Tuesday, August 30, 2005

Start With Customer and Work Backwards

Since resources are usually limited, it is sometimes difficult to decide what to spend money on first. A simple rule of thumb might help when alternatives are difficult to choose between. When deciding how to allocate resources, begin at the customer and work backwards. In other words, view each alternative in terms of its ability to enhance the customer's experience with your company. Does spending money on one alternative enhance customer service in some way? Does it sell more products? Will it strengthen relationships with customers? Rank alternatives from most likely to positively enhance the customer's experience with the company to least. If you are looking for a second criterion for selecting alternatives ways to spend money, evaluate the alternatives based on how they could impact employee productivity.

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