ISSUE:72

W W W. SM E . ASI A

ISSUE:

72 COVER STORY

ENTREPRENEUR

08 TRANSFORMING EXPERIENCE SOLUTIONS

THIS WEEK’S FOCUS

14 GLOBALISATION REDEFINED AS MANUFACTURING MOVES CLOSER TO HOME THIS WEEK’S FOCUS

10

17 GOODMORNING GLOBAL GROUP EXPANDS INTO INTERNATIONAL HALAL MARKET

SVB COLLAPSE: THE IMPACT

NEWS

INSIGHT

06 THE OVER EMPHASIS OF UNICORN

19 FIVE PROBLEMS TO OVERCOME WHEN BUILDING A SUPERIOR SERVICE CULTURE

W W W. SM E . ASI A

S ME & E N T RE P RE NE URS HIP MAG A Z INE is publishe d by B usine s s Me dia In t er na t ional . Is sue s ar e published weekly online at www.sme.asia. All rights reser ved © 202 1 Business Media International.

04

EDITOR’S NOTE

WHAT HAVE YOU DONE FOR YOUR COUNTRY? hen US president John F Kennedy said, “ask not what your country can do for you, ask what you can do for your country”, it was against a backdrop of a divided country – when partisanism was at its peak. Kennedy himself won the presidency with the smallest margin ever at that point in time. His inaugural speech and the now world-famous line, helped cemented his reputation on both sides of the divide. Fast forward 60 years, and we are at a very similar turning point. Everyone seems to have an opinion of how the

W

country should be run. And no one else’s opinion matters. Despite being brought up to view issues from multiple perspectives, many of us chose to believe what we were told. Once we have established our affiliations, we seem to have lost all our intelligence and allowed our actions and thoughts to be dictated by our emotions. There is nothing wrong of course, with having strong opinions on how things are run. As entrepreneurs, we are accustomed to forming opinions and making decisions. However, when these strong opinions begin to affect our

SME & ENTREPRENEURSHIP MAGAZINE IS PUBLISHED BY BUSINESS MEDIA INTERNATIONAL. ALL RIGHTS RESERVED. EDITORIAL ENQUIRIES editor @ smemagazine.asia SUBSCRIPTION ENQUIRIES circulation @ smemagazine.asia

Datuk William Ng is Group Publisher and Editor-in-Chief of Business Media International. [email protected] williamngpage



DESPITE BEING BROUGHT UP TO VIEW ISSUES FROM MULTIPLE PERSPECTIVES, MANY OF US CHOSE TO BELIEVE WHAT WE WERE TOLD.

ability to see the big picture, then we are putting a lot of things at risk.

WHAT YOUR COUNTRY DID FOR YOU

Many entrepreneurs achieved success without much support from the government. Indeed, many of these same entrepreneurs pray that the government stay outside of business. But lest we forget, without a strong government, and especially a businessfriendly government, we will not have achieved the economic growth and stability that has allowed for our businesses to grow and prosper.

While we may think there’s a better way to govern the country, or better people to do so; we cannot enforce such thoughts upon others who do not share the same opinions. It is easy to find fault. Unpaved roads are only dangerous when we drive recklessly. Higher electricity costs will bite more when we have been taking them for granted. There are indeed easy solutions to most things. When we find fault in everything the present government does, from its legitimacy to every policy introduced – we are ultimately putting our very own businesses at risk. It’s self-sabotage of the highest order. If we treasure the harmony that has held this country together, then we need to constantly ask what ourselves what are doing to promote that same harmony. So, while we continue to challenge the actions of the present government, ask ourselves what we have done for this country.

MALAYSIA The Campus, 6th Floor, Kelana Parkview Tower, Jalan SS 6/2, 47301 Petaling Jaya, Malaysia [T] +603 7803 0499 HONG KONG 2/F 625 King’s Road, North Point, Hong Kong [T] +852 5808 2366 SINGAPORE 20 Cecil Street, #05-03 PLUS Singapore 049705 [T] +65 3158 9809 THAILAND 331, 331/1-3, The Pilot Building, 9th Floor, Silom Road, Bangrak, Bangkok 10500 [T] +66 2235 0570 / 1

THIS WEEK IN NEWS

07

The Over Emphasis of Unicorn

Being a unicorn seems to be an obsession among entrepreneurs, especially within the startup community. Unfortunately the obsession has also spread to our policymakers – many of whom have never run any business their entire life. We have even set out a NATIONAL target to have unicorns in the 12MP.

FarmByte Food Hub Aims to Revolutionise Johor’s Agrofood Industry

The FarmByte Food Hub, a new technology-driven agrofood ecosystem, has been established to consolidate and build the resilience of the agrofood sector, increase agricultural output, and uplift the livelihoods of farmers and the wider community.

Malaysia is 10th in the Top 20 Countries Targeted by Malicious Mails The

Corporate Initiatives in Budget 2023 Support A Sustainable Economy: ICAEW

Budget 2023 is designed to try to ensure that businesses are prepared to ride digital and ESG waves post-pandemic, it said.

malicious mailings that Malaysian users received were disguised as business correspondence. To get the recipient to open the attachment, cybercriminals will try to convince them that the content is businessrelated information, like commercial offers or invoices, or bank transfer slips.

08

ENTREPRENEUR

TRANSFORMING EXPERIENCE SOLUTIONS

T

ASA Solutions Sdn Bhd (TASA) is a Malaysian based BPO-ICT service provider that has transformed its “Experience Solutions” into four business verticals, namely Customer Experience (CX), User Experience (UX), Supply Chain Experience (SCX) and Management Experience (MX). The group which has its headquarter in Malaysia has a regional presence in Singapore, Australia and Sri Lanka, where over 600 employees support global and local brands across a set of nine industry verticals. TASA’s focus is to deliver value to its clients and partners by supporting their growing market presence through fit-forpurpose transformation and operational optimisation whilst delivering an excellent experience at every encounter. “We are cognizant that driving excellence cannot be achieved without an engaged workforce, and one of our strategic pillars is to drive engagement through activities, communications and living our values and strategy. “To continually grow and prosper, we believe that the community we operate

in, has to also grow and prosper,” Jerome Travis Martyn, Founder I Group CEO told SME. Towards this end, TASA also actively participates in CSR initiatives and activities. Commenting on TASA’s achievements and unique selling propositions, Martyn said that given its growth trajectory, the company has achieved many successes, both qualitative and quantitative. “Focusing on our key achievements, our cumulative to-date revenue, as of December 2022, contributing to our top-line numbers is USD 10 Million. During this period our client base has expanded from 1 to approximately 43 global and local clients with 0% client churn and a healthy pipeline to support further growth,” he said. TASA, which started with one employee, now has 600 employees across its four (4) experience verticals, supporting clients in a growing list of countries and industries, and in an expanding landscape of technologies. As a nascent company that started during the economic uncertainty precipitated by the global Covid pandemic, TASA continues to experience growth underpinned by its ethos of driving value through transformation, delivering a great experience at every touchpoint and driving excellence. Therefore, Martyn noted that the SME100 award is testimony that the company values are core to its success, as is its management and execution of the strategies. He explained that TASA stays relevant by incorporating a key principle of continuous improvement. “This is holistic and encompasses the strategic,

ENTREPRENEUR

operational, employee engagement and CSR aspects of our company mission. “For example, as we look forward, we have identified key opportunities in a growing landscape of industry verticals, both locally and internationally, where we can add value and drive growth. To support this, we will be re-balancing our portfolio, market focus and resources,” said Martyn. TASA promotes integrity in its business

ICT REVENUE MARKET SHARE (IN%) BY LEADING VERTICALS: 2023

09

engagement by adopting an open-book Business Model. This allows its clients to appreciate the resourcing and cost levers and be strategically involved in optimising and operationalising their engagements. “Fundamental to all our engagements and our use of technology is our key value proposition of Delivering an Excellent Experience at every touchpoint, be they within TASA or with our clients and partners.”

MARKET GROWTH RATE (CAGR) OF LEADING 5 IT SOLUTION AREA: 2018-2023

10

COVER STORY

espite promises from US President Joe Biden and other international leaders, the shockwaves from Silicon Valley Bank’s failure caused significant movements in bank shares as investors were concerned about their financial stability. An index of credit risk in the eurozone banking sector rose to its highest since mid-July, as worries about contagion risks from the failure of two US banks reinforced investor concerns about the impact on

D

BY DAFIZECK DAUD

lenders of increasing interest rates. After recent harsh losses, US regional banks recovered in premarket trade, with First Republic Bank shares up 58%, a day after reaching an intraday record low of US$17.53 (about RM80). The energy markets were also not spared from the effects with the 50-day implied volatility rate of oil jumping some 16% amidst the ongoing chaos surrounding the collapse of SVB and Signature Bank, the most since the beginning of the Russia-Ukraine war. The Federal Reserve’s balancing act may make the oil markets more volatile once again

COVER STORY

11

Malaysia plunged following fears of the spread of the banking crisis. The benchmark FTSE Bursa Malaysia KLCI Malaysia fell sharply by 21.42 points or 1.507 percent to 1,400.41 points on 14 March. The main Asian markets also received selling pressure with Hong Kong’s Hang Seng Index falling 369.33 points or 1.875 percent to 19,326.64; Korea KOSPI index decreased 1.966 percent; Japan’s Nikkei 225 index fell 2.06 percent; Thailand’s SET index fell 1.29 MOODY’S DOWNGRADES US BANKS percent; the Philippine PSEi index fell 1.075 Moody’s Investors Service downgraded the rating of the US banking system from stable to percent and the Indonesian Composite index negative after the collapse. “We have changed fell 1.455 percent. Investors are understandably our outlook from stable to negative worried about potential contagion on the US banking system to On March 10, 2023, reflect the drastic deterioration Silicon Valley Bank, a to other lenders worldwide which in its operating environment Santa Clara, California- have not been entirely dispelled by Biden’s efforts to reassure following the deposit activities based institution conducted by SVB, Silvergate that had served the markets and depositors or Bank and Signature Bank (SNY), tech sector for three emergency US measures to shore and the failure of SVB and SNY,” decades, went down due up banks by giving them access Moody’s said in a report. to a classic bank run. to additional funding. Europe’s banking index The bank was taken over initially dipped but rebounded by state authorities, BIGGEST US BANK TO FAIL SINCE 2008 to increase 2.7%, with some SVB is the biggest U.S. lender who appointed the claiming that banks in the area to fail since the 2008 global Federal Deposit were less susceptible after Insurance Corporation financial crisis – and the the index registered its largest second-biggest ever. William as receiver. percentage fall in more than a Chittenden, associate professor year on 13 March 2023. of finance at Texas State University, “A critical difference between the explained what happened and whether European and US systems, which will limit the Americans should be worried about the impact across the Atlantic, is that European safety of their financial system. banks’ bond holdings are lower and their Why did Silicon Valley Bank collapse deposits more stable,” Moody’s said. so suddenly? When Credit Suisse indicated in its 2022 The short answer is that SVB did not annual report that client “outflows steadied have enough cash to pay depositors, so to significantly lower levels but had not yet the regulators closed the bank. The longer reversed,” its shares initially dropped as answer begins during in the pandemic when much as 4.5%. Yet, the bank’s stock rose SVB and many other banks were raking in 1.2% in the afternoon. more deposits than they could lend out to Major Asian stock targets including borrowers. In 2021, deposits at SVB doubled. as higher inflation for a longer period of time undermines demand growth but also reduces supply prospects. The headline CPI for the United States came in at 6% in February. The open interest in ICE Brent contracts fell by nearly 35,000 lots (equivalent to 35 million barrels) in just one day of trading on April 13, whereas the reaction in WTI NYMEX was much more muted.

12

COVER STORY

He said: “But they had to do something with all that money. So, what they could not lend out, they invested in ultra-safe U.S. Treasury securities. The problem is the rapid increase in interest rates in 2022 and 2023 caused the value of these securities to plunge. A characteristic of bonds and similar

securities is that when yields or interest rates go up, prices go down, and vice versa.” The bank recently said it took a US$1.8 billion hit on the sale of some of those securities and they were unable to raise capital to offset the loss as their stock began dropping. That prompted prominent venture

WHAT WENT WRONG AT SVB: A TIMELINE During the funding boom of 2021, SVB amassed large deposits -- $189 billion in 2021, which later peaked to $198 billion It later invested heavily in bonds, which were being issued in a low-interest rate scenario. SVB’S balance sheet for 2022-end showed $91.3 billion of securities In 2022, the US Federal Reserve started raising interest rates, which drove down the value of bond holdings issued at lower rates Rising interest rates also led to venture capital firms cutting fewer and smaller cheques to startups triggering a funding winter As funding depleted, deposits made by startups in institutions such as SVB also started declining, forcing the bank to sell securities at a loss to cover up On Wednesday, SVB announced it had sold $21 billion worth of bond assets at a loss of $1.8 billion It also said it was raising $2.25 billion via a share sale SOURCE: SVB, ET RESEARCH

WHAT’S THE IMPACT? Fearing insolvency, number of large investors like Coatue Management, Y Combinator, Peter Thiel's Founders Fund are advising their portfolio startups to withdraw deposits from SVB SVB has urged its customers to not spread panic and withdraw money from the bank

COVER STORY

capital firms to advise the companies they invest in to pull their business from Silicon Valley Bank. This had a snowball effect that led a growing number of SVB depositors to withdraw their money too. The investment losses, coupled with the withdrawals, were so large that regulators had no choice but to step in to shut the bank down to protect depositors. From a practical perspective, Chittenden said that the FDIC is now running the bank. “It is typical for the FDIC to shut a bank down on a Friday and have the bank reopen the following Monday. In this case, the FDIC has already announced that the bank will reopen on March 13 as the Deposit Insurance National Bank of Santa Clara.” The remainder of a depositor’s funds, which is essentially anything over the FDIC cap of $250,000 for deposits at SVB, may or may not be returned. The FDIC will issue these depositors a “Receiver’s Certificate” for the portion of their savings that is not insured. Some of the uninsured deposits will be paid by the FDIC, and other payments may be made when the regulator sells off SVB’s assets. Uninsured depositors may not get any further compensation, however, if SVB’s investments must be liquidated at a considerable loss. Prior to the failure of SVB, the most recent bank failures occurred in October 2020, when both Almena State Bank in Kansas and First City Bank of Florida were taken over by the FDIC. Both of these banks were relatively small – with about US$200 million in deposits combined. SVB was the biggest bank to fail since September 2008, when Washington Mutual failed with US$307 billion in assets. WaMu fell in the wake of the investment bank Lehman Brothers’ collapse, which nearly took down the global financial system.

0113 1

RISK OF FUTURE COLLAPSE With US$209 billion

in assets at the end of 2022, SVB was the 16th-largest bank in the country. Although it may seem like a lot, just 0.91% of all banking assets in the United States are represented by it. There is a minimal chance that the bankruptcy of SVB will affect other banks. Notwithstanding this, the failure of SVB does underscore the danger that many banks’ investment portfolios carry. The value of the investment portfolios of American banks will continue to decline if interest rates increase, as the Federal Reserve has predicted they will. Although these losses are only on paper and won’t be recognised until the assets are sold, they can nonetheless raise a bank’s total risk. Each bank will decide how much the risk will increase. The failure of Silicon Valley Bank (SVB), a US bank, may have some effects on Malaysia, albeit on a smaller scale, depending on how the development impacts the nation’s capital and financial markets. The good news is that most banks currently have enough capital to absorb these losses – however large – in part because of efforts taken by the Fed after the 2008 financial crisis to ensure financial firms can weather any storm. Malaysia Minister of Economy, Rafizi Ramli, said that Malaysia may not be directly affected by the collapse of the 16th largest bank in the US since no Malaysian company has deposits in the bank. “On average, only big start-up companies in Silicon Valley have an account at SVB,” he said in a tweet in response to a question about the possibility that a wave of bank collapses in the US could hit the financial market in this country. As such, we can rest easy for now as the banking system is sound.

14

THIS WEEK’S FOCUS

GLOBALISATION REDEFINED AS MANUFACTURING MOVES CLOSER TO HOME BY JENNIFER LEE

ew research has revealed a major shift in globalisation, as companies rush to move manufacturing closer to home to protect against supply chain disruptions, while increasingly protectionist policies are breaking the world into trade blocs.

N

The latest Trade in Transition study, commissioned by DP World and led by Economist Impact, captured the perspectives of 3,000 company leaders as they navigate the latest disruptions to global trade – from the conflict in Ukraine to inflation. The global survey included the views of 1,000 executives

THIS WEEK’S FOCUS

in the Asia-Pacific and Australasia (APAC) markets of Australia, China, India, Indonesia, Japan, the Philippines, and South Korea. Geopolitical uncertainty is also guiding the decisions of business leaders, with 97% of the companies surveyed in APAC – and a similar 96% globally – planning to make changes to their supply chains due to global events. In the space of just a year, the number of companies in APAC, and globally, shifting their manufacturing and suppliers – either to their home markets or nearby – has more than doubled compared to 2021. This is driven mainly by efforts to reduce both costs and the risk of disruption. However, businesses are using a variety of strategies. In reconfiguring their supply chains, 51% of APAC executives said they were diversifying their supplier base, against the overall average of 47% among their peers globally. In line with trends seen across the world, one in three (29%) APAC respondents also said they were decreasing the length of their supply chains due to geopolitical events, while 33% of businesses in the region plan to expand into more stable and transparent markets to hedge against uncertainty.

INFLATION THREAT Globally, 30% of the

executives cited the persistent threat of inflation as having the most significant negative impact on trade over the next two years. In APAC, a quarter of companies cite rising inflation as a top concern.

15

Inflationary pressures are seen in input costs – from supply shortages to transport, through high energy costs and shipping capacity constraints. In a scenario of monetary tightening, companies across Europe, North America and Asia-Pacific anticipate exports to be 1% lower than under a business-as-usual situation due to decreasing production and demand.

A FRAGMENTING WORLD The fragmentation

of the world into trade blocs was also cited by 8% of executives in APAC, and 10% of global respondents, as limiting the growth of international trade. Beyond the war in Ukraine, respondents also believe US-China tensions and cyber warfare are preventing the efficient functioning of economies worldwide. This is leading to increasingly protectionist policies by governments around the world, leading to further fragmentation of the global trade system. Against this backdrop, there is consensus among firms globally that technology holds the key to building more resilient supply chains. Some 85% of APAC respondents said they were already using or started using digital platforms in 2022 to enable direct business with customers or suppliers. Another 82% were using Internet of Things (IoT) solutions to facilitate the tracking and monitoring of cargo. Businesses in the region are also driving the adoption of advanced technologies, with 69% using artificial intelligence, big-

16

THIS WEEK’S FOCUS

OPTIMISM ABOUT GLOBAL TRADE

REASONS FOR OPTIMISM ABOUT GLOBAL TRADE IN 2023 AND 2024

SOURCE: ECONOMIST IMPACT

data and predictive analytics to gain realtime insights and forecast disruptions, and 67% using blockchain to improve traceability, security and data protection. This is ahead of the global average of 62% for both technologies. As businesses find ways to respond and grow, they are altering supply chains to build resilience – either through diversification, regionalisation, or reshoring. Companies in North America and Europe are most likely to outsource more than half of their services within their region. This is followed by 40% of companies in South America, 36% in the Middle East, 32% in Asia-Pacific and 18% in Africa, outsourcing within their regions. Glen Hilton, CEO & Managing Director, DP World Asia Pacific & Australasia, said:

“Apart from rising concerns over inflation, global geopolitical trends will continue to pose a key challenge to Asia-Pacific’s trade landscape. However, companies are not shying away from risk, and are instead responding in two key ways. The first is undertaking more due diligence of their supply chains, and the second is expanding into new and stable markets. Asia-Pacific is also ahead of the global average when it comes to implementing new technologies such as artificial intelligence and advanced automation, and these drivers will continue to catalyse innovation and boost supply chain resilience for our region. The latest Trade in Transition data bodes well for companies in our region and their ability to cope with the challenges to come.”

THIS WEEK’S FOCUS

17

GOODMORNING GLOBAL GROUP EXPANDS INTO INTERNATIONAL HALAL MARKET BY RAJA AZURA RAJA NAZREEN

COLLABORATION TO BRING NUTRITIONAL MULTIGRAIN PRODUCTS TO THE MARKET AND STRENGTHEN ITS PRESENCE IN THE GLOBAL HALAL INDUSTRY for years, we’ve shared that vision through oodMorning Global Group Holdings Bhd, one of Malaysia’s largest nutritional multigrain companies, has signed a Memorandum of Cooperation (MOC) with a leading food distributor, DagangAsia Network, to expand its market reach in the halal segment. Leveraging DagangAsia’s halal online marketplace, the partnership will see GoodMorning Global bring its multigrain health beverages and plant-based products to an international halal network, namely in Malaysia, Indonesia, and the Middle East. The partnership will expand into overseas markets, specialising in the marketing and distribution of plant-based, complete nutrition powder beverages for families and children of all ages. The strategic partnership will position both Malaysian brands to be consumer goods market leaders in the halal industry, forecast to be the largest emerging market within the next five years valued at RM420 million. The MoC was signed by GoodMorning Global executive chairman and founder, Dato Dr. Lim Sin Boon, Group CEO/chief finance officer, Dr. Charles Cheng Fang Chin as well as DagangAsia Network Holding’s CEO, Sam Hwang and chief operating officer, Tony Er. Dr. Lim said: “Our brand is a strong advocate for a healthier way of life, and

G

multigrain drinks. The halal market has always been a pool that we’ve been looking forward to exploring. With DagangAsia Network’s influence in the halal market, we believe that this collaboration will help us bring naturebased goodness to even more consumers. “With this collaboration, our team also hopes to encourage healthier eating with our nutritious berry multigrain beverages in a larger market outside of Malaysia.” DagangAsia, one of the largest B2B halal e-marketplaces, will also be promoting GoodMorning Global’s products on its online platform. DagangAsia Network Holding’s Hwang said: “DagangHalal.com is our most competitive platform that is progressively making waves in the halal market. This platform aims to be an efficient, trusted and reliable trading platform for halal-certified suppliers to conduct online e-commerce and business matching activities, as well as fortify their brands as halal representatives. “It also facilitates international trading sales transactions for the suppliers via onlineto-offline channels while participating in multiple international food and beverage trade fairs yearly. With GoodMorning Global as our newest partner, I trust that DagangHalal. com will become more visible to our targeted markets.” The multigrain brand has also received approval from the Ministry of Health of Oman

18

THIS WEEK’S FOCUS

to distribute its halal food products to the middle eastern country; giving GoodMorning Global a stepping stone to entering the halal market in the UAE.

EMBRACING ESG WITH SUSTAINABLE FOOD TECHNOLOGY GoodMorning Global has

also begun venturing into food-tech and new food value chains. These include its newly operating plant-based sector that manufactures natural plant-based food products. The company intends to increase the resilience of its core plant-based portfolio as part of its corporate strategy and also enable it to identify areas to improve its manufacturing processes. “Food production in the past until today has had a butterfly effect on our society. We at GoodMorning Global want to ensure

that our practices in producing food are not only positively impacting the earth but also contributing to the health of our consumers. With this new plant-based sector, GoodMorning Global hopes to reduce our carbon footprint and embrace healthier living for years to come,” said Dr. Lim. Established in 2008, GoodMorning Global is Malaysia’s largest nutritional and food brand specialising in multi-grain beverages and plant-based food products. Since its inception, the brand has received multiple accolades and recognition including SME 100 Awards, Golden Eagle Awards, Asia Halal Brand Awards and a few more from The Malaysian Book of Records. The group has also expanded to have its designated plant-based sector, emphasising producing plant-based meats.

UP YOUR SERVICE

WITH RON KAUFMAN

INSIGHT

19

FIVE PROBLEMS TO OVERCOME WHEN BUILDING A SUPERIOR SERVICE CULTURE

L

eaders often make mistakes when building a service culture throughout an organization. It’s not an easy task. To develop a culture that demonstrates true service leadership in your field, you must avoid these five common mistakes:

01. THE FRONTLINE LACKS TOP-DOWN SUPPORT.

Often when organizations seek to improve their service performance, they rush to train employees on the front line. This seems to make sense because the customer service team and call center representatives are usually the people who speak directly with the customer. Don’t make this mistake. Provide service education for everyone in the organization…and start with those who are serving at the front line!

02. TRAINING ALONE WON’T SOLVE THE PROBLEM.

Training and education are vital to developing a superior service culture. After all, your team must share the same high service goals and speak the same service language. But training and education aren’t enough. Many other elements contribute to your culture and determine how consistently committed team members will be.

03. EACH ORGANIZATIONAL FUNCTION HAS ITS OWN PRIORITIES. At the end of the day,

everyone in the organization wants the same results: superior service that creates delighted clients, increases market share and revenue, raises reputation, and attracts and retains the best staff. But during the day, each person and department may be chasing different outcomes.

04. “THIS IS THE WAY WE DO IT.” If the reason

behind your current service is “This is the way we do it because we’ve always done it this way,” then you are missing out on new ways to build a more effective and responsive service culture. Historic procedures and performance may have been based on measurable KPIs or specific revenue targets. But this way of thinking may be preventing your team members from creating something new.

05. SENIOR LEADERSHIP HAS AN UNWILLINGNESS TO LEARN. You don’t get to a senior position

without being very, very good at some particular aspect of the business: technical, financial, strategic, etc. But few folks in senior positions have “delivering superior service” as one of their outstanding strengths. So it’s vital for senior leaders to say, “I want our new service strategy to succeed, and I may not know everything we need to do to make this really happen. We need some guidance. I am going to seek the best advice, and follow it.” This upbeat and open attitude of senior leaders can attract and align the experience of other team members in other organizational functions too – showing everyone that those at the top support new learning and leadership at every level. Ron Kaufman is the world’s leading educator and motivator for upgrading customer service and uplifting service culture. He is the author of the bestselling “UP! Your Service” books and founder of UP! Your Service.