By Steve Moran
I am captivated by the idea that when you study companies that have great cultures and are financially fantastically successful, they have one or two driving ideas. Some examples …
- Zappos: Deliver WOW through service. They famously had no call scripts and no time limits on calls. One rep reportedly stayed on the phone for over 10 hours. (I am not so sure the same culture still exists since their acquisition by Amazon.)
- Nordstrom: For years, the employee handbook was famously one card with one rule: use good judgment in all situations.
- Ritz-Carlton: “Ladies and gentlemen serving ladies and gentlemen.” Employees can spend up to $2,000 per guest to fix a problem without asking permission. I would add that on very rare occasions I have stayed at a Ritz-Carlton, and I am not so sure they still live up to this reputation.
- Costco: Give members the lowest possible prices and pay employees well enough that they stay. They cap markup on purpose and have turned down the easy profit for decades. Investors complain, and the business keeps winning.
- Southwest (in the Herb Kelleher years): Take care of employees and they will take care of customers. Low fares and a lot of fun, with people who were allowed to be themselves.
- Chick-fil-A: “My pleasure,” plus closing on Sundays. One tiny phrase and one costly decision that tells everyone what they stand for.
The Common Thread
The common thread is that the idea is simple enough to remember and clear enough to act on without asking permission. It also costs something to live by, like Costco’s margins or Chick-fil-A’s Sundays.
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