CEOs should get out of the board room spend time on the shop floor
In a recent study, nearly 80 per cent of consumers stated that the average brand doesn’t understand them. This hints at a worrying disconnect in business, particularly at a time when changing attitudes among consumers and workforces mean leaders should be connected to what is going on outside of their office door.
The day-to-day demands of running a business drag us into countless meetings and presentations. The only constant is a lack of direct interaction with consumers and virtually none with the wider employee base.
How can a leader effectively lead if they don’t understand their customers and cannot connect with their employees? In reality, they cannot.
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But there is actually a simple solution, which is so often overlooked. Chief executives should step out of the boardroom and spend more time with the troops on the front line.
Breaking barriers
The business leader who ventures out of the office and works directly with front-line staff immediately breaks down the hierarchy and gleans valuable feedback. A day with your sales staff can provide more valuable insights than a week spent in the office.
I spend a minimum of 20 per cent of my time in the field, and aspire to spend at least 40 per cent. Every Friday, I visit our IQOS stores (which sell our heated tobacco and vaping devices) and others, including high street vape shops, pubs, and local newsagents.
I spend the day engaging directly with my sales teams, retailers, and the consumers of our products.
This is always an eye-opening experience, on all sides. The quality time together encompasses both business and personal discussions, and helps to break down the barriers that exist between senior management and employees. By close of play, the staff who I have interacted with know me personally and understand that they have a direct line to me anytime. Customers also get my business card and are invited to provide direct feedback.
Finger on the pulse
My company is providing innovative new products to smokers to help them switch to better alternatives that reduce the harm caused by smoking.
When in the field, I get to hear valuable insights from smokers about what support and services they expect when they are trying to stop using cigarettes.
Successful companies listen to their consumers, and we are trying to get better at that.
Traditionally, large manufacturers of consumer goods products have managed to survive without a strong finger on the pulse of the consumer – exploiting scale, distribution agreements, and resources. But our competitors are changing, and we need to adapt to compete.
Consider Uber. It was born by its founders responding to the pain points of taxi passengers. Whether it’s the nerves of explaining your destination or the worry about having the correct change, Uber’s founders listened, responded, and provided a corresponding service for the consumer. The rest is history.
Startups are disrupting big companies like my own. They have stimulated multinationals to talk more about the consumer, and have triggered various consumer-based research projects.
This is a good step, but for many the exercise is over-intellectualised. In my view, time on the shop floor and active-listening skills would be a wiser investment.
Understanding and responding to consumers is the ultimate measure of sustainable success for any company. People at all levels should be engaging with customers.
You probably think that you are doing it and that you understand your consumers? Unfortunately, 80 per cent of customers don’t agree with you.
Perhaps it’s time to rethink how you spend your time.
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