Friends,

Some of you may remember this posting from over a year ago.

As the need to differentiate becomes more and more critical, I thought I would have Johnny remind us
how its done.

This is a perfect example of the importance of the experience and the value of differentiation.

Enjoy.

Click for Johnny’s Video

Thank you.

At the recent inaugural meeting of the Chief Officer Council held at Oracle Headquarters and hosted by Jeb Dasteel/CCO of Oracle, I was invited by 50lessons.com to tell a few stories about customer service and the role of the CCO.

In my life, stories have always been a source of innovation.  For some reason, when we listen to other people’s stories we see our own situations from a different angle, this is always helpful.  For this reason I thought it may be interesting to post the stories.

These “Lessons Learned” will soon be offered on the 50lessons.com website and published in Harvard Business Press’ new book series “Lessons Learned”.

I would like to thank our friends at 50lessons.com for their consideration in the posting of these videos.  Also, since I mentioned him twice, I’d like to thank Don Szczepaniak as well as Lorraine Robbins and the entire Panasonic contact center team for all I learned from them over the years.  They are true professionals who make great customer service look easy.

Rudy Vidal
Committed to XCL

1.

2.

3.

4.

5.

6.

Mr. Enderle explains very eloquently the benefits of services organizations in their ability to strengthen relationships post sale.  I could not agree more.

Imagine if sales organizations understood that the signing of a contract was only half the revenue and value, and that the other half came as a result of our alignment and authenticity to our purpose as a company, as people.

Imagine if sales organizations considered the lifetime value of a customer the true goal.

Imagine if sales organizations saw themselves as the conduit to future value for the customer, the matchmakers for a long term relationship.  Many do.  But we usually don’t pay them for that, we certainly don’t measure that.

Imagine if sales organizations and service organizations were on the same team.

When was the last time you were happy to see a sales person from a company you didn’t know.

Imagine.

Thank you for your post Mr. Enderle.

Dell Buys Perot Systems: The Hidden Benefits | Blogs | ITBusinessEdge.com

2. Management Ownership

It’s interesting to note that the three cultural components in fig.1 are all under control of management.  In spite of this, the culture is often seen as an independent force, only to be addressed as a last resort.  It is not uncommon for managers to refer to the culture as “they,” perceiving it as the independent sum of employee attitude.  Experience shows, more often than not, that management does not take full responsibility for the culture, but at times may perceive it a cause of an inability to improve performance.

Another aspect of ownership that cannot be overemphasized is the need for management to lead by example.  Management, from supervisors to the president, need to show they understand and live the “WHY.”  Most of us assimilate examples and parables easier than literal explanations, emails or speeches.  When the workforce sees management in action, they can instantly translate what they saw into potential actions in their area of influence.  Walking the talk makes all the difference.

A successful shift is unlikely, without management ownership
of the current and future cultures.

3. Ensuring the Need for A Culture Shift

Many planned culture shifts are not necessary.  In many cases the culture is well aligned to the purpose and able to deliver, but may need incremental adjustments in one or more of its components.  It should be noted that changes in the components might not result in noticeable cultural shifts until certain thresholds are crossed.  Therefore, within these limits we are able to make adjustments for improved performance without needing to address a shift in culture.  The less invasive option is usually recommended.

It is important to assess the quality of the culture, based on its alignment to the purpose, and not based on organizational performance.

Cultures are less often a cause and more often an affect.

Next Post:

4. Clarifying the “Purpose”
5. Identifying Needed Cultural Qualities
6. Employee Engagement

Rudy Vidal
Committed to XCL

Copyright 2009 Vidal Consulting Group LLC

In this series  we will cover 10 considerations for creating successful cultures shifts in support contact centers.  Although not a complete or exhaustive list, it calls attention to areas often overlooked or of critical importance.  These considerations can apply to other types of organizations and contact centers.

These postings will shortly be compiled into a whitepaper available on our website.  If you’d like to receive a FREE copy, please click here and we’ll email you a copy once compiled, or click here to be notified of updates.

Introduction
Contact Centers form very specific kinds of cultures, which can present challenges not usually seen elsewhere in the organization.  The proactive management of cultures is often avoided because it is seen as a difficult and even dangerous long-term endeavor.  This does not have to be the case, in fact, the proactive management of cultures increases the likelihood of success and is rewarding to all those involved.

Bob Greenberg, CMO of Panasonic, a dear friend and mentor, once said to me: “left alone, disarray and lack of grace always prevails.  If we want to maintain grace and beauty in our systems, we must be involved”.  An example is: A house left alone will deteriorate faster than one that is lived-in and cared for.  For the same reason, we need to nurture cultures over time.  Left alone, the forces of everyday business as well as changes in management and staff can move cultures away from the desired focus.

Through experience, we can list a few guidelines:

-        Cultures require management ownership
-        Cultures are not the employees.
-        Cultures are usually the effect, not the cause.
-        Cultures cannot be changed; they are either shifted or damaged.
-        Culture shifts cannot be mandated.  Mandate = Damage
-        Cultures must be seen as a labor of love.

We feel strongly about these factoids forming a foundation for success.  If you disagree, we’d love your comments.

1. Definition

Although there is room for interpretation, an over-simplified definition of a corporate culture is offered as:

“The  generally accepted norms and values of an organization that result in a behavioral or operational paradigm”

In short, an organization adopts certain norms and values that result in certain consistencies in the way it thinks, feels and acts.

Considering the definition we are tempted to equate “culture” to “workforce”.  But that is an incomplete view.  The culture is not simply the sum of the workforce, but is instead, the result of what can be considered a “chemical” reaction between People, Purpose and Environment.

This interaction results in the set of values and norms that allow us to predict organizational behavior under certain conditions.  To the extent that these norms and values magnify or support the core purpose of the organization, we can say we have a satisfactorily aligned culture.

Let’s cover the components briefly:

People:
As mentioned, the people component is not limited to employees but include all those in the interaction: management, customers, vendors as well as employees.  Some organizational behaviorists may include special external influencers such as labor unions or immediate family.

The importance of managing the people component is obvious, but the reason often eludes us.  We must manage the people component because it is “the people” that set the stage for the purpose, the environment and the chemical reaction and it is in “the people” that the chemical reaction takes place.

People are the most important asset of the culture, nothing happens without people.

Purpose:
In today’s experience economy (“The Experience Economy“, Pine and Gilmore), products and services are no longer considered long-term brand differentiators.  The market differentiators have now become “experiences”.  Experiences are a broader output and are driven by the organization’s intention or purpose.

The purpose of the contact center goes beyond the pragmatic “job” to be done, it reaches for the “WHY” or essence for which the contact center stands. (see “Start with Why”, Sinek)

By aligning our departments, employees, policies, processes, etc., to this “WHY”, we can create consistent and repeatable experiences for our customers across the organization.  A clearly defined purpose simplifies decisions, facilitates empowerment, promotes employee engagement and creates focus.

The purpose defines the required culture.

Environment
The environment is the sum of all other variables creating the conditions for the “chemical” reaction.  It is comprised of processes, policies, systems, tools, expectations, metrics, etc.  The variables we normally manipulate to improve our performance are most often part of the environment.

In Short
The Purpose defines the Culture, while the People and Environment make it possible.
By managing People, Purpose and Environment we can shift cultures.

Next Posting:
2. Management Ownership
3. Ensuring a Need for a Culture ShiftRudy Vidal

Committed to XCL

Copyright 2009 Vidal Consulting Group LLC

Xtreme Customer Loyalty is achieved by consistently creating positively emotional customer experiences.

Trust begins when the customer perceives the event to be a purposeful intention by the brand.

If the effort is not obvious, let them know you cared enough to do it.

here is perfect example from my dry cleaners.

Rudy Vidal
Committed to XCL

While putting the finishing touches on a white paper on contact center cultures, this spilled out onto the keyboard.
It’s may not be right for the white paper but I thought I would share it.
(This is what happens when you listen to Schubert while working.)

Contact Centers form very specific kinds of cultures, which require special care and attention, and present challenges not usually seen elsewhere in the organization.  They are labors of love.

At times, it is difficult to discern a contact center culture from that of a production line, a command center or a hospital.  The origins of the contact center workforce is often diverse, at the same time, constant and committed.
Contact centers may have the highest turnover rate of any corporate discipline, but are kept running by devoted individuals that often offer entire careers to the service of those they don’t know.
A contact center reads the life-pulse of any organization, feels the tremblings of a failed business and the trends of immense growth, usually before the rest of us.
Customer contact centers hold the key to the future of our businesses through their access to the hearts and voice of our customers.  Yet, we often see them as cost centers, necessary evils in our effort to create brands.
Contact centers collect the leaks of corporate miscalculation and work knee-deep in water everyday.
Customer contact centers are one of most powerful touch-points we have, and the most directly impacting tool in creating Xtreme Customer Loyalty.

Support and visit your customer contact center, it’s good for business.

Rudy Vidal
Committed to XCL

This story is sad, but a little funny at the same time.

Continental Airlines Flight 47 kept about 50 passengers on this regional Jet on the tarmac overnight.
Fifty people in a regional Jet with babies and backed up bathrooms can be a pretty scary thing.

The airplane was diverted and landed in Rochester about 12:30 am.  Passengers were not let off of the plane because the security officers had already left for the day.  The airport reports that it told the crew they could deplane, but the crew disagrees. (full story on USA TODAY.)

Of course, we can expect confusion when a flight is diverted after hours to a small airport that is not serviced by the airline.
But what a difference a little front-line EMPOWERMENT would have made !

A crew member calling the police on their cell phone saying – It seems very unreasonable for us to keep 50 people in here all night.  Can you help us reach some authorities that could give us options? – Instant emotion, Instant Loyalty.

Take a chance on Empowerment, it works !

(I wonder what a SouthWest Airlines crew member would have done)

Rudy Vidal
Committed to Extreme Customer Loyalty

Copyright 2009 – Rudy Vidal

Yesterday, I had the pleasure of speaking to a group of CCNG members in Cincinnati, and the topic of contact center cultures came up, again.  Seems to be a popular theme lately, so I thought a couple of points on contact center culture management might be nice.

Because it’s rare that people agree on the definition of corporate culture, I feel I should put one in. So, here is my definition (since I don’t like wikipedia’s)

A set of generally accepted norms and values that result in the behavioral/operational paradigm of an organization.

Regardless of the type of organization, I have found some consistencies with cultures:

• Cultures require management ownership
• Cultures cannot be changed.  They are either shifted or destroyed
• Cultural shifts cannot be mandated.  Mandate=Destroy
• Cultures are not the employees
• Cultures are usually the effect, not the cause.
• Cultures are a labor of love.

Key Levers

Before any culture work takes place, management must assume responsibility for the current and future cultures.

Culture management is much like gardening.  When the harvest is poor, an expert can easily point to our errors: we planted at the wrong time, used the wrong soil, provided too much or too little water, etc.  However, when the harvest is plentiful, we can hardly take credit for the miracle of nature, when all we did was ensure the right conditions.  Management’s responsibility is to place the right components in the right conditions and keep the balance.

When boiled down I find the key levers to be

(Expectations + People&Capabilities + Environment)/Purpose

Ensure clear Expectations.
Ensure the right People have the right Capabilities (knowledge and tools)
Provide an Environment conducive to gaining the desired results.
Alignment of each to a clear and accepted Purpose

The shifts in culture are determined by the balance of these variables in relation to the corporate purpose.

Please note: All of these variables are under the sphere of management control.  Again, management ownership is key.

Simplified Dynamics
When the key levers are sufficiently aligned to the purpose of the organization, things tend to go well.  The culture rarely feels problematic and business issues can usually be addressed through specific and focused action – ie. changing a policy, adding a person, adjusting a process etc.

When one or more of these key levers are sufficiently misaligned with the overall purpose of the organization, the culture will shift in an effort to regain purpose.  The shifts seem to happen in 2 major ways:

1. The culture will compensate through one of the key levers  (ie: people may work harder) or

2. The culture will adopt a new value system to reconcile the imbalance and justify the misalignment.

An oversimplified example:
A contact center is asked to cut costs through headcount reductions, and expected to increase its service levels.  The culture may keep alignment to the purpose by working harder.  If this solves the issue and is sustainable, the shifted culture compensates.
If the adjustment is not sufficient to achieve the management expectations, a new value system may be adopted – “Management is Unreasonable”.  This newly added cultural value will help or hinder the culture’s effectiveness (alignment).  As before, if it helps, it is accepted and maintained.   If it does not help, yet another value will be formed to further cover the gap – “the harder we work, the more they expect”.

In short, any time the culture has a continuous perception of being ineffective or misaligned, a new wave of value adjustments will take place to address the gap.  This will continue until the culture sees itself realigned or until it reaches “shift saturation”; the point where it stops making  adjustments for the overall benefit of the system.  At this point, shifts become personal in nature (at the employee level), and the inherent power of cultural wisdom is lost.

We can’t over-emphasize the importance of communications (to ensure correct perceptions) and the maintenance of balance to avoid a a series of shifts that do not serve the company well.  It is also important to keep in mind that the key levers for change hold considerable power in managing the culture and the effectiveness of the business.

Cultures Drivers
Although I know organizational behaviorists will not appreciate this oversimplification, I’ll throw caution to the wind in exchange for a graphical explanation of  cause and effect.

-    Management expectations or beliefs, set the wheels in motion.
-    These expectations result in the creation of policies & procedures.
-    The policies and procedures create an environment which promotes (or not), the attainment of the management expectation.
-    The interaction of all these with employees (at all levels), produce a cultural paradigm.
-    This culture interacts with customers.

The power of WHY?
Most management with whom I speak regarding culture are looking to “change it” in order to gain better business results.  However, the culture is rarely the cause of good or bad business results.  Unless the business model or market expectations have drastically changed, I find the culture is usually effect of an underlying cause.  Although it may definitely be problematic, it is rarely the cause of the problem.

I believe many of the difficulties in today’s corporate cultures are the result of an unclear or undefined purpose.

Most companies know WHAT they do
Some companies know HOW they do it
Few companies know WHY they do it.
See Simon Sinek

Without this clarity of purpose, the culture is usually left to rely charismatic leadership, which when changed, causes havoc and great loss of direction.

Next post: considerations for creating culture shifts.

Rudy Vidal
Committed to Extreme Customer Loyalty

Copyright 2009 – Rudy Vidal

At times I find it difficult to illustrate to clients the idea of emotional customer experiences that transcend the product or service.  They often feel obliged to openly explain the product features or benefits in order to present a clear value proposition.

Although features have their place, in a commoditized market they are no longer effective differentiators of brand.  At best, and only marginally, features differentiate products.  In fact, continuing this practice can put entire industries in insatiable races to give customers more for less.

As we know, for the time being the differentiating power is now in the experience.  So, I have decided to start compiling examples of what I think are well executed experienced based campaigns so I can show the point in action (A video is worth a thousand words).

I thought it would be interesting to post one of my favorites, take a look: IQ font

In this example, Toyota uses the concept of typesetting fonts to demonstrate a feature, without mentioning it.  In doing so, it creates an experience outside of our expectations that reveals things about Toyota that for me, makes it more  human, organic and real.  The emotional requirement is achieved (we would never expect a car company to relate itself to typesetting fonts), yet the effort is still in context with the brand.  But wait, there is more.  The font is downloadable and available for us to use, thereby continuing the experience and incorporating the brand into our daily lives.

In today’s market, a company that is simply surving is no longer intersting.

Would love to hear your comments.

Rudy Vidal
Creating Profitable Loyalty