Idomeneo » Newsletter – August, 2011
Newsletter – August, 2011
In this Issue:
- A Message From The CEO
- What Is That Smell?!
- Alerts
- Did You Know
- Site To See
- The Reading Corner
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A Message From The CEO
I went to my favorite cleaners yesterday to pick up my dry cleaning, only to find that they had shredded the fabric of one of my blouses. Let the fit begin.
Things sometime happen, we have all been on the other end of a wronged/damaged customer. But the old adage is true, it’s not what happens, it’s how you handle it that matters.
There, attached to the top of my formerly beautiful blouse, was a note that read “Rejected, material did not withstand D/C”, signed by the owner (we’ll call her “Jane”, because I am exceptionally cranky about this whole ordeal, I feel obligated to change all the names in this story). I am very friendly with Jane, we have had long, involved discussions over the 10 or so years I have made my weekly sojourn to her shop. In fact, we have ‘promised’ to get together for lunch sometime. So, I think I am safe in stating that we are, while not close friends, certainly more than acquaintances. We laugh together, talk about the ups and downs of running a business, and generally have quite a pleasant time together.
So, you could say I was more than miffed that she did not call me to tell me of a problem, just left a note for me to find on my decimated garment. Oh yes, when I say the fabric is shredded, I don’t mean a small tear here and there, I mean it looks like Wolverine was having a bad day with all things teal. Both sleeves are literally slashed crosswise, in 3 or 4 parallel lines.
Bad Call # 1 – not contacting the customer when you identified the problem.
Bad Call # 2 – no solution suggested upon identification of the problem,.
When I spoke to the young lady that was helping me, Mary, she said she would have to call over her supervisor Louise, since Jane wasn’t in at the moment. Mary went looking for Louise, after 5 mins or so, she came back and said Louise would be right over. Mary and I enjoyed an awkward 10 mins waiting for Louise, during which time Mary again left to find Louise, only to return empty handed. When Louise did appear – to say her manner was indifferent would be an understatement – she read the note and said, “Well, yes – looks like the material failed.” “What can we do about this situation”, I asked. “Oh, you’ll have to talk to the owner if you want anything”, Louise replied – all the while looking not at me, the person to whom she was speaking, but toward the front door and other customers.
Bad Call # 3 – Louise is not well suited to customer care.
Bad Call # 4 – Floor manager/supervisor is not empowered to deal with what I am certain is not an unheard of occurrence in the dry cleaning business.
Louise then left. Mary looked at me haplessly, and said (in a tone I can only describe as exasperated), “Why did she leave, she needs to take this off the bill.” She then set off again, in search of Louise to get the bill adjusted.
Bad Call # 5 – Louise is not well suited to managing.
Bad Call # 6 – see Bad Call # 3
Mary reappeared, and proceeded to ring me up. During that process she said the following – each followed by my at first indulgent, and ultimately grateful grunt of agreement:
“I understand how it is.” “I’m really sorry.” “You don’t expect your clothes to come back damaged.” “And sometimes you can’t just replace something because you have had it for a while or got it from someplace specific.” “You wear certain things with certain other things, and now you have to figure out what to substitute.”
While some could argue that Mary’s statements could be seen as undercutting Louise and/or running counter to the business’s position, those observations from Mary took me from a 10.9 on the Richter scale down to a 4.5. As I was thinking back on the situation later, I realized that the most effective customer care action – perhaps the only customer care action – that took place during that afternoon was that Mary made me feel like I was heard, like she understood and had empathy for my place in our little drama.
Mary immediately turned down the flame on my anger to a simmer. And it was just because I felt she UNDERSTOOD my position. She couldn’t do anything about fixing the situation, but she could, and did, make me feel like someone in that business ‘got’ how I felt, and my frustration.
Naturally the question comes to mind – when things don’t go as planned (you can count on death, taxes, and that things will not always go as planned), in addition to having a solution, do we show the customer/client empathy? Do we show them that we understand? Do we let them know they are heard? That goes a long way toward tamping down their anger, and opening them up to working with you on a reasonable solution.
Businesses are peopled by humans, and the natural human response is to defend your position. In your head, you are thinking, “the blouse was probably old”, “it’s not our fault the fabric couldn’t stand up to the dry cleaning process”. But, as a business, adopting a defensive posture only puts you in more conflict with your customer. Yes, there are times you will not be able to make the customer happy, the solution you are willing to offer is not sufficient for the customer. But even in those times, making the customer feel heard and understood is the difference between cable company customer care and Four Seasons customer care.
I don’t yet have a finish to my little dry cleaning saga, I left a note for Jane to give me a call. I am eagerly hoping Jane’s responses will be more Maryish and little or no Louiseish; either way, it will go a long way toward determining where I take my future business.
Vicky Brown
CEO
Idomeneo Enterprises, Inc.
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What Is That Smell?!
If you have been in a leadership role for any significant period of time, you have heard some version of those dreaded words – “Sally smells bad.”
Now what are you going to do. Maybe you should just tell Sally to be sure to take a shower before coming to work; or maybe you can give her some perfume and hope she gets the hint. It’s an awful conversation to contemplate, and brings up all the worst confrontation scenarios you can imagine. Sally cries, or screams, or is mortified or…chose one or all of the above. How about just move Sally to an isolated work area so other employees don’t have to deal with the issue.
Take care – you may find yourself inadvertently discriminating against Sally, or violating her rights in other ways.
The simple fact is (provided you have verified that indeed Sally has an odor issue), you have no idea as to the root cause of Sally’s smell. While it could be as simple as more rigorous attention to the details of thoroughly washing; it could be related to an illness, or medication, or a religious practice. While speaking with Sally, you must be sensitive to all possibilities. And yes, you do have to speak with Sally, you don’t have the luxury of hoping the situation takes care of itself. You have to keep in mind that the offended employee(s) have rights too. They have the right to work in a good environment.
You need facts, so be sure to do a thorough investigation, including getting details from the individual that brought the problem to your attention: when does it happen, is it a certain time of day; where does it happen, what is the proximity range; has anyone approached Sally. Also, talk to others involved and, if possible, put yourself in the environment.
Provided it is determined there is an issue, your approach with Sally must be carefully modulated. Select an absolutely private place, simply and clearly explain that there is an odor coming from her work area, and it is causing some discomfort to her co-workers. Don’t make assumptions as to the cause, simply let Sally know that you would like her to do everything in her power to take care of the issue.
If Sally replies that the issue is related to a disability or medically related problem, you may find the situation falls under the Americans with Disabilities Act. Thank Sally for the information, inform her you will get back to her, and call your labor attorney immediately. If your company (more than 15 employees), and this situation, falls under ADA regulations, you are possibly about to enter accommodation discussions with Sally, and you should not undertake that action until you have guidance from your counsel.
If Sally doesn’t mention a disability or medically related issue, don’t make assumptions and/or bring up the possibility yourself. Your role is to notify Sally of the issue, explain that it has to be corrected, and later to verify that the issue is resolved. Also, keep in mind, if the issue is based in cultural practices, the better course of action might be to provide some diversity training for your employees. And, always ensure that Sally isn’t harassed or ostracized by her co-workers.
Every situation is different, and difficult. But there are some general – Don’t Every Do/Say – points:
“You should change your diet”
“How often do you bathe”
“You smell like curry”
“It may be because you are getting old”
All of these statements make assumptions as to the cause, and some are downright offensive.
Remember, the goal is to resolve the issue for Sally’s co-workers, while respecting Sally’s dignity and allowing her the space to correct the problem.
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Alerts
IRS Alert
Effective July 1, 2011 – the IRS has increased the mileage rate to 55.5 cents per mile.
Overtime After 8 Hours? But I Work In New York!
The California Supreme Court has decided (Sullivan vs. Oracle). Employees of California based companies, living and working in other states, are subject to California’s overtime rules when they are working in California.
Example:
Brenda is the Executive Assistant to Rob, the Sr. VP of Idomeneo’s New York office. Rob is coming to the LA office for a 2 week executive strategy meeting and he is bringing Brenda along on the trip.
Because Brenda is eligible for overtime (non-exempt), and Idomeneo is a California based company, while Brenda is working in LA, she is subject to California overtime rules. If Brenda works more than 8 hours in a day, she is eligible for overtime. Even though Brenda’s home worksite is New York, and New York does not observe daily overtime rules, because Brenda is working in California, her overtime is subject to California overtime rules.
Calculate the payroll for visiting employees carefully during their stay in the Golden State.
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Did You Know
Last month we explored insurance related to being an employer. Equally, or in some cases more, important are insurance policies related to the business itself. There are a myriad of policies to cover everything from operational mistakes to business interruption. A few of those coverages are listed below:
Business Owners Policy (BOP)
What is it?
Insurance companies selling business insurance offer policies that combine protection from all major property and liability risks in one package (they also sell coverages separately). Small and mid-sized business often purchase a BOP to cover Property Insurance (building and company owned contents); Business Interruption Insurance (covers the loss of income resulting from fire or other catastrophe that disrupts the operation of the business); Liability protection (protection should a customer become injured while visiting your place of business, or by the use of your product).
Larger companies may choose to purchase each of these insurance elements as separate policies.
Professional Liability
(Also called Errors and Omissions)
What is it?
Protects advice and service businesses against financial losses from lawsuits filed against them by their clients. Note: differs from the Liability protection included in the standard BOP.
Non Hired Auto
What is it?
Covers damages if there is an accident with a non company owned vehicle. If any employee runs a company errand, and gets in an accident – this coverage would apply.
Commercial Auto
What is it?
Auto insurance for company owned vehicles.
Business Interruption Insurance
What is it?
Compensates the business for lost income if the company has to shut down due to disaster-related damage that is covered under the policy. Covers potential profits, operating expenses. Generally added to property insurance or included in a packaged policy.
Key Management Insurance
What is it?
This is basically a life insurance policy on a Key employee, and the death benefit is paid to the company. This coverage allows the company to receive compensation during the period it takes to replace the contribution of a Key employee. The policy is generally owned by, and premiums are paid by, the company.
Directors and Officers Insurance
What is it?
Insurance that covers damages or defense costs in the event that while acting in the capacity as directors and/or officers of the organization, a director or officer is sued.
Employment Practices Liability Insurance (EPLI)
What is it?
EPLI covers businesses against claims by workers that their legal rights as an employee have been violated, such as sexual harassment, discrimination, wrongful termination, breach of employment contract, wrongful discipline. EPLI will generally cover the costs associated with defense, judgments and settlements.
Employee Benefits Liability
What is it?
Typically a component of fiduciary liability coverage, this insurance covers claims involving administrative errors pertaining to pension and benefit plans.
Pricing on the above policies are determined by a number of factors, including in some cases, revenue. Contact your Commercial Insurance Broker for quotes, to obtain coverage, and to discuss additional coverage your business may require.
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Site To See
You may already know about SurveyMonkey – it is an oldie, but a goodie. However, I was recently surprised by a number of CEO’s that had never heard of this little gem.
The world’s leading provider of web-based survey solutions, SurveyMonkey is the go to application for Market Research, Event Planning, Customer Feedback, Product Planning and Education/Training. In short – if you need input from a group of people, SurveyMonkey is the app for you.
Plans range from Free to $65 per month.
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Reading Corner
Multipliers: How the Best Leaders Make Everyone Smarter
Liz Wiseman with Greg Mckeown
There are two types of leaders: Multipliers and Diminishers. Multipliers make you smarter and more accomplished than you thought possible – Diminishers are an intelligence suck. How can you get two so disparate outcomes from the same individual – it all has to do with how the leader leads.
Dying to find out which you are, and how to move from one to the other? Pick up Multipliers.
