Stories drive the point home. Great leaders use analogies, stories, and case studies to drive their points home. Well-told stories engage the imagination and emotions of others, bring characters to life, create a shared understanding of a situation, and promote creative thinking as they awaken the listeners to be in the moment by following the stories.
When solving a problem, a good story helps clarify the situation or the issues, define the problem, and provide context for considering potential solutions. Readers are drawn to the story when they relate to the characters and the issues. Additionally, storytelling can be used to communicate the value of a proposed solution and build support for it among stakeholders. By tapping into the power of storytelling, problem solvers can foster collaboration, increase empathy and understanding, and ultimately lead to better outcomes.
Take an example of overcoming toxic customers, a story of a small business owner.
Small business owners often face toxic or difficult customers who can be difficult to deal with and can cause harm to the business. Let’s dive deep into a business owner who experienced toxic customers and how they were able to address the challenges.
Jane Mugume-Asiimwe of Hoima was the owner of a small bakery in the busy Hoima market. One day in 2021, she received a phone call from a customer who was angry because her order was not exactly as they requested. The customer had received a delivery of bread with a tiny eggshell, which she noticed as they were eating it. The customer became very aggressive and used foul language towards Jane, who was taken aback by the behaviour. This was not the first time she had received such a call and she was worried it would affect her business and her mental well-being. She tried to calm the customer down, by explaining how the mistake could have happened due to the new machine that had been installed, and some items were tested; and could have been packed by mistake but the customer could have none of that.
Jane realized that she needed to act and protect her business from such toxic customers. She started by setting clear policies for customer interactions and made sure that all her employees were trained on how to handle such situations. She also implemented a system to track and monitor customer complaints, which allowed her to identify patterns and address the root causes of the issue.
When the next toxic customer call came, Jane was ready. She calmly listened to their complaint and apologized for the inconvenience. She then offered a solution to resolve the issue and made sure that the customer was satisfied with the outcome. The customer was impressed by Jane’s professionalism and demeanour and even thanked her for her excellent customer service. Jane’s efforts paid off. Not only did her business continue to thrive, but she also gained a reputation for providing excellent customer service. She was no longer stressed by toxic customer interactions and was able to focus on growing her business.
As a business owner or leader, setting clear policies, training employees, and addressing toxic customer behaviour head-on, small business owners like Jane can overcome toxic customers and protect their businesses from harm.
Case study 2: an overwhelmed loan assessor
In 2018, Mr Strategy met a bank manager named Sarah who oversaw evaluating loan applications. She was determined to ensure that the bank provided loans to those who were in need but also protected its bank from risky borrowers. She explained that there were periods received a high volume of loan applications, which made her job challenging. She said that periods from December to February; were especially hectic as so many people tended to apply for loans which made the work very challenging.
Sarah knew that she had to make quick and accurate decisions, in line with the set credit risk appetite. She wrote a memo to the management team to consider implementing a new evaluation system to streamline the process, especially with a defined credit scorecard. Management reviewed and appreciated the proposal; they provided the budget and within eight months, a new credit scoring system was implemented. The system had been developed in MS Excel and required the loan officer to collect data from the client and input it into the system for analysis. Being a key project champion, Sarah gathered a team of experienced loan officers and trained them on the new system. They were taught to evaluate each application based on the borrower’s credit history, income, and employment stability.
The new system worked wonders, and Sarah was able to process the applications much faster. However, she soon realized that some loan officers were taking shortcuts and only evaluating the borrowers based on their credit history, without considering their income and employment stability; and other key parameters that had been considered in the system like age, education level, location, etc. This resulted in some borrowers receiving loans that they couldn’t afford to repay, putting the bank at risk.
Sarah quickly acted and held a meeting with her team to discuss the issue. She emphasized the importance of considering all factors before granting loans and reminded them that their primary goal was to protect the bank while also helping those in need. She also implemented a system of checks and balances to ensure that each loan application was thoroughly evaluated.
The outcome was positive, and the bank was able to provide loans to those who needed them, while also avoiding risky borrowers. The bank’s loan portfolio remained healthy, and its reputation for responsible lending grew.
Lessons learned:
- Start by taking stock of the challenges at home by conducting a detailed assessment of the current state against the desired state.
- Implementing a clear evaluation system is essential for making quick and accurate decisions. Focus on having a system or process to formalize your work and create consistency. This reduces bias and errors of ad-hoc decision making.
- Training and educating the team are critical to ensure that everyone is on the same page.
- Regularly reviewing and monitoring the process is crucial to catch and correct any deviations.
- Considering all factors, not just one, is necessary to make informed decisions.
- Protecting the business while also serving the customers’ needs should always be the primary goal.
Sarah’s leadership and determination made a significant impact on the bank’s success, and she became known as an exceptional leader in the banking industry.
Copyright Mustapha B Mugisa, Mr Strategy. All rights reserved, 2023.
