{"id":152,"date":"2017-03-16T14:59:52","date_gmt":"2017-03-16T14:59:52","guid":{"rendered":"http:\/\/www.boulden.net\/blog\/?p=152"},"modified":"2023-08-29T13:45:32","modified_gmt":"2023-08-29T12:45:32","slug":"customer-focus-the-secret-ingredient-in-great-project-management","status":"publish","type":"post","link":"https:\/\/www.boulden.net\/blog\/customer-focus-the-secret-ingredient-in-great-project-management\/","title":{"rendered":"Customer Focus: the ‘secret ingredient’ in great project management"},"content":{"rendered":"
\u201cPeople don’t care how much you know until they know how much you care\u201d
\nTheodore Roosevelt<\/h6>\n

\"customer
\nExcellent Project Managers need to be technically capable, but being good at setting goals; planning; reacting to unexpected events etc. isn\u2019t the whole story by any manner or means. Hard work on a project counts for little if the customer (or stakeholder) feels neglected, ignored or disrespected. So the \u2018secret ingredient\u2019 to project success is customer service excellence, and that\u2019s true irrespective of whether the \u2018customer\u2019 is an internal sponsor or an external client.<\/p>\n

<\/i><\/a>Tell me about the money<\/h2>\n

Bain & Company<\/em> research tells us that a customer is 4 times more likely to defect to a competitor if the problem is service-related, rather than price- or product-related.<\/p>\n

Marketing Metrics<\/em> reports that the probability of selling to an existing customer is 60 \u2013 70%; while the probability of selling to a new prospect is 5-20%.<\/p>\n

And a 2% increase in customer retention has the same effect as decreasing costs by 10% (Leading on the Edge of Chaos<\/strong>, Emmet Murphy & Mark Murphy<\/em>.)<\/p>\n

So it\u2019s obvious why companies in general, and Project Managers in particular, need to take this topic seriously.<\/p>\n

Furthermore, in many organisations, Project Managers are pivotal in driving a company\u2019s Net Promoter Score (NPS). The NPS, which was created by Fred Reichheld, a Senior Fellow at Bain & Co, consists of just one question.<\/p>\n

\u201cOn a 0 to 10 scale (10 being the highest) how likely would you be to recommend _______ to a colleague or a friend?\u201d<\/em><\/p>\n

The single score comes from taking the percentage of 10\u2019s and 9\u2019s (promoters) and subtracting them from the percentage of 6\u2019s and below (detractors). The 7\u2019s and 8\u2019s are considered passives and therefore are not counted. Bain & co suggests that an NPS leader will out grow its competitors by a factor of two.<\/p>\n

Thus, the NPS score provides a \u2018trigger\u2019 to really<\/em> focus on the customer and that\u2019s where the skills and techniques of customer focus can start to make a positive contribution to building strong, lasting relationships.<\/p>\n

So how can Project Managers deliver great customer focus to go along with good technical ability…<\/p>\n

<\/i><\/a>Owning the relationship<\/h2>\n

Part of the skill of being excellent at Customer Focus is the capacity to be able to anticipate the customer\u2019s needs, and this means taking the time to think through how to deal with their concerns in advance of any meeting. Clearly, if you can accurately identify what ‘wins’ the customer needs (e.g. a quick delivery) then you can shape arguments to take account of those factors. Also, thorough planning is important because any suggestions that are supported by hard evidence are more likely to be accepted by the customer than those that are not backed up with hard data. A number of techniques come into play in this area, but the most fundamental is arguably \u201cStakeholder Analysis\u201d.<\/p>\n

Stakeholder Analysis is about (a) identifying and then (b) influencing the key people involved in any given project, deal or decision. Aubrey L. Mendelow, Kent State University, Ohio 1991, suggested allocating the people involved in making decisions about an \u2018issue\u2019 to one of 4 quadrants; based on a graph that plots Power to make decisions against Interest in the topic in question.<\/p>\n

So there are four \u2018classes\u2019 of people to be identified and influenced…<\/p>\n

    \n
  1. High Power, High Interest<\/strong>: people that need to be given frequent updates and consulted in advance of any action being taken. Plans may have to be modified, in light of their feedback, in order to gain\/keep their support.<\/li>\n
  2. High Power, Low Interest<\/strong>: this group need just enough communication to be kept \u2018in the loop\u2019, so they\u2019re not \u2018surprised\u2019 by how the project is going.<\/li>\n
  3. Low Power, High Interest<\/strong>: these people need to be kept adequately informed, and canvassed to ensure that any useful ideas they have are captured and acted upon.<\/li>\n
  4. Low Power, Low Interest<\/strong>: monitor these people and provide high level updates, but do not bore them with excessive communication.<\/li>\n<\/ol>\n

    Murray-Webster and Simon 2005, suggested adding a third dimension \u2018Attitude\u2019 for each person (or group) by adding a tick, cross, coloured dot or emoticon to highlight their views about the issue, project or deal in question. Usually one of three possible attitudes is allocated to each person, they are \u2013 Supportive; Neutral; or Obstructive.<\/p>\n

    \"\"<\/figure>\n

    <\/i><\/a>Solving Problems & Building Trust<\/h2>\n

    Stakeholders (both internal staff and external customers) understand that issues will arise on projects and that there will be \u2018challenges\u2019 that need to be solved. So when technical errors or setbacks occur \u2018customers\u2019 want those problems solved and, if they are solved in a timely manner, then (usually) all is well. But where communication is poor they get angry and start to complain e.g. \u2018trust\u2019 is lost when calls aren\u2019t returned promptly, action plans aren\u2019t distributed, or Project Managers seem uncertain about what to do etc. So strong relationships are built when you show that you really do care about what the customer is experiencing, and that you\u2019re willing to take prompt action to address their needs.<\/p>\n

    Research by Dr Janet Curran of Huthwaite Group identified the key factors that lead to a positive experience for customers who have concerns with how a service is being delivered. The research was based on managing relationships with external customers, but the same findings would surely hold true for internal clients. They include:<\/p>\n

      \n
    1. Positive First Impressions<\/em> \u2013 looking interested and engaged; taking ownership of the \u2018problem\u2019 by saying \u201cI\u201d not \u201cWe\u201d or \u201cYou\u201d<\/li>\n
    2. Defusing Emotion<\/em> \u2013 using empathy and a sincere apology to help calm angry customers down<\/li>\n
    3. Aiming for a Win\/Win outcome<\/em> \u2013 really listening to what their concerns are; getting a solution that makes sense for both sides (not just the customer); making sure that the \u2018process\u2019 for getting a solution is agreed by both parties.<\/li>\n
    4. Prompt Follow Up<\/em> \u2013 aligning the internal resources needed to deliver the agreed \u2018solution\u2019; keeping the customer up to date on the progress being made.<\/li>\n<\/ol>\n

      <\/i><\/a>Reciprocity & Frugal Wows<\/h2>\n

      Dr. Robert Caldini in his well known book on Influence explains that \u201cReciprocity\u201d is: the in-built inclination to feel grateful for favours and to have a powerful psychological urge to \u201cpay them back,\u201d no matter how small they are.<\/p>\n

      The \u2018reciprocity\u2019 effect can be used to develop good client relationships in a number of ways. One application of this effect simply involves making a small gesture that will have a positive impact on how the customer perceives you. (What are sometimes called “frugal wows”). The small gestures should, of course, be meaningful to the customer and appropriate to the situation; they are especially powerful if they are unexpected. Also (and unsurprisingly) the research shows that the more \u2018personalised\u2019 or \u2018tailored\u2019 the \u2018gesture\u2019 to the customer\u2019s situation, the stronger the impression it made on them.<\/p>\n

      So in a high street shop a \u2018frugal wow\u2019 might be as simple as making eye contact and smiling to greet the customer, or offering to help them carry their goods to their car if they\u2019ve made a big purchase. In the corporate setting it can be that the Project Manager takes the time to reserve a car parking space for a client when they make a site visit, or maybe arranging some sightseeing if people have travelled from overseas, or perhaps providing a report in the customer\u2019s mother tongue, or organising for an interpreter to be present at a key meeting, or sending them an article based on a conversation you\u2019ve had etc.<\/p>\n

      One word of warning here; \u2018frugal wows\u2019 work when you do what is expected of you, reliably, and are sincere about wanting to do what\u2019s best for customers. It\u2019s the cherry on top of the cake. They won\u2019t help if you\u2019re getting basic things wrong. By way of a small personal example, I once had someone in reception at a hotel ask me brightly if everything was alright with my stay, just after I had complained to her about something \u2013 autopilot service mantra!<\/p>\n

      <\/i><\/a>Facts tell but stories \u2018sell\u2019<\/h2>\n

      If a Project Manager wants to persuade a \u2018stakeholder\u2019 to agree to something, one of the most effective strategies they can adopt is to tell a \u2018story\u2019. Green, Melanie C.; Brock, Timothy C. (Journal of Personality and Social Psychology, Nov 2000) found that a good story \u2018pulls\u2019 people into the narrative and makes them less aware that they are being influenced, reduces skepticism and counter arguing. So telling an anecdote about the lead up to a problem and the development of a solution is much more effective (from an influencing perspective) than just giving someone the straight facts.<\/p>\n

      So effective Project Managers will give the \u2018history\u2019 of the idea and not just the solution they propose e.g. \u201cwe first became aware there was an issue about six weeks ago when we saw (y) happening…so we started by exploring the options…and as a result of that work we recommend that we implement option (x)\u201d<\/em><\/p>\n

      Good stories (according to research by Mazzocco & Green, Ohio State University) are…<\/p>\n

        \n
      1. Well delivered (good pace and clear voice)<\/li>\n
      2. Use imagery (describes the scene in terms of what you\u2019d see, hear, and feel if you were there)<\/li>\n
      3. Realistic (content is believable)<\/li>\n
      4. Logically structured and \u2018concise\u2019<\/li>\n
      5. Tailored to the audience\u2019s level of interest and understanding<\/li>\n<\/ol>\n

        <\/i><\/a>So what\u2019s next???<\/h2>\n

        Reflect on how you handle your communication with project stakeholders at present. Do you think carefully about what they want and need from you? Do you have a robust methodology for handling meetings and providing updates? What improvements could you make?<\/p>\n

        Reading<\/h3>\n

        Practical People Engagement: Leading Change Through the Power of Relationships<\/strong>, L Mayfield<\/em> P (Elbereth Publishing)<\/p>\n

        Online<\/h3>\n

        Watch this twelve minute YouTube clip<\/a> giving an overview of 3 aspects of delivering a great story based on analysing the work of US comedian Kevin Hart. Of course the behaviours shown are \u2018stronger\u2019 than you\u2019d use in the corporate setting, but the principles are valid and clearly demonstrated.<\/p>\n

        Courses<\/h3>\n

        Consider sending your Project Managers on our two-day, \u2018Customer Focus<\/a>\u2019 course (which looks in detail at how to build great client relationships and has been run over 50 times, across three continents.)<\/p>\n

        Coaching<\/h3>\n

        If you are a senior executive maybe a \u2018one to one\u2019 Executive Coaching Session<\/a> would be a useful option for helping you improve your relationship building skills.<\/p>\n

        And to end, an insightful and often reproduced quote…<\/p>\n

        \u201cThe customer is not someone to argue with or match wits against\u2014he is a person who brings us his wants. If we have sufficient imagination we will endeavor to handle them profitably to him and to ourselves.\u201d
        \nKenneth B. Elliott (who was the Vice President in Charge of Sales for The Studebaker Corporation, in an article published in 1941)<\/h6>\n","protected":false},"excerpt":{"rendered":"

        \u201cPeople don’t care how much you know until they know how much you care\u201d Theodore Roosevelt Excellent Project Managers need to be technically …<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[2],"tags":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.boulden.net\/blog\/wp-json\/wp\/v2\/posts\/152"}],"collection":[{"href":"https:\/\/www.boulden.net\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.boulden.net\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.boulden.net\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.boulden.net\/blog\/wp-json\/wp\/v2\/comments?post=152"}],"version-history":[{"count":6,"href":"https:\/\/www.boulden.net\/blog\/wp-json\/wp\/v2\/posts\/152\/revisions"}],"predecessor-version":[{"id":461,"href":"https:\/\/www.boulden.net\/blog\/wp-json\/wp\/v2\/posts\/152\/revisions\/461"}],"wp:attachment":[{"href":"https:\/\/www.boulden.net\/blog\/wp-json\/wp\/v2\/media?parent=152"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.boulden.net\/blog\/wp-json\/wp\/v2\/categories?post=152"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.boulden.net\/blog\/wp-json\/wp\/v2\/tags?post=152"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}