stakeholder is one who is interested in growth of my business. The interconnectedness of universe is applicable here also. My opinion is we ALL are stakeholders of EVERY business. Growth of one business is beneficial to everyone else. Nothing happens in universe with isolation from other.
(A crude example – success of a non-profit working to make poverty history means more rich people, means more people buying cars, means growth of a car manufacturer’s income, means its employees buying costlier houses, clothing, etc…. success of a non profit has made housing industry successful).
Its all to do with basic life purpose – use your talents in doing what you are passionate about for serving others. A creative entrepreneur starts with a creation. People with similar passion & complimentary talents join him/her. Everyone is a co-creator in creating the product/service, providing his/her talents for serving others.
Thank you 🙂