After the first week being a short one running into the weekend and a technical issue giving us a fits, I found myself cramming to find time for the material of week two. Despite the time crunch, I found myself once again intrigued by the topics and discussion that was occurring, prompting many thoughts.
Missing a Mission
A good portion of this week’s material focused on the
mission statement of an organization, the details contained it, and how it is
the basis of a company creating a plan and getting all employees moving in a
common direction. Upon looking at my current organization I realized that there
is no mission statement. Currently I am a store manager of a small ice cream
parlor that has been family owned for over 30 years. I am the first of my kind
as the store has never had anyone in a managerial position outside of the
owners. Because of this situation, I don’t find much need for a written mission
statement as is the case in most organizations. In the Lehmann text, there is a
discussion about marketing planning that I see as being applicable to mission
statements as well: “the plan is a written document, not something stored in a
marketing manager’s head”. In the case of my organization, there is no need
because the mission is not really applicable to rest of the organization. We
have anywhere from 3-8 employees at any given time during the year, most of who
are not yet legal adults. Their needs and desires are far different from that
of the owners. While the owner worries about making a living, supporting his
family, and properly running his business, the employees mostly think about
getting out of work as early as possible and when that paycheck is coming in so
they can plan their next outing. In this scenario, there is no need for the
mission of the organization or the strategies which are being undertaken to be
written down and made public information. The thoughts rarely need to leave the
owner’s head and only do so when I can assist in decision making or planning. When
that situation does arise, a direct conversation does the trick rather than
having to reference the old company manual. By and large, this organization has been a one
man show and has presented no need for a traditional written mission the way a
standard organization does. There is never a change management. There are no
different departments working towards a common goal. There is just a man producing
products and his employees serving customers and cleaning up shop. The mission
is simple: provide great customer service and keep people coming back for more.
Speaking of coming back for more…
It is undeniable that an organization survives based on
having loyal, repeat customers (with the exception of a mortuary). Being a part
of a small business is no different and perhaps even more so true compared to
larger organizations. The lessons from this week stressed the importance of
keeping customer’s satisfied and coming back for more. A lot was made about the
metrics and how to measure quality and performance. In my organization, we are
lucky to be able to get very accurate and reliable metrics directly in store.
First of all, we see exactly who are repeat customers are on a daily basis. We
recognize those coming in for the usual and are well aware if somebody hasn’t
stopped in for a while. We see exactly what products are selling more and what
is not going as fast. Therefore, we know what customers like and what they
prefer given the options presented to them. We know that we can test a product
and determine its potential based on how well it sells and what customers
think. One of my best metrics we have for determining the quality of our
products is the sample spoon. When a customer comes in whether they are a new
or a returning customer and they try something new that we have introduced or
perhaps just something they’ve always skipped over and never had before, we
receive instantaneous feedback. Sometimes they will declare its delicious and
get it. Other times they will say it’s not to their liking. Perhaps it was good
but not good enough to stray from the usual. No matter what their reaction, it
is right there in front of us and easy to interpret. The immediate response
that is available in our organization makes for great opportunity to give the
customers more of exactly what they want, improve upon what they don’t like,
and ensure a quality experience. And that is what brings people back for more.
One area this week that I found myself questioning after
further thought was the concept involved with earning more money through repeat
customers. It is completely sensible to me that repeat customers are less
expensive than trying to acquire new customers. But it was also explained that
as you receive more loyalty and get the same people coming back, you will
continue to bring in their money and your expenditures will be going down,
increasing your profitability. While in theory this may be true, I question its
validity in one sense: is any organization ever done looking for new customers?
No matter how successful you are, there is always room for growth and the
potential to provide to more customers. Does an organization ever stop their
efforts to acquire new customers? Customers that can turn into loyal customers
just like the current ones you have? Based on that logic, the expenses would
never really end up going down. Regardless of lower expenses or not, the fact
still remains that it is those loyal customers who are the crux of an
organization’s success.
Cohen’s Eight Principles
1.
Maintain absolute integrity
2.
Know your stuff
3.
Declare your expectations
4.
Show uncommon commitment
5.
Expect positive results
6.
Take care of your people (customers and
employees)
7.
Put duty before self
8.
Get out in front
In the text Drucker on Marketing, Cohen explains how
marketing is leadership using 8 principles he found in researching effective
leaders. In looking at my current organization, I see many of these qualities
within the owner that make him an effective leader. One of the principles that
he follows well is #3. There are not many expectations of the employees in our
organization. They are not expected to accomplish great things nor are they
challenged with impossible tasks. The expectations are made very clear and are more
importantly explained as to their importance. If something is expected to be
done, there is reason behind it. More so than declaring specifically what is
expected, I think it is very helpful for employees to understand why it is they
are doing something. Another principle that he excels in is #6. Our little
store is known for exceptional customer service and making sure that everyone
who walks through our door is treated wonderfully. The same way we are to treat
our customers is the same way that the owner treats his employees. This makes
it much easier to replicate this attitude and conduct towards customers, which
also reflects on principle #8. Being that we are a small business, the owner,
in addition to running the business, as all the same jobs as the employees.
Everything that is expected of us is done by him on a daily basis. Thus, there
is always an example being given of the appropriate way of doings, reflecting
back on #3. Additionally, this keeps the owner in tune with the customers and
the daily operations of the store, making it easier for him to ensure that he
is properly managing every aspect of the organization and making him an
effective leader.
In looking back at our lack of a traditional mission
statement, I think that the owner being such an effective leader is partially
responsible for why we are able to get away without one. Being so heavily
involved in every aspect of the organization makes it much easier to keep
control of what goes on and ensuring that things are done the way he sees fit.
But in addition to that, it is his ability to effectively lead his people that
allows his ideas and his way of doing business to be implanted in the rest of
our minds, even without a document spelling out how we are supposed to operate.
This type of leadership would help to instill a mission statement or even a
marketing or strategic plan in any organization. Certainly there is a need for
the written documents in the larger organizations but having an actively
involved, caring, and committed leader will only strengthen the mission, take
what is on paper, and help put it into action.
A smaller approach
I'm beginning to see that most of what is discussed may not necessarily be reflective on a small business. My current position and my previous work experience has been in small businesses. So far I am enjoying seeing what is applicable in a small business setting and comparing it to how larger organizations operate. Seeing what classmates have to say is helpful, but at the same time I am often visualizing myself working for a large corporation and applying these concepts. I think that having an appreciation of both ends of the spectrum will enhance my experience with marketing.
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