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HBR IdeaCast

Make Customers Happier with Operational Transparency

HBR IdeaCast

Harvard Business Review

Leadership, Entrepreneurship, Communication, Marketing, Business, Business/management, Management, Business/marketing, Business/entrepreneurship, Innovation, Hbr, Strategy, Economics, Finance, Teams, Harvard

4.41.9K Ratings

🗓️ 5 March 2019

⏱️ 24 minutes

🧾️ Download transcript

Summary

Ryan Buell, associate professor at Harvard Business School, says the never-ending quest for operational efficiency is having unintended consequences. When customers don’t see the work that’s being done in back offices, offshore factories, and algorithms, they’re less satisfied with their purchases. Buell believes organizations should deliberately design windows into and out of operations. He says increasing operational transparency helps customers and employees alike appreciate the value being created. Buell is the author of the HBR article "Operational Transparency."

Transcript

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0:00.0

How do you navigate gender in your workplace?

0:04.0

HBR's fan favorite podcast, Women at Work, is back with personal stories, the newest research,

0:09.0

and practical advice on navigating divorce, disability, and career failures.

0:14.0

Listen for free to HBR's Women at Work wherever you get your podcasts.

0:30.0

Welcome to the HBR idea cast from Harvard Business Review. I'm Kurt Nickers.

0:44.0

Imagine a restaurant where you sit down and order your meal.

0:48.0

And eventually your platter of hot food comes to you through swinging doors from the kitchen.

0:53.0

Now imagine you're at a different restaurant where you order the very same meal

0:57.0

except you can see into the kitchen. You can see the cooks preparing your meal,

1:02.0

putting it into the oven, you see them plate the food and add a last pinch of salt,

1:07.0

and then you see the server carry it over to you.

1:10.0

In the first restaurant, your meal appears almost magically.

1:13.0

You never see the people who made it for you.

1:16.0

In the second, your experience is different.

1:18.0

You have more of a sense of the work that goes into your food.

1:23.0

Our guest today argues that too much of business today is like the first restaurant.

1:28.0

In the spirit of efficiency, much of the work we pay for is now hidden.

1:33.0

In back offices, far away in another country, or buried deep in an algorithm.

1:38.0

There are many advantages to that, but Ryan Beall says it also creates a problem for companies.

1:44.0

By losing any window into the work being done for them,

1:48.0

customers have grown less satisfied with what they buy,

1:51.0

and employees can feel underappreciated too.

...

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