Timothy Firnstahl, founder and CEO of Satisfaction Guaranteed Eateries, Inc. in Seattle, is described as a “restaurant zealot” by the Harvard Business Review. 

Bothered by what he characterized as “an unacceptable level of complaints and our haphazard responses to them” he developed what he came to call the ultimate strategy for achieving his company goal:  satisfied customers.

He found that in addition to creating more satisfied customers, his ultimate strategy provided another unexpected benefit:  more engaged and motivated employees.

Here are his 3 suggestions for anyone interested in creating their own ultimate strategy:

  • Create an easy-to-understand guarantee – for customers & employees
  • Clarify how employees should use their authority to “make things right” on-the-spot
  • Make progress visible to all employees with colorful graphics displayed for all to see

One important reminder – Mr. Firnstahl asserts that “more power and responsibility are not enough. Employees must also have rewards.”

“Good thinking and positive action deserve . . . all the encouragements a company can think of” – like cash bonuses, on-the-spot point awards, public praise and opportunities for advancement.

 

Putting the Ideas into Action

  1. Decide on your organizational mission
  2. Create a simple customer guarantee that customers and employees immediately understand
  3. Provide guidelines to employees on how to apply the guarantee to real-life work situations
  4. Give employees the authority to apply the guarantee on-the-spot
  5. Track your progress (increased sales, profits, transaction totals, repeat sales; reduced complaints, etc.)
  6. Display business results for everyone to see
  7. Reinforce, reward and recognize both the efforts (actions) and the results (increased sales & profits)

In addition to improved sales & profits, you may see a more engaged workforce – to quote Mr. Firnstahl:

“I believe our employees are better than most because they have the power and the obligation to solve customer problems on their own and on the spot.  Giving them complete discretion about how they do it has also given them pride.”