GM’s Hard Lesson in Customer Satisfaction

On June 1, 2009, GM officially declared what many of us had known for decades: it is unable to compete in the global marketplace.  The fact that it can’t even compete in the US market, where it got its start a century ago, shows how far the mighty can fall when they’re not paying attention.

There are many reasons for GM’s failure, including:

• Its sheer size and the attendant inefficiencies
• Corporate hubris (perhaps reflected in the famous statement, “What’s good for the country is good for General Motors, and vice versa.”)
• An outmoded business model

But perhaps most importantly:

• Lack of customer satisfaction.

ISO/TS 16949, the automotive quality standard similar to ISO 9001 and based in part on QS 9000 — a standard developed in part by GM — places a great emphasis on satisfying customer requirements.

Customer requirements are often fact-based (e.g., safety standards, legislation) but just as often, they’re based on perceptions.  A company can compile the most lengthy, detailed checklist of customer requirements yet miss a lot of important information when that checklist is not reexamined on an ongoing basis.  If that checklist becomes the “Commandments of Manufacturing”,  the company using it runs the greatest risk of all.  Ask GM.

This is a lesson every remaining business must take to heart.  So, ask yourself: When did you last have an open, honest discussion with your customers (maybe not all, but certainly your best ones) to see how they feel about your goods and services?  Do your customers consider your product – your company – useful and relevant?

When did you last reevaluate your definition of your target customer?  Do you use the “best” tools for getting and evaluating your customers’ perceptions?  Are you doing all you can to cultivate customer relationships?  To maintain them?  Are you making an effort to anticipate customers’ needs?  Are you listening?

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Originally published in 2009 by Bizmanualz, Inc. under the title GM’s Hard Lesson in Customer Satisfaction. All rights reserved. Reproduction permitted with attribution only. www.bizmanualz.com