As we enter the closing months of the year, we hopefully are doing so on a stronger footing, owing to a number of welcome signs of growth. This week, it was good news from the IMF, which upgraded its projection for UK economic growth from 0.4% to 1.1%.
Meanwhile, the so-called misery index – the sum of unemployment and inflation rates – has fallen to its lowest in over three years. So perhaps things are beginning to move in the right direction.
That said, today’s dip in consumer confidence is a timely reminder of what might be termed the elephant in the room: the Autumn Budget. Whatever happens, it is imperative that the Government strikes the right balance to maintain business and market confidence in what is a pivotal moment in time for us all.
Bridging a £40bn funding gap, attracting necessary investment to bolster public services and supporting businesses is in everybody’s interest, albeit no mean feat. While this likely means higher taxes, I urge businesses to remain focused on the bigger picture: driving long-term sustainable growth.
Where to focus for businesses
In the face of low and continuously worsening levels of customer satisfaction, the Institute would welcome a budget that focusses on how we drive up the service profession by pushing skills development and clear policies that help drive greater productivity and sustainability, ensuring we have the right investment in the right levels of skills and capabilities across all ages – getting people back to work will certainly help to address some of these issues.
Whilst I recognise the pressures businesses are under, they must continue to see the service agenda as a long-term investment.
This is particularly true at such a pivotal time for the business landscape, when organisations are turning to AI solutions – as well as outsourcing and offshoring their capabilities – in order to manage their cost base, we will need to ensure we make the right decisions based on the customer journey, that don’t damage the longer term opportunities for individual, organisations, and the wider UK economy.
This is especially important at a time when solving customer complaints is costing UK businesses as much as £6.8bn per month. Businesses must look at the long-term picture here, and not cut corners for short-term savings at the cost of long-term growth.
Instead, by continuing to invest in staff and training alongside new technology, organisations can get things right first time for their customers – which not only saves on productivity but creates a service offering that keeps customers satisfied and generates repeat business and loyalty.
Another very simple thing business leaders should be asking themselves is, am I doing the right thing by all stakeholders, and most importantly, by customers? In well-run organisations there is a strong and clear balance between customer service, employee engagement, ethical practice and decision-making, and long-term shareholder value.
To create financial stability and the much sought after growth discussed by Government, short-termism and ‘instant gratification’ needs to be balanced with a strong and clear focus on sustainable, ethical business practices and investment back into organisations.
Maintaining momentum by fostering a service culture
Ultimately, a company’s level of focus on long-term performance and consideration for the needs of all its stakeholders, the environment and wider community is determined by leadership and the culture leaders create.
By creating a strong, service-focused culture, businesses will be well-prepared not just to ride whatever wave builds from the Autumn Budget, but to hit the ground running when it reaches the shore.
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