Showing posts with label Customer Loyalty. Show all posts
Showing posts with label Customer Loyalty. Show all posts

Monday, January 30, 2012

Effectively balancing the “What”…

…versus the “How” as a Leader

One of the most challenging balancing acts a leader faces is determining how much they communicate what they want the desired results and outcomes to be, balanced against how much they tell those who execute the business how to achieve the desired results and outcomes. I would imagine your first response might be something along the lines of, “Whatever it takes to achieve the goals” or possibly, “ If you want it done right, you need to tell them exactly how to do it”. However, if you view the role of leader against the long-term view of business success, the answer is not so simple.


One would think communicating what to do would be the easier of the two tasks. I maintain they are both equally challenging for completely different reasons. A leader who effectively communicates what needs to be done is not merely reciting a checklist of tasks needing to be completed. It starts with translating the Vision of the business into a meaningful and tangible language for those who execute the business goals. Because the leader cannot possibly communicate every minute detail of the strategy, they must outline enough of the “What” and “Why” for the strategy to succeed. In other words, leaders must communicate their intent to the organization and it is where one of the biggest challenges occurs.


A question every leader must clearly communicate is “What does Success look like?” When the business is successful, what are people in the business doing? What are customers of the business saying about you? What are your vendors doing to support you? The more detailed the answers, the clearer the leader’s intent. Notice there is no mention of how all this occurs, only that when success does occur, this is the picture we see.


Which brings us to the communicating how to achieve the desired results. The process begins with an accurate assessment of the Attitudes, Skills and Knowledge of the team. We know that Attitude, or the Want to succeed is 75% of the overall success equation. If those who execute the business do not believe they can carry out the strategy the leader communicates to them, it is a foregone conclusion it will fail. If they believe in the strategy, success is three quarters complete! The team must also possess the requisite Skills, or how to do the functions to succeed and the Knowledge, knowing when and where to leverage the requisite skills for overall success.


Understanding the necessary Attitudes, Skills and Knowledge in the context of the leader’s intent, presents its own challenge because leaders may have differing perspectives than those who execute the business. As Anais Nin once said, “We don’t see things as they are; we see them as we are”. One only has to look at the behavioral differences between a Baby Boomer leading a team of Generation X and/or Generation Y associates. The context of the leader’s intent may be translated differently (not necessarily correctly or incorrectly, just differently) leading to less than desired results.


It all starts with effectively communicating a strategy and strategic intent to those who execute the business. If a total stranger walks up to you and asks you to describe what your success looks like, how clear is the picture you paint for them?


Lead Well!

Monday, May 9, 2011

Why should we care about…

…four generations in the workplace?

Last month, I introduced a discussion on generational diversity as the first of a two part series on the topic. In that issue we spoke of the four generations (Traditionalist, Baby Boomers, Generation X and Generation Y) currently in the workplace and some of the prevailing perceptions each has of the other. This month, we will look closer at the unique ways leaders can retain, motivate and effectively lead each of these generations individually and collectively as members of the same team.

Previously we highlighted how older generations perceive the younger generation’s work ethics as lacking in some way compared to theirs. In truth, each generation believes their work ethic is fine leading to the leader’s challenge – how to get past the perceptions. The place to start is a better understanding of how each prevailing generation (Boomers, Gen X and Gen Y) is motivated and best managed to avoid losing the talent they bring to the organization.

Baby Boomers want to be appreciated for the experience and knowledge they bring to an organization. While they may resist change, they generally do so out of dedication to the organization, which is very important to them. Giving them opportunities to mentor is a great way to show you respect their contributions. I would take this a step further and create a reverse-mentoring process where the Boomer mentors the younger generations who, in turn, mentor the Boomer on skills to help them keep up with the pace of business.

Generation X, on the other hand, is looking for more flexible schedules and the opportunity to be problem-solvers. After all, this is the latch-key generation whose Boomer parents both worked so they had to fend for themselves growing up. They typically do not need to be micro-managed but do crave feedback from their leaders. They take on empowerment so focusing on their expected outcomes will generate better relationships with Gen X.

Leading Generation Y requires yet another set of leadership expectations. Gen Y needs structure and stability, which means feedback, feedback and more feedback. They are very cause-oriented and socially conscious which is key for organizations looking for sustainability solutions. Authenticity and transparency also matter to a generation that is used to finding whatever they need or want through technology. However, they will likely need their leader’s help with effective communications and problem solving for the very same reason. The same reliance on technology to gather a wealth of information does not necessarily equip them to analyze it for knowledge-based decision-making.

Several months ago, I had the pleasure of presenting on this topic to the Center for Women Business Owners (CFWBO) where we discussed these and other challenges and solutions to generational diversity from a leadership perspective. Whether you are a business owner, corporate leader or non-profit leader, understanding the value each generation brings to the workplace is paramount to success. A word of caution in these generalizations are just that – generalizations and do not define individuals as such. Successful leaders move beyond the perceptions and generalizations to tap the personal power of each individual they lead. How well do you know everyone on your team?

Lead Well.

Tuesday, March 29, 2011

We Can Learn a Lot about Total Leadership…

…From the Super Bowl Champion Green Bay Packers.

As is tradition, the February issue of this newsletter highlights the reigning Super Bowl champions. Hopefully, the mere title of this newsletter does not cause most of my hometown Chicago readers to automatically delete this file before reading at least a few sentences! While the intensity of the Packers-Bears rivalry marches on, we can glean leadership lessons from the way the Packers became only the second team seeded last in the playoffs to go on to win the Super Bowl. As I watched the playoffs unfold, the back-stories kept taking me back to the Total Leadership Model described as the alignment of organizational strategy with its people and processes to fully engage the organization with the expressed outcome to create loyal clients.

Strategically, the Packers mantra for the season was adaptability. They had the most players on injured reserve (15) of any NFC Team in the league last season. They made the playoffs seeded last, meaning they would have to play three games on the road just to get to the Super Bowl. That meant their strategy would have to take those realities into account to achieve the desired result of winning the Super Bowl. How many leaders today misjudge their competition due to changes in the competitive landscape or mentally defeat their efforts because the competitors are bigger, better funded or both? Effective strategies are built on accurate assessments of the external environment and of the strengths and weaknesses of the organization. For the Green Bay Packers, these strategies and associated philosophies generated more championships than any other team in the league including four Super Bowl titles.

In the Total Leadership Model, People Development and Process Improvement are aligned to support the organization’s strategy. For the Packers, this meant fielding skilled players (changing week-to-week due to injuries) and processes (play-calling to optimize the changing roster) to support and align with the current strategy. In any business, the people and processes may fluctuate over time. The real differentiator in success is Attitude, especially down the stretch. Much is made of home-field advantage in sports and it could be argued the Packers were not always the most talented all around team on the field in Philadelphia, Atlanta, Chicago and Dallas. In the end, it was the team that believed in themselves the most that carried the day, even when two more of their starters, and emotional leaders, were lost to injury in the first half of the championship game. Successful leaders create and execute strategies to optimize the strengths of their people in full alignment with the core processes they use in their businesses.

Total Leadership is about creating loyal clients through engaged employees. It is in this regard the Packers are unique among NFL teams. Despite playing in the smallest NFL market, they have one of the largest fan bases in the sport and have more names on their season ticket waiting list than there are actual seats in Lambeau Field where they play. Leaders may talk about client loyalty but fewer put forth the time and level of effort required to create this level of loyalty and pride in their organizations. Engaged employees are the basis for creating loyal clients, concepts that look much like the traditional training camp bike rides and Family Nights of the Green Bay Packers.

I had lunch last week with a business owner who created a very successful business after coming to the U.S. over twenty years ago. When I mentioned the topic of this month’s newsletter she told me about how, in her frequent travels, she carries a book about Vince Lombardi to read his quotes and philosophies whenever she flies. What will it take for you to generate that level of loyalty and be the champions of your business?

Lead Well.

Thursday, January 6, 2011

Your Mission...

…Should You Choose To Accept It

Many of you recognize this line from the Television series or movie (or both depending on your generation) called Mission: Impossible. I recently had the privilege of delivering the Keynote Address to a group of military veterans at a career transition event the day after Veterans Day. The theme of mission is one our military veterans clearly understand so I and the other speakers leveraged the same theme throughout the event. It also provides the theme for this issue as we head into the holiday season.

Last month, we talked about information overload and its impact on a leader’s ability to make knowledgeable decisions. I would submit having a clear sense of mission is just as important to making meaningful decisions as it creates the tangible importance of making the decision to begin with. When a leader loses the understanding of importance, the overall mission begins to falter. We see organizations in many corners of our environment that have lost their sense of mission. In recent years we have seen examples of government, financial, religious and educational institutions with documented lapses in their sense of mission.

So how do leaders renew their sense of mission? They must first ask themselves why do they exist. Corporations, Entrepreneurial ventures and Not-For-Profits all exist for a defined purpose. The second question every organization must ask is, “Whom do they serve?” We use the word “serve” specifically because it creates the mindset of service as opposed to asking, “Who do we sell to?” or “Who is in our market?” Whenever I work with clients whose business has leveled off or hit a plateau, I always start with some variation of that same question. In answering the question of whom they serve, they renew the line of thought creating the guidelines for their organization or business.

The sense of mission also implies the entire organization is engaged to effectively complete the mission. Leaders must be able to effectively communicate the mission to their teams and herein lies part of the challenge – they may not know how or they overestimate their ability to do so. A recent survey by Developmental Dimensions International and published in the Wall Street Journal suggests managers struggle with the necessary skills necessary to execute a sense of organizational mission. Of the 1,100 respondents, only 36% felt they were strong in coaching their teams while only 34% felt they were strong in gaining commitment from their teams. Lastly only 32% mentioned delegating as their strength. These types of blind spots can cause an organization’s leaders to lose their way. Leaders cannot accomplish the mission alone and thus must be able to not only communicate the goals of the team but also the purpose as well. The goals address what needs to be done, the purpose addresses why the goal is important to the organization.

What separates the great leaders from everyone else is their sense of mission and the personal accountability they have to the mission and those they serve. As we head into the holidays and time for reflection, what mission will you choose to accept?

Lead Well!

Tuesday, August 3, 2010

We Need 100%...

...From 100%

As a leader in corporate organizations, the military and small businesses, this was a frequent reminder to my organization we all have a role to play in our organization’s success. It also reminded them of the importance of showing up every day with everything they have to give, not just show up. Said differently, I was promoting full employee engagement by everyone in the organization. As we reviewed the four key elements of the Total Leadership Model these previous four months, it all centers on the level of engagement by employees, associates and volunteers who create the moments of truth and points of connection between the organization and those who bring you business.

Last month I referenced the results of a recent Gallup Poll survey indicating in average performing organizations, only 33% of employees are engaged in the business. This compared to world-class organizations where the exact opposite is true and 67% of the organization engaged in the business. In addition, in average performing organizations, 18% of employees were actively disengaged. This means that only a third of the organization cares about the activities contributing directly to employee retention, productivity, customer satisfaction/engagement, safety and profitability; all measurable dimensions of organizational success. Improving employee engagement has a direct effect on customer loyalty. Last month I mentioned even a 5% increase in customer loyalty can improve profits by 25% up to 85% depending on industry.

But what if you are a small or medium sized business with few employees? Does this matter? How engaged are the employees of your larger customers, especially the ones who implement your services, purchase your products and pay your invoices? If they don’t care beyond the minimum, how does that affect your business? Employee engagement impacts every business, large or small!

And it all starts with leadership. Jack Welch, former CEO of General Electric once said, “Any company trying to compete…must figure out how to engage the mind of every employee.” We define organizational culture as the shared values, beliefs and actions that develop within an organization guiding the behavior of its members. Employee attitude is where it starts for leaders because it is attitude that drives behavior and it is behavior that drives the ability to achieve the desired results of the organization. The behavior observed by your customers, suppliers and other employees forms the ongoing perception of your organization and your business. As you understand the market’s perception of your business, are you getting 100% out of 100%?

Lead Well!

Tuesday, July 6, 2010

Customer Satisfaction is Worthless...

…Customer Loyalty is Priceless.

This often quoted title from Jeffrey Gitomer’s book sets the stage for the fourth and final component of the Total Leadership Model. In a previous edition (11/09) of this newsletter, I introduced some general differences between satisfied customers and loyal customers. However, the real question becomes “How is Customer Loyalty a competitive advantage?”

Customers generate revenue, loyal customers generate profit. When I was leading corporate organizations, our customer and sales support teams worked closely alongside our sales teams. It was a relationship not always obvious or easy to manage, but one I always insisted on nonetheless. You see, while I was interested in the initial sale to a new client, I was even more interested in the second, third, fourth, nth sales. Why? Because I knew how important the follow-on sales were to profitability and creating emotional relationships with our customers. In industries where the core products and services are commodities, it was the power of points of connection, or “Moments of Truth” that drove ongoing loyalty within our customer base. Studies show as little as a 5% increase in customer loyalty can drive an increase in profits from 25% to over 80%. To highlight the power of moments of truth, another study showed that if an organization’s employees were 100% engaged, they would see a 70% increase in customer loyalty. Why is this significant? A recent Gallup Poll showed an average employee engagement level of 30%. Said differently, 70% of employees are disengaged creating an untenable gap in the ability to create powerful points of connection with their customer base and causing a direct drain on profits!

But who or what are we loyal to? We know when we engage in the Buying/Selling process, buyers look to buy you first before they look at your company or your products. They are looking to establish the first of the three components necessary to developing customer loyalty – trust. Whether it is you, the entrepreneur, you the corporate leader or you the member of a non-profit team, prospective customers and donors are first and foremost looking to see if they trust you! What is their first impression of you, your brand, your office or your website? What are others saying about you? These moments of truth become the catalyst to creating a consistent experience creating the second component of loyalty – a strong emotional tie with the customer. The third component of customer loyalty is the use of empathy to continuously and consistently meet or exceed an ever-increasing level of expectation in today’s business environment and strengthen the overall customer relationship.

It is the customer’s experience with you that counts. Peter Drucker once said “Quality in a Service or Product is not what you put into it. It is what the Client or Customer gets out of it.” Is what your customers are getting out of your products or services worthless or priceless?

Lead Well!