Minato-ku or the “Port Area” is a central part of Tokyo, which used to be harbourside for goods being delivered to the capital in ancient times. My three barbers’ stories are tales of customer service opportunities gone astray, in a country where customer service is the envy of the rest of the world. Each story brings forth a reflection on our own customer service and how we treat our buyers. My apologies to Gioachino Rossini for lifting the title idea for this piece from his famous opera.
Barber Number One worked in a men’s barber shop in the Azabu Juban shopping street which I frequented (and took my son too), for fifteen years. During that time a number of different barbers there took care of my hair as they came and went. One day, while trimming the hair on the back of my neck, the electric razor must have had a fault, because he cut my skin where he had been shaving my neck. My wife, being a typical demanding Japanese consumer, was appalled by this poor customer service and went there to complain about how they were treating her husband. Me being a laid back Aussie, I didn’t raise a fuss myself, but that didn’t stop my missus from wading in.
The youngish barber decided to argue the point with my wife and wasn’t immediately forthcoming with a satisfactory apology. My wife showed the offending damage on the photos on her phone and wasn’t backing off. One of the more senior barbers intervened and made the apology on behalf of the shop. Did that satisfy her? Not in the least. Why? Because she didn’t feel it was a sincere apology. She told me I should never attend that establishment again.
The lifetime value of a regular customer is high, especially in a crowded market. There was a management issue there because the service culture wasn’t correct. The interesting thing I understood was that barbers are hard to recruit these days, because not so many people want to join the trade. They felt they could afford to lose me as a regular over fifteen years or more but they couldn’t afford to lose the barber. The point though is where do you draw the line around the culture of your service? What are you saying is acceptable behaviour to the other staff? When things go wrong, this is when the real culture of your organisation is revealed.
Barber Number Two belonged to a well known chain of successful barber shops and was introduced by my wife as an appropriate alternative to the previous bloodthirsty razor wielding maniac she disapproved of. I wasn’t all that keen on this Roppongi establishment, once Covid-19 hit, because it was a rather confined space. In the centre of Tokyo, a lot of companies are using what were once apartments as business premises, so the layout and size can be quite small. Having trained this young guy on how I like my hair done, I persevered, Covid or otherwise. I called to make an appointment only to be told he had been transferred to one of their shops on the outskirts of Tokyo.
Staff movements happen, but how we handle them is another matter. Did my barber call me and introduce his successor? No. How expensive would that have been? Again, no one was thinking about the lifetime value of the customer here. I had invested in educating him about what I liked and so I would not switch easily unless I had to. This is another management failure, where handovers are not being properly choreographed. Customer continuity has a distinct value to it.
Barber Number Three is my new barber and belongs to a shop which has been continuously operating on that same spot for the last 203 years, again in the Azabu Juban area. It must be the oldest barber shop in Japan and probably the world. The young guy cutting my hair showed me to the chair and started asking me about how I liked my hair done. Red flag there. He didn’t introduce himself to me, and I had to ask him for his name. Why would that be the case? I asked him about the history of the shop and it was clear he didn’t know much beyond it was 203 years old. He didn't know if they had famous people over that time as customers. I asked him how they traditionally cut hair in Japan, before western scissors arrived in the Meiji era – he had no idea.
So, this was really just the same as any other barber shop, because the management has not educated their staff about the heritage value of their offer. I was a new client, so here was the chance to make me a permanent client. In a sea of so many competing establishments, I thought what a waste of an opportunity to differentiate themselves, beyond just having a sign in the window, that says they are over 200 years old. There was no narrative around that fact, no great stories attached to it, no buzz, no particular vibe.
The common theme across these stories is how to differentiate your service in highly competitive industries. There were also poor levels of understanding about the lifetime value of a customer on the part of the staff. These were leadership issues and the solutions were basically cost free and simple, yet they couldn’t pull it off. So, let’s take another cold hard look at our staff’s service provision and particularly at the service culture we have created. Are we all doing what we are supposed to be doing? Do the staff understand these concepts or are they just doing their daily job? We often presume our people know these things, but perhaps we need to remind them more often.
There is no doubt that the pandemic has made it very fraught to find new clients in Japan. The new variants of the virus are much more contagious and have already overwhelmed the hospital infrastructure in Osaka, in just weeks of the numbers taking off. Vaccines are slow to roll out and so extension after extension of lockdowns and basic fear on both sides, makes popping around for chat with the client unlikely. We forget how much we give up in terms of reading and expressing nuanced ideas through not having access to body language. Yes, we can see each other on screen, but it just isn’t the same.
In this situation, which looks to be scheduled to last until early 2022, we have to work on new skills. We know about storytelling, word pictures and refined word selection for better communication. Knowing about it and doing it though, are ridiculously different. I know, because we teach this stuff. I can explain the formulas and the methodologies and the class participants get it, but doing it is often a struggle. Obviously practice with strong coaching is the cure.
We will be beginning our conversation with a client online and this could be a new client or more likely, a new person down at the client’s company, as every April the wheel of fortune is spun and the HR department nominates who goes where. The explanation of who we are and what we do and why you should deal with me (and by extension my firm) is a critical juncture. Jumping straight into the product catalogue tour is dumb. This made little sense when we were sitting knee to knee, but makes absolutely no sense when we are screens apart.
Instead, we need to get their permission to ask cogent questions, which will ultimately unveil needs. There is a simple formula for doing this, so there is no excuse why every salesperson should not be doing this. Firstly we need to explain who we are and what we do. This is a great opportunity to build your firm’s credibility with the client. We shouldn’t forget to weave our history into the narrative and make it personal. This is not a history lesson on the company but a base on which to build trust and we have to make sure we are represented in this part of the storytelling.
For example, “We are global soft skills training experts and Dale Carnegie launched the company in New York in 1912. The fact that ninety percent of the Fortune 500 companies use us, shows that the most discerning firms recognise the value we bring. We have stood the harsh test of time globally and in Japan too, since we established operations here in 1963. We are way beyond all of that ‘it is American so it won’t work in Japan’ stuff, as we have localised the content and 80% of our delivery in in Japanese. I have been with the firm for the last eleven years and have seen the impact our training has across all industries”.
In this forty second burst we have packed the content to the gunnels with credibility statements and emotive words. This initial reference point tells the buyer we are a safe option. “Nobody got fired for choosing Dale Carnegie Training” type of idea.
Next, we tell a story about a client. They had a certain issue, preferably one we think might be shared by this client and we explain the solution applied and the result achieved in a very micro and brief manner. We emphasise the pain this problem was causing for a particular decisionmaker inside the company, someone in a similar position or role to our interlocutor. We briefly explain what we did and then we dwell on the perceived value of the solution formed from the client’s point of view. We should bring back pieces of their dialogue with us, to fully express their happiness that the problem was fixed, so that the buyer we are in front of on screen, will have confidence in our suggestions. This is a reference point for the client that we can help them.
Finally, we say, “Maybe we could do the same for you. I am not sure, but in order to find out, may I ask a few questions”. And then we say nothing. Wait until they speak – don’t add, or clarify, just sit there in total silence until they give an answer. Once we have their permission, then we can dig in and see if we have a solution for their problem. This is a reference point that says the buyer is now willing to share a lot of confidential information with us. If we don’t get a match between what we do and what they need, then no slamming of the square peg into the round hole – we get off that call and we hold another potential business discussion with another buyer.
The pandemic has made the whole art and science of selling more complex, but there are some fundamental basics we have to get right or nothing will go our way. Business is hard to find at the moment, but never find bad business – the money won’t be worth the trouble and you only tarnish your personal and professional brands. There are plenty of clients who have problems we can help them with, so we need to be concentrating our efforts right there.
Japan is a very hierarchical society. I am getting older, so I appreciate the respect for age and stage we can enjoy here. Back in my native Australia, older people are thought of having little of value to say or contribute. It is a youth culture Downunder and only the young have worth. “You old so and so, you don’t know anything” is reflective of the mood and thinking. As a training company in Japan, we have to be mindful of who we put in front of a class and in front of clients. If the participants are mainly male and older, then it is difficult to have a young female trainer or salesperson allocated to that company.
That young woman is going to be talented and effective as a trainer because our trainer development system is so demanding. She is also going to be highly skilled in sales, because we teach sales. It doesn’t matter. The HR people or the line manager complains, because the class members don’t feel young people have anything to teach them or are qualified to sell them anything.
I was reminded of this recently when trying to allocate trainers and salespeople for certain companies. We have a lot of internal trainers and salespeople who are under 35 and a few who are over 45 and so there is an imbalance. One of my senior guys has suddenly quit. He was performing both functions, so it is a double loss. As our older team members age, they have seen their kids leave the home and then have their aged parents to worry about. The life of a small business owner is always like this. There is never an equilibrium or a period of extended stability with staffing. Just when you think you have it working like a smoothly oiled machine, in goes a wrench and the whole thing comes to a shuddering halt.
The transfer of responsibilities for clients between staff is not that easy. It goes both directions too. We have staff who build strong personal relationships with counterparties and then their interlocutor is moved to another function and a replacement appears. Often, this can mean the end of the relationship with that firm, as the new broom have their preferred suppliers and you are not one of them.
You also imagine that within the client big firms there is a seamless transfer between their staff for that part of the business. Not so. I was dealing with a big multi-national and to my amazement the new person had absolutely no knowledge of what we had been doing for them in terms of training. Obviously there was no hand over of the tasks and things have been going less smoothly as a result.
Normally in Japan, we try to recruit younger people, however we have to also be flexible and look to hire older staff, the venerable grey hairs who can gain the respect of the clients. Trying to maintain the right balance between the generations is not that easy. Also, anytime we have to replace someone as a salesperson, then we can draw a big red line diagonally across each month of the calendar for the next 18 months. They will not be particularly productive for that period of time. Learning the business, really understanding the products and our methodology takes a lot of time. They also have to build their own client base and that doesn’t happen in a hurry.
It takes about the same period of time to see someone make their way through the Dale Carnegie labyrinth of trainer certification. It is an arduous, challenging process and not everyone is suited to become a trainer. The skills for selling and training have similarities but there is also that X Factor of personality needed to become accepted by clients.
The infamous and elusive Plan B needs to be dusted off and then we can move into action. The problem is we don’t spend any time thinking about negative circumstances that require a Plan B. Also, the mix of possibilities across the range of staff is so complex, how can you effectively anticipate what happens next. Nevertheless, I quickly realised I need multiple Plan Bs ready to go, in case of changes in the team complexion. I usually spend a minus amount of time thinking about those myriad possibilities, because I am too busy doing other things in the business.
I will need to do better in this regard and have an update process scheduled throughout the year, rather than leaving it to surprise announcements of staff departure, to stir me to action. How about your case? How are your multiple Plan B development scenarios going?
When we read commentary about how we should be recruiting A Players to boost our firm’s performance, this is a mirage for most of us running smaller sized companies. If you are the size of a Google or a Facebook, with massively deep pockets, then having A Players everywhere is no issue. The reality is A Players cost a bomb and so most of us can’t afford that type of talent luxury. Instead we have to cut our cloth to suit our budgets. We hire C Players and then we try to turn them into B Players. Why not turn these B Players into A players?
This is a contradiction isn’t it, because we always striving and thrusting for the best possible results. If we invest and take a B Player to A Player status, there is a very strong likelihood someone else will admire our handiwork and poach them from us. We have all heard that truism about “what if I develop my people and they leave”, countered with “what if we don’t invest in them and they stay?’. This is correct up to the point of your cash flow reserves. We are not talking about having useless people staying on, sucking up our cash resources.
B Players are very capable and are worth investing in to become even more capable. The additional investment to turn them into A players though, if they have that capability in the first place, may be a case of over investment. Having large portions of your revenue centered around a very small number of clients is recognized as a very dangerous position to be in. In the same way, having one or two people accounting for a disproportionate amount of firm income or expertise is also dangerous.
When the top performers leave it can be very disruptive. Most bosses do not sufficiently explain their departure to the remaining staff. In this vacuum, the other members of the team worry about what the A Players know that they don’t. Is the firm going down and are those most capable of getting another job jumping ship? Will an exodus of A Players introduce fragility into the business? The loss of the contribution of A Players is bad enough, but their departure can be interpreted by staff in ways bosses would never imagine. That is why no matter who leaves, leaders always need to carefully reassure everyone else, that the firm is fine and this was a personal choice by one individual. Don’t allow rumours, imaginings and guesswork to creep into the equation. We need to own the narrative every time.
I have a very carefully designed spreadsheet which allows me to track my sales team’s performance. It includes all of their costs and related costs, to give me a clear picture of what each sales person’s contribution to the company actually is. This allows me to see the amount of leverage they represent. I want to know what is the multiple of their revenue return against their total cost. The bigger that multiple the better, up to a point.
If the multiple is fantastic, but the overall income volume generated is too low, then we can go broke in short order. So there has to be a balance between raw volume of funds coming in and the effectiveness of return on their efforts. This is where B Players can excel. They produce multiples which work for the business and generate a positive profit result. The A Players can have bigger numbers, but their multiples may not be that outstanding. They also point to their big numbers and say rude things like “I want more money”. That pay rise to keep them will hammer the attractiveness of their multiple pretty quickly.
A Players are like an oasis in the desert. The vision through the heat haze can lure small business owners to invest, when that may not be the best idea. It can be better, over time, to build the ranks of the B players from the within the ranks of the C Players. This is the classis bootstrap approach to building companies. We all do it at the beginning don’t we, but then with some success comes hubris and we start to imagine we can extrapolate our genius. Before you know it, the multiples have swung in the wrong direction. For this reason, it is wise to track the multiples down to the last cent and determine to keep on tracking.
When you are small, love your B Players and hold them close. Invest in them, but don’t over invest. Where is that elusive line of demarcation? Experience watching newly minted A Players, who were once your B Players, heading for the exits and more money, helps to establish it in your mind. Monitoring the multiple components will create an algorithm indicating how much is enough and how much is too much. We won’t always get it right, but we can get pretty close if we pay careful attention to the issue. Remember this is art, but with big servings of science tossed into the mix.