The UnTower Manifesto: 2. Consequences

[Note: The UnTower Manifesto is a three-part series about responding to the failure of CentrePointe.  You can read the full story of that failure here.]

The consequences for UnTower should rest on the people who perpetrated the scandal: The mayor, some council members, and the developers.  Let's start with the mayor.

In other venues, I've seen the mayor talk with his skeptics with apparent openness and graciousness.  He was quite articulate.  He listened to their concerns and seemed to hear them.

But the last several months have shown a repeated abdication of his duties in the face of scandal.  This pattern first emerged with the airport staff's misappropriation of public funds in their credit-card-and-travel scandal, where the mayor displayed a perplexing tendency to drag his feet.  Now, as CentrePointe devolves into the UnTower scandal, the mayor has shown a similar lack of initiative to lead on his citizens' behalf.  Instead, he has resorted to 'happytalk' to defend what is clearly a failed project.

Meanwhile, the vice mayor has been active and vocal in challenging both scandals.  The effect: a grassroots effort to draft him to run for mayor in 2010, complete with its own Facebook fan page and glowing coverage in local media.  The current mayor seems to have no such dialog with the citizens he serves, and seems to have generated little enthusiasm for a 2010 run.

The mayor needs to begin to lead with candor, action, and transparency – beginning with complete clarity around what happened to create UnTower – or his constituency will chase him from office.

The same can be said for the members of the Urban County Council – especially those who rubber-stamped the UnTower project without adequate scrutiny or analysis.  They must assume a more actively transparent posture – including using the tools and technologies to have conversations with the people they serve – or they, too, will be removed from office by their increasingly-informed electorate. Their citizens will no longer tolerate the kinds of hijinks and misdirection that characterized UnTower.

Finally, there are UnTower's developers.  What should happen to them?

The scar in the middle of town is their property.  But the destruction of the block and the special tax status endowed on the block were public events, with public investments and public impacts.  If anyone doubts the public impacts, just talk with businesses bordering the UnTower eyesore about its effects as a customer-repellent.

So here's my modest proposal for penalizing their deception.

First, the council should explore all options for rescinding the block's special Tax Increment Financing (TIF) status.  TIF was granted under conditions which no longer seem to apply, and the developers no longer appear to have earned that special status.

Second, the council should – to the extent it is able – strictly re-define acceptable future uses of the property in light of the UnTower scandal.  Given that the developers contributed to the scandal with their hollow promises and continual lack of disclosure, I would hope that our council would be particularly stringent with requirements for how the property functions as part of our community and that they would set a strict timetable for the developers to act.

The developers misled us to gain advantage; now they should pay the price.

[Continued in: The UnTower Manifesto: 3. Beyond UnTower]

[where: E Main St & N Limestone St, Lexington, KY 40507]

The UnTower Manifesto: 3. Beyond UnTower

[Note:
The UnTower Manifesto is a three-part series about responding to the failure of
CentrePointe.  You can read the full story of that failure here.]

The final piece of the UnTower puzzle is what to do with the pit now that the historic buildings are gone and the promised tower cannot be built. 

Up front, let me declare that I don't have all of the answers regarding what needs to be done with the block.

But I do have some general principles which we might start to apply to the site.

  • Create a vibrant destination which attracts in-town residents, weekday workers, other folks from throughout the Bluegrass, and tourists.
  • Make that destination a distinctive place which no other city has (and this doesn't need to be a towering monument to ego)
  • Create public and private spaces within the destination which allow the community to create shared experiences while also providing a much needed economic boost
  • Balance the types of uses within the development to include an attractive mix of retail, nightlife, dining, and lodging options
  • Ensure local businesses have significant presence within the development to help supercharge the local economy
  • Ensure that the space is well-integrated with the surrounding community and that its design promotes circulation throughout surrounding businesses and public spaces
  • Build it soon.  Remove the eyesore that the UnTower scandal left behind.

So lets look at these principles in more detail.

Destination.  If we want the UnTower block to directly feed the local economy, we need it to function as a destination for both our visitors and our community.  The previous imposing design did not encourage local residents to participate in the space.

Distinctive Place.  The new development should, to the extent possible, function as a signature place for Lexington.  Much like Keeneland and our horse farms showcase Lexington as a city like no other, the new development should showcase our city, our region, and our people.  Portland, Austin, Miami, Chattanooga, Denver, and even Louisville have these memorable and distinctive signature places.  Lexington should, too.  A distinctive place will draw people (and dollars) into our community; A forgettable one will not.

Public and Private Spaces.  The most effective places (like those in the cities above) combine public spaces with private enterprise.  Thus, memorable shared experiences can also feed the local economy.

Balanced Use.  Others have proposed using the block for a single kind of use – say, a new basketball arena.  Such dedicated uses of the property would be counterproductive to our economic engine.  To get the biggest economic bang for the buck, we should encourage a unique and balanced mix of stores, restaurants, attractions, clubs, and perhaps a unique 'boutique' hotel.  (My best-ever customer experience was at a Kimpton Hotel, which made for a hugely positive impression of Portland in general.  What if Lexington could wow its visitors like that instead of giving them a bland cookie-cutter hotel?)

Local Businesses.  To supercharge the impacts of the dollars spent within the new development, we should try to ensure that many of the businesses located there (30%? 50%?) are local businesses.  This will yield two big benefits.  First, it would contribute to the distinctive character of the place.  Second, it would keep a significant portion of that money in Lexington.

Integration.  When CentrePointe was proposed, many derided the design as too fortress-like and too disconnected from the city fabric.  The UnTower scandal offers an opportunity to correct that mistake.  The new development could more thoroughly integrate with several aspects of downtown development.  The site borders Phoenix Park, Courthouse Plaza, and the History Museum / old Courthouse / Cheapside complex.  An 'open' design would promote circulation through those spaces (and into surrounding businesses) and would better integrate with our other urban initiatives (such as our street improvement plans).

Build Soon.  Regardless of the type of development we ultimately put on the UnTower block, we probably have missed our window for using it to improve our city's appearance for the World Equestrian Games in 2010.  Nonetheless, we cannot allow the crater left by UnTower to remain. 

Is this list comprehensive enough (or even correct)?  Probably not.  Feel free to point out what I got wrong or what I missed.

In any case, this is the kind of civic discussion that the citizens of Lexington must engage in if we are to build a better community – and if we are to heal the scar in the middle of our city.

[where: E Main St & N Limestone St, Lexington, KY 40507]

Dealership troubles

In January, the Wall Street Journal ran a page one story about the troubles facing two dealerships in southeastern Kentucky.  One of them, Johnny Watkins, had filed for bankruptcy.

At the time, we predicted that there would be a lot more dealership closures in 2009, especially in smaller towns. 

MaysvilleFordAuctionThen, a couple of weeks ago, we received an auction notice to liquidate the assets of Maysville Ford.
 
Why is this happening to dealers in small towns?  There are a few key reasons:

  • There really isn't enough critical mass of car sales to support a dealership in a small town.  So dealers have to draw customers from nearby cities, usually with discounts that squeeze their profitability.
  • The most profitable part of the dealerships come from service to vehicles after the sale.  When out-of-town customers purchase from a small-town dealer, they tend to have their cars serviced somewhere else, as the dealer is too inconvenient for frequent maintenance.  So small-town dealers lack the service customers that larger dealers have.
  • The heavy reliance on car sales (and the lack of substantial service sales) means that small-town dealers are much more sensitive to economic downturns.  As car sales plummet, the service business is what has sustained many big-city dealers.  The smaller dealers just don't have that cushion.

The economic realities of being a dealer in a small town mean that a lot of them won't survive over the next couple of years.

[where: 41056]

Service Hero: Chili’s

Part of our Customer Service Hero, Zero, or Nero series.
Heroes really care about customers and create surprise and delight.

A few years ago, Chili's really ticked me off.

Because of our careers, my wife and I ate out a lot.  (We still do.)  And Chili's had my favorite meal, a dish they called 'Margarita Grilled Tuna'.  I had eaten it every week or so for some 5 or 6 years.

Then it disappeared from the menu.  (Editorial comment: Booooooo!)

I tried to stay away from Chili's in protest, but my wife dragged me back in.  Eventually, I found some other things I liked eating there, but nothing ever compared to that tuna…

Chili's continued to be part of our regular rotation of restaurants after our son was born.  And, with his magnetic personality, several wait-staff members would go out of their way to come visit with him.  The greeters and managers began recognizing us as well.

When we walked in last night, the greeter proclaimed "There's my buddy! How's Mr. Carson tonight?" and exchanged high-fives with him.  She took us to our 'regular' booth (in reality, we have eaten all over the restaurant, but we do prefer the booths).

Alex, who wasn't our server last night, came over and double-high-fived Carson, and talked with him for a few minutes.

Neil, the general manager, came over and gave him a big hug and called him by name.  He also brought a Chili's ball cap, and gave it to Carson to wear.  On previous visits, Neil has also brought us a complementary slushie and has introduced Carson to Neil's own daughter.

CarsonChilisLast night, he asked if he could take Carson's picture for the office wall, because "seeing Carson only once a week just wasn't enough".  15 minutes later, he brought out a 4×6 print for us to keep.  Carson was beaming.  (My scan doesn't do the original photo justice.)

On the way out, Carson gave Neil another big hug and waved goodbye enthusiastically to the other staff members.

Eating out with a toddler can be a challenging experience.  At Chili's, the staff's willingness to engage Carson has helped keep him occupied and entertained.  That's a big bonus for parents like us.

But what makes the experience truly special is the sense that we are among family and friends.  Carson is greeted with genuine joy by the Chili's staff.  They are happy to have us come back.  And, as a result, we are happy to go back.

For Carson, these kinds of interactions have made Chili's one of only two restaurants he knows by name: "Chih-wee's".  (The other is "Chick-foo-way".)

Can I recommend every Chili's based on our experiences?  No.  Over at the Brand Autopsy blog, John Moore openly wondered why Chili's needs to exist.

But I can heartily recommend our Chili's.  Even without the tuna…

A Few Lessons for Business

  1. Relationships matter.  We have come to see Chili's as a kind of extended family.  Out of the dozens of companies you interact with, how many businesses can you say that about?
  2. Relationships take time and patience.  Real relationships aren't built overnight.  If Neil had started snapping pictures of Carson the first time we met him, we would have been creeped out.  Because he had earned our friendship and trust over a series of interactions, we didn't mind a bit.
  3. Relationships require genuine familiarity.  Fake familiarity doesn't work — customers will see through that as shallow.  But when the Chili's staff remembers our names (well, OK, Carson's name) and our preferences, that shows a level of caring, concern, and memory which is lacking in most business interactions.  Neil, Alex, Tina, and the rest of Chili's staff have shown a genuine interest in us and our child, and have earned our trust and loyalty.
  4. Be happy to see your customers.  And make sure your staff is, too.
  5. Leadership matters.  Neil's outgoing approach and enthusiastic attitude has infected his staff, who reflect the same personality.  Speaking from experience, it is really easy to get stuck in the office.  Neil gets out of the office to talk with his people and his customers.  And it really works.
  6. Kids matter.  As a parent, when a business goes out of their way to show that they care about the experience they create for my child, they win my loyalty.  Be a kid's hero, and you'll be their parents' hero, too.
  7. The product still matters.  You might notice that I haven't mentioned the food last night.  It was good.  And a good product is the first requirement for a good experience – that's why the customer is really there to begin with.  Wrapping a great experience around an awful product will ring hollow for the customer – and they won't be back.
  8. Margarita Grilled Tuna matters.  Bring it back.  Please.

[where: 2851 Richmond Rd, Lexington, KY 40509]

Recession Pants

Part of our Customer Service Hero, Zero, or Nero series.
Zeroes seemed to have just stopped trying.

I like Dockers pants.  They are easy to find, and their sizes are reliable and fit me well.  I'm a particular fan of their "Golf Pant" – not because I play golf, but because they have a few bonuses I like: a 'shirt-gripper' waistband (to keep shirts tucked in) and extra interior pockets (to keep my stuff easy-to-find).  Also, I don't have to iron them — a big time-saver.

So I visited a store earlier this week to look for them.  But the Dockers section had a lot of new, unfamiliar names for their pants: 'The Broker Chino' and 'The Lincoln Pant'.  The Golf Pant was nowhere to be found…

I was in a hurry, so I grabbed the ones which looked closest to the style I liked: The Lincoln Pant.  Same price, same style.  Just a different name…

Or so I thought.

The next morning, I put these pants on, and noticed to my annoyance that the shirt-gripper was missing.  My brain was filled with images of me constantly stuffing my shirts back into the back of my pants.

Then I went to load my stuff: change, cell phone, pens, glasses case, cash, and such.  No interior pockets, so all my stuff was swimming in there together.  Plus, the pockets aren't as deep as they used to be.  Another annoyance, especially when I'm driving or sitting and stuff spills out of my pockets.

It seems that the Lincoln pants are a recession version of the Golf pants: All style, no substance.  By skimping on a few square inches of cloth and that little rubbery strip around the waist, the pants have lost most of what made them worth buying in the first place. 

Lessons for Business
Times are tough for a lot of businesses, and the desire for cost-cutting is understandable.

But when a business chooses to scrimp on the very things their customers value, they make things even tougher for themselves.  Ultimately, such businesses wither as customers see no particular reason to patronize them.

Did Dockers offend me?  No.  I bought a decent (but not special) pair of pants.  But by charging the same price for a blander product, they did create a Zero experience and gave me the impression that they just stopped trying to meet my needs.

So, by saving costs on these "recession pants", Dockers will likely lose a customer.  That's a steep price for the few pennies saved.

What if, instead, Dockers had leaned into the recession winds, and invested a few extra cents?  Maybe heavier cloth, more pockets, or some cool innovation.  What if they had chosen to stand out from all of the competitors who also cut costs?  What if they treated the recession as an opportunity to grow, rather than a threat requiring fiscal tightening?  What if they had chosen to change things instead of being changed by them?

It might have cost them a little more in these hard times, but it would have increased my devotion to their brand, perhaps for several years.

What is that worth?

[where: 1988 Pavilion Way, Lexington, KY 40509]

Service Nero: Ruby Tuesday

Part of our Customer Service Hero, Zero, or Nero series.
Neroes fiddle while the organization is on fire.

The meal was fine.

But I left my glasses at the table.

When we sat down, I distinctly remembered setting them near the edge of the table.  As the meal progressed, and we attended to our 2-year-old, they got obscured by plates and napkins. 

As we were leaving the table, we saw some long-time friends at another table.  My wife took our son over to visit while I paid the bill (nice tip – more than 25% because we had a coupon) and gathered our things.  But I forgot my glasses. 

We visited with our friends for about 5 minutes on the other side of the restaurant and went out to the car.  That's when I realized that I didn't have them. 

I returned to the table, which had already been cleared.

That's when it got ugly.

I found our server, and when I asked her about the glasses, she declared that they weren't on the table: "I would have seen them if they were there."  She was quite defiant, and I started to regret that I had been generous with her tip. 

She then asked if I had left them in the bathroom – which I hadn't visited.  I had to verbally nudge her to get her to ask around in the kitchen to see if anyone else had seen them.  She came back: "They're not here."  She was getting impatient with me.  I was getting impatient with her.  I regretted tipping her at all.

I told her I was certain I left them on the table, and I wondered whether they could have been placed into the trash.  Now, she looked at me with disgust.  She reiterated that she would have seen the glasses "if they were there."  When she saw I was serious and wasn't going to leave, she offered to talk to the manager about whether I could go through the trash. 

While she was in the kitchen, I heard her declare that she wasn't going "in there" (the trash can).  There were also rounds of laughter — I assumed it was at my expense.  She came back, and informed me they would carry the can out to the back of the restaurant, and I could rifle through it out in the cold.  She looked at me as though I had bugs crawling all over me.  Now furious, I told her I'd go out there.

I pulled my car around back, and two kitchen dudes brought a couple of garbage cans out.  Without saying a word to me, they plopped them down, returned to the kitchen, and slammed the door.  I stood there in the cold, stunned for a few seconds as I realized that no one was going to help in the slightest — even to offer any suggestions on where to start or implements with which to sift through the trash…

Then, I remembered that I had a 24" level in the back of my car.  At first, I poked and prodded through the kitchen waste with the bright yellow level.  No glasses.  Then I was rowing through the stuff to get deeper and deeper into the can.  My son was repeating "What is Daddy doooooing?" over and over again.  It must have made for a comical scene, but I was livid.

I was angry enough that I entertained the thought of emptying the trash cans all over the lot.  Or, even better, the lobby!  I just wanted revenge.

Then, I rowed back a piece of lettuce and found my "prize": The glasses were covered in some sort of ranch sauce, onion, and ketchup concoction.  I went back to the car to get a few paper napkins, and then fished the disgusting mixture out.

I wanted to show our server — despite her absolute certainty that the glasses weren't there — that in fact, they were.  So I headed around to the lobby.  One of the kitchen dudes was outside the front door on his smoke break.  "Did you find 'em?"  "Yes," I said, holding up the messy prize.  "Really?  That's amazing…"  I asked him to let our server know, deciding not to make a bigger confrontation out of it.

While I had gone to the front, the manager had come out briefly to talk with my wife.  He went inside before I got back.

But for me, it was too little, too late.  I hated Ruby Tuesday.  That was two weeks ago, and I'm still peeved.  Can you tell?

A Few Lessons for Business

  1. It isn't just what you are selling.  Bad service ruins a great, quality product.
  2. Be vigilant.  One employee (and one incident) can reflect badly on the entire company.  It won't matter if you do great 90% of the time.
  3. Be humble.  Don't pretend to be certain, whether to cover for what you don't know or to cover for what you didn't do.
  4. Don't tell customers they are wrong.
  5. Don't treat customers with contempt, disgust, or derision.
  6. Own some part of the customer's problem.  Even if it involves something distasteful, offer to help the customer in some way.  They didn't have to sift through the trash with me, but I would have appreciated simple suggestions or tools or even sympathy…
  7. The real problem is bigger.  Very few customers blog or confront like I just did.  Most simply give up and never come back.  Find out why.  And fix it.
  8. Customers talk.  Customers will tell family, friends, and acquaintances (and, sometimes, blog readers) about their bad experiences.  But they probably won't tell you.
  9. Don't leave your glasses at Ruby Tuesday.  On second thought, better be safe and just don't go there.  Ever.

[where: 1808 Alysheba Way, Lexington, KY 40509]

Customer service: Hero, zero, or Nero?

Here at Lowell's, we strive for an exceptional level of customer service.  We want our customers to remember and recommend us.  When they do, we grow.

In reality, we make mistakes.  But we do try to learn and improve when we make them.  And we try to make up for mistakes whenever possible.

Recently, we have had some, er, memorable customer experiences with other organizations.  In upcoming posts, I'll document some of them.  It will be quite entertaining.

In the process, I'll use three categories to talk about customer service levels:

  • Heroes:  Heroes are the folks who surprise, delight, and really create memorable customer experiences.  They are the ones who care the most about their customers, and really deliver what customers want.  Heroes create vibrant, growing businesses.
  • Zeroes:  These are the people who, in some way, have seemed to just stop trying.  There's nothing particularly bad about their experiences, but there's nothing great, either.  They're just complacent.  And the end result is a blah, unremarkable encounter.  'Zero' businesses are usually stagnant or shrinking.  They tend to have shifted their focus from customers to internal processes, and often end up quite bureaucratic as a result. 
  • Neroes:  Named in honor of the emperor who 'fiddled' while Rome burned, a customer service Nero is someone who actively creates a crappy, customer-repelling experience.  'Nero' experiences often come from rogue employees, but some organizations seem to allow poor service to spread throughout.  Nero businesses often implode as customers simply evaporate.

We're going to have some fun with these posts, but we're also going to try to extract important business lessons from them. 

We're also very interested in hearing about your hero, zero, or Nero customer service experiences.  Comment below about your notable experiences.  We can't wait to hear from you.

[where: 111 Mechanic St, Lexington, KY 40507]

Taxes, Taxes, Taxes

I'm quite a bit different than my business-owning peers — I actually don't mind paying taxes. I get a lot of benefit from those taxes: providing for our common defense, local police and fire protection, and a pretty great infrastructure (by world standards), among many other services that our governments provide.  It is my duty as a citizen to financially support the governments that protect and enable our freedoms.

I feel this way even though those services and those governments should be much more efficient and much less bureaucratic than they are.  So I'm not a typical all-taxes-are-evil type of business owner…

But I hate dealing with taxes.Tax-burden

When I bought this business, I knew that I was going to have to deal more with taxes and payroll issues than when I was an individual employee of a corporation. (Unlike many businesses, we don't send our payroll or most of our taxes out to other professionals. Yet.)

But I totally underestimated the crushing administrative burden of the variety, frequency, and complexity of tax payments.  Besides dealing with federal, state, and local governments (which I expected), I quickly learned that each entity had many different types of taxes, each with different weekly, monthly, and quarterly schedules, and each out-of-sync with the others.  There were many taxes which we paid and documented on a regular basis which had to be re-documented periodically.  Then, in January, the schedule gets jumbled from every other tax period.  It is needlessly complicated and time-consuming. 

Again, I'm a willing taxpayer (although I'd always welcome paying less).  But I don't want to be a tax expert.  And I don't want to be forced to hire one.  And I don't want to spend so much time managing our taxes when it should be spent managing our business… 

There must be a simpler way for businesses to contribute to their governments. 

Toyota is #1. And will stay there.

In 2008, Toyota became the largest carmaker in the world, producing nearly 9 million vehicles.  Toyota surpassed General Motors, who had held that title for 77 years, by over 600,000 vehicles.

As Toyota specialists, we're pleased.  As lifelong fans of GM, we're also a little sad.

Both manufacturers downplayed the significance of Toyota's ascension to the top of the sales charts, which is the culmination of a decades-long steady climb by Toyota and a precipitous drops by GM, especially in the past year.

While GM executives are optimistic about a return to the top spot, the Lowell's Corporate Office of Fearless Predictions says that won't happen.  Toyota will remain #1 for the next 20 years or more.

As we've noted before, GM and the other Detroit automakers have structural disadvantages in their business design relative to Japanese automakers which their executives have been either unwilling or unable to decisively address.

Meanwhile, Toyota has historically invested in new technologies and new capabilities long before the market demanded them, and stood ready to take advantage of sudden shifts in market demand.

Toyota isn't always right — they released their huge 2008 Tundra and Sequoia models right into the teeth of $4 gas — but they almost always put themselves in position to be right.  With gas prices lower, their big models may get some traction, especially against similar GM, Ford, and Dodge models.  When gas prices shoot back up, they can rely on the Prius and their other hybrid models to continue their market gains.

Toyota consistently makes collections of bets which advantage the company relative to its competitors.  When those bets don't work out (witness the Tundra), the Detroit 3 suffers more than Toyota (witness the sudden implosion of Detroit's truck-heavy business).  And the other bets Toyota makes (like hybrid, solar, and electric vehicle techologies) more than compensate for the ones that don't succeed.

That's why Toyota will stay in the top spot.