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The very best from the site

  • Top 5 reasons why “The Customer Is Always Right” is wrong

    The customer is always right?

    When the customer isn’t right – for your business

    One woman who frequently flew on Southwest, was constantly disappointed with every aspect of the company’s operation. In fact, she became known as the “Pen Pal” because after every flight she wrote in with a complaint.

    She didn’t like the fact that the company didn’t assign seats; she didn’t like the absence of a first-class section; she didn’t like not having a meal in flight; she didn’t like Southwest’s boarding procedure; she didn’t like the flight attendants’ sporty uniforms and the casual atmosphere.

    Her last letter, reciting a litany of complaints, momentarily stumped Southwest’s customer relations people. They bumped it up to Herb’s [Kelleher, CEO of Southwest] desk, with a note: ‘This one’s yours.’

    In sixty seconds, Kelleher wrote back and said, ‘Dear Mrs. Crabapple, We will miss you. Love, Herb.’”

    The phrase “The customer is always right” was originally coined by Harry Gordon Selfridge, the founder of Selfridge’s department store in London in 1909, and is typically used by businesses to:

    1. Convince customers that they will get good service at this company
    2. Convince employees to give customers good service

    Fortunately more and more businesses are abandoning this maxim – ironically because it leads to bad customer service.

    Here are the top five reasons why “The customer is always right” is wrong.

    (more…)

  • Today’s danish language lesson: Arbejdsgl

    Danish flagI’ve been going on about how there’s a danish word for happiness at work, the word arbejdsglæde.

    John of uneasy rhetoric had the great idea to put up a pronunciation guide and here it is, today’s lesson in danish: The word arbejdsglæde and how to pronounce it. (2 Mb mp3 file, 2 minutes).

    In english it would be something like: Ah – bites – gleh – the.

  • Steve Forbes doesn’t get it – or why having the world’s highest taxes is a good thing

    Taxes

    Steve Forbes was in Denmark this week on a European tour, meeting with political and business leaders. His main message was that while Denmark has arguably the strongest economy in Europe right now, the high danish taxes are limiting our economic growth.

    And danish taxes are very high: The highest tax bracket kicks in after only 40.000$ earned, and you pay 60% taxes on everything you earn over that. This money is used to finance a very high level of public services, including free health care, schools and universities for everybody.

    The high tax level also finances what is called the danish flex-security model: In Denmark it’s relatively easy to fire employess (flexibility) but unemployed danes enjoy great benefits (security). Compare this to Sweden where it’s very, very difficult to lay employees off because the unions have enormous influence or to the US where unemployment benefits are not as generous.

    Forbes argues that the economic success Denmark is currently enjoying comes in spite of the high tax levels, and said “just imagine what you could achieve with lower taxes.” His argument goes something like this:

    1. Because taxes are so high, working more doesn’t pay much, therefore people work less
    2. If taxes were lower (say 40% in the top bracket instead of 60%) people would work more
    3. People would also make more money, meaning the state would take in the same amount of money in taxes
    4. People working harder would result in increased economic growth

    I think he’s wrong, wrong, wrong, and I’ll tell you why!
    (more…)

  • Four Fantastic Phrases at work

    Four Fantastic Phrases

    Let’s say you agree with me, that being happy at work is really important. That coming to work day after day, year after year, simply for the paycheck is just not enough. Hey, we spend most of our waking hours at work, so we might as well enjoy it, right?

    Assuming that: What can you do to be happy at work? Specifically, what can you do right here and right now? Something simple, easy and fun, that will make a positive difference for you and your co-workers.

    If that’s where you’re at, there are Four Fantastic Phrases you should know. Four simple things to say that make work a lot more fun. Four phrases whose absence is guaranteed to make work absolutely miserable.

    Here they are:

    1: “Thank you”

    It’s so simple: People are constantly helping each other out at work and doing stuff for co-workers, and a simple “thank you” can really make a difference.

    Take it a step further and praise people while you’re at it. Remember that you can praise people both for what they do and for who they are. As in “Thanks for getting that report to me a day early” or “I really like working with you because you’re so dependable” respectively. Both are good!

    Praise and thank-you’s take no time and cost no money, but really brighten people’s day.

    2: “I’m sorry”

    Let’s face it, we all screw up once in a while. When you do, don’t hesitate to apologize. In fact, the sooner you apologize, the easier it is.

    Some people think apologizing is a sign of weakness, but in reality it shows that you take responsibility for your actions and it makes it easier to move on after making an error. It also shows that you learn from your mistakes, provided, of course, that you don’t keep making the same mistake over and over.

    Most of the time, a mistake is not your fault alone, but you can always take responsilibity for the part that is your fault and apologize for that. When it’s both your fault and somebody else’s fault, apologize first, instead of waiting for the other guy to do it. He may be waiting for you too, you know :o)

    3: “Help”

    Ask for help when you need it. Many people actually like being asked, since it makes them feel appreciated and needed, so there’s a chance to make somebody happy at work right there.

    Also: Offer your help, even when not asked. Some people feel too busy to offer their help, but when we all help each other, we each become more efficient and get more work done. When everybody’s thinking “I really don’t have time to help others” everybody gets less work done, and the statement becomes self-fullfilling.

    4: “Yes, and…”

    A co-worker comes to you with a new idea. “Let’s try a new approach on the Hansen project. Why don’t we [insert new idea here]?” Here are some potential responses:

    • “No, that’ll never work”
    • “Yes that sounds interesting, but we don’t have time for that”
    • “Yes that sounds interesting, and I’d like to hear more”

    No’s and yes-but’s discourage people. It’s a sign that you’re not really open to new ideas. Yes-and means you’re willing to listen and consider new ideas in depth. People love being listened to.

    NB: Yes-and is not about saying yes to everything. If you do that, you’ll never survive :o) Yes-and is about being open to other people’s suggestion instead of immediately rejecting them.

    Four Fantastic Phrases

    So.

    Imagine a workplace where people:

    • Constantly thank and praise each other
    • Apologize freely when they make mistakes
    • Easily offer and ask for help
    • Are always open to each other’s ideas

    That would have to be a nice place to work. On the other hand: Imagine a company where people rarely or never use those four phrases. Scary thought, huh?

    Here’s the deal: Each of the four phrases is contagious. The best way to spread the virus is to use them yourself. The more you thank others, the easier it will be for them to thank you. The more you admit your errors, the more your co-workers can do it too. Etc…

    And start now. Find a co-worker and praise her. Have you made a mistake recently? Go apologize right now. Are you stuck on some task? Go ask for help. Does one of your colleagues look stressed? Go offer him your help.

    Anybody can use these phrases, employees, executives, middle managers, techies, receptionists, janitors, office workers, everyone. I will say this though: Coming from managers, they have an even stronger impact. But that’s no excuse for the rest of us not to use them, untill management does :o) Remember: Something happens when you do something. Not before.

    Will it make a big difference? Not immediately. But it gets the ball rolling and makes you and others a little happier at work every day.

  • Help Alex write a book

    Happy at work bookI have a big announcement:

    Happiness at work is my favorite topic and I believe this idea is revolutionizing the business world. But while happiness is a deep theme in more and more business books (Nuts! and The Seven-Day Weekend are prime examples), there’s still no one book that deals with how you’d run a company based on happiness.

    I’m writing that book – and I’m writing it right here on this blog.

    The book’s central idea is this:

    Happiness at work is the best and most efficient force in business.

    You can be in business for money, power, out of ambition or to change the world, but the one approach that will get you lasting success and a good life is to base your business decisions on this question: How can I make myself and others happy through my work?

    Click here to read all the details – and please help me out.

  • Book review: The Seven-Day Weekend

    Ricardo Semler: The Seven-Day WeekendYou should know one thing before you read my review of Ricardo Semler’s excellent book The Seven-Day Weekend: He’s my idol.

    I’ve read his books and followed his work and I’m a fan. Completely, unashamedly, unreservedly, probably in the same way that 14-year old girls are fans of Justin Timberlake. If he ever comes to Copenhagen to give a speech, I’ll be in the front row, screaming my little lungs out.

    Ahem. I deeply admire Ricardo Semler. He’s the CEO of the Sao Paulo, Brazil-based company Semco, and his vision of leadership has been the driving force behind an organization so different, so innovative and so successful that the business world has been forced to sit up and pay attention.

    That’s admirable but it’s not the most important reason why Ricardo is my idol. The core reason is this: Semler has chosen happiness as his driving force in business.

    He enjoys life and he wants Semco’s employees, customers, suppliers and community to be happy as well. That is the real motivation behind Semco. Not growth. Not profits. Not power. Not status. But happiness.

    This is why Semco has chosen to do things… somewhat differently. At Semco:

    • Employees set their own working hours
    • Employees choose their own salaries
    • All meetings are voluntary and open to everyone
    • Employees hire their own bosses
    • HR has been almost abolished, because leaders need to be able to treat their employees right themselves
    • All employees rate their bosses twice a year and all ratings are published
    • Employees choose which leader they want to work under
    • Employees choose which Semco office they want to work out off
    • Employees can take early retirement, meaning they get one day a week off in return for working one day a week after they retire.

    Etcetra, etcetera, et-fricking-cetera… It’s hard to find a single aspect of traditional organization and management that Semco hasn’t either blown up, reinvented, abolished or turned upside down. I like it!

    Semler first described his vision in the aptly titled book Maverick (also an excellent read). The Seven-Day Weekend was written about ten years later and goes even further.

    The title references Semler’s belief that life cannot be divided into work and free time any more. If you can answer business-related email on a sunday evening, why can’t you go to the movies on a wednesday morning? Semco wants employees who are 100% themselves on the job or off it. Consequently, they treat employees as adults who are capable of making decisions for themselves. In return, people respond by honoring that trust and delivering fantastic results.

    The book is full of stories from Semco’s everyday existence, and these stories are a joy to read. Time and again these stories illustrate, that Semco does not choose the easy way out. The easy, safe and comfortable way is to fall back on well-known, hierarchical control structures. Semco consistently resists this temptation and instead chooses to believe in its people and its corporate values.

    As a result, on of Semco’s top management’s most important leadership tools is… inaction. Not to do anything. To not interfere and to let the organization work out an issue on its own. To trust the process they’ve defined and see where that takes them.

    Not out of a laissez-faire management style or a fear of conflict (if anything, Brazilians seem to relish conflict), but out of a realization that every time top executives step in and mandate a solution, they rob the rest of the organization of initiative and the will to act.

    This is without a shadow of a doubt the best and most important book on leadership I have ever had the pleasure to read. This book quite simply rocks, and any leader who reads it will be able to pluck dozens of useful, practical and innovative ideas from it’s pages.

    It’s an easy, fun read, the stories are told amazingly well and the book is 100% free of MBA-jargon.

    Read it!!!

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  • Let’s go vampire slaying

    Vampire ideas

    Cold, undead relics from a past age haunt the corporate world, spreading fear and carnage wherever they go. These monsters can look good, seductive even, but if you let them, they’ll suck the life force out of you and leave you dead. Or worse: One of them.

    I call them vampire ideas and all they deserve is a stake through the heart. Vampire ideas can be found in stock management philosophy, tired old leadership theories or business advice from an earlier era. Wherever they come from, they’re bad for you and they’re bad for business.

    Here’s a table comparing vampire ideas to actual vampires:

    Actual vampires Vampire ideas
    Can look really good Can look really good
    …but are actually disgusting and evil …but are actually disgusting and evil
    Are undead Should’ve been dead a long time ago
    Suck people’s blood Suck a company’s energy and creativity
    Are deterred by garlick and crosses Are deterred by good leadership
    Can’t enter your house without an invitation Can’t enter your business without an invitation
    Are really hard to kill Are really hard to kill
    Wither and burn in the light of day Wither and burn in the light of logical thinking
    Cast no shadow or mirror image That’s kinda where the analogy breaks down

    So what are some commonly seen vampire ideas? Here are a few examples.

    Fire the bottom 10% of your employees every year

    This is one of the most inhumane, cynical and just plain stupid ideas I’ve ever heard about. Who on earth still believes that this is a good way to do business and to get the best performance from employees. This idea keeps employees constantly afraid, but if that’s what you want, go for it. The exact opposite view is described here and trust me, it works much better.

    If you can’t measure it, you can’t manage it

    Vampire ideaConsidering how many things in a business are unmeasured, not to say unmeasurable, this is one more bad idea in need of a final resting place. I’ve written about it previously here. This idea of management-by-spreadsheet stifles new ideas and reduces a leaders focus to things that can be expressed in numbers.

    Long work hours are good for business

    No. They’re not. In fact, laziness will take you much further.

    Nice guys finish last

    That’s not true either. In a networked world it’s more important to be generous and likeable than to be ruthless and efficient.

    Wooden stakeI’m sure there’s more. What vampire ideas do you know, that we should get rid of once and for all?

    Let’s break out the wooden stakes and go vampire slaying together!

  • The cult of overwork

    Tired

    Some years ago CNN asked 12 well-known leaders including Carlos Ghosn of Nissan, Marissa Mayer of (then) Google and Wynton Marsalis how they manage their time and stay efficient.

    My favorite answer is this one:

    I know that it’s expected of executives to start the day extremely early, but frankly I feel I make better decisions and relate better to people when I’m well rested. So I usually get up around 8 after a good night’s sleep.

    I also make sure to almost always work a standard 40-hour week and never work on the weekends. This is important to me for two reasons. First of all, I have a life outside of work. I have a family who likes to have me around and friends and hobbies that I also want to have time for. I find that the time I spend outside of work recharges my batteries, expands my horizons and actually makes me more efficient at work.

    Secondly, if I’m always seen arriving at the office at 6 in the morning and leaving at 9 in the evening, not to mention taking calls and writing emails late at night and all weekend, it’s sure to send a signal to my employees that this is what the company expects, that this is “the right way”. But it isn’t.

    It’s a simple fact that for most leaders and employees, the first 40 hours they work each week are worth much more to the company than the next 20, 30 or 40 hours. But those extra hours spent at work can harm your private life, your family and your health. Which in turn becomes damaging to the company.

    Frankly, if you can’t structure your time so your work fits inside a 40-hour week, you need to get better at prioritizing and delegating.

    Refreshing words. Guess which of the executives said that?

    Come on, take a guess!

    NONE OF THEM! Not one.

    Instead, there’s a lot of “I get up at 5 and arrive at the office at 6” and “I work 16 hours a day” and “I take a lot of calls on the drive in to the office” and “I usually leave the office at 7 and then work a few more hours in the evening at home.”

    I fully expected one of them to go “I get up at 4 in the morning, half an hour before I go to bed, and work a 27-hour day, only stopping for a 3-minute lunch break in which two assistants stuff food down my throat like a foie-gras goose.”

    I know it’s normal to view people working this hard as heroes of the organization, but still I think they would be more efficient and enjoy life more if they cut down their time at work. They may find that they become more open, less stressed, have more fun AND are better role models for their employees. This cult of overwork has got to stop.

    The school of “work your butt off, everything else comes second” is bad for business and bad for people. Can we please retire this tired idea once and for all?

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  • Make your business happy and rich

    Happy SprayIt pays to be happy. Studies show that businesses with happy employees consistently outperform their less happy competitors in the marketplace and in the stock market.

    Considering the challenges that modern organizations face, creating a happy organization is the number one strategic imperative and the only way to long-term success.

    This article will tell you why happiness is so important for businesses today, and how you can make your business a happy one.
    (more…)

  • Share the gold mine

    X-ray

    A Fast Company article from 2002 tells the story of a Canadian gold mine threatened by bankruptcy:

    McEwen [the owner] believed that the high-grade ore … was present in parts of the 55,000-acre Red Lake stake — if only he could find it…

    Eventually, the group’s attention turned to the Linux operating system and the open-source revolution. “I said, ‘Open-source code! That’s what I want!’ ” McEwen recalls…

    Gold nuggetHis reasoning: If he could attract the attention of world-class talent to the problem of finding more gold in Red Lake, just as Linux managed to attract world-class programmers to the cause of better software, he could tap into thousands of minds that he wouldn’t normally have access to. He could also speed up exploration and improve his odds of discovery.

    He released all his corporate survey data from the company’s land, information that is:

    • The heart of any mining operation
    • Very expensive to come by
    • Normally an extremely well-kept secret

    He organized a contest – on the internet – to point out the best sites to dig. Anyone could access the survey data and participate. The first prize was $105.000.

    The result? The company has drilled four of the top 5 winners’ sites, and have found gold in all four. Which proves that you can get very valid and valuable results from this approach.

    The first prize winners? An australian geoscience outfit who’d never been to the mine – or even to Canada. Which proves that this approach can open new sources of information that you’d not have access to otherwise.

    Corporate information is worth little when it’s locked up. Don’t keep all data in your business a deep, dark secret. Insteat, open your company’s inner workings to the world. The good and the bad!

    The perils of secrecy

    In the information age, many businesses have fallen into a trap: They have correctly identified information as the key to success or failure, but they have incorrectly concluded that the best way to profit from the information is to lock it away from the world. They make corporate information secret by default.

    This goes for financial information, project development, new partnerships, strategies and plans and virtually every other aspect of the business. “Knowledge is our corporate, intellectual capital and we must protect it or it will be stolen from us.” seems to be the thinking.

    But this approach comes at a cost:

    • It reduces the efficiency of employees who don’t know what’s going on
    • It makes the company look untrustworthy to the public
    • It limits the potential for generating new ideas and partnership

    The opposite approach, to make all information public by default and only keep a few select areas secret, makes much more sense. This is especially true in an information-dense environment which carries a high probability that a company’s dirty secrets will be revealed sooner or later.

    In fact, as we saw, releasing top-secret corporate data can be a gold mine. Literally. Here’s another example.

    Be open with customers

    Another great example of the open approach is Semco. Yes I know I write about them all the time, but they get it, dammit. They get it and they do it. In his excellent book The Seven-Day Weekend, Ricardo Semler tells the story of a negotiation with a potential customer for a huge contract.

    Of course Semco had done their homework and made calculations showing what their profits would be depending on what price they could negotiate. At the meeting, Semler showed the customer these calculations, letting them know exactly how much Semco stood to make from the deal. This honest, open approach impressed the customer and Semco got the contract.

    Businesses should ask themselves these questions:

    1. What are we keeping secret and why?
    2. What information could we share, that would bring us new ideas, new partners and increased profits?
    3. What risks are involved in sharing this information? Are they offset by the benefits?
    4. What risks are involved in not sharing it?

    That last question is often left out, as businesses list the dangers of openness and ignore the dangers of secrecy.

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