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4 Tenets of Conscious Capitalism

Posted by Tom Smith on Mon, Jan, 05, 2015 @ 10:01 AM

I just read an interesting interview with Kip Tindell, chairman and CEO of The Container Store and a leader of a growing movement called Conscious Capitalism which teaches business leaders to create shared value by making their companies more successful and competitive while advancing the quality of life for the community and the world.

 

The concept of Conscious Capitalism is consistent with a personal philosophy that I shared with a colleague several years ago -- there's plenty of business for everyone that plays nice and plays by the rules.

 

Sadly, we see a lot of individuals who do neither making a lot of money at the expense of others (i.e., executives at Enron, Tyco, WorldCom, Bank of America, et.al.).

 

Conscious Capitalism puts purpose before profits with the belief that balancing the needs of all of a business' stakeholders -- employees, customers, suppliers, community and shareholders -- is the right thing to do and will result in a more profitable and successful business.

 

Four businesses that exemplify Conscious Capitalism are The Container Store, Whole Foods, Zappos and Southwest Airlines.  

 

All four of these companies put employees first and focus on providing an outstanding customer experience -- both of which are integral to the second tenet since employees and customers are both key stakeholders.

  1. Higher purpose.  Also known as the "mission" -- the purpose of the company beyond making a profit or dominating a market position.  A compelling sense of purpose can create a high level of engagement by the stakeholders and generate tremendous organizational energy.
     
  2. Stakeholder orientation.  Explicitly managed for the good of all stakeholders including customers, employees, investors, suppliers and the larger communities in which the business participates.  By creating value for all stakeholders, the whole system advances.  Zappos is making a dramatic contribution to their community by significantly revitalizing a "dead" downtown Las Vegas.
     
  3. Conscious leadership.  Management is driven by service to the firm's higher purpose and focuses on delivering value to the stakeholders. Conscious leaders adopt a holistic worldview that goes well beyond the limitations of traditional business.  Enterprises, and individuals, are part of a complex, interdependent and evolving system with multiple constituencies.
     
  4. Conscious culture as captured by the acronym TACTILE.  T = trust.  A = authenticity.  C = caring.  T = transparency.  I = integrity.  L = learning.  E = empowerment.  A conscious culture is very tangible to stakeholders and outside observers.

The result of this is empowered employees who we know work harder, are more creative, care more and are responsible for driving greater customer experiences.

Another result is long-term trusted relationships with suppliers, consistent with The Integrity Chain, which is more profitable for both parties.

Would your company benefit by following the four tenets of Conscious Capitalism?

What is your higher purpose?

If you're interested, you can sign up for the Conscious Capitalism newsletter here.

 

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Tags: conscious capitalism, empowerment, transparency, integrity, mission

5 Obstacles to Employee Engagement and 5 Steps to Overcome Them

Posted by Tom Smith on Fri, Oct, 10, 2014 @ 10:10 AM

describe the image

 

 

 

 

 

 

Thanks to research provided by Bruce Temkin and the Temkin Group.

 

Only 28% of employees are highly engaged with executives being the most highly engaged and those being employed at small companies being the most highly engaged employees.

 

The top five obstacles to improving employee engagement:

 

  1. Lack of a clear employee engagement strategy.

  2. Inconsistent buy-in among middle managers who may, themselves, not be engaged.

  3. No clear owner leading the effort.

  4. Limited funding to support employee engagement efforts.

  5. Senior management has not identified employee engagement as a priority.

 

Given the focus on sales and monthly/quarterly earnings, it's not a big surprise that neither employees, or customer, engagement is a high priority for many companies.

 

They do not see the correlation between engaged employees and engaged customers and the long-term benefits satisfied customers can provide the firm relative to new prospects.

 

The five "I's" of employee engagement:

 

  1. Inform -- provide employees with the information they need to understand what is expected of them.

  2. Inspire -- connect employees to the company's vision and mission.

  3. Interact -- support employees with training, coaching and feedback. Understand what drives your employees. Hint, it will vary by individual.

  4. Involve -- take action with employees to improve processes and solve problems. Your customer-facing employees have a good idea of where your products and services are, and are not, meeting your customers' needs and expectations.

  5. Incent -- deploy appropriate systems to measure, reward and reinforce desired behaviors. Do you really want to reduce the time a CSR spends on the phone with a customer if spending more time will result in greater customer satisfaction?

Is your firm taking any steps to enhance employee engagement?

 

Click Here To Schedule a 30-Minute Consultation  to Discuss Marketing or Sales Issues 

Tags: vision, mission, employee engagement, employee empowerment, corporate culture

Practice "Total Radical Transparency" to Improve Employee Engagement

Posted by Tom Smith on Thu, Oct, 09, 2014 @ 10:10 AM

total radical transparency resized 600

 

 

 

 

 

 

I've had the opportunity to work for, and with, more than 100 different companies over the course of my career.

 

It's very rare to find a company, or management team, that practices "total radical transparency."

 

I've worked for two companies that embraced this philosophy and they were the two places where I felt totally empowered, engaged and made the greatest contributions.

 

In a recent edition of Fast Company, in "The Second You Think You're an Auteur, You're Sunk," film director James Cameron, describes how everyone working on a particular project would sit around a table every morning at precisely 8:15 and air out problems.

 

This is tremendously healthy for any team -- management or employees.

 

It ensures everyone is on the same page and in complete alignment about what's working and what isn't.

 

You bring your problems to the group and solve them as a group. Everyone's invested in the solution.

 

Inability to discuss problems openly and honestly hinders their resolution.

 

Fail to address them and they become even bigger problems as well as a poison to your corporate culture.

 

In one company where I was hired to direct the firm's marketing efforts, I asked the president if I could conduct one-on-one interviews with the management team to ensure everyone was in alignment with regards to the vision, mission, values and strategic positioning of the firm.

 

I was advised this wasn't necessary, since the firm had just completed their strategic planning.

 

It took less than a week to see how misaligned the SBU's, and the employees therein, really were.

 

In a recent consulting engagement, I urged the CEO to take a leadership position in social media since the firm aspired to be a leader in their industry.

 

My recommendation was rebuffed because the CEO was concerned that there were groups out there that would not approve of what the firm was selling.

 

If you're not willing to be open and honest with your employees, your customers and your prospects, you will not be a leader in your industry.

 

The internet rewards those who share information and exposes those that hide it.

 

AGE, arrogance, greed and ego, made companies and individuals a lot of money before the advent of the internet and social media.

 

According to Justice Louis D. Brandeis, "sunlight is said to be the best of disinfectants." 

 

Given this, the internet and social media will expose those companies who are not transparent with their employees (Glassdoor), their customers (Amazon, Zappos, Yelp) or their prospects.

 

Are you and your firm committed to total radical transparency?

 

If so, you and your employees will benefit.

 

If not, you might want to take another look at your vision, mission and values.

 

Empower Employees to Get Insights Download the Free e-book

 

Tags: alignment, vision, mission, values, employee engagement, total radical transparency

Happy Employees = Happy Customers

Posted by Tom Smith on Mon, Oct, 06, 2014 @ 10:10 AM

Tony Hsieh

Photo Credit: Charles Henry, Flickr – Altered with Quote

Thanks to Jenn Lim, CEO of Delivering Happiness, for the following thoughts.
Happiness continues to be elusive in the workplace as headcounts are kept low and leaders remain focused on driving higher rates of productivity and profits.
Morale is low and employees are clueless about the vision, mission and values of the firm as they get no, or conflicting, information from management.
Studies show that employees who are happy and engaged in their work are more successful and more likely to deliver great customer service.
 
It all starts with the vision, mission and values of your company and ensuring that everyone in the firm is in alignment.
Once you've identified the greater good their everyone is working for, have champions to hold everyone, including the management team, accountable.
While Jack Welch liked to fire the 10 to 20% of underperformers, Zappos has been successful by letting go the 10 to 20% of employees who weren't in alignment with brand values. 
There are clear levers to increase a person's happiness:
  • Sense of progress – “is a person developing in their role or in their life?”
     
  • Sense of control – “is a person making decisions and are those decisions being executed on or at least considered?”
     
  • Connectedness – “the depth and breadth of relationships in your work and life.”
     
  • Having passion and flow – “flow is a psychological term that describes something you are so engaged in that it feels like minutes have gone by but in reality it’s actually been hours. How you create that sense of flow in the workplace is basically when you have the level of challenge meeting your level of skill.” We should think about how we can work together and “group teams of people to have that sense of flow so they really want to be engaged in their work.” 
     
  • Sense of higher purpose and meaning (ultimately the most important element) – “what are you doing that is greater than yourself? What is your personal higher purpose and is that aligned with your company higher purpose?”
Results:
  • Recent studies from the Harvard Business Review and The Economist show that business results of happiness are 10 to 30% increases in profitability and 10 to 20% increase in sales.
  • One top-20 ecommerce company increased monthly sales 39% and reduced monthly absences by 96%.
Is your company ensuring its employees are happy?
Empower Employees to Get Insights Download the Free e-book

Tags: customer satisfaction, empower employees, vision, mission, values, employee engagement

Voice of the Customer (#VOC) Isn't Just About Customers

Posted by Tom Smith on Mon, Sep, 15, 2014 @ 10:09 AM

voice of the customer insights

 

 

 

 

 

 

 

I've used voice of the customer (VOC) research throughout my career to solve business problems.

 

However, don't let the term, voice of the customer, limit you to just talking to customers.

 

You can learn a lot by having one-on-one conversations with:

 

  • Your management team to determine is everyone is in alignment with regard to vision, mission, values and strategic positioning.

  • Your employees to understand if they know how they are contributing to the team or to learn what customers do and do not like about our products or services.

  • Members of your sales force to understand what elements of the sales process are working, where the process is breaking down, or if they're pleased with the quality of the sales qualified leads (SQLs) they are getting.

  • Channel partners to learn what you can do to make it easier for them to sell your products to their customers, as well as their perceptions of your products and service relative to other products they are selling.
     
  • Suppliers to understand how you can be a better customer and brainstorm on things you can both change to become more efficient.

  • Former customers to find out why they left and what you can do to improve your product or service to earn back their business.

  • Prospective customers to understand their perception of your brand relative to the competition and who they see as your competition.
I prefer in-depth one-on-one interviews for a several reasons:
  • It's more personal. Respondents can see and hear that you are truly interested in what they have to say and will open up and tell you more than you were expecting. 
     
  • People tell you what they are thinking rather than what they think is "politically correct" or what will make them sound smart to others in the room.

  • You can ask follow-up questions like, "Tell me more about that." or "Can you explain why you felt that way?" and get detailed answers to those questions that you do not get with open-ended questions in a non-moderated survey.

  • You can end the interview by asking, "Is there anything I haven't touched on that you think is important or relevant to the issue we've been discussing?" This gives the respondent the opportunity to answer a question that you didn't think to ask. It also gives the respondent the opportunity to add more detail to their answer to a question that you had asked earlier. 
Use surveys, use Net Promoter Score, use focus groups, use social media listening tools, use whatever methodology that makes the most sense to gather the information you need to make more informed business decisions.
It's amazing what you'll learn if you just ask.
 
The more you know, the more effective and expedient your decisions will be.
How have you used voice of the customer research to solve a business problem?
Need More Insights From Your Analytics? Download the Free e-book

Tags: dialogue, VoC, voice of the customer, vision, mission, values, listen intensely

Top 25 Companies for Culture and Values in 2014

Posted by Tom Smith on Wed, Aug, 27, 2014 @ 10:08 AM

Align along vision, mission and values
Thanks to Glassdoor for sharing their findings.

 

 

 

If you've read any of my previous posts, you know how strongly I feel about companies empowering and engaging their employees.

 

It all starts with having a powerful vision, mission and values and a management team that is in total alignment so they're consistent in what they tell those they manage, as well as how they manage.

 

Where trust is an issue, there is no trust.

 

Values lead to alignment and empowers team members to overcome any disagreement.

 

Clearly the following firms do not have trust as an issue.

Top Companies for Culture & Values 2014

Want to work for a company where employees are satisfied with the culture and values? Glassdoor has announced its report of the Top 25 Companies for Culture & Values, based on workplace insights shared by the people who know companies best — the employees. The following companies stand out for high culture & values ratings and insightful reviews.

Top 25

Ratings Scale: 3.51–4.0 = “Satisfied” 4.01–5.0 = “Very Satisfied”  
Is your management team in alignment with regards to the vision, mission and values of your firm?

Don't assume they are.

 

I worked for a firm and suggested they let me do one-on-one interviews with the management team to ensure everyone was in alignment.

 

The president, to whom I reported, said that wouldn't be necessary since they had just completed a strategic planning session.

 

Sadly, I quickly saw how out of alignment, not only the management team, but the entire staff was and I was powerless to do anything about it.

 

While the company was doing alright, it could have been performing at a significantlly higher level if employees were on one team rather than several different, frequently competing, teams.

 

Ask the members of your management team, independently, about the vision, mission, values and strategic positioning of the firm and see how much the answers vary.

 

I assure you the insights you get will be invaluable to the firm, and may save your job.

 

Need More Insights From Your Analytics? Download the Free e-book

Tags: transparency, trust, alignment, vision, mission, values, strategic positioning

Create a Center of Excellence to Improve Customer Experience

Posted by Tom Smith on Thu, Aug, 21, 2014 @ 10:08 AM

social media center of excellence

 

 

 

 

 

 

 

Thanks to Vanessa DiMauro (@vdimauro), CEO of Leader Networks, Ekaterina Walter (@ekaterina), CMO at Branderati and Jessica Gioglio (@savvybostonian), head of Public Relations and Social Media at Dunkin' Donuts for sharing their insights and experience on the webinar "Social Organization: How Centers of Excellence, Collaborative Management and Seamless Enterprise Structures are Working" for Social Media Today (#smtlive).

 

Social media is causing businesses to evolve.

 

More than 50% of businesses report they currently are, or will be, a socially-enabled enterprise within the next year.

 

Line of business silos can lead to difficulty when trying to become a socially-enabled enterprise.

 

Different business units use different metrics, have competing budgets, duplicate efforts, have resource wars for talent and have multiple social media accounts.

 

Companies lack an integrated business strategy, an integrated communications strategy and best practices for using social media to promote the business, engage with prospects and service customers.

 

The solution is for the business to create a Social Business Center of Excellence housed within the strategic communications group supporting the different lines of business.

 

Doing so will result in an integrated approach to creating standards and best practices that can be applied across the organization based on the vision, mission and values of the firm.

 

The Center of Excellence:

  • Establishes, and monitors performance against, the shared goals and objectives of the organization.

  • Creates a framework, tools and standards for using, and interacting with prospects and customers via, social media.

  • Implements pilot projects for organization learning and best practices.

  • Shares measures of success and performance versus key performance indicators (KPIs).

 

The benefits will be:

  • Insights for new product development and R&D by listening intensely.

  • A more customer-centric organization.

  • More innovation.

  • Flexibility to respond to trends, customers and prospects in a timely manner.

Over time, the goal of the Center of Excellence is to help the company become so proficient at social media, and sharing information, that it's no longer needed.

 

Keys to success:

 

  1. Executive buy-in, leadership and ownership.

  2. Center of Excellence objectives are driven by line of business leaders but captured and managed by the Center of Excellence in light of the vision and mission of the company.

  3. The Center of Excellence is empowered to be an organizational change agent.

  4. Cross-departmental collaboration is enabled, supported and rewarded.

 

Has your firm created a Center of Excellence to improve the customer experience in social media and beyond? 

 

Click Here To Schedule a 30-Minute Consultation  to Discuss Marketing or Sales Issues

Tags: alignment, consistent messaging, vision, mission, content, social media

Consistent, Compelling Stories Accelerate Sales

Posted by Tom Smith on Tue, Jul, 08, 2014 @ 10:07 AM

stories create emotional connection

 

 

 

 

 

 

 

Thanks to HubSpot for the following.

 

Storytelling is a great way to differentiate your brand.

 

Stories help us understand the world and remember things.

 

Stories are much more memorable than fact, figures, features and benefits.

 

What makes a great story?

 

  1. Context

  2. Emotional response.

  3. Consistency and authenticity -- great stories spread because they are true.

  4. They're specific and memorable.

 

Think about how and where to tell your story.

 

Start with your website.

 

Appeal to the senses rather than logic. Make an emotional connection.

 

Do this by:ty

 

  1. Know your niche and the personas to whom you are speaking.

  2. Incorporate personal/emotional experience. Why did you get into this business? What problems were people having that you were able to solve?

  3. Counter challenges, failures and overall problems. Address people's questions, fears and concerns upfront -- don't wait for them to ask.

  4. What are you bringing to the table? What make you "different and better" than what your competitors have to offer?

  5. What excites/interests you? Tell a story about a time in your business that your excitement and interests helped you solve a business problem.

  6. Convince your audience to care -- about you, about your business, about what makes you "different and better."

 

Create an experience. People don't remember the pitch, they remember the experience.

 

  1. Focus on a specific worldview. Set the stage.

  2. Provide great value at a fiar price. Help people see, and feel like, they're getting a fair deal.

  3. Interact and connect. Have a dialog with customers and prospects. Get to know them as individuals.

  4. Bring the human element back to business. People do business with, and make an emotional connection with, people, not companies.

  5. Convince your audience to care by making an emotional connection with them. Provide information of value that's relevant to them and their situation.

As with all marketing, consistency is king. Consistency builds trust. Inconsistecy builds confusion and distrust.

 

  1. Make sure your story is consistent with your mission statement.

  2. Build your story into your core products and services and ensure that your employees know, and tell, the story.

  3. Separate the story from the experience.

 

Think story, not features.

 

Social media should be about real human interactions. However, it's too noisy and difficult to make these interactions easily.

 

  • Social media is meant to be a personal channel.

  • It has become broadcasting, canned responses and mindless monitoring.

  • Get back to having actual human interactions. 

  • All departments in your organization can use social media for their work. Empower, and encourage, them to do so.
Empower Employees to Get Insights Download the Free e-book

Tags: empower employees, alignment, consistent messaging, authenticity, mission, emotional connection

Does Your Corporate Culture Drive Repeat Business or just Sales?

Posted by Tom Smith on Thu, Jun, 12, 2014 @ 10:06 AM

corporate culture affects customer experience

 

 

 

 

 

 

General Motors knew about their faulty transmissions 11 years before they did anything about them.

 

Target knew they had data security issues six months before they were hacked.

 

The largest privately-held software company in the world has significant customer satisfaction issues that result in them refunding their clients millions for years.

 

A friend who works for a local health insurance company tells me I should be grateful I didn't get a job with her employer.

 

Another friend of a firm with whom I was consulting told me to be glad I didn't get their director of marketing position -- "just look at what the employees are saying on Glassdoor."

 

And yet another friend lost his job heading up the VOC (voice of the customer) program for "the world's leading provider of IT training and business training" because they're more interested in sales than customer satisfaction.

 

Has the success of Amazon, Zappos, Chipotle, Costco and Southwest Airlines, NPS leaders, not taught anyone anything?

 

Hey Mr. and Ms. C-Level executive, your employees will only treat your customers as well as you treat your employees.

 

If all you care about, and reward, are sales, don't expect your employees to be concerned with anything other than making sales.

 

If you don't show concern for your customer satisfaction levels, your NPS or the number of referrals you're getting, don't expect your employees to be.

 

If you, and your employees, don't care about customer satisfaction, do you really expect your customers to continue doing business with you?

 

When I talk to senior managers about vision, mission and values, their eyes glaze over. It's clear they either don't understand, or don't value, what I'm talking about.

 

Well, your employees and your customers do. Perhaps c-level dissonance with vision, mission and values are what's diving the pathetic employee engagement and customer satisfaction levels?

 

Employees today want to work for a company who has a mission that more than "maximizing shareholder value."

 

Customers want to support businesses who care about them, their needs, their wants.

 

Be transparent. Do what's right by customers -- protect their data, if your product has a defect fix it.

 

Make the customers' life easier, simplify their life, show them you care -- you'll have a customer for life because your competitors aren't doing it.

 

Amazon will ask if if you're sure you want to buy the same book you bought three months ago before they go ahead and register your purchase of the same book.

 

Banks, cell phone and internet providers, NPS laggards, all know enough about their customers' usage habits to suggest a plan that provides more value for your money.

 

Unfortunately, none of these companies, that I'm aware of, will let you know they've got a better offer for you until you call to cancel, or reduce, your service.

 

Customers do business with people, and companies, they know, like and trust.

 

What are you doing to earn your customers' trust?

 

What are you doing to engage and empower your employees to provide an outstanding customer experience?

 

Or, do you just care about sales?

 

Want to Accelerate Sales? Download the Free e-book   

Tags: VoC, voice of the customer, net promoter score, vision, mission, values, employee engagement, employee empowerment, customer service

Your Employees are Key to an Outstanding Customer Experience (#cx)

Posted by Tom Smith on Wed, May, 21, 2014 @ 10:05 AM

engaged employees provide great customer experience

 

 

 

 

 

 

 

Great presentation by Jim Knight, the former head of Hard Rock Cafe's School of Hard Rocks, at the VOC Fusion (#vocfusion) conference.

 

Jim's presentation was entitled, "How To Achieve Rock Star Status: Employee Culture is the Key to Great Customer Experience."

 

The guest experience is the "top of the iceberg" for the brand.

 

The internal environment (vision, mission, vlues, service philosophy, standards and procedures, tools and processes, beliefs and experiences) are the things beneath the surface that really impact customer experience.

 

There are two types of organizations: virtuous and vicious. Which one is yours?

 

Who you hire determines what kind of organization you are.

 

Hire the wrong employees and you end up with:

  • A disintegrated morale and culture

  • An anemic customer experience

  • No one talking positively about you

  • Slowing visitor rates

  • Missed sales and profit targets

  • Good employees leaving for other jobs

  • Hiring to fill positions rather than making the right hire for the position

 

Virtuous companies focus on hiring the right employees and end up with:

  • Great morale and culture

  • Great customer experiences

  • Raving fans

  • Sales and profits that surpass goals

  • Employees receiving bonuses

  • Potential employees coming to you because your's is a "great place to work"

  •  Hiring the best available people for the job
Jim provided 10 rules for your company to achieve "rock star" status:
  1. The only path to a virtuous environment is through employees. Have a well-defined employee life cycle for all your employees: recruiting, interviewing, selecting, on-boarding, training, communicating, developing, incenting, retaining and separating.

  2. Create compelling, brand-specific recruiting collateral. Have interview standards. Great companies only hire one to two applicants out of every 10 interviews. Hiring the right fit is too important to screw up. Have multiple interviewers use different interview questions and reach consistent on whether or not you're hiring the right person. If not, keep looking.

  3. Implement a rigorous, non-negotiable interviewing process. Keep in mind that today's workforce: values individuality, are virtual learners, have short attention spans, are tech savvy as well as tech dependent, want to do meaningful work. Companies have to think differently about future team members.

  4. Hire rock stars not lipsynchers to amp up the brand. Your employees are your show. The most successful companies in the world have a shared mindset among employees. If you don't tell people they should be working on they fill in the blanks. Individual agendas produce random actions, a culture of confusion and dysfunction.

  5. Be like U2 -- everyone has a part to play in the band. There are stars and there are supporting roles. They are both important. Find the right people for each. Have a sound on-boarding process. It matters how and who teaches new hire orientations. According to the People Report, if another staff member teaches, turnover is 113%. If any manager teaches, turnover is 108%. If a qualified training manager teaches, turnover is 104%. If a general manager teaches, turnover is 98%. The top 10% in sales have the 10% lowest turnover.

  6. Give employees something bigger than themselves to commit to. Communicate with employees in comic book style or airline safety card style -- short, to the point, easy to remember.

  7. Communicate to people in the language in which they dream. Look for learning opportunities outside the classroom. Encourage immediate supervisors to engage with new employees. According to Gallup, the immediate supervisor is the promary reason people leave.

  8. Revolutionize all instructor-led training into "edutainment."

  9. Leadership matters. Leaders have the power to light or extinguish the cultural flame of the company. Leaders bring the flame thrower every day and light it up.

  10. Position your brand to be tatoo-worthy -- for your employees and your customers.

Are your employees more inclined to tatoo your company logo on their body or back in to their parking space so they can get away as soon as their day is over?
As an employer or manager, it is incumbent upon you to hire and empower your employees.
If you want them to be engaged you must inspire them.
What is your vision? What is your mission? What are you doing to inspire your employees?
Empower Employees to Get Insights Download the Free e-book  

 

Tags: emotional connection to the brand, transparency, empower employees, alignment, vision, mission, values