Richard Branson: Put Your Staff 1st, Customers 2nd, & Shareholders 3rd | Inc. Magazine

Summary

In this discussion, the speaker emphasizes the importance of prioritizing employees over customers and shareholders to achieve better customer service. They highlight how a proud, well-supported, and happy staff leads to positive customer experiences. The speaker also advocates for a management style that involves direct interaction with employees and customers, known as 'managing by walking around.' By listening to feedback and acting on it, companies can address issues and improve performance, transforming from average to exceptional.

Takeaways

• 😀 Virgin places great importance on customer service, but emphasizes putting employees first.
• 😊 Companies like Southwest Airlines and Union Square Hospitality Group also prioritize employees before customers.
• 😄 Happy and well-treated employees lead to better customer service experiences.
• 😁 If employees feel proud and have the right tools, they are more likely to deliver excellent service with a smile.
• 😌 When employees aren’t well-treated, customer service suffers, and customers are less likely to return.
• 👍 The philosophy is: put employees first, customers second, and shareholders third for overall success.
• 📝 Leaders should practice 'management by walking around,' interacting with employees and customers to learn directly.
• 👂 Listening to employees and customers is crucial for improving the business and addressing small but impactful issues.
• 💡 Keeping a notebook and acting on feedback helps make constant improvements that turn a good company into a great one.
• ⭐ Focusing on the details and listening to frontline staff leads to the creation of exceptional companies.

Q & A

Why does Virgin prioritize putting employees first over customers and shareholders?

Virgin believes that when employees are well-treated, proud of their work, and given the right tools, they will naturally provide better service to customers. This ultimately benefits both customers and shareholders, creating a positive cycle.

How does treating employees well translate into better customer service?

When employees are proud of their job and feel valued, they are more likely to be happy and provide service with a smile, which leads to a better experience for the customer.

What happens if employees are not given the right tools or are not appreciated?

If employees are not properly equipped or appreciated, they are less likely to be engaged or provide good service, which can result in negative customer experiences and lower customer retention.

What is the philosophy behind putting staff first, customers second, and shareholders third?

The philosophy is that by prioritizing staff well-being, they will provide better service to customers, which will ultimately lead to better financial performance for shareholders.

What management technique does the speaker practice to stay connected with employees and customers?

The speaker practices a management technique called 'Walkabout' or 'managing by walking around,' which involves being out in the field, talking to employees and customers, and listening to their feedback.

Why is listening considered a key attribute of a good leader?

Listening is crucial because it allows leaders to understand the issues faced by frontline employees and customers. By listening and acting on feedback, leaders can make improvements that enhance the company's performance.

How does the speaker gather feedback during the 'Walkabout' technique?

The speaker carries a notebook to write down feedback from employees and customers, ensuring that the insights are not forgotten and can be acted upon later.

Why is it important to act on feedback received from employees and customers?

Acting on feedback helps address small issues that may hinder company performance. Addressing these details can turn an average company into an exceptional one.

How does the speaker view the role of frontline employees in improving the company?

The speaker believes that frontline employees are in the best position to notice when things aren’t working and what needs improvement. Their input is valuable for refining operations and enhancing customer service.

What is the ultimate result of getting the 'little details' right, according to the speaker?

Focusing on and improving small details leads to a company transforming from average to exceptional, as these details can significantly affect customer satisfaction and overall company success.