In economics, the agency problem refers to when a business owner (principal) hires an employee (agent), he or she is in constant conflict between acting in the best interest of themselves or the principal. It can never be solved completely, because people always act in their own interest. For an example, a sales agent of a company who gets commissions on credit sales will be tempted to make sales that won’t necessarily be easy for the company to collect. The agent will always just try to make the most commission. When applied to the subject matter discussed above, you are the agent of your business. Your business is the principle hoping you will act on its best interest. While this cannot be achieved 100%, being aware of this conflict enables you to mitigate the issue as much as possible. This type of conflict of self-interest can bee seen in many instances of life.
A similar problem exists/ there is a conflict between you and your business. Here, you are the agent and your business is the principle. Essentially, your business has hired you to work for it. Imagine you created a start-up where you are the only employee. What will be your start-up be about? Would it offer a service or a product? What will your name it? How would you reach customers? What price? What kind of design?
Need a new logo for the business? Don’t pick the one YOU like – the one that will get YOU the most reactions when you show it off to your friends on social media. Pick the one that is in the best interest of your business. Now, how do you do that? After all, you’re the only employee and you only have your own judgment to decide what is best. That’s where customer obsession comes in.