Discovering the Soul of Service

1. Values-Driven Leadership Sustains Service Excellence

Humane organizational values sustain human excellence.

Core values inspire performance. Successful service companies are built on a foundation of humane values that bring out the best in their employees. These values typically include excellence, innovation, joy, teamwork, respect, integrity, and social profit. By creating an environment where people can realize their full potential, these companies cultivate a workforce that consistently delivers exceptional service.

Leadership reinforces values. Leaders in these organizations don't just talk about values; they live them every day. They articulate the company's purpose, define what success looks like, and model the desired behaviors. This values-driven leadership permeates all levels of the organization, from top executives to middle managers who directly oversee front-line staff.

Stability preserves culture. Many of the most successful service companies have maintained stable leadership over time, often retaining their original CEOs for decades. This continuity allows for the deep embedding of organizational values and the building of trust, which is crucial for sustaining a culture of service excellence.

2. Strategic Focus Guides Customer Value Creation

Focusing facilitates excellence. Strategically, less is more.

Clear purpose drives action. Great service companies have a crystal-clear understanding of how they create value for customers. This "reason for being" serves as a North Star, guiding all decisions and actions within the organization. By maintaining a laser focus on their core strategy, these companies avoid distractions and excel in their chosen niche.

High purpose motivates. A compelling mission that aligns with employees' personal values energizes their efforts and sustains high levels of discretionary service. Examples include:

• Special Expeditions: "Inspire travelers"
• St. Paul Saints: "Fun is good"
• Midwest Express: "The best care in the air"
• The Container Store: "Better customers' lives by giving them more time and space"

Focus sparks innovation. Rather than stifling creativity, a clear strategic focus actually inspires innovation by providing a framework for improvement. While the core strategy remains stable, companies constantly refine their supporting tactics and execution to better serve evolving customer needs.

3. Executional Excellence Outperforms Competitors

A poorly executed strategy clears a path for competitors to succeed with imitation.

Strategy demands execution. Having a brilliant strategy is only the first step; success comes from superior execution. The most successful service companies not only have focused strategies but also obsess over their implementation. They continually raise their service delivery standards to maintain a competitive edge and make it difficult for others to replicate their success.

People power execution. The first rule of excellent execution is attracting and retaining great people. These companies compete vigorously for talent, seeking individuals who not only have the necessary skills but also share the organization's core values. This alignment of personal and organizational values creates a workforce deeply committed to delivering exceptional service.

Execution requires investment. Top service companies invest heavily in their employees' success through:

• Comprehensive onboarding and ongoing training programs
• Career development opportunities
• Tools and technologies that support service delivery
• Recognition and reward systems that reinforce desired behaviors
• Creating a work environment that fosters engagement and satisfaction

4. Controlling Destiny Preserves Organizational Freedom

If the company succeeds, the success will be on the company's terms; if the company fails, at least it will be its own failure.

Internal direction, not external dictation. Great service companies fiercely protect their ability to chart their own course. They resist pressure from outside forces—competitors, lenders, shareholders, or others—that might push them away from their core values and strategies.

Growth within capabilities. These companies prioritize excellence over rapid expansion. They grow at a pace that allows them to maintain their high standards of service and organizational culture. This measured approach helps them avoid the pitfalls that often come with unchecked growth, such as diluted values or inconsistent service quality.

Long-term focus over short-term gains. Successful service companies often operate as if they were privately held, even when they're publicly traded. This mindset allows them to:

• Invest for long-term strength rather than chasing quarterly profits
• Balance the interests of all stakeholders, not just large shareholders
• Pursue social profit alongside economic profit
• Maintain control over processes that directly impact customer perceptions of quality and value

5. Trust-Based Relationships Build Lasting Commitment

Trust is confidence that the other party can and will keep its explicit and implicit promises.

Trust as foundational. In service businesses, where the product is often intangible and delivered by people, trust is the glue that holds everything together. It's essential in relationships with customers, employees, and business partners. Trust reduces uncertainty and creates the confidence necessary for long-term commitment.

Competence and fairness build trust. Trust is earned through consistent demonstration of both ability (competence to deliver on promises) and integrity (fairness in dealings). Successful service companies prioritize both aspects in all their interactions.

Trust enables ownership. The highest level of relationship commitment is a sense of "ownership," where stakeholders feel the company belongs to them. This deep emotional connection is a powerful competitive advantage, as it creates loyalty that's difficult for competitors to replicate. Examples of trust-building practices:

• Transparent communication
• Consistent delivery on promises
• Fair treatment of all stakeholders
• Empowering employees to make decisions
• Personalizing service interactions

6. Investing in Employee Success Drives Superior Service

Companies reap the benefits of superior serving by investing in the servers.

Employee success precedes company success. Top service companies recognize that their success is directly tied to the success of their employees. They invest heavily in developing their workforce, understanding that skilled, knowledgeable, and engaged employees are the key to delivering exceptional service.

Comprehensive development. These companies go beyond basic training, offering:

• Extensive onboarding programs that immerse new hires in the company culture
• Ongoing skill development and knowledge expansion opportunities
• Career progression pathways
• Mentoring and coaching programs
• Cross-functional experiences to broaden perspectives

Creating a sense of belonging. Successful service companies foster an inclusive environment where employees feel valued and connected to the organization's purpose. This is achieved through:

• Open communication and information sharing
• Recognition and reward systems that reinforce company values
• Opportunities for employee input and decision-making
• Team-building activities and shared experiences
• Profit-sharing and stock ownership programs

7. Generosity Strengthens Organizational Community

Generosity wins hearts.

Beyond profit. The most successful service companies view generosity not as an afterthought but as a core part of their mission. They actively seek ways to create "social profit" alongside economic profit, recognizing that this approach strengthens their organization and its impact.

Strategic giving. These companies approach their generosity strategically, focusing their efforts on areas that align with their values and core competencies. This targeted approach allows them to make a meaningful difference while also reinforcing their brand and mission. Examples include:

• Chick-fil-A's WinShape Foundation supporting foster care and youth development
• Special Expeditions' "Kids at Sea" program providing educational voyages for inner-city students
• USAA's extensive employee volunteer programs

Internal and external benefits. Generosity pays dividends both within and outside the organization:

• Internally: Boosts employee morale, engagement, and sense of purpose
• Externally: Builds goodwill with customers and communities, enhancing brand reputation
• Creates a virtuous cycle where social and financial performance reinforce each other

8. Brand Cultivation Differentiates Service Companies

In services marketing, customers' disappointment with the service closes the door that traditional brand marketing helps to open.

Company as brand. In service businesses, the company itself is the primary brand, not just its products. This means that every interaction, from advertising to service delivery, shapes the brand perception. Successful service companies carefully cultivate their brand through consistent messaging and, more importantly, consistent delivery of exceptional service.

Emotional connection. Great service brands go beyond functional benefits to forge emotional connections with customers. They do this by:

• Aligning with customers' values and aspirations
• Creating memorable experiences
• Demonstrating genuine care and commitment
• Telling compelling stories that resonate with their audience

Employee embodiment of the brand. In service companies, employees are the living representation of the brand. Successful organizations ensure that their employees fully understand and internalize the brand promise, enabling them to deliver on it in every customer interaction. This is achieved through:

• Extensive brand education and training
• Empowering employees to make brand-aligned decisions
• Recognizing and rewarding brand-reinforcing behaviors
• Involving employees in brand development and evolution

9. Acting Small Maintains Personalized Service at Scale

When people are a key part of the total product, acting small is big.

Preserving intimacy. As service companies grow, they face the challenge of maintaining the personal touch that often characterizes smaller organizations. Successful large-scale service providers find ways to "act small" by preserving the best qualities of smaller operations:

• Quick decision-making
• Flexibility in meeting customer needs
• Personal relationships with customers
• Employee autonomy and empowerment

Structural solutions. Companies employ various strategies to maintain a small-company feel:

• Decentralized operations (e.g., Enterprise Rent-A-Car's branch system)
• Cross-functional teams serving specific customer segments (e.g., Custom Research Inc.'s account teams)
• Technology that enables personalized service at scale (e.g., USAA's customer information systems)

Culture of ownership. Successful service companies foster a sense of ownership among employees at all levels. This creates an entrepreneurial spirit where everyone feels responsible for the company's success and is empowered to act in the best interest of customers. Examples include:

• Profit-sharing programs
• Employee stock ownership plans
• Extensive information sharing about company performance
• Encouraging and rewarding employee-driven innovations

Last updated: October 3, 2024