Managing Director - Organization Development & Decision-making Steve Ferguson
What Can CEOs Learn from Congress?
Mar 02, 2010
Most of us will agree that our healthcare system needs reform. As business people, we know that health insurance is a large and growing portion of total personnel expense. As consumers or patients, we know that healthcare expenses and insurance premiums are major chunks of our family budget.
Despite general agreement on the need for healthcare reform, public opinion polls report that the majority of American do not support the proposed legislation currently before Congress. A CNN poll reports that only 25% of voters want Congress to pass a bill similar to the ones already voted on by the House and Senate. A full 48% of voters want Congress to start over. Despite strong public opposition, majority party leaders in both houses of Congress seem determined to push through the healthcare bill they favor.
It seems that the “voice of the voter” has been absent from these congressional healthcare deliberations. Majority party, congressional leaders felt they knew what the best healthcare solution was. And they were dismissive of alternative healthcare reform proposals. Some observers would even argue that congressional leaders were dismissive of the American people or at least dismissive of public opinion.
We don’t yet know the legislative outcome. But we do know that the American people hold Congress in very low regard. RCP reports that on average, 75.6% of voters disapprove of Congress’ job performance. (The average result of major polls conducted in February).
So what can CEOs and other business leaders learn from Congress? The “voice of the customer,” like “voice of the voter” matters. Just as congressional leaders “fell in love” with their policy solution, some business leaders fall in love with their product or their internal business model and are reluctant to change the way they operate. I’ve heard one CEO say, “We’re going to do it just like we decided and if the customers don’t like it, ‘blank’ the customers.” (Don’t think of “blank” as something good.)
We laugh at the joke, “If it weren’t for the customers, I could get my job done.” Unfortunately, after laughing, some businesses go back to work, forgetting that customers are their job.
Business proficiency in “voice of the customer” (VOC) requires much more than creating communications channels for customers to express their opinions. Without really listening to and understanding their customers and then incorporating “the customer” into the very fabric of their business model, business leaders will find their companies underperforming in the marketplace.
There is now indisputable evidence that VOC proficient companies out perform, on a sustainable basis, those companies that are less focused on their customers.
Politicians who dismiss voter opinion eventually find themselves out of office. Companies that pay lip service to customers find lower financial performance than those that incorporate VOC practices. And eventually the “lip service” companies may find themselves out of business.
(By the way, the company of the CEO I referred to above was acquired. The acquirer is focusing on improving customer service and loyalty as a key approach for enhanced financial performance. That CEO is no longer there.)