Tag Archives: policy

But We Don’t Sell Tires

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No one knows whether it actually happened. The story goes that a customer walked into a Nordstrom store carrying a set of tires and asked for a refund. The employee refunded the purchase.

There’s only one problem.

Nordstrom didn’t sell tires. This story has been told for decades. It may be true. It may be an urban legend. But that isn’t what makes it interesting.

The story is real. What would management have to believe for this story to become part of the company’s identity?

Most companies answer customer service questions with policies.

  • You must have a receipt.
  • The receipt must be dated within thirty days of purchase.
  • You must pay a restocking fee.

Policies tell employees what they may do. Stories tell employees what they should do. The Nordstrom tire story isn’t really about tires. It’s about trust, something invisible. It creates and communicates.

  • The lifetime value of a customer is greater than the cost of resolving a single complaint.
  • Removing a customer’s fear is more valuable than protecting against every possible abuse.
  • Remarkable service becomes remarkable marketing because customers tell stories.

Whether the tire story actually happened doesn’t matter anymore. The story survives because employees continue to hear it. Customers continue to repeat it. It is now part of the company’s customs and rituals. That’s how culture works.

Policies are written in manuals. Beliefs are written in stories.

So, here’s the question. What stories do people tell about your company when you’re not in the room? Those stories, not your mission statement are often the clearest expression of your culture.

Whose Policy Book Is It?

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“I have been working on this policy book, documenting our methods and processes so we can use them in our training programs,” Javier explained.

“Outstanding,” I replied. “So what gives?”

“We finished the book three months ago, but I can’t get the team to take it seriously. We have a meeting, everyone agrees and follows the process for the better part of a morning. But, as soon as there is the slightest hiccup, they go back to the old way and trash talk the policy book. Then I have another meeting where I sound like the critical parent.”

“Maybe you are the critical parent,” I nodded.

“Maybe so, but someone has to be the adult in the room,” Javier pushed back.

“Says who?” I asked.

“Well, I’m the manager, so I guess – says me.”

“You just told me the team doesn’t listen to you.”

“They don’t!” Javier pushed back.

“So, when the team abandons the policy book and goes back to their own experience, who do they rely on for guidance?”

“Well, they are hiding from me, so, they rely on each other and their own judgement.”

“Tell me, Javier, who wrote the policy book?”

“I did. I stayed late every night for a month. I am pretty proud of the thinking behind it. Some of my best work.”

“But none of your team’s experience, none of your team’s judgement is in the book. So, where do you think the problem is?” -Tom