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Expose Your Company's Blind Spots

Is your company unintentionally keeping your most senior people from getting the feedback they most need? It can easily happen as an unintended consequence of success. Consider these situations:

Senior executives at car companies drive only the newest models:
For decades, the top executives at America's leading automobile manufacturers always drove models fresh from the factory. Not only that, but these cars were washed, maintained, and looked after by in-company employees. They never experienced quality breakdowns as the cars aged, rust problems, or issues with scheduling service calls at a snarly auto shop. Imagine their surprise at hearing people complain about problems that they don’t even know or think about!

Technology handouts: One of my telecommunications manufacturing clients used to routinely give the latest handsets and toys to its key executives, just before or along with commercial launch of the offers. As a result, these folks never had to go into a phone store, never had to deal with inefficient or even hostile distributors, and never had to compare their offerings with competing products. They only compared their own products to previous versions of their own products. It was only when the company radically changed this policy and forced its folks to go directly through the same channels customers had to use that they realized that their once-unassailable advantages with customers were starting to erode. This in turn prompted significant strategic changes, including relocating major operational centers to different markets and shifting the way customer segmentation was done – all stemming from the insights of direct experience.

The executives can hear, even if you can’t: One of our clients, a mobile telecommunications operator, routinely had its operations staff make sure that the cellular signals in the headquarters office, main travel routes and residential areas inhabited by senior executives were strong, reliable and consistent. Imagine the surprise these executives felt when friends and relations expressed their infuriation with spotty coverage, dropped calls or weak signals -- after all, this never happened to them! Even more astonishingly, the senior people didn’t know that they were experiencing the modern-day equivalent of a “Potemkin Village” – they thought their services were far better than consumers did. This in turn led them to dismiss quality, coverage and service level data that reflected how infuriated consumers were as ‘inaccurate’.

The message? Sometimes, buffering senior people from exposure to ordinary experiences unintentionally gives them a false sense of security with respect to the quality, reliability or convenience of your offerings. This in turn can breed dangerous complacency and a lack of urgency with respect to underlying problems. In best-practice companies, in contrast, there are mechanisms to make sure that direct contact with customers is a part of every executives' normal job.

A better approach. At Amazon.com executives routinely spend time on the phones with customers. At Ikea, a few times a year executives and line-level staff work together in what they call "anti-bureaucracy days." At Continental and Southwest airlines, it would not be unusual for executives to spend time at the ticket counter or handling baggage. Proctor and Gamble executives spend a lot of time following consumers around, watching how they do things, and looking for unmet needs. In a great recent story, Irene Rosenfeld, the CEO of Kraft Foods, was flabbergasted to be offered a drink made of their orange flavored mix, Tang, only to learn (to her discomfort) that in China it is served hot, like tea!

Time spent with customers in real-life situations can give you insight into your own offerings, competitive offerings and the changing marketplace in which you compete. Time buffered from reality can create dangerous blind spots.

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Comments

Dear Mam,

It’s an interesting read.

It’s a truth experienced by many organizations (especially, the big ones), but rarely do they accept / acknowledge and more so, take measures to overcome the situation.

Having said this…. I would like to draw a similar chord in organizations’ internal operations too. Many a cases, this “Potemkin Village” phenomenon is not just limited to customer services and products offerings. One bright example could be the human resource / relationship aspects. Though there might be clear dashboard indicators like remuneration, attrition rate etc, with more and more right brain indicators playing a dominant role in human re-sourcing and relationship management , this “buffering” phenomenon has become more common place and damaging.

It’s not only the departments like human resources, but the senior management who should aggressively get involved to break this buffer shield created, and get into the act getting the actual ‘feel’ of the ground realities. This definitely to make the organization more equipped culturally and procedurally (whistle blowers, informal and involved engagements etc) as well, to overcome the situation.

Thank you.

Warm Regards,
Souparno Bagchi.

- Posted by Souparno Bagchi
July 4, 2008 7:30 AM

its true

- Posted by zanchuk
July 5, 2008 1:57 AM

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About this Author

Rita McGrathColumbia Business School professor Rita McGrath studies innovation, corporate venturing, and entrepreneurship. She is well known for developing practical tools and frameworks to make the innovation process less risky and difficult, and to bring a dose of reality to growth programs. She works extensively with leadership teams in Global 1,000 companies. McGrath has co-authored six Harvard Business Review articles and two books: The Entrepreneurial Mindset (2000) and MarketBusters: 40 Strategic Moves that Drive Exceptional Business Growth (2005). .