0

Is the Customer Always Right?

Posted on January 26, 2012

Courtesy is restful. A nervous frenzy of energy throughout the day leaves one at sunset as exhausted as a punctured balloon. The fussy little fellow who fancies himself rushed to death, who has no time to talk with anybody, who cannot be polite to his stenographer and his messenger boys because he is in such a terrible hurry, is dissipating his energy into something that does not matter and using up the vitality which should go into his work. He is very like the engine which President Lincoln was so fond of telling about which used so much steam in blowing its whistle that every time it did it it had to stop.

The Orientals manage things better than we do. “We tried hurrying two thousand years ago,” a banker in Constantinople said to a tired American business man, “and found that it did not pay. So we gave it up.” There is always time to be polite, and though it sounds like a contradiction, there will be more time to spare if one devotes a part of his day to courtesy.

But there is danger in too much courtesy. Every virtue becomes a vice if it is carried too far, and frank rudeness is better than servility or hypocrisy. Commercial greed, there is no other name for it, leads a firm to adopt some such idiotic motto as “the customer is always right.” No organization could ever live up to such a policy, and the principle back of it is undemocratic, un-American, unsound and untrue. The customer is not always right and the employer in a big (or little) concern who places girls (department stores are the chief sinners in this) on the front line of approach with any such instructions is a menace to self-respecting business. America does not want a serving class with a “king-can-do-no-wrong” attitude toward the public. Business is service, not servility, and courtesy works both ways. There is no more sense in business proclaiming that the customer is always right than there would be in a customer declaring that business is always right, and no more truth.

No good business man will argue with a customer, or anybody else, not only because it is bad policy to do so, but because his self-respect will not allow it. He will give and require from his employees courteous treatment toward his customers, and when doubt arises he will give them (the customers) the benefit of it. And he will always remember that he is dealing with an intelligent human being. The customer has a right to expect a firm to supply him with reliable commodities and to do it pleasantly, but he has no right to expect it to prostrate itself at his feet in order to retain his trade, however large that trade may be.

Too little has been said about courtesy on the part of the customer and the public—that great headless mass of unrelated particles. Business is service, we say, and the master is the public, the hardest one in the world to serve. Each one of us speaks with more or less pitying contempt of the public, forgetting that we ourselves are the public and that the sum total of the good breeding, intelligence, and character of the public can be no greater than that of the individuals who make it up.

0

Understanding Social Forces

Posted on January 25, 2012

social forces in business
by haylesyable under CC BY 

.

Some four years after the strike the business head of the firm testified in a public hearing that he should scarcely know how to conduct his business without the organization which now obtains for dealing collectively with labor. He also in the same hearing expressed the view that a large employer is a trustee of the public, responsible for the measure of public welfare in which his business results; and this man, remember, is not a reformer or even a radical, but just a successful business man.

In this bit of labor history there were, no doubt, many fortunate but uncontrollable factors which, otherwise combined, would have brought a less happy result. But two things stand out: first, the laborers listened to wise counsel—they were well led; and second, the employers, when they consented to make an agreement, gave the plan adopted their genuine support. Combining good citizenship with business sense they were able to understand the new social influences that make the formulas of 1880 a poor gauge of efficiency factors in 1910. They are now enjoying the benefits of their willingness to learn.

The effect of social forces is seen under different circumstances and from an entirely different angle in the present halting policy of American railroads.  Here, in addition to other social elements in the question, is the fact of definite government control. This circumstance has accustomed railway managers to look at both the internal and the public factors in their success. A number of years ago, before Mr. Justice Brandeis became a member of the Supreme Court, he pointed out, as many others have since done, that the railroads were looking too much to the government factor, and too little to the economy and effectiveness of their own internal administration. Even though we concede this point, it is still clear that the highest efficiency of our railroads must wait upon a clarification of policy with respect to the great social fact affecting railway operation—the fact of government control. We may not approve the precise manner in which the railroads respond to this fact, but obviously they cannot be efficient and ignore it.