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A Letter From Ron Magnus, Managing Director

Nordstrom’s is a company widely known for its customer service. If you have read about Nordstrom’s, you have probably come across the famous “tire return” story. The roots of the story come from Nordstrom’s purchasing property in three Alaskan cities from a company called Northern Commercial Company, which sold tires among other items. The legend holds that after one of the stores was re-opened  in Fairbanks as Nordstrom’s, a customer came in with a set of tires and asked for a refund. Nordstrom’s, which is a retailer of shoes and clothing, clearly did not carry tires. Yet the clerk promptly gave a refund with no questions asked. Popular media often cites this story as an example of exceptional customer service and it has become a reinforcing mechanism of the culture at Nordstrom’s.

While the varying accounts of the story and conflicting details suggest that the story has long crossed over into myth, the tale still resonates deeply enough that many believe it to be wholly true. Enduring, deep customer relationships come from leaders who first create a great internal culture versus creating a culture that focuses on external customers at the cost of internal relationships. This can only be done by truly focusing on others through a genuine, unconditional regard for the best interests of both internal employees and external stakeholders. Construction companies who create this type of culture realize the benefits of lasting client relationships and the resulting increase in repeat work.

This issue of the Leadership e-Newsletter examines the essential leadership behavior of focus on others.

Ron Magnus
Ron Magnus

Re-Engage: Igniting Customer Contact

Employee engagement is a competitive advantage for firms seeking to win in the recovering market. Highly engaged employees do better work and put in discretionary efforts beyond the level required.

We are beginning to emerge from the recession and look to the future, but the business landscape seems like a different planet than the one we left in the high-flying market of 2007. Firms need everyone on board to do his or her best work, offer his or her best ideas and most of all help bring in new clients and new work. It is no longer business development’s job to win work; it is the role of the entire company.

Today customers have the unprecedented choice of firms with which they want to work. They have the best companies vying for their business and at prices that are extremely competitive. Certainly, some firms have dropped below a pricing level that is sustainable. There will be contractor failures in the coming market. Regardless, all firms must have a strong backlog of work to survive and thrive in the market. Now is the time to ignite everyone in your firm to understand and embrace his or her new and expanded roles in customer development and retention.

Read on to learn how reengaging your people will help you thrive in all markets.

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Keep Your Marketing and Sales on Track

In today’s market, the difference between being selected solely on price versus being recognized as adding value, is the difference between making a profit this year and needing to lay off additional staff.

Winning work and keeping customers loyal for life are goals that most industry firms pursue. Today it is the difference between maintaining a backlog and having to lay off good people. The challenge is that there are plenty of other firms in the market competing alongside you. What you need to be successful is a winning advantage.

Customers award work to firms that have a winning project approach and sensible price. You can certainly compete on the basis of price. You can also find strategies to add value and create a winning project approach. If you can combine both a winning approach and a sensible price, you will capture its customer’s attention. The key to building value is to position your firm before the project opportunity hits the streets. That is when the customer is most open to exploring how your organization is different and connecting the value you bring to its future project(s).

Read on to explore what it takes to move customers from not knowing who you are to being convinced that you are the right company for the project.

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