Broken Windows in Business : Part 3

Broken Windows, Broken Business: How the Smallest Remedies Reap the Biggest Rewards
by Michael Levine

(Page 3 of 3)

It doesn't matter if you tell a suspicious customer about your scrupulous cleaning techniques, your patented methods for keeping the food away from anything that might fall on it, or your plan to speed up counter lines. Mostly, it doesn't matter because the customer isn't ever going to tell you about her concerns; she's just not coming back to your store again. Generally speaking, consumers will not voice their complaints. (I know, you've heard plenty of bitching and will argue with me, but the truth is that the vast majority of those who find something wrong will not communicate that perception to you - they'll just stop being a customer.)

The thing about a broken window is that it's not always obvious. The owner of the coffee outlet in this scenario isn't necessarily someone who doesn't care about his business or is given to outrageously lax upkeep. This is someone who either didn't notice that his paint job was starting to erode or felt that by waiting another year to paint he could save some operating capital, and besides, sales were consistent and the customers hadn't complained. There are other, squeakier wheels to grease.

Unfortunately, that is the attitude that can sound a death knell for a business, but on a frequency the human ear can't detect. Let things slip, let the clientele notice things you haven't, and you might as well throw a Molotov cocktail into your store and start from scratch: Your business is on its way out. Constant vigilance, an absolute obsession with detail, is essential to running a business today, particularly one that deals directly with the public (although we will be considering business-to-business broken windows as well).

If you're not obsessed with the details of your business, you can believe me, there will be someone who is obsessed with his, and he will see to it that he overruns your customer rolls and decimates the loyalty you've built up with your regular clientele. Show the slightest chink in the armor you've built up, and an exposed weakness will become the most obvious flaw you can imagine. Your business, to put it simply, will not survive too many broken windows. And "too many" is "one."

Consider the case of Martha Stewart. Was Ms. Stewart convicted of insider trading? Fraud? Tampering with a public trust? No. She was convicted of wrongdoings involved with covering up whatever alleged improprieties had gone on. Why was she trying to cover up? Because she was concerned about the perception that her business was unscrupulous and that she, personally, was not trustworthy. Obsession with detail? Perhaps, but far too late. You can't fix a broken window by throwing rocks through all the others.

Many a politician has been brought down not by accusers who had solid evidence that the official had done something illegal or unscrupulous, but by the effort to suppress the perception that might have come from the allegation itself. History is littered with the carcasses of officials who were discarded after trying to cover up something that might not have been as serious a scandal had it been dealt with quickly and efficiently - and publicly.

A broken window, make no mistake, is best repaired before it breaks. The most desirable scenario is to fix the problem before it is visible, and never to have to consider perception, because there will be nothing to perceive. But if a flaw arises, the only course of action - the only course - is to deal with it immediately, to do so without trying to put a cosmetic sheen on it, and to make sure it is, without question, repaired. A piece of masking tape on a cracked window might prevent it from breaking, but it will be visible for all to see and will have the same perceived effect as a broken window itself. Repairs must be complete and immediate.

But what constitutes a broken window in business? It's easy to spot the physical ones, like the peeling paint on a wall, but what about the less obvious problems? What about employees who don't follow the company's stated policies and present a flawed, incorrect picture to the consuming public? How can you deal with a broken window when you're in corporate headquarters and there are thirty thousand outlets to oversee?

Well, consider the case of the world's largest restaurant chain. Its broken windows have come very close to bringing down the house. The last chapter in this story has yet to be written, but the fact that it was ever in question is a testament to the power of broken windows and how far the mighty can fall. Indeed, consider the case of McDonald's, which once was considered (and considered itself) invincible, and see what broken windows can do, even to a giant.

Perception vs. Reality

• It is your customer's perception of your business that will dictate his or her level of loyalty to your business. Make one mistake, and you can damage that perception.

• Little things mean a lot. If you notice that the carpet on the floor at your dentist's office is a little worn, you might find yourself wondering whether the dental instruments have been replaced recently.

• Broken windows are best repaired before they break.

• It's the cover-up that gets you - don't make excuses for broken windows or deny that they're broken. Take your hit, own up to the problem, and fix it.

• Obsession to detail is essential. There is no substitute.

Copyright © 2005 by Michael Levine

About the Author

Michael Levine is the author of eight of the most popular reference books of the last decade. His 1984 The Address Book-How to Reach Anyone Who's Anyone and its seven consecutive sequel editions set standards for accuracy, completeness and public acceptance. Additional books include Take it from Me, 7 Life Lessons from Noah's Ark; How to Survive a Flood in Your Own Life, and public relations for the digital age, Guerrilla PR Wired. Levine's essays on a range of subjects have appeared in various prestigious publications including the L.A. Times, The Hollywood Reporter, San Francisco Chronicle, The New York Times, USA Today, and National Review.