Monthly Archives: August 2009

What are you doing to thrive in the Great Recession?

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We are knee-deep in what is now being called the “Great Recession.” I’ve read and heard various viewpoints
on things people can do, usually directed at the recently unemployed, to keep up their
spirits and position themselves for success in today’s economic environment.

Cameron Herold, founder of BackPocket COO, recently showed me a list he shares with
the CEOs he coaches, of things people can do to succeed in a recession. After studying
his list, I came to the conclusion that not only do CEOs need a list, but so do the
90 percent of people who are still employed and trying to battle their way out of
these troubling economic times. I’m referring to the everyday leaders and the employees
who follow them.

So the economy is awful right now. Some say we’ve bottomed out, some say we are making
a turn for the better and still others say watch out for more downsizing, missed earnings
and layoffs to come. I say, “So what?” Focus on what you and your company— if you
collect a paycheck for work, then yes, it is your company too—can do to thrive in
this “Great Recession” while your competition complains about it. The Brand Integrity
team and I came up with the top things we are doing and others can do to thrive during
these times.

Let’s start with the obvious:

1. Keep your glass half full. Have a positive attitude.
2. Focus on the vital 20 percent. Typically, 20 percent of your efforts yield 80 percent
of your desired results.

3. Create a hyper-focused work environment. For example, we start each day, even before
checking our e-mail, by building our individual “Top 5” list of things we want to
accomplish.
4. Make a “Stop Doing” list.

5. Reinforce important relationships. Make extra effort to connect with your best
customers and prospects.

6. Add more value instead of lowering the price.

7. Recognize daily success around you. Find success, even if only incremental improvement,
and recognize it!
8. Communicate, communicate, communicate.

These eight things to do to thrive in a recession are difficult to refute and are
simple, though not easy. They take focus and energy. Pick the ones that seem most
relevant to you and your company, and obsess about executing them. You may be astounded
by the resulting increase in discretionary effort, a reserve of productivity in you
and people around you. With encouragement, your company can create a healthy, high-performing
work force that truly thrives, even during a “Great Recession”!

The How Factors

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Many of the most profitable companies today are also recognized as “best places to work” in their respective industries. Leaders of these companies have made a conscious decision to put their employees first.

Turning your organization into a profitable, best place to work isn’t about lavishing
employees with incentives, perks, and creative work schedules. It’s about providing
the knowledge, tools, and direction to help employees see how their daily performance
makes an impact on the company’s success. I mean, let’s face it, people don’t get
out of bed each day, brew their coffee and run off to work simply to make their boss
and/or company owners more money. They do it to earn a living and to feel like they’re
making a difference.

And the majority of companies often fail to make the connection between mission statements,
values, brand promises, strategic goals/objectives, etc., and the day-to-day work
of employees. Without giving employees direction on how to do all this “stuff,” they
can’t possibly embrace it, commit to doing it, and (most importantly) take action
to deliver great experiences for each other and for customers.

Best companies to work for solve this dilemma by putting into practice what I call
the “How Factors.” The How Factors are a simple, logical framework for ensuring that
employees aren’t frustrated by an overload of “strategery” that they don’t know how
to do or how to impact.

There are three How Factors that every company should do:

  1. Set clear behavior expectations. Develop and integrate proprietary brand-driven behaviors
    that clearly define what successful performance is at the company level and individual
    level by job function.
  2. Deliver strategic and consistent communication. Integrate expectations for doing these
    behaviors into critical leadership and human resource practices, including recruitment,
    hiring, onboarding, and performance assessments/evaluations. Then, continually educate
    and motivate employees through a strategic, performance-focused recognition program.
    If executed well, this program can also be used to capture and share the best practices
    that have the highest impact on achieving business results.
  3. Drive accountability for success. Measure employee understanding and action on the
    behaviors and experiences that bring the brand to life through performance assessments
    and evaluations. To fully evaluate success, managers also should measure performance
    against the clearly defined company strategy.

Companies that do these How Factors are rewarded for their efforts beyond financial
benefits. If your company isn’t building respected and trusted relationships between
management and employees, or employees aren’t taking pride in their work, get laser-focused
on the How Factors. Set and communicate behavioral expectations and watch how accountability
for success flourishes, putting your company on the pathway to being a more profitable,
best place to work.

Building Your Company’s Belief System

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Every employee in your company comes to work each day with a set of beliefs that they have crafted through years of life experience. Employees have their own individual belief systems, which encourage them to behave in certain ways at work.

Most companies are inconsistent at best in delivering a productive work culture and
profitable customer experiences. Why? Because most companies have not defined what
it is that employees should believe each day at work. By establishing a belief system
for your company, you are able to set clear expectations for employees on what they
are to “think” about your brand and what it means to the company, employees and customers.
If you don’t define your company’s beliefs, you leave it up to each individual employee
to define their own set of beliefs about your company and you lose the opportunity
to guide their thoughts and actions. This ultimately leads to inconsistencies in employee
behaviors (how employees do your brand) and in the experiences delivered to employees
and customers. 

Think about companies you’ve interacted with that clearly don’t have a belief system
that employees buy-in to…

Now think about the companies that do enroll their employees in a belief system that
unites and drives the entire organization…

Ask yourself…who would you rather work for or do business with?

The Growing Experience Gap

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Recently, I was sitting on an airplane next to a woman from Bain
Consulting. She told me about a study that revealed 81 percent of senior leaders believe
their organization delivers superior customer service while only 8 percent of their
customers agree. The study refers to the problem as a “Customer Service Gap.” I call
this the “experience gap,” whose root cause is a lack of employee engagement.

The largest opportunity to improve sales and increase productivity (lower costs),
which leads to better profits, is to engage the workforce in the delivery of WOW experiences.
WOW experiences require employees to understand, commit, and take action to behave
the branded experience. Ask yourself: Where does my workforce, team, or department
fall on the Employee Engagement/ Customer Experience Continuum?

Level 1: “I‟m not engaged.” Level 1 employees typically have an “I don’t care”
attitude, distrust management, provide inconsistent customer service (usually due
to lack of process and training), and do not see how they make a difference every
day at work. They are unhappy at work and regularly act out their unhappiness.


Customer Experience Result: Bad experience; low retention; no consistency = no
loyalty

Level 2: “I‟m somewhat engaged.” These employees may have some understanding
of your organization’s purpose, brand, and promise made to customers; however, a lack
of appreciation and recognition for a job well done helps fuel uncertainty regarding
whether or not the workforce as a whole is really committed to taking care of customers.
These employees may not leave your organization voluntarily, and in fact, many of
them “quit and stay” (ouch!).

Customer Experience Result: Unreliable experience; not satisfied or loyal;
low retention

Level 3: “I‟m engaged.” Employees at this level begin to understand how their
actions make a difference on the organization’s overall success. They understand performance
expectations and have walked a mile in the customer’s shoes, yet they still distrust
management somewhat and lack confidence in the organization’s ability to deliver a
consistent customer experience.



Customer Experience Result: Inconsistent experience, which sometimes leads to
frustration; somewhat satisfied, but still not loyal

Level 4: “I‟m very engaged. (I think, speak, and behave the brand.)” Employees
here clearly understand the brand of the organization and the experience being promised.
They are focused on what to do for customers and are becoming more committed to behaving
the brand and delivering the desired experience. These employees feel empowered (properly
trained) on how to do the right thing.

Customer Experience Result: Consistent, above average experience; sense of
belonging that leads to loyalty

Level 5: “I‟m extremely engaged. (I am an experience stager.‟)” These are your
star performers who are passionate advocates of your organization’s brand. They love
working for your organization and tell people about their experience. They feel appreciated
for their efforts and are confident in their ability to provide consistent, above
average, and sometimes even WOW experiences to customers.

Customer Experience Result: Extreme brand loyalty, which leads to increased
referrals; customers here feel as if they are “members” of your brand, i.e., a part
of your cult following.