Simple, (But Not Easy) Successful Behavior

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Here’s a straightforward, understandable approach, although simple is not always easy. There is no free lunch but at least you stand a chance to hit a target you can see. I came across the quote below that I had seen before that stuck in mind for good reason. I want to share it with you because it symbolizes a significant cultural change currently underway here at our company, Greco Apparel. We are shifting from many years of a “manufacturing” viewpoint or paradigm to an attitude rooted in delivering absolutely excellent, reliable and dependable client service both in products and information. While our mission statement declares that we want to delight our clients, here is a way to conceptualize this ideal and bring it to realization.

David Ogilvy, a famous advertising executive, noted that “In the best institutions, promises are kept, no matter what the cost in agony and overtime.” At first, this definition seems a bit callous. In reflecting on this quote, I thought the idea of “no matter what the cost,” fairly strong. But think in the negative for a moment about the cost of not keeping the promise: lost clients, air freight, charge-backs for late delivery, or poor quality. Not keeping the promise is more expensive typically than working to keep it.

Most of us are familiar with the “agony” part as well. If we don’t accept the agony internally to deliver as expected, then we cause our clients to experience agony with us as they will not be able to perform for their customers as expected.

I am reminded of a book that came out a few years ago entitled something like: “Everything I needed to know, I learned in kindergarten.” Certainly just keeping your promise is something we were taught as children. Say what you mean and mean what you say. If you can’t do it, don’t promise it. Whenever you promise something, others are counting on your company’s performance. Customers rely on us as vendors so they can achieve the promise to their customers.

While the price of agony is difficult to quantify, for those of us in business long enough, we all know what it feels like when promises are not kept. It’s certainly not my first choice. From an investment or budget standpoint, consider the cost to acquire a new client, including the expenses for marketing, advertising, travel, trade shows, entertaining, product development, samples, etc. Whatever the cost of overtime would certainly, in most cases, be more economical to expend to retain a satisfied client. Consider further the exponential value of repeat business. What is your customer worth per year in sales and profits over many years? Take the long view. The Asian corporations typically figure on a minimum 100-year or more business plan. Now that cost in overtime or airfreight doesn’t look so bad with this perspective. But you can’t continue to operate inefficiently for too long. So the cause of the problem, not just the symptoms, need to be addressed.

How do we improve our ability to keep promises? One method is to practice the “Five C’s” -(Contact, Contract, Concrete, Check-in and Closure) approach to negotiating business relationships. You can do almost anything you want as long as you have an acceptable, ethical agreement, clearly defined between the parties. This approach works if the negotiated deal is between two people like a manager and the subordinate or between two companies, like Greco Apparel and its vendors or clients. Here’s the outline:

Contact . With any relationship you expect to enter, you must first make contact with the other entity. This contact can include researching a new supplier, sourcing additional production, increasing business with new or existing clients, or hiring a new employee. The quality of this initial interaction may determine future success. Have you prepared by doing research or due diligence? Are your objectives clearly defined? Do have management’s support? Are you in a position to communicate effectively?

Contract . Once you have determined the other party with whom you will conduct business, the terms must be discussed, defined and agreed upon. What will you do? What the other person will do? When and how the product or service will be delivered and what are the payment terms, employment benefits, work rules, and any other necessary details? This is the negotiation phase where you can mutually agree upon terms that are achievable and satisfactory to both parties. For improvement in successful performance, try the book “Getting To Yes” by the Harvard Negotiation Project. This was the work that set forth the concept of “win-win” negotiation that has almost become a cliché but you will find this book an invaluable tool to help improve your thinking. You may not always be able to give your client what they say they want but once you have an agreement they will rely on your word and performance.

Concrete. The contract discussions should result in either a written formal agreement (as in the case of a lease or production contract) or a more informal memorandum sent to all parties involved. Get confirmation that all points are understood and accepted. Hammer out any difference before you start the operation. This step will confirm what was agreed between the parties so both sides have a very clear picture of what is expected, when, how and by whom.

Check-in . Once the contract or relationship starts, there should be some procedure for follow up to see that performance is occurring as expected. For example, at Greco Apparel we maintain a ‘Factory Daily Report’ where we see every morning by 10AM what was produced the preceding day with all our vendors. More sophisticated data systems can, of course, give more timely information but this works for us. We need to monitor and measure performance against what we expected or was promised. Feedback is a valuable tool here. For personnel management, regular review sessions between the manager and worker would allow for monitoring of performance versus expectations. In either case whether between companies or with personnel, small course adjustments are easier to manage or coach than major dislocations or damaging surprises.

By staying on top of performance, adjustments can be made quickly that are not as costly and can get performance back on the expected track.

Closure. The last “C” is to bring the deal to a conclusion and confirm that everything was delivered as promised, on time and for the agreed price. Can more business be sourced with a proven vendor? Or did the worker perform assigned tasks as expected? Can they be trusted with greater responsibility, handle more delegation and thus increase their value to the organization? If there is an on-going relationship you may want to use this step to review progress on a quarterly or yearly basis. This can be the basis for an annual review for an associate or meeting with a vendor every six months to review their prices and new product offerings.

By adhering to this discipline you can avoid a great deal of agony. Save the majority of your creative problem solving skills for the unforeseen situations that will certainly arise. Use the ‘Five C’s” approach and minimize your true costs in money and stress to enable and support your ability to deliver on your promises.

Joseph Greco is president of Greco Apparel. Visit them on the web at www.grecoapparel.com