Wednesday, May 16, 2007

Managing a Customer Service Icon: Thoughts on Leadership from Mr. Walsh of Spoil 'em Rotten! by Jane & Ted Coiné


A fish stinks from the head. Whenever you receive bad customer service, look all the way to the CEO. It’s his fault.

This is Bob Walsh’s favorite saying about leadership …and he should know! Mr. Walsh has been employing and managing others for over forty years. He knows what it takes to run a successful customer service organization: a leader who “gets it.”

Leaders, if you can’t find good help these days, it isn’t the talent pool: five-star companies are hiring from the same population you are. Instead, look in the mirror.


Happy employees = happy customers = profits …which makes for very happy stockholders!

In Spoil ’em Rotten! Candace and her mentor Mr. Walsh discuss two studies, one by Enterprise Rent-A-Car, the other by PETCO, on what made for the most profitable branches. Enterprise learned that the branches with the happiest customers were the most profitable. PETCO learned the same, but they looked deeper and found that the stores with the happiest customers had the happiest employees, too. Which takes us to…


Follow the Platinum Rule: treat your employees the way you want them to treat your customers.

How do you want your people to treat your customers? With respect? With patience? Do you want them to treat your customers like adults? You would never want your employees bossing your customers around, would you? Losing their cool? Making their lives miserable?

…Then why would you ever do that to your employees? Treat them like mature, responsible adults who come to work eager to do a great job, dying to spoil your customers rotten, and guess what? They will be!


Get your hands dirty.

Mr. Walsh owns five grocery stores; he employs over one thousand people. Yet one of his all-time favorite activities is bagging groceries. He also stocks shelves, cuts fish, and anything else that he asks his associates to do. Why does a man of his stature "lower" himself? Ask Mr. Walsh, and he’ll tell you that kind of thinking is a one-way ticket to the poor house. He’s got a great story about that very thing from the early days.

Besides, jumping into the fray is good P.R. When there’s a line, which can happen even at Walsh’s, customers want to blame management. But if they can see top managers rolling up their sleeves to help, there goes that unloved feeling. The honchos do care!


Thank your associates – often and sincerely.

Candace points out to Mr. Walsh that he’s always thinking his employees for doing things that he asks them to. Why does he ask, instead of tell, and why does he thank them for doing their jobs? After all, they have no choice but to comply: they’re working for him!

Mr. Walsh explains, “They don’t work for me. They work for their families. I never forget that. And as for my asking and thanking them? A boss who bosses his people around is ineffective. They’ll do what you ask of them. So why not be pleasant?”


Saving pennies on staffing will cost you dollars.

Mr. Walsh went against all his managers' advice when he decided to put more clerks behind the deli counter. “We’ll lose our shirts!” they told him. “Payroll will eat up all our profits!” The truth was exactly the opposite. Payroll did go up a bit, but profits soared, as customers flocked to Walsh’s to avoid the lines of other stores. The competitor across the street actually closed their store shortly after this bold move.


Institute The Nordstrom Code: "Use good judgment in all situations. There will be no additional rules."

Many employers would say of this rule, “If we instituted this code at our company, we’d be out of business in a week!” Maybe those employers should consider the line about fish heads.

Treat your employees like children, and guess how they’ll act? Instead, why not expect them to be the employees you want them to be? They just might surprise you.


Make your company a H.I.T. Hire for attitude. Inspire through pride. Train in skills.

Mr. Walsh has always hired employees based on their attitudes, not their resumes. With their help, he crafted a magical company that people are passionately proud of. That creates a feedback loop of positive results: great people made a great company; a great company attracts terrific people, and on it goes. Training those motivated, inspired people in the skills they need for their particular jobs? That’s the easy part.