C-level or bust!

As we reflect on the importance of customer service in the current economic client, I recently read a blog by Management Consultant John Maven (ex P&G, Clorox) about the core competencies of the CEO. You can read the full post here, but I thought it was interesting that he felt that of the 10 competencies, 3 of them were linked to the customer-focus of the organization. He writes;

Vision - The CEO, possibly with the help of his executive team, creates and communicates a compelling and inspired sense of core purpose. This is based on the vision of the future, not the reality of today.

Culture – The CEO is responsible for creating and maintaining the desired culture and environment. If vision is where the company is going, culture and values tell how the company gets there. Values outline acceptable behavior. Work gets done through people, and people are profoundly affected by culture. Culture is built in many ways, and the CEO sets the tone. His every action—or inaction—sends cultural messages.

Customer focus - CEOs have a clear understanding of customers' needs, preferences, interests, timelines and decision-making criteria. Focusing on meeting those needs and doing so profitably means success for both the company and the customer. Long-term customer satisfaction builds loyal, repeat customers

Yet in spite of the fact that everyone is talking about it, we seem to constantly struggle with getting it right. I maintain that it is because too many CEO's do not have competencies in the area of customer-focus as demonstrated by the poor service we receive and the opportunities that abound even in these economic conditions for those who do.

So let's make sure we have the direct endorsement of the C-level if we expect a true customer-focus.

Cheers!

Bill's passion is improving business results by working with leadership teams to change employee behaviours. He does this by equipping leaders with the principles, processes and tools to cultivate an engaged customer-focused culture.

As well, he is a dynamic, results-oriented speaker on the importance of a customer-focused culture, either as a guest speaker or acting as a facilitator of a group discussion/workshop.

For more information please contact (905) 841-3191
Email: bill@billhogg.ca, Web: http://www.billhogg.ca/

No need for cutbacks in Employee Engagement

The 2008 Hewitt Best Employers in Australia and New Zealand were announced recently and there were a couple insights worth mentioning.

Not surprisingly study insights show a clear link between levels of employee engagement and virtually every measure of company performance. For example, Best Employers generated an average of 1-1/2 times more revenue and 2-1/2 times more profit per employee than the lower ranked organisations.

According to David Brown, market manager of Hewitt Australia and New Zealand: "The factors that drive employee engagement are a direct reflection on our changing social landscape. There are some universal factors that we see coming up again and again from year to year, such as;

• career opportunities,
• recognition for work successes, and
• feeling that one's work makes a contribution.

However this year, three new factors emerged;

• building a company culture that fosters productivity by 'walking the talk' and having company values that align with employees' personal values;
• having middle managers who understand and support business strategies; and
• building a diverse workforce."

The best part is that these drivers of employee engagement do not come with a hefty price tag, but help companies improve business results and offset numerous issues that have very significant costs (i.e. unplanned absenteeism, reduction in productivity, staff morale, lost management/employee time, resignations and labour replacement costs).

Given the current economic climate, no company can absorb these additional costs as a result of cuts that negatively impact employee engagement.

Cheers!

Bill's passion is improving business results by working with leadership teams to change employee behaviours. He does this by equipping leaders with the principles, processes and tools to cultivate an engaged customer-focused culture.

As well, he is a dynamic, results-oriented speaker on the importance of a customer-focused culture, either as a guest speaker or acting as a facilitator of a group discussion/workshop.

For more information please contact (905) 841-3191
Email: bill@billhogg.ca, Web: http://www.billhogg.ca/

Engaging Employees

The Hay Group, a global HR management consulting firm, recently surveyed 500,000 employees from 300 companies to assess the satisfaction levels of “committed” employees -- those who said they would stay with their company for at least five years compared to those who would leave after one year. They discovered that of the fifty influencing factors, pay was ranked the lowest.

There is little doubt that in many industry sectors salary plays a significant role in attracting quality job candidates. However, what many of us really seek is validation for our work. “Show me my contribution matters to the organization” rather than “show me the money” is the underlying message that employers should focus on.

But how does a company demonstrate validation? Some things for consideration are;

1. Offer interesting and varied work assignments
2. Have a clear growth path and incorporate on-going training & development
3. Provide tasks and projects that stimulate interest and give people the tools, processes and support needed to thrive and succeed, while being challenged
4. Formally and informally acknowledge your employees’ contribution to you and your organization
5. Actively solicit on-going feedback
6. Express genuine and specific appreciation for a job well done in a timely manner
   

Let me know if you have some success stories you would like to share.

Cheers!

Bill's passion is branded customer service that exceeds expectations. He works with clients to activate a “customer-focused” culture where engaged employees internalize the brand promise and deliver an intentional Branded Customer Experience -- internally and externally.

As well, he is a dynamic, results-oriented speaker on the importance of a customer-focused culture, either as a guest speaker or acting as a facilitator of a group discussion/workshop.

For more information please contact (905) 841-3191
Email: bill@billhogg.ca, Web: http://www.billhogg.ca/

How to achieve the ultimate customer-focused company

Last May, Ranjay Gulati (Michael Ludwig Nemmers Distinguished Professor of Strategy and Organizations at Northwestern University’s Kellogg School of Management), wrote an article for the Harvard Business Review entitled “Silo Busting: How to Execute on the Promise of Customer Focus”. Gulati’s main point was that while many companies claim to be focused on their customers, they are unable to deliver on these promises within their current company culture. His basis for this argument is that companies continue to focus on their own needs versus the customer needs.

Gulati identified four values that companies must adopt in order to successfully be customer-focused. These are coordination, cooperation, capability and connection.

Coordination: Most companies are organized around a specific function, product or geographical location. However, customers don’t think that way, and often the solutions they need do not fit within those boundaries. Gulati suggests that companies need to create processes or mechanisms that break these divisions - or silos - so that the customer gets the benefit of the entire company.

Cooperation: Here the focus is two-fold. Separate business units need to cooperate to support each other’s activities to achieve measurable customer satisfaction, and employees who are closest to customers need the authority to make decisions that benefit the customer. This kind of cooperation ensures the customer always comes first.

Capability: According to Gulati, companies need more “generalists”. These are described as employees who “have experience in several products or services and a deep knowledge of customer needs” as well as having the skill and flexibility to cross organizational boundaries. These people see the big picture and resultant are able to produce tailored solutions that meet customer needs.

Connection: Gulati’s research supports aligning with suppliers and partners. The rationale is that it support better solutions for the customer as well as provide cost-cutting opportunities.

Gulati’s four “C’s” make sense, as they provide companies with a process map that focuses on the customer. Interesting to note, everything still focuses on the big “C” -- the customer.

Cheers!

Bill's passion is branded customer service that exceeds expectations. He works with clients to activate a “customer-focused” culture where engaged employees internalize the brand promise and deliver an intentional Branded Customer Experience -- internally and externally.

As well, he is a dynamic, results-oriented speaker on the importance of a customer-focused culture, either as a guest speaker or acting as a facilitator of a group discussion/workshop.

For more information please contact (905) 841-3191
Email: bill@billhogg.ca, Web: http://www.billhogg.ca/

Employee Engagement vs. Customer-Focus

Like many of you, I have Google Alerts update me on new posts, news and information about customer service. I am delighted to see that customer-focus is being discussed in many non customer service blogs -- project management, HR, Brand Management, Marketing etc.

I see this as a good sign that the importance of customer service is being recognized in all aspects of business.

In a recent post on Product Management Tips, I spotted an interesting post that discussed the order of importance between customer, employee and competitor. An argument could be made for a number of orders, but I agree with the moderator that the order should be employee, customer and finally competition.

I tell my clients that customer-focus should be an outcome -- not a goal. The goal is employee engagement, if we achieve that goal, then customer service will follow and resultant we will have a competitive advantage.

However, be careful that just because you are employee focused that your processes don't become organizational-focused versus customer-focused -- that is an easy trap to fall into.

When you talk about customer focus in your organization, do you consider it a goal or an outcome? How would this change the way you did things?

Let me know.

Cheers!

Bill's passion is branded customer service that exceeds expectations. He works with clients to activate a “customer-focused” culture where engaged employees internalize the brand promise and deliver an intentional Branded Customer Experience -- internally and externally.

As well, he is a dynamic, results-oriented speaker on the importance of a customer-focused culture, either as a guest speaker or acting as a facilitator of a group discussion/workshop.

For more information please contact (905) 841-3191
Email: bill@billhogg.ca, Web: http://www.billhogg.ca/

Have you identified your employees as a key target audience?

Much has been written about the need for communicating with employees.

People are often put in charge of internal communications and spend their time creating newsletters and memos that get sent far and wide informing folks about what is going on in the organization. Often we designate the employees as one of our key target audiences or stakeholder in our planning documents. This is all a good thing.

However, being the provocative person that I am, I have to ask, “Is that really what you want to do?”

I would suggest that communicating usually means creating and delivering messages to an audience. Further, I would suggest that what you really want to do is facilitate a conversation or a dialogue with your employee community.

For many, you are probably saying, “That’s just semantics -- that’s what we mean”, so let me ask, “Is that what is happening?” Are you facilitating a conversation? Do you have a process set up that stimulates a conversation or is your messaging primarily just being pushed out from the communications team?

That distinction is more than semantics. It is why organizations struggle - and often fail - to generate meaningful employee engagement. We get blinded by the belief that because we are actively communicating, we believe we are engaging employees in a conversation. Bottom line, if it isn't two-way, it isn't communication. It's simply message distribution.

Let me share how the internal newsletter we set up at ServiceOntario was envisioned. Rather than having someone in the Marketing team write the newsletter, they acted primarily as an Editor who worked with an Editorial Board who was responsible for generating the content. This Board was made up of writers from across all divisions in the organization. Level or function were not relevant, their only commonality was their interest in sharing what was happening in their areas of work. They also had pretty free rein on topics for publishing.

The Editor compiled their articles and reviewed them for general appropriateness, spelling, grammar, etc. They did not re-write the articles. The Editor also included news that was relevant to the organization on behalf of the organization.

Resultant we had a newsletter that reflected the wider organization while still containing important organizational communications/news. It was filled with topics (with lots of pictures) of things that were of interest to the people across the organization -- not just management.

The result? People looked forward to receiving and reading it each month. Plus, people saw demonstrated behaviour that management was interested in hearing from them -- a very important signal to the organization.

It wasn’t perfect, but it was a systematic approach to sharing information and gathering feedback/input. So ask yourself, is your internal communications really communicating -- or just delivering messages.

Something to think about.

Cheers!

Bill's passion is branded customer service that exceeds expectations. He works with clients to activate a “customer-focused” culture where engaged employees internalize the brand promise and deliver an intentional Branded Customer Experience -- internally and externally.

As well, he is a dynamic, results-oriented speaker on the importance of a customer-focused culture, either as a guest speaker or acting as a facilitator of a group discussion/workshop.

For more information please contact (905) 841-3191
Email: bill@billhogg.ca, Web: http://www.billhogg.ca/

Always go the extra mile

Recently MarketingProfs sent out a note about going the extra mile. In it they referenced an article (Giving Firms an 'E' for Effort: Consumer Responses to High-Effort Firms) by Andrea C. Morales, assistant professor of marketing at the Marshall School of Business, University of Southern California.

Their research indicated that customers reward companies that are seen to go the extra mile -- even if they don't personally benefit from that effort. In fact, customers are willing to pay more for a product, frequent one store rather than another, and, in general, have a more positive impression of a company or brand that is perceived to put in more effort.

Andrea's explanation is that customers recognize that effort is a controllable behaviour, and as a result, feels gratitude toward firms that work hard.

It reminds me of a review an advertising agency got from a client (our customer) where I worked many years ago. In that review the client was very critical of the creative product and lukewarm on the media and production. However, they were very positive about the account service team because, in their words, “we worked so damn hard”.

They acknowledged that they were not always getting the level of service they expected, but were willing to be somewhat forgiving because of the obvious effort their daily account team was expending on their account. They gave us time to address the issues while putting senior management on notice that something had to be done.

According to the researchers, customers can view a company's outstanding efforts as either general or personal.

• A company's actions are considered to be general when they benefit the universe of customers, such as creating new products
• However, a company’s actions are considered personal when the action is deemed to benefit a specific customer (such as outstanding customer service), even if they are not the customer receiving the benefit.

We all know that personal wins because of the emotional connection. However, the interesting notion is the halo effect created by doing a good deed for someone else. My sense is that it is driven by the belief that the company (or person) would do the same for us in a similar circumstance.

I think this concept applies to personal behaviour as well as company behaviour. So demonstrate you are making the effort even if you can’t satisfy your customers need. They will recognize your efforts and appreciate and reward you for your attempt.

Cheers!

Bill's passion is great customer service. He works with clients to help activate a “customer-focused” culture that helps employees embrace the brand promise and deliver an intentional Branded Customer Experience -- internally and externally.

As well, he is a very dynamic, results-oriented speaker on the importance of a customer-focused culture, either as a guest speaker or acting as a facilitator of a group discussion/workshop

For more information please contact (905) 841-3191
Email: bill@billhogg.ca, Web: www.billhogg.ca

The Importance of Goal Setting

A critical step to achieving exceptional performance is goal setting. Clear goals and corresponding measures, ensures employees understand what is important to succeed.

Ken Blanchard, in Customer Mania!, tells the story that when he was a college professor he used to give the final exam at the beginning of the course, and then spend the rest of the course teaching students the answers so they would know how to be successful on the final exam at the end of the course.

Real life should be like that. We should know what the final expectations are in advance, so we can develop the skills necessary to be successful.

Goals are set at the top and cascade down through the organization. Personal goals must be clearly linked to organizational goals. There should be a clear line of sight between the goals at the top of the organization to each individuals goals and activities. Every employee should be able to see how there daily activities align directly to and are supportive of the overall organizational goals.

For example, if an organizational goal is to increase sales, as a server, I must be able to see how my daily activities deliver excellent customer service and translate into a happy satisfied customer who will return often and tell their friends about their experience.

Only when each employee sees the importance their daily activities play in achieving overall goals will they internalize the organizational goals and recognize how valuable their contribution is to the success of the organization.

Cheers!

6E's for Easier Implementation

I recently visited a website devoted to developing Character Communities (http://www.charactercommunity.com/), a significant initiative in the schools and businesses in my local community.

The thing I was struck by was the many similarities between developing a Character Community and developing a Customer-Focused organization. I guess that's because both are based on a clear vision of what kind of culture you are trying to build.

I thought I would share a list of 6E's developed for emphasizing character in schools.

1. Example: The way we behave provides examples


2. Explanation: Character development is not a program of do’s and don’ts but rather a dialogue to gain understanding and appreciation of the benefits


3. Exhortation: This is about urging and praising desired behaviours


4. Environment: This is all about relationships, which provide safety, synergy, and a stage for achievement


5. Experience: Providing students with experiences and reflections that would balance the bombardment of experiences from media and entertainment


6. Expectation: High expectations for students and staff

These are the 6 steps being used as strategies to build character throughout our local schools. If we keep these 6E's in mind, we will be well served in developing our own culture as well.

Cheers!

Spend Time with Customers.

I recently came across an article in FORTUNE Magazine where Charlene Begley President and CEO, GE Enterprise Solutions was asked "What was the best advice she had ever received?"

Her answer was that Jeff Immelt, before he became CEO of GE, told her: Spend a ton of time with your customers. Especially when you're new, the first thing you should do is go out to customers and ask them how you compare with competitors, how your service is, what they think of your products.

At most companies, people tend to get enamored with your title, and people want to look good in front of you. Customers will give you the reality. They don't care about your title, they just want value. You'll never get anything straighter than from a customer.

Clearly Jeff makes a great point, but I would suggest that it is probably more important when you are no longer new.

When we are new at a job we are usually more open to new ideas because we are naturally in a learning mode. However, once we have been around for awhile we tend to settle into a belief that we "know the business".

Now it's even more important to make sure that we are constantly listening to our customers so we find our how their needs are changing before the "new guy" at the competition finds out and steals our customers through a more relevant service offering.

Customers needs are always changing, and our services should always be evolving to reflect those changes and the continuous improvements we are making -- so regular intentional listening to our customers is critical no matter how long we have been in a role. Otherwise we risk becoming out of touch with the people responsible for our pay cheques.

Cheers!