June 2018

The Danger of “Partial” Feedback

Unhappy Person - Unhappy Face

Image Credit: © blacksalmon – Fotolia.com #206499440

One of the challenges we face when looking to build organisations that can remain viable in an ever-changing environment is the need for organisations to ‘appreciate’ (look for) and respond to feedback.  The term ‘feedback’ is broad, and in practice it can take a whole variety of forms.  We might immediately think of compliments or complaints as sources of feedback, and whilst this is true, there are many other sources beside.  Some might be quantitative feedback signals and trends (“Product X has experienced a sustained drop in demand”) others might be qualitative (“Look at all these suggestions from customers that are in our mailbox!”).  The challenge for organisations is knowing which areas to focus on—which elements of feedback to action, and which to disregard.  A bigger challenge is to come up with a hypothesis as to why the trend has occurred and what needs to be done.    Traversing this tricky road requires ongoing strategic business analysis, establishing what is happening in the external environment, and aligning potential opportunities against existing strategy (or in some cases considering a change of direction).

 

Partial Feedback: A Restaurant in Toronto

When it comes to analysing feedback—whether qualitative or quantitative—one particular challenge that should be kept in mind is the fact that partial feedback can be very misleading and can lead to costly mistakes.  I was reminded of this recently when eating in a restaurant in Toronto, Canada (a very vibrant city that I hope to visit again soon!).  One thing that varies a lot by culture and nation is the approach to tipping in restaurants.  In the UK, tipping is normally considered optional, with 10% being usual for satisfactory service.  I gather in the USA it is much higher, and in Canada I am told 15% – 20% is customary (although different people appear to have different views!).