The Right And Wrong Kinds Of Obsession For Business Leaders
“Medium turkey chilli,” George says sheepishly before stepping to the left and receiving his soup. As Jerry steps up to place his order, George notices that he did not get any bread.
“Forget it, let it go,” Jerry quickly interjects. But George cannot help himself.
“Excuse me, I think you forgot my bread.”
“Bread two dollars extra,” comes the response from behind the counter.
“Two dollars? Everyone in front of me got free bread.”
“You want bread? Three dollars!” Tensions are rising. “Nothing for you! No soup for you.”
The legendary “Soup Nazi” episode of the classic comedy Seinfeld simultaneously shows us the positives and the pitfalls of obsession for businesses.
The owner of a small deli makes fantastic soup thanks to the right kind of obsession for a fantastic product. That's great.
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But he also has an obsession with strict rules. Those who do not adhere are banned for life. To get soup you have to follow a prescriptive ordering process:
Quite clearly, this is the wrong kind of obsession! There is actually a name for it: bureaucracy. Don’t get me wrong, rules and procedures are necessary to ensure efficiency. The problem arises if the rules are obsessive or there is no flexibility to bend them. Never.
The biggest problem though, are the kind of rules that come with obvious benefits for the business – at the expense of its customers.
Think of the small print in your insurance policy that (surprise, surprise) almost never gets you a pay-out. And to get a big one you need to bring in lawyers. Or think of one of your negative airline experiences – which are so common that practically everyone has them – where you were frustrated about a missed flight and all you got was a ￡5 voucher.
So why does this continue? The truth is that for most incumbents, it actually makes sense to use clauses to keep costs down, even at the expense of their customers.
The only time this is no longer the case is when a new player enters the market with a better value proposition, who does not hide behind such rules. This, however, is the exception rather than the rule. Which is why that episode of Seinfeld remains hilariously familiar and uncomfortably relevant nearly 30 years later.
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8 个月This is interesting as I just had an issue with a flight I booked - I booked for the premier seat on an airline and they changed the plane, which meant seat style, last minute. In that instance it would have been proper to offer immediate refund of price, albeit in points, paid. However, the ‘process’ is that I need to contact them, request a refund, which goes off to another department for authorisation… IF authorised. Additionally, in my area of work, we have a saying that allows people to make decisions independently as long as they achieve the ‘intent’. However, over the years - especially during Covid - I fear this ability to make decisions at the lowest level has faded away as risks have increased. I found myself being forced to get involved at a levek far below what I thought my function was. I did not need to get involved in shop floor stuff that could have been left to the multiple managers that sat below me. I love empowerment. It not only provides freedom but it also, in an industry such as mine that isn’t profit based, allows people to make mistakes and learn from them - a dry run in the safety of camp. Beaucracy kills innovation and motivation. Dangerous in a world where you must keep up with the speed of relevance
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8 个月What a hilarious yet insightful take on the infamous "Soup Nazi" episode from Seinfeld! This article brilliantly highlights the fine line between dedication to quality and obsession with rigid rules in businesses. It's fascinating to see how the owner's passion for creating fantastic soup clashes with his uncompromising approach to customer interaction. The comparison to real-life scenarios, like navigating insurance policies or dealing with airlines, drives home the point about the negative impact of bureaucracy on customer experience. The reminder that businesses should prioritize customer satisfaction over cost-cutting measures is both timely and thought-provoking. Thanks for sharing this witty analysis that resonates so strongly even decades after the episode first aired, Prof. Christian Stadler.
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8 个月Professor Christian Stadler thanks for sharing and such an intersting question. I think the right kind of obsession for business leaders involves a focus on key performance indicators (KPIs) aligned with strategic objectives, customer needs, internal processes, and long-term sustainability. This ensures a balanced approach to performance measurement and improvement. Conversely, the wrong kind of obsession may include fixating solely on short-term financial metrics, neglecting other aspects of the business such as customer satisfaction, employee development, or innovation. This narrow focus can lead to short-sighted decision-making and hinder long-term growth and success.