BALANCED SCORECARD-CUSTOMER KEY INITIATIVES

Steven Cesare, Ph.D.

This is the final posting of the four-part series summarizing my conversation with a Michigan business owner who sought my guidance in developing her company’s 2025 strategic plan. If you have playing along for the past month, you already know I proposed she configure her annual plan within the Balanced Scorecard framework that posits four concurrent goal quadrants to (e.g., Financial, Employee, Process, and Customer) must receive equivalent consideration for an organization to enjoy ongoing success.

With the previous three acts already presented (e.g., Financial, Employee, Process), it is now time to reveal the final act of the play discussed by the Michigan business owner and me: the Customer quadrant.

The Customer quadrant interprets organizational performance from the perspective of the company’s customer base. In the Green Industry, this goal quadrant normally addresses maintenance job retention rate, job quality ratings, or customer portfolio diversification; though it can also track customer service feedback, YELP reviews, sales capture rates, and percentage of new customers added per year.

While it is tacitly understood that customers are central to every company’s success, it is imperative to remember that customers, like finances, or employees, or processes, are not always the paramount interest of a company. That’s why it is called the “Balanced” Scorecard. Having great customers, but inadequate gross margin is neither desirable, sustainable, or balanced. Likewise, a tenured customer base that mistreats our employees, runs a delinquent payment schedule, or contracts with another landscaper to do enhancements work, is not opportune for growth, ease, or success. Some might say that is not balanced.

It’s not difficult: All the quadrants must exemplify synergy for a company to be successful.

In general, I have found that many landscapers provide only minimal attention, basic service, and obligatory communication to their customers, all the while hoping their maintenance (or snow, or lawn care) contracts will be renewed for another season. Hope is a good; professionalism is better. That said, here are several Customer quadrant best practices demonstrated by serious landscapers throughout the country.

Customer

Establish annual Customer Retention goals for the Maintenance Department
Implement a Job Quality Program replete with training, goals, and bonus potential
Require all employees attend annual Customer Service Training
Return all customer emails and voice-mails before the end of each workday
The owner(s) must have face-to-face contact with at least one customer every week
The owner(s) must talk to at least one customer every day
Include Before and After Photos of each job in every Maintenance job renewal
Design, implement, and improve the New Job Start Up Process
Create a Customer File for every customer
Take one Top Tier customer to lunch every week
Establish a Client Retention Bonus Program
Have a Customer Appreciation Open-House event each year
Implement a highly-personal Client Relations Management (CRM) Program
Highlight a specific customer job each month as part of the company’s social media campaign
Implement a Jobs in Jeopardy Program
Establish a Job Autopsy Program
Leverage the Job Listing Report
Develop an annual Landscape Development Plan for each customer
The owner(s) should attend at least one customer walk-through each week
Collect customer satisfaction data (e.g., 30 days after job completion, mid-season, quarterly reports)

As a capitalist, the Financial quadrant has an endearing quality to me. As the Human Resources person, the Employee quadrant is my comfort zone. As a control freak, the Process quadrant signifies precision to me. As a member of the Green Industry, the Customer quadrant conveys partnership to me.

As a businessman, the Balanced Scorecard defines success to me.

Ready for a trick question? Which goal quadrant is the most important for your company?

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