Book Summary: Follow this path-part 1

Follow this path
Most companies innovate, create a great product, make high margins and finally when the competition catches on, see profits and margins fall to nil. We saw it with the telephone industry. the computer industry.

Demmings and Duran showed how we could reduce manufacturing costs. This was followed by a wave of reengineering. While we reduce costs how can we raise margins?
Sooner or later companies make ethical compromises.

We cannot build empires on price. We are simply a commodity then. We must have a relationship with customers that overrides price while maintaining our integrity.

Success of organizations is most dependent on its understanding of psychology. How individuals and customers view the organization is most important. Human nature is the most important trait that we must manage.

Great organizations hone the winning traits of their employees in connecting with their customers. This is the only area today that can be improved upon significantly in most firms.

Employers held power in years past. Working harder meant more productivity.Monopolies were the winners. Loyalty was a given.

Today people change firms and jobs. Diversification is a necessity. TV coverage has increased business news. Customers have more choices today. Deregulation is the norm. The competition is worldwide for most organizations. Image and income are both vital today.

A reliable customer base is oxygen for an organization. Great firms can chart a map through the 'customer maze'. The best employees in these firms can do what they are good at. As a result profit and growth flourish. These employees are said to be emotionally engaged employees.

Organizations treat employees and customers as emotional beings. They had a way to utilize employees and engage customers.

Emotions are among the least understood facets organizations today. Employee traits and behaviors are hidden messages about the talents they possess. Most organizatios overlook these traits as they are too complex.

People are stereotyped and conventional wisdom says that all must be treated the same and that all employees and customers must be treated the same way. Most managers do not know how to describe these issues and don't bother understanding them.

The soft side of human nature is gaining attention, particularly in the financial community. References to 'Human capital' are increasing. Organizations are trying to find the role of human nature in shaping outcomes.

Genetics and environment shaped the neural pathways in our minds. They give each of us our own way of reacting to the world. They are the basis of our talents. Talents and engagement are emotionally driven. They are our only competitive advantages.

Emotions determine what customers respond to. They are least understood by organizations. However, organizations bring forth brands products and technology to appeal to the emotions. The most powerful transmitters of emotions are the human visage and voice. Every human interaction either raise or diminish emotions.

Emotions are specific and consistent responses to physiological stimuli. It happens instantaneously and cannot be controlled volantarily. They can overide reasons.

Grades and training are not the only indicators for the right job. Organizations look for human nature. They look "inward instead of forward". Engagement of employees create sustained growth. Emotions work outside the rational path.

Discover the talents of Each Employee

Find out what makes them tick. Some people are not cut out for certain tasks. Despite great efforts, they never get proficient at those tasks. The more they try, the more they erode customer relations.

Managers erroneously assume that all successful employees have similar work habits, that these habits can be and should be learned. Most companies look at resumes while hiring and overlook the person and her traits that may or may not suite the role. Many are not put in the job they were hired for, in the first place. Training for employees is only given to address weaknesses, not to bolster strenths. It is only a way to standarize information. Giving a person a promotion to a role she is unsuited for is another mis-step in most organizations.

Individuals do things the way they are wired. Organizations cannot change the way these individuals process their environment. Great organizations differentiate between knowledge, skills and talent. Knowledge is either factual or gained from experience. Skills are the how-to aspects of jobs. Talent is the facet that brings about superior performance.

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