A great read, specifically for the insight into a shared service team in a multi-focused firm.
It's an interesting read even for non-business readers. It will give you an insight into the services you receive. It almost felt like a micro-MBA.
Some of my takeaways
- Formulize and theorize good service, rather than relying only on culture and some hero employees. Design the system in such a way that good service is automatic.
- Prioritize your customer's needs and aim to excel in the top few. Even if you fail in the bottom few, the customers will be ready to overlook. Just how MacBook users preferred the light weight and were okay to overlook the lack of memory. Make sure you're not stuck being a mediocre by being average in all the customer needs.
- Unless if you're IKEA who completely flipped the priorities of a customer.
- Marketing segments are very different from operating segments. Two users may want the same service but in very different ways. For eg, parent of a student in school who works vs stays at home.
- Service charges must be palatable. Be upfront about the charges.
- If you find a way providing an additional service can reduce your cost, you will be able to fund the additional service with the money you save. For eg, the insurance company which sends the agent as soon as the accident occurs, to reduce their false claims and legal charges.
- Support your employees by making your processes simple and providing digital support to the users.
- It's a good idea to let your customers help each other out via forums.
- Some very interesting ways to hire people who have high levels of empathy. For eg, in the joint discussion round, make each candidate share an embarrassing story, and notice the listeners.
- Large, multi-focused orgs should be careful of focused entrants. Acknowledge the threat and develop models accordingly.
- Shared services is a great way for large orgs to grow. All common services can be combined. Draw the line and don't let the customer facing teams overpower the shared services teams.
The book had some very interesting examples from various business areas like healthcare, airlines, F&B, etc.