"Lay it on me": Confronting a negative customer situation

I really like this story from MP Mueller, president of advertising agency Door Number Three, on soliciting feedback from customers, even if it's negative. The story appears in the New York Times "You're the Boss" blog.

Many leaders ignore this kind of feedback, and certainly don't seek it out. Mueller shows how "corrections are more warmhearted than perfections."

I got a call from a fast-growing bank that was looking for a new agency. The bank had been referred to us by another client, who we were told “was singing our praises.” Which was interesting because I distinctly remember a very rough lunch I had had with that client a few years ago.

He had called me one day to say, “We need to talk.” From the tone of his voice, I knew it wasn’t going to be pretty. We met for lunch, and I said, “Lay it on me.” And he did. I listened, took notes, and promised him a response that day. He and I soon discovered that his marketing person had been throwing Door Number 3 under the bus for things she had failed to do.

But listening, acknowledging, giving him a response with solutions and not pointing fingers made a difference. He and I now go to lunch twice a year or so — an unexpected, but sweet, bonus of working on those existing relationships.

Novartis' Joseph Jimenez: forecasting errors caused by culture, not process

This story, from Novartis CEO Joseph Jimenez via Adam Bryant's Corner Office series in the NY Times, has echoes of Amy Edmondson's research into high-performing hospital teams. Read the story, and I'll tell you what I think the connection is:

Q. What are the most important leadership lessons you’ve learned?

A. One occurred when I was a division president of another company. I was sent in to turn the division around after four years of underperformance. It was a declining business. And when I got there, I completely misdiagnosed the problem. I said: “Look. We’re missing our forecast every month. What’s wrong?” I brought in a consulting firm, and we looked at what was wrong. And the answer was that we had a bad sales and operations planning process, where salespeople, marketing people and operations people were supposed to come together and plan out the next 18 months and then forecast off of that. So I said: “O.K. We’re going to fix this. We’re going to have the consulting team come in and help us make that a better, more robust process, with more analytics.”

And it turned out it wasn’t at all about analytics. Because once we did that, and we put that new process in place, we still continued to miss forecasts. So I thought, “Something’s really wrong here.” I brought in a behavioral psychologist, and I said: “Look, either I’m misdiagnosing the problem or something’s fundamentally wrong in this organization. Come and help me figure it out.” She came in with her team and about four weeks later came back and said: “This isn’t about skills or about process. You have a fundamental behavioral issue in the organization. People aren’t telling the truth. So at all levels of the organization, they’ll come together, and they’ll say, ‘Here’s our forecast for the month.’ And they won’t believe it. They know they’re not going to hit it when they’re saying it.” The thing she taught me — and this sounds obvious — is that behavior is a function of consequence. We had to change the behavior in the organization so that people felt safe to bring bad news. And I looked in the mirror, and I realized I was part of the problem. I didn’t want to hear the bad news, either. So I had to change how I behaved, and start to thank people for bringing me bad news.

Edmondson found that hospital teams with the highest outcomes also had the highest reported incidence of mistakes. When she dug into this paradox, she found that the high-performing teams had the psychological safety to share mistakes so they could be fixed and avoided in the future. The poorer-performing teams tended to cover up their mistakes.