Our New "Get Tough" Policy
- February 24th, 2009
- Posted in Systems Thinking Concepts
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You figure in life if you live long enough, you will hear something so ridiculous that it defies all comprehension. So here we go . . .
An executive once told me that they were going to enforce a new “get tough” policy with customers and they would be enforcing the letter of the contract because customers were trying to take advantage of them. This executive sees good service as a zero sum game where good service and costs have to be balanced. For command and control organizations their attitude to customers is to seek out the contract for fear of losing money or exposing themselves to risk. These organizations build gigantic legal departments, risk managers, project managers, and accountants to ensure that no money is lost in a contract. Did anybody mention the cost of these people and the waste they produce? . . . just in legalese, project plans, PowerPoints and spreadsheets to avoid “scope creep” and those darned customers that are so demanding. They believe business cost reduction is only achieved through more non-value added activities like inspection and reporting.
A systems thinking organization knows better. They know that providing good service always leads to lower costs and happier customers. A management paradox that command and control organizations can’t comprehend. A systems thinking organization understands who does the value work for their customers, and what their customers value. They understand that not meeting customer demands lead to more costs in increased failure demand, poor reputation and many unknown and unknowable measures that suck the life out of an organization.
So, if you hear about any “get tough” policies with customers, please send the offending party here to think about a better way.
You can read more about the distinctions between command and control and systems thinking through this link.


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