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JOHN TSCHOHL SPEAKING

Service Quality Institute
9201 E. Bloomington Freeway
Minneapolis, MN 55420
952-884-3311
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Empowerment: The Key to Customer Service
EMPOWERMENT: THE KEY TO CUSTOMER SERVICE
Empowering employees gives business a competitive edge
Few will argue that providing exceptional customer service gives
a business an edge over its competitors. What many employers don't realize,
however, is that in order to provide superior customer service they must
have an empowered workforce.
"Employee empowerment is the most difficult element of
customer service you will try to implement," says John Tschohl, founder
and president of Minneapolis-based Service Quality Institute and author
of several books, including Achieving Excellence Through Customer Service.
"My definition of empowerment is an employee who can do whatever he has
to do on the spot to take care of a customer to that customer's satisfaction--not
to the company's satisfaction. If the customer doesn't win, the company
loses."
While many employers talk about empowerment, few actually
put it into practice. Too often, says Tschohl, they don't really understand
what empowerment is. "To many managers," he says, "empowerment is giving
employees the authority to make a decision to take care of the customer--as
long as the action they take follows the rules, policies, and procedures
of the organization, which means there actually is no empowerment. True
empowerment means employees can bend and break the rules to do whatever
they have to do to take care of the customer."
There are limits, however. For example, empowerment doesn't
mean that sales people can indiscriminately slash prices to retain a customer.
What it does mean is that employees can take the initiative in solving
customers' problems so that they will continue to do business with the
company.
Jan Carlzon, former president of Scandinavian Airlines
(SAS), has said that one of the greatest fears executives have is that
the employees will "give away the store." Says Tschohl, "What the worst
thing that can happen: You're going to get an overly happy customer?"
At Disney World, if a supervisor sees a front-line person
"giving away the store, he'll usually wait and talk it over with him later,"
says James Poisant, former manager of business seminars. "It's okay if
a guest gets away with something. The alternative is that we could be wrong,
and that could cost us a fortune. An aggrieved guest would tell everyone
he knows that Disney is cheap. Occasionally we'll take a hit, but that's
okay."
According to Tschohl, most businesses today operate under
these myths:
Don't trust the customer. "Many executives think
that the customer is out to take advantage of a business in any way possible,"
says Tschohl. "Consequently, they develop rules, policies, and procedures
to ensure that doesn't happen."
Don't trust front-line employees. "Most executives
have very little confidence in their front-line employees," Tschohl says.
"They think that, if they are paying someone a minimum wage, they couldn't
possibly trust that person to make a decision without the customer taking
advantage of him."
Empowerment will diminish or eliminate the role of
middle managers. "Many middle managers present an obstacle to employee
empowerment, fearing that it will lessen their control or, eventually,
eliminate the need for their positions," Tschohl says. "With empowered
employees, middle managers have a lot less control, but that isn't necessarily
a negative. Time spent dealing with decisions that can effectively be made
by a front-line employee can now be spent dealing with other issues."
Employees should fear empowerment. Why? "Because,"
says Tschohl, "to make empowered decisions means taking risks. When making
a decision, the greatest concern for many employees is that they will be
reprimanded --or worse, fired--for making what management sees as a bad
decision. Employees should know they won't be fired if they make a mistake
and that it's okay to make mistakes in the process of working to win customer
satisfaction."
Executives must excise these myths from their organizations,
if empowerment is to work and their businesses are to prosper and succeed.
An organization's mission, says Tschohl, should be to take care of the
customer. In order to do so, employees must be trained in customer service
and be empowered to provide exceptional service.
On a recent trip to Cancun, Mexico, Tschohl was a keynote
speaker at a conference at the hotel at which he, and 150 participants,
were staying. When Tschohl asked an employee at the front desk if she could
upgrade his room, she told him she had no authority to do that without
charging him an extra $25 per day. If she waived that fee, she said, she
would have to pay it. The manager told Tschohl that the hotel's employees
are empowered to make decisions, as long as they fall within the organization's
policies.
"That," says Tschohl, "is not empowerment. This organization
fails to see that empowerment is a powerful tool that can give it a competitive
edge. It's difficult to get employees to use empowerment, if their employers
and managers aren't using it."
Tschohl cites Disney World as the epitome of customer
service and empowerment. "Empowerment is a religion there," he says. "Employees
are thoroughly trained and then told that they have the authority to do
whatever is necessary to deal with problems on the spot in order to make
customers happy. In fact, management interference is discouraged."
The Disney philosophy is reflected in a statement that
every organization in American should frame and mount on the board room
wall: Management must not only support the front line, but it must trust
it as well. "Disney World believes that front-line employees should be
the first, and the last, contact for customers," says Tschohl.
Front-line employees must have authority to respond to
the needs and problems of individual customers with speed and courtesy.
An example of exceptional customer service is L. L. Bean, Inc. One of its
employees actually drove 500 miles from Maine to New York to deliver a
canoe to a customer who was leaving on a trip.
"Employers need to support and reinforce empowered action
by their employees," says Tschohl. "They need to celebrate it, applaud
it, and reward it. They need to make heroes of their empowered employees."
John Tschohl is an international management consultant and speaker.
Described by Time and Entrepreneur magazines as a "customer service guru,"
he has written several books on customer service, including Achieving Excellence
Through Customer Service, Cashing In, and The Customer is Boss. As president
of the Minneapolis-based Service Quality Institute, Tschohl has developed
more than 26 training programs that have been distributed and presented
throughout the world.
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