The following work aims to show some of the most relevant points of the book "The Moment of Truth" in relation to the success of modern companies. Among the topics to be addressed will be those of leadership, strategy formulation, structure of the successful organization, risks, communication, development of advice, relationship with unions and motivation.
Companies must provide quality products and services so that the customer is satisfied and has the availability to make the purchase again with the company. Customer service is of the utmost importance, it is an added value that can be the success factor for companies if it is accompanied by competitive products. However, a competitive product must have a quality service around it so that the rating given by the customer is good.
The book "The Moment of Truth" talks about this service and these interactions with the client as keys to success. The company must formulate moments of truth in each interaction with the customer. The line staff is in charge of carrying out successful and fruitful interactions with the client, that is why people who have any direct interaction with the client must be aware of their great responsibility and the importance of their work within the organization. At the same time, the organization must be in such a way that it empowers the line personnel - operating according to Mintzberg structures - so that they can solve problems that arise or that the client has in a more efficient and fast way.
It is necessary for the company to have a structure that rewards and facilitates the training of leaders so that a competitive environment can be created both internally and externally to the company. Responsibility in a company must be delegated in such a way that individual decisions are taken from the point of view of responsibility, not from the point of view of high levels, since generally those who know and respond directly to the client are lower-level employees.
A leader is not named because he knows everything and can make all the decisions. You are appointed so that you have an overview of the company and from there create the prerequisites to do the job. Leaders are of vital importance for the company to follow the most suitable course and to make decisions that fulfill the vision of the highest levels of the organization. A leader today must have general qualities about the performance of the company, such as good business sense and a broad understanding of how things can fit together, the relationships between individuals and groups inside and outside the company and the game. of various elements in the company's operations. The new leader is a person who listens, communicates and educates,an emotionally expressive and inspiring person who can create the right atmosphere instead of making all the decisions himself. The leader is the person who is oriented towards results rather than towards power or social relationships.
The formulation of strategies to achieve the objectives is a matter of great importance because, based on these, the organizational goals of each department may or may not be achieved. To formulate strategies, it must be based on knowledge, then design commercial strategies to satisfy the needs of the market and organize the company in such a way that it is suitable to implement these strategies. However, many managers begin by designing objectives and strategies, and only then examine the business aspect and the needs of the clients, which is really a serious mistake. It is worth mentioning the importance of knowing who the company's customers really are in order to design appropriate strategies.It is very important that when you are developing a business strategy you know how to say no to ideas that are apparently good but do not fit with the overall idea of the company.
The organizational structure of the company must be such that it facilitates all those operations that add value to the company's products and services so that the client receives more for their money and the company becomes more efficient. Companies must cut costs without sacrificing quality of service, increase the effectiveness of their staff, and make the organizational structure more flexible. Any business organization that tries to establish a customer orientation and create a good impression during its moments of truth must level the organizational pyramid - make it more horizontal -, eliminate the ties of hierarchical responsibility to be able to respond directly and quickly to the needs of the clients. The customer-oriented company is organized for change.When the front line person is empowered, they must make all the operational decisions, well even when they are not empowered.
However, they are the ones who exert the most direct influence on the impressions that the client gets from the company during moments of truth. By empowering it, no front-line employee has to wait for the permission of their supervisor or superior, this makes it easier for them to provide an excellent service that many times cannot be provided due to the inflexible nature of certain organizational structures.
It is also important that companies take risks. Companies that are managed with medium differentiation or cost strategies do not have as many opportunities to succeed in a highly competitive market. Successful companies are those that use sagacious and innovative strategies. Companies must take risks so that they can take the leap they seek to position themselves within competitive markets. This is not done only at the highest levels of the company, each employee must have the ability to make decisions that positively affect the position where they are. If front-line employees have to make risky decisions, they need to have a sense of security at the same time.Having knowledge and information is not enough if they believe that a wrong decision can cause problems or even the loss of their job. They must know that they are allowed to make mistakes. The security that must be given them comes from two sources: internal and external. Middle managers and managers should provide it.
Communication is another important aspect within the company so that all levels know their functions, what they should do, when they should do it and how they should do it. All members of the company must know the company's mission, objectives and global strategies so that they can act in a manner consistent with what senior management expects. The most powerful messages are those that are simple and direct and can serve as a “battle cry” for everyone at all levels of the organization. Efficient communication is necessary to offer good customer service, to capture markets and to be more competitive within the environment in which the company finds itself.
The councils and unions of a company must be managed effectively so that they can act in the interests of the company. Boards need to be informed about overall strategies so that they can assess and appreciate the logical reasons behind the management's requirements. The Board must be active in formulating the vision of the company so that they can act correctly. This also allows the Board to pay attention to the strategic points that matter most, rather than losing its efforts to details that would be better targeted elsewhere in the company.
Unions are a problem for many companies but they also have the potential to make a crucial contribution to the corporation's effort. The unions must get to collaborate with their members and with the management, in addition they must participate together with the middle management in the planning and acquisition and distribution of resources, determining the profit objectives, designing the investment processes and so on. The second role of unions is similar to that of an internal auditor. They must critically examine whether the company is complying with labor laws and collective agreements. The third role is more traditional, unions must be there during negotiations. Yet unions help shape company operations and investments,since they cannot continue in an adversary role that undermines the company's global strategy.
Motivation within the company is the last point the book covers. It is very important to have an efficient and committed workforce, which ends with a better performance of the company's resources and better customer service. Through the measurement of results and a wide recognition of achievement and performance, employees will become more efficient, the work environment will improve and there will be less turnover. The need to measure results is particularly crucial for those employees who serve customers through their work but do not have personal contact with those customers.
In conclusion, the company must be designed in such a way that its organizational structure can respond quickly to the needs of the clients to create moments of excellent truth. When the organization tends to be competitive, it needs to create foundations that allow employees to make decisions according to the requirements of the client and the company. Having trained, leading and motivated human resources is one of the main strengths of customer-oriented companies, since in this way they are given an effective response to their needs.
