The boards of two fiercely competitive companies decided to organize a rowing match to challenge each other’s organizational and sporting abilities. The first company was strongly “Theory X” – ruthless, autocratic, zero staff empowerment, etc. The second company was more “Theory Y” – a culture of developing people, devolved responsibility and decision-making.
Race day arrived. The Y company’s boat appeared from the boathouse first, with its crew: eight rowers and a helmsman (the cox). Next followed the X company boat and its crew: eight helmsmen and a single rower.
Not surprisingly the Y company’s boat won an easy victory. The next day the X company board of directors held an inquest with the crew to review what had been learned from the embarrassing defeat, which might be of benefit to the organization, and any future rematch.
After a long and wearing meeting the X company board finally came to their decision. They concluded that the rower should be replaced immediately because clearly he had not listened well enough to the instructions he’d been given.
Talk about an example of how not to manage. This is what happens when a company becomes too large and stops listening to its employees and customers. They run the risk of losing touch with the very people who made them successful in the first place. It’s a perilous position to be in because the larger a company gets, the more challenging it can be to maintain the high standards of quality and service that defined its early days.
Employees and customers feel neglected. When employees feel heard, they take greater ownership of their work and the company’s success, leading to increased productivity and job satisfaction. Customers no longer receive the personalized attention that may have drawn them to the company initially. Customer service can become a series of scripted interactions, lacking empathy and genuine problem-solving.
Employees often have unique insights into the day-to-day operations and can offer perspectives that might not be visible at the management level. Employee input can lead to more informed and effective business strategies. Without it, there is decreased flexibility and a slower response to market changes. Innovation suffers because the bureaucracy of big businesses can stifle creativity, which is often the lifeblood of customer satisfaction.
Internal communication breaks down. Silos develop as departments become isolated, leading to a lack of cohesive strategy and understanding of customer needs. Employes become disengaged and feel like cogs in a large machine, causing customer satisfaction to wane.
Management can become overconfident and complacent. Companies may become so entrenched in their ways that they ignore employee and customer feedback. You can’t rest on your laurels. Past success is no guarantee of future performance, especially if a company stops striving for excellence.
Make no mistake, while large companies run a bigger risk of dehumanizing their employees and customers, that problem is by no means limited by the organization’s size. It can be just as disastrous for smaller companies to push employees aside. Leadership needs to recognize the people who actually do the work and acknowledge their contributions.
To prevent these issues, companies of all sizes should focus on keeping the lines of communication open with their employees, thereby demonstrating respect for their expertise and their role in the company. Employees who feel valued are more likely to remain loyal to the company, reducing turnover. When employees are encouraged to give input, it fosters a collaborative environment where teamwork thrives.
That whole practice then spills over to how customers are viewed. Management needs to treat each customer as if they are their only customer, addressing their needs and listening to their concerns. It is crucial to maintain high standards of quality and service and to look at each customer as an individual, not just a statistic.
When all is said and done, we are all in the people business. As Starbucks founder Howard Schultz famously said, “We are not in the coffee business serving people, we are in the people business serving coffee.”
The people you serve include the people you employ as well as your customers. No matter how big your company grows, never forget what made you grow – listening to your employees and customers and satisfying them. It’s important to find the right balance and ensure that growth does not come at the expense of the core values and quality. They are what made the company successful in the first place!
Mackay’s Moral: A company that listens to its employees and customers can turn their whispers into winning strategies.