Mary Schmidt Marketing Troubleshooter

2008 Update: The following is a 2005 post. I’ve since revamped my web site - and you can sign up for my new eletter over there in the top left column. One topic, once a month. No other email from me, ever.

From my monthly e-letter. Trying something new - and breaking my own blogging rule of keeping posts to no more than two paragraphs. But, only about a page of text.

Tip: “Managing People is a Marketing Problem.” - Peter Drucker

Trap: Thinking “being nice” is just a “nice to have” in business.

If you’ve got problems with marketing, you’ve got business issues. All too often, companies forget that people implement plans, complete action lists - and sell to other people. If employees don’t feel valued, they’re sure not going to value customers.

(Ex: Airline attendants (from Seth Godin) -”We/I don’t care. I don’t have to.”)

Maybe happiness doesn’t always directly relate to productivity but unhappy people aren’t going to give you their all (and may even look for ways to sabotage your business.)

Why do you think customer service is often so appalling? It’s almost never because the service rep really wants to be rude and/or incompetent. They’ve been set up by their employers. Measurement as a means of punishment. Little to no training. Draconian policies and procedures. Systems designed for service avoidance. Soul-deadening cubicle farms with Dawn of the Dead lighting. Compensation based on job grade versus merit (”I’m sorry Joan, even though you saved that big account, we can only give you a 1% increase this year as you’re already in the top quartile for your grade.”) Any of these sound familiar? Any of these the reason you decided to start your own business? I’m betting we can all relate to at least one of the above.

Treating people well isn’t just a “nice thing to do” - there’s a very real ROI. Here are just two data points:

1. In a study of 3,000 companies, the University of Pennsylvania found that spending 10% of revenue on capital improvements boosts productivity by 3.9%, but a similar investment in developing human capital increases productivity by 8.5% — more than double the effect.

2. In a 2004 study, Market & Opinion Research International (MORI) quantified the role that employees play in corporate social responsibility (CSR) programs. The study found that 73 percent of people are more likely to believe the word of an employee rather than a company brochure or report about that company’s contribution to society and theenvironment.

Action Points:

Treat all business as personal.

It really is. Think about it. When someone says “It’s nothing personal.” - it’s usually right after they’ve stuck the knife in as deep as it’ll go. And, there’s no such thing as a non-emotional decision.

Sure, as one of my old mentors used to say, “We’re not the Fresh Air Fund.” However, she also believed that business focus didn’t preclude acting humanely in the workplace, and as a result, any of her group would have taken a bullet for her - and willingly worked insanely long hours. (And, people were constantly trying to transfer into what they called “that crazy group.”)

One Size Doesn’t Fit All. Quit trying to standardize everything from work hours to vacation accruals. You can be fair and still flexible. Considerate and still profitable. For example, flex time isn’t just one of those “Mommy track things” - it’s a great way to get and keep top-notch people. In today’s Free Agent world, the best and brightest can always find something else to make money - and if they can’t find it, they’ll create it.

Right People in the Right Place. Just because someone is smart and/or willing doesn’t mean they’re right for the job. For example, individual contributors - while great at getting things done - usually shouldn’t be promoted to managing people. It’s an unnatural act for them. Scientists can’t do marketing. A “man the barricades” social activist will be miserable as the non-profit Executive Director (all that paper, all those mundane everyday tasks.) And so on. Don’t set up a great employee (or yourself) for failure.

You Can’t Delegate “Thank You.” If you’re the boss, it means more coming from you. As Carl Sewell (Sewell Corp.) notes, “If you thank your customers, you should also thank the folks who do the work.”

The Bottom Line: When it comes to working with people (note I’m not saying “Managing people.”) - the Golden Rule really isn’t “He who has the gold - rules.”

Flavor of the Month management theories come and go. Respect and integrity never go out of style.