A smart CEO exceeds customer expectations
Q&A with Bo Andersson
Bo Andersson is President & CEO Danfoss Flomatic, located in Glens Falls, New York, is a growing and progressive manufacturer of high quality valves primarily for domestic and municipal water and wastewater applications.
Danfoss Flomatic is well known for their deep commitment to customers, employees, and global partners; continually improving the design, production, and marketing of high quality valve products that are environmentally sensitive and meet or exceed customer expectations.
In a recent interview, Mr. Andersson said, “We keep a close eye on our customers’ level of satisfaction. Gathering information from several sources, including direct surveys of our top customers, illustrates a steady increase of satisfaction over the years. We’re continuing to operate as a technology company, leading the industry with new and innovative products which are covered by numerous patents and trademarks to meet the ever expanding needs of our customers.”
A tour of the company’s manufacturing plant would show that one of the last steps before the product is shipped is the addition of the warranty card.
“It’s not just a warranty card,” Mr. Andersson added. “It’s also a thank you note. We feel that’s a very important element to thank the product’s end-user that we rarely know. Anything worth doing is worth doing with the best possible sense of urgency. You have to earn it. You can’t go for the profit — it is something you earn each and every time.”
Background: Danfoss Flomatic products include Automatic Control Valves, Backflow Preventers, Check and Foot Valves in a size range from ¼” through 30”. The Danfoss Flomatic customer base is primarily in the water works, plumbing and industrial processing industries with exports to forty countries.
For more about Danfoss Flomatic, please visit www.flomatic.com.
Q. What do you consider is the job of a CEO?
A: Leadership- demonstrates a capacity for a positive healthy and upbeat attitude through good times and bad.
Communication skills- a CEO is a good, deep listener; speaks slowly and clearly to insure that everyone understands them. Insures that what they say is understood and not misunderstood. Good communication skills are the most important tool that a CEO has in his toolbox.
Demonstrate passion- Passion is the first step to success. Anything worthwhile doing shall be done with a sense of urgency and commitment. Staying focused on your commitments and goals more than anybody thinks is reasonable, is passion.
Make tough calls- making decisions in business is difficult. Making tough calls fairly, timely and with commitment is brilliant; very few CEO do this.
Run the company with a profit- CEO’s are responsible for the bottom line and employees like to work for companies that make money. A successful company also likes you to share it with them. A CEO insures that his employees are paid well and make a bonus at end of each year. Money is not the only motivator but as a CEO this is your insurance plan to keep your job and to keep your top performers. All of the other important and noble points above for CEO to consider do not make any sense if you do not know how to make money.
Q. What was the #1 surprise realization you had back when you began your role as a CEO?
A. It is sometimes a lonely feeling to be a CEO as you cannot always say what you really think. You are held to a different standard. The door to change does not swing in somebody else’s face, it swings in yours.
Q. A consultants’ advice is easy to get, but we realize it is important to get advice from someone who has already done the job. Have you had an experienced CEO to turn to for advice?
A. Yes, we work with consultants on various issues. I network with other CEOs on industry issues and learn new things every day. Seeking advice on technical and business matters is very important to energize the organization as well. I believe that all successful CEOs have also had good mentors and support from other CEOs. The trick for me is to pick-up the ideas that can help me and our organization. Often these are very small simple subtle things that will make a big difference.
Q. What is your strategy for ensuring customer satisfaction?
A. The number one thing for us is quality, quality and quality. Never compromise with quality. Control the manufacturing process inside out and work closely with your suppliers. They are your partners and you can never produce a better product than what your vendor allows you. Their component parts have to be better quality than the final product that you make or you lose.
We conduct ongoing customer surveys thru the mail and internet. We run statistical control on our service rate and customer satisfaction. We are always looking for new ways to make it easier for our customers to come to us for their product needs. This is a never-ending process that we measure and improve on all the time. Everything we do or change in our operation is linked to helping our customer in one way or another. All of our new products are driven by a close working relationship with our customers’ never-ending need for better performance, materials and value. As CEO I am deeply involved with customer satisfaction as our most important strategic goal in our company on all levels.