Refocusing on service while cutting costs. Bealll/?

How many times have you read that headline? It sounds like an oxymoron to me, since the more I see costs being cut, the worse service seems to become. I have no problem with innovation-in fact, there is a complete lack of innovation in most companies-but it seems that all companies focus on today ls cutting costs and, hence, more often than not the level of service declines.

We called the telephone company yesterday and, of course, could not speak to a live operator. We duly left our message only to get an electronic message back the next day that the service we required was "outsourced"(the magical term for "we cannot be bothered to do this anymore, so we have hired someone else cheaper to do it"). Now outsourcing can and does at times work, but in many cases it distances you further and further from the customer.

I read today that one airline plans to refocus on service while cutting costs. Does that mean that the piece of shoe leather I had been getting for lunch, which changed to a small packet of pretzels, might be reinstated? Or that wonderful Bistro Bag might return? Or, I might get my pillow back? I understand the issues the airline industry is facing, but alienating customers even further seems like a dreadful mistake to me to regain business.

Every month, I call many companies in this industry. Before we get complacent, would you like to know how many voice mail trees I end up going round the maze on? How many times I have to contact the operator anyway or wait on hold for several minutes before an operator might follow up to find why I am still on hold? I wonder how many new or current customers are as patient. Do you want to know the tattle tale of what customers tell me about doing business with certain of our clients in this industry?

Today, corporate leaders at all levels are making decisions on what is right to do rather than what makes the best business sense. Priorities such as serving customers and outshining the competition are taking a back seat. At a time when corporate correctness is taking precedence, too many companies worry about their image over exploiting their competitive product and other sales advantages. Those that stay strategically focused on what makes them better than their competition will win out in the end.

Far too many companies fear growth. If ever you are brave enough, particularly in a large corporation, of going for the gold, I guarantee your plan will be almost certainly knocked down. Why? Because no one wants to take bold risks anymore. Managers fear they will be punished more than rewarded. Now while I firmly believe that doing business today is more complex than ever before due to globalization, technology changes, information availability, corporate consolidations, and ever increasing complexity in the production and supply chain, there is no doubt in my mind that due to the safety-first policy of so many companies, there are ways to increase and improve on results that not only increase sales and profits but also improve customer loyalty and retention.