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Engagement Marketing

“It’s the Employees, Stupid!”

Here’s a depressing statistic: according to an online study of client-side marketers, only 20% of 198 respondents made sure that employees outside of the marketing department were kept informed of the company’s marketing strategy “all or most of the time.” A whopping 56% of the respondents kept employees informed “sometimes.”

Keeping employees in the loop

I found these stats in Don Schultz’s Marketing News column. As Don so aptly put it: “The marketing executives polled have the responsibility for planning and developing the marketing strategy but not the execution. That’s what the employees do. If only one in five even know what the strategy is, how can any organization hope to create a seamless, transparent, integrated brand experience for its customers?”

So Don created a slogan, “It’s the Employees, Stupid,” to help remind execs about the people who are ultimately responsible for delivering the brand experience to customers. He explained, “ … if the employees don’t know what the marketing strategy is, they will have a much harder time delivering on it, no matter what the [marketing] executives decide it is.”

Sometimes it’s not the employees who are clueless.

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Engagement Marketing

A Special Anniversary Calls for Thanksgiving & A Special Offer

This year I’m celebrating my company’s 20th anniversary. It was 20 years ago this month that I officially registered Quality Service Marketing as a business and, thanks to my many clients and colleagues, it’s been an incredible experience.

Perhaps this longevity is the reason I’m not panicking over the current economy, even though my business has been affected this year. I’ve made it through difficult economic times before.

Reflecting over the past 20 years, what has changed the most? Two things stand out:

  1. Technology and its impact on the workplace – in extending my communications reach (e.g., blogging) … in providing faster, more expedient ways to communicate with clients and colleagues … and in providing instant access to an overwhelming amount of information. I can remember working off a large, non-portable desktop computer with a bulky monitor and dot matrix printer. Technology has made a major impact on how we all work these days, not to mention how much!
  2. I’ve also changed – I’m older, wiser (not to mention a little wider), and more confident in my abilities and value as a trusted business advisor. In addition, I’m delighted to have added “published author” to my credentials.*

What hasn’t changed since I’ve been in business?

  1. The need to take care of employees and customers. Given a global economy with more competition and more choice, it’s harder than ever to attract and retain customers and effectively engage employees in the process. A “high tech-high touch”approach is still relevant.
  2. My respect for and relationships with my clients, past and present. It’s a mutually beneficial relationship where we learn from each other. I feel privileged to have worked with so many wonderful people, many of whom I’m still in touch with regardless of whether we worked together for many years or on a once-and-done project basis.

What I’m thankful for

In honor of my business milestone and in the spirit of Thanksgiving, I’m thankful for many things:

  • My clients – for the opportunity to serve them + grow both professionally and personally in the process.
  • My colleagues – for their peer mentoring, advice, and sharing of ideas.
  • My blog readers and fellow blogging buddies – for their continued interest in internal marketing & communications and inspiring new posts.
  • And my family – for their continued love and support.

Best wishes for a wonderful Thanksgiving holiday!

*In honor of this 20th anniversary, and in time for the holiday season, I’m happy to offer a special 20% discount off the purchase of my book, Taking Care of the People Who Matter Most: A Guide to Employee-Customer Care, from now through Dec. 31, 2008, when you order online from WME Books. Be sure to enter special discount code QSM109 in the coupon code box.

Categories
Engagement Marketing

Internal Marketing Spotlight: Zappos (Part 3)

As a specialist in employee-customer care, I continue to be impressed with Zappos.com. While my previous posts in this Spotlight series highlight what I’ve learned about the company, what really matters are the employees’ perceptions of the organization. After all, they’re the ones most familiar with it.

They’ve even written books about it. Seriously. Each year employees are asked to express their thoughts on what the Zappos culture means to them, and the results are compiled in their annual Culture Book. The 2008 edition is nearly 500 pages!

[Note: Special thanks to Zappos.com for permission to cite the following excerpts here.]

Zappos Culture – from the CEO’s perspective

To explain what the Culture Book is all about, here’s part of the book’s introduction by Tony Hsieh, Zappos CEO.

“… In order for us to succeed as a service company, we need to create, maintain, and grow a culture where employees want to play a part in providing great service. I’ve been asked a number of times what the company’s biggest asset is, and my answer is always the same: the CULTURE.

“As we grow as a company and hire new people, we need to make sure that they understand and become a part of our CULTURE. This is the purpose of this book – to provide a glimpse of what the Zappos CULTURE is all about to new hires, prospective new hires, our vendors and partners, and anyone else who might be interested.

“So what is the Zappos CULTURE? To me, the Zappos CULTURE embodies many different elements. It’s always looking for new ways to WOW everyone we come in contact with. It’s about building relationships where we treat each other like family. It’s about teamwork and having fun and not taking ourselves too seriously. It’s about growth, both personal and professional. It’s about achieving the impossible with fewer people. It’s about openness, taking risks, and not being afraid to make mistakes. But most of all, it’s about having faith that if we do the right thing, then in the long run we will succeed and build something great. …

“Of course, the Zappos CULTURE means different things to different people, so I thought the best way for people to learn what the Zappos CULTURE was all about was to hear from our employees directly … “        © 2008 Zappos.com, Inc.

Zappos Culture – from the Employees’ Perspective

Here’s a sample of contributions from three employees:

To me, Zappos Culture comes back [to] our mission statement: To live and deliver WOW. … Sometimes you’re delivering it and sometimes you’re receiving it from our fellow friends here, but there seems to be an ever-constant saturation of WOW. To truly understand what WOW is, I think the following statements describe it best:

  • WOW is waking up in the morning and not dreading work.
  • WOW is having Christmas in July taken seriously (full tree, presents, and everything) 
  • WOW is having a random Nerf Gun fight.
  • WOW is having the power to make decisions and being able to stand by them. 
  • WOW is saying that the company you work for cares about people and really means it.”

“Zappos Culture is all about building open and honest relationships through communication. This is the first place I have ever worked where time is taken to understand what you are feeling, thinking or contemplating. Because of this open communication, problems are resolved quickly, feelings are hurt less often and one can stay on track at being the BEST at delivering WOW.”

“Like a joyous occasion, Zappos Culture is one to be had. A culture rooted in great ideas filled with smiling faces, pleasant greetings, superb service, good intent and plenty of generosity. (And don’t even get me started with the abundance of free food and, of course, happy hours :)). A culture that is like none other; it’s almost surreal. A culture that begs for participation and strives on spirit. A culture that is irreplaceable. Zappos Culture – a culture worth the experience.”
© 2008 Zappos.com, Inc.

For more “WOW!” check out the ‘Inside Zappos’ blog … and while you’re at it, shop around Zappos.com to get a customer’s perspective.

Categories
Engagement Marketing

Internal Marketing Spotlight: Zappos (Part 2)

I’ve learned a lot about Zappos.com since my tour there, and I continue to be impressed with the organization and its brand. Here’s why.

Zappos works to ensure its employees feel a strong bond with and within the company.

  • With more than 1700 employees operating from the corporate office in Las Vegas and its fulfillment center in Kentucky, Zappos considers itself “One company – two locations.” To “build a positive team and family spirit” (one of Zappos’ core values), employees travel in teams to visit the other location and experience the work done there.
  • Team-related activities reinforce cohesiveness, such as periodic department parades through the office. One of my favorite examples is the Finance Department and its weekly “Random Acts of Kindness” award  given to fellow employees.
  • Zappos encourages employee celebration with major employee gatherings that include an annual summer picnic for employees and their families. It also hosts a special Vendor Appreciation event and even closes the office for a few hours so that ALL employees have the chance to attend.

Zappos invests in developing its people.

  • All new employees working in the corporate office, regardless of their assigned jobs, go through extensive training in the Customer Loyalty Center (i.e., the call center) to learn about the heart of the operation. It not only gives employees an appreciation for core customer service and interaction, but enables them to pitch in during peak times.
  • Zappos hires for both proficiency and culture fit. You may already be familiar with their unique practice of offering to pay prospective employees to quit.
  • As part of its training & development, Zappos maintains a library of management and motivational books for its employees. Book cases line the lobby of the Las Vegas office with these books that are free to Zappos employees, vendors, and visitors.

Zappos engages its employees and customers with open communications.

  • Is there anyone familiar with social media who doesn’t know about Zappos’ use of blogs and Twitter? All levels of employees, from the front lines to senior management, communicate this way – think of it as “employee-generated media.” These conversations can be followed by customers and anyone with access to social media, including competitors!
  • The company also communicates in more traditional ways, such as an “All Hands” meeting, a annual company-wide forum (held in the Las Vegas and Kentucky locations) in which management shares how the company is doing.
  • Combining traditional and social media enables communication to flow openly at Zappos: top-down, bottom-up, and laterally.

Coming up next

Effectively engaging employees, investing in them, and communicating with them openly & honestly – these are just a few of the many things that contribute to Zappos.com’s success. In my next post I’ll share what the Zappos brand means from the employees’ perspective.

Categories
Customer service Engagement Marketing

Internal Marketing Spotlight: Zappos (Part 1)

I’m excited to feature Zappos.com here as a company that truly embodies what employee-customer care is all about. I was fortunate to tour their headquarters office this summer and will share my impressions + what I’ve learned about the company since then, but first a little background.

The Zappos Brand: Legendary Customer Service

Zappos.com started in 1999 as an online shoe retailer and has expanded its product line to include clothing, accessories, and more. It has more than 1700 employees who serve 8 million+ customers, of whom 75% are repeat customers.

Zappos is aligned around one mission: to provide the best service possible. This reflects their ‘WOW philosophy’ where the goal is for every customer interaction to result in the customer saying “WOW!” (Check out this post from a customer who loves Zappos.)

My initial impressions of Zappos

WOW! also describes my initial reaction to the people I met and everything I observed during my tour there. The atmosphere I encountered in the company’s corporate office in Las Vegas appeared to be fun, funky, friendly, and frenetic. There were the popcorn machine and the peanut dispensers on the front desk in the lobby area … Christmas-in-July holiday decorations … the continuous video showcasing the fulfillment center’s state-of-the-art technology for sorting merchandise … and a steady stream of employees flowing through the office.

Renna, who works at the Help Desk (an in-house concierge service) gave me a tour of the place, carrying a flag with her (symbol of a tour-in-progress). The main office I visited is one of several buildings on the Zappos campus in Las Vegas, and it’s crowded with cubicles that are decorated to reflect both individual tastes and the employee’s respective departmental culture. Almost everyone works in a cubicle-type space – including the company president. The only staff members in traditional offices with doors are those in legal (confidentiality reasons) and IT (temperature control for sensitive equipment).

Zappos VIP Sybil Stershic  

Midway through the tour we stopped at corporate coach Dr. Vik’s office where my picture was taken and added to the gallery of VIP photos that line his office. I also visited the lunch room/kitchen area where lunch is provided free for all employees – all three shifts that work around the clock.

After my tour, I spent some time talking with Donavon Roberson, Help Desk Operations Manager, and Mark Guadagnoli, director of Zappos University (aka the ZU Keeper) to gain additional insight into their organization. When I asked Donavon about Zappos.com’s competition, his answer blew me away. Instead of naming other major online retailers, which is what I expected, he told me their competition is “Bad customer service.”

More to come

I’ll share more about how Zappos takes care of its employees in my next post, so stay tuned.

Categories
Engagement

Interview with Kevin Burns, Attitude Adjuster (Part 1)

How many people do you know use “Attitude Adjuster” as a business title? Kevin Burns does. He specializes in Corporate Personal Development, helping companies develop their people in order to develop better and stronger organizations. His work is based on the premise “that business gets better when the people in the business get better.”

I met Kevin earlier this year when he graciously hosted me as part of my virtual book tour. Given the fascinating nature of his work, I asked him to share his thoughts on employee development.

Note: I’m posting this lengthy interview in two parts. Here Kevin addresses how attitude is related to employee engagement and the differences in employee engagement among the generations. My next post will continue with Kevin’s views on technical vs. soft skills training and what surprises him about corporate work-life.

QSM: How are Attitude and Employee Engagement related?

Kevin: Employee engagement IS an attitude. It’s an attitude based on values, morals and ethics instilled within the individual. If an employee was never taught or learned that their word is golden, then they will never really feel compelled to be fully engaged on the job nor will they ever go over and above the bare minimum in the performance of their duties.

If, however, one of the employee’s values is to keep their agreements and not allow excuses or justifiers to stand in their way, they will perform the job to the best of their abilities. That employee understands that by accepting the offer of employment in the first place, there is an expectation that they were hired as simply the best candidate and carry within them a belief that employment is a privilege and not a right.

People who have a strong set of values and a good sense of doing what is right will always perform their duties to their capacity and will engage themselves in their work.

It is for that reason that I believe that employee engagement is not necessarily something that can be taught directly but, in fact, can only be instilled by soft-skills training: personal development, personal leadership and values-based life strategies. To employ someone in a position where the values of the job are in conflict with the employee’s set of personal values is a waste of a company’s time and money. You can’t fully engage an employee doing a job that goes against everything they believe and expect the employee to give up their own personal and life-long held views of the world.

It is for this same reason that a company’s values need to be developed not by a bunch of expensive-suited executives, but instead must be a grass-roots effort from the people who actually do the work. If the employees develop the corporate values, the chances of the employees engaging themselves in the delivery of those same values are far greater. Corporate values cannot be thrust upon the employee. There has to be a buy-in.

Engagement comes from values. Any and all discussions to the contrary just don’t line up. Employee engagement is an attitude. Without a strong sense of self-worth, the value of the contribution by that same employee will be much less.

To attempt to fully engage an employee with low self-esteem or poor personal values would be futile to any organization. Develop the individual at the personal level and the engagement on the job naturally increases.

QSM: In your experience, what are the differences in engaging the different generations (i.e., Boomers, Gen X and Millennials)?

Kevin: My answer to this question may seem like a bunch of rash generalizations since one cannot lump all Baby Boomers together and claim that they all have the same value and skill sets nor can you expect that all Millennials have the same sets of values because they were simply born around the same time.

This whole concept of labeling workers based on the year they were born seems a little ridiculous to me.

However, with that being said, let me say this. As Baby Boomers, we (I am one) were taught the value of achievement. In other words, in high school, winning a gold medal in the 800 meter race was met with perhaps nothing more than a grunt from a father, whereas today, parents will throw a celebration for the child who comes home with a “participant” ribbon.

We have become a much softer society who perhaps tries to shelter our children from the realities of the world. This is the Oprah generation – the generation whose family watched Oprah just prior to supper and has a family discussion about what Oprah said today. These same kids, who are now grown, have entered the workforce with a much more pronounced spiritual side yet at the same time have had many of life’s rewards simply handed to them instead of having to earn it.

Boomers have earned everything they have; Millennials may have had most of it handed to them. That doesn’t necessarily mean that Millennials don’t have a strong values set. Some do and some don’t. Some Boomers work hard and some don’t. Some Gen X’ers have learned the value of applying themselves in their pursuit of excellence and some have not.

However, there is a skill set that the average Millennial possesses that is mind-boggling to the average Boomer: the propensity to use technology. For most Baby Boomers in the workforce today, remembering back to childhood and not seeing a TV remote control in the house until they were into their teens is not uncommon. Color cable television was a celebration as a huge leap forward into new technology. I could make a comment about “Pong,” “Pac-Man” and Commodore-64’s here but suffice it to say, we’ve come a long way in a short period of time.

The Millennials, however, have never had a day that didn’t involve the use of computers, cell phones or portable entertainment devices. For Boomers, a chat was something you did over coffee. For Millennials, chatting is something you do over Java.

Boomers grew up with the notion of finding a good job that they might become proficient at. Millennials have entered the workforce searching for a good fit as opposed to a good job. Each Millennial has a skill set that they hope to be able to use. They don’t work well for organizations that happen to have a position and are just looking for a body to fill it. Millennials want the job to fit them and not the other way around. And at the end of the day, Millennials will leave the work behind whereas Boomers will take it home to finish. Boomers hope to one day achieve a decent work-life balance. Millennials are looking for a life-work balance: life comes first and work comes second.

And when you hire a Millennial, you hire their entire network of friends. MSN, Twitter, SMS and other forms of electronic hand-holding by their friends will be turned on in the workplace. The Millennial may be at work for you, but they are still connected to their network. Ask them to shut it off during work hours and you will be faced with filling a vacancy in your organization.

Old school management does not work in today’s Millennial market. Give a poor performance review to a Millennial and that employee’s mother may call to ask why. Why should a job-performance review be any different than a parent-teacher meeting?

But how do you engage the opposite ends of the workforce spectrum? For Boomers, it’s a matter of laying out the project parameters clearly: time frame, responsibilities, expectations and hierarchy within the project. Then, step out of the way and let the Boomer get it done. Oh, and if you expect it will take the whole day to get it done, expect it to be worked on overnight.

As for a Millennial, ask for input on how the project should come together. Give them the responsibility to make the decisions, don’t make them climb a ladder of hierarchy to ask a question, loosen the time frame [e.g., with an approximate deadline instead of an exact one], and offer the opportunity to address key areas you’d like explored as well as anything they might feel is of value to the project. If you would expect the project to take all day, don’t. In fact, expect it in your email inbox completed by noon that same day.

As for praise, give a Boomer an “attaboy,” privately with a handshake and heartfelt thanks. As for Millennials, you guessed it, a very public celebration.

QSM: I’ll have more on Kevin’s interview coming up in my next post. In the meantime, check out Kevin’s blog.

Categories
Engagement

Managing Employee Morale in Uncertain Times

I am SO thankful that I no longer work in banking, and I truly feel for my colleagues who are still there. With all the economic turbulence these days, employees are walking on egg shells wondering about their jobs.

But fears about job security aren’t limited to the folks in financial services. These days, managers in almost all economic sectors are grappling with the question: How do you bolster employee morale and confidence when the future is so uncertain? I found some great management advice that addresses this question. According to Melcrum’s Source for Communicators, there are a number of ways you can help lift employee morale. Here are three of my favorites:

  • “Encourage people to recognize their own achievements and then to go public.”

The reality is managers are not always proactive at catching their employees doing something right. And if we have to wait for others to recognize our accomplishments, we may be waiting a long time. The Source shares a story about a manager who created this special sign for her employees to use to get her attention: “I just did something wonderful. Ask me about it!”

  • “Create small victories.”
    Since stretch goals may be overwhelming, build in progressive smaller goals that can be achieved and recognized along the way (i.e., “small wins”). This also keeps employees focused as the larger goal becomes more attainable in the long run.
  • “Prepare for the future.”
    Carve out time with staff to consider and discuss contingency planning. We spend so much time putting out office fires that we forget the importance of preventive firefighting.
Categories
Customer service Engagement Marketing

Employee Engagement and Customer Focus

I found another study that demonstrates the strong link between employee engagement and the bottom line: this one from Watson Wyatt, a global consulting firm. (Note: earlier this year I wrote about similar results from research conducted by Wharton and Towers Perrin.)

Watson Wyatt’s 2007-2008 Global WorkAttitudes Report also examined the drivers of employee engagement across global regions and employee segments. Among its key findings:

“The drivers of employee engagement are similar around the world: effective communication, competitive compensation & benefits, a clear customer focus and confidence in the strategic direction & leadership of the organization.”

Among the “usual suspects” listed as key drivers of engagement – communication, compensation, and leadership – I was surprised to find customer focus. I have always believed that being customer-focused starts with being employee-focused (take care of employees and they’ll take care of customers) so finding customer focus as a driver of employee engagement is an interesting twist.

Here’s how it was explained in one of the report’s key findings:

“Customer-focus is a key driver of employee engagement across all regions. Organizations whose HR programs emphasize delivering superior customer service – including performance management related to excellent customer service and satisfaction – can expect to increase employee engagement and connect with key performance objectives.”

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Customer service

Happy National Customer Service Week!

Next week, October 6-12, 2008, we celebrate National Customer Service Week as a way to raise awareness of the importance of customer service and acknowledge those who provide it.

This ‘holiday’ is supported by the Institute of Customer Service (ICS) – a not-for-profit professional association whose mission is to “lead customer service performance and professionalism … [and to be] the “touchstone for those whose focus is on the delivery or world-class experiences.” According to the ICS, National Customer Service Week is all about “recognition, reward, informing, team work, morale boosting, and fun.”

OK, this may be perceived as self-serving, public relations/promotion, but so what? I think it’s a great way to recognize customer service as the critical (and often under-appreciated) function it is in most organizations.

To honor National Customer Service Week, here’s what I suggest:

  • If you’re an employer – acknowledge everyone in your organization who does a great job of taking care of customers.
  • If you’re an employee – acknowledge your fellow co-workers who do a great job in taking care of you as an internal customer.
  • If you’re a customer – acknowledge those employees who take do a great job of taking care of you … i.e, in addition to continuing to do business with them, let them know you appreciate their efforts.

Please note: You can be creative in how you express your acknowledgment, but you don’t have to be extravagant about it. A simple and sincere “thank you for all you do” is a great way to show your appreciation.

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Customer service Marketing Training & Development

“Management Lessons from Mayo Clinic” That We Can All Learn

Every service provider is challenged with engaging employees and creating systems to deliver a positive customer experience, but none more so than those who work in healthcare. So what can be learned from the Mayo Clinic? This excerpt, from the book Management Lessons from Mayo Clinic by Leonard Berry and Kent Seltman, explains it best:

“Imagine what can be learned from an organization that serves customers who:

  1. arrive with some combination of illness or injury, pain uncertainty, and fear
  2. give up most of their freedoms if hospitalized
  3. need the service but dread it
  4. typically relinquish their privacy (and modesty) to clinicians they may be meeting for the first time.

“Mayo Clinic and other well-run healthcare organizations serve just these kinds of special customers who are called patients and still earn high praise and fierce loyalty from them. Yes, indeed, a successful healthcare organization offers important lessons for most business organizations.”

Inside Mayo Clinic

There’s quite a story behind the powerful and enduring brand that is the Mayo Clinic with its emphasis on patient-first care, medical research and education, an integrated approach to healthcare, and a strong partnership between physicians and administrators (an adversarial relationship in many hospitals). Co-authors Leonard Berry, Distinguished Professor of Marketing at Texas A&M (one of my mentors), and Kent Seltman, former Marketing Director at the Mayo Clinic, studied Mayo Clinic’s service culture through in-depth interviews and observing patient-clinician interactions.

Their book paints a fascinating picture of the history and culture of Mayo Clinic, including how it engineers its internal systems to support its patient-first mission. Best of all, the book contains great lessons on creating and managing a brand that has achieved incredible growth in a difficult and challenging industry while staying true to its core values. The story is even more amazing given ongoing medical technological advances and the financial and political pressures placed on the healthcare profession.

Listening to the Voice of the Customer

Berry and Seltman share numerous quotes and testimonials from patients, their families, doctors, nurses, administrators, and their families, to illustrate the Mayo Clinic story. (Some of the anecdotes brought me to tears.) Even with Mayo Clinic’s unique position in healthcare, the authors do a great job discussing lessons applicable to other service firms in the “Lessons for Managers” section throughout the book.

One of my favorite chapters describes how Mayo Clinic manages the different types of clues that positively impact the customer experience:

  • demonstrating competence to instill customer confidence – e.g., with a collaborative team approach to patient care and integrated & timely access to medical records.
  • influencing first impressions and expectations – such as the design of physical space to convey a sense of healing and calm to reduce the stress of patients and staff.
  • exceeding customer expectations – including extraordinary sensitivity to patients and their families.

I recommend Management Lessons from Mayo Clinic to all service management, marketing and branding professionals … and everyone who works in healthcare.

Caution: the only downside after reading this book is the possible dissatisfaction with most healthcare institutions. If my family or I need critical care, my first choice would be Mayo Clinic!