Strategic Planning
Don’t Run Your Business With Too Many Company Rules
The problem with making rules in policy is that once you make one rule, you have to refine it, and get rid of the loopholes in that rule as time progresses. This causes an ever increasing complexity, and your policy rules start to confuse your customers, clients, and the consumers who might partake in buying your products or services. Worse, as customers attempt to work around your rules to get what they want at a price they can afford or are willing to pay, your own employees alienate them by attempting to enforce your policies, often finding themselves making arbitrary decisions.
This level of complexity in company regulations has a chilling effect and causes migration of your brand loyalists and strongest customers to your competitors which hear all these complaints and gladly accept these clients into their customer base. It is just amazing how much damage a company can cause themselves in their rule-making. Let me tell you a little story.
Recently, a company that I do quite a bit of business with in fact I might be one of their best customers, although I don’t know for sure, tried to enforce one of their policy rules in an arbitrary way. I had followed their policy, but they decided I didn’t. This irked me to no end, and I had half a notion to go ahead and fund their competition, as this company has lost their main income stream and gotten themselves into a world of hurt.
In fact, the company in question may not even exist in a year or two, or sold for a small percentage of its once extremely high perceived value. Indeed, a recession takes its toll on companies and they must adapt or die. Of course it is very easy to attempt to come back into profits by changing rules of policy, but in doing so it often alienates folks. In this case me, and in this case their best or perhaps one of their best clients. This should be a lesson to all companies, and it is one of complexity and bureaucracy.
Bureaucratic companies, governments, non-profits, militaries, institutions, and even small businesses are inefficient. Now then, I’d like you to know that this advice has come at quite an expense, in fact, I had allowed my company several times to tighten down the rules as my company had grown. Each time I realized that I was killing my company like a cancer and had to get back to our strengthens, and loosen the rules to maintain a solid customer base and team spirit from within. Please consider all this.
Article Source: http://EzineArticles.com/
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