Tuesday, October 17, 2006

What Good Are Rules?

Whether explicit or implicit, rules exist for a reason. Rules exist to govern activities. Some rules are understood by the parties doing business. Others have to be learned and often, over time, transition from the explicit to implicit: it's no longer necessary to state the rule. These rules apply as “rules of engagement” between organizations. They also apply for sales, marketing, governance and financial management. Just as the organization that violates the implicit rules of gentlemanly engagement-that is, of doing business between two entities -those who violate standards of management can expect failure, sooner or later. One medical organization once told me that his customers were “different.” I am compelled to ask, different from what? Do you mean to tell me that your business doesn’t need to understand your customer needs? It’s not important to translate those needs into specifications which will feed the service design process? Your customers will not need to approve the service design? You won’t look to them for feedback on how the service is performing or how you may improve your service to them? What you’re telling me is, because of your “unique” goals and position in the industry, the rules that apply to others don’t apply to you!

Hey folks, there’s nothin’ new in this universe. To maintain integrity with your customers there is a norm of behavior. Violate that norm and word will get around. Your employees and ultimately your customers will see through the shallow promises built on the sand of disingenuous behavior. Similarly, violate the norms of customer-led business, and you’ll find yourself at the mercy of your competitors.

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