In business ceremonial rain dances come to be viewed for what they are. The financial crisis of 2008 was a wake-up call that reminded even entrenched firms how vulnerable they were. Making customers harder to acquire and even harder to maintain than ever before. Here are tips to innovate in ways that delight your customers.
The single dominant force in today’s marketplace: the customer.
Is it ever a good idea to admit to your faults? After all, people don’t want the “real” you, right?
Research from social psychologist Fiona Lee states that admitting shortcomings is a great way to simultaneously highlight your strengths.
Lee’s study measured the effects of admitting missteps and faults, and how those actions would affect stock prices. Experimenters read one of two fictitious company reports. (Both reports listed reasons why the company had performed poorly in the last year.)
- The first report placed emphasis on strategic decisions. In short, “We Can Do Better.”
- The second placed emphasis on external events (like the economy, the competition, etc.) In short, “It’s Not Our Fault.”
Test subjects viewed the first company far more favorably than the second. Admitting to shortcomings in areas like strategic thinking made respondents feel the company was still in control, despite its faults.
After examining hundreds of these types of statements, Lee found that the companies who admitted to their strategic faults also had higher stock prices the following year.
When blaming external forces (even if they happened to be true), companies gave ..[…]
Read full article via Inc.com.
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Jim Woods teaches CEO’s how to get the most out of their people and their organizations.
Jim is president of InnoThink Group and Leadership Matters. He is a leader in workplace learning, productivity, performance, and leadership training solutions. For over 25 years, we have helped companies improve their performance, productivity, and bottom-line results.