Whether you like it or not, your organization has a culture.
Whether you’ve designed it or it just happened, the current culture has been perfectly implemented to deliver the results you are currently getting.

If you would like your results to be different then you have 2 choices:

1) You can drive your organization to do things differently and then put policies in place to make sure it doesn’t deviate

or you could . . .

2) Create a culture that does things a certain way simply because it values, takes refuge in, and is strengthen by an inherent “way of being”.

Some will say option 2 is a great idea but unrealistic, and therefore, option 1 is the only option.  Not so.

In our work we see the most common source of difficulty in managing cultures to be lack of clarity.

Think about it, unless we are clear on the kind of a building we want to build, it will be difficult to bring the right tools to the job site, difficult to order the right materials, difficult to implement an efficient floor plan and almost impossible to ensure those using the building are comfortable inside its walls.

Relevant and effective cultures feed off of clarity.  The more clear, the more cohesive the culture.

If you were to ask employees “Why does our company exists”, how many answers will you get?  Is there clarity?

One of the roles of upper management is to offer and feed clarity.  Is your management team providing clarity that results in cohesion?

Here is an example of a management effort to create clarity.

The important thing here is the effort towards clarity in “Why” we exist and “How” we do things around here.

When relevant and effective cultures arise, “WHO we are” becomes much more important than “WHAT we do.”

If you like to read more on cultures, here is a white paper that might be helpful – download

All the best.

Rudy Vidal
Customer Loyalty is Never and Accident !
XCL

Over the years, we have followed shifting customer values that help to differentiate brands.
As we follow these developing trends we often gain clarity in interesting areas.  Clarity in the past couple of years came in a better understanding of certain segments of customer loyalty.
We have watched loyal customers for some time and have a good understanding of their make up.  But within these loyal customers, there are some that stand out.  These “raving loyalists” go beyond loyalty, they are willing to defend and represent our brand.  They are somewhat more engaged than those defined by the NPS methodology as “promoters.”   The raving loyalists feel a personal and emotional bond with the brand which causes them to not only recommend but defend and represent the brand.  Think of hard core Apple users; it would be an understatement to say “hardcore Apple customers have a strong willingness to recommend.”  Their bond to the brand is clearly more emotional than that.

Raving loyalists are not only important because they are loyal and drive additional business, but are also part of the “innovators” and “early adopter” set in the market.  It is they, who control access to the mainstream market (see the Law of Diffussion of Innovation – beautifully explained by Simon Sinek here).

In looking at these raving loyalists we find they have the following characteristics:

1. Raving loyalists believe they perceive the company’s purpose or mission (It doesn’t matter if they are right or not.  In this case perception is reality.)
2. Based on their consistent experience with a company or brand, a raving loyalist perceives the company or brand to be authentic to its purpose or mission.  Simply put, the customer thinks the company walks the talk.
3. The raving loyalist perceives an alignment between the company’s values (the source of the authenticity) and their own personal values.

When they see this alignment of values, the customer feels personally represented by the company or brand. In turn, becoming an agent of the brand that represents him or her.  This turns into an emotional bond of reciprocal kinship.

We see these types of relationships between fans and sports teams, within certain ethnic or socio-economic strata, in nationalism and regionalism, religious groups, and more specifically to our discussion, between customers and certain brands such as Harley Davidson, Apple and Corvette among many.

So, the raving loyalist who will promote, defend and represent your brand has only two overriding requirements.  They must perceive authenticity in your brand and they must feel the brand is aligned with their own core values.

Here then, are the obvious questions:

1. Do we understand our customer’s values?
2. Is our mission or purpose aligned with them?
3. Are our customer experiences across the company demonstrating consistent authenticity?

If the answer to any of these is no, raving loyalty is not possible and we have lost major ground in the battle for differentiation.

Our deepest quest as marketers and brand strategists must be authenticity.
However, authenticity is not found in an advertisement or in engaging creative production.  Authenticity is found in the operations of the company as it relates to a higher overriding purpose.  It is found in a company’s policies, processes and delivery mechanisms as experienced by the customer.

Without authenticity we cannot create deep rooted loyalty with our customers.

Rudy Vidal
Committed to XCL

There was a time when having consistently satisfied customers kept us ahead of the competition.  Those were the days when the differentiating power in the market was in products and services.  Now, as we become more and more accustomed to our EXPERIENCE economy, we begin to accept that the quality of our products and services rarely differentiate our brand.  Quality products and services are now common, expected, minimum business requirements – table stakes.  Brand differentiation and loyalty now come by way of our experience while consuming the product, service or brand.

I often ask in my seminars: “what does Barnes & Nobles sell?”  The reply is usually: “books”.
The truth is that I could do research for my next book at B&N for the next year, using their tables, sitting on their chairs, with clear access to all the books in the store, and never have to buy a book.  If B&N were really selling books, after a couple of days, they would ask me to buy something or leave.  But they don’t.  In fact, they are not selling books at all.  In stead, they are selling experiences and hoping that while we are consuming their experience (nice chairs while we read, a coffee shop, poetry readings, a children’s reading area, etc.) we will see a book we like and buy it.  Statistics show we do.

If we know our customers now value and are willing to pay more for experiences, but we continue to offer them marginally differentiated products, we should not act surprised when they ask us for a lower price.  Over 50% of the CEOs I speak with, actually believe customers DEMAND lower prices.  In most cases these CEOs are the source of unnecessary commoditization and failing businesses.   If we offer someone what they no longer value why would we expect them to pay a premium?  As long as we continue to try to differentiate our brands by the feature/price ratios,  we will always be “me too” brands.

Let’s get to know our customers and their values more intimately.  Then let’s create experiences for them that result in emotional bonds with our brand.  I know the temptation to simply lower the price is great since no one ever says no to a lower price,  but I also know if we are willing to think about our customers, talk to them, ask probing questions with humility and a sense of service, we can get to understand their values, those things that really matter to them; those things that will engage them emotionally and make them loyal.

Aligning our companies to our customers’ values is the only way we can gain sustainable differentiation in a commoditized market.
Alignments require the management of only a couple of key components: Customer Values, Corporate Purpose and Corporate Goals.  Align these three and magic will happen.

Customer loyalty is never an accident.

Rudy Vidal
Committed to XCL

In today’s commoditized markets customer loyalty is the result of consistency in customer experiences across an entire organization, from shipping and receiving to accounts payable.  Such consistency across divisional lines can not be managed effectively without considering culture.  For this reason, the topic of customer centric cultures seems to arise more and more in customer loyalty discussions.

The right culture holds the company together, committed to a common, high level purpose that inspires a certain “way of being”.  Management’s ability to effectively communicate this higher purpose and to show authenticity to it, determines the degree of cultural adoption and level of sustainability.

Clarity in communication of the higher purpose is helped greatly by a well thought out, well written statement of purpose (vision and/or mission type statements.)

There are some in management who strongly oppose the use of such statements, thinking of them as meaningless words no one ever reads.  I disagree.  An effective statement of purpose, when used and supported by authenticity in our management intentions, beliefs and behaviors can become a source of inspiration, employee cohesiveness, and clarity amidst the din of day to day business.

Below is an example of a mission statement we worked on a few years ago (shown with permission.)

MISSION
We believe an individual’s health is more important than money.
We are committed to providing optimum family healthcare where the best interest of the patient is the only consideration.
No patient will ever be turned away for the inability to pay.

- They are concise and easy to digest.
- It gives a sense of what the company does.
- It makes me want to join the club (as an employee and as a customer.)
- It provides an idea of why the company might feel this way.
- It tends to inspire others to follow suit.
- It can provide the basis for day to day decision making.
- It compels us to make more and more decisions at the customer level.

An aligned culture is the result of general employee engagement to a common purpose.

How we make that purpose clear to the organization is up to us.  Good statements of purpose are an important part of a culture management communications plan.

Rudy Vidal
Committed to XCL

This past week I had the privilege of speaking with friends at CLG Consulting, the leading firm and true masters in creating positive business change through behavioral management.  We spoke briefly about the importance leadership behavior in bringing out the greatness in employees and thereby in our organizations.

We know that leadership is important, but what is the difference between good and great leadership?

• Great leader facilitate the behaviors necessary to reach our goals.
• Great leaders create clarity of purpose.
• Great leaders keeps us aligned to the purpose and the customer values.
• Great leaders encourage behaviors that drives success while discouraging behaviors that get in the way of our success.
• Great leaders urge us to believe in ourselves and the value we bring.
• Great Leaders empower, guide and get out of the way of our individual and collective magic.

As I thought about these traits I was reminded of a video that showed so many of the characteristic and results of great leadership, in action.
Please Note: you will need audio turned up to hear the audience participation.

Take a look:

Are we striving to create clarity and cohesiveness?  Are we facilitating the right behaviors?

Great Leaders can make things happen that we never thought were possible.

Rudy Vidal
Committed to XCL

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.

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

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