Monday, June 09, 2008

The new international airport at La Mercy is taking great shape and although it has, historically not been a very smooth ride to get to the level it is now, it is rapidly becoming part of the Durban and KZN skyline.

The magnitude of the multi billion rand project has construction work taking place at about six areas on the vast site. With a project of this nature it is interesting to note the quantity off the materials being used on the site on a daily basis. Some of the interesting facts on the construction site include:

There is about 100 park homes that on site which houses the various contractors and their staff which consists of over 2100 contractors and sub contractors. About 200 earth moving equipment has already moved about 4 million tons of earth on the site.

Due to the pace of the construction, it is very noticeable that the shape and scale of some of the construction areas on the site take a different shape as the weeks go by. Considering the fact that the completion target is set for the 1st quarter of 2010, some areas have had some major construction activities recently:

• Piling was completed on the northern elevated roadway ramp.
• The terminal building basement retaining walls have been completed.
• Concrete slab has been poured for the terminal building arrivals hall.
• Work has commenced on the construction of the northern ramp of the elevated roadway to the departures level.
• Casting of concrete for the multi storey parking commenced including casting of the retaining walls of the cargo building.
• Work on the control tower and the lift shaft is in progress.
• The design and construction of the cargo building is in progress.
• The runways and taxiways are on program with the road bed preparation on the shoulders of the taxiways been completed.
• The Tradezone area is being cut filled with bush clearing in progress.

Airports Company South Africa (ACSA), together with the Dube TradePort (DTP) has a team on site to work with the contractor, the Ilembe Consortium. Heading the project for ACSA, Sean van der Valk, Project Manager, said, “We are working together with the contractor and the professional teams on site to manage the project but also to ensure the project is delivered on time”. He added, “As this green field project is going to be an historical event we are working towards delivering a world class facility with the co-operation and in consultation of all the relevant stakeholders”.

]]> http://nextcustomer.wordpress.com/2008/07/08/la-mercy-update/feed/ 0 nextcustomer http://nextcustomer.wordpress.com/2008/07/07/cape-town-to-get-new-rail-link/ http://nextcustomer.wordpress.com/2008/07/07/cape-town-to-get-new-rail-link/#comments Mon, 07 Jul 2008 11:26:51 +0000 Steven Viviers http://nextcustomer.wordpress.com/?p=310 ]]>

Plans for a R1,4-billion rail link between Cape Town International Airport and the centre of the city have been unveiled by the South African Rail Commuter Corporation.

The Corporation has completed a feasibility study and is now looking for a partner in the private sector.

Hishaam Emeran, senior manager of Strategic Network Planning for the Corporation, said: “A project of this nature lends itself to private sector involvement and we are exploring this option.”

The rail link is unlikely to be built before the first phase of the high-speed Gautrain in Gauteng, which will link South Africa’s busiest airport, OR Tambo International, to Sandton around 2011.

The state-owned Commuter Corporation operates the passenger company, Metrorail.

Emeran said they had already worked out the route of the Cape Town rail link. A total of 4km would be elevated, and the line extension would link to the existing Bellville-Sarepta railway line near Lavistown station. The preferred rail route lies mainly between Modderdam and Borcherd’s Quarry roads before entering the airport precinct.

A station would have to be built at the airport, and a second might be built along Modderdam Road.

The train might also stop at Mutual station in Pinelands, which would facilitate the transfer to and from other key rail corridors in the region.

Emeran said the planning was fully integrated with the Airports Company South Africa’s master plan.

The upgrade of Cape Town station would also include facilities for the airport service.

Officials from the city and the province took part in the technical feasibility study, and they are still liaising.

Some of the benefits include improved access to the airport, reduced road congestion, less parking congestion at the airport, lower vehicle emissions and pollution, and increased development potential at the airport and surrounds.

The feasibility study showed the airport was the second busiest in South Africa with passenger numbers of more than eight million a year.

The passenger-growth rate had exceeded the economic growth rate continually and for the past five years averaged almost 10 percent a year.

The main reasons for this high growth were considered to be economic growth, the attractiveness of Cape Town as a tourist destination and the introduction of low-cost airlines.

Activities in connection with the 2010 soccer World Cup, and the event itself, would contribute to sustained high growth of air travel from and to Cape Town in the short to medium term.

The report said the challenge was to upgrade the rail facilities and to provide services to meet the requirements of both air travellers and commuters.

June 12, 2008
By Ingi Salgado and Sapa

High fuel prices are leading some South African motorists to take desperate measures, such as filling up and driving away from service stations without paying. It’s a relatively unexpected development given the presence of petrol attendants at the point of sale on forecourts.

Fuel Retailers’ Association chief executive Peter Morgan said yesterday that an incident in which an Empangeni petrol attendant was knocked down and had to be hospitalised on Tuesday night was not isolated.

“There have been about 10 similar incidents over the past month,” Morgan said. “Every motorist all over the country is feeling the same pain … As soon as fuel prices increase, motorists fill up and speed off.”

The price of 95 octane petrol sold in Gauteng rose to R9.96 a litre this month. On January 2 the price was set at R7.47 a litre.

Graeme Yager, a corporate planning manager at oil company Chevron, said there had been similar reports in overseas markets with self-service stations, although closed-circuit television monitoring tended to act as a deterrent. The group’s South African retail division had not yet been affected.

Retailers say high fuel prices have also led to rising incidents of cheque fraud and an array of excuses about not paying.

Wessel Strauss, the chairman of the SA Petroleum Retailers’ Association, which represents about 1 200 retail outlets, said there had been three incidents of cheques bouncing in the past three days alone. “People are asking for R100 of fuel and when it’s in the tank, they say they only asked for R50,” said Strauss. If a driver refused to pay, the service station incurred the expense of calling a mechanic to drain the vehicle.

High fuel prices were starting to eat into the working capital of service stations. Strauss estimated that since the start of the year, about 15 percent of South Africa’s 4 500 retail outlets had closed down as a result of higher fuel prices. “The smaller sites that don’t have big turnover are really suffering.”

Morgan said he had urged retailers to put up signs saying petrol attendants would ask motorists how they intended paying for fuel before filling up.

Mounties Ambulance Service spokesperson Joseph Kruger said the 29-year-old Empangeni petrol attendant had suffered suspected spinal injuries and an injury to his hand.

The attendant told paramedics that he fell onto the bonnet when the motorist sped off. When the driver continued to accelerate, the attendant fell off and was hit by a wheel.

The latest Global Entrepreneurship Monitor (GEM) study, conducted by the University of Cape Town Centre for Innovation and Entrepreneurship (CIE), based at the UCT Graduate School of Business, has found that more South African youth are developing the confidence and potential to become entrepreneurship superstars.

The key findings show that the youth (categorised as those in the age categories of 18-24 years and 25-34 years) have a positive attitude towards opportunity-oriented business activities and a willingness to work with others towards achieving their objectives.

According to Dr Mike Herrington, Director of the UCT CIE and research team leader of GEM South Africa since 2001, the window of opportunity is open and ready for accelerated youth entrepreneurship development.

“The youth constitutes the majority percentage of the population and their importance in the current and future environment cannot be underestimated. With creative energy and willingness from South Africa’s key players, youth entrepreneurship development can be accelerated to bring renewed socio-economic growth in South Africa,” he said.

The latest GEM report, said Herrington, is an analysis of GEM study findings to date rather than a participation in the latest annual round of the global entrepreneurship assessment and rankings.  However, new research was conducted in Gauteng, the Western Cape and KwaZulu-Natal, which have been identified as South Africa’s main entrepreneurship hubs, in order to obtain a deeper understanding of the trends amongst youth in these areas.

In the analysis of these regions, the researchers identified six trends which point to the youth as being capable of generating much-needed socio-economic growth in South Africa.

The first of these trends shows that more youth are opportunity seizers as against those starting a business because they have no other option.

The analysis focused on the Total Early-Stage Entrepreneurial Activity (TEA) rates – the primary measure of entrepreneurship used by GEM – of youth from 2004 to 2006 and shows the youth age group 25-35 years had the highest TEA rate of all the age groups researched in two of the three years surveyed, showing an increasing trend of opportunity orientation (meaning they want to be entrepreneurs because of an opportunity they see rather than because they have no choice).

Secondly, more female entrepreneurs are entering the market – youth male entrepreneurs exceed youth female entrepreneurs in 2004 and 2005 but are equal in percentages in 2006. This is in line with international trends in the growth of women entrepreneurs.

Thirdly, an increase in the total number of students completing secondary school could be a positive trend which, if they acquire the correct skills set, can eventually form a sound basis for more accelerated TEA activities among youth. However, the quality of education will need to be carefully monitored to ensure that the youth are being taught the correct skills to enable them to be job creators.

In terms of secondary training completed, in the age group 18-24 years the percentage of respondents who had completed secondary education increased from 30.6% to 43.7% from 2004 to 2006, and in the age group 25-35 this went up from 37.4% to 48% over the same period.

In terms of tertiary graduation the age category 25-34 years showed a positive although small trend as well – the percentage of respondents who are graduates increased from 0.9% in 2005 to 2.6% in 2006.

“In an environment characterised by high levels of innovation, technological change and increased global competitiveness, education plays a major role. Higher levels of education are needed to compete in such an environment,” commented Herrington.

Fourthly, in addition to strong positive education trends for youth, the youth also believe that they have the right knowledge and skills to create new businesses. In both the youth age categories the positive trend is evident between 2005 and 2006. In the 18-24 years group, the percentage that believed in their abilities rose from 36.9% to 37.6%, and in the 25-34 years age group, an increase was seen from 44.0% to 47.1%. Aligned to this, it was found that “Fear of Failure” as a criteria for preventing young people from considering starting new businesses has decreased in significance.

Fifthly, the respondents felt that a culture for entrepreneurship is being created in South Africa. In the 18-24 group, 38.0% of respondents in 2006 feel strongly that a culture of entrepreneurship is being created in South Africa. This is mirrored by a strong 41.8% in the 25-34 age group. These strong sentiments are largely consistent over the three years 2004 – 2006.

Finally, there is a positive mindset among youth regarding the possible creation of new jobs in the future.

“This is a crucial mindset for sustainable entrepreneurship and to add value to the socio-economic growth development of South Africa,” said Herrington.

There are however a few worrying issues that need to be addressed. For example, there are social problems among the youth in South Africa such as drug abuse and unemployment. What is of concern is that in an age of entrepreneurship the impression amongst the youth is that entrepreneurship is for someone else or that the government will provide a job.

Innovation is very important in any knowledge-driven environment. If a country wants to become a leader then this is critical. Youth in the age categories 18 – 24 years and 25 – 34 years are clearly using less and less technology over the period 2004 to 2006.

The same trend prevails regarding whether their products can be regarded as new.  The question is why people are afraid to come up with new ideas. Are they afraid or are they not supported if they do come up with a new idea?

Finally, research shows that many of the early stage businesses started by the youth are doing the same thing. This could indicate a negative trend regarding perceptions on innovation which can manifest in negative consequences for the economy over the long term if not properly addressed.

“The issue is therefore not whether youth entrepreneurship should be supported but rather how. Although a positive base exists, more should be done in an accelerated manner to address national challenges and to form a basis from which South Africa will be able to compete on an international level with developed countries,” said Herrington.

Areas that government policy could focus on that are likely to have positive spin-offs with regards to accelerating entrepreneurial development include: education and training; exposing youth entrepreneurs to different market conditions and support in identifying modern, cutting-edge business ideas; and providing support services needed to help them to develop the ideas. A national support system should be developed, addressing the specific needs of youth entrepreneurs and focussing on the constraints that are unique to youth businesses.

Brown University and the University of Cape Town Partner To Promote Business Capacity in Africa

Brown University and the University of Cape Town have entered into a five-year partnership that will improve and deliver business education to entrepreneurs in Africa, particularly to women. The partnership is part of a larger international initiative led by Goldman Sachs to increase the number of underserved women receiving a business and management education.

PROVIDENCE, R.I. – Brown University today announced that it has joined a global initiative to improve the quality and capacity of business education in developing countries and emerging markets, particularly for women. The five-year partnership, called “10,000 Women,” brings together universities and international development organizations in a program to administer business and entrepreneurship education to 10,000 women in underserved nations.

Brown’s participation involves a partnership with the University of Cape Town in South Africa, which will develop technology entrepreneurship education in Africa. Led by Angus Kingon, University professor of entrepreneurship and organizational studies at Brown, the multiyear program will adapt existing best practices in technology entrepreneurship to an African context. Technology entrepreneurship refers to the capacity to create new businesses whose products and services are based on emerging technology or novel combinations of existing technology. These businesses are designed to grow, compete internationally, and lead to strong employment growth. Women, in particular, will be encouraged to participate.

“This program allows two strong institutions to collaborate in advancing entrepreneurship education in Africa,” said Kingon. “We can create a cadre of skilled African entrepreneurs who can create and manage technology-strong enterprises that can compete nationally and internationally, which is urgently needed.”

The University’s participation in this global business education initiative comes at a time when President Ruth J. Simmons has made internationalization a strategic priority for the University. Under Simmons’ leadership, Brown has taken steps to ensure that students are well prepared for the challenges and opportunities of an increasingly interconnected world. This includes encouraging scholarship by international students and strengthening ties and research with educational institutions around the globe.

“Our world and our economy are increasingly global,” said Simmons. “As an educational institution, we have a role in providing the benefits of our knowledge not just to our students at Brown, but to other areas of the world, specifically to those that are underserved.”

Simmons is a member of the board of directors at Goldman Sachs. Other universities involved in the program include:

• American University of Afghanistan;
• American University in Cairo;
• Columbia Business School
;
• Harvard Business School
;
• Indian School of Business;
• Pan-African University, Nigeria;
• School of Finance and Banking, Rwanda;
• Stanford Graduate School of Business;
• Thunderbird School of Global Management;
• United States International University, Kenya;
• Judge Business School, University of Cambridge;
• University of Dar es Salaam, Tanzania;
• William Davidson Institute at the University of Michigan;
• Wharton School at the University of Pennsylvania.

The 10,000 Women program brings together academic partners, development organizations and Goldman Sachs to support pragmatic, flexible and shorter term academic programs, resulting in business and management certificates that can open doors for thousands of women whose financial and practical circumstances prevent them from receiving a traditional business education. There will also be a select number of M.B.A. and B.A. degrees funded.

In addition to funding tuition for business and management education, 10,000 Women will work with development organizations to better understand the local challenges girls and young women must overcome so more of them can realize economic opportunity and achieve their full potential. Some of these partnerships will seek to establish mentoring and networking channels for women and encourage career development opportunities.

There will also be a strong focus on capacity building: developing curricula, creating local case study models and training the trainers to improve the level of faculty training and expertise as well as increasing the overall quality of business education.

The Global Report on Call Centre Practices is a free monthly newsletter that provides fresh insight and analysis on customer management issues, and how customer contact trends and developments across the world are impacting virtually every organization in today’s communications-driven economy. It is produced by ICMI, part of Think Services and the UBM family of companies, with offices worldwide, and is edited by ICMI president Brad Cleveland.

In the latest edition they say…

The results you create (for your customer) depend on being able to get support from people who work at different times, different places, or in different departments.

If you are a call center manager, you will likely have the responsibility of getting results from people that work in different locations, don’t report to you, or don’t work the same hours. Computer and telecommunications technologies have spawned organizations that span geography and time. Multi-site environments, cross-functional teams and extended hour or 24×7 operations are common call center examples.

But technology hasn’t eliminated the natural barriers that exist between people who work in distributed environments. People who work in different places and/or at different times often have trouble seeing themselves as an integral part of a larger team.

Like leadership in general, there’s no specific recipe for building a cohesive virtual team or organization. There are, however, tried and true principles that will significantly increase the chance for success:

1. Create a compelling vision. I know, many organizations have been through the process of creating mission and vision statements that have had little or no impact on peoples’ actions. But creating an effective vision – one that is alive and dynamic – is absolutely essential to managing a distributed team. Vision begins by asking and answering key questions, e.g., What are we trying to achieve? How will the organization and all who depend on it – customers, employees, shareholders – benefit from our success? How do individual members contribute to overall results? A clear focus that is championed by the leader is a prerequisite to pulling people in and aligning actions.

The Global Report on Call Centre Practices

As president of ICMI, Brad Cleveland has delivered keynotes, executive briefings and consulting services in over 50 countries. ICMI is part of the CMP family of companies, a global leader in business information services with offices around the world. Brad can be reached at bradc@icmi.com.

NEXTCUSTOMER, PLEASE has as one of its objectives the improvement of customer service in African organisations. There are a few ways it aims to achieve this. Almost all of the comments contained in our various blogs are about service champions and / or exceptional customer service around the world.

We are sometimes given to wander how it is, with so many threatening situations to contend with in our daily lives, as Africans, that we are able to provide a satisfactory level of service at all.

Three things seem to characterise our continent at present. CONFLICT, DROUGHT (resulting in terrible poverty) and DISEASE. These are crises threatening our very peace and security.

Recently some of us have had the privilege to be involved in a new business start-up involving an entirely new team. The team were all previously unemployed and were recruited from ‘townships’ like Langa and Nyanga near Cape Town.

Nyanga is a township in Cape Town, South Africa. Its name in Xhosa means ‘moon’ and it is one of the oldest black townships in Cape Town. It was established as a result of the migrant labor system. In the early fifties black migrants were forced to settle in Nyanga as Langa became too small. Nyanga is one of the poorest and most dangerous parts of Cape Town. Its unemployment is estimated at around 70% and HIV/AIDS is a huge community issue.

We undertook to train the team in the various skills required for service and selling, but they would each need to demonstrate commitment and take responsibility for their workplace.

During the opening weeks two of the team were attacked on their way home from work having just disembarked from public transport (actually, within a street of their home) and robbed of their daily wages. These are violent attacks by small gangs of knife-wielding thugs or criminals (men and women) who will not hesitate to take life if confronted. A third member of the team had her rented flat broken into and her life’s possessions stolen. She will struggle to replace them as her small wage covers basic living requirements only (food and clothing for her family and transport to work). A fourth member of the team was evicted from his rented room and spent three nights searching for alternative accommodation. He came to work everyday (a little late, perhaps, and tired but work nonetheless).

So as Africans let us state, for the record, that we do not believe in contrived service. We believe in authentic service the African way. We believe our people have a natural advantage and disposition to offering warm, hospitable service and will under very trying circumstances.

Thousands of women entrepreneurs in developing countries have started their own businesses, many with help from local banks and other non profit organisations that have issued them small loans and financial support.

Up until now there has been one flaw in the process: Most of the women have little formal education and lack the management skills and financial knowledge to take their business to the next level. On Mar. 5, 2008 investment bank Goldman Sachs announced it would change this by contributing $100 million into educational projects for these women over the next five years.

In an announcement at Columbia University in New York City, Goldman Chief Executive Lloyd Blankfein said the company is hoping to create a new model of management education designed to help these women learn everything from how to write a business plan to market their own business.

The company will be teaming up with top business schools, including Wharton, Columbia, Harvard, and Cambridge University’s Judge Business School, to develop management education certificate programs at universities in countries such as Nigeria, Rwanda, and Afghanistan. The programs will be flexible and of short duration, ranging from several weeks to several months.

What is 10,000 Women^SM?

10,000 Women has six components:-

• 10,000 Women Over Five Years Will Receive a Business and Management Education: Over the next five years, Goldman Sachs will support partnerships with universities and development organizations that will lead to 10,000 women receiving a business and management education. The initial partnerships will fund business and management education certificates in countries around the world. These innovative certificate programs are pragmatic, flexible and shorter term and will help open doors for thousands of women whose financial and practical circumstances prevent them from ever receiving a traditional business education. These programs will provide women with the opportunity to develop specific skills, such as drafting a business plan, accounting, public speaking, marketing, management and accessing capital. There will also be a select number of MBA and BA scholarships funded.
• Build Quality and Capacity Through Global Business Sister School Partnerships: To strengthen the quality and capacity of business schools in developing nations, Goldman Sachs will support new partnerships between business schools and universities in the United States and Europe and business schools in developing and emerging economies. Through these partnerships, the schools will collaborate to train professors, exchange faculty, develop curriculum and create local case study material.
• Establish Mentoring and Post-Graduation Support for Women Entrepreneurs: In addition to funding tuition for business and management education, 10,000 Women will seek to establish mentoring and networking channels for women and to encourage career development opportunities that will extend the benefits of the program beyond the classroom, leveraging the overall impact of their educational experience.
• Work with Leading Research and Women’s Development Organizations: Many outstanding organizations are working on the ground to give girls, young women and potential entrepreneurs a sense of their future potential. 10,000 Women will work with these organizations to better understand the local challenges these girls and women must overcome so more of them can ultimately realize their potential through access to greater economic opportunity.
• Develop Partnerships in the United States to Help Disadvantaged Women: As part of 10,000 Women, Goldman Sachs will establish parallel programs and partnerships to provide more business and management education for disadvantaged women in the United States.
• Commit $100 Million in Addition to the Time and Dedication of Goldman Sachs People: Goldman Sachs will commit $100 million over the next five years to 10,000 Women. In addition, the people of Goldman Sachs will contribute their time and expertise through classroom instruction and mentoring

What are People Saying about 10 000 Women?

“Women’s entrepreneurial capital has gone untapped for far too long in the developing world. Building women’s human capital will have a multiplier effect: not just filling existing needs for scarce business skills, but creating new demands, new jobs, new wealth-and, let’s hope, a more people-friendly global economy.”
- Nancy Birdsall, President, Center for Global Development

“It is vitally important that women have opportunities to develop their financial leadership skills. This initiative will help catalyze and promote the role of women in financial services for the poor and empower them to be leaders of the future.”
- Dr. Helene Gayle, President and CEO, CARE USA

“We know that primary and secondary education for girls is crucial to their ability to shape the course of their lives. But for girls to succeed, the skills they gain in school must match the jobs available in today’s global marketplace. Yet That critical space – when girls transition from school to work – has been invisible to the financial and international development communities… alike and investments to ensure a smooth transition have been limited. More than survive, we want women to thrive.”
- Geeta Rao Gupta, President, International Center for Research on Women

“Around the world women leaders are increasingly driving economic, political and social progress. They are the catalysts of change of our time. We know from a growing body of research-from the World Bank to the World Economic Forum-that investments in women’s education and training pay significant dividends for society. Without women’s full participation, no country can prosper, but in order to tap their potential, women need the tools for effective leadership. There is no better investment for our world.”
- Melanne Verveer, Co-founder and Chair Vital Voices Global Partnership

“Reversing cycles of poverty can be an abstract conversation. With incentives of financial gain, families choose to keep their girls unmarried, healthy and in school. More girls grow up to become businesspeople, who create more opportunity for the girls that follow. Cycles of poverty are replaced by positive spirals of growth.”
- Maria Eitel, President, Nike Foundation

“The professional development of talent is a critical component of addressing global inequities. Providing women with access to education gives them entrepreneurial tools they need to build their own futures – which in turn creates a corps of leaders with the skill and will to effect broader change.”
- Jacqueline Novogratz, Founder and CEO, Acumen Fund

“Creating more female entrepreneurs in developing and emerging economies satisfies all the requirements of smart development: the benefits will multiply far beyond the investment; it is sustainable over the long run; it is adaptable to local needs; it is focused; it is measurable and it helps beneficiaries, communities and states alike.”
- Linda Rottenberg, Co-founder & CEO, Endeavor

“Education and training are the foundation of women’s empowerment. When women are equipped with solid business knowledge and skills, they can effectively compete in the job market or become successful entrepreneurs, and in turn, empower other women to gradually transform society.”
- Dr. Codou Diaw, Executive Director, Forum for African Women Educationalists (FAWE)

“We cannot talk about building sustainable economies, sustainable democracies and sustainable societies without having strong and empowered women. Strong women lead to strong nations. This makes investments in their education, economic opportunities and political participation vital elements to building a more peaceful and secure world.”
- Zainab Salbi, Founder and CEO, Women for Women International

“While entrepreneurship is key at all levels of society, nowhere is it more important than for women and the dispossessed, who often do not have access to the traditional paths to progress and must carve out their own roads. By teaching the teachers to pass on the lessons of management, Harvard Business School will have the opportunity to contribute to the kind of practical education that can change people’s lives and help reshape societies.”
- Michael Chu, Senior Lecturer of Business Administration, Harvard Business School

The results of Business Week’s 2008 Customer Service Champs ranking made clear what most American consumers already knew: Customer service in the USA is on the decline. Consumers who responded to this year’s J.D. Power & Associates surveys spoke about their frustration. The average score on the service champions list fell slightly, with a majority of companies scoring lower than last year. Even the scores of a few exceptional service organisations, including Four Seasons Hotels and Saturn (GM) cars, fell.

Why the decline? J.D. Power’s chief research officer, Gina Pingitore, believes the economy could be the culprit. While J.D. Power’s research shows strength in product satisfaction, the results for service issues-like employee knowledge and skills or processes such as accepting merchandise returns-are a different story. “[Companies are] cutting back on staff, they’re cutting back on services,” Pingitore says. “Consumers are beginning to see it.”

Sentiments about customer service may have dropped, but the top 25 companies, which are selected using input from J.D. Power studies and BusinessWeek readers, still got plenty of praise. There were many repeat winners, but 10 new names made the list this year, including American companies well-known for service, like L.L. Bean and Amazon.com (AMZN). Service favorites Trader Joe’s and Chick-fil-A made it into the rankings. A few names, such as Wachovia (WB) and Fairmont Hotels & Resorts, beat out prior winners in their industries. JetBlue Airways (JBLU) earned its way back on to the list after getting dropped last year when massive February storms sent its operations into a tailspin. Following that failure, JetBlue created a customer bill of rights that mandated vouchers for delays and added customer service managers.

Methodology

Business Week started with existing data from J.D. Power, a consumer researcher. They combined the scores from a series of studies in J.D. Power’s 2007 database for each brand. To qualify, the studies had to have at least 100 responses. They eliminated industries that cater to niche markets, such as motorcycles, and those in which consumers rarely base decisions on service, such as airports. Only luxury and upscale hoteliers were considered. To compare similar services in banking, cable, and telecom, they eliminated brands that did not appear on most of J.D. Power’s studies for that industry. (For example, banks had to show up on at least four of the five related surveys-retail banking, car loans, home equity, and two mortgage studies-to be considered.) They looked only at the studies in J.D. Power’s database that measure processes and people.

Popular Votes

Business Week supplemented J.D. Power’s database by surveying 5,000 readers using the BusinessWeek Market Advisory Board, asking them to nominate three companies they felt were the best and three they felt were the worst at customer service. More than 1,000 readers responded, with 2,596 “votes” and 1,885 “complaints.” Companies that got at least 10 votes, had a vote-to-complaint ratio of at least 2:1, and were not already in J.D. Power’s database were added to the list. J.D. Power created a Web-based questionnaire for these brands and surveyed at least 100 customers to get a comparable score.

J.D. Power then ranked all of the brands, using scores from both their database and the surveys. Business Week combined the “people” and “process” scores from J.D. Power’s data to create the Service Index, with people weighted at 60% and process at 40%. Then, because they were comparing widely divergent industries-a romantic weekend at the Ritz-Carlton is a much different experience than an afternoon waiting for the cable guy to arrive-credit was given for scoring high within an industry. Brands that ranked first in their category received 100 bonus points; those ranking second received 50. They subtracted 50 points from each company’s score that fell below third place.

Three changes were made to methodology this year. Because many consumers rave about the service they get from smaller companies, Business Week lowered the revenue bar for companies on the list to $1 billion from the $1.5 billion mark set last year. Last year they subtracted an additional 50 points from the bottom player in each industry; they did not apply that penalty this year. Finally, to recognize companies that did particularly well in the reader poll, they awarded an extra 25 points to those whose vote-to-complaint ratios were in the top 10%.

Below is the Service Champs listing with a short explanation from BusinessWeek of the key successes that contributed to the companies ranking.

	Brand	People Grade	Process Grade	Service Index	Recommend Brand (%)	Repurchase (%)	Industry
RANK
1	USAA	A+	A+	1030.66	76.39	85.54	Insurance
This insurance and financial services provider for military personnel and their families tops the list for the second time. That doesn’t come from resting on its laurels: In 2007, USAA put 12,400 “member service representatives” through 250,000 total hours of classes to reinforce basic training.
2	L.L. BEAN	A+	A+	1014.62	47.47	36.96	Online/Catalog Retail
Being private has its advantages. The outdoor-goods and clothing retailer bulked up inventories this past holiday season by 4% to 5%, taking the risk of investing extra to have the most popular products on hand. The result: Fewer customer complaints, which leads to happier call center workers. Some 45% of seasonal reps return each year.
3	FAIRMONT HOTELS & RESORTS	A+	A+	1007.68	22.81	16.62	Hotels
To familiarize its new housekeepers, bellhops, and desk clerks with guest expectations, Fairmont gives new employees a taste of luxury. During or just following orientation, new staffers have been known to have their cars valet parked, get spa treatments, or receive a free golf lesson from the hotel’s pro.
4	LEXUS	A+	A+	994.51	57.74	34.52	Auto
For years, Lexus’ profitable dealers have paid for some post-warranty repairs to keep loyal customers happy. But the company wants to take its outreach further. Last year, Lexus.com set up a live chat room to handle queries from possible buyers, complaints from customers, and even address auto service issues.
5	TRADER JOE’S	A	A	965.67	78.10	64.71	Supermarkets
In a current radio ad, Trader Joe’s CEO Dan Bain pokes fun at other supermarkets that have flat-screen TVs. His customers can entertain themselves by “actually talking” to employees, he says. Since its founding in 1967, the chain has sought to pay workers at least equal to the average community income, or about $48,000.
6	STARBUCKS	A	A	964.03	60.40	57.28	Restaurants
Howard Schultz is back as CEO, and has made the chain’s customer service his No. 1 priority. On Jan. 30 he announced changes both small (getting rid of breakfast sandwiches) and large (appointing a new “Chief Creative Officer” to focus on the customer experience).
7	JETBLUE AIRWAYS	A	A-	958.00	71.38	60.78	Airlines
After a weather-induced operational snarl last year, JetBlue bounced back onto the list, though with slightly lower scores. It launched a customer “bill of rights,” doling out vouchers for delays or cancellations. Its new terminal at its JFK hub, to be completed in late 2008, will include more than 100 e-ticket kiosks, 20 security lanes, and free Wi-Fi for customers.
8	EDWARD JONES	A+	A	952.55	57.62	n/a	Brokerage
At its annual spring company meeting, Edward Jones added a new honor in 2007 for branch administrators who excelled at customer service. Based on feedback from more than 330,000 households, the company’s top 300 performers met a few months later to swap strategies, which are now being taught in training.
9	LANDS’ END	A+	A-	945.62	59.00	42.00	Online/Catalog Retail
The brand, which was acquired by Sears in 2002, doubled its shops in Sears stores in 2007, adding in-store monogramming and extra kiosks that give shoppers access to the Lands’ End Web site. It even lets customers bring back merchandise that’s 20 years old.
10	ACE HARDWARE	A	A	941.98	58.32	52.10	Home Improvement/Big Box Retail
Customers dissatisfied with the big-box home improvement experience still have the “helpful hardware folks” at Ace. By the end of 2008, every employee will carry a “skill matrix,” a wallet card that lists each staff member’s expertise so they can quickly connect customers to the right expert.
11	LINCOLN	A+	A+	922.34	49.96	33.45	Auto
A design dry spell for Ford’s Lincoln-Mercury cars over the last decade prompted dealers to ramp up customer service. Now that Ford is again offering stylish cars, those service efforts should pay off. Ford’s new marketing chief, James Farley, who ran both Lexus and Scion, says he studied Lincoln dealers in his old job.
12	THE RITZ-CARLTON	A+	A+	915.15	52.07	31.76	Hotels
To motivate the troops, this upscale hotelier shares “wow stories” at meetings each week that relay guests’ tales of staff members going above and beyond the call of duty. Each “Wow” winner, such as a laundry attendant who dove into a dumpster to retrieve one young guest’s stuffed gingerbread man, gets $100.
13	AMICA	A+	A+	912.74	63.47	71.88	Insurance
This 100-year-old insurance company believes loyal employees create loyal policyholders, and nearly one in four workers has been with Amica for 20 years or more. If a customer calls their local branch and the staff is busy, the call gets transferred to an agent at one of 38 other offices.
14	ENTERPRISE RENT-A-CAR	B+	B+	912.10	40.99	40.05	Rental Cars
Enterprise’s parent company patented a software program last year that helps it communicate with insurance companies and body shops. As a result, customers get their cars back two days quicker, on average. To amp up loyalty in the newly acquired Alamo and National brands, Enterprise features workers in the employee newsletter who are promoted from one brand to another.
15	PUBLIX SUPER MARKETS	A-	A	908.51	60.42	57.29	Supermarkets
This privately owned grocery chain has rolled out several new programs in the past year to help customers cook faster. It’s piloting a special section in a Jacksonville (Fla.) store where shoppers select one of 14 premade meals online or by phone. When they get to the store, the meal components, set aside in the proper amounts, are ready to pick up.
16	NORDSTROM	B-	B-	900.50	45.05	34.82	Department Stores
In 2007, the department store chain doubled the size of its in-house call center and will increase headcount by 500 in the next decade. Thanks to a new onscreen inventory view being rolled out in 2008, employees will be able to see how many size 6 cocktail dresses are in the store across town or in the warehouse.
17	SOUTHWEST AIRLINES	B+	B	883.98	50.73	48.11	Airlines
When Southwest made big changes to its quirky boarding process last year, giving priority to passengers who pay higher fares and no longer automatically letting families with young kids board first, upset passengers erupted on its blog. To help customers adjust, more than 1,000 employees volunteered to work shifts at airport gates.
18	WACHOVIA	B-	B	881.36	34.06	37.11	Banking
CEO Ken Thompson convenes his top 20 execs every month to review each department’s customer-service scores-and to hear plans to fix any problems. A bank-wide recognition program rewards employees who deliver exceptional customer service with everything from certificates to cash drawings.
19	SMITH BARNEY	A+	B	881.31	45.67	37.97	Brokerage
To free up advisers and branch staff to interact with customers, Smith Barney set up a “field services” unit in 2007. Now when a financial advisor has a tricky question, they have one number to call instead of 35, and the 130-person unit tracks down an answer.
20	CADILLAC	A+	A+	871.53	47.27	31.09	Auto
Cadillac guarantees its customers a car to borrow while theirs is in the shop. General Motors has also begun to pay up for more repair work on cars just past their warranty. Cadillac’s data system tracks repeat complaints from customers to help it identify dealerships or individual technicians who aren’t fixing problems.
21	APPLE	C+	B	870.38	60.40	54.74	Computers
Apple’s “genius bars” and onshore call centers help its customer service rise above its peers. While its scores dipped slightly on the University of Michigan’s American Customer Satisfaction Index last year, Apple is continually taking steps to improve. It opens a new call center every two months, and is adding more personnel to its retail outlets.
22	CHICK-FIL-A	A-	B+	866.26	65.05	50.00	Restaurants
This Atlanta-based chain has redefined the fast-food experience, putting a premium on service. Chick-fil-A promotes the “family” dynamic: Its restaurants close on Sundays to give workers a day of worship. And each month, CEO Dan Cathy flies in new store managers, all of whom are vetted for a full year before being selected, and cooks dinner for them.
23	AMAZON.COM	A	A	862.06	66.67	66.07	Online/Catalog Retail
Amazon.com CEO Jeff Bezos puts improving the customer’s experience ahead of near-term profits. Rather than spend on TV ads, he plows Amazon’s marketing budget into free shipping on orders over $25. That resulted in a shipping loss last year, but it also helped recharge sales, which grew 42% in the recent holiday quarter while profits more than doubled.
24	JW MARRIOTT HOTELS & RESORTS	A+	A+	858.18	52.57	44.57	Hotels
To help Marriott’s increasing number of Spanish-speaking employees, many of whom are housekeepers, brush up on their English, Marriott rolled out portable English language devices last year. Smaller than a laptop, the machine teaches hospitality phrases, such as directions to the elevator or the lobby.
25	TRUE VALUE	B+	B+	857.21	46.31	38.92	Home Improvement/Big Box Retail
Because half of its customers are women, this hardware retailer is remodeling many of its stores to be more female-friendly. Among the changes: moving gardening items to the front of the store and offering a wider selection of paint and bath fixtures. Average transaction size has increased by double digits in the remodeled stores.
26	HERTZ	B	B+	851.54	37.33	43.36	Rental Cars
To cater to its road warriors, Hertz is rolling out self-serve kiosks so that customers can pick up their rental in the same way they print up their airline boarding passes. The company is also working on a system using RFID technology so customers in a rush can drop off cars without having to wait for an agent. To compete with the likes of Zipcar, Hertz introduced hourly car rentals in 2007.
27	T-MOBILE	C	C-	842.74	32.43	35.10	Wireless Providers
This repeated winner in the wireless category requires each executive to spend time in the stores during the busy holiday season. The company’s sales and customer service chief, Sue Nokes, started out as a call center representative.
28	VANGUARD	A	B+	828.83	57.54	56.52	Brokerage
Mutual fund giant Vanguard Group is sticking to its strengths to keep customers happy. Known for its low-cost index funds, Vanguard last year slashed prices for equity trades and financial planning assistance for customers with at least $100,000 at the firm. It also created a dedicated service team to aid those heavy hitters when they called.
29	ERIE INSURANCE	A	B+	824.29	48.87	56.83	Insurance
Policyholders rave about the insurance company’s convenient and timely billing process as well as its knowledgeable, friendly, and accessible insurance agents. Erie gets high customer satisfaction marks-well above the industry average-for its auto and homeowners’ insurance products.
30	NATIONAL CITY	C+	B-	823.46	39.91	42.97	Banking
National City has improved its rate of creating loyal customers that recommend the bank to others. It’s doing this in part by a rewards program that is adding members at a 12% growth rate vs. the industry’s 7%. The bank also tends to have higher usage at all of its outlets-from Internet to branches-even though it has fewer outposts than rivals.
31	JAGUAR	A+	A+	813.03	49.80	30.84	Auto
Jaguar dealers tend to have a leg up on others in satisfaction scores because of its devoted customers. Still, improvements in Jaguar quality have made it easier for dealers to take care of customers with prompt service appointments, loaner cars and the like. The question: whether they can maintain standards under a new owner in 2008, as Ford is in process of selling the British brand.
32	BUICK	A+	A+	810.44	39.79	25.57	Auto
Buick has boasted good quality for years, keeping customers happy. Surveys show, however, that the brand’s older buyers tend to be less discriminating.
33	WHOLE FOODS MARKET	B	A-	809.29	63.11	57.43	Supermarkets
Whole Foods hires skilled butchers, bakers, fishmongers, and cheese artisans, and then gives them an enormous amount of say in how the store is ru?team members have a “hiring vote” to choose new recruits, and annual salaries of all employees are disclosed to employees. The thinking behind this kind of transparency is that it creates a culture of trust and openness, which leads to happy employees who deliver great service.
34	BMW	A	A	809.28	53.24	35.87	Auto
BMW provides free maintenance for four years, plus it has a program of dropping meaningful customer-communications gifts and DVDs on its owners the first three years after purchase. Strong quality scores make service easier to manage for dealers, as well.
35	SATURN	A+	A+	805.55	42.80	20.74	Auto
Saturn’s no-haggle selling creates a customer-friendly environment in the showroom and the service bay. The company’s Web site also has customer service employees working a 24/7 chat room to answer questions from customers.
36	FRONTIER AIRLINES	B+	B	804.66	48.89	45.19	Airlines
In an age when seemingly no flight arrives on time, the Denver-based airline landed 79% of its flights on schedule in 2007, finishing fourth in recently released government figures, defeating industry giants like United, American, and Delta. Not only is the airline punctual; they guarantee that they can offer the cheapest fares. Find a cheaper Frontier flight on another Web site? They’ll give you 2,500 free miles.
37	PORSCHE	A+	A+	803.79	49.58	33.33	Auto
Porsche dealers have been upgrading dealership facilities, and they maintain strict standards of customer care. For example, loaner vehicles for Porsche owners getting their cars repaired are always Porsches-not cheap or not-so-chic rental cars.
38	INFINITI	A+	A+	801.09	42.72	27.64	Auto
Nissan’s luxury brand gives its buyers longer warranties of four years and 60,000 miles, compared with three years and 36,000 miles for Nissan brand cars. The brand’s Total Ownership Experience plan gives guaranteed loaner cars during repairs, free 24-hour roadside assistance and, if something goes wrong during a trip, Infiniti guarantees a car, lodging, and meals.
39	NEIMAN MARCUS	C	C+	799.47	39.91	32.43	Department Stores
Job applicants are tested for aptitude in dealing with people, and then receive 160 hours of training, so they know how to develop customer relationships and understand the designer goods the 40-store chain sells. In recent years, this luxury retailer has started to recruit at top universities to increase the caliber of its associates.
40	RENAISSANCE HOTELS & RESORTS	A+	A+	798.69	47.91	32.18	Hotels
Marriott International’s upscale hotel brand gets above-average marks from customers compared with the competition in the upscale category for its Web site and online reservation system. Guests find the hotel’s Web site to be full of useful information and easy to navigate.
41	FOUR SEASONS HOTELS AND RESORTS	A+	A	797.54	51.32	37.31	Hotels
Despite its terrific employee perks, including free meals in the hotel cafeteria and three free nights per year at any Four Seasons property, this upscale hotelier slipped this year in BusinessWeek’s customer service ranking. While the percentage of guests who experienced problems at Four Seasons increased from 2% to 4% in 2007, the hotel still did significantly better than the luxury segment average of 6%.
42	WINDSTREAM COMMUNCATIONS	C-	D	795.79	27.29	40.15	Telecommunications
Windstream, the rural phone company created after Alltel spun it off from its wireless business in July, 2006, recently consolidated its wireline reps in larger customer service centers in Charlotte, N.C. and Cornelia, Ga. Though the telco still gets its share of complaints, the move helped to standardize service. Increases in training and monitoring help reps resolve issues-complaints, scheduling, troubleshooting-on the first call.
43	PONTIAC	A	A+	795.49	40.15	20.38	Auto
Like GM’s other brands, Pontiac has become more lenient with caring for customers after their warranty is up. Onstar’s diagnostic system tells owners when their car needs service in some models.
44	LOWE’S	B-	B+	792.71	56.74	55.19	Home Improvement/Big Box Retail
Thanks to extensive customer research, Lowe’s realized long ago-and well before Home Depot and other rivals-that 80% of home-improvement decisions were made not by men, but their wives. So Lowe’s made its stores cleaner and brighter and stocked it full of designer goods from the likes of Laura Ashley and Michael Graves. Lowe’s also employs a higher proportion of full-time workers than Home Depot, betting that their institutional knowledge offsets the added costs.
45	HONDA	A	A+	792.27	55.52	32.31	Auto
Honda has routinely high quality ratings, which helps service departments to operate efficiently. Having the highest fuel economy in the industry burnishes customer opinion of the brand. And sales and service people are rewarded for exceeding satisfaction standards.
46	HUMMER	A	A	788.55	51.01	27.81	Auto
When GM launched the brand in 2000, it granted the franchise to some of its best dealers. As a result, customer service is in its DNA. Giving free loaners to customers keep them happy when things go wrong.
47	FORD	A	A+	788.26	41.59	28.02	Auto
The struggling carmaker has been improving quality and has extended warranties on some new models like the Focus. With market share falling, many dealers have been adding service niceties-free loaner cars, online service booking, and ride-and-pickup service-usually reserved for premium car brands in hopes of keeping owners, especially pickup truck buyers, coming back.
48	EMBASSY SUITES HOTELS	A-	A+	786.32	49.95	40.51	Hotels
Embassy Suites received best in class scores from customers for its business center. Open 24/7, each property has a minimum of two computers with high-speed Internet, photocopy machines, laser printers, and standard office software. The upscale brand owned by Hilton also offers nutrition, sleep, and exercise tips to minimize the wear and tear resulting from frequent travel.
49	W HOTELS	A	A	786.27	46.83	35.61	Hotels
The stylish hotel chain gets kudos from customers for its customized perks such as “baby me” packages for expectant parents, which include a “womb service” menu with such delicacies as pickles and ice cream. Feline lovers get baskets of cat toys and treats at check-in, and they can request litter boxes.
50	TOYOTA	A	A	785.97	51.95	31.17	Auto
With sales in the U.S. slowing, Toyota is polishing its customer service routines in fast-growing markets. In China, it has rolled out sophisticated dealership software that monitors sales peoples’ every contact with customers. The best performers are then used as role models for other staffers. To ease customer concerns over counterfeit parts-a big issue in China-Toyota has installed glass windows overlooking repair shops.

WASHINGTON, May 29, 2008 – The World Bank Group announced today it would support global efforts to overcome the global food crisis with a new $1.2 billion rapid financing facility to address immediate needs, including $200 million in grants targeted at the vulnerable in the world’s poorest countries.

Announcing several measures to address immediate to longer-term food challenges, the World Bank Group said it would boost its overall support for global agriculture and food to $6 billion next year up from $4 billion, and would launch risk management tools, and crop insurance to protect poor countries and small-holders.

“As we go into the Rome meeting next week, it is crucial that we focus on specific action. Along with our partners, these initiatives will help address the immediate danger of hunger and malnutrition for the two billion people struggling to survive in the face of rising food prices, and contribute to a longer-term solution that must involve many countries and institutions,” said World Bank Group President Robert B. Zoellick.

Grants for Djibouti ($5 million), Haiti ($10 million), and Liberia ($10 million) are being approved today. Over the coming month, the World Bank expects to provide grant support to Togo, Yemen and Tajikistan. These countries have been identified as high priority based on rapid needs assessments undertaken in the field with the World Food Program, the Food and Agriculture Organization, and the International Fund for Agricultural Development. Rapid needs assessments have now been completed in more than 25 countries, with another 15 ongoing.

The $1.2 billion facility, which is designed to address immediate needs, supports safety net programs such as food for work, conditional cash transfers, and school feeding programs for the most vulnerable. It provides support for food production – this year and beyond – by supplying seeds and fertilizer, improving irrigation for small-scale farmers, and providing budget support to offset tariff reductions for food and other unexpected costs.

As part of the new facility the World Bank is also establishing a Multi-Donor Trust Fund to facilitate policy and operational co-ordination among donors, and leverage financial support for the rapid delivery of seeds and fertilizer to small farmers for the upcoming planting season.

The new rapid response facility stands alongside other efforts by the World Bank Group to address the global food crisis. The World Bank Board of Executive Directors is considering initiatives to provide risk management tools to poor countries faced by drought and other catastrophes.

“We’re working with our Board to deploy index-related hedges and insurance products to protect poor farmers and countries from weather and supply shocks,” said Zoellick.

Under a proposal being discussed by the Bank’s Board in June, Malawi could be the first of several countries to use the World Bank as an intermediary to access weather derivatives. Should Malawi suffer a drought, then it would be protected against a rise in the price of imported maize. IFC, the World Bank Group member that promotes private sector investment, is proposing to support crop and livestock insurance for small-holders in developing countries.