Lessons Learned From The UPS Strike

As I am writing this column, United Parcel Service (UPS) and its workers are ratifying their new labor contract, reached after a 15-day strike. Like many Americans, particularly those who make their living in small businesses, I followed this strike closely. After all, our company had an economic interest in the work stoppage. The vast majority of our larger technical book orders are shipped via UPS, so the strike had a direct impact on our book operation. In addition, one of our graphic artists is married to a gentleman who makes his living as a part-time employee with UPS, and I was concerned about their economic welfare.

As a result of my interest in the strike, an article by James A. Champy in the Op-Ed section of the August 16th edition of The New York Times recently caught my eye. Titled "Business 100, The Hard Way," Champy — author of the book Re-Engineering the Corporation — pointed out that counter to UPS’ public image as a "model" corporation, the company has historically "ignored its customers’ needs and misunderstood the important role employees play in its profits." In addition, its two-tier wage system has harbored resentment among union members, helping to prompt the strike.

What can PCOs learn from UPS’ misfortune? Plenty. Consider these excerpts from Champy’s article: "UPS, it seems, learns some lessons the hard way. In 1994, the company ran extensive time-and-motion studies to trim slack out of drivers’ routes (corners were even sliced off the seats of its delivery vans so that drivers could slide in and out more easily). But the company made an interesting discovery: Its obsession with on-time delivery wasn’t, in fact, the most important thing to customers.

"In a survey, UPS found that customers actually wanted more interaction with the company’s drivers. They wanted to ask for advice on shipping, or simply to chat. It turned out customers liked the men and women in brown shirts and shorts," he writes.

"As a result, drivers were granted an additional 30 minutes a day of discretionary time to strengthen relations with customers. Although the loss in productivity was estimated at $4.2 million, it generated tens of millions of dollars in new sales. ‘Now, we’re viewing drivers as more of an asset than a cost,’ a UPS official told Business Week."

UPS’ experience illustrates the essential role customer relations plays in any service industry. For most customers your service technician is the face of your company. How they respond to that service technician — whether they view him or her positively or negatively — will forever shape the way they view your pest control firm.

In UPS’ case, their drivers were doing exactly what they wanted them to do: putting a human face on a corporation that generates billions of dollars in revenue every year. As the owner or manager of a pest control business — whether you’re generating $100,000 in revenue or $100 million in revenue — don’t ever underestimate the value of service technicians with good interpersonal skills and a commitment to quality service.

As UPS learned through its recent labor troubles, true "service professionals" are a company’s most valuable asset.