Although people may like being called customers—to foster their sense of importance and self-worth—following this well-intentioned fad can lead to an unintended, but insidious, outcome. By labeling everyone a customer, the organization becomes confused about its purpose and whom it is designed to serve. If everyone is a customer, then no one is—and focus on the real customer is lost.

We made this mistake at Harvard Business School in the mid-1990s when a new administration began telling our students that they were customers. In hindsight, the result was predictable: As paying "customers," students demanded that their professors respond promptly to their preferences. Professors and courses had become products that students were purchasing: If customers were unhappy, they reasoned, the product should be changed. Militant demands displaced an environment of mutual respect and shared learning. Needless to say, the practice of telling students they were customers was quickly stopped.

In fact, the customer is too important to follow the practice of calling everyone a customer.



HBS Working Knowledge <[EMAIL PROTECTED]>
wrote:
To: [EMAIL PROTECTED]
Date: Mon, 25 Jul 2005 14:58:23 -0400 (EDT)
From: HBS Working Knowledge <[EMAIL PROTECTED]>
Subject: Newsletter: An Organization Your Customers Understand

Harvard Business School Working Knowledge Newsletter

HIGHLIGHTS THIS WEEK
An Organization Your Customers Understand
Are You Ready to Fight a Giant?
Fool vs. Jerk: Whom Would You Hire?
Jim Heskett Sums Up: How Can Business Schools Be Made More Relevant?

Plus:
Book and Web reports
========================

NEW ON THE SITE
An Organization Your Customers Understand
http://hbswk.hbs.edu/item.jhtml?id=4914&t=strategy&iss=y
Defining your primary customer is an ideal "outside-in" approach to better designing your whole organizational structure. In this excerpt from his new book, Levers of Organization Design, HBS professor Robert Simons describes how to do it.

Are You Ready to Fight a Giant?
http://hbswk.hbs.edu/item.jhtml?id=4915&t=strategy&iss=y
Industry incumbents are surprisingly vulnerable, say two Bain consultants in this article from Strategy & Innovation. Any savvy upstart can successfully challenge a Goliath. For starters: Focus on a powerful customer experience.

Fool vs. Jerk: Whom Would You Hire?
http://hbswk.hbs.edu/item.jhtml?id=4916&t=career_effectiveness&iss=y
You are the hiring manager with a nasty decision to make. Would you hire the lovable fool or the competent jerk? This Harvard Business Review excerpt suggests that the decision is complicated. By HBS professor Tiziana Casciaro and Duke University's Miguel Sousa Lobo.

Jim Heskett Sums Up: How Can Business Schools Be Made More Relevant?
http://hbswk.hbs.edu/item.jhtml?id=4917&t=heskett&oid=4886&rid=4900&hid=4917&aid=-1
Summing up readers' responses to this month's column, Jim Heskett asks (among other questions) which among traditional business schools would be willing to incur the costs of even basic changes to the traditional MBA model.


BAKER LIBRARY SUMMARIES
BOOK REPORTS
Brewing Up a Business: Adventures in Entrepreneurship from the Founder of Dogfish Head Craft Brewery
by Sam Calagione
Wiley, 2005
http://hbswk.hbs.edu/book-review.jhtml?t=entrepreneurship&id=4912
The craft of draft.

Hot Property: The Stealing of Ideas in an Age of Globalization
by Pat Choate
Knopf, 2005
http://hbswk.hbs.edu/book-review.jhtml?t=globalization&id=4913
Counterfeiting as big business and a blot on society.

Knowledge Management in Theory and Practice
by Kimiz Dalkir
Butterworth-Heinemann, 2005
http://hbswk.hbs.edu/book-review.jhtml?t=innovation&id=4911
A textbook that combines KM theory and practice.

ON THE WEB
CasePlace.org
http://hbswk.hbs.edu/web-review.jhtml?id=4922&t=strategy
A good place for educators and executives to find case studies on a variety of business topics.

MOST POPULAR STORIES
Don't Listen to "Yes"
http://hbswk.hbs.edu/item.jhtml?id=4833&t=leadership

Identify Emerging Market Opportunities
http://hbswk.hbs.edu/item.jhtml?id=4903&t=globalization

The $16 Billion Opportunity in—Tchotchkes?
http://hbswk.hbs.edu/item.jhtml?id=4904&t=entrepreneurship

Time to Rethink the Corporate Tax System?
http://hbswk.hbs.edu/item.jhtml?id=4902&t=finance

The New International Style of Management
http://hbswk.hbs.edu/item.jhtml?id=4893&t=globalization

NEW RESEARCH AT HBS
http://hbswk.hbs.edu/new-research.jhtml
A listing of the latest research papers, publications, and cases written by Harvard Business School faculty.

BEST OF FACULTY Q&As
The U.S. Patent Game: How to Change It
http://hbswk.hbs.edu/facultyQAs.jhtml?t=facultyQAs
Innovators and society are paying too high a price in the current patent system, says a new book by Adam B. Jaffe and Harvard Business School's Josh Lerner. A book excerpt and Q&A with Lerner.

ELSEWHERE AT HARVARD BUSINESS SCHOOL
Private Equity and Venture Capital
HBS Executive Education program
http://www.exed.hbs.edu/programs/pevc/
October 19-21, 2005

Corporate Social Responsibility (CSR): Strategies to Create! Business and Social Value
HBS Executive Education program
http://www.exed.hbs.edu/programs/csr/
October 23-26, 2005

Changing the Game: Negotiation and Competitive Decision Making
HBS Executive Education program
http://www.exed.hbs.edu/programs/dm/
October 23-28, 2005

Choices: The Next Chapter of Success
HBS Executive Education program
http://www.exed.hbs.edu/programs/cho/
October 23-30, 2005

Burning Questions: The Return to Growth
Harvard Business School Publishing Conference
http://www.burningquestions.com
October 5-7, 2005


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