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CEO or the Customer: Who is Your Master?

Reading the book The Servant: A Simple Story About the True Essence of Leadership, by James Hunter this past weekend, I ran across two simple company organization charts that brought me back to a previous post on customer service and posed an interesting question I want to get your thoughts on.

 

Who do we really serve in our businesses?

A current trend in sales organization design is to be customer centric.  The customer centric sales model puts the customer at the center of the sales process in an effort to align customers’ needs and buying preferences with the way we design our sales tools and create value.

Add this to our “quality customer service” initiatives, “the customer is always right” statements, and customer service surveys that were once rare, but now seem to have attached themselves via URL to the bottom of every major grocer, retailer and restaurant chain’s receipts in recent memory.

All of this makes sense to me, especially today when it has become clear the power of knowledge once wielded by sales teams has shifted decidedly in favor of the customer researching via the Internet.  Coupled with that, customers continue to benefit from splintered product categories offering more product choices, wider selections, and more competitors fighting for dollars.

 

On this information alone I would have declared the customer “King”, but then I saw this:

 

typical-pyramid

 

It looks to me like to a large extent our Employees are serving our Supervisors who are serving our Middle Managers who are serving our Vice Presidents, who are serving the CEO, who is presumably serving the Board and the shareholders/investors.  The remarkable part is, by design, either everyone has their back to the customer or the customer is actually supposed to serve the company!

If customers are truly our focus, or as a corollary, if we should focus on serving our employees so that they will serve our customers, shouldn’t the model look more like this?

 

inverted-pyramid

 

With this model, the CEO serves his customers, the Vice Presidents, who are in turn serving the Middle Managers, serving Supervisors who are focused on the health and wellbeing of the Employees so they can give their undivided attention to serving the Customer.

 It was wisely said a long time ago that a man cannot serve two masters.  So who do you serve?

 Are we serving the management team that writes our checks or the people that give the management team the money to make sure our checks don’t bounce?

  • http://ultimatesalesexecresource.blogspot.com/ Christian Maurer

    If we believe what Peter Drucker, the great management thinker, once said that it is more important for an enterprise to have customers than factories your inverted pyramid is probably the appropriate model.

    But as long as we have greedy CEO’s and Boards, we will not get customer centric enterprises. This takes an attitude change at the top. The approach to the customer of the entire enterprise up to the board must be guided by an attitude of service and contribution.

  • http://saleslaundry.com Val

    Thank you for taking the time to add your comments and join the conversation, Christian.

    Do you really think greed is the driver preventing organizations from being customer centric? It would seem that focusing on the customer would actually increase sales and revenue if the products and services were designed with customers’ needs in mind, instead of quarterly profit reports and continuous growth for Wall Street. There are, however, millions of businesses that are not governed by the pressures of being a public company that do not seem to be truly customer centric.

    I am not sure where this really comes from but I hope with more readers like yourself we will get more good input and maybe a little clarity.

    Val.

  • John

    I love the upside down chart. As the account person, or one close to the customer, it makes perfect sense to me, and it’s how I “roll”. Unfortunately I’ve run into people in upper management who have the political skills and desire to end up in high positions, but their motivation is self preservation at the expense of the organization. It becomes more about reports that make things look good than true long term financial health. I’m sure it turns on power. Maybe it’s a lack of trust of the consumer, or a fear of turning over control. Doesn’t the same thing happen with political officials. The ones we admire serve us, but how many do we admire?

  • http://saleslaundry.com Val

    Thanks for jumping in with your thoughts, John.

    So your line of thinking is that companies that are not “customer centric” could possibly be focused on short term goals or personal agendas rather than having a long term focus, or possibly be suffering from a fear or lack of trust issue?

    Those are some thought provoking comments if I read that right.

    I think fear certainly factors into it, but I don’t know if it is fear of the customer or fear of the consequences of not serving the guy you report to directly. If you get direction from your boss to do something that is not in the best interest of the customer, who is the average person going to listen to? Hopefully they would do what is right, regardless of who that is, but I am afraid in reality though, right or wrong, that they would follow their boss’s direction because their boss can punish them. The customer does not have a powerful representative voice in the company to protect their interests, with the possible exception of some front line account managers.

  • John

    Although I am customer focused, It's important to remember that the customer isn't always right. As important as individual customers are, you're employees are more important and much harder to replace.
    In response to your comments, I think the problem is that some people do what's best for themselves, and not the company. Because they are in positions of power they use their control to have a subordinate do what they want. I've lost a job for not being obedient, or for at least being honest but I would probably do the same thing again.

  • Jim Sillery

    I think the answer is that you serve the shareholders. The way that you create value for them is by serving the CEO and the Customers.

  • http://saleslaundry.com sellgosell

    Hello Jim,

    Thank you for the comments following your line of thinking. If an employee
    is to serve the shareholders, what is in the shareholders best interest? Is
    it better for an employee to serve the CEO or the end customer, because in
    most instances the two are rarely on the same path, and in some cases are at
    opposite ends of the same path.

    Val King
    Business Development Alchemist & Sales Engine Builder
    Visit My Blog @ http://saleslaundry.com

    “The person who says something is impossible should not interrupt the
    person who is doing it.”

  • http://saleslaundry.com sellgosell

    Hello Jim,

    Thank you for the comments following your line of thinking. If an employee

    is to serve the shareholders, what is in the shareholders best interest? Is

    it better for an employee to serve the CEO or the end customer, because in

    most instances the two are rarely on the same path, and in some cases are at

    opposite ends of the same path.

    Val King

    Business Development Alchemist & Sales Engine Builder

    Visit My Blog @ http://saleslaundry.com

    “The person who says something is impossible should not interrupt the

    person who is doing it.”