Shadow Everything

Warning: I’m about to discuss some technology things (yes, again), with good reason: Information Technology (IT) is a leading indicator with parallels in every business niche, including yours.

This isn’t about IT. It’s about everything.

Control

Historically, a company’s staff has had a love / hate relationship with IT. IT’s all powerful control was easy in the mainframe days. No department could afford to get their own, much less the staff to manage it and the space to house it.

Once IT grudgingly accepted the PC, things moved along calmly for a couple of decades. We’ve now circled back to the point where IT has once again become an obstacle in many companies.

Enter Shadow IT.

What is Shadow IT?

Shadow IT is departmental IT resources purchased to achieve a result faster, cheaper and better than the result a department is getting from their company’s centralized IT staff – whether that’s one person or 1000.

Consider who has the budget and who benefits from Shadow IT’s ROI.

Somewhere in the market where tech people are trying to close a sale, there’s a hungry group of owners who would love nothing better than to take over thanks in part to the advantages provided by tools that don’t depend on the status quo and/or lobbyist-funded legislation dating back to Eisenhower.

Seek those who want to change

In many companies, IT’s primary responsibility is to make sure nothing ever changes. Not in all companies, mind you, but certainly in the misguided ones.

The act of not doing anything in a misguided company is mind bogglingly simple. That’s why startups keep going after entrenched niches where a rarefied few are doing something other than clinging to what they always did and how they did it – that is, the companies whose primary R&D budget might be smaller than their political contribution budget.

The startup crowd targets and finds ways to disrupt and displace these businesses. They do so by seeking out those who WANT to change. Those who don’t look to improve are left behind to fend for themselves – which seems to be what they want, until it’s too late.

Let me clarify the “make sure nothing ever changes” comment. It’s OK to take incremental, ever-more-feisty steps to make sure nothing ever changes in production or under peak load. It’s another thing entirely when those actions morph into “Do nothing. Change nothing. Don’t break anything, in fact, don’t touch or move anything. EVER.

Not doing anything beyond acting in the interest of self-preservation is politician work, not IT work. It results in…

Shrinkage

CEB (formerly the “Corporate Executive Board”) reports on global corporate data and trends in that data. A few quotes from a CEB report from last year:

  • IT budgets projected to shrink 75% over the next 5 years.
  • Around 10% of CIOs, particularly in large multinational energy, pharmaceutical and consumer companies, already have a cross-departmental role.
  • Nearly 80% of IT professionals will see multiple changes in their responsibilities, skills needs and objectives, as the IT organization adapts to changing business needs over the next five years.
  • Corporate IT departments will shrink by as much as 75% over the next five years as businesses adapt to the cloud and changing economic conditions.

The result of this: Cloud computing and Shadow IT, which is often based on cloud computing.

Who invests in Shadow?

Shadow IT investors have budgets. They seek serious ROI. These are not people looking for things to remain as they are. They’re dissatisfied with how things are. They know there are tools that can work faster, smarter, cheaper.

Shadow IT requires risk, offers reward, but it doesn’t come without a price. These processes must be robust, well-documented and… work, because IT doesn’t have the desire much less the resources to research or repair Shadow IT assets and processes. Shadow investments demand full responsibility from their investors.

Shadow IT isn’t the real challenge. I think you’ll see IT and its shadows go round and round as each generation of departmental and personal computing reveals itself.

By now, you’re wondering how this Shadow IT problem could possibly involve your small business. Did he trick me into reading this far?

Shadow Everything.

No, because the thing I’m seeing more and more of is “Shadow Everything”.

The ranks of people “dissatisfied with how things are and wanting tools that work faster, smarter, cheaper” isn’t limited to IT.

They’re everywhere and they will invest in Shadow Everything.

What will you invest in? And your clients?

Winning against the chain store

Yesterday, I sat down in a store that’s part of a Montana-based coffee shop chain. I wanted a quick cup and I had about an hour to write before a young man’s Eagle Board that was down the street, so this location was a perfect fit.

I drove past Starbucks to reach this place. I try to visit locally owned places whenever possible, and like many, I’m a creature of habit. This place has spent a lot of time as my writing venue over the years. The visit reminded me of some reasons why the chain store wins your neighborhood.

Habitual habitat

I admit that when it comes to coffee, I’m not most people. Maybe I’m a coffee nerd. Even so, let me shine a light on some reasons why people go to their place instead of your place – and most of them have nothing to do with coffee – unless they’re coffee nerds too.

When I visit a coffee shop, I tend to seek out a place that roasts its own beans every week rather than using what was trucked to them after being roasted and packaged months ago.

I sit at the same table in this particular shop, if possible. It’s out of the sun and elevated so I can sit or stand and work, and it has its own power outlet. From that perch, I can see the entire store and observe customer service and other things that I write about.

What changed?

I hadn’t been in this shop for a while, so the absence made it easier to notice what was different.

The outlet next to “my” table had been fixed. It had been loose for years, so being rid of that looseness was nice.

When I ordered a mug, I got a paper cup. They still have mugs. I rarely take coffee to go. I prefer ceramic. Hey, I warned you.

The coffee was lawsuit hot. In other words – way too hot, even to sip. 10 minutes later, it was drinkable. Do you have any idea how long that wait is for someone who is enjoying the aroma of a new-to-them coffee that they can’t wait to taste? Reminder: I said I wasn’t a normal coffee drinker.

I ordered a pastry. In the old days, I was always asked if I wanted it warmed up (whatever “it” might be). Regardless of my answer, they’d deliver it on a plate with a fork rather than ask me to stand at the counter and wait on it. This time, it was handed to me across the counter, still in cellophane. No wait, but no plate and no “Would you like it warmed up?”

You might think these details are silly, but these are the kinds of details that transform an average experience at a nearby shop into “the only place they’ll go for recreational gathering place coffee”, much less “Simply can’t work at home today coffee”.

I’d guess that the real change since my last visit relates to who trains the staff and how. They were cordial, friendly and all that – but the experience had changed.

What didn’t change?

I was greeted when I entered.

Once it cooled, the coffee (a new one this time) was excellent.

Once I unwrapped it, the pastry was excellent despite not being warmed up.

The wifi worked.

I had a quiet place to write for an hour.

What about Starbucks?

What are you doing to stand out from the “sterile” parts of a national chain? What are you doing to make me drive past the chain store to go to your place – other than being locally owned?

Not all of you own a coffee shop, but most have a national chain or regional player in your market. Seek parallels. Take the stuff they do well (like consistency) and use it to improve your place. Ignore the stuff they do poorly, other than to eliminate it from your place. Stand out by making yours the only place they’ll go – and make sure everyone knows why.

Don’t think that a national chain can’t appear in your market. In less than a year, my favorite little town of 4000 people has gained two national auto parts chain stores.

Stand out before you have no choice. Many of the things you might do are things that the chains aren’t allowed to do.

tl:dr – Training. Metrics. Detail.

What are your compelling reasons?

This past week, I’ve had several conversations revolving around why people don’t buy, why people stop buying, how we can get them to use what they bought and how we can get them to switch to our product instead of a competitor’s.

These conversations all have the same foundation: Giving people a compelling reason to change.

Whether we’re talking about buying, changing what they use, or using what they’ve bought, people need compelling reasons to change what they’re doing – even if they’re not doing anything.

Without compelling reasons – buying and implementing is much harder

It seems obvious that making it easier to buy is important, yet some businesses do their best to make it hard to give them your money.

However, buying isn’t the only obstacle to overcome. That’s why I’ve told the software setup story as many times as anyone would listen.

Selling them is one thing, getting them to use, adopt, implement it is quite another – and in fact, it’s more important than the sale over the long term.

If you don’t care what they do after they buy your stuff, it’s an indication that your business model is broken, even if you’re selling that stuff like crazy right now. Someday, that will change. When it does, how will your current business model work?

If you aren’t focusing on making sure they implement what they buy, your business model might not be broken, but your management of it is. You wouldn’t plant a crop and never watering or weed it, so why would you make a sale and then make no effort to cultivate the use of what you sold them?

That’s what the software setup story addresses and as you can read, I’ve been there.

What’s their point of view?

One of the things that fails business owners most often is assuming that their clientele is just like them. To be sure, there some cases where that’s true, but in others – it’s simply wrong.

The danger in this is that people buy, implement and change things for reasons who may not have considered, or for reasons that are meaningless to you. If that reason is the primary driver in decision making for your market and you miss it because their reason means nothing to you, closing a sale could be quite an uphill climb.

Even if you’re shy, you have to ask questions.

What are the obstacles to change? In many cases, they might want to change but think they don’t have the time to retrain their people, adjust their internal business processes and deal with yet another change. Solving that requires your value proposition to be clear, compelling and long-lasting.

What are the real reasons they might change? What truly causes the pain they feel? What keeps them up at night? What makes them worry about their future? Why is changing worth it at all if the outcome is the same? Same reports, same Excel spreadsheets, same profit?

If you don’t know the answers to these questions, you’re going to struggle to sell to them even if you have exactly what they need and want to take away their pain.

I don’t sell things that make the pain go away

If you aren’t making someone’s business pain go away, your clients are probably some portion of the general public. You might want someone to buy your cosmetics, or perhaps you’d like them to give your dry cleaners a chance vs. them continuing to use the one they use now.

Think about the risk people take when they change from Maybelline to Bare Minerals or from One-Hour-Martinizing to Joe’s Hometown Cleaners.

How do you currently communicate that trying your stuff is so easy and so risk free that if it doesn’t work out, they lose nothing?

Once you’ve done a great job of taking risk off their plate, you still have the task of proving the value of switching.  How are you doing that these days? Put yourself in their place.

Imagine a bank asks you to switch to their bank from the one you currently use – the one where your direct deposit goes and where your bill pay stuff is all setup and working smoothly.

Or consider switching from Windows to Mac or iPhone to Android.

Now you understand how they feel when you ask them to switch.

 

 

Standing out is the real work #sponsored

Fifth position

Note: I am blogging on behalf of Visa Business and received compensation for my time from Visa for sharing my views in this post, but the views expressed here are solely mine, not Visa’s. See full disclosure at the bottom of this post.
 
How do customers and prospects look at you vs. others in your industry?
 

For example:

  • What are your competitors best known for? Why do customers choose them rather than everyone else in your industry – including you?
  • How does your competition’s “best known” thing compare to what you’re best known for? Why do customers choose you rather than everyone else in your industry?

How are those two “best known” things different?

Is it the products you carry? Or do your products primarily come from the same manufacturers as your competition?

How about the services you offer? Are they the same or similar to what your competitors offer?

Beyond the products and services you sell, how much effort are you putting into distinguishing what you’re best known for? If you want to stand out, these things require serious thought and effort on a regular basis.

How do you stand out?

One thing that businesses use to differentiate themselves is how they manage deployment and delivery. Not just the speed, but little touches related to ramp up, appointment management, packaging, follow-up, etc.

For example, 10 years ago, only the best plumbers would slip little white Tyvek booties over their boots when they entered a client’s house. This sent a then-unique signal to the homeowner that the plumber cares enough to address a common complaint of repair people – that they track in dirt/mud and leave without cleaning it up.

Today, it’s unusual not to see the booties – and that’s a good thing.

Leaders get copied

In the short term, you should expect your smarter competitors to copy the little details you implement – particularly the easy ones. Leaders get copied. Keep paying attention to the little details that your customers appreciate and keep adding new ones. Tip: The details that look like a lot of work will be the things your competitors are least likely to clone.

You should expect some of these little touches to become your industry’s “best practices.” In other words, your average competitors will do some of them – and that’s OK. When you’re regularly focused on things that make you stand out, you’ll always be ahead of your industry’s “best practices” curve.

Don’t be shy about reminding your clientele that you’re the one who started doing ‘that little thing’ for your clients that everyone else has finally started doing, much less informing them when you add new things.

Why should they choose you?

The classic marketing question is, “Why should someone choose you over all other competitors?”

To help answer that question, you’d better have a story that helps people understand why you do what you do the way you do it. It’s important to set this context because the story helps them learn why they should use you and no one else.

Last week, I was talking to a software guy whose clients got infected by an email virus.

He noted that they’ve changed their policies to scan for viruses in their email. I mentioned that it was surprising that email scanning would be new behavior. His reply: “They’re a small company and this is the first time they’ve been attacked.”

This surprised me, so I asked if this company had ever heard of anyone getting a virus via email before, and if they used anti-virus software prior to this episode. He said “I don’t know, I just sell them a product and I’m not a retailer.”

If that isn’t a positioning problem, I don’t know what is.

Anyone or the only one?

Anyone can “just sell a product” or take an order. If that’s all you do, you can be replaced with an online shopping cart. Even if your product is unique to you, “just selling a product” is poor positioning.

It takes a special business to be the go-to vendor that a client turns to when they need advice. “I don’t want them contacting me about every little thing,” you might say.

Actually, you do.

If you’re the one regularly providing them with valuable info that helps them improve and protect their business, you’ll become their expert. You’ll be the one they turn to when they need advice and when they need help in the form of products and services.

You can take orders and be anyone, or you can be their only one.

DISCLOSURE: I am blogging on behalf of Visa Business and received compensation for my time from Visa for sharing my views in this post, but the views expressed here are solely mine, not Visa’s. Visit http://facebook.com/visasmallbiz to take a look at the reinvented Facebook Page: Well Sourced by Visa Business.

The Page serves as a space where small business owners can access educational resources, read success stories from other business owners, engage with peers, and find tips to help businesses run more efficiently.

Every month, the Page will introduce a new theme that will focus on a topic important to a small business owner’s success. For additional tips and advice, and information about Visa’s small business solutions, follow @VisaSmallBiz and visit http://visa.com/business.

Are you going out of business…intentionally?

Last week, I wrote about the most expensive minute of your life.

This slideshow should provoke a similar discussion. How does it make you feel about what you’re doing now?

Do you know what you’re missing?

On NPR not long ago, the Postmaster General spoke about the US Postal Service’s financial situation.

At the close of the interview, the Postmaster made a point of saying that he doesn’t pay any bills online, noting that it wouldn’t be right for him to do so. I suspect he probably feels that it wouldn’t be right if he used FedEx or UPS.

In fact, the truth is just the opposite.

Using these services would help him understand his competition’s offerings from a consumer perspective, and see where his agency is lacking, both in service and in their offerings.

If you aren’t at least familiar with the customer experience of a product/service that is taking you to the cleaners, you’re unlikely to understand what the attraction is much less the weaknesses and potential new opportunity ideas they might give you.

Even if you plan to stick with your current product, it will help you see new competitive angles, perhaps even new markets.

You aren’t likely to find all innovation within yourself. You also won’t find it all by studying your competition’s offerings, but it is worth the time to study the things customers have left you for – if you expect to get your mojo back.

All else is seldom equal

A question came in earlier this month… “How do I compete with businesses that can offer similar products/services at a lower cost?

The question is “Why are you depending on price to close your sales?”

It’s important to examine because *so many* people focus on it. In a weak economy, it’s natural for price pressures to be everywhere. Did you choose to compete on price, or did it sneak up on you?

If price is your edge, it should be an intentional, strategic choice. All else being equal, price will be the natural decision maker since buyer won’t have to sacrifice based on price.

The trouble is, all else is seldom equal.

Wiggling

In product sales, a competitor’s prices are usually lower because they sell more and can get better pricing from their suppliers. If supply costs are the issue, that’s something you can fix as your sales volume increases.

Until you get there, find some wiggle room. You may find that it makes price less important or even takes it off the table.

Wiggle?

There’s almost always some wiggle room in a price-sensitive situation for the underdog who is hungry enough to do more (ie: provide more value) than the “low price leader”. Remember, they’re the one totally focused on price and their entire business is built around it (think “WalMart”). Want to compete with WallyWorld on price? Only if you’re crazy.

Is price *really* the only way you compete with your competition? Not in my experience.

Whether you sell products or services, there are certainly those who shop solely on price, but there are always others who want more and don’t mind paying a little more for it.

Are there no other ways that you can add value to these products and services? Have you asked your customers?

Take some time to listen to your customers. I’m confident that if you listen, you’ll find a way to take the focus off price and put it on things that will matter a week or a month from now, when price is far less important.

Let’s talk about an example, something price sensitive and seemingly generic…like carpet cleaning.

Being seldom equal

I could call a dozen carpet cleaners who will do two bedrooms and a hall for $79 (or whatever). Maybe one or two of them would do a good enough job to earn a call back, even though I suspect all of them would do a good job when it came to cleaning the carpet.

Maybe your carpet cleaning skills are only 2% better than everyone else’s, or maybe they’re a little worse (yes, you need to work on that). It matters, but it isn’t necessarily what people highly value when they get this work done.

Your job is to be their carpet cleaner. The name that comes to mind when someone mentions a dirty carpet or that they need to get theirs done.

Not because you’re the one who happened to do it yesterday, but because you’re the only one they’d dream of calling after the way you handled it last time (and the time before, and the time before). You’re the one they talk about at church, in the aisle at the grocery store, at lunch the next day, on the golf course.

Your name comes up at all of those places because you did things no one else ever has and you did things in a way that no one else ever has. The next morning, they’re still reeling from the experience.

An experience? It can be. They may live in a tiny bungalow or a 12,000 square foot mansion. Either way, you can design and deliver a consistent end-to-end experience that they just can’t forget and can’t stop telling their friends about. Ask “What else can we do?”

Rethink your pricing

Despite improving what you deliver, it’s still worth putting thought into your pricing.

Companies often price their goods based on cost, the needs of their sales people, their catalog or their e-commerce store rather than in a way that attracts customers.

Your wholesale costs can’t be ignored, but you can restructure your pricing in conjunction with increased value and change the rules of the game.

The Right Kind of Work

SUPERSEDED
Creative Commons License photo credit: m.a.x

 

Productivity is pretty important, but it had better apply to the right sort of work.

Even if your employees are incredibly efficient at whatever they do, if their work no longer brings substantial value to the table, your business could evaporate.

The failure to automate the work that can and should be automated will eventually push your costs out of line with the competition. If some of the work you do now could be automated without losing quality, you have to take an honest look at it.

Remember…If you don’t address this issue, the marketplace will do it for you.

If you’ve ever had to lay someone off, you know it isn’t fun. When they walk out for the last time, they have to go home and tell their family and they have to figure out what’s next. It won’t feel any better that it happened because you weren’t paying attention – and it certainly won’t help you to be understaffed.

In order to avoid this, you have to look for places to become more efficient. It has to be done without losing quality, distinction or value. It’s possible that your choice becomes your new edge and that the staffer who was doing the low value work ends up managing the process that replaced their labor.

Are you still doing the right things?

Sometimes, automation isn’t enough. You realize (or the market tells you) that you’re doing the wrong work.

Every month, you have to ask yourself about your business and about your people, “Am I doing the right sort of work? If not, am I ready to? If not, what do I have to do to get there?”

If your work can be outsourced easily, you’re living on borrowed time.

If you’re a middleman adding zero value, you’re living on borrowed time.

You already know this if you’re paying attention and being honest with yourself. Even so, it’s nothing to be ashamed of unless you ignore it. Everyone faces market challenges but we don’t have to seek them out and invite them in for dinner.

There’s nothing that says you have to do what you do now, that your people can’t learn a new skill that someone places a high value these days or that your business can’t start making something that people will line up to buy.

The kind of work you should be seeking is the kind of work that produces real value and/or requires taking real responsibility for what you deliver.

Think about the vendors who serve your business. How many of them take real responsibility for the products and services they provide? Now consider the vendor you’d NEVER fire. You know why. They care as much as you do.

What if you don’t want to change?

“Boy, the way Glenn Miller played”…

Edith and Archie sang that song in the 70s about music from decades earlier, looking back upon what they saw as their golden years.

No matter how wonderful those golden years were, no matter what decade they were in, now isn’t then. Even in 1939, the handwriting was on the wall for Mike Mulligan and his Steam Shovel.

If you warmly recall that time two, three or even four decades ago when your area had low unemployment, the best jobs, more work than you could do and close to the highest per capita wages in the country.

Those decades are long gone. So are many of the high-paying jobs that were valued back then. Just like that steam shovel.

Everyone deals with it.

Many “middle class” jobs of a century ago (like coal and ice delivery) were steady jobs. They’re gone. It’s not much different with many of the jobs from 20-30-40 years ago.

If this describes your business, understand that I’m not trying to make light of that. I was trained as a programmer. 20 years later, tens of millions of people in India, the Ukraine, China and elsewhere can do what most “first world” programmers do for $10-20 an hour. I understand the competitive pressures.

If your work can be outsourced at $10-20 an hour, you have to ask yourself…”How much value do I really deliver?”

Take charge. Do the right work.

 

 

Borders and homemade apple pie

Recently, Borders book stores reported that they were closing their remaining 399 stores, including our local store here in Kalispell, Montana.

The store has about three months, enough time to liquidate their existing stock.

Survival of the fittest demands that some prosper, some get by and some die. Borders was not one of the fittest booksellers around, and few businesses have a chance of getting up after taking a one-two punch from Amazon and Apple.

Still, there are takeaways for the rest of us.

Homemade Apple Pie?

When you go to an online store, you KNOW when they’ve just tossed up a store so they can say they have one, kind of like how your mom knows when a local restaurant makes their own apple pie or serves a food service vendor pie.

In one case, it’s a labor of love. In the other, it seems like it’s just there because it has to be.

It’s not unlike Borders’ technology, eCommerce and eBook efforts. Once they got around to it, they served food service pie.

Who to blame?

They can’t blame Napster and peer-to-peer sharing. The music business can try, but you don’t see music acts starving. The same can’t be said for their the stuck-in-the-50-60-70s music management houses. Ask a Canadian or European about online music listening from US-based services. You won’t hear many kind words. Inertia and lack of vision killed many of them and took the local music store down with them. Napster was simply the messenger and peer-to-peer the medium. There’s no equivalent in the book business.

They can’t blame their store staff. In the Borders stores I’ve visited, the staff is well-trained and eager to help. Maybe reading fans self-select as Borders job applicants. Regardless of how their stores found their front-line employees, I can’t think of one who wasn’t helpful, knowledgeable etc. I can’t ever remember being tempted to write about them due to bizarre or off-kilter treatment there.

They can’t blame Amazon or Apple. Sure, they can point to the Kindle, the iPad, the Amazon and iBook store (and these two behemoth companies) as what killed them, but blame? Nope. Amazon and Apple offered a great example, partnering opportunities and millions of potential buyers.

Meanwhile, how many of your friends have a Kobo reader? Did you know Borders has an iPhone reader for their Kobo ebooks? Both are food service apple pie. When you’re competing with the likes of Kindle and iPad, you have to be easier, better or cheaper.

They CAN blame C-level management. Certainly Amazon and Apple were a major challenge, but without strategic vision and execution speed, the results were obvious and inevitable. As the Inc. article notes, they had a weak online retail presence and addressed technology change as if it was a chore, not a differentiator.

Management and strategic direction just happens to be your job. How are you addressing those two things?

Serve homemade pie

You may not have to worry about Amazon or Apple, but that doesn’t mean you have nothing to worry about.

Many independent bookstores have failed in the shadow of Barnes and Noble, Borders (and later, Amazon and Apple). But NOT all of them. What makes those stores different? Why are they “immune”? The reality is, they weren’t and still aren’t immune.

The survivors didn’t stare at the door, wondering why more people aren’t randomly deciding to enter their store. They did something about it. They transformed their businesses into one that Amazon or the Apple iBook store will never be: A specialty store delivering amazing personalized service while delivering a product few others will “trouble themselves” with, within the bounds of a business plan that is designed to survive an Amazon/Apple book selling world.

Each one of them uses their online presence as a strategic advantage.

Even if you sell tractors, chainsaws and weed whackers, people are going to search online for info about you and your products. If your online presence offers them the equivalent of the food service apple pie, their next purchase might be at Chainsaws.Amazon.com.

Does your business leverage technology, or use it only when forced to?

Serve homemade apple pie.

The hungry dog expects a bone

Pancho's Bones 02.09.09 [40]
Creative Commons License photo credit: timlewisnm

In almost every market, there’s someone who seemingly owns that market’s customers and prospects.

They’re the household name in that marketplace.

A common assumption is that they get so many customers that they may as well get them all.

To be sure, doing things that make you that household name is something I strongly encourage you to do. So what do you do if the market you want to enter already has a household name?

You’ve heard me suggest that you: Do more. Do it better. Do it more often. Do it differently.

The owner never has 100% of the market. If it’s a market you’re truly interested in, you need to figure out if there is enough left to make a business of it.

“Enough to make a business of it” has to last at least long enough to get a foothold so you can start to chip away at the leader and/or create new markets for what you do.

Can’t Get No…

For example, every single market includes customers who are dissatisfied.

They might not be that way because the market leader treated them poorly or failed to meet their expectations – though that’s certainly possible.

Every market has people who aren’t aware of the market “owner”, people who will intentionally choose someone other than the market leader just because that business is the leader, people who want something more/better/faster than what the leader does, people who want something different, people who have had a run in with the leader, and so on.

No matter what the reason is that you have them, the expectations thing is a big deal.

In the absence of someone setting expectations for them, people assume their personal expectations will be met – at whatever level they have them. Failing to set expectations almost guarantees dissatisfaction among some portion of the population you serve because their assumptions will be higher than yours.

Different levels are OK. Disappointment is not.

Because you’ll find different levels of expectations, you have an opportunity to create good, better, best, unbelievable, and rock-star class tiers of products and services. Still, your job is to set those expectations as appropriate so that even the lowest tier of service gets *at the very least* exactly what they expect.

How often do you get *exactly what you expect* from a business?

Think hard about that.

Now the hard question: How often do your customers get exactly what they expect from your business?