• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer
  • Valize
  • Subscribe
  • Contact
Rita McGrath Group

Rita McGrath

Author. Speaker. Consultant.

  • Home
  • Learn About Rita
  • Work with Rita
  • Rita’s Work
    • Podcast
    • Books
    • Videos
    • Articles
    • Press
  • Thought Sparks
  • Events

November 28, 2007

Is your company unintentionally creating executive blind spots?

One of the nice things about being a very senior executive with a multinational company is that the job comes with perks.  Sometimes, however, these perks can have the unintended effect of isolating key decision-makers from the very information they need most. 

Example:  For decades, the top executives at America’s leading automobile manufacturers always drove the latest models—washed, maintained, and looked after by in-company employees.  How on earth could they possibly know about quality, maintenance, service or other issues faced by ordinary customers when they never encounter them? 

Example:  One of our telecommunications manufacturing clients used to routinely give the latest handsets and toys to its key executives.  As a result, these folks never had to go into a phone store, never had to deal with inefficient or even hostile distributors, and never had to compare their offerings with competing products.  It was only when the company radically changed this policy and forced its folks to go directly through the same channels customers had to use that they realized that their once-unassailable advantages with customers were starting to erode. 

Example:  A mobile telecommunications operator routinely had its operations staff make sure that the cellular signals in the headquarters office and even key residential areas inhabited by senior executives were strong, reliable and consistent.  Imagine the surprise these executives felt when friends and relations expressed their infuriation with spotty coverage, dropped calls or weak signals—after all, this never happened to them!

The message?  Sometimes, buffering senior people from exposure to ordinary experiences unintentionally gives them a false sense of security with respect to the quality, reliability or convenience of your offerings.  This in turn can breed dangerous complacency and a lack of urgency with respect to underlying problems.  In best-practice companies, in contrast, there are mechanisms to make sure that direct contact with customers is a part of every executives’ normal job.  At Amazon.com, for instance, executives routinely spend time on the phones with customers.  At Ikea, a few times a year executives and line-level staff work together.  At Continental and Southwest airlines, it would not be unusual for executives to spend time at the ticket counter or handling baggage.  We’ve found that there is no substitute for first-hand experience when it comes to creating the impetus for improvement. 

Filed Under: Business Strategy, Discovery Driven Planning

Primary Sidebar

Previous Sparks

  • 2023
    • March
    • February
    • January
  • 2022
    • December
    • November
    • October
    • September
    • August
    • July
    • June
    • May
    • April
    • March
    • February
    • January
  • 2021
    • December
    • November
    • October
    • September
    • August
    • July
    • June
    • May
    • April
    • March
    • February
    • January
  • 2020
    • December
    • November
    • October
    • September
    • July
    • June
    • May
    • April
    • March
    • February
    • January
  • 2019
    • December
    • November
    • October
    • September
    • August
    • July
    • June
    • May
    • April
    • March
    • February
    • January
  • 2018
    • November
    • October
    • September
    • July
    • June
    • April
    • March
  • 2017
    • July
    • June
    • May
    • March
    • January
  • 2016
    • December
    • October
    • August
    • July
    • June
    • May
    • March
    • February
    • January
  • 2015
    • November
    • October
    • September
    • June
    • April
    • March
    • February
  • 2014
    • December
    • November
    • October
    • August
    • July
    • June
    • May
    • April
    • March
    • February
    • January
  • 2013
    • December
    • November
    • October
    • September
    • August
    • July
    • May
    • April
    • March
    • February
  • 2012
    • December
    • November
    • October
    • September
    • August
    • July
    • June
    • May
    • April
    • March
    • February
    • January
  • 2011
    • December
    • November
    • October
    • September
    • August
    • July
    • June
    • May
    • April
    • March
    • February
    • January
  • 2010
    • December
    • November
    • October
    • September
    • August
    • July
    • June
    • May
    • April
    • March
    • February
    • January
  • 2009
    • December
    • November
    • October
    • September
    • August
    • July
    • June
    • May
    • April
    • March
    • February
    • January
  • 2008
    • December
    • November
    • October
    • September
    • August
    • July
    • June
    • May
    • April
    • March
    • February
    • January
  • 2007
    • December
    • November
    • October
    • September
    • August
    • June
    • May
    • April
    • March
    • February
    • January
  • 2006
    • November
    • October
    • September
    • August
    • July
    • June
    • May
    • April
    • March
    • February
    • January
  • 2005
    • December
    • November
    • October
    • September
    • August
    • July
    • April
    • March

Topics

  • Academic Concerns
  • Articles
  • Business School
  • Business Start Ups / Entrepreneurship
  • Business Strategy
  • Careers
  • Case Studies and Applications
  • Checkpoints
  • Competition
  • Complexity
  • Customer insight
  • Digital
  • Discovery Driven Planning
  • Event Announcements
  • Executive Education
  • Friday Fireside Chat
  • Fun
  • Growth
  • Growth Options / Real Options
  • Individuals
  • Innovation
  • Innovation Flops
  • Innovation Maturity Scale
  • Insights and ideas
  • Jobs
  • Leadership
  • News Archives
  • Opportunities
  • Profitable Organic Growth
  • Reviews
  • Seeing Around Corners
  • Strategy Dynamics
  • Strategy Execution
  • Technology
  • Thought Sparks
  • Tools
  • Transient Advantage
  • Uncategorized
  • Valize
  • Videos
  • Women's leadership

Footer

For Subscribers

  • Opportunity Portfolio Toolkit
  • Seeing Around Corners Workshop Guide
  • Get Premium Content with Thought Sparks!

Connect with Rita

Rita McGrath Group
P.O. Box 7286
Princeton, NJ 08543

  • © Copyright 2004-2023 Rita McGrath Group. All Rights Reserved.
  • • Privacy Policy
  • Created with ✨ by Moxie Design Studios
This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish.Accept Reject Privacy Policy
Privacy & Cookies Policy

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Non-necessary
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.
SAVE & ACCEPT
Scroll Up