Do You Run Your Business by Wisdom Or Policy? Rules - For the Exception and the Rule

We are a society of rules. Think about it. We haveunworn clothes. "You don't make policy based on ten
rules for everything from how we tip to how we arepercent," he was quoted as saying. "You make policies
legally able to spy in the NFL. It is not against the "rules"based on the 90%."
to spy, you just have to follow the rules for when andThis story, which has circulated since the mid 70's, long
how to spy. Have you thought about how and whybefore the Internet added to its viral telling and re-telling,
rules are made? How and why do we amend rules?captured an essence of what it takes to build and
Look for the measurable, observable evidence thatmaintain a brand. You make policy based on the
either supports your rule or provides evidence tomajority not the minority.
change the policy. When is a rule a rule and when is itYour customers, clients, patients, guests, and members
a policy? Webster defines a rule as a prescribed guidefeel the same way. Imagine a world where companies
for conduct or action. Interestingly, policy is defined ascreated a culture around the many. Look at your rules
prudence or wisdom in the management of affairs.or policies for how people do business with you. Are
Imagine a world where wisdom was used in thethey rules based on a prescribed conduct or do you
management of our professional and personal lives? Ahave policy based on wisdom? Are your rules/policy
client told me what he learned about wisdom at adriven by the 10% that try to ruin it for the rest of us?
YPO meeting in Cleveland Ohio. The true story madeOr have you positioned yourself like Nordstrom and
me re-think rules and it may prompt you to rethink yourcreated policies around the 90%?
policies also.I used to show horses. Only when the competition
Bruce Nordstrom, grandson of Nordstrom's founder,was over could participants approach the judges and
addressed the members of the Young Presidentsask for the judge's input. Their observations could only
Organization a few years ago. After he spoke, one ofbe used for the next horse show.
the young lions asked a question. Probably a questionI was always the first in line to ask a question. I wanted
on most of our minds as we shop at any Nordstromto know why I did or didn't win and what the judges
anywhere. Someone asked him if people tooksaw from the center of the horse show ring.
advantage of Nordstrom's famous return policy.Sometimes they would remember, or after refreshing
You've all heard the story about the customer whotheir notes they might have a specific comment. If one
returned tires to a Nordstrom's location and they didn'tjudge told me something, I would listen but I would
even sell tires. As urban legend tells the story, theprobably not make a change. I was listening for
associate gave the customer a refund. Accounts varypatterns that I couldn't ignore. If I heard the same
that the refund was from $25 to $145.comment from different judges or multiple times then I
"Yes", he replied, "there are some people that takeknew that was an area I needed to address.
advantage."Listen, look, and learn from your patterns. Do you have
He went on to say that only about ten percent of theira pattern of making policy or rules? Does your pattern
customers took advantage of the Nordstrom liberalreflect the minority or the majority? Are you using your
return policy. Customers returning items are not90% to capture an essence of what it takes to build
challenged to produce receipts, sales tags, or evenand maintain a brand?