Feedback & reviews

Why Modern Entrepreneurs need the 64 Years old Deming Feedback Wheel

Posted on

PDCA
PDCA

 

I wrote in my article “Start Ups 2014: Generation of Entrepreneurs Without a Business Plan?” about the importance of a business plan.

In this article I want to outline the importance of checking of & feedback on business/product planson regular basis because plans are never set in stone.

I met a lot of entrepreneurs. In general they have a clear vision of the future and a good sense for possibilities and opportunities (that’s why they started their own business). Entrepreneurs are often change makers in a traditional set world.

Modern entrepreneurs need to revitalize their entrepreneurship on regular basis and add tools like PDCA (or Deming wheel*) to their toolkit if they want to keep ahead of competitors.

 

Quote from Deming
Quote from Deming

 

Testing (checking – feedback) is not a one-off. Once you’ve started this cycle pattern, it continuous in spirals. This is the power of PDCA. Using knowledge based on real feedback to improve your product/concept and start a new cycle for new products/ideas.

 

Why entrepreneurs don’t take the benefit of PDCA

In my opinion:

1)   Most entrepreneurs don’t take enough time to check or the results after the launch (or test) of a new product/idea
2)   Selective hearing
3)   They choose the most obvious explanation why a launch succeeded or failed
4)   In this stage entrepreneurs actually never learn.

 

When I ask entrepreneurs why they don’t do a proper check, I often hear:

1) I am facing to many day-to-day affairs so I don’t give myself sufficient time to do a better check for good feedback
2) I jump often to a conclusion because I think that making decisions “on the fly” is the best way to solve problems
3) Every minute counts and only large companies have the resources and time to do proper research.

 

But this is wrong! A proven method doesn’t cost more time than “jumping to a conclusion”. Actually a proven method saves time because it enables entrepreneurs to implement new products/ideas through focused processes. It enables entrepreneurs to make way for better improvements & innovations.

 

Conclusion

W. Edwards Deming already stated: “it’s not enough to do your best; you must know what to do, and then do your best.”

In my opinion entrepreneurs should:

–       Step 1: Write a short business/product plan so others know their vision, mission and strategy

–       Step 2: Implement this business/product plan to keep focus while executing implementation

–       Step 3: Check & ask for feedback from customers

–       Step 4: Refine business/product plan to improve results, innovate and keep ahead of competitors.

The PDCA cycle is a good start for entrepreneurs of reinventing & testing their ideas in a very simple and proven way.


I wish all entrepreneurs a lot of feedback & improvements!

 

Quote Ken Blanchard
Quote Blanchard

If you want more information:

–       PDCA:                        http://en.wikipedia.org/wiki/PDCA

–       The W. Edwards Deming Institute: https://www.deming.org/theman/theories/pdsacycle

–       PDSA worksheet: http://www.ihi.org/resources/Pages/Tools/PlanDoStudyActWorksheet.aspx

–       Six Sigma:                  http://en.wikipedia.org/wiki/Six_Sigma

–       Kaizen:                       http://en.wikipedia.org/wiki/Kaizen

 

Note*: it’s a myth that Deming introduced the PDCA cycle. Actually Shewhart introduced the PDCA cycle and Deming used this cycle as a base for his own PDSA cycle: Plan – Do – Study – Act.

Advertisements

The Value of Feedback for Retailers and Restaurant Owners

Posted on

The Value of Feedback for Retailers & Restaurant Owners. What Helped You More: Negative or Positive Feedback?

 

Positive or negative feedback
Positive or negative feedback (survey Harvard Business Review)

 

According to a survey published on Harvard Business Review Blog on March 10, 2014, 52% of the people appreciate negative feedback.
The explanation from the researchers is quite simple: “There’s no mystery why. Practically three quarters of them thought their performance would improve and their careers advance if their managers gave them corrective feedback.”

While reading this article, my thoughts went to retailers, restaurant owners, etc. (“business owners”) who are collecting feedback as well. Do they also prefer negative feedback? Or are they only looking for positive feedback that will bring new customers in return?

My experience is that a lot of business owners are anxious to get reviewed and therefore don’t encourage customers not encouraging to give a review unless they are sure it’s good-excellent.

In my opinion every review matters and especially the bad ratings are valuable. Every business owner should focus on customer experience. If a customer isn’t satisfied he should undertake prompt action. An infographic from KISSmetrics shows that even 13-25%* of the customers expect a response within 60 minutes!

 

Response time to complaints and feedback
How fast should a customer service respond?

*13% Via email and 25% via Twitter

Besides customers’ expectations, there is an another reason to respond quickly: Social Media! Most customers love to share their experiences & thoughts and they will definitely share their negative experience with you as well! #Fail at Twitter is a very popular hashtag word!

Unless a business owner has a 24/7 customer care team, 30 minutes response time is not realistic. It’s sufficient when a business owner matches the customers’ expectations as soon as he notices the bad review. The last thing a business owner should do is ignoring or even putting the feedback into question. And that happens looking at this article about a “3500 fee violating non disagreement clause” used by an online retailer: http://www.techdirt.com/articles/20131113/06112425228/online-retailer-slaps-unhappy-customers-with-3500-fee-violating-non-disparagement-clause.shtml

 

Wrapping up:

  • Respond as soon as possible and keep in mind that customers are expecting the same as your employees: respect and being heard.
  • Listen to your customers and match their expectations. 51% Will give a positive reaction in return.
  • 22% Will post a positive comment about the organisation.

So next time a business owner is in doubt whether to ask for feedback or not, he shouldn’t doubt but do! There is a lot to win!

I wish you many happy customers!