Ten Customer Loyalty Ideas

By Dick Stark

Note: the following article was from last Friday’s internal Weekly Star company newsletter.  As such, it is intended for RightStar employees, but I’m posting it on my Blog for anyone else to read.

I visited a RightStar SDE customer this week.  For many reasons, mostly due to customer budget cuts, customer project staff turnover, and customer delays, the project has not gone well and work still remains to finish the project.  The customer has also informed us that internal budget cuts mean they will not be able to spend any more money at this time.  With five to ten days of work remaining should we abandon the project and walk away, or salvage what we can by providing free services to complete the job?

Customer satisfaction, or “every customer a reference,” is a RightStar customer motto and a critical success factor for RightStar.  Why is it sometimes so difficult?  What can we learn from satisfied and dissatisfied customers? 

Every customer a reference may be a slight stretch, since some customers may never be fully satisfied, no matter how hard we try, but thanks to social media, we have what’s now referred to by internet marketing expert Gary Vaynerchuk, as the Thank You Economy.  According to Gary, “The Internet has given consumers back their voice, and the tremendous power of their opinions via social media means that companies and brands have to compete on a whole different level than they used to.”   As a result, most customers now feel entitled to excellent service and select vendors, on the basis of good service, not product or price. Here are ten customer loyalty ideas (thanks in part to Shep Hyken).

  1. Deliver great customer service.  It’s expected.
  2. Always do what you say you will do. 
  3. Don’t be late.
  4. Don’t make excuses or blame others – be accountable.
  5. Help solve their problems. Differentiate between customer requirements and specifications.  The customer specification (or SOW) is what the customer has asked for.  The customer requirements are those that remove obstacles to customer satisfaction.  Work hard to deliver the customer specifications first and try to reserve some time for the actual customer requirements. 
  6. If you catch a problem, call them before they call you. No surprises, ever!  Keep your customer informed throughout the entire job.  A short daily email informing the customer of your daily activity is required.  Remember, if it isn’t written down, it didn’t happen.
  7. Trust them, if you want them to trust you. Learn as much as you can about the customer’s business.  If it is a service desk, ask to spend some time in the call center. If it is an asset tracking requirement, make sure you get a tour of the warehouse.
  8. Be accessible and easy to reach.
  9. Return phone calls, emails and social media comments quickly.
  10. Create confidence.  (Do all of the above and we will be off to a good project start)
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Stay Hungry Stay Foolish

By Dick Stark

In memory of Steve Jobs who died on Wednesday, please read or view his commencement address that he gave at Stanford University on June 12, 2005 as he was recovering from cancer. It is the most popular commencement address ever on YouTube. Some of you know that I was so enamored by Steve’s talk, that his “Stay hungry, stay foolish” tag line became RightStar’s motto for 2006.

I won’t attempt to try to paraphrase, summarize, or translate what “Stay hungry, stay foolish,” means to me or RightStar.  Instead, please take the time and watch for yourself.

http://www.youtube.com/watch?v=UF8uR6Z6KLc

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Monitor and Operate

By Dick Stark

BMC’s Monitor and Operate (aka Service Assurance) product line is one of its fastest growing product areas.  With the recent Coradiant and Neptuny acquisitions, BMC significantly strengthens its offering in the APM and Capacity Optimization spaces. The synergies between Coradiant’s TrueSight technology and BMC’s ProactiveNet Performance Management’s (BPPM’s) behavior learning engine, coupled with the possibility of eventually integrating technology derived from BMC BladeLogic Application Release Automation, will significantly differentiate BMC from its closest Monitor and Operate competitors.

RightStar currently has four on-going Monitor and Operate jobs, all of which center around BMC’s Atrium CMDB/Remedy as the application centerpiece.  For those of you that don’t know, Monitor and Operate make up one-fourth of the BMC “product wheel.” It is a set of products from BMC that provide predictive intelligence for IT operations. According to BMC, this route to value “integrates service impact management with event processing automation to build a service model that maps IT components to the business services they support, consolidates, enriches, and correlates events, and determines root causes and the impact of events on business services.” In other words, BMC Service Assurance helps predict events and automate their resolution before they disrupt the business.

Monitor and Operate is also known as service impact and event management. These products have been around for years—better known by their old name, BMC Patrol. Most companies of more than 2,500 employees already have some form of Service Assurance products, like HP Operations Manager, CA-Spectrum, IBM Tivoli, Microsoft SCOM, or EMC Smarts.

RightStar is authorized to sell and provide L1 support for the entire BMC Monitor and Operate product line, including APM, Capacity Optimization, Enterprise Scheduling, Event and Impact Management, and ProactiveNet Performance Management.

Now that we are BMC Monitor and Operate authorized, and have in-house expertise, how should we sell these product solutions? My view is that we need to offer Monitor and Operate to our existing Remedy customer base.  Accounts like the four previously mentioned are good prospects because they understand the BSM message and the value an integrated Monitor and Operate solution can provide.

As always it will be up to us to sell the value—improved IT efficiency, better root cause analysis, decreased time to repair, reduced service desk volume, and improved customer satisfaction. It is up to us to make sure that all our customers understand how Monitor and Operate fits with their overall event-to-incident/problem resolution processes, including workflow, escalation and integration with service desk tools.

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Plywood Leadership at the INC 500 Conference

By Dick Stark

I just returned from the INC 500 Conference which I’ve attended every year for the last four years.  This year RightStar came in at #1975 on the list, after hitting #’s 1264, 454, and 892 in years 2010, 2009, and 2008 respectively. This list ranks private company growth rates over the preceding four years.  Of course, as we get bigger, it will be harder and harder to sustain the growth rates that RightStar has experienced in the past.

This year’s conference was the best ever. I enjoyed listening to General Stanley McChrystal, former commander, US and International Forces in Afghanistan, Barbara Corcoran, Real Estate Mogul and Star of ABC TV Show, Shark Tank, Gary Vaynerchuk, author of Crush It!, and Scott Harrison, Founder and CEO of Charity: Water. Each presented a compelling success story of their own with underlying themes of leadership, happiness, social media, and corporate responsibility.

Plywood Leadership. In Afghanistan, General McChrystal described the Plywood Palace that his men build as a command center out of two by fours and plywood. This palace could be easily modified to convert to almost anything and very quickly.  It was a symbol of strength, flexibility, and versatility.  General McChrystal concluded that his troops were like plywood, which although composed of thin sheaths, were at their best when glued together.  It is this leadership glue that provides the winning difference.

The Thank You Economy.  Gary Vaynerchuk, author of The Thank You Economy and Crush IT! is a social media guru.  Gary proclaimed that the Internet has given consumers back their voice, and the tremendous power of their opinions via social media means that companies and brands have to compete on a whole different level than they used to.  He concluded that those companies without social media will be left behind.

Shark Tank.  Barbara Cocoran, star of Shark Tank, described her rise to fame and fortune in the competitive New York real estate market.  Her formula?  Perception creates reality. She was able to grow through shrewd marketing and hard work.

Charity:Water.  Scott Harrison, CEO and Founder of Charity:Water presented the most remarkable rags to riches story, not just because of his rapid growth, but because his charity is designed to give 100% of the donations to clean water projects. In just five years he has provided clean water for two million people in developing nations around the world.  The bottom line: every $1 invested in improved water access and sanitation yields an average of $12 in economic returns, depending on the project.

What other INC 500 company can make that kind of claim?

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Two Big ITSM Ideas

By Dick Stark

This past week MeriTalk, a government IT think tank presented its first annual Merit Awards, an award: challenging the world to come forth with ideas on how to use IT to improve the quality of government. The first place winner: Aung Gye, Federal Highway Administration, who took home a check for $50,000.

And, last month CIO Magazine presented its annual CIO 100 Awards to the organizations that are the best at using IT to achieve business value.  Both the Merit and CIO Awards honor organizations and individuals with great ideas and the application of these ideas through the strategic use of IT. Other evaluation factors include the ability to affect change through sheer will and innovation, cost reduction, improved customer satisfaction and efficiency.  Following are awardee examples on how IT can be used to push organizations to do more and the role that RightStar and BMC can play.

Aung Gye’s award winning idea is incredibly simple: create a nationwide, interactive database of government resources, from conference space to office equipment and automobiles, to ensure full utilization.  Many government departments/agencies have assets such as automobiles, vans, buses, airplanes, boats, office equipment, office space, meeting rooms, conference facilities, that are not utilized at all times. Aung’s idea is to share the use of these unused assets by developing a centralized nationwide database to see what assets are available during which time frames by department/agency and by location, to match the need of the requestor. The same principles of a CMDB for IT assets can be applied to non-IT assets. BMC’s Atrium CMDB paired up with its Remedy Asset Management module can be set up for acquisition and sharing of any new equipment/services where multiple agencies can reap the benefits. This will maximize the use of the unused assets/services and minimize unnecessary spending of tax payers’ dollars.

One of the CIO 100 Honorees, HealthSouth was profiled because of how rapidly it came back from its days of falsifying financial statements (both its CFO and CIO were given prison sentences).  HealthSouth is an award winner in part because of its use of business analytics to provide 97 rehabilitation hospitals unified data in dozens of categories.  These include labor and therapy productivity, supply-chain expenses, and patient satisfaction.  All told, 97 hospitals are able to compare themselves against each other.

Similar in functionality to BMC’s ITBM modules of Service Costing and Project Portfolio Management, HealthSouth now relies on analytics to improve labor productivity, and measure and increase customer satisfaction.  Analyzed metrics include employees per occupied bed, and cost as a percentage of revenue.  The numbers help decide how to change the way a given facility operates. 

 As an ITSM consultancy, RightStar already works on similar ITSM big ideas ranging from Asset Management to Service Catalog to Capacity Optimization.  What big idea works for your organization?

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Spending Money to Make Money

By Dick Stark

Does the old adage, “you have to spend money to make money,” apply to IT?  If it does, what are the most compelling IT investments today for both commercial organizations and government agencies bent on cost reduction? And specifically, what really matters in the Business Service Management (BSM) space?

Andrew McAfee and Erik Brynjolfsson in the classic Harvard Business Review article, “Investing in IT That Makes a Competitive Difference,” argue that those firms with the best processes (order fulfillment, field installations, job closing) win.  They recommend a three step strategy, which I’ve applied towards BSM IT investments.

1. Deploy a consistent technology platform, rather than stitching together a jumble of legacy systems. At a local commercial organization, RightStar is implementing BMC Capacity Optimization, BladeLogic Server Automation (BBSA), ProactiveNet application performance management with Remedy OnDemand (RoD) as the Service Management toolset. This is a perfect example of an integrated BMC BSM solution, which BMC also markets as its Cloud Lifecycle Management suite.  While not every customer wants to “rip and replace” with BMC, the benefits of an integrated “ERP for IT” are significant.

Last week I visited a large BMC account. They utilize BMC (BBSA, RoD), HP (RealOps, LoadRunner) and IBM (Netcool) BSM products.  The IT Vice President understood the value of a consistent technology and promised over time to consider consolidating to more BMC products.

2. Innovate better ways of working. Last week, we also met with a large asset/property management prospect.  There we presented MagicWand, RightStar’s asset management barcode add-on to SDE as a better way of reconciling what they “think they have,” with what they actually have.  Money was leaking out of the organization and the annual inventory “find percentage,” while getting better, still had room for improvement.  With MagicWand, RightStar has six years of technology innovations and improvements under its belt, and last week another suggestion was offered up:  use MagicWand as a document management tool by barcoding and tracking case folders.

3. Propagate these process innovations wildly throughout your company. One of the first questions asked during the asset management sales call, was, “does your organization have Standard Operating Procedures (SOPs) for Asset Management.” And it was the same answer that we’ve heard time and time again, “yes, but they are a work-in-progress.”  The ITIL framework makes these SOPs easy to propagate, yet hardly any organization places process SOPs high on the to-do list. Process innovations if properly adopted, represent the absolute highest return on any investment in IT and the biggest difference in performance improvements. 

We all know that it is not easy to successfully deploy BSM.  The toolsets are somewhat complicated to configure, and getting users to adopt new software and processes is even more challenging.  RightStar can assist with both technology and process, thereby assuring a profitable return on investment.

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The Art of Racing in the Rain

By Dick Stark

This weekend’s Baltimore Grand Prix Formula 1 race reminded me of Garth Stein’s novel,  The Art of Racing in the Rain. Even if you are not crazy about dogs or auto racing, the short time it takes to get through the book is highly worth it.

This is the first book I’ve read that’s narrated by a dog—in this case, Enzo, a shepherd, terrier, poodle mix. Enzo has spent years watching daytime television, mostly documentaries and the Weather Channel. Because its owner Denny is an auto mechanic and aspiring auto racer, they watch countless hours of race footage.

That which you manifest is before you. “Drivers are afraid of the rain,” said Denny. “Rain amplifies your mistakes, and water on the track can make your car handle unpredictably. When something unpredictable happens you have to react to it. If you’re reacting at speed, you’re reacting too late. And so you should be afraid.”

By pushing the limits, Denny initiated the action and was able to react before even the car knew a spin was coming. Thus, that which you manifest is before you. We are the creators of our own destiny. Be it through intention or ignorance, our successes and our failures have been brought on by ourselves.

Racing is about intelligence and discipline, not about who has the heavier foot. Denny explains that with experience a driver adjusts his understanding of how a car feels when it is near its limits. A driver becomes comfortable driving on the edge, so he can easily correct, pause, and recover. Sometimes the smarter move is to yield from behind and let the other driver pass. Relieved of this burden, the driver can tuck in behind and make the new leader drive in his mirrors.

Denny’s dog Enzo also loves all things racing, including famous races and drivers. Among them is Ayrton Senna. Ayrton was admired, loved, cheered, honored, and respected. He met his end in May of 1994 at the San Marino Grand Prix when his car failed to turn at the fabled Tamburello corner, known for its excessive danger. Like Denny, Ayrton believed that with “your mind power, determination, instinct, and experience, one can fly very high.” Although Ayrton died at age thirty-four, his death was a turning point in the safety of Formula 1 racing.

Enzo also learns that a driver must have faith in his talent, his judgment, the judgment of those around him, and physics. Even more important, a driver must accept his fate. He must accept that mistakes and poor decisions will be made. One result: a pit-stop that allows his competitors to pass him by. A winner will accept his fate. He will continue on and get back into the race. Enzo tells us, “It is better to finish the race behind the others than drive too hard and crash.”

Of course the book is about more than auto racing and Enzo; it’s an inspiring story about Denny’s life and family including love, devotion, betrayal, and hope. I hope everyone can find the time to read the book and that you enjoy it as much as I did. When life rains on your day, how do you drive?

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Four IT Public Sector Challenges

By Dick Stark

On Friday, I was interviewed by BMC’s Senior Strategic Marketing Manager for an upcoming BMC thought leadership article. The topic: Top IT Leadership Challenges in the Public Sector.  I selected the below four challenges. Here’s a summary of that interview.

Data Center Consolidation. In former Federal CIO Vivek Kundra’s “25 point plan to Reform Federal IT Management,” data center consolidation received top billing. The goal is to eliminate 800 data centers by 2015.  The benefits are obvious: power and space savings as well as the consolidation of applications and servers. This is an admittedly difficult task, as the Feds must choose which of their children will live or die.

Fortunately there are several BMC tools that manage and optimize data center rack layout and environmental performance: nlyte, a BMC Marketzone partner, and BMC’s Capacity Optimization (BCO).

Cloud First Program. The Federal Government immediately assumed a leadership position in the exploding Cloud and SaaS marketplace.  By implementing a “cloud-first program,” agencies are required to evaluate safe secure cloud computing options before making new IT investments. And, NIST has jumped on board with an 84-page draft on cloud recommendations. The topics discussed include data protection, computing performance, reliability, economics and data compliance.  

BMC has wasted no time porting its on-premise software, such as Remedy to a SaaS offering, now known as Remedy on Demand.  BMC is also the market leader in cloud lifecycle management, allowing organizations to build and manage their own private clouds.

Do More with Less. Never have government CIOs been more challenged to do more with less than right now.  Nothing is sacred.  With the Federal Funding and Accountability and Transparency Act, even government contractor’s executive salaries are on display.  Last week, Government Contractor Executive Anita Talwar’s $3M Great Falls mansion made the front page of the Washington Post.  Her story is similar to many others thanks to the government contracting boom that occurred over the past 20 years.

Nearly every BMC product offers a significant ROI, but three in particular offer very rapid returns: asset management/CMDB, Service Costing, and Service Catalog.

Make IT Transformational. According to a recent WSJ article, the question should not be “how do I use technology strategically?” Rather, it should be, “What would be the ideal way to interact with and serve my customers?”  This brought to mind Orange County, a RightStar and BMC customer. Orange County is expanding its 311 service to their web site and utilizing BMCSDE for both self-service and direct callers.  The goal is not to just improve service to its citizens by offering an easy to use portal, but also reduce the number of agents required to answer the phone.

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RightStar Does BCO

By Dick Stark

Last week RightStar kicked off its first BMC Capacity Optimization (BCO) implementation at a financial services organization where we’ve previously assisted with Remedy on Demand, BladeLogic Service Automation, and ProactiveNet. At the kickoff, I pointed out that with BCO, the organization has all the critical components of BMC’s Cloud Life Cycle Management offering, meaning that it has its own private cloud.  What’s critical in any cloud or datacenter is effective capacity management, and I was very happy to help with this missing link.

At the kickoff, we briefly discussed all the typical reasons why capacity management is so important:

  • Need for fast service and optimal performance to support changing business models and new/consolidated data centers
  • Keep services performing and available to meet business needs 24×7
  • Reduce costs by continuously monitoring, analyzing, planning, and optimizing IT across data centers
  • Reduce risk by managing capacity from a business KPI and application perspective

Yet according to the IT VP the real reason for capacity management was to eliminate surprises.  He wanted to avoid having to ask the CIO to write a check for a new disk array, when it wasn’t budgeted until next year.  Also, due to the volatile nature of the financial market, “just-in-time” capacity planning was required.

RightStar’s solution capacity management is BCO, a product that it acquired when it purchased Neptuny in October of 2010. With its lead offering, previously called “Caplan,” Neptuny brought to BMC a solution that could be delivered both as on-premise software, and as a SaaS offering.

Neptuny also brought BMC unique strengths in terms of third-party and BMC data collection leveraging “connector templates” which complement BMC’s existing process-level data collection technology. Neptuny’s agentless “connector templates” can work with a wide variety of already deployed data sources including performance management tools (e.g., BMC ProactiveNet, SCOM), native interfaces and protocols, and custom repositories, as well as CMDB and discovery tools.

Prior to the implementation, I called another BMC BCO customer and discovered that BCO was a terrific product especially its analytics in support of:

  • Performance and business/service driver analysis,
  • Time forecasting analysis extrapolation between performance and business/service drivers,
  • What/if modeling scenarios to predict the impact of change,
  • Simulation and best case analysis, and
  • Accounting and show-back analysis.

This means that real-time decision making can be meaningfully shared across operations, service desk, IT and executive, and other line of businesses. Such an impressive array of role support is quickly becoming necessary as IT leaders seek to optimize not just single departments within their organization, but the entire enterprise that cuts across IT, business, service provider and partner interdependencies.

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Don’t Buy Junk!

By Dick Stark

What a ride! After warning about the possibility of a downgrade several times during the debt ceiling debate, Standard & Poor’s (S&P) on Friday August 5 down-graded the United States credit rating from AAA to AA+, with a negative outlook for long-term debt.  On Monday, August 8, the first trading day after the S&P downgrade, the bond market and gold rallied as investors fled riskier assets in search of safety.  Meanwhile, the equity market, already rattled by the uncertainty created by the debt ceiling debate, suffered another blow with the Dow closing down 634 points.  Since then the Dow has been on a roller coaster ride with wild swings in both directions.

But what does all this bad economic news mean to RightStar?  Well, for starters, not too much.  The financial crisis of 2008 was the result of consumers and companies having loaded up on years of inexpensive credit. Then, when the housing bubble burst, massive amounts of deleveraging led to the Great Recession.  In contrast, today’s predicament is an issue of confidence.  Investors have lost confidence in governments around the world and particularly in their ability to grow economies and to get their fiscal house in order.

Despite the market selloffs, there’s plenty of good news out there. Since 2008, companies have trimmed headcount and cut costs with the result improved profitability.  According to Bloomberg, the S&P 500 is expected to post 13.3% year-over-year earnings growth in the second quarter. Additionally, corporations are hoarding record levels of cash on their balance sheets.

BMC, which has been a Wall Street wonder the past several years saw a 32 percent stock price drop after releasing their Q1 earnings July 27.  In that report, BMC reported flat ESM bookings, but all other numbers beat the street estimate: EPS up 16%, revenue up 9%, license bookings up 43%, and so on.

The result: BMC stock is a terrific value now and this was recognized yesterday by several analysts including Raymond James.  That report lifted BMC from an outperform to a strong buy with a target price of $59.   On what basis?

  • Data Center and Cloud Management. Data center optimization and cloud lifecycle management is hot and BMC has a huge lead over the competiton. A good datapoint is a very large BladeLogic Server Automation job we’re about to begin.
  • Service Support includingRemedy onDemand and RemedyForce.  RightStar has been involved in multiple RoD and RF opportunites and the pipeline looks strong for both on-demand and on-premise offering for the balance of the year.
  • Service Assurance. This past week we kicked off a Capacity Management implementation (aka Neptuny) which we hope will be the first of many.  Effective capacity management provides a terrific ROI as it optimizes resources and applications.

The answer at both RightStar and BMC is not to batten down the hatches, but instead, sell our way out.  And, look for future investments. At any rate, we’ll continue to push all BMC products as AAA rated, a safe investment, with amost zero risk.  No junk sold here!

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