Case stories

To bring our theory and literature to life, we've written a series of case stories showing how notable local and international companies have implemented and benefited from the topics covered in our modules; primary promise, delivery systems, measurement, brand building and failure response systems.

All our modules include a corresponding case story.

Here are some excerpts from a few of our case stories;

Toms Shoes, Ritz-Carlton and 1-800-GOT-JUNK?

Toms Shoes

A company-defining promise

Introduction

Sometimes a company is kicked off, and elevated to international fame, by a single statement.

In 2002 Blake Mycoskie participated in the TV reality show “The Amazing Race” which took him to Argentina. He returned to Argentina on vacation in 2006 and noticed that children from poor families were in bad need of a simple pair of shoes, which, for instance, meant that they often had trouble making it to school.

He returned to the US and decided to start a shoe company based on the simple idea that if you buy one pair of their shoes, his company would donate a pair of shoes to a child in need. The message resonated with a large audience and the business took off. In the fall of 2006 Toms Shoes was able to donate the first batch of 10,000 shoes to Argentine children.

The essence of this business model was framed by the statement “One for One” which has turned out to be the company’s claim to fame....

The promise delivery systems

Donating a pair of shoes every time the company sold a pair of shoes obviously had a direct financial impact on Toms Shoes bottom line. So in order for the promise, and business model, to be financially sustainable, the company had to figure out how to create a system that would not undermine their profitability. How not to drown in their own success.

The solution came from the market needs and resources where the founder Blake Mycoskie had first conceived the idea behind the business, Argentina.

A very common shoe in Argentina is the alpargata shoe, aka espadrilles, a simple canvas slip-on. It’s made locally, is affordable, and made of environmentally friendly natural fibres.

One of the first actions, and promise delivery systems, Toms Shoes set up was the production of the alpargata shoe locally in Argentina.

This move had many upsides; a. it created local jobs, b. the shoes would be made close to the company’s distribution networks and final receivers, c. the product itself, the alpargata shoe, was well-known and in demand in the country, and d. the production cost was low, around $5, and would therefore not significantly undercut the profits from the North American sales....

Ritz-Carlton

A ubiquitous promise with systems to empower the frontline

Introduction

The Ritz-Carlton Hotel chain was founded in the early 1900’s by Swiss hotelier César Ritz. Over the last century, and through various reincarnations, RC has grown to more than 100 luxury hotels worldwide. Today the chain is owned by Marriott International and is headquartered in Maryland, US.

The hotel is the gold standard when it comes to giving its guests a personalized top notch hotel experience. RC’s steadfast commitment to, and clear communication of, their primary promise, or credo as they call it, and the way they run the delivery systems to make it all happen, is legendary not just in the hotel world, but in any service centric industry.

In fact, their RC Learning Institute and RC Leadership Center are highly recognized as one of the worlds premier destinations for both seasoned and aspiring leaders in the hospitality industry and beyond.

The Ritz-Carlton promise

First, let's have a look at the promise which the hotel chain perpetually communicates to their employees and guests. In the Ritz-Carlton universe, the promise is called the credo and consists of these three key statements:

“The Ritz-Carlton is a place where the genuine care and comfort of our guests is our highest mission.”

“We pledge to provide the finest personal service and facilities for our guests who will always enjoy a warm, relaxed, yet refined ambience.”

"The Ritz-Carlton experience enlivens the senses, instills well-being, and fulfills even the unexpressed wishes and needs of our guests.”....

The promise delivery systems

The Ritz-Carlton operation is build on many interconnected systems, and the four key systems related to the credo described above are:

a. Employee selection and training

b. Sharing experiences and observations

c. Collection and utilization of guest observations

d. Promise delivery measurement

a. Employee selection and training

Ritz-Carlton don’t hire, they select. They get the right people on the bus and help them to become successful by having the systems in place to spot, attract, train and grow the right talent.

One of the essential personal traits they look for when selecting a potential employee is service pride. The degree to which a future Ritz-Carlton employee identify with, show enthusiasm for, and deliver outstanding service....

1-800-GOT-JUNK?

Be exceptional in an ordinary industry and build (franchisable) support systems

Introduction

In high-school, Brian Scudamore was not voted “Most likely to succeed in business”. In fact, he dropped out of high-school. To the big dismay of his surgeon dad.

So, in 1989, with not a lot going for him and financially on his own, he was looking for a job to help him through college.

He decided to start a one-man-with-a-truck junk removal service, which eventually became his full-time occupation. Again, his dad was not impressed.

On the surface, it’s quite a simple business concept; on-site junk removal, for instance from cleaning out your basement, garage or office space. You have a truck, you show up, take out the junk, get paid, dump the stuff, drive home. How difficult can it be?

But the way the company operates, its vision, systems and execution, had never been seen before in this, less sophisticated, industry.

Mr. Scudamore saw an opportunity to build the FedEx of junk removal....

The 1-800-got-junk? promise

The junk removal business is not exactly renowned for its employee excellence and stellar service. It’s been dominated by the guy-with-a-truck showing up late in a sweaty t-shirt and butt crack. Until 1-800-GOT-JUNK? entered the stage and saw an opportunity to elevate the industry.

So the first part of the company’s promise addresses this gap between the customers (low) expectations, and the experience they get using the 1-800-GOT-JUNK? service:

“1-800-GOT-JUNK? makes the ordinary business of junk removal exceptional.”

The promise of exceptional service. A wow experience, as they call it internally. And because the company operates in an industry where service expectations are low to begin with, their odds of exceeding these expectations are very good. That’s assuming they have the systems in place to consistently deliver on their promise....

The promise delivery systems

With the objective to build a promise delivery system, 1-800-GOT-JUNK? first had to define what their primary promise, exceptional service, mean for the company (and their customers).

The founder, Brian Scudamore, pinpointed four focus areas to distinguish his business from the topsy-turvy competition:

On-time service

We all know that a crucial parameter for a good service experience, not at least sitting at home waiting, is that the service provider shows up on time. If you arrive late, it’s really difficult to end the interaction on a positive note.

So, always arrive on time. And give the customer a phone call to confirm (and also a phone call after the job is done to follow up and ask if the service lived up to the promise).

Upfront rates

Because the junk removal industry is highly disorganized, mostly consisting of an individual junk hauler and his truck, the service costs are all over the place and therefore highly unpredictable. To alleviate this uncertainty, and negative service experience, 1-800-GOT-JUNK? always gives its customer an upfront price quote. The message and action also serves the purpose of making sure the customers know that the company does not pay for the junk, as there was some confusion re. this in the early days.

Clean shiny trucks

Before 1-800-GOT-JUNK? entered the market place, the vast majority of junk removal services was made up by a multitude of scruffy looking guys with their arbitrary looking retrofitted trucks. And most of time, in serious need of a thorough wash....

“Business goals tend to focus on revenue and profit. However a business promise puts focus on the customer, which is where the revenue and profit comes from.”

P. Andersen

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