Suppose you go to the restaurant. You have been served real lousy food, so you are obviously pissed off.
You escalate it to the manager and complain loudly about it. Manager quickly rushes to the kitchen and brings you a freshly cooked dish. You are happy now and almost forget about it. So is everyone who is involved in that incident – manager, cook and waiter alike.
Most organizations work in exact same fashion. They treat customer/employee grievances as one-off incident and ‘get done’ with it. They focus so much on solving that ‘one’ incident.
Thats where they err in understanding customer behaviour. In competitive marketplace, your customer (whether internal or external) are not obliged to provide a feedback about your product or service.
So, how would you treat someone who is making an effort to provide you the feedback he is not obliged to do?
Treating it as ‘one-off’ incident or blaming it on lousy customer/employee behaviour is the main reason why escalation do not work.
Getting back to example of the restaurant, there might be so many customers who will simply walk out without complaining and never come back again. So, first thing organization should do is to thank those who provide feedback and improve your processes so that it does not occur again.
If it requires firing a chef for lousy food, so be it.