515-984-0301

info@addzerosnow.com

Satisfy Constituents through the Discipline of People 

Monte Wyatt & Brad Sugars, Dec 03, 2019

When an organization implements the 5 Disciplines for exponential growth, it will help satisfy the five constituents. These constituents are the company, the customer, the team member, the stakeholder and the community.

When the business is not just maintaining each discipline, but adding zeros to each one, typical results include increased revenue and profit, greater customer loyalty, increased employee retention levels and engagement, growing communities, and companies that will last for decades or generations.

Attracting and retaining skilled people is the result of investing in three critical areas:

  • Leadership
  • Talent Development
  • Recruitment

The Discipline of People benefits the Customer because it makes them feel good. When a company has the right people in place who have been properly trained and their skills have been developed, and they’re enjoying their job, they’re building up trust with customers who love how they're being treated. They’re going to come back and buy more because the experience made them feel good about themselves.

That could be because the salesperson said they look good in a new suit, or the waitress spoke to them in a personable way. Real human interaction leaves a good impression.

Here's an example where things don't go well. You drop your car off at the dealership at 8:00 in the morning to get something fixed. They say it’ll be done at 5:00. So, you show up at 5:00 expecting to drive home, and learn only then that the part never arrived, so it's going to be tomorrow afternoon maybe. Not a good feeling.

Here's a different scenario. After you drop off your car at 8:00, you get a call at 9:30. The dealership tells you, "You know, the problem is bigger than we thought. We won’t have the part we need until tomorrow afternoon. Because of the inconvenience, we’ll give you a loaner car for two days at no cost, if you'd like. We'll pick you up and drop you off."

A fellow human being recognizes that you’re going to have a problem, and helps you. From now on, you know where you’ll be doing business because you were wowed.

When we’re wowed, we go back for more of the same. When we’re not wowed, we focus on price. It doesn’t cost that much to provide wow to the customer, and the minimal investment in empowering employees to wow customers pays off.

The constituent made up of Team Members values consistency and stability, so the overlap of the disciplines of Execution and People pleases them. Reliable and excellent employee training produces high morale and low turnover because people are engaged and cherish their jobs. The Discipline of People benefits team members because they feel heard and valued.

In many organizations, employees don't feel that management listens to them. They continually hear, "We can't do that, that's a stupid idea," instead of, "I love that idea. Let's talk about how we can make that work, and let’s look at the upsides and the downsides of that idea, and whether it matches the direction we need to go."

Leadership should respect a team member’s input so the team members know they’ve been heard. Coaching team members to work out for themselves whether their idea is feasible teaches them skills they can employ in the future, and rewards them for engaging with the company. When we’re engaged with our jobs, we feel good about ourselves. We’re adding value to the company we work for, and we’re helping structure the shared future.

Leadership, in essence, is coaching with positive energy, and we get that energy from fun. Fun is important. The more fun we have in our job, the more people want to talk to us, and the more people want to buy from us. Customers can tell when an employee doesn't enjoy their job: there’s no wow. Disgruntled employees create disgruntled customers.Â

Here's a story to illustrate this. We worked with a fast-growing construction company that didn't have a handle on their financials. They had just started understanding their margins, job costing, and all the things that a stable company needs to know. As their attention and energy shifted to numbers, the message the employees felt they were hearing was it was all about the money now. Without clarification about why the company changed how it operated, rumors abounded and resentment grew, endangering customer relationships.

Realizing that the problem stemmed from a lack of clear communication, the CEO said at the annual team meeting, "Let me show you where the money goes so you know why we can and can’t do certain things."

He showed them a stack of $1 bills, saying, "Here’s $100. Let’s say this is our revenue for the year.

He counted off a huge number of bills into a pile. "Subcontractors get paid 70% of what we take in every year, so here’s $70 gone."

He peeled off 15 singles: "Here’s what we pay in wages.’

From the much-reduced stack, he made two five-dollar piles: "Here’s what we pay in overhead, and here’s what goes to taxes," he said.

He held up the remaining five one-dollar bills, fanning them out. "Here’s what’s left for profit, re-investing in the company, expansion, what have you," he said. "We’ve got really low margins in this business. If we all want the company to do more for us, we’ve got to work together on increasing this pile."

This clear message, delivered by the CEO directly to the team, made them feel heard. By trusting every member of the team with sensitive financial information, the CEO made them feel valued and raised morale. The reality of five crumpled bills representing the future of the company made everyone realize the importance of making customers feel good.

To recap, the Discipline of People is about stability through attracting and retaining skilled people, which is the result of investing in three critical areas:

  • Leadership
  • Talent Development
  • Recruitment

The Discipline of People benefits team members because they value heard and valued. Reliable and excellent employee training produces high morale and low turnover because people are engaged and cherish their jobs. The Discipline of People also benefits the customer because service makes them feel good. When a company has the right people in place who have been properly trained and they enjoy their jobs, they build up trust with customers, who sense this and come back for more.

We'd love to hear from you. How does your company benefit team members and customers? Thank you for sharing.