Broken windows: Guiliani’s ‘zero tolerence’ policy has business applications

In the last two years a number of large, high profile companies in this industry have either come to grief, or have caused customers grief. The upheaval has been massive. One large fabricator, near the end of his tether, commented that his supplier had not delivered a single complete order in the last three years. Another complained that his supplier didn’t ask customers what they wanted in a new product or service, or listen to customers’ replies when they did.

Understandably some of these companies have lost customers, market share and reputation. The press blamed overambitious, poorly implemented distribution systems, hastily introduced computer systems, quality problems or service shortfalls. Every business goes through difficult problems at one time or another, and it’s not just big companies that lose the plot. But there are always warning signs, and you can’t help wondering how, with all the brains, money and resources at their disposal, large companies wait for a crisis before they react.

New York, New York!

Twenty years ago New York was a city spiralling out of control. Gun crime was rife. Burnt out cars were abandoned on the streets. Central Park was littered with used needles. Broken windows and graffiti were everywhere. The authorities had focused on solving serious crime but had turned a blind eye to minor offences. In contrast, Mayor Rudi Giuliani initiated a zero tolerance policy, where no crime was too small to punish.

Giuliani’s actions were based on a 1982 report called ‘Broken Windows’. Sociologists Wilson and Turner had studied the gradual decline of city neighbourhoods and the inexorable spread of crime. They observed that if a broken window is left unrepaired people notice that no one cares. It becomes a target for kids playing in the street who soon break some more.

Neglect is contagious

Gradually they become bolder and decorate the walls with graffiti, and the neighbourhood begins to look run down. Squatters move in and drug dealers hang out. Cars are vandalised and abandoned. Prostitutes and pimps patrol the streets. Working residents move out to safer areas. Empty houses are unsold. Mugging and robbery become commonplace. Serious criminals openly claim the street. Murder rates rise. Intimidation and protection rackets squeeze the lifeblood out of the remaining shops and businesses. Like a disease, neighbouring streets become infected and follow it into decline.

Wilson and Turner said the effort to tackle serious crime was misplaced, and was doomed to fail. Instead, tackle the little things first, like broken windows, whenever they occur and you will reverse the decline or prevent it in the first place.

getting the little things wrong in business creates a downward spiral too

Giuliani and his team tackled the little things head on.Nothing escaped. There were no ‘no go’ areas. Graffiti was cleaned and broken windows replaced in the subways within two hours or the subway cars were taken out of service. The graffitists gave up spraying. Extra officers were drafted in. Tickets were checked and hundreds of fare dodgers were rounded up, arrested and fined on the first day, and on subsequent days. The subway became a safer place.

Giuliani doubled the number of police. They were visible everywhere. Property owners were forced to mend their windows and clean off graffiti. Beggars and street people were moved on. Rowdy behaviour was punished. By reducing petty crimes lost areas and streets were reclaimed. Minor crime was stopped in its tracks. Serious crime rates fell, and keep on falling, even today. The experiment was a resounding success. It was tried elsewhere and, when implemented resolutely, worked just as dramatically.

Get the little things right

Getting the little things wrong in business creates a downward spiral too. Just as on the streets of New York, minor crime creates the conditions for major crime to flourish. Unexplained delays, incomplete deliveries, tolerance of quality shortfalls, watered-down commitments and broken promises tell staff and customers you don’t care.

Not caring, and tolerating such problems paves the way for major disasters. It’s a sickness that affects companies of all sizes, brought on by an internal focus, lack of consideration, and short term thinking.

We get used to lack of follow-up, watered-down commitments, unexplained delays and broken promises. We are often disappointed. But a business that keeps its word shines out like a beacon to customers and potential customers. Your word is your sharpest weapon.

We know that prevention is better than cure: it is better not to let things slip in the first place. But if they do, start with the little things. Giuliani started with the broken windows and graffiti of New York and reclaimed the city. Stick to your promises, keep things simple, show customers respect, take zero tolerance to heart and choose suppliers who believe in the same things you do. It may not seem much, but your competitors will soon be reeling.