The Internal Customer Concept Can Be Bad for Business—and the Real Customer

I've never been a fan of the internal customer notion, i.e., that someone else inside my business is my customer instead of the ultimate consumer of my company's products or services.

The concept is a remnant of the total quality days when emphasis was placed on making sure that work was not passed on to the next person in the work flow without making sure it was flawless.  I like that concept.

But I don't like the notion that somehow as a member of corporate staff, my customer is Ms. Director of Operations and therefore I must meet her requirements and satisfy her needs. 

Who's the Real Customer?

Last week I was in a meeting with some corporate communication and human resources people who kept referring to their customers.  And I kept asking whether they were referring to internal or external customers.

The reason I was asking for clarification is that the needs of Ms. Director of Operations may or may not be consistent with the real customer—the people who contributes to the company's revenue stream when they buy the products or services.  So it might not always be in the real customer's or company's best interests to do what Ms. Director of Operations wants done.  Acquiescence to an "internal customer" can do damage to the business.

A recent FAA gaffe is a perfect example. Its customer service initiative was designed to promote friendlier relations with the airlines it regulates. The initiative encouraged FAA people to "satisfy airlines needs" rather than strictly enforce safety regulations.  The FAA and its people got confused. They thought the airlines, not the taxpayers, were their customers.

I see it happening all too frequently in the for-profit world. Some department head wants a green brochure by next Friday, never mind the fact that he hasn't thought through whether the green brochure will really meet a strategic objective or remove the root cause of a real problem. Never mind the fact that the cost of the green brochure may exceed any gain that it's capable of making. "I'm your customer, now give me my little green brochure," he whines. 

Nonsense!  If the real customer isn't willing to pay for it, it's waste, or muda, in the Lean world (More about Lean below)

Corporate staff people and line folks should view themselves as teammates or business partners working toward the same goals—meeting and where appropriate exceeding—the real customers' needs.  Both groups--staff and line--should focus outward--on the people who buy your products and services. That way everyone wins--the customer, the employees and the shareholders.

Lean and Six Sigma Must Blend the Hard and Soft to Build Real Workforce Capability

Lean and Six Sigma have made a lot of businesses better.  Lean's focus on velocity has enabled many companies to rid themselves of inefficient, time consuming, wasteful practices.  Six Sigma has taken quality to unheard of heights. 

Much of Lean and Six Sigma (often blended as Lean Six Sigma)involve the hard side of business: the formulas, measures and mechanics. The focus is on eliminating variation, which is good in most respects.  But focusing only on the hard side of business can sap the spontaneity, enthusiasm, creativity and passion from the organization.  Conversely, focusing only on the soft side or people aspects of business can create a happy atmosphere without improvements in anything important to keeping the organization healthy.

The best implementation of Lean and Six Sigma blends the hard and soft to create increased capability in the workforce. It avoids appearing as though it's "just another program," by baking the processes into the way work is done.

The soft side of Lean and Six Sigma focuses on building employee engagement.  Engagement isn't a synonym for involvement.  Engagement is a condition where people link their values to the organization (cognitive identity) and are willing to go above and beyond to help their organization win. Creating this condition is not easy.  Which is why soft is hard. But when you add this dimension to Lean and Six Sigma I've found that you can take your organization to places it never could have reached with Lean or Six Sigma alone.

Deliver What the Customer Wants, Not What You Want to Deliver

I abandoned the rental car company I've used for the past 20 years to try a new company that a couple of business friends have been praising.  They said the company "really focuses on customer service."

I found the opposite to be true.

I waited a half hour to get my rental car at Chicago's O'Hare airport. Returning the car required driving to an isolated spot well beyond the cluster of rental car parking lots. This consumed time from my day.  I don't hire a rental car company to consume already precious time.  I want them to save my time.

In Your Face

When I returned my car, I asked if they had a service, as most major car rentals do, where your car is waiting when you arrive at the lot, key in the ignition and in cold weather car running and warming.

"No," a fresh-faced young man told me.  "We pride ourselves on our face-to-face service. With our company, you have human interaction." 

Well...I get that. But what this company doesn't understand is that most business people I know don't get up in the morning hoping beyond hope that they will have a face-to-face encounter with someone at the car rental lot!  What we do hope beyond hope is that we can get to the lot quickly and be on our way quickly, sans waiting in line, idle chatter and other time-consuming annoyances.

Face to face interactions are, indeed, at a premium today.  But they're only means to an end. If a face-to-face discussion with my rental car folks is a barrier to meeting my real satisfiers (in this case using my time wisely), then it's an annoyance I don't need. 

So I'm back to my old rental car company today. They take me to my car so I can be on my way. They're selling more than a rental car.  They're selling an experience that includes a car, no hassle and no added time consumption. Business people don't really just buy rental cars.  They buy an entire experience.

Just because you think customers will welcome a new presumed feature or benefit doesn't mean they will. Ask them before spending valuable resources on something they don't value.

Quote of the Month:

"I can't understand why people are frightened of new ideas. I am afraid of the old ones.."   

John Cage, US Composer (1912-1992)