The Secret to Higher Profits in a Digitized World

people shock

The Decline of Customer Satisfaction

Customer satisfaction is going down, not up.

How can that be in a world with unprecedented technological progress?

 

“A brand is the sum of the good, the bad, and the off strategy.” –Scott Bedbury

 

Tema Frank founded Web Mystery Shoppers International, the world’s first company to test omnichannel customer service. Her new book, People Shock: The Path to Profits When Customers Rule , shows off both her decades of business experience and the research from interviewing over 150 business leaders. She developed a formula to help businesses improve the customer experience in the midst of a digitized world.

I recently asked her about her research.

 

“The key to getting work done on time is to stop wearing a watch.” –Ricard Semler

 

What is PeopleShock?

As we automate more and artificial intelligence wipes out jobs, the smaller amount that is left for human to human interaction becomes critical. Companies that are people-focused (while using technology to support those people) are the ones that will win in an era of increasing competition and social media power. If you get the people side right, PeopleShock is your key to success. Ignore it and your company will soon be history.

 

“If you’re too busy to build good systems, then you’ll always be too busy.” –Brian Logue

 

Get the 3Ps of Profit Right

Please share your 3P Profit Formula with our audience.

Customers are cranky, and they’ve got more choices than ever before. So you’ve got to keep them happy, and that means getting all of the 3 Ps of Profit right:

Promise – Having a clear aspirational, inspirational and memorable reason for doing what you do inspires staff and customers. It also gives staff a filter for decision-making: Would their action be consistent with the company’s promise?

People – Business success comes from connecting effectively at a human level with people inside (staff) and outside your organization. Outsiders include not only prospects and customers, but people we sometimes overlook, like suppliers, distributors, lenders, investors, media and the public.

Process – As time goes by, some of the processes that got you to where you are stop making sense.  To deliver consistently great customer experiences, you have to regularly re-assess how you’ve been doing things. Start by looking at processes from a customer point of view. What do they experience? Then look at how that lines up with what you do internally.

 

“CEOs are the ones who must conduct the corporate orchestra.” –Tema Frank

 

How does this translate into higher profits?

Ask Questions to Improve Your Leadership

Leadership Questions
This is a guest post by friend, executive and mentor Bruce Rhoades, who retired after having run several companies. He often helps me with strategy. I am delighted that he is a regular contributor. Follow him on Twitter.

 

Leadership is Not About Knowing All the Answers

Leadership is not about knowing all the answers—it is about leading others to do their best to accomplish goals, solve problems and grow. How many times have you seen a “leader” arrive at the wrong conclusion or take misguided action because they did not know all the facts? How many times have you been frustrated because you were not asked to provide your opinion, perspective or experience?

 


“Leadership is not about knowing all the answers.” -Bruce Rhoades

 

When leaders do not take time to formulate and ask appropriate questions, the whole organization suffers—people do not contribute their best; they do not grow, and the organization often takes sub-optimal or wrong action. Likewise, leaders that do not ask purposeful questions can demoralize the organization, gradually turn associates into non-thinking “yes people” and risk looking foolish or arrogant.

A leader’s effectiveness can be greatly improved by using insightful questions. Here is how.

 


“Leaders who do not ask purposeful questions can demoralize the organization.” -Bruce Rhoades

 

Benefits and Power of Asking Questions

With the proper use and timing, asking questions allows a leader to:

  • Guide the direction of the conversation and focus the discussion
  • Clarify what others have said to improve understanding
  • Improve decisions with better, in-depth information from people who may know more
  • Formulate well-informed decisions with input from other perspectives to better define issues
  • Precipitate a decision by asking for options and exactly what is needed to decide
  • Develop alternative options
  • Raise the level of thinking in the organization, often to broader, more strategic issues
  • Improve organizational collaboration and communication
  • Help move from concepts and discussions to action and defined accountability
  • Help focus on results and outcomes
  • Empower the organization
  • Make people feel valued and improve job satisfaction
  • Solicit input from those who may not typically speak up
  • Improve organizational learning
  • Inspire creativity and new ideas
  • Buy time to think
  • Help overcome wasted authority.
  • Allow confrontation without making statements by inducing people to explain themselves
  • Lead others to conclusions
  • Suspend the business discussion to discover problematic interpersonal issues, attitudes and concerns
  • Improve self-reflection to discern what was learned, mistakes made, missed opportunities to mentor, what to do differently

 


“The art and science of asking questions is the source of all knowledge.” -Thomas Berger

 

My Most-Used Questions

Each of us can come up with a list of questions to be used in the appropriate circumstance. Here is a list of questions that I have found to be effective and useful:

5 Communication Mistakes Too Many Leaders Make

Audience Applauding Speaker At Business Conference
This is a guest post by Alison Davis, CEO of Davis and Company, an employee communication firm helping companies improve employee engagement. You can also follow her on Twitter.

 

5 Communication Mistakes

Congratulations! You’ve been promoted or successfully built your business, and now you’re a leader.

But now the hard work is ahead, especially when it comes to communicating with your employees. That’s because almost everything you learned as a manager doesn’t apply any more.

While manager communication focuses on the task at hand, leaders have a broader role: to articulate where the organization is heading, clarify what employees need to do to help the organization succeed, and share progress and accomplishments.

The good news is that when you fulfill your communication role, employees become motivated to do their best work. Employees want to connect with their senior leaders and feel engaged in the company’s strategic direction. Hearing from the boss is a key driver of satisfaction.

But leaders often lack the clarity, time and skills they need to communicate effectively. As a result, they make these 5 communication mistakes:

 

“Communication is the real work of leadership.” -Nitin Nohria

 

Mistake #1: Disappear.

You feel like you spend the whole day in meetings: one-on-one sessions, team meetings, large-group conferences. So it seems you’re always in front of the people who work for you. But if you analyze who you spend time with, you’d realize that you’re visible to only a small percentage of employees. And the larger and more spread out your organization is, the greater the likelihood that many employees rarely see you.

What to do differently: You need a communication plan designed to provide maximum visibility, given your time available. The best practice is to schedule a mix of:

  • An all-hands or town hall meeting at least once a quarter
  • Briefings with managers several times a year
  • Informal sessions (you can call them “coffee chats”) with small groups of employees at least six times a year. These chats are more about hearing from staff members than delivering a message.
  • Presence on electronic channels. For example, if you’ve got an internal social networking platform, participate in online conversations. Or create written or video messages on an intranet site.
  • Showing up and walking around. These informal “sightings”—having lunch with a few people in the cafeteria, touring a new facility—are very valuable for demonstrating that you’re in touch with what’s happening.

 

“Presence is more than just being there.” –Malcolm Forbes

 

Mistake #2: Use “CEO Speak”

One of your key functions as a leader is to think about the long-term strategy. But because you focus so much on the big picture, it’s easy to forget that although employees are smart, they’re also overloaded with information. And employees don’t see issues from the same 35,000-foot perspective leaders do—they’re standing at ground level, trying to focus on what they need to do right now. So when you share information that’s strictly high-level, it doesn’t resonate.

What to do differently: Make your messages simple, tangible and relatable. Ask yourself, “What is the one thing we need employees to know this month, this quarter or this year? To understand? To do differently?” Then focus on providing employees with the core information they need most.

 

Communication Tip: Focus on providing only the core information people need.

 

Mistake #3: Get the timing wrong

One of leaders’ toughest communication challenges is managing timing. If you wait too long to share information, you run the risk that employees already know what you’re now revealing—which affects credibility. But communicating too soon can also be a problem. For example, when leaders have been working behind the scenes on a big change like a reorganization, they start to become impatient, feeling they should tell employees something. So they announce that the company will reorganize soon and more will be shared later. The result? You create anxiety because employees don’t know exactly how they will be affected. It’s better to sit tight until all the details are set.

What to do differently: Focus on how and when employees will be affected, and time communication to meet employees’ need to know, not your need to tell.

 

“Life is about timing.” –Carl Lewis

 

Mistake #4: Do all the talking

Many leaders associate “communicating” with sharing information. As a result, they plan town hall meetings that have 50 minutes of presentation and 10 minutes of Q&A. But when my firm asks employees what they need from leaders, here’s what they say:

  • “More open dialogue with top management.”
  • “I obviously want to hear from leaders, but it’s also important that leaders listen to us.”

What to do differently: One of the most effective ways to create more employee engagement is to communicate in a way that encourages employees to participate. And a key ingredient is the ability of leaders to engage employees in two-way communication.

It may seem counterintuitive, but the least effective way to begin a Q&A session is by saying, “Does anyone have any questions?” This question sets the expectation that only people who don’t understand something that has been shared will speak up.

Instead, try saying this: “Based on what I’ve just told you, what will be the hardest aspects to accomplish?” This approach creates two-way communication in a way that makes people more comfortable about participating.

 

Leadership Tip: Don’t ask for questions. Instead, encourage an immediate two-way communication.

Questions to Shape Self-Improvement

Questions for Your Personal Development
This is a guest post by friend and mentor Bruce Rhoades, who retired after having run several companies. He often helps me with strategy. I am delighted that he is a regular contributor.

Questions to Shape The Year Ahead

It is that time of year when many people assess the past year and make plans for the next one. Businesses develop strategies and goals, individuals write resolutions and families plan vacations. Many individual plans involve possessions, places and events.

One of the most important, but perhaps difficult, topics to assess is personal improvement. If you are happy with yourself and your current situation, everything else will seem better. Since it is sometimes more difficult to “see yourself” and develop actions for self-improvement, here is a list of questions to help identify some candidate areas for improvement.

The list covers many topics to generate ideas. I suggest that you simply read the list, make lots of notes as you go and not try to develop or prioritize actions until later. Suggestions for next steps are discussed at the end.

 

“If you are happy with yourself and current situation, everything else will seem better.”  –Bruce Rhoades

 

Questions to Ask Yourself

Learning and Growing

What new skills would I like to develop for work or for personal satisfaction?

Am I listening to different perspectives and diverse viewpoints?

What should I read to expand my horizons?

What new challenges should I undertake?

Do I have a role model to observe?

 

Appreciation and Gratitude

What am I thankful for?

Do I tell those I love that I love them?

What are my opportunities to tell others what I appreciate about them?

Do I celebrate the success and happiness of others?

How often do I praise or compliment others?

 

“Do I celebrate the success and happiness of others?” –Bruce Rhoades

 

Relationships

Am I satisfied with my relationships? Kids? Colleagues? Family?

How can I be a better partner — one that I would like to have?

Are the boundaries I have set with others the right ones?

Where should I be a more positive influence?

Are the people that demand my time the ones who I really want to use my time?

Are there relationships that I need to repair or let go?

Which relationships do I want to grow?

Do I feel and express appropriate emotion?

How and where can I be less controlling or bossy?

How can I improve my attentiveness and listening?

How do I want to be remembered?

 

“Are the boundaries I have set with others the right ones?” –Bruce Rhoades

 

Leadership

What culture do I want to create for work, family and friends?

What kind of role model am I? What attributes do I want others to emulate?

How can I bring out the best in others? At work? With family? With friends?

Are my actions consistent with my talk?

What opportunities do I have to make a difference in someone’s life?

How can I help others to grow? Who?

How can I be a better team member?

What are my opportunities to teach?

 

“What kind of role model am I?”  –Bruce Rhoades

 

Balance

Anticipate: The Art of Leading by Looking Ahead

Empty curved road,Yorkshire,uk

Navigating Change

Studies show that the companies that navigate change well last the longest.

Why do some corporate leaders navigate through massive change while others seem oblivious to it?

How do you position your organization ahead of the trends?

Is it possible to learn to anticipate and prepare for the future?

 

Rob-Jan De Jong is a speaker, consultant and faculty member at Wharton’s executive program on Global Strategic Leadership. His new book, Anticipate: The Art of Leading by Looking Ahead, outlines what it takes to become a visionary leader. Sharing examples and principles from his research, Rob-Jan’s mission is to increase your personal visionary capacity.  I recently had the opportunity to ask him about vision and the art of looking ahead.

 

“Anyone can grow their visionary capacity.” –Rob-Jan De Jong

 

3 Keys to Unleashing Vision at All Levels

As a CEO, I just loved this sentence:  “Vision is not an exclusive for those in top ranked positions.”  It’s really something for everyone, not only those with a title.  How do corporate leaders unleash creativity and vision at all levels of the organization?

  1. Empowerment and trust. 

An important success factor is around empowerment and trust.  A directive company culture is detrimental for people’s engagement.  Having a sense of influence is a prerequisite for getting people to become involved in the hard work of engaging with uncertainty and anticipating the future.

 

“Vision is not an exclusive for those in top ranked positions.” –Rob-Jan De Jong

 

  1. Fault Tolerance.

A second critical factor is fault tolerance. This naturally goes with empowerment – people will get it right and every so often they will get it wrong. These are the important moments of truth for you as the leader, as your response will set the standard for the culture that shapes from these moments. People will be on the lookout about how serious you are about empowerment. My simple suggestion is to not focus on what went wrong but to focus on what the person has learned.

 

“Visioning, future engagement, anticipation is a skill set and a mindset.” –Rob-Jan De Jong

 

  1. Enabling Others.

And a third factor that should not be underestimated is that you will also need to enable your people to do this. Visioning, future engagement, anticipation is a skill set and a mindset. And it is often a step aside from the environment people have grown accustomed to, so you will need to enable your people to strengthen themselves in this area.

That might sound like blatant promotion for my work and my book, but I’m absolutely convinced that this has been a gap in management theory.  Despite the widely acknowledged importance of ‘vision’ in leadership, little – if any – systematic support has been provided in terms of developing your visionary side as a leader in a responsible way.  Scholars, business schools and strategy textbooks agree that a vision is one of the most powerful instruments a leader can have.  And how you go about developing this side of your leadership has been met with tremendous silence.

It was my intention to fill part of this gap by offering a comprehensive perspective on the topic, original ideas, a developmental framework, various practices, and many stories and anecdotes to draw lessons from.

 

“Vision, the hallmark of leadership, is less a derivative of spreadsheets and more a product of the mind called imagination.” –Abraham Zaleznik

 

Learning to Be Visionary