Medallia Ideas

The problem—in Blockbuster's case, at least—was that the very features that people thought were strengths turned out to be weaknesses. Blockbuster's huge investment, both literally and psychologically, in traditional stores made it slow to recognize the Web's importance: in 2002, it was still calling the Net a “niche” market. And it wasn't just the Net. Blockbuster was late on everything—online rentals, Redbox-style kiosks, streaming video. There was a time when customers had few alternatives, so they tolerated the chain's limited stock, exorbitant late fees (Blockbuster collected about half a billion dollars a year in late fees), and absence of good advice about what to watch. But, once Netflix came along, it became clear that you could have tremendous variety, keep movies as long as you liked, and, thanks to the Netflix recommendation engine, actually get some serviceable advice. (Places like Netflix and Amazon have demonstrated the great irony that computer algorithms can provide a more personalized and engaging customer experience than many physical stores.) Then Redbox delivered the coup de grâce, offering new Hollywood releases for just a dollar.

While most employees appreciate public acclaim and the occasional monetary award, the highest achievers want something more. They want bigger problems. They want an opportunity to tackle mean, hairy challenges and make a significant contribution to the company.

In THE SUPPORT ECONOMY, authors [Shoshana] Zuboff and [James] Maxmin observe that companies haven't kept pace with the culture at large, because people no longer want jobs—they want support to fulfill their dreams. IBM is a company that gets it. The company recognizes outstanding research scientists by bestowing on them the lifetime status of "IBM Scientist." Along with this title comes several years of time and seed money to develop leading-edge science and technology for the company.

This is one reason why Google has been rated the number-one company to work for. Far from discouraging risk-taking, the company actually demands it. You can’t "organize the world's information and make it universally accessible and useful" without overcoming a few obstacles.

What wicked problems exist at your company? How can you turn hairy obstacles into high-status rewards? Who out there looks hungry for a challenge?

People come to the Apple Store for the experience — and they're willing to pay a premium for that. There are lots of components to that experience, but maybe the most important — and this is something that can translate to any retailer — is that the staff isn't focused on selling stuff, it's focused on building relationships and trying to make people's lives better. That may sound hokey, but it's true. The staff is exceptionally well trained, and they're not on commission, so it makes no difference to them if they sell you an expensive new computer or help you make your old one run better so you're happy with it. Their job is to figure out what you need and help you get it, even if it's a product Apple doesn't carry. Compare that with other retailers where the emphasis is on cross-selling and upselling and, basically, encouraging customers to buy more, even if they don't want or need it. That doesn't enrich their lives, and it doesn't deepen the retailer's relationship with them. It just makes their wallets lighter.

Our mission statement about treating people with respect and dignity is not just words but a creed we live by every day. You can't expect your employees to exceed the expectations of your customers if you don’t exceed the employees' expectations of management.

When you grow up, you tend to get told that the world is the way it is, and your life is just to live your life inside the world. Try not to bash into the walls too much. Try to have a nice family life, have fun, save a little money.

That's a very limited life. Life can be much broader once you discover one simple fact, and that is, everything around you that you call "life" was made up by people that were no smarter than you. And you can change it, you can influence it, you can build your own things that other people can use.

Once you learn that, you'll never be the same again.

Several years ago on an extremely hot day, a crew of men were working on the road bed of the railroad when they were interrupted by a slow moving train. The train ground to a stop and a window in the last car—which incidentally was custom made and air conditioned—was raised. A booming, friendly voice called out, "Dave, is that you?" Dave Anderson, the crew chief called back, "Sure is, Jim, and it's really good to see you. With that pleasant exchange, Dave Anderson was invited to join Jim Murphy, the president of the railroad, for a visit. For over an hour the men exchanged pleasantries and then shook hands warmly as the train pulled out.

Dave Anderson's crew immediately surrounded him and expressed astonishment that he knew Jim Murphy, the president of the railroad, as a personal friend. Dave then explained that twenty-three years earlier he and Jim Murphy had started work at the railroad on the same day. One of the men, half jokingly and half seriously, asked Dave why he was still working out in the hot sun and Jim Murphy had gotten to be president. Rather wistfully, Dave explained, "Twenty-three years ago I went to work for $1.75 an hour and Jim Murphy went to work for the railroad."