employee engagement webinar - february 2014 - beyond philosophy

www.beyondphilosophy.com

Employee Engagement, Ambassadorship and Customer Centricity

Colin Shaw Founder & CEO

Michael Lowenstein Thought Leadership

Principal

© Copyright Beyond Philosophy 2002 -2014 All rights reserved

beyondphilosophy.com

Who Is Beyond Philosophy?

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We work globally with offices in London and North America;

with partners in Africa & Asia.

Customer Experience is all we do!

Customer Experience is all we do.. Since 2002!

Thought leadership is our differentiator

Evidence based consulting & training

We focus on the emotional side of customer experience

‘Secrets of a Successful Global Customer Experience Program’ –

Palgrave MacMillan 2013



Organizations we have worked with…

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Defining the Customer Loyalty Behavior Landscape

Today’s B2B and B2C customer is more mobile, content- seeking, impatient, and independent than at any time in history. Even with all of these new decision dynamics, the fundamentals of trust and perceived value have become increasingly powerful drivers of loyalty and bonding.

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Why Customer Loyalty Is At Growing Risk

! Companies aren’t current with rising consumer expectations, need for personalized value

! Loyalty programs are passive, miss mark ! Digitization/mobile makes everything transparent and

accessible; companies arent omnichannel ! Overfocus on rational, functional touch points and

transactional value rather than overall experience ! No unique relevance or innovation for consumers; everything

becomes a price-based commodity ! Customer-centricity, and especially employee engagement and

ambassadorship, are key ‘back to basics’ elements of value delivery missing from many organizations

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Becoming a More Customer-Centric Enterprise: Moving from Naïve to Natural

•  Customer Awareness – customers known, but in aggregate; the organization believes it understands customer needs; measurement of stakeholder behavior is rudimentary, if it exists at all; hierarchical management model; chimneyed communication, with little teaming

•  Customer Sensitivity – customers known, but still mostly in aggregate; service more in evidence (focus on problem/complaint management); measurement is attitudinal and functional, with little emphasis on emotional drivers; traditional management hierarchy

•  Customer Focus – customers both known and valued, down to individual level; customers recognized as having varied needs; service and value provisions are enterprise priorities; more proactive communication and collaboration with customers; more horizontal management structure

•  Customer Obsession – customer needs and expectations are well understood throughout the enterprise; everyone provides value; loyalty behavior is paramount, and optimal relationships are a key priority, with service a vital, and profitable element of delivery; management is extremely horizontal, with emphasis on customer inclusion and teaming

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Seven S Customer-Centric Direction

Structure Systems

Strategy Style Shared Values

Skills Staff

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Customer-Centric Linkage of Stakeholder Groups

! Customers who ac'vely (vocal, level of favorability, reduced considera'on set, etc.) express their personal commitment to a supplier can be strongly posi've (advocates), neutral, or nega've (saboteurs).

! Employees, similarly, can significantly impact customer loyalty behavior toward their employer through a range of a>tudes and behaviors on behalf of the brand, company and customer. These a>tudes and behaviors, like customers, can range from highly posi've, to indifferent, to highly nega've.

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The Role of People… Why They Can Be So Critically Important

70% 41% 68% …of customers LEAVE because of poor employee aCtude

…of customers are LOYAL because of a good employee aCtude

…of customer brand percepGon is determined by experiences with PEOPLE

UK retailer: 1% increase in employee commitment = 9% increase in monthly sales Enterprise IG

Source: Parkington and Buxton, Study of the US Banking Sector, Journal of Applied Psychologyy

Source: MCA Brand Ambassador Benchmark

Source: Ken Irons, Market Leader



Customer-Centric Enterprise Examples

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Customer Value is About Much More Than Money – It Is the Overall Experience

! Value = Customer-‐perceived raGonal (funcGonal and tangible) and emoGonal (intangible and relaGonship) benefits supplied + soluGons provided -‐ what is required by customer to obtain benefits and soluGons

! Today, emoGonal components of delivery have greater impact, in both B2B and B2C products and services

! The Kano Model !   Expected -‐ Failure to deliver will result in likely defecGon

!   One-‐Dimensional -‐ Desired, standards of compeGtors !   A?rac@ve/Surprising -‐ PosiGve and unanGcipated



Kano Model

Effects of Experience and InteracGons With Employees on PotenGal Commitment and Advocacy Behavior

Figure 1: Kano Analysis

The lower curve of the model reflects basic


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Employee Satisfaction, Values, and

Loyalty

Employee Engagement and

Alignment

Employee Commitment and Ambassadorship

(Advocacy)

Employee Attitudes and Behaviors Research

Employee Research Approaches

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Definitions of Employee Research Concepts and Methods

! Employee Sa@sfac@on and Loyalty – Iden'fies employee a>tudes and behaviors leading to job sa'sfac'on and employer loyalty

! Employee Engagement and Alignment – Iden'fies employee a>tudes and behaviors leading to agreement with, and belief in, overall company mission and objec'ves, as well as ‘fit’, or alignment, and produc'vity within organiza'onal culture

! Employee Ambassadorship – Iden'fies the most ac've level of employee commitment to the company’s product and service value promise, to the company itself, and to op'mizing the customer experience. It is linked to, but dis'nc've from, the produc'vity and empowerment elements of employee sa'sfac'on, engagement, and alignment research because its emphasis is building customer bonds through employee interac'on.

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Customer Commitment and Advocacy

OpGmizing Customer Experience and RelaGonships

Linking Customer and Employee Commitment to Business Results

Strong CorrelaGon

Weak and IntuiGve CorrelaGon

Customer Loyalty

TQ and SaGsfacGon

C U S T O M E R R E S E A R C H

E M P L O Y E E R E S E A R C H

Employee Commitment and Ambassadorship

Employee Engagement and Alignment

Employee SaGsfacGon & Loyalty

Now Now

1990’s 1990’s

1980’s and earlier 1980’s and earlier

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Many Ways to Define Employee Engagement Analysis conducted by The Conference Board in 2006 showed

that, among twelve leading engagement research companies, there were 26 key drivers, of which eight were common to all:

-‐ Trust and integrity – How well do managers communicate and 'walk the talk‘? -‐ Nature of the job – Is it mentally s'mula'ng day-‐to-‐day? -‐ Line of sight between employee performance and company performance – Do employees understand how their work contributes to the company's performance? -‐ Career growth opportuniGes – Are there opportuni'es for growth within the company? -‐ Pride about the company – How much self-‐esteem do the employees feel by being associated with their company? -‐ Coworkers/team members – How much influence do they exert on the employee’s level of engagement ? -‐ Employee development – Is the company making an effort to develop the employee's skills? -‐ RelaGonship with one's manager – Does the employee value rela'onship(s) with manager(s), and is there trust and credibility between the levels? Typically, little or no mention/inclusion of ‘customer’ or ‘customer

focus’ in measures or analysis of employee engagement. Though customer experience, and resultant behavior, is impacted by engagement, it tends to be more tangential than purposeful in nature.

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The Three Components of Employee Ambassadorship

Commitment to Company - Commitment to, and being positive about, the company (through personal satisfaction and an expression of pride), and to being a contributing, and fully aligned, member of the culture. Commitment to Value Proposition - Commitment to, and alignment with, the mission and goals of the company, as expressed through perceived excellence (benefits and solutions) provided by products and/or services Commitment to Customers - Commitment to understanding customer needs, and to performing in a manner which provides customers with optimal experiences and relationships, as well as delivering the highest level of product and/or service value.

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Employees That Score High on Commitment to the Company, The Value Proposition, and the

Customer Are Considered Ambassadors

Company

Customer

Value ProposiGon Ambassador

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Saboteurs

Indifferents

Employee Ambassadors

What turns indifferent employees into ambassadors?

What turns indifferent employees into saboteurs?

Employee Ambassador/Saboteur ‘Swing Voter Analysis

(Discriminant FuncGon Analysis)

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Looking Under the Hood A Detailed Ambassadorship Case Study: Employee and Guest Research Results

for Major Las Vegas Hotel/Casino

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Employee Ambassadorship Levels Overall and High/Low Divisions

N Employee Ambassadors

Positive Loyalists

Passive Contributors

Dis-interested Seatfillers

Employee Saboteurs

OVERALL 2,622 23% 28% 25% 15% 9%

HIGH Sales Convention 101 47% 28% 19% 4% 3%

Fitness Center 37 40% 30% 14% 16% -

Marketing 43 37% 33% 12% 16% 2%

Valet 53 36% 40% 19% 6% -

Pool Bars 40 35% 40% 13% 10% 3%

Retail 57 35% 25% 18% 21% 2%

Banquets 204 29% 28% 20% 11% 3%

LOW Restaurant 69 6% 19% 36% 17% 9%

Security 76 8% 17% 33% 22% 20%

Housekeeping 170 9% 19% 27% 25% 16%

Bell 47 13% 13% 17% 26% 32%

Casino Bars/Lounges 129 16% 14% 29% 25% 17%

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75%

65%

49%

34%

25%

33%

36%

41%

25%

65%

75%

51%

47%

53%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

Overall Satisfaction with Job Aspects Except for work safety, extent of diversity, and immediate supervisor, there tended to be very high concentraGons of high job environment saGsfacGon among Ambassadors. NegaGve feelings about immediate supervisor, hotel management, and opportunity advancement were strong and spread beyond Saboteurs, in other words there was more pervasive negaGvism among employees.

Percent Score

Saboteurs Ambassadors

The hotel as a whole

The hotel management as a whole

The extent of diversity among my co-workers

My immediate supervisor

The safety of my workplace

Overall work environment

Opportunity for career advancement

% of Ambassadors (Top Box) / % of Saboteurs (Bottom Box)

(16%) (9%)

(11%) (19%)

(25%) (20%)

(24%) (9%)

(22%) (9%)

(13%) (14%)

(15%) (25%)

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30%

34%

32%

37%

26%

53%

54%

47%

56%

56%

0% 10% 20% 30% 40% 50% 60% 70%

Employee Ambassadorship Diagnostics Customer Focus

Percent Score

Employees receive the training needed to serve guests

We regularly use guest feedback to improve our work

processes

I feel empowered to solve guest problems

My department has clear objectives for helping improve

the guest experiences

Employees are recognized for delivering outstanding service to

guests

% Ambassadors (Top Box % Agreement) / % Saboteurs (Bottom Box % Disagreement)

(17%) (13%)

(17%) (14%)

(25%) (12%)

(22%) (12%)

(17%) (21%)

á

á

á

á

á

Saboteurs

Ambassadors

Empowerment, though showing a high concentration, is not associated with ambassadorship as much as other factors. A relatively low concentration of Lack of Recognition among Saboteurs extends beyond saboteurs suggests that this problem is pervasive in other employee segments as well.

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58%

57%

63%

58%

55%

32%

32%

33%

30%

47%

53%

46%

51%

51%

0% 10% 20% 30% 40% 50% 60% 70% 80%

Employee Ambassadorship Diagnostics Business Alignment

Motivation to help the hotel be successful and clear understanding of hotel mission, though receiving high agreement, were not particularly strong in their association with Ambassadorship. The negative effects of poor ratings on information about the hotel having tools and technology, encouragement of diverse perspectives and decision participation likely extend beyond Saboteurs.

Percent Score

I am motivated to help the hotel be successful

The hotel is a leader in its field

I am kept well informed about what’s going on at the hotel

I have a clear understanding of the hotel’s mission

I have the tools, technology, and equipment to do my job

Diverse perspectives are valued and encouraged in my dept.

I am encouraged to participate in decisions that affect my work

% Ambassadors (Top Box % Agreement) / % Saboteurs (Bottom Box % Disagreement)

(26%)

(8%)

(8%)

(33%) (6%)

(23%)

(36%)

(12%)

(23%) (16%)

(21%) (14%)

(20%) (21%)

á

á

á

á

á á

á

á

á

á

á

á

á

á

á

Saboteurs

Ambassadors

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Employee Engagement/Ambassadorship Workshop Will Also Cover….

! Management Effectiveness – diagnostics which address supervisor/employee interaction

! Career and Growth - diagnostics which address staff opportunity for accomplishment and advancement

! Morale and Culture - diagnostics which address personal value, work environment, and relationships throughout the enterprise

! Cohesion - diagnostics which address levels of support, teamwork and cooperation, within and between groups

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Hotel Ambassadorship Swing Voter Analysis Classification of Attributes

In swing voter analysis, key hotel drivers are divided into three groups depending on their unique contribution to employee growth and/or risk. These are: •  Delighters: Improving performance on these attributes will move swing

voters into the ambassadors group while declining performance on them has little impact. These delighters tend to have impact if there is good employer performance where good performance wasn’t expected.

•  Dissatisfiers: Declining performance on some attributes will move swing

voters into the saboteur group while improving performance has little impact. These dissatisfiers tend to have impact when there is poor performance where good performance is expected.

•  Dual Effects: These dual effect attributes show improved overall feelings

about the hotel in both directions, i.e. they are associated with moving swing voters into the Ambassador camp with good performance as well as with moving swing voters into the Saboteur camp with poor performance.

The following charts show selected attributes that are either Delighters or Dissatisfiers

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Swing Voter Analysis Importance Scores for Selected Anributes

(“Swing Up” To Ambassadors, “Swing Down” To Saboteurs)

Swing Up

Swing Down

I trust the hotel 28% 4%

My work gives me a sense of personal accomplishment 8% 4%

The hotel is focused on attaining the highest quality possible 7% -

Overall value of service provided 6% 23%

I very much enjoy doing my job 6% 10%

I feel a lot of stress at work 6% 6%

The hotel is very loyal to its employees 6% 2%

My immediate supervisor 4% -

The hotel will do whatever it takes to makes guests happy 4% -

I have a clear understanding of the hotel’s mission, goals, and objectives 2% 13%

The extent of diversity of co-workers - 8%

I am very committed to my work 2% 5%

Delighters Dissa'sfiers Dual effects

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Delighters (Opportunities for Ambassadorship Growth)

Building employee trust and pride in the hotel (viewpoint that the guests believe Las Vegas Hotel/Casino has their interests at heart), pride in their work and their accomplishments at work, clear supervisory direction and training, and a clear view to the potential of a promising future at Las Vegas Hotel/Casino all can create a higher proportion of Employee Ambassadors at Las Vegas Hotel/Casino. Primarily upside diagnostics (in order of importance): •  I trust the hotel •  My work gives me a sense of personal accomplishment •  The hotel is focused on attaining the highest quality possible •  My immediate supervisor •  The hotel will do whatever it takes to make guests happy •  Guests would continue to stay at the hotel because of the high level of personal service

they receive •  Diverse perspectives are valued and encouraged in my department •  The safety of my workplace •  My supervisor makes it clear what I am expected to do •  Employees receive the training needed to serve guests •  I feel I have a promising future at the hotel •  How likely do you think it is that you will be promoted next year? •  Trust, pride in hotel, pride in self, supervision, growth

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Dissatisfiers (Risk of Ambassadorship Decline)

Feelings of low self-esteem because of the perceived worth of their jobs, feelings of isolation from the Las Vegas Hotel/Casino mission, its management and fellow employees, feelings that they are not adequately enabled to carry out their respective tasks, and beliefs that Las Vegas Hotel/Casino is not a leadership resort all contribute to turning neutral and disenchanted employees into Employee Saboteurs. Primarily downside diagnostics (in order of importance): ! Overall value of service provided ! I have a clear understanding of the hotel's mission, goals and objectives ! The hotel is committed to providing equal opportunities for all employees ! I am kept well-informed about what's going on at the hotel ! I have the tools, technology and equipment I need to do my job ! There is team work between management and staff at the hotel ! The hotel is a leader in its field ! I have a sense of closeness with other employees at the hotel ! Employees are recognized for delivering outstanding service to guests

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25%

49% 46% 49% 48%39% 40%

79% 81% 82% 82%

72% 73%

15%9%

14%10%

6% 7%

36%38%37%31%32%

0%

10%

20%

30%

40%50%

60%

70%

80%

90%

100%

Some Mirroring Diagnostic Elements (Top 2 Box Scores – 7 Point Scale)

! Employee Ambassadors were dramatically more likely to rate hotel/casino highly when compared to Saboteurs, but employees often out of sync – and sometimes significantly so - with Guests

The hotel will do whatever it takes to make guests happy

The hotel has the guests best interest at heart

Perc

ent T

op 2

Box

The hotel will do what it takes to resolve any problems the guests have

The hotel trends guests as valued customers

Guests All Employees

Employee Ambassadors

Employee Saboteurs

The hotel exceeds guests’ expectations

Guests feel they have a personal relationship with the hotel as their Las Vegas destination

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Summary of Key Employee Ambassador Behavior Implications for Hotel

! Hotel had a stronger employee ambassadorship profile than the service industry in general (ambassadorship is the likelihood of employees to be so positively disposed toward hotel that they actively promote it as a place to work). !   There is a significantly higher percentage of ambassadors among hotel

employees (compared to service industry employees in general); !   however, several hotel departments had high percentages of saboteurs,

including restaurant, security, housekeeping, bell, and casino bars, lounges

! Hotel employees had significantly lower one year from now employment likelihood scores compared to the service industry as a whole. !   However, their higher likelihood to recommend hotel as a place to work

suggest reasons for leaving may be less driven by dissatisfaction than one would expect and more driven by expected career changes or by the availability of several alternative employers for the same jobs in Las Vegas

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Summary of Key Implications for Hotel, contd.

! “Swing Voter Analysis” !   Trust and personal accomplishment are primary delighters

(drivers of ambassadorship) !   Perceived value of services employees provide is a major

dissatisfier (driver of prospective sabotage), especially among key customer-facing groups, followed by having a clear understanding of the hotel mission, vision, and goals

!   Primary dual effect attributes (both driving ambassadorship and saboteur status) are stress level and job enjoyment, perhaps two sides of the same coin.

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Nine Ambassadorship and Customer Centricity Employee Best Practices

! Build a climate of trust and authenticity ! Train, train, train (and cross-train in customer sensitivity and

value proposition) ! Make certain everyone has a career path ! Provide frequent evaluations/contribution reviews ! Seek to inform, seek to debrief, and be transparent ! Recognize and reward customer-focused initiative and

proaction ! Don’t just ask employees what they want, provide it ! By all means, have fun ! Hire the ‘right’ employees in the first place Source: Customer WinBack, Jill Griffin and Michael Lowenstein

Will be broadly covered in ambassadorship workshop

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Building Humanity and Emotional Connection Into the

Customer Experience

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Customer-Centricity Is About More than Structure, Strategy, and Systems….

! Most brands and corporations get by on macro, passive, and transactional approaches to customer relationships: service speed, price promotions, merchandising gimmicks, new product offerings, etc.

! Customers, as a result, see no brand personality or brand-to-brand differentiations

! Experience of brand is non-engaging and one-dimensional, easily capable of replacement

! Customer has no personal investment in choosing, or staying with, one brand or supplier over another

! Per Raj Sisodia and John Mackey (Conscious Capitalism): “…many corporations seem to exist primarily to maximize the compensation of their executives and secondarily to create shareholder value, rather than to optimize sustained value creation for all stakeholders.”

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…It’s About Emotions, Humanity…and Profit ! “Being human” – Not just a buzzword, especially in brand-

building and leveraging customer relationships ! To better understand customers, enterprise must think in

emotional and human terms ! To become more trusted, organizations must connect with

customers through branded experiences ! Emotional connections in all elements of value – service,

advertising, packaging, billing, products, etc. – should be thought out for consistency

! Sisodia, Sheth, and Wolfe (Firms of Endearment): “What we call a humanistic company is run in such a way that its stakeholders – customers, employees, suppliers, etc. - develop an emotional connection with it. Humanistic companies seek to maximize their value to society as a whole, not just to their shareholders. They are the ultimate value creators. They create emotional value, experiential value, social value, and of course, financial value.”

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Based on Ambassadorship-Based Strategic Research, What Customer-Centric Actions Should

Companies Be Taking?

! Employees, at all levels and in all functions, need to have a thorough understanding of what is important to customers so that their actions match customer expectations and performance requirements.

! Within a customer-centric enterprise, employees’ behavior needs to be aligned around positive customer experiences and customer loyalty; driving employee engagement, enablement and energy, components of ambassadorship, should be stressed

! Management must build processes, technology, training, reward, recognition, and organizational/cultural practices that support employees being able to optimize customer experience.

! Companies should evaluate the effectiveness of key metrics associated with delivering customer value – financial and non-financial performance, addressing customer life cycle, amount of cross-functional collaboration to support customers.

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beyondphilosophy.com 39

Employee Engagement Course

4 live interactive webinars

60-90 mins in length Homework

Exam for certification

30th April – 21st May 2014

Advertised price $ 599 $ 50 off

$ 549

Use promotion code: WEBINAR50



What You Will Learn in Employee Engagement and Ambassadorship Workshop

! How to assess, and build, the enterprise culture to focus on customer-centricity ! How to have a better understanding of customer life cycle, and how employees

influence it ! How to assure that employees, at all levels and in all functions, have a thorough

understanding of what is important to customers ! How to align employee behavior around positive customer experiences and

customer loyalty ! How to build processes, training, reward/recognition and cultural practices that

both support employees and optimize customer value and experiences ! How to apply contemporary and actionable metrics, through employee emotional

connection and behavior that drive value ! How to sustain employee ambassadorship within the enterprise

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Thank You/Q & A ! Beyond Philosophy Employee Engagement and

Ambassadorship Workshop: http://www.beyondphilosophy.com/training-courses/employee-engagement

! Contact information for Michael Lowenstein: [email protected]

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employee engagement webinar - february 2014 - beyond philosophy

Business

customer value

customer experience

b2c customer

customer inclusion

teaming copyright

organizations copyright

value loyalty behavior

value provisions