linking hr to customers - rbl.ai
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Linking HR to CustomersDave Ulrich & Wayne Brockbank
Partners, The RBL Group
3Goals for Today
• THINK: – About how to build a sustainable customer-
focused organization
• BEHAVE:– Identify things that you can do to strengthen
your customer experience
• FUN:– Enjoy the experience together
4
Understanding our customers’ needs and how we meet those needs
•Who are our best customers?
•Why do they buy from us?
•How can I understand my customers’ needs?
•How has HR help in meeting those needs (past successes)?
•How should HR help in meeting those needs (currentopportunities)?
5Purposes of day IAs a result of this session, you should be able to answer the questions:
1. Why is customer focus so important and where is myorganization in terms of customer focus?
2. Who are our targeted customers?
3. How do we find out what they want? Why do they buy from us?
4. How do we build a more customer-focused organization?A. StrategyB. TechnologyC. Management actions (HR practices)D. CultureE. Leadership
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Mindset Internal
Network
Purposeful
Organization
Hierarchy Insular
Bureaucracy
Responsive
Bureaucracy
Internal External
Source of Effective Critera
Type
of C
ontr
ol
Framing the Agenda
7Why is customer focus so important?Value is defined by the receiver more than the giver
Service is not smiling at a customer, but getting the customer to smile at you
8How do we serve multiple customers?Value is defined by the receiver more than the giver
9Purposes of the dayAs a result of this session, you will be able to answer the questions:
1. Why is customer focus so important and where is my organization in terms of customer focus?
2. Who are our targeted customers?
3. How do we find out what they want? Why do they buy from us?
4. How do we build a more customer-focused organization? A. StrategyB. TechnologyC. Management actions (HR practices)D. Culture E. Leadership
10Who are our customers?
Ways to segment customers
• Insights
• Channels
• Opportunities
11Who are our customers?Insights
How do we describe our customers/clients?
• Demographics: age, gender, education, location
• Buying patterns: frequency
12Who are our customers?Channels
How do we go to market?
Your Company
RetailWe have dedicated agents or stores?
WholesaleWe use independent agents or others’ stores?
DirectWe go directly to consumers through technology
13Who are our customers?Opportunities
Who are our targeted customers/clients?
Size of customer/consumer
(how much do they buy?)
High low
Commitment of
customer to us
(how much do they
buy from us?
High 1
Key accounts
Keep them
3
Valuable accounts
Maintain them
Low
2
Targeted accounts
Assault them
4
Nice to have
accounts
Receive them
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Indicators of Customer Literacy: To what extent do you know the following?
Who are the 5 major buyers in the markets you serve? What are your firm’s five major customers?If there are major customers who do not buy from you,
why not? What is the customer value proposition of your competitor that attracts and keeps these customers?
Why do your targeted customers buy from you? What are their buying criteria?
What do your customers like better about your competitors than you?
Who are our customers: Develop customer literacy
15Purposes of the dayAs a result of this session, you will be able to answer the questions:
1. Why is customer focus so important and where is my organization in terms of customer focus?
2. Who are our targeted customers?
3. How do we find out what they want? Why do they buy from us?
4. How do we build a more customer-focused organization? A. StrategyB. TechnologyC. Management actions (HR practices)D. Culture E. Leadership
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Focus groups and interviews(Answer the “Who?” question)
Open-ended Surveys(Answer the “What?” question)
QuantitativeSurveys(Answer the “How much?” question)
Top Management
Marketing Department
Sales Personnel
Customers
Why do they buy from us?Who, what, and how much?
17Oil Field Services Inc.
MarketShare
24%
19%
- $ 1 BILLION
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Buying Criteria Top Management Customers
Price/Cost
Service
Quality
On Time-delivery
First with New Products
Total 100 100
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19
12
48
19Results from Connecting HR to Customers
HR Interventions
• Recruitment
• Incentives
• Promotions
• Training
Market
Share24%
31%
19% + $ 2.4 Billion
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Cost
Value
Quality
Service
Speed
Cost
Innovation
Quality
Service
Speed
What does our customer want from us?Define our customer value proposition
Any of the other value propositions divided by cost
Lowest price
Superior performance
Best client experience
Faster
Meet needs in new and unique ways
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Lowest Price Best deal, Discounted, Simplicity, Uptime, Consistency, Steady, Meets standards, Meets specs, Can count on us, Value
Quality / Performance
Smart/Intelligent, Intuitive, On-time, Trusted/Trustworthy, Reliability, High security, Safe choice, Socially responsible, Cool, Nutritious, Integrity/ Honesty, Luxurious, Accuracy, Accountability, Healthy, Tasty, Results oriented, Savvy, Expertise, Transparency, Global reach, Environmentally responsible, Environmentally sensitive, Environmentally responsive
Service Ease of use, Ambience, Best selection, Prestige, Convenience, Accessible, Fulfilling, Safe, Engaging, Variety, Fun, Responsive, Deep understanding, Best product mix, Easiest to work with
Speed First to market, Fastest to you, Quick, Responsive, First mover
Innovation Best design, Style, Fashionable, Cutting edge, Excellence, Chic, User friendly, Sustainable, New and improved, Functional, Freshest, Novel
Best Value Lowest everyday price, More efficient, More effective, Cost in use, Value for money
What does our customer want from us?Define customer value in their terms
22Purposes of the dayAs a result of this session, you will be able to answer the questions:
1. Why is customer focus so important and where is my organization in terms of customer focus?
2. Who are our targeted customers?
3. How do we find out what they want? Why do they buy from us?
4. How do we build a more customer-focused organization? A. StrategyB. TechnologyC. Management actions (HR practices)D. Culture E. Leadership
23How do we create a more customer-focused organization?
Types of
customer
connections
Anticipate
Partner
Serve
Transact
Strategy Technology HR
practice
Culture/
values
Leadership
Ways of connecting with customer
24How do we create a more customer-focused organization?Strategy: define the customer buying criteria
What do different groups think?
(Divide 100 points)
Inside groups Targeted
customers
gap
Why do
customers buy
from us?
Cost
Quality
Service
Speed
Innovation
Etc.
TOTAL 100 100
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Customer Wants HR Implications
New Product Features
Speed
Low price
Convenience
Responsiveness
Image
Align HR with customer demands
26How do we create a more customer-focused organization?Strategy
How do we create a strategic story that ties to customers?
Actions/analytics: how are we doing?
Vis
ion/
goal
s: w
here
are
we
goin
g
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1 3
27How do we create a more customer-focused organization?Strategy
A customer strategy test:
Key elements of our strategy:
To win we will..
Customer view
Effectiveness Importance
28How do we create a more customer-focused organization?Technology
How can we link technology with customers to determine what they value?
Sourcing information
4Wisdom of crowds
2wikipedia
1google
3planning
Makingdecisions
Operatingalone
Workingtogether
29How do we create a more customer-focused organization?Product
What market research can we do to determine product features customers value?
The root cause of the 75% failure rate (of new products) is the flawed way we teach marketers about what products customers want and how to segment markets. As people go into marketing organization and carry this flawed paradigm, it causes companies to fail at innovation. Only when we understand the customer’s point of view and how the customer experiences the product and market can we be more successful more of the time.
Clayton Christensen, Harvard professor and leading author on innovation
30How do we create a more customer-focused organization?HR practice: Staffing / Selection
Staffing
practice
HR actions Customer
connection
Standards Define criteria for future
employee: technical and
cultural
Sourcing Increase the pool
(job fairs, university, other
firms, referral hiring,
technology hiring)
Screening Interview candidates
Securing Close the deal with offers
Orienting Assimilate new candidate
31How do we create a more customer-focused organization?HR practice: Training and Development
Training &
development
HR practice Customer
Involvement
What topics What are key topics to teach?
Who attends Who comes to program (individual,
team, outsider)
Who designs Who designs program (HR, externals)
How is it delivered What are delivery mechanisms (face
to face, technology, site visits)
Who presents Who are faculty
How is it
measured?
What are results of the development?
What are
alternative
developments
How do we do coaching, mentoring,
assignments?
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How do we create a more customer focused organization?HR practiceHow do we create a more customer-focused organization?
HR practice: Compensation
Rewards HR practice Customer involvement
Set standards Be clear about what is expected
Review
performance
Do performance appraisal …
•Content: what is appraised
•Process: how it is appraised
Allocate financial
rewards
•Base salary
•Short term bonus
•Long term equity
•Benefits
Allocate non
financial rewards
•Opportunity
•Recognition
•Work itself
Offer feedback
and feed forward
•What worked
•What did not
•How do we learnbv
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How do we create a more customer focused organization?HR practiceHow do we create a more customer-focused organization?
HR practice: Communication
Communication HR practice Customer
involvement
What is the
message?
•Be clear about the message
•Keep it simple and focused
•Demonstrate the value of the
message
When is it
communicated?
•Have communication timelines
Who does the
communicating?
Determine who shares information:
manager, customer, supplier?
Who receives the
information?
Involve all employees, families,
suppliers,
How do we
communicate?
Use a host of communication tools:
technology to personal
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How do we create a more customer focused organization?HR practiceHow do we create a more customer-focused organization?
HR practice: Org DesignOrganization concept HR practice Customer
involvement
Define organization as
capability
•Define key capabilities for success
•Do organization audit
Define roles in the
organization
Clarify titles and responsibilities
Define routines or
processes that people will
follow
Specify standard operating
procedures and improve processes
Create work setting for
success (physical setting)
Build a workplace that reflects the
culture
Organize high performing
teams
Ensure that teams operate
effectively
Create administrative
policies
Work on administration in the
company
35How do we create a more customer-focused organization?Culture
Make Real to Customers
• Attract
• Convert
• Fulfill
• Leverage
Make Real to Employees
• Top down
• Bottom up
• Side to side
CustomerExperience
EmployeeActions
Firm Brand
Culture as firm brand:What are the top 3 things we want to be known for by our target customers?
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Leadership Brand
Firm Brand
FIRM BRAND:What are the top 3 things we want to be known for by our target customers?
LEADERSHIP BRAND:What are the leadership behaviors that would reflect each firm brand?
How do we create a more customer-focused organization?Leadership
37How do we create a more customer-focused organization?Leadership
Firm Brand Leadership BrandThis organization is known for… Leaders at this organization are known for…
Wal-mart Always low prices Managing costs efficiently, getting things done on time
FedEx Absolutely, positively, doing whatever it takes
Managing logistics, meeting deadlines, solving problems quickly
Lexus Pursuit of perfection Managing quality processes (lean manufacturing and design, Six Sigma) for continuous improvement
Procter & Gamble
Brands you know and trust Developing consumer insights, precisely targeted marketing, product innovation
McKinsey CEO’s trusted adviser Leading teams that deconstruct business problems, synthesize data, and develop solutions
Boeing People working together as a global enterprise for aerospace leadership
Solving global problems, working as teams, possessing technical excellence in aerospace
Apple Innovation and design Creating new products and services that break the industry norms
PepsiCo Appealing to the younger generation Building the next generation of talent
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Leadership Brand
Firm Brand
FIRM BRAND:What are the top 3 things we want to be known for by our target customers?
LEADERSHIP BRAND:What are the leadership behaviors that would reflect each firm brand?
••••
••••
••••
How do we create a more customer-focused organization?Leadership
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Behaviors of individuals in each career stage(list 2 or 3 desired behaviors of individuals in ea ch career
stage by the identity factor)
Identity Factor A professional in your firm
A supervisor/manager
Senior executiv e
1.
2.
3.
Examine firm brand and leadership behaviors by different career stages in your organization
How do we create a more customer-focused organization?Leadership
40Purposes of day IAs a result of this session, you should be able to answer the questions:
1. Why is customer focus so important and where is myorganization in terms of customer focus?
2. Who are our targeted customers?
3. How do we find out what they want? Why do they buy from us?
4. How do we build a more customer-focused organization?A. StrategyB. TechnologyC. Management actions (HR practices)D. CultureE. Leadership