business decisions

Regaining My Brain: A Journey Through My Education, Career and Beyond

10 years ago, I was halfway through my Masters in Business Administration program.  It was challenging, especially since I was in school full-time, working full-time as well as a part-time job and attempting to maintain somewhat of a social life as a young 20-something.

But I was brilliant, at least in my own mind.  I started school a year earlier than most, excelled in high school, with a 3.86 cumulative GPA, taken honors classes and even achieved the National Math Scholar Award, and this was with minimal effort as I had never really mastered the art of studying.  I didn’t fare such high grades in college, graduating with about a 3.4 GPA, but I was enrolled in the honors program, worked and had a social life.  I was anxious for what the world had for me and earned an internship at the Washington News Council through winning a mock trial I had participated in, in my media ethics course.

But the world wasn’t offering what I was expecting.  Growing up, we were always told that if we went to college and participated in extracurricular activities, we’d get a great job, but by the time I got out of college, I realized it wasn’t going to be that easy.

My internship was amazing, but it wasn’t enough to pay a living.  I had several interviews, but I was naive and unsure of what I wanted to do with my life so I failed at making a good impression.  My interests were working with animals and writing, but neither panned out much of a career for me.  I was ready to make it big time in some field, I just didn’t know where.  After several months, my internship ended and I ended up taking a job at a pet grooming salon.

It was hard work, physically, but not mentally stimulating for my fresh from college brain.  There were days when I would spend 8 or 9 hours just drying dogs, unable to talk to anyone over all the noise and not requiring much thought.  I felt like my brain was slowly dying.  The hours were long, the work was physically demanding and I ended up not having much energy to do anything once I got home and showered my day off.

That’s when I decided my degree wasn’t enough.  I had tried, working hard every day to land my dream job, whatever it happened to be.  I was a bit insecure, never having had worked anywhere for more than a few months, which had been my strategy through my early career.  While in college, I never kept a job longer than a semester so I could experience a variety of jobs.  It was a smart move in my opinion, because it gave me the variety of abilities I still hold to this day.  It got to the point where I’d just go to the job board, scout out the highest paying job and apply for it.

I spent my first year of college doing web design for different departments.  My second year was spent as a freelance writer, radio dee-jay and paid note-taker.  My third year working in the barns and at the vet school, and my senior year as a waitress.  During the summers, I would work at a local chain of pet stores, giving me retail experience.  In just 4 years, I’d had almost a dozen different jobs in a variety of fields.

I felt well-rounded as an employee, ready to tackle whatever a job brought my way.  I just needed a job.  Or something.  Anything.

While working at the grooming salon, I decided I needed additional education so I could finally land a really good real job.  I started looking into getting certified to teach and one night, my dad suggested I look into the University of Phoenix program one of his coworkers had told him about.  I looked up the Masters in Business Administration program and it seemed right up my alley.  I wanted to work in a business, right?  And having a Masters degree would definitely earn me even more money than a Bachelors, right?

I started the MBA program in January of 2003, having taken a semester off  college.  I was actually too young for the program, but had enough work experience; I just had to have a note from my employer.

I came in to the program thinking I was hot stuff.  I’d just come out of college less than a year ago, was very familiar with current software and the internet.  Most of my classmates were a minimum of 10 years older than me and some old enough to be my parents.  They came with decades of experience, yet somehow I thought I was going to school them in how things are done since I was so freshly educated.

They were very respectful of me, more so than I had expected.  I came into the program defensive, thinking they were going to take one look at my youthful face and wonder what on earth I was doing in the program.  They took time to listen to me and were thankful that I could teach them how to use the software that didn’t exist when they had been in college.  Many had been limited to typewriters and a library versus my computer and world wide web of resources, albeit even I didn’t have nearly what is available now.

The beginning was rough.  I couldn’t handle criticism well and hated to be bossed around by anyone.  I was smart and I was right.  Wrong.

We worked in teams and mine had a great mix of members that evolved throughout the course—a couple 30-somethings, a couple 40-somethings, one of the oldest people in our program and me, the youngest.  I remember specifically during one of my early courses how one team’s presentation was being criticized by our instructor and the team members were feverishly taking notes on what was being said.  Feverishly!  I couldn’t believe the weakness they were showing.  They did a great job, why should they be criticized?

That’s when I started to truly learn constructive criticism and the power it has in making us better people.  They took notes so they wouldn’t make the same mistakes again in the future.  It’s important to use every chance we get as a learning experience to continually learn and improve ourselves.  A successful person will never be done learning.

As the courses went by, I also started taking notes about what I could improve and our team grew and improved substantially.  I’ll never forget the look on our Marketing instructor’s face when we blew him away with one of the most exceptional presentations I’ve ever been a part of.  That was why it was important to learn and continually strive for improvement.

As my brain grew to be more mature and educated, my desire to move on professionally did as well.  In May of 2003, I took a job as an Administrative Assistant in the office of a cold storage warehouse.  It wasn’t what I wanted to do, but it was a step in the right direction.  I didn’t enjoy the job all that much, especially when I was cut to part time the day after I signed my very first lease on my own apartment in an expensive county.  After paying all my bills, I was left with about $20 a month to live off.  I took on a part time job, but it was difficult to get many hours in while working and going to school full-time.  It was rough, but thankfully I had student loan money to live off (and get to pay back after I graduated).  But it got me through for the time being.

In December of 2004, I had completed my Masters program.  I wasn’t instantly promoted as I thought might happen.  Just slightly acknowledged that I had completed a huge feat in addition to working full-time and how proud I must be.  The reality was, the company expected me to quit when I got my MBA so they didn’t bother considering a future for me there.

I worked that job for exactly one year before starting a sales job at a Uniform Company.  It was a great place to work and I have so many fond memories working there.  It was a smart company, starting all employees in operations, shipping & receiving inventory to learn the back end work that was done.  We had a great team, great customers and it was an enjoyable place to work.  I was excelling and making a name for myself, even having a position created to use my knowledge of sales and operations to make things run smoothly for our 5 locations.

Unfortunately, several devastating things happened in my personal life while I worked there and I got to a point where I couldn’t handle things as well as normal.  I was stressed out and difficult to be around.  Working in my position was great for me at the time because I got to do my own thing, but I didn’t like who I had become and I needed to get out of my funk.  A position in purchasing at the main office in Seattle opened up, so I applied and got it.  I missed my team and my amazing manager, but I wanted to move up, and felt this was the perfect opportunity.

I quickly found out that I hated commuting 60 miles a day, especially when it often took longer than an hour to go just one way, and sometimes up to 3 hours to travel 30 miles.  I also found out that I was not cut out to work in an accounting position, even though the math and analysis sparked my brain cells, it just wasn’t a good fit for me.

I ended up finding a job just 2 miles from my apartment and accepted it.  The day I gave my notice, the entire region froze over and I spent 7 hours driving the 30 miles home.  I was fried and ready to move on.  I finished my two weeks and started at my new company as a sales assistant.

The company I moved to was a sports ball manufacturer.  It was a fun environment, although fairly stressful at times.  After just a few months there, I moved into operations working with an amazing manager.  He was such an optimist and our brains worked similarly.  We took on implementing lean manufacturing practices into the entire company.  I was tasked with writing procedures for multiple departments, analyzing the processes and cutting out any unnecessary steps to make our processes flow together as smoothly and logically as possible.  It was great, like a huge puzzle.

With any change comes resistance and I was met with plenty.  I was involved in training seminars and enforcing proper flow at times.  In dealing with resistance from those who felt there was nothing wrong with the way things had been done in the past, I learned how to work better with people and get them excited and accepting of the changes.  It was challenging and a great learning experience as well as a position that reinforced my habit of documenting all the procedures involved in my jobs.

A position in the nearly non-existent marketing department opened and I jumped at the chance.  With lean processes implemented, there wasn’t much left of my job and I wanted to move in the direction of my BA.  I wasn’t too sure of the person leading the department, as he was my age and newer to the company than myself, but even if I only held the position for a year, it would give me the experience I needed to move on.

The department grew immensely during the 5 years I was in it.  I learned new things every day and was forced to find solutions on a small or non-existent budget.  I’ve always been resourceful, so I took it as a challenge.  It was an overwhelming position to be in, as I retained several responsibilities from my previous positions in addition to my new responsibilities.  It was oftentimes difficult to get help because the person in the company who would be best to help me was myself.

I was proud of how well I knew the company and its functions.  I could assist in nearly every department and did my best to serve as a resource to anyone who needed help.  When things got stressful, I’d stop and take a breather.  It got to the point where I’d even spend my lunches at the gym to take a break from the mental challenges and work on physical challenges.

After 5 years there, word started to spread that a move may be in the future.  The current location was almost 20 miles from me, but not too terrible of a commute, but a move to the north would make my commute a nightmare again.  Finally, a location to the north had been chosen for the relocation and there was no feasible way for me to get there without dealing with daily traffic jams.  It wasn’t going to work for me and I would not be compensated for the additional mileage and travel time incurred.  It was time to take what I had learned and move on.

In the fall of 2012, I found a position at a dealership where I had purchased a vehicle earlier that year after my husband had totaled mine in a bad accident.  Although I had been under a lot of stress while buying my vehicle due to my husband being off work and badly injured, the experience had been quick and pleasant.  The staff was friendly and the dealership had been around as long as I could remember, a place with a good reputation and potential for professional growth.

I started in October of 2012.  It was a fun environment to work in, always something new going on and really great staff.  My work was a bit different than I had expected—while at my previous company, I was used to doing everything myself, the design, planning, everything—and here we actually had a marketing budget so we could outsource at times.

It took a few months to learn how things worked and I slowly gained more responsibilities as I learned.  After a year, I was doing things easily that had been a big challenge to take on initially.  I felt confident and optimistic.

The only problem is after changing companies multiple times through my career and not necessarily moving up any ladders, I felt my degrees hadn’t been as beneficial as I once thought.  They hadn’t earned me any special privileges or massive pay, they were just a few years of my life and some black text on my resume.

I realized I hadn’t really been using much of what I had learned in grad school, and all these years, I had talked about what a great education it was and how I would recommend it to anyone wanting to better themselves.  I wasn’t so sure I would say that after all these years.

The thing is, I’m still paying every month for my Masters degree.  Each month, Sallie Mae sends me a reminder of the time I spend trying to improve myself for an exciting future that I thought would make earning the degree easier to afford.  And every month, I realize I’ve fallen into a pattern of learning just what I need to know to complete my work each day and maybe a few new things to keep on top of my profession.

Right after Christmas in 2013, I started feeling very ill.  I felt really bloated, although I hadn’t eaten much and I was nauseated.  I started getting a high fever and couldn’t keep anything in.  I ended up spending New Year’s Eve day in the ER, getting fluids and trying to stay alive.  I felt awful.  I spent almost a whole week dealing with a terrible stomach virus and focusing only on getting healthy.  Nothing else mattered to me at the time.

While I was couch-bound during that week, I had a lot of time to think about where I was going and what I was doing with myself.  When you’re that sick, everything gets put into perspective.  I was no longer going to make unhealthy choices and waste my time being average, I was going to do everything I could to make the most of my life.  Because you never know how long your life is going to last.

I started planning out my goals for 2014.  Not just the generic goals most of us come up with, but specific goals.  My first goal came about from staring at the same book for over 6 months, knowing I needed to read it.  My boss wanted everyone in our department to read it and I had been chosen to start.  While I read daily, it was more articles and fun stuff like on cracked.com, not books.  I enjoyed reading books when I did, I just didn’t read them often.  So that was the first thing I was going to change.

When I finally started feeling better, I sat down with the book and started to read it.  It wasn’t one I would have chosen for myself, but I didn’t have a choice, I needed to read it. (Lean In: Women, Work, and the Will to Lead)

Part of my problem with reading is my tendency to not retain what I read because my mind wanders off.  As part of the new me, I decided that I was not going to let that happen to me anymore.  So I grabbed a notepad and started taking notes on everything I read.  I finished the book in one night with pages of notes to refresh my memory.

Reading that first book set me on fire with a passion to learn more.  I was on a mission to get smart again.

I went through our book shelves to find my next book.  I went on Amazon and loaded up my Kindle account with every inspiring book I could find.  I gathered notebooks and created my own reading areas where I could just sit, drink tea and take notes.  I felt my brain growing and my intelligence increasing.

My vocabulary started opening up.  The appropriate words came to my mind much quicker, I started speaking more eloquently.

I decided to make additional changes in my life to continue along this path.  I stopped listening to brainless, garbage radio programs in the morning and instead listen to NPR or instrumental music.  I opt to read my books and take notes rather than rot in front of the TV watching Dexter marathons.  I started talking to others about the improvements I was making and started acting more professionally to match my self-improvements.  I finally subscribed to Fast Company magazine.

As part of my goal setting, I decided vague goals weren’t going to cut it for the new me.  Read more books is a nice idea, but read 1 book a week is a goal that can be measured and achieved.  Write in my blog more is vague, but publish a post once a week is measurable and achievable.

It’s hard to reach goals if you don’t make them reachable.  By putting a number and a time frame to your goals, you will be much more likely to achieve them.

While we’ve just started the third week of the year, already, I am starting to feel the fire that pushed me so many years ago.  My brain is recharging and I’m eager to continue learning and improving myself.  I’m making reachable goals and feel rewarded each time I accomplish one.

I’m honestly not sure where I’m going and I haven’t quite figured out what it is I want to do when I grow up.  I don’t have a career path planned out just yet and I’m not sure what the future holds for me.

I do know that with these changes I’m making, I’m actively taking control of my life and my learning to become the best person I can be.  I’m keeping it fun and exciting so reaching my goals will be that much more rewarding as I reach them.  I’m also doing my best to inspire others to challenge themselves to make improvements and live fulfilling lives so they can feel the passion for life I’m experiencing.

Never stop learning.  Never stop growing.  There is always something new and exciting to achieve if you make self-improvement part of your daily ritual.

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5 Steps to Overcoming Disasters in Business

No matter how much planning goes into a project, sooner or later, something can go wrong and a minor disaster can occur.  We’ve all been there and you’ve probably noticed that different people handle these disasters very differently.

The way the disaster is handled can result in a very positive or negative way for the customer.  If you let yourself slip too far into what I call the “panic zone,” you become unfocused and unable to make rational decisions.  The panic zone causes stress and confusion and allowing it to take over will cause you to create a negative experience.

Here’s how you can make it a positive experience:

  1. Stay calm. Staying calm can be very difficult, but it is very important.  You’ve planned and expected your process to follow the plan so when it doesn’t, your whole mental process is thrown off, which is confusing and upsetting.  However, staying calm will allow you to make wiser, better decisions.
  2. Don’t focus on blame.  You may have noticed that for some, pointing blame is the initial reaction.  This is natural, but completely counterproductive for a positive outcome.  If you are wasting resources on blaming others, you aren’t solving the problem at hand which should be the top priority.  Also, if your team members are worried about being blamed, they are less able to focus on problem resolution.
  3. Focus on the end result.   Focusing your concentration on the end result will help guide your thinking to resolving the problem at hand.  If you can use tunnel vision thinking to block out distractions, you can better focus on problem solving and get to a solution a lot faster.  For example, if a shipment is late, focusing on how you can get it there on time will help you get it there on time faster than finding out whose fault it is for making it late.  That can be discussed once you are out of the panic zone and the problem is solved.
  4. Make it happen. If you have invested in resolving this problem, you must stay focused to ensure the solution happens.  Don’t rely on others to make it happen for you—this is your project so you need to stay on top of it.  Nothing is worse in problem solving than getting close to a positive solution then dropping the ball.
  5. Follow through. This goes hand in hand with making it happen.  Ideally, we want our customers to think that we never make mistakes and are always on top of things, but the reality is that we can’t always control situations 100 percent.  Customers generally are understanding and if you make the effort to fix a problem to create a successful outcome for your customer, they generally appreciate it.  Communication is key and it can make you look even better if you let your customer know that your focus is on making sure you’ve gone above and beyond to make sure they get what they want.

Reflection: It is important to acknowledge that problems can’t always be resolved to the customer’s satisfaction.  Perhaps they ordered a custom product that got destroyed in a fire and replacements just cannot be produced in time or maybe the customer is not satisfied with how their order was handled, even with a positive result.

There are situations that are out of your control, but as long as you have done everything you can to reach a positive result, sometimes you have to settle with having an unhappy customer or losing a customer.  It is not an ideal situation, but it is a reality.  The best case scenario for that situation is that your customer is caught in their own panic zone so there’s always the chance they will realize your efforts and come back.

Just remember that the reason you are in business is because of your customers so they and their happiness need to be your immediate focus.  Any internal factors causing these disasters should be evaluated once the problem is resolved to prevent repeating them in the future.

5 Steps to Incorporate Lean Manufacturing Into Your Business

Lean manufacturing is maximizing production with minimal waste.  It sounds simple enough, but many companies do not take the time to evaluate their processes to determine how they could be run more efficiently and this can severely impact the bottom line and cost the company hundreds to millions in dollars each year.

It’s not that companies don’t want to maximize productivity, it can be for several reasons including the following:

  • Management is unaware that there is a problem
  • Those who can make change are resistant to change
  • Management believes the processes are already the most efficient
  • Management does not revisit or re-evaluate fixed processes to ensure they remain efficient

Companies want to run efficiently because the more efficiently they run, the higher their profit margin, the happier their employees and customers are, and the more successful they become.  However, management and executives are not always aware of the minute details of every function within the company, only that  processes are being performed and production is consistent.

Here are a few steps companies can take to make processes leaner and more efficient:

  1. Document processes: The first way to determine whether processes are running as efficiently as possible is to closely review them and document them thoroughly.  Have employees outline how they perform regular tasks thoroughly enough that someone else could complete the task by following their instructions.  This will provide each step required and allow thorough analysis of the process.  The goal is to have every process documented to the extent that any other person could complete the task as it is written.
  2. Review processes: Once processes are documented, review each step to ensure it is executable by someone else.  If not, have the employee revisit and clarify any missing points.  Once clarified, start highlighting any steps that seem unnecessary or those which could be replaced by more efficient steps.  This is also a way to quantify processes by determining time and resources required to complete each task.  The goal of initial review is to find bottlenecks and unnecessary steps that can be eliminated in each process.
  3. Cut waste: Determine which steps are unnecessary and remove or replace with more efficient methods.  This can include authorizing employees a small dollar amount to approve for purchasing or defectives, rather than wait for their manager to review and approve or to authorize email approval versus signature approval.  The goal is to remove any unnecessary steps and replace with more efficient, logical steps.
  4. Streamline processes: In manufacturing, lean processes focuses on literally reducing the number of steps—footsteps—required to accomplish a task.  Documenting processes is a way to determine the “footsteps” within a process in order to maximize efficiency.  Once you have cut the waste from processes, they need to be re-written to reduce the number of steps and increase the output.  The goal is to maximize the efficiency of each process to result in maximum output with minimum waste.
  5. Review & improve processes: What works best at one point in time is not what works best forever.  It is vital to revisit each processes periodically, quantify the work versus output and determine whether a more efficient process could be put in its place. Set goals and benchmarks so you have quantified points to reach and a method to evaluate qualitative processes.  The goal is to ensure your processes are running as efficiently as expected and to determine whether further review is necessary to increase productivity and efficiency from each process.

Employees can become nervous when asked to document how they do their jobs.  They often feel as if this is a way to get rid of them and have an instruction manual for their replacement to follow.  This is not always the case.  They are tasked with documenting their processes because they should be the expert at it.  A review of their processes is necessary to keep the company’s processes streamlined.

In some cases, it may be determined that some employees are no longer needed because their work can be absorbed into another employee’s processes.  While difficult, this can be beneficial for the company in cutting excess expenses and maximizing efficiency.

In a lean manufacturing company, employees should have enough work to do to make them a vital part of the company, however, they should also never drop below a point of necessity within the company to the point of their position not being needed.  Employees will be most functional when they have just enough work to do to keep them busy for their shift, but not too much work that would cause them to be careless in completing tasks too quickly to complete the tasks properly.

Lean manufacturing should not be a one-time action—it is ongoing for continual improvement.    Think of it as maintenance after weight loss.  If you make the effort to follow the rules and put in the hard work to lose weight and reach your goal, you need to continue a healthy lifestyle to maintain your hard-earned body.  However, if you go back to your old habits, your hard work will be lost and you will end up right where you started.

However, once the initial stages are completed, with regular maintenance, you will be able to maximize your efficiency with regular evaluations which will result in smooth, efficient processes with minimal waste and maximum productivity and profit.

How to Bounce Back from Making a Big Mistake at Work

Mistakes happen and while most people don’t plan on making mistakes at work, they seem to be inevitable.  Just because you’ve made a mistake doesn’t mean you are doomed.  You can prove your worth in the recovery of that mistake, if handled properly.

So you’ve made a mistake and chances are, you’re freaking out a little.  The last thing you want, especially in this economy, is any sort of a target on your back at your job.  So what can you do to bounce back?

  1. Stop.  Chances are, your adrenaline is skyrocketing and your mind is running a million miles a minute.  This is the worst time to make a decision.  Stop, take a break and calm down for a moment.  If you are calm, you’ll be able to think more clearly.
  2. Assess the situation.  Most people will need the help of coworkers to resolve work problems, so step back and review the mistake so you can explain it to your boss and whomever else you need to include.  A thorough investigation can be performed once it is resolved so focus on the basic facts at this point.  Write down the most important points of the situation that need to be discussed first.
  3. Come up with some solutions. Before moving to the next step, determine some solutions to the problem.  Having multiple choices can make it easier to resolve the problem and shows you are prepared to fix the problem.
  4. Fess up. The error needs to be reported as soon as possible so it can be resolved.  While many articles say to fess up first, I believe it is important to complete the first three steps first so you can introduce the problem with a quick analysis and possible solutions so you can make the most of your time with your problem-solving team.  If you present the issue when you are prepared, you can all focus on a resolution immediately, you can resolve your problem much faster, giving your customer the best results.  Make sure you fess up quickly, however.  Do not let the problem linger for more than a few minutes.
  5. Fix it. This is your error so you need to see it through to resolution.  Even if you aren’t the one assigned to completing the resolution, make sure you follow through with each step of the solution to ensure everything goes as planned.
  6. Follow up. Once you have seen the solution to completion, follow up with your customer and those involved in the resolution to let them know the problem has been resolved.  This is a great time to publicly acknowledge and thank those who helped.  This is also a time to sit down with your supervisor to discuss how the mistake happened and how you intend to prevent it from happening in the future.
  7. Step it up. Chances are, even if you handled the resolution flawlessly, you may have additional eyes on you making sure you do not make any more mistakes.  This is your time to show your coworkers what you’re made out of.  Take a little extra time to check your work and take steps to prevent the problem from happening again.
In most cases, a mistake is not the end of your career, but how you handle it can greatly impact your reputation at your job.  By staying calm and being prepared to take on the challenge of resolving the issue, you can turn a big mistake into an example of your excellent problem solving skills (and maybe even get a promotion!).

What problems have you had to deal with?  What has worked?  What hasn’t worked?

Links:

Verizon: The Big Decision That Didn’t Last Very Long

Last week, I wrote about the Netflix decision to split its streaming and DVD-by-mail services and how they lost thousands of subscribers. Well, December 29, 2011, Verizon decided to start charging customers a $2 convenience fee for making payments online or over the phone. Traditional checks and automatic payments would not receive a fee. Being a Verizon customer myself for over a decade now, I was not pleased that I would now have to pay a fee to pay my bill through their website.

The fee was to go into effect January 15, however by December 30, 2011, just one day after the announcement, Verizon announced that they would not in fact charge this fee due to negative customer feedback.

Verizon was wise to make such a quick decision to rescind the fee decision. Had they waited weeks or months, they most likely would have seen a large number of customers change service providers and would have received an influx of complaints not unlike mine. Why should I have to pay for paying to use your services?

Similar to the Netflix situation in which they needed to find a way to compensate for the expenses of shipping DVDs versus streaming services, Verizon was trying to find a way to compensate for the expenses incurred from one-time payments. But yet again, this is an example of a company telling the consumer how they will be benefiting the company, not how the company will be benefiting the customer.

If you have ever worked in retail, food service or any position in which you are working with customers, you will know that their main concern is not whether or not they are making more work for you. If they purchased a product or service from you that was unsatisfactory to their standards, they want you to fix it and they usually don’t care what that requires. And they shouldn’t. Their purpose is to keep you in business so your purpose is to keep them happy.

In the announcement in the Verizon News Center (http://news.verizonwireless.com/news/2011/12/pr2011-12-29b.html) they state:”The fee will help allow us to continue to support these single bill payment options in these channels and is designed to address costs incurred by us for only those customers who choose to make single bill payments in alternate payment channels (online, mobile, telephone).” This statement tells customers how they will be helping Verizon, but doesn’t offer anything to help the customers.

So how could Verizon have better handled the situation? Well, the goal was to encourage customers to sign up for automatic payments. Rather than punish customers for doing something they have always been doing (paying online/over the phone) why not create an incentive so the customers will do what Verizon wants? Encourage the customer think it was their idea to do what the company wanted them to do in the first place.

What examples of big business decisions have you encountered?  If you have been part of an unpopular business decision, how did you and your company handle it?

Article: http://money.cnn.com/2011/12/29/technology/verizon_convenience_fee/index.htm
http://news.blogs.cnn.com/2011/12/30/verizon-says-its-scrapping-2-online-payment-fee

Netflix: A Big Business Decision Gone Awry

Last week, I wrote about the New York Times sending an email to 8 million recipients in error and how it quickly ended causing no real damage. However, emails that aren’t well thought out can cause serious repercussions, damaging the company’s reputation, causing the company to lose significant profits.

Consider the email from Reed Hastings, Co-Founder and CEO of Netflix, back in September regarding the splitting of streaming and DVD services and websites. This was following the July price increase that already caused many subscribers to drop their subscriptions. So in addition to the already unpopular price hike, subscribers now faced the inconvenience of managing their account and movie queue on two different websites if they wanted to keep both services.

Three weeks later, another email was sent out announcing that there would not be a division of the services and that the site would remain as is. Unfortunately, due to all the confusion, Netflix lost 800,000 U.S. subscribers during the third quarter of 2011, the largest drop they’d seen in seven years.

The email from Hastings almost comes off as an internal email, a suggestion for a new idea. But generally, ideas of such magnitude require planning, research and marketing. Suggesting such a big change to generally satisfied customers through an email was quite a blow. Being a subscriber to streaming services myself, I know I was shocked at this announcement and felt unsure about this new venture.

So how could this have been handled better? Rather than sounding like a cross between an internal company email and a message from a stern uncle on “how things are going to be,” Netflix could have taken a few steps to make this new idea more exciting and acceptable to subscribers.

Focus groups and subscriber polls could have been used to determine how subscribers would feel about the drastic change. With the outcry of threatening to cancel Netflix subscriptions quickly spreading across the internet after the announcement, Netflix could have quickly determined this might not be the best decision.

Rather than sending a long explanatory email to subscribers, the message could have been better controlled and spun to demonstrate the benefits to the customer of having these split services. Is splitting a service that works fine for me convenient for me? No, not at all. I don’t want to have to manage my one service through two sites. If you want to do that, then tell me why I should be happy about it and how it will benefit me.

The end-user doesn’t care how your company works internally and definitely doesn’t want to complicate their life to make yours easier. Stating “we realized that streaming and DVD by mail are really becoming two different businesses, with very different cost structures, that need to be marketed differently, and we need to let each grow and operate independently,” is something you tell your employees, not your customers. You tell your customers “here’s what I’m going to do for you to make your life easier and make your experience with my product or service even better.”

The message could have been conveyed better as well. Rather than sending a long-winded email letter, placing internet ads, commercials announcing the “exciting new service” and easing customers into the change using controlled messages to build their confidence in it would have been much more effective. Sometimes it is better to slowly inch into cold water than to dive right in.

Waiting three weeks to announce the change was not going to occur was another blunder. Granted, big decisions take time and I’m sure it took a long time to field all the calls and emails from unhappy subscribers, but had they responded earlier, perhaps they could have prevented some of the subscriber loss.

In the end, Netflix, a company that had been functioning perfectly fine in the eyes of its subscribers, upset and confused the very people it needed to exist. The company made a very bold move that ended up backfiring, giving the impression that the company was unafraid to make drastic decisions without regard for its subscribers.

What other companies have made drastic decisions that didn’t turn out well?  Which ones made big decisions that worked out?  How would you handle a negative backlash of a recent business decision?

Article: http://www.bloomberg.com/news/2011-10-24/netflix-3q-subscriber-losses-worse-than-forecast.html