Thursday, March 12, 2009

131. Customer service important now

Difficult economic times mean, among other things, that families have less disposable income. It also means that whatever disposable income that can be spent on entertainment or excesses-like eating out, going to the movies or attending sporting events-is precious. Businesses and organizations that rely on disposable income need to realize, under these circumstances, that customer service is more important than ever.

However, and unfortunately, acceptable customer service continues to be an increasing problem-so much that financial guru, Clark Howard, calls it "customer no-service." This collection of customer no-service, in his case, extends beyond entertainment and excesses and includes every service that is available for purchase. The idea follows a similar premise-I am spending my hard-earned money on a product, and I would like that product to be or perform as advertised.

The easiest way for any company or business to remain or become competitive is to keep their product as inexpensive as possible. And, this, as we know all too well, usually comes in the form of finding the most inexpensive labor possible. In American service industries, this usually means hiring teenagers or young adults, in manufacturing, this includes building plants in third world countries, and, in technology or technical support, this often means outsourcing customers service centers to places like India.

We all know and understand the frustration of calling a company's support line. First we have to navigate between several directories or menus, then we are placed on hold and then, finally, we are forced to speak to someone you cannot understand. Worse, this person is usually following a customer support manual-full of "if-then" decision trees. Often they are in no position to speak to anything outside the manual, prompting the advice, "Don't speak to anyone who does not have the authority (or ability) to solve your problem."

Worse than that, however, is the current state of domestic customer service. Sometimes it is nearly impossible to get anything done right the first time. The problem is not just that businesses are hiring the wrong people-it is that they are hiring people who, at times, do not seem to care. It is tempting to scribe a laundry list of examples, such as trying to purchase a meatless Big Mac. Sounds simple, right? One Big Mac minus the meat-that means please make me a Big Mac exactly as Big Macs are to be made, just don't put the meat on it. I have received a Big Mac without meat and cheese, without meat, cheese, and sauce, and a Big Mac that only had bun and lettuce. It is so bad that I never order it through the drive thru anymore-I have to go in and check it before I leave.

Nobody likes returning food or a faulty product, but when it is necessary, it is sure nice to be greeted with, "I am sorry, please allow me to correct our mistake." That's it, that's all I want. Rather, I am often greeted with grunts, or excuses, or arguments-like I did something wrong. My parents owned several small businesses and I know that customers are not always right. People will try to take advantage of situations, in which case companies should stand their ground-professionally of course, but they are not obligated to cater to every customer's complaint. However, when the business has made a mistake, I would like them to understand my inconvenience and frustration. I don't have the time to do things twice.

In these tough times, my wife and I have become less understanding. Treat us rudely, and we'll go somewhere else. Some of our favorite places are now on our "boycott list," which we will jokingly sentence them to after incurring problems. Really, when I go out, I just want people to be nice. I know times are tough for everyone-and customer service is difficult because at times the employee has to be an actor, putting personal problems aside.

Employees need to be trained better, perhaps paid better, and understand that if people are not happy with their service-the business owner that gave you this job will go out of business, and you will lose your job. In working for my parents, it was often easier to understand-if we lost customers, my whole family suffered. The truth is that we are all accountable to someone-whether it is small business owners, taxpayers or shareholders. For some this is a tough lesson to learn.

Recently, when our favorite local pizza place messed up our order, after a very stressful day, the manager on duty, rather than apologize, explained that he has a "bunch of teenagers" working there. Unbelievably, it was almost as though he was blaming us for having unrealistic expectations.

Boycott-six months, maybe longer, if we find a new favorite pizza place in the meantime.

Thursday, March 5, 2009

130. Recession might good for us

An early morning show was discussing the economy when I caught one of their guests suggest that she was glad that we were going through a recession/depression-that we need to return to our core values.

At first I was appalled, how could anyone be happy that people were losing their jobs and houses. But then I thought about it and understood where she was coming from. Of course, she was not being completely literal and her point was to consider our current way of life.

We have lost some of our human values, such as respect, time with family and living within our means. In some ways, we are a culture out of control, where now everything seems to be out of equilibrium and we do not know where to turn.

Where did things go wrong?

Maybe the answer to that question is where do we start? For many of us, capitalism has been operating on steroids for some time now-satisfying short term earnings with long-term consequences. It was not until the taxpayers got stuck with the bill did the arrogance and irresponsibility of the top executives in the banking, investment and automobile industries become exposed.

As a society, we have become very spoiled. We want everything now-big houses, nice cars, large televisions and hip cell phones. We have racked up large mortgages, undertaken multiple mortgages and maxed out credit cards-all while saving very little. We have become willing to sacrifice principle for price and convenience. We did not care where the product came from, whether it was at the expense of an American job, or through environmental exploitation.

We have allowed technology to consume us. No longer do we take time to really talk to people-everything is an email or text message. It is common while dining out to see families sitting together but not speaking. Often one member of the family is yelling into a cell phone, another is texting a friend and still another is listing to his or her iPod.

We are living a sedentary lifestyle and consuming an unhealthy diet. We are eating processed foods and fast foods. When our diet makes us sick, we want doctors to give us a pill to make us better-rather than change our lifestyles. We are again willing to choose the convenience of a cheap meal over quality and ethical food production. The result is drug companies that are out of control and a health care system in desperate need of reform.

We continue to be a throw-away society. Recycling and conservation efforts are still in its infancy. Until recently, we chose gas-guzzling sport utility vehicles over sensible alternatives-essentially communicating to the automobile industry that they need not invest in hybrids and electric cars. We would gladly destroy the environment or go to war for cheap oil. We are unwilling to take the time to recycle our precious resources or pay a little more for recycled products.

I am not lecturing, I am just saying. We are all guilty in some respect; we all created the mess we are in. I think our new president is correct when he suggests that we will have to work together to get out of this. We need accountability and common sense.

Really, we need to start caring-about each other, about our country and about our world. We also need to be informed; it is ignorance that contributed to our situation. We need to stop looking the other way when it is not our problem, we need to know how our government works, where our products come from and how they are made, and we need to realize that our choices make a difference.

I think what we really need is a time machine. We all need to spend a month living in the conditions endured by our great-grandparents. Maybe we would have a greater appreciation of our present luxuries, learn to work together a little more, and turn off the television and video games from time to time. Maybe a return to our core values would not be such a bad thing after all.

Friday, February 20, 2009

129. Grade inflation hides true worth

The University of Southern California (USC) Law School recently considered making the average grade a B-plus, moving the grading curve .1 from 3.2 to 3.3. The dean felt that their students were at a disadvantage in competing for jobs with other schools that had a higher average grade. Meanwhile, compare that to Harvard and Stanford who are all considering, or have, changed their grading system to simply "Pass/Fail," though there will be distinctions of "honors pass" and "low pass."

The question is what does it matter? It was interesting reading the responses from law students in response to this story and it appears that grading is all over the map. In my law school, a 60 is a C minus and an 80 is an A minus. Multiple choice and essay exams are very difficult, unlike any other program I have participated in, and most students end up in the B to C range.

Students from other law schools, however, claimed that they received an A just for showing up (probably an exaggeration. law school is difficult), and most seemed pretty disgusted with the whole system. Of course, for those wanting to practice law, the great equalizer is the bar exam.

But clearly grades should matter, and those that work harder in school should be rewarded with better opportunities. But does it? When was the last time you heard someone ask a lawyer how he or she did in law school? They passed the bar exam, and except for the most prestigious positions, that is all that legally matters. There is even a saying in law school, "C= J.D."

So how do we compare one attorney that was graded on a pass/fail system and another that had a B minus average at another law school? And if it doesn't matter, why does it matter-to the point that USC would change their grading system by .1?

It's not just law school. My Master's of Business Administration (MBA) program was predominately projects and written papers/reports. Many of the projects took place in groups, in which some people worked really hard, and, unfortunately, others did very little. Unlike law school, there is no exam to give someone the right to practice as an MBA. Certainly, there are those people benefitting from a degree they did not earn.

I have written before that I feel as though colleges have watered down their work loads and grading standards. I spoke to one professor who gave "bonus" points for turning in a paper in time. I asked if he was kidding, he said "no," that he received too many complaints for taking away points from late papers. Students complain, make excuses and think nothing of appealing their grades to department heads.

In some circumstances, it seems that a number of professors are afraid to challenge their students. It is easier to keep everyone happy by dividing them into three categories- A, B or F. That is probably also an exaggeration, and oversimplification, but what happened to the grading curve, in which the best students received As, most received Cs and others did not pass? Does it still exist?

I fear we are moving in the same direction as kid's sports, where we do not keep score and everyone gets an award just for showing up. And if we do not get our award, we complain and threaten the authorities until we do get it. I believe in equal opportunity, not equal reward. It is not win at all cost; it is that not everyone wins. Some people have learned to exchange hard work with good excuses. School and sports should teach us that it takes hard work to be successful, that there are few short cuts, and that results do matter-as does process, respect and integrity.

The diversity now seen in colleges is a positive reflection of our time. There are young students, old students, on-line courses, weekend classes, career centers and traditional campuses. The evaluating of factors and programs is becoming more difficult, particularly when an 80 is a B- in one school and an A- in another. The proof is in the job offers, and colleges like USC understand this. They want to attract students by stating, "Attend our school, and you'll get a great job."

It becomes more difficult, however, evaluating a young student from a notoriously challenging traditional program, with no responsibility except for school, with a single mom of two, working two jobs, and attending school part-time on weekends at a perhaps less demanding career center. Following graduation, what factors, in addition to grades, will be considered in hiring?

Today the competing environment for jobs is escalating; there are fewer jobs and intense competition. Everything matters. Applicants in most fields need to be well-rounded-education, work and volunteer experience, character (and it still does not hurt to know someone!). But education will always be a significant factor, and colleges, despite their need to attract and keep students, need to provide a challenging environment, one that adequately prepares a student for the "real" world. A world that does most certainly keep score-in dollars and cents.

Thursday, February 12, 2009

128. True cost of burger not on menu

Ever wonder how they do it? Ever wonder how McDonald's and other companies can sell their double cheeseburgers for one dollar. When I was in college, and struggling to make ends meets, I nearly lived on one dollar double cheeseburgers. Where else could I get a meal of two burgers, fries and soft drink for fewer than five dollars? It carried me through several semesters, and, secretly, I always feared that what I thought was a temporary promotion would end.

But even then I wondered: How was it profitable, except of course from the money made off of all other products like the soft drinks, to sell a double cheeseburger so cheaply? Consider all of the people that need to be compensated to make a double cheeseburger. There is the farmer that raises the cow, and all of his overhead-such as feed, water, antibiotics, equipment. There are the people in the slaughterhouse that must kill the cow and process the meat. The meat must then be packaged and sent to McDonald's (or their suppliers) who certainly does their thing to it-such as apportion, season and freeze it in preparation to send it to its outlets. Then the meat must be transported to those outlets, which assumes all of the costs of McDonald's management and transportation. Next, after getting to McDonald's, the meat must be cooked and served, so we need to toss in the overhead of running a McDonald's and the salaries of their employees. I am sure I missed a few steps, and I know there are economies of scale when it comes to a corporation as large as McDonald's, but it seems like one dollar is a heck of a deal.

I might be slow, but I figured it out, and it comes down to a single word: Corn. Michael Polland's book, entitled The Omnivore's Dilemma, has a shocking and insightful section on the agricultural background and economic influence of America's largest crop. Inspired by the book, some filmmakers developed the idea in a documentary entitled "King Corn," in which they grew an acre of Iowa corn and followed its process from beginning to end. Here is just a bit of the story.

Corn cannot be grown profitably by most farmers and in order to encourage its development, it is subsidized by the federal government. The days of the small ranch in which farmers grew corn in their fields and raised animals in their pastures are long gone. It is a business in which the only criterion is profit. Welcome to factory farming.

Much of the corn grown is not readily edible, it must be processed-and the truth is that a large percentage of it is grown strictly for feed. Farmers grow more and more corn, and enhanced by technology and fertilizer, and unhindered by a demand curve, the amount of corn grown far exceeds its consumption. The technological breakthrough has come largely in developing strains of corn that can be grown very closely together-yet maintain its military-like posture. Today, 30,000 plants can grow per acre whereas one generation ago it was closer to 8,000. It is a genetically-engineered hybrid whose offspring are not nearly as productive-which means that seeds must be purchased new each year.

This cheap corn, and here is what those that sell cheap hamburgers are interested in, is sold as feed to cattle-in differing capacities and blends, including the addition of antibiotics. If you know your cows, you are probably thinking, I thought cows ate grass. Well not much anymore, we have forced-fed cows corn in order to grow them more quickly. That is where the antibiotics come in. Cows did not evolve to eat corn and the large amounts fed to them give their stomachs painful ulcers-acidosis. If they were not taken to slaughter at such a young age, their diet would kill them. Another problem is bloat, which is the fermentation in the rumen that produces "copious amounts of gas." And when the diet contains too much starch and not enough roughage, the rumen can trap the gas, pressing against the animal's lungs and suffocate the animal.

Polland notes, "Here animals exquisitely adapted by natural selection to live on grass must be adapted by us-at considerable cost to their health, to the health of the land, and ultimately to the health of their eaters-to live on corn, for no other reason than it offers the cheapest calories and the great pile (of corn) must be consumed." It gets worse, and the truth is not only do the cattle gorge on corn, they also, as Pollan reports, eat other cattle, "The FDA ban on feeding ruminant protein to ruminants makes an exception for blood products and fat, (the cattle) will probably dine on beef tallow recycled from the very slaughterhouse they're headed to."

One farmer noted that on his grandfather's farm, where cattle were still permitted to graze, it took four to five years to get to slaughter. In the fifties it was two to three years. Today, cattle are slaughtered in fourteen to sixteen months going from 80 pounds to 1,100 in that time. One farmer in the "King Corn" documentary noted in part that that is why they are not permitted to move around-it would burn off calories and take longer to reach slaughter weight. It is sick manipulation of economics and science-all to feed Americans more inexpensively than any other time in history. Any suggestion of a "happy cow" is a bold face lie.

That's not the end of the corn story-not even close. Some of the corn that does not end up as cattle food is then processed into high-fructose corn syrup-a dirty word these days. This corn syrup, which was developed in the 1970s, is in much of our food and beverages, including the soft drinks at McDonald's. That, however, is a story for another day.

The American diet is out of control and as the 20-something year-old film makers note, their generation might be the first to have a life expectancy less than their parents.

I recently visited McDonald's. I still love their Big Macs, though now I replace their hamburgers with a veggie patty, making a tasty "Veggie Mac." On my last trip, I got the meat on the sides for my dogs (something I should not, and only rarely, do). However, I now look at the small hamburger patties as a disgusting blend of meat and fat-grown on corn, to the detriment of every moral value I endorse.

Though I am now a vegetarian, my diet still leaves a lot to be desired, so I am not necessarily the right person to lecture people on what they eat. However, I have spent some time recently learning about how our food is processed and the increased danger of the American diet-not only its effects on our bodies, but also our economy, environment and ethics. It is truly in a pitiful state, and Americans need to learn more about where our food comes from.

My vegetarian diet is kinder to the animals, healthier and more eco-friendly. Even as I struggle with my own fitness, from the damage done by the years in which I ate fast foods, I have a moral and ethical sense of contentment that I am doing the right thing. Michael Pollan sums it up perfectly in his book, "To eat with a fuller consciousness of all that is at stake might sound like a burden, but in practice few things in life can afford quite as much satisfaction. By comparison, the pleasures of eating industrially, which is to say in ignorance, are fleeting. Many people today seem perfectly content eating at the end of the industrial food chain, without a thought in the world."