Customer-Centric Leadership: Let the Numbers Take Care of Themselves

By Jamey Lutz—

Focus first on people... not numbers.

In his excellent book Reset, author Dan Heath challenges us to ask a thought-provoking question when formulating organizational performance goals: "What's the goal behind the goal?"

Suppose we're contemplating a call center target to reduce the average customer call handle time by 25%. By asking ourselves honestly, "What's the goal behind the goal?" we might uncover that our primary intent is to drive cost savings and improve efficiencies – a perfectly reasonable aim in itself. However, this approach could have unintended consequences. The potential impact on the customer experience – pushing callers off the phone as quickly as possible – could be wholly negative, ultimately driving loyal customers straight to the competition. Without careful consideration, we risk becoming so fixated on achieving the goal that we lose sight of the bigger picture.

This phenomenon aligns closely with Goodhart's Law, which states: "When a measure becomes a target, it ceases to be a good measure." In other words, when we focus too heavily on a specific metric, we inadvertently distort its reliability as an indicator of success. The metric becomes the goal, and the broader objectives it was meant to represent are often compromised.

I witnessed this firsthand while working with a retail organization eager to surpass its biggest competitor's online Google 5-star rating average. At first glance, the goal seemed harmless, even admirable – encouraging exemplary service experiences should be a win for both customers and the company, right? But the strategy they employed was deeply flawed. They decided to include a link to Google reviews at the end of their transactional customer survey. However, they only invited customers who provided the highest survey scores to post reviews! This tactic effectively "gamed the system," artificially inflating performance metrics while offering no real reflection of overall customer sentiment.

Such behaviors become even more prevalent – and problematic – when financial incentives are tied to goals that don’t align with customer-centric outcomes. In striving to meet these performance targets, organizations run the risk of alienating the very people they're supposed to serve. Goodhart's Law reminds us that metrics, when overemphasized, can lead to misguided incentives and counterproductive outcomes.

Ultimately, it all comes down to one simple yet powerful principle: "If we take care of our customers, the numbers/goals will take care of themselves."

Challenge: Before setting your next performance goal, ask yourself: Is this goal genuinely designed to benefit both the customer experience and the organization’s ability to better assess and respond to their needs? If not, how can you reshape it to align with the bigger picture? Remember, true success is measured not just by numbers, but by the lasting value you create for your customers.

jameylutz.com