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Loyalty or lethargy? Keeping sellers committed, not entrenched
While business sellers frequently enjoy long-term relationships with their buyers, not every extended association is based on a genuine sense of customer loyalty. Many organizations remain in relationships with providers for too long; while the seller has stopped providing value, the buyer sticks to the routine. Building from empirical research and theory on buyer-seller relationships, this research extends our understanding of customer complacency and seller entrenchment and introduces the concept of customer lethargy. Synthesizing theory from multiple domains with exploratory interviews conducted with business customers, this article offers insight into the functioning of organizational buying centers, the evolution of business exchanges over time, and how some exchanges can be undermined by various forms of relational dysfunction. I define customer lethargy, explore its root causes and offer business buyers a strategy which aims to help them self-audit their loyalty, avoid complacency and lethargy, and keep sellers committed, not entrenched. -
All Pain, no Gain? Why Adopting Sales Force Automation Tools is Insufficient for Performance Improvement
The dawning of the 21st century brought a wave of research into the phenomenon of sales force automation (SFA)--technology tools aimed at enabling sales organizations to better practice customer relationship management. While the academic literature has offered great insight into how an organization can increase the likelihood that its sales force will adopt a new technology system, a great majority of research stops there. This is unfortunate in that companies mistakenly infer that use of an SFA system is the major hurdle and that simply motivating SFA use will be the key to unlocking improved performance. However, this is often not the case; many organizations are able to get their sales force to use an SFA system but do not see improvements in performance. After briefly providing an overview of the factors affecting SFA use, this research provides insight into why use alone may not contribute to long-term improvements in a firm's sales performance. Key empirical findings and theoretical arguments from the extant literature are considered, and a list of best practices is offered here to help managers bridge the gap between SFA use and improved sales effectiveness and efficiency. -
Auditors Gone Wild: The "Other" Problem in Public Accounting
Following the scandals involving Enron, WorldCom, and Qwest Communications, the accounting profession has spent the past several years trying to get back on track. While Sarbanes-Oxley may improve the decision-making of audit professionals, and help prevent future large-scale catastrophes that hurt stockholders and bring down firms, there is another problem in public accounting that few consider and nobody has proposed to solve: deviant workplace behavior. Previous research describes deviant workplace behavior as the voluntary behavior of organizational members that violates significant organizational norms and, in so doing, threatens the well being of the organization and/or its members. Building from recent work in various business literatures, this is the first research since the passage of Sarbanes-Oxley to examine workplace deviance at Big 4 accounting firms. Taking a cross-disciplinary, collaborative approach, the authors endeavor to explain why workplace deviance has infiltrated accounting firms and how it is undermining their effectiveness and derailing their long-term prospects for success. After describing its genesis and effects, the authors prescribe several managerial strategies for preventing deviance and minimizing its effects on a firm.