Recovering From A Bad Decision (Answer)

This video segment describes a situation where the interviewee made a mistake in their role at American Express.

• Identified the Mistake: The interviewee implemented a new incentive system for customer care professionals that rewarded them for saving high-value customers while neglecting lower-value customers. This led to:

  • Cherry-picking of customers: Customer care professionals prioritized high-value customers, leading to long wait times for lower-value customers.
  • Negative customer experience: Long wait times resulted in poor customer satisfaction and potentially damaged brand reputation.
  • Missed revenue opportunities: Neglecting lower-value customers, particularly early-tenure customers, resulted in missed opportunities for future revenue growth.

• Learned from the Mistake: The interviewee learned the importance of:

  • Considering all stakeholders: Involving customer care professionals in the decision-making process.
  • Thinking long-term: Considering the long-term value of customers, not just their immediate spending.
  • Gathering diverse perspectives: Seeking input from former team members to identify potential pitfalls.

• Implemented Corrective Actions:

  • Revised the incentive system to account for customer lifetime value.
  • Implemented measures to improve call center response times and reduce wait times.
  • Developed a system to identify and address cases of long wait times for customers.

This example demonstrates the interviewee's:

• Self-awareness: Acknowledging and taking responsibility for their mistake.
• Problem-solving skills: Identifying the root cause of the issue and implementing corrective actions.
• Learning agility: Learning from the mistake and applying those learnings to future projects.
• Focus on customer experience: Prioritizing customer satisfaction and long-term customer relationships.
• Continuous improvement: Continuously refining processes and seeking ways to improve performance.

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