The findings of what Eric Larse calls the ‘intriguing bit of research’ (Watermark Consulting) in his post strongly re-confirm that the long-held fixation with the idea of ‘enhancing shareholders value’ as the primary purpose of a firm is making way for the strongly emerging ‘customer driven capitalism.’ Eric hits the nail right on its head when he says, “only visionary, motivated and stable management team(s) can convince investors to look farther ahead (of the short-term shareholder value)”.
Some companies may be switching over to ‘customer first’ policy for mere public posturing but many, indeed, have been moved to do so out of genuine belief that customer satisfaction has to be handled as a matter of topmost priority. Accordingly, they have equipped themselves with the right kind of resources—people, knowledge, skills, systems, processes and organisational structure—to deliver customer service meeting promised quality standards. And yet, it is not uncommon to find wide gaps between promise and performance; between policy and practice. Why does it happen in companies which claim to be customer-centric as a matter of organizational culture? Where does the disconnect occur? Why does schizophrenia begin to characterize people’s behavior? Why mission statements turn into mere posters?
It took targeted empirical research spanning 200 professionals as respondents, 12 companies and a period of over three years to uncover a number of cogent reasons explaining the phenomenon of organisational schizophrenia.
It took targeted empirical research spanning 200 professionals as respondents, 12 companies and a period of over three years to uncover two fundamental issues at the root of customers’ unmet expectations—policy paradox and lack of a culture of discipline. Working through a number of operational areas, these two defaults create cogent reasons for schizophrenia to hit a company with attendant negative impact on its performance.
Based on the findings of this research, the book Organisational Schizophrenia: Impact on Customer Service Quality, provides a perspective on many fertile grounds which create disconnects between policy and practice. The book makes out a spirited case for the business leaders and managers at various levels of hierarchy to sit up and consciously exercise the rigour of disciplined thought and action across the organisation. A culture of discipline alone can help in filling the widening gaps between intent and execution.
At the root of this phenomenon best described as organizational schizophrenic, are two fundamental issues which must be addressed by the top management of a company up front.
- It is not possible to maximise shareholder value as well as customer satisfaction at the same time. You have to decide upfront: Customer First or Shareholder first.
- Exercise a rigour of culture of discipline throughout the organisation, starting, typically, with the members of the top management.