Uncommon Service (book review)

Uncommon Service is a “what to do and how” kind of book. If Atomic Habits is a what/how book for the person then Uncommon Service is one for service businesses. 

It’s organized into four parts: 

One: The tradeoffs. To have uncommonly great service, a business must make tradeoffs. Importance requires attention – and there’s an opportunity cost to that attention. In Unreasonable Hospitality, Will Guidara writes about the front-of-house staff that aims to create “legendary” moments for the guests. They Google the guests. They run out at the last minute for just the right gift. They go above and beyond above and beyond. 

But they don’t shine glasses, clean tables, or sweep the sidewalk. They don’t help with any of the hundreds of tasks that need doing every single night. That’s a tradeoff. 

The LinkdInfluencer scoffs, be the best. But businesses that dig deeply into customers’ jobs find there are things the customers want more than others. Your customers want tradeoffs. 

Two: Things cost money. Uncommon service isn’t free.

Customers could pay more and get more. Premium services like Disney’s Backstage Magic tour and The Four Seasons work this way but these opportunities are limited. Most businesses cannot simply charge more. 

Instead, most businesses must find holistic solutions. Exceptional service leads to more word of mouth and less marketing spend. Specialized service leads to better processes and less loss or more gain. When Publix employees walk customers to requested items – rather than tell them the aisle – does that increase sales and decrease theft? Certainly. 

Few businesses can claim it cost more and it’s worth it, but all businesses can think creatively about how to offer more and how to pay for it. 

Three: A business’s team reflects a business’s tradeoffs. 

Florida has a lot of mom-and-pop pool cleaning businesses. Our neighbor likes reports that detail the pH, chlorine, and salt levels. For him, the JTBD is visual and numerical.

But most cleaners want to show up, clean, and move on – while listening to whatever on Bluetooth headphones. 

So the business owner makes it easy for their employees. Rather than have the cleaner communicate with the customer, they communicate with the office that prepares the report. Cleaners take a few photos, report some numbers, and move on. The office makes it look as nice and tidy as the pool. 

(Alternatively, a business can try to hire people rather than design the system. We write a lot about that at Daily Entrepreneur.)

Four: Prepare the customer. The authors suggest service businesses imagine they are manufacturers. In ‘goods’ businesses customers don’t wander around the plant, inspecting machinery, and tinkering. No – and they shouldn’t do that in a service business. 

But customers are part of the experience: they have varied expectations, arrive at different times, and spend different amounts. They are “locally logical”: what makes sense to one will not make sense to another. 

Like employees, a business has two options. They can change the system for the people or change the people for the system. 

We’ve written about financial stakeholders. An investor is only as good as their capital base. This is part of Warren Buffett’s persona: he draws people aligned with his approach. He picks the people for the system.

But not every business can filter their customers. In those cases, they must focus on the customer’s experience. How can a business operator systematize the times they bend over backward

Historically Harvard Business books run dry with too much theory or too specialized examples. This book did not. It was uncommonly good, fast, and helpful. 

Notes. Never Split the Difference addresses tradeoffs well. Both Never Split… and Uncommon Service are recommended by Bob Moesta. 

Resolutions fail because…

In her book, How to Change, Katy Milkman writes:

“We’re more likely to pursue change on dates that feel like new beginnings because these moments help us overcome a common obstacle to goal initiation: the sense that we’ve failed before and will, thus, fail again.”

New year, new week, new me. It’s a birthday. It’s a new job. This time is different. 

But it’s only different when the structure changes

Reliance on fresh starts fails because only the narrative changes, not the structure. 

Milkman writes about a study of college transfers. Some kids transferred from the local two-year school while others came in from out of town. The local kids made fewer changes – good and bad! Fresh starts with a different structure push the variance of the changes outward. Sometimes the changes are a desired direction and sometimes not.  

“When we hope to change,” Milkman writes, “we have an opportunity to try reshaping our environment to help us disrupt old routines and ways of thinking.” 

Successful resolutions are an issue of design, not mindset. Like the high jump, the physical surroundings matter!

Want to stick with resolutions? Change the rules.

How Will You Measure Your Life? (book review)

How Will You Measure Your Life? (book review)

How Will You Measure Your Life? is about what investors call “out-of-sample tests”. If an idea works in more than one area then it probably will work again. 

Wisdom is an example. Proverbs 16:32, He who is slow to anger is better than the mighty, And he who rules his spirit, than he who captures a city becomes, it’s not if you win or lose but how you play the game. 

Timeless. 

Clayton’s choice combines business ideas with personal goals in two areas: career and relationships. 

Measuring your career. There are legible aspects to a career: money, titles, promotions, and career paths. 

Clayton cautions not to over-index on the legible. Careers, he writes, offer a mix of “hygiene” and “motivation” factors. Money, health insurance, and perks are hygiene factors. These factors have capped advantages and diminishing returns. 

Non-legible, like motivation, interesting problems, and growth have an upside. This is the good stuff. Just because it’s hard to count doesn’t mean it’s not of value. In fact, it’s really valuable!  

And because it’s hard to count and valuable means people underrate it.

But there are legible things to count. How do you spend your time? Your money? Do these reflect your priorities, hopes, and dreams?

Through legible and not, the aim is intentionality. Are you intentional about the important? 

Who is this choice for? 

“Parents have their own job to be done, and it can overshadow the desire to help their children develop processes. They have a job of wanting to feel like a good parent: see all the opportunities I’m providing for my child. Or parents, often with their heart in the right place, project their own hopes and dreams onto their children.”

We don’t have to teach our kids to tie their shoes. With technology, fashion, and other people it doesn’t have to happen. But it does. 

Now apply that to everything. 

Helicopter or consultant parent provides a good contrast. It feels good to be a helicopter parent. “See all the opportunies…”. But helicopter parents are selfish parents. Their choices are first for them, not their kids. 

Instead, Christensen uses a short-term-pain long-term-gain model. Live verbs first. Experiences are expensive tuition but essential in the school of life. It’s the right choice for them

How Will You Measure Your Life? is a difficult book to report because the lessons are personal. For every, I never thought about it that way situation, someone else would have solved it years ago. 

I needed Christensen to write this book. 

It’s written by a man of faith. A Harvard professor. He’s a best-selling author. He developed a famous business theory. Anyone that knew him brings up how much they miss him, years later. 

I needed his permission. 

Permission to think about life, not hacks or hustle. For the important things, not the urgent things. You read it as a reminder of why we live and an admission that we need help to live better. 

It matters that it’s Clayton freakin’ Christensen. He lived well and we aim to. 

Give the Gift of Gift Giving

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Via Schwab: Read the article

It’s not a terrible list of nine ideas, but it is a superficial one. The problem is that each of the ideas has to do with money, which isn’t really what gift buying is about. 

#2, Set a budget. #4, Don’t go into debt to pay for gifts. #7, Don’t buy more online just to get free shipping. I violate #7 most years. 

Gift giving is really about connection. It’s about our relationships with other people and symbolizing them. Gifts are a proxy. They’re an artifact. They mark something intangible as tangible. 

Here’s what I would have written for Schwab. 

It’s that time of year again. Last year, at this time of year, Americans spent $1,600 dollars on holiday gifts. There are work parties, family parties, white elephant, and fireplace stockings to stuff. There are kids, parents, parent’s kids (those dang sibling gift exchanges) and more. 

It’s too much. 

It’s okay to say it’s too much. 

Because here’s the thing – it’s too much for them too. 

Here’s a two-step plan for making this year a great season. 

Step 1: Buy the gifts you’re excited for. Kids love presents. Dads love new socks. Teens love new hoodies. If you know the perfect gift for the perfect person – get it! That’s what this is all about. 

Step 2: Share your priorities. When our money goes to one thing it doesn’t go to another. It’s the “opportunity cost”. We mostly understand that when it’s said but we forget when it’s not. So spend your money intentionally. 

“Dear Mother-in-Law, here is some chocolate/coffee/flowers. We’re trying to spend a little less this year because we are saving up for a big family trip to Florida. We know the kids will love exploring the sand for shark’s teeth, soaking up the sunshine, and splashing in the waves.”

Instead of a vacation maybe it’s college or a new, more reliable, safer car for your spouse. Whatever it is, make sure it’s intentional. And make sure the gift receiver understands that it’s important. 

“It’s better to give then receive”. That’s advice you don’t understand until you’ve gotten older. Then it’s obvious. By not getting someone something you’ve let them become the giver rather than receiver. Your in-laws have “given” you a slice of tuition, vacation, or locomotion. They’ve connected. 

Some people won’t get it. But if you live intentionally and remove the frivolity from not just the gift-giving but the rest of your financial life, they’ll start to see it. 

Happy Holidays from all of us at Schwab. 

Happy Holidays. 

Goal Alignment

How Will You Measure Your Life? by Clayton Christensen and How To Change by Katy Milkman are different books with the common theme of goal alignment.

Do short-term choices, options, and incentives align with long-term aims, hopes, and dreams?

Christensen writes in business terms, specifically innovation. Disruption theory notes that when incumbents serve their best customers they miss new opportunities. It’s a dilemma because the opportunities have worse short-term outcomes than “business as usual” – but possible long-term rewards.

Milkman writes in psychological terms. “Doing the right thing,” Katy conveys, “is often unsatisfying in the short-term.” Instead, bundle working out with watching Netflix. Get Starbucks at the airport. Do your taxes and then go out to eat.

Easy choices, hard life. Hard choices, easy life.

These books exist for a reason: We are myopic!

But with reflection, intention, and design goals align.

You don’t need to ___ because you are already ___.

“You have to be careful,” warns Clayton Christensen in How Will You Measure Your Life?

When things are going well with your friends and family. When your kids are doing well. When your spouse is happy. You have to be careful. 

“When it seems like everything at home is going well, you will be lulled into believing that you can put your investments in these relationships onto the back burner. That would be an enormous mistake.” 

I’m in good shape for forty-one. In December I ran a 1:37 half-marathon, impressing myself. 

But my neighbors say I don’t need to run because I’m already fit. 

The causality is backward. 

The Millionaire Next Door profiles people with large net worths and how they did it. They invested, worked smart and hard, and checked their expenses. They wore simple watches, drove older cars, and traveled simply. You don’t need to live so cheaply, their nosey neighbors might note, you’re already rich

Parts of How Will You Measure Your Life? are about the “dilemma” between short and long-term incentives. Measuring your life is a long-term game that needs long-term incentives. And “you don’t need to… because you are already…” is backward logic. 

You need to.

The Secret Path to JTBD

One secret entrance to the job to be done is how people hack your product. There’s the way you built a thing – using supply-side innovation to scratch an itch or whatever. But then there is the demand-side innovation of what people really want. This manifests as hacks, like desire paths.

Peloton saw people hack their own social groups on Facebook and then built social tags within the app. 

Instagram saw people hack photos to show white backgrounds with text and build polls. 

Josh Wardle saw people share their Wordle scores and built the feature into the app.

🟩🟩🟩🟩🟩

There’s a cake icing tool called the “silicone icing spatula”. We bought this set, but any will do. Its “supply side innovation” is to ice baked goods. Its “demand side hack” is to scoop out jars. 

Neither sauce, mayonnaise, nor store-bought icing can resist the sliding edge of this device. Tall container? No problem. Do you buy the peanut butter that separates? The good stuff but hard stuff. It becomes easy with this spatula. 

🎁🎁🎁🎁🎁

Buy a set of these to give away for the holiday. Not only is it a thoughtful gift, but it’s also helpful and the colors stand out among the sea of black kitchen devices in the spatula drawer. 

The only way to get better at a thing is to do a thing. Practice active copywriting, think about business models, and notice the different aspects of jobs to be done in your life. Find ways people hack products. Notice unusual go-to-market strategies. Think about when the customer and consumer are different people. Consider how requests are different from actions. 

Kelly Baked (ham) Copywriting

This Honey Baked Ham ad ran in December 2022.

The good. (1) Like the Ridge wallet, it shows contrast – but not of the products. We see the finished, polished, and plated, Honey Baked Ham.

Contrasted with the process. It’s not that your turkey, ham, or sides won’t look good but that it takes some serious effort – with tools you use once a year.

And techniques you use even less.

Buy a stick blender instead.

(2) Consumer spending is an example of median and average meanings. We average three thousand dollars a year eating out, but it’s not as simple as that number divided by 12 or 52. We only eat Domino’s Pizza with a deal. Similarly, during the holidays, customers are price insensitive.

Warren Buffett and Charlie Munger noticed this phenomenon in 1972 when they purchased See’s Candy. As Munger said, “I may see Wrigley’s gum alongside Glotz’s gum. I know about Wrigley but I don’t know anything about Glotz’s. If one is $.40 and the other is $.30, am I going to take something I don’t know and put it in my mouth?”

It was the same for See’s and for Honey Baked Ham where the pricing power comes from the holidays, food’s ‘intimacy’, and tradition. They never mention the price and they never should.

(3) Looking the part. When she started Haven’s Kitchen, Alison Cayne thought her cooking business was about food, but she found it was about appearance. Her cooking students (pre-Covid Cayne operated a cooking school in NYC) and sauce customers (the post-Covid pivot) wanted to appear competent.

The ‘job’ of a meal wasn’t filling bellies, it was filling expectations. Todd Snyder said that expectations drive his consumers too. You need to ‘look the part’ at the wedding, the interview, or the party.

Watch the ad. It’s not about the couple’s food, it’s about their appearance.

(4) What does Honey Baked Ham compete with? One part of JTBD is that products in the same category may not be competitors, like Snickers and Milky Way. Pizza, Chinese, and Honey Baked Ham are all Christmas dinner options, but the customers of one don’t consider the others.

Honey Baked’s competition is DIY – which is what this ad addresses!

The Bad. None!

The Interesting.

This ad is polished, like a Honey Baked Ham. At the end of 2022, ‘trending’ recipes were common. Hopefully, the Honey Baked Ham company avoids this and keeps bringing home the bacon with ads like the one above.

Problem Solving Perspective Shift

A new point of view is worth forty IQ.

The mechanism might be framing. Look at the same situation from a different set of experiences, expertise, or mindset, and the possible solutions shift. 

The not us but them point of view. Peter Attia used to be a very angry man. In his podcast with Andrew Huberman, he doesn’t elaborate on how just that he had a “raging” fire inside. He’d be hardest on himself. 

Try this Attia’s therapist suggested when you make a mistake, record a voice note on your phone about what you would say to a friend if they made that same mistake. Bingo. Peter’s comments softened. He was kinder to a friend than he was to himself. The effects were immediate. What had been a (hurtful) lifelong trait was gone in a few weeks. 

The not us but it point of view. Clayton Christensen wrote, “We are here to explore not what we hope will happen to us but rather what the theories predict will happen to us, as a result of different decisions and actions.”

What does the theory predict? It’s a helpful abstraction in our personal lives because we err toward the fundamental attribution error. We dismiss luck in our successes and credit it in our failures. It’s never us. 

Theory removes that. Our ego stands on the sidelines as the theory moves up and down the playing field. 

The not us but an engineer. The best part about being a good engineer, teaches Mark Rober, is that it makes you a good anything. Engineers are another profession problem-solving example. 

That’s what Katy Milkman found too. As an engineering major, she complained to her fiancé about going to the gym. He suggested she pull a Watney and engineer the shit out of it. Milkman started with the basics, If/Then statements. If I go to the gym, she told herself. Then I get to listen to this audiobook or watch this television show. 

Framing works. It works for others. It works for us. 

Framing works. It’s easy. It’s free. 

Framing works because it forces new thoughts. I never thought of things that way.

Drive Sober or Get Pulled Over

One way to think of the world is not good or bad but underrated or overrated. Switch from binary to fluid. 

Reading like a Bayesian is underrated. Jobs theory is underrated. Books are underrated. 

Think of Over/Underrated as a normal distribution. Only learning from books or never learning from books are bad. Each could “move up the curve”. 

Education, like financial literacy, as a solution is overrated.

Education is a “tight” solution. When my daughter was in elementary school she went to a speech therapist to work on her *th* sound. She had a cast to fix a broken arm. Her volleyball coach helps her with footwork. These are “tight” solutions that fit the larger set. 

Drunk driving advertisements like “drive sober or get pulled over” is another tight solution. 

But it’s wrong. It doesn’t fit the larger set of circumstances. 

A “wider” approach is to think not about drinking but about driving. 

The public could subsidize a ride-share happy hour. If people leave home without their car they can’t return home with it. Or, use the marketing money to pay for random rides. 

Another option is to change where bars are built. If it’s easy to walk or hard to park, people won’t drive.

Gamblers can “self exclude” themselves from casinos. Can insurance companies offer a drink driving equivalent? Let people save 5% while committing their sense of self?

Education is overrated because it’s linear, rigid, and two-dimensional. If X is good, do more of it. If X is good, the opposite is bad. 

Not necessarily. 

Related: using ambiguity aversion to hint at punishments.

Addendum: Because overrated and underrated are fluid and because times change, the overrated can become underrated.