Category Archives: Culture

What Is The Access To Calling Forth The Best From Your People and Cultivating Authentic Customer Loyalty?

In the realm of business, first and foremost, I show up (for myself) and travel as a philosopher-strategist. One of the central concerns in philosophy used to be ethics: how to live well in this world with others. This has not been the case for quite some time and may account, to a large degree, to the way the world is and is not. One of the central pillars of strategy is focus: bringing to bear all your resources to the key leverage points at the right time/s.

Looking through the ethical and strategic lenses, I have been grappling with the question of performance and loyalty: what calls forth the best from the people who work in your business and what is he access to authentic customer loyalty? The kind without bribery, without the gimmicks. In my search I came across a wonderful book. Today, I wish to share with you certain passages that speak to me and may provide an answer to the question that I have posed here (bolding is my work):

Liberation Ethics

When people work in conditions of perceived unfairness and unkindness, they fall into a self protective mode. Like turtles, they crawl into their shells and hide. They’re not motivated to take positive risks, to dig deep inside to discover all their talents and bring those talents to bear in creative ways on the challenges of the corporate business. Their emotions are tinged by fear and resentment, and these negative feelings block the flow of positive emotional energy the could be putting to work in their daily activities…..

employees who feel honourably treated are most likely to pass on that honour and respect in their dealings with customers, potential customers, and vendors. Those who feel badly treated will quite often pass on some of that treatment as well to those outside the company with whom they have contact. And this can become a flash point for whether business is gained or retained. Most people find it difficult over the long run to buy even good products from bad or discourteous people. 

Relationships Rule The World

In the course of my life so far, I have become totally loyal to any number of businesses ….. because I felt well treated in each of these places, welcomed, honoured, and respected. Friendliness, kindness, genuine concern, that little extra touch, going beyond the call of duty – these are all exemplifications of basic goodness, applications of the moral dimension that often bring with them the result of loyal relationships and greater business success…

- Tom Morris, If Aristotle Ran General Motors

Go ahead and develop a strategy, change the organisation structure, redesign processes, and implement the latest Customer Experience technologies.  And it occurs to me that if you don’t talk about, grapple with, and address the questions of liberation and basic goodness as exemplified by friendliness, kindness, fairness and genuine concern for the people in your business (those who work ‘within’ it), the people served by your organisation (customers), and the people impacted by your organisation (community, vendors, partners..) then you are unlikely to ever build a solid foundation that allows you to call forth the greatness of your people and cultivate enduring authentic relationships with your customers.

I know that this is a BIG ask. Sit in on counselling sessions and you will learn that almost every single one of us resists acknowledging, understanding, and dealing with that which really matters. We will do just about anything and everything except that which really matters: how we show up and travel in the world and in particular who we relate to and treat our fellow human beings including those closest to us.  And some folks do the difficult work and by so doing the live lives and make an impact in the lives of others that is uncommon.

I wish you a great day, thanks for listening. I welcome your thoughts, your experience on that which I have shared here today.

 

Customer Relationships: Does It Pay To Tell The Truth?

In amidst all the talk of the importance of a customer-centric culture, customer obsession, building customer relationships and improving the customer experience I find something missing. What?  The commitment to tell the truth: being straight (levelling) with the customer. What I notice is that the ubiquitous business practice is to:

1) bullshit – make things up because they support the narrative/agenda irrespective of concern for truth-falsehood of assertions;

2) deceive by actively misrepresenting and/or omitting essential information; and

3) lie – to know the truth and assert the opposite.

So I find myself delighted to read that recently Honda has recalled ’1.8m cars around the world after a scare over an airbag in another manufacturer’s vehicle but made by its supplier Takata’. I’d like to believe that the folks in Honda are decent folks who put the lives  of their customers before profits.  And that may be wishful thinking. At the very minimum, it occurs to me that Honda has learned some lessons from Toyota and GM: when you find there is an issue, share what you know with your customers, and do the right thing.

Does it pay to do the right thing: to tell the truth?  I share with you the following story (bolding is my work):

What many hospitals don’t consider is that a positive error culture could increase the trust of patients, as the following case shows. Matthias Rothmund, a professor of surgery, once made a big error. When one of his patients was checked a few days after a successful tumour operation, the x-ray showed a surgical clamp that had been mistakenly left inside the patient’s body. Rothmund immediately informed the patient, removed the clamp, and reported the incident to his insurance, which gave the patient a settlement.

For a long time the surgeon was plagued with the thought of his error. Five years later the patient returned to his office with a hernia and said he wanted him to perform the operation. Rothmund was surprised. The patient explained that he trusted Rothmund and his clinic precisely because Rothmund had immediately admitted his error and corrected it.

- Gerd Gigerenzer, Risk Savvy

Did you notice the trap that I set for you/us?  Did you notice that the question that I asked is this one: ‘Does it pay to do the right thing: to tell the truth?’  If you formulate the question/challenge of right action in this manner then you show up and travel in the world in the manner of the Tops at GM. The folks at GM kept the knowledge of a faulty ignition switch secret for over a decade and in the process at least 13 people lost their lives. Why? Because by their calculations it didn’t pay (revenues, profits) to tell the truth, recall the cars, and fix the ignition switch.

What is my point?  If you are genuinely committed to putting in place a customer culture then you do right by the customer, always, irrespective of how the ROI calculation works out.  And whilst Mary Barra may lay the blame on the corporate culture, I say that the responsibility ALWAYS lies with the Tops.

I leave you with this final thought: Steve Jobs may have been able to bring about that which we he brought about because his actions were not dictated by ROI.  What were his actions dictated by?  Simplicity? Beauty – in its fullest, holistic, sense? The customer experience?

 

On Culture Change, Leadership and Change Management

CRM, Customer Experience, and Digital Business Require Culture Change

What I notice is that in order for an organisation to be effective in the games of CRM (building profitable relationships with customers), Customer Experience (competing on the basis of a superior customer experience) and/or digital business (rethinking the business through the lens of what digital technologies enable) require culture change: a change in the way that people think, in their expectations, and in the way that they go about doing things.

Yet, rather than deal with the challenges of culture change, I find that just about every management team in every organisation that I have come across gets busy with buying the technology. And thus ignores the risk spelled out in the following ‘equation’:

Old Organisation + New Technology = Expensive Old Organisation

Why does this happen, again and again, one management fad after another?  I point you to these wise words:

It is easier to buy stuff than it is to create and stabilise new ways of relating, new frameworks for organising, and new expectations and norms. Those are the tough, messy issues that accompany shifts to more mindful, reliable, resilient functioning….

Karl Weick and Kathleen M. Sutcliffe, Managing The Unexpected

What Is The Default Mode Of Going About The Challenge Of Culture Change and Doing Change Management?

This week I found myself in a meeting talking about culture and change management.  I found myself listening to one senior person articulating the challenge of getting his organisation especially senior management and the sales teams to move from one way of doing things to a substantially different way of doing things.  Yes, a shift in the “way we do things around here” is needed for the longer term. And yet there is an awkward reality to deal with. What awkward reality?  The existing “way of doing things around here” has been and continues to deliver the results (sales, revenue growth, profits).

Without a moment’s hesitation I found another senior person (an advisor) offering a solution to this challenge. Which solution? The solution that occurs to me as the default one: the application of “stick and carrots”. I noted that the particular emphasis was on the stick rather than the carrots.  The assumption being that if the Tops yielded a big enough stick then the Middles and Bottoms would fall into line.  I found myself dismayed. Why?

My 25+ years of experience suggests that this approach is largely ineffective and in some cases does considerable damage to the organisation’s long term resilience-performance. Why? I can think of at least two reasons:

First, change in behaviour is merely compliance. And repeated use of the stick to get compliance almost always, and inevitably, leads to a reduction of motivation to do one’s best. And usually an increase in motivation to ‘get back’ at or merely ‘resist’ those wielding the stick.

Second, the people who are the most able tend to leave (as few of us like to be treating as cattle) thus disrupting the network of relationships, degrading the quality of communication and information flow between the players, and putting a dent in the intellectual capital of the organisation.

One more point. It occurs to me that those of us who advocate the sticks and carrots approach to change have failed to appreciate that lasting-sound change requires change in two levels; change at the behavioural level is one of these levels.  I will go into what these two levels are and the critical importance of both levels in another post. Let’s continue with this conversation.

 What Does It Take To Effect Culture Change?

I invite you to consider-grapple with-meditate on the following way of looking at culture change:

The culture change process is a two-sided coin. On one side is the “bottom-up” phenomenon that many changes arise from those actually doing the work. On the other side is the “top-down” reality that changes in conducting business often get made by direction or sanction from top management. Both are essential …

Changing the organisational culture ….. will require commitment at every organisational level…. Culture change is not triggered by a magic bullet or directive. Rather, culture is changed by a series of small steps taken by the leading members of the culture at all levels.

Leadership is standing up and leading the way. It is behaviour and it is demonstrable. It is showing, not telling....

Changing the way business is conducted requires people at all levels to lead by personal example in demonstrating new approaches to achieve safer (and more reliable) operations……. This requires that we strengthen accountability at all levels of the organisation…..

- TriData Corporation, Wildland Firefighter Safety Awareness Study, Phase III Implementing Cultural Changes for Safety (1998)

At this point, I confront you with that which is so about us, human beings: our freedom. I leave you to choose which road you wish to travel: that which is convenient-easy and on the whole ineffective even damaging to long term performance (“sticks and carrots”) or that which is effective, takes time, requires embodied leadership day after day from the Tops, and calls forth leadership and accountability from all people at all levels: Tops, Middles, and Bottoms.

One thing that I am absolutely clear on is this: buying technology in the absence of cultural change (changing how we think about, what we expect from one another, and how we do things around here ) is likely to turn out to be a waste of time-effort-money.

I wish you a great week, and I thank you for your listening.

Looking Under The Hood Of Customer And Employee Engagement

A Skeptical Look Under The Hood Of Customer Engagement?

Why is Customer Engagement so fashionable?  Is that because Tops, Middles, and Marketers have found Jesus and come to love the Customer? I say “No!”

It occurs to me that Customer Engagement has become fashionable because marketers have found it increasingly difficult to get the customer’s attention long enough to exercise their dark arts of activating-influencing-manipulating human beings to want what the marketers are paid to sell.

Put differently, the purpose of the bag of tricks that falls under fine sounding rhetoric of Customer Engagement is to get customers to march in tune with the marketer’s agenda: tell us about yourself so we can sell your data and send you marketing messages; buy from us and buy more from us; and sell us, and for us, by recommending us to your social network.

I say Customer Engagement is a Taker’s way of taking whilst masking-disguising the taking that is going on. Is it then a real surprise that whilst there is so much talk of Customer Engagement, there is so little in the way of success?  Which might explain why the masters of the dark arts (those who advise-assist marketers) are busy inventing new tools-tricks for taking. And why marketers continue to fall for the latest tool-trick?

You may not be as skeptical as me; being skeptical as opposed to trusting-gullible is the norm, that is our default wiring.  So I invite your to play a mind game. Imagine that every company that is busy with Customer Engagement scraps their existing engagement tools-tricks. Instead, customers vote and choose their champion: the customer champion. This customer champion is invited to any-every discussion in the business which makes decisions that impact customers. And no decision can be made without the agreement of the customer champion.  In giving his/her consent the customer champion solicits the views of the people he represents: the customers.  Is this not real engagement with customers?  Then ask yourself if any business/organisation is doing this today. How many names have you come up with? Who even gets close to something like this?

What Is The Alternative To Customer Engagement?

If you showed up and travelled through life as a Giver how would you approach the Customer challenge?  I say that you would not be asking yourself  the following question: “How do I get the customers to engage with me and my agenda?”

It occurs to me that as a Giver you would be grappling with the following kinds of questions:

  1. How do I create superior value for my customers?
  2. How do I make their lives simpler-easier?
  3. How do I enrich the lives of our customers?
  4. What will it take for our organisation to leave customers feeling happy doing business with us and grateful that we exist?”

A Skeptical Look Under The Hood Of Employee Engagement?

Why is it the Employee Engagement is so fashionable? Is it because Tops, Middles and HR folks have found Jesus, recognised the universal brotherhood of man, and come to see the folks that work in the business as fellow human beings – of equal worth and value? I say “No!”

It occurs to me that Employee Engagement has become fashionable because the business place is so competitive. As such there is tremendous pressure on organisations to increase productivity and cut costs.  And for some organisations, there is the added pressure of generating knowledge and converting this knowledge into new products, new services, and better (cheaper) ways of doing things.

Imagine one of the Tops getting up and saying: “We are keen, even desperate, to get as much knowledge-innovation-work out of our human resources as possible whilst paying the absolute minimum that we can get away with paying.”  How much better, upstanding, uplifting, it sounds for a Top to talk about Employee Engagement.

I get that you may think that what I speak here is far-fetched. Let’s put that to the test. Imagine every company that is touting Employee Engagement goes to their employees and asks them to vote for and nominate an employees champion. And once this champion is appointed, s/he has to be presented in any-all discussion that affect the lives of the employees. And that no decisions that affect employees can be made unless the employees champion gives his/her agreement.  Now tell me how many companies that you know which practice anything like this.

I say Employee Engagement is just another term devised by Takers to disguise their taking. And I am clear that most employee are wise to this. Why might just explain why there is so little ‘engagement’ and genuine collaboration in the very companies that are touting Employee Engagement and devising-implementing the latest bag of tricks dreamed up by those passing themselves of as masters of manipulating people (psychologists, social scientists, academics, consultants, change agents..).

What Is The Alternative To Employee Engagement?

I say that if you genuinely care about your fellow human beings you would never refer to them as human resources. Just get present to this term: where is the dignity in the term human resource?  When you get home do you refer to husband/wife/partner and children as human resources?  Do you view-call your friends and members of your social network human resources?

So how would you treat your employees if you showed up and travelled in this world as a Giver?  Allow me to ask the same question differently. What are the kinds of questions you would be asking yourself if you genuinely cared by the wellbeing of your employees and the business?  I say that you would be grappling with the following kinds of questions:

  1. What kind of workplace is most likely to show up as a great place to work for the people who work (or we want to work) in our organisation?

  2. How do we involve our employees in the key business decisions especially those that affect them and their interactions-relationships with our-their customers?

  3. How do we shape what we do and the way that we do it such that this resonates deeply with that which provides genuine meaning, uplifts our employees, and calls forth the very best they have to offer?  What is it that we are doing-causing in the world that is speaks to and is worthy of the very best that lies at the deep core of our employees?

  4. How do we make sure that we share, equitably, the fruits of the creativity-knowledge-innovation-work that flows from our employees?

I welcome your thoughts on the matters I have touched upon here.

Transformation: Brief Exploration Of Two Radically Distinct Customer Experience Paradigms

What Is The Context For This Conversation?

I am following the lead taken by Dawna MacLean in her recent post on encouraging businesses to become more human. It occurs to me she is a brave lady worthy of admiration and respect. I dedicate this post to her, in service of the stand she is taking and the possibility that she is living from and into.

There are many actions that I regret. Few bring me shame. One in particular is etched within me despite it occurring ‘a lifetime ago’.  I reckon I was 14 at the time, walking, alone, on my way into the town centre. I am stopped by an old lady, she has a walking stick, she tells me she is lost, she asks for directions. I draw closer to hear-understand what she is saying. She smells! I tell her that she need to turn around. I tell her she is only ten minutes walk from her destination. And I spell out the directions – twice.

A voice speaks to me along the following lines: “Take her hand, walk her there, it is even on your way somewhat. Without your help she will struggle.” Another voice speaks: “She smells awful! You are in a hurry and it will take ages to take her there. You have given her what she asked for. She’ll be fine.” I listen to the second voice, leave her to make her own way, and I walk into town.  I cleaned up a lot of history whilst participating in Landmark Education. And that is one that I never got to clean up.  If that old lady were here today, I’d ask for her forgiveness.

Why am I sharing this with you?  So that you have the context from which to make sense of what I speak-write.  I write is not to help you make it: sell more, be more successful, obtain higher status, live happily ever after.  I write to open eyes, unblock ears, touch hearts. I write to encourage-facilitate a shift of worldview. I write from the possibility of meaningful-fulfilling human lives and the possibility of a ‘world that works for all, none excluded’.  Arguably a world that works must include meaningful-fulfilling human lives.  And such a world has plenty of space for businesses that do great by doing good: enriching human lives, and life as a whole.

What Is The Experience That Goes With Transformation?

The last post ended with “So the challenge of Customer Experience is the challenge of a transformation in worldview.”  When I speak transformation, what am I pointing at?  Look at the following picture, keeping look at it until a shift occurs in what you see.

Gestalt Shift Cuble

 

What occurred? If you are like me then you probably started out seeing a small cube sitting inside of a an ‘open box’ and then came a moment when you saw a big cube from which a small cube (left hand corner) was cut-out, missing.

Please notice, the reality (that which is) has not changed. It is the same picture – nothing about the picture itself changed. Yet, that which you perceived-saw changed and you had something like a surprise: an ‘aha’ experience.  Why?  Because the perceptual switch that occurred was not simple a change-adjustment-variation of what you saw originally. What you saw was distinct from what you had seen earlier. Put differently, a transformation occurred in your seeing.

What can we learn from this?  Given the same ‘that which is so’ you made sense of it in two distinct ways.  And, this is important, each way of seeing ‘that which is’ occurred as natural, correct and absolute whilst is was occurring the way it was occurring for you. Only by looking at the picture for a sufficient period of time, in a specific manner, did the gestalt like shift in your seeing occur. And when it did occur, it occurred in an instant.  Transformation is like that.

Now think of business and organisational life and apply that which you have experienced here. And learned. Ask yourself this question: is the way that the business world is ‘pictured and talked about’ the only way of picturing and talking about it?  Is it possible that there are many ways of picturing, talking about, and showing up in the business world?  I say that there are numerous ways of seeing-interpreting the business world – that the number of ways is only limited by our imagination AND the influence-strength of the dominant paradigm of seeing.

Customer Experience: Two Radically Distinct Paradigms

Let’s take a brief look at each in turn.

CX Model 1: The Dominant Way of Seeing-Using Customer Experience

It occurs to me that a lot has been written about Customer Experience. For me most of it shows up as shallow, or simply putting ‘lipstick on the pig’.  What am I pointing at when I speak that which I have spoken. Take a look at the following picture:

Dominant Model of CX

Dominant Model of CX

In this way of seeing, Customer Experience is viewed-treated simply as a means of:

  • Increasing revenues
  • Reducing or containing costs e.g. through using lower cost channels to ‘serve’ customers; and
  • Risk management given that every customer has access to a smartphone and social media and thus is in a position to damage brand-corporate reputation.

The goal of business within this dominant paradigm is that which it has been since the ascendency of shareholder value and ‘greed is good’ ethos. This goal is characterised by a focus on self (oneself and one’s tribe), and greed: to extract as much value as possible in the short-term. Any value created for the customer is the minimum that it is necessary to create in order to extract as much value for ‘Self”.

Within the dominant paradigm, CRM (including social CRM) is simply a technology that is used to augment-strengthen the existing business logic: getting as much money out of the customer as possible whilst giving away the minimum; and getting as much value (productivity) out of employees whilst giving back the minimum.

Finally, in this model (as practiced) the deep business logic stays the same. Competition rather than collaboration. Self at the expense of others. Efficiency rather than effectiveness…… Importantly, people are neither trusted nor treated with respect and accorded the dignity that goes with being a full human being; threat, fear, and game playing are pervasive.

CX Model 2: A World Waiting To Be Invented, And Mastered By Few

I call the second model ‘A World Waiting To Be Invented’ because it is only practiced-mastered by a few. The rare few that come to my mind include: John Lewis/Waitrose, USAA, and Amazon/Zappos.  What constitutes this second model? Here is a picture:

 

A World Waiting To Be Invented

A World Waiting To Be Invented

In this model Customer Experience is a subset of Experience. Experience encompasses the experiences of all the participants-actors-stakeholders: customers, ‘partner’s (the people who actually work in the organisation and create value for customers), value chain partners (suppliers, channel partners, outsourced partners…), and the community.

The ‘Goal’ of the business within this paradigm (way of seeing the world of business) is one of creating value for and sharing this value with the whole system (all the participants, all the stakeholders). Such a business is focussed on making a contribution and serving: enriching the lives of all participants. And usually takes a stand and operates from-into a specific possibility. Take a good look at the John Lewis constitution and you will see the stand and the possibility spelled out. Read Jeff Bezos’ annual letters or Tony Hsieh’s book, Delivering Happiness, and the possibility-stand is clearly articulated.

In the model, the business logic of the organisation is designed-operated from the context of creating-generating the kind of ‘Experience’ that is mandated the ‘Goal’.  Put differently, the ‘Business Logic’ now serves as the means of delivering the Experience.  Not the other way around.  Put differently, ‘Experience’ precedes’ Business Logic’.

From where does the design of ‘Experience’ flow?  From the ‘Goal’. Remember the goal is to cater for the needs-welfare of the whole. Which is why ‘Experience’ encompasses all the actors, all the stakeholders.

In this way of looking at the world of business, and according to me, Customer Experience takes it’s rightful place. Rather than dominating the discussion, Customer Experience is seen for what it is, just one component whose meaning-impact comes from how it fits into the other components of Experience. And how it gives life to the ‘Goal’.

What becomes of CRM in this model?  CRM systems are simply tools to give life to the ‘Experience’ that the organisation is committed to creating-generating.  As such CRM systems must take into account the needs of Customers and ‘Partners’ (people who will use the systems) and deliver the kind of experience(s) that these folks are looking for.

Enough for today. I may elaborate on these models in the future. If you find yourself moved to share your thoughts then I invite you to do so.

 

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