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A recent event in my community was a reminder that most companies (and people) dont know how to apologizeand that has repercussions. A restaurant opened nearby with the aim of serving the vegan community. Soon after opening, several patrons found out that the restaurant was using nonvegan ingredients in some of its recipes. The owners promised to fix the situation, closed for a few days for renovations, and then reopened. No mention was made on any of their social media channels of the incident that led to the closure. This approach has created a breach of trust, and social media groups for vegans in this town, and I wouldnt be surprised if this new establishment closed before long. That would be a shame, because it is hard to open a restaurant aimed at a specific community and to succeed. I understand why the owners acted as they did. Only a small number of people found out about the problem initially, and Im sure that they did not want to frighten the entire community by admitting that they had done something wrong. As a result, they hid the reason for their closure, fixed the problem quickly, and opened again. Unfortunately, it is hard to keep anything a secret for long these days. News flies via email, social media, and even good old word of mouth. In addition, the restaurant was serving a small tight-knit community that cares deeply about the food that it eats. The reaction of the owners created a breach of trust. So, what should they have done differently? Here’s a framework for making a good apology: You have to accept responsibility for the errorwhich also means specifying what the error is. You have to truly be sorry for what happened. You have to lay out the plan to ensure that this does not happen again. Anything that deviates from this structure is likely to reduce trust (perhaps in catastrophic ways). The first of these steps helps your audience to recognize that you know what went wrong and therefore are in a position to take steps to fix it. In the case of a company, this is important, because there are often times when something goes wrong, but nobody is entirely sure why. Was there a rogue actor? Were there inept or poorly trained employees? Was it an attempt to maximize profits at the expense of service and quality? Without a clear statement of what went wrong, people will wonder whether the problem can even be fixed. Expressing contrition matters, because it suggests that your values are aligned with those of your customers. That statement wont fix the problemcustomers will have some concerns until you are able to rebuild trust. Expressing that you are sorry is simply the price of admission to being able to start rebuilding trust. Discussing the steps you are taking to fix the problem is a second step toward building trust. It suggests a course of action that will ultimately solve the problem. It also provides some tangible steps you are taking that customers can potentially verify to know that you are truly working toward being better in the future. Good apologies by companies (or people) are particularly important when the costs of the mistake are high. Those costs can be high when the consequences of the mistake are truly grave or when the customer base cares so deeply for the outcome that a violation of their trust may lead them to walk away from the business permanently.
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E-Commerce
Employers who sense rising levels of anxiety and signs of disengagement or displeasure in their workplace now have survey data to explain the sources of that unsettling vibe. But those insights also suggest managers need to address the sources of that unhappiness to avoid losing employees to companies that are already doing so. That was the main lesson in a recent study by staff recruitment, management, and payroll software company Remote. It polled 2,000 full-time, desk-based U.S. workers about their perceptions of their workplaces. The overarching message participants sent was theyre worried about the economy, unsure about their career future, and searching for employers they can trust. As a result, many respondents said theyre looking for greater financial and job security, and simultaneously want more input and guidance from employersas well as increased flexibility in their work. Some of those expectations are directly linked to financial pressures many participants said they were under, as well as habits developed under pandemic-era remote working arrangements. Their own money concernsand the increased fears about the economys future that 80 percent of respondents expressedled nearly 20 percent of participants to say theyd already taken on a second job or side hustle. An additional 57 percent say theyre looking to do so, for the same reasons. Rising employee preoccupations with working a second job, along with their pandemic experiences of having worked from home, made flexibility a top priority for all but 11 percent of participants. About a third said their desire for fully remote employment was higher than it was a year ago, with 26 percent saying the same for hybrid. Around 60 percent of both groups said theyd take a pay cut to secure those arrangements, which tend to offer greater range in doing work and also facilitate juggling a side hustle. Interestingly, other replies in the Remote survey indicated that employers providing increased flexibility may help remedy another problem cited: worker complaints about insufficient communication and support.Polling data found just 17 percent of respondents said they were getting enough resources and support to feel stable and engaged on the job. Meanwhile, only 8 percent said their company regularly shares information on how the economy may impact their role or organization, with about a quarter describing those updates as vague. Over a third of participantsor 35 percentsaid they receive no feedback on that from bossesbut wish they did. Unexpectedly, however, 50 percent of people with hybrid arrangements and 46 percent of fully remote employees reported getting higher levels of that information and direction from managers. Meaning, with only 37 percent of in-office respondents feeling the same, organizations with distributed teams may lean more towards intentional, proactive communication, analysis of the findings said. What can employers do to respond to the studys results? Its authors offered the following steps that companies might take to provide workers the honesty, stability, and real investment in their well-being they need and reduce the risks of them seeking these qualities elsewhere instead. Talk about it. Regular, transparent updates help employees feel grounded. Rethink flexibility. Flexible policies have moved out of perk territory, and into the essential camp. Flexible working can be a lifeline for disengaged and anxious employees and for those with needs and responsibilities that dont fit into rigid structures. Invest in development. Clear career paths build security and loyalty. Support financial wellness. Educational resources can go a long way. Create space for dialogue. Especially when the conversations are hard. The findings serve as a reminder that people-first leadership isnt about guesswork, but listening, responding, and proactively creating environments where employees can maintain stability and productivity, even in uncertain times, instead, noted Remotes chief people officer, Barbara Matthews. By Bruce Crumley This article originally appeared on Fast Company‘s sister publication, Inc. Inc. is the voice of the American entrepreneur. We inspire, inform, and document the most fascinating people in business: the risk-takers, the innovators, and the ultra-driven go-getters that represent the most dynamic force in the American economy.
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E-Commerce
OpenAI CEO Sam Altman isn’t shy about discussing the future of AI. As the CEO of a market leading company, his predictions carry plenty of weight, such as his worry that AI could make things go horribly wrong, or that AI agents will completely transform the workplace. Nor is billionaire Mark Cuban, who also sees vast changes to an AI-dominated workplace. Altman’s recent remarks to finance executives at a Federal Reserve conference on large banks and capital requirements included his belief that entire job categories will be eaten up by AI. He said customer service is all but completely ready for an AI takeover right now, as reported by the Guardian newspaper. “Thats a category where I just say, you know what, when you call customer support, youre on target and AI, and thats fine, he said. When a user calls a hotline now, AI answers, and its like a super-smart, capable person, Altman explained, adding that theres no phone tree, theres no transfers. It can do everything that any customer support agent at that company could do. It does not make mistakes. Its very quick. You call once, the thing just happens, its done. You may have already encountered an AI customer service system, or at the very least spoken briefly to one before being forwarded to a person with the info youre seeking. And anecdotally, if Altmans promise of no mistakes proves true, then thats a huge sell for customer service departmentsand consumer satisfaction. (We all know how frustrating it can be calling these lines.) What an AI can offer under these circumstances is also clearly defined: customers probably call with a discrete set of common issues, and the AI can be trained on what to do. But the next industry Altman said was ripe for an AI takeover is more complex, requiring deep knowledge and empathy, and there are much higher stakes at play. According to the AI CEO, AI is already better than human doctors. It can, most of the time, surpass human physician skills, he argued, suggesting its a better diagnostician than most doctors in the world. But then he pointed out a very human truth: people still go to doctors, he said, and he added that he felt the same, maybe Im a dinosaur here, but I really do not want to, like, entrust my medical fate to ChatGPT with no human doctor in the loop. That at least aligns with warnings from medical experts who say that while AI may be useful for medical advice under some circumstances, like helping to make medical notes, its just too subject to misinformation errors to be trusted to give mental health advice or diagnoses, for example. In fact a group of therapists recently warned of the danger in doing so. Altman also told the bankers that hes worried near future AIs could be used by bad actors, perhaps based overseas, to attack the U.S. financial system. He cited the issue of AI voice clones as a direct risk. While hes not predicting AI will steal banking jobs here, he is essentially warning that the entire industry could be upended by AI, used the wrong way. You may think Altman is being unnecessarily doomy here. In this case, you may be more aligned with the thinking of billionaire entrepreneur Mark Cuban. Hes just suggested that in his expert mind, AI will become a baseline workplace skill inside five years. Essentially he thinks that like email or Excel, everyone, from fresh graduates to practiced entrepreneurs, will have to master AI to succeed at their tasks. in an interview with Fortune, Cuban predicted that thanks to the force multiplying effects AI can have, well see more people working for themselves thanks to the rise of AI assistants, possibly powered by agent AI tech, which can transform solo founders into full teams. And worse, if youre note already using AI to move faster or make smarter decisions, youre behind, he said. While framed more positively than Altmans statements, a closer look says Cuban is still predicting whole classes of jobs will disappear inside five years. Why would a startup CEO need a personal assistant, a coding expert or a marketing adviser if all those tasks could be done by next-gen AI? All of this, while interesting, could be dismissed as mere PR for the AI industry, but you should actually care about this expert advice. Altmans warnings could have you looking at what tasks you already feel comfortable outsourcing to an AI tool instead of a human worker. And then, taking Cubans advice, you should consider taking time to properly educate yourself about the promises and risks of AI technology, and also plan on upskilling or reskilling your existing staff. The potential efficiencies AI promises mean they could By Kit Eaton This article originally appeared on Fast Company‘s sister publication, Inc. Inc. is the voice of the American entrepreneur. We inspire, inform, and document the most fascinating people in business: the risk-takers, the innovators, and the ultra-driven go-getters that represent the most dynamic force in the American economy.
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E-Commerce
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