Shopping around for a new, helpful image

IT REFUSED to accept credit cards, was among the last shops to develop a fully functional website and did not open on Mondays, let alone Sundays. So how did John Lewis – a company run explicitly for the benefit of its own staff rather than customers – become a byword for good service?

The managing director of First ScotRail wants her staff to emulate employees of the department store by developing a "nothing is too much trouble" attitude to passengers.

But her call for the unionised railway to adopt the attitudes found on the shop floor prompted a snort of derision yesterday from RMT's Scottish organiser Phil McGarry. "The way to improve Scotland's railway is to return it to public ownership rather than comparing it to going shopping," he said.

But while the union dream of state-controlled railways is not coming true, the issue of ownership is exactly what lies between Mary Grant's ambition and the everyday reality experience by thousands of her passengers. John Lewis is Britain's biggest co-operative, with everyone from part-time shop workers up to senior managers sharing in the profits of the business. "Shared ownership is one of the biggest reasons for the success of John Lewis because it encourages the company to invest very heavily in staff training and development in a way that isn't always possible in companies," says Paul Freathy, professor of retail management at the University of Stirling.

But is John Lewis really a benchmark for service? And should a state-subsidised railway providing a universal social service be apeing an exclusive department store? For many First ScotRail passengers, smarting from a round of above-inflation fare increases, the only similarity to John Lewis is in the form of high prices.

The co-operative, which includes supermarket chain Waitrose, has been voted Britain's best shop by consumer organisation Which? for three successive years. "If you ask shoppers to name a brand that gives good service they almost always come back with John Lewis," says Jeremy Michael, commercial manager of Retail Eyes, a firm which helps shops to raise their game on the High Street. "That sort of reputation takes a long time to achieve."

So what's the secret? "If you search on the internet about customer service you will find thousands of consultants claiming to have the answer to that," says Andrew Murphy, the ambitious managing director of John Lewis in Aberdeen and Edinburgh. "Too many firms think customer service is some kind of black art. In reality, we don't do anything particularly grand or make any bold claims. We just deal with customers as individuals and try to ensure that they have peace of mind.

"Customers tend to see us as a place where nothing bad happens. Even though our preference is to get it right first time, a lot of effort goes into making sure we can eventually find a way of giving customers the outcome they expected. It takes a lot of time, effort and money."

Can First ScotRail hope to match the standards of High Street retailers? "Only if frontline staff understand how important they are to the business," says Mr Michael. "Customers don't see what the MD is trying to do, they see what the staff in front of them are actually doing. It has to work at every level of the company."

Mr Murphy adds: "Customers think in terms of outcomes, but sometimes retailers only look to provide what they are comfortable with. If I want to get from Linlithgow to Aberdeen, my desired outcome would be to get on a train where I can find a seat, get on with some work and maybe also get a cup of tea. But a ticket to Aberdeen doesn't guarantee any of that. You have to be willing to at least meet customers half way in crossing that gap."

Prof Freathy says: "Most shops have a highly centralised system of control whereby policies and standards are decided at head office and branches follow the rules. If customers aren't getting what they want, there is a gap between conception and execution.

"John Lewis gives a lot of autonomy to individual stores, each of which has a managing director and a customer service manager."

In an age where working in a shop is not widely seen as a desirable choice of career, John Lewis has also seized the initiative. Staff retention at the Edinburgh store is 83 per cent, almost double the industry average, and there is a busy timetable of social activities – "partner events" in the company lingo – to encourage workers to consider John Lewis as more than just a shop. "You can't do that in isolation," says Mr Murphy. "There is no point in having an after-work party if everyone hates each other. You have to create a business where the partners actually see that this is somewhere they see themselves for the long term and where they want to contribute. You think 'what is the purpose of your working life' and realise that satisfaction doesn't always come from money and that not everything can be solved simply by raising salaries. Our longest-serving partner has been with the company for 46 years."

John Lewis staff have enjoyed handsome bonuses in recent years, including a lump sum of up to 20 per cent in March. First ScotRail is unlikely to match this largesse. "There is a share option scheme," says Mr McGarry. "But what most workers prefer is to have a greater share of the enormous profits."

John Lewis

JOB TITLE: Partner

SALARY: £16,200 (shop-floor staff)

BONUS (2008): 20 per cent of salary (approximately £3,200)

HOURS: 36.75 hours a week

TRAINING: Three months

AVERAGE AGE: 42

SEX: Two-thirds female

BENEFITS: Include non-contributory final- salary pension scheme, subsidised canteen, leisure facilities and theatre/concert tickets

STAFF DISCOUNTS: 25 per cent off most John Lewis and Waitrose products after one year's service

HOLIDAYS: Four weeks a year, five weeks after three years

First ScotRail

JOB TITLE: Conductor

SALARY: £22,634

BONUS: Commission of 5 per cent on tickets sales

HOURS: 35 hours a week

TRAINING: Six months

AVERAGE AGE: 41

SEX: Four-fifths are male

BENEFITS: Include contributory final-salary pension scheme, company share schemes, travel offers, childcare vouchers, company sick pay scheme after six months

STAFF DISCOUNTS: Free rail travel for the employee and his or her family; discounts on other products and activities

HOLIDAYS: 32 days a year – 22 annual leave, plus ten bank and public holidays