I have used the last six editions of this column to discuss my infinite stake theory focusing on building institutionalized business entities that create enduring value for others. The infinite stake theory can be applied to all the sectors of human endeavour, be it government, education, and nonprofit oriented organisations.
The summary of the previous articles is for every business entity to have an infinite objective that is not expressed as financial rewards to the owners. However, the eternal purpose will bring more than commensurate returns in finance, customer loyalty, and, most importantly, the fulfilment from serving generations.
The second catch point is for business owners to focus on the group of powerless people who are the majority in numbers and through whose blood and sweat the organisations’ fortunes are generated. They are, in most cases, the frontline staff who are not seen as leaders and are not included in the prerequisite of office or in the executive bonus scheme.
Today’s edition is the last in the series on the infinite theory on business organisations. The infinity stake theory will create sustainability for established entities in any sphere of life. Service is the bastion of my infinite stake theory, and the secrets of companies that have endured generational business turbulences are unbelievable services to their targeted customers.
Service in the infinite sense is not the lip customer services we all know. It is beyond training employees to fake happiness and gives cosmetic smiles to customers for the brand’s sake. It goes beyond a process to follow to a lifestyle of purposeful engagement and inspiring communication to serve others and derive fulfilment from being a service provider.
For any organisation that will be infinite, employees are the critical factor of relevance to the future. The future without engaged employees is uncertain. Aside from employee engagement, the future is bleak if there is no ‘top-down’, ‘bottom-up’ and ‘everywhere’ service mindset.
In the infinite stake theory, focusing on service will birth an atmosphere for a fair reward system for positive contributions without considering the level or position of the value creator
All the stakeholders must be service providers, and the need to earn a primordial service reputation internally and externally must be at the core of the stakeholders engagement strategy. Everyone cannot be happy, but a substantial connection is required for success to be guaranteed. The connecting factor that put everyone in the infinite game is, therefore, service to one another. As Henry Ford put it, success will take care of itself if everyone is moving forward together.
From the founders to the board of directors, to all the levels of management and leadership, the mindset of providing service to one another will generate more returns on capital employed than the focus on the owners’ wealth at the expense of the goose that lays the golden eggs.
In the infinite stake theory, focusing on service will birth an atmosphere for a fair reward system for positive contributions without considering the level or position of the value creator. Executive management creates value in terms of leadership and directional support for the employees. In turn, the employees put the customers first with being coerced but serving as a genuine service-minded group with a passion to see customers satisfied end to end. A classical case is the Changi Airport in Singapore.
How do we create such a lofty environment where service excellence become a culture and a second nature?
After having an infinite objective and a well-defined value to be delivered to both internal and external customers, an essential step is applying the 101percent principle. The 101 per cent principle is to identify the one per cent common reason that all the teams must give 100 per cent of their attention. If everyone thinks of service with the same mindset and definition, exceeding the stakeholders’ expectations will become a walk away.
How do I mean?
Organisations should be authentic in their service journey. It is not enough to want to give good service because of competition or for profitability’s sake. The authenticity to meet and exceed customers’ expectations must be boldly engraved into how the company treats internal customers. This was what I termed employee capitalism in one of the previous articles on the infinite stake theory. With fair treatment in place, the next port of call is a continuous and actionable service education across the Organisation’s spectrum. The constant reinforcement and reward for excellent service build a culture of sacrifice. It is necessary to know the limitation of training which most time gives no room for innovation and initiative. I will expect a pilot to do what he had been trained to do when faced with a specific turbulent flight situation. But a person attending to customers need to show the value of education as the scenario will be different from one customer to another. The value of education is to ignite thinking and respond appropriately to a different situation. Thus, education enables us to do as the occasion demands.
Identifying the infinite purpose for the service provided, engaged employees who are treated like the owners at all levels, intensive and actionable service education, and the culture of service is the primary reasons organisations like Costco, Singapore Airlines, Southwest Airlines, Google, and Apple became cult heroes among their peers. The exceptional records of return on capital, shareholders’ value, and low level of employee attrition resulted from excellent service culture based on the commitment and the efficiency of the internal stakeholders.
Conclusively, business owners and corporate leaders who desire perpetuity and relevance for their organisations need to comprehensively review their business models, employees and stakeholders’ engagements and use service as a common focus for achieving the infinite status.
