How Leaders Create Engagement and Competitive Advantage

purpose

How Leaders Create Engagement

A decent product at a fair price with good customer service may once have been enough. No longer. The bar has moved. Employees and customers want organizations to do some social good along the way.

My friend and bestselling author John Izzo is out with a new book, co-authored by Jeff Vanderwielen: The Purpose Revolution: How Leaders Create Engagement and Competitive Advantage in an Age of Social Good. The book is full of examples and ideas to help you move your organization to one that is infused with purpose.

I recently asked John to share more about his research and work in this area.

 

“Winning in the purpose revolution requires authenticity.” -John Izzo

 

4 Forces Driving Change

You say that there is a revolution happening right now and ignoring it will send your company to irrelevance. What is it and what forces are driving it?

The revolution is a desire among employees, customers and investors to leverage social good with their choices. This is a revolution of AND not OR. Employees want everything they have always wanted, but they also want a job that gives them a sense of purpose in a company they feel is doing good in the world. Customers want products that excite them at a good price, but they also want to leverage good with those choices—and certainly buy things that cause no harm. Investors was a return on money, but the fastest growing funds are those that also promise social impact.

In an age of commoditization, the marketplace is filled with many similar products, and purpose is a way for companies to create brand differentiation based on values, not just product.

What’s driving the revolution are four primary trends. The Millennials are now a global force with a strong set of values around creating social good and having meaning in their work. The boomers are moving into the “legacy” stage of life where the impact they leave starts to compete with ego. The rising middle class in the developing world is another major driver, as people rise out of poverty, they are able to think about the social good in their choices. Finally, business is both blamed for some of the world’s biggest challenges but also increasingly seen as the key to addressing those same issues through corporate social responsibility.

 

“Purpose is a way for companies to create brand differentiation based on values, not just product.” -John Izzo

 

Connect Purpose to Contribution

How do leaders help employees connect purpose to work contribution?

The first step is to have a clearly articulated compelling purpose that is authentic. Starbucks’ purpose is to “inspire the human spirit one cup of coffee at a time” while 3M’s is to “advance every life and improve every business while using science to solve the world’s greatest challenges” (like sustainability).

The second step is to drive job purpose more than job function. Focus on the real impact jobs and teams make. Have every person identify the purpose of their job and the same for every team. Consistently tell stories of how your company makes a real difference. Bring in customers to tell their stories, and create space for employees to do the same. One large bank we worked with started having a standing agenda item in every branch: “How did we make a difference for a client since last time we met?” In the branches that did it, engagement went up 23% and sales went up 18%!

 

Move Purpose to Center Stage

Unleash the Power of Brand-Culture Fusion for Maximum Growth

fusion

Having read more books than I can name about leadership, branding, and culture, I am surprised at how rare it is to see one that combines the power of all of them.

But that’s just what my friend Denise Lee Yohn did in her exceptional new book, FUSION: How Integrating Brand and Culture Powers the World’s Great Companies.

As one of the world’s leading authorities on brand-building, Denise tackles one of the most important and overlooked aspects of a strong brand: company culture.

It’s the FUSION of brand and culture that creates organizational power.

After reading the book, which I also proudly endorsed, I followed up with Denise to talk about her research into brand and culture.

 

The Importance of Culture

Denise, you are well known for your work on branding. This book takes a different turn as it is as much, if not more, about organizational culture. Tell us about why you decided to address culture.

FUSION actually came out of my work with clients on strengthening and/or repositioning their brands.  I found that our efforts were sometimes held back from making as much of an impact as they could have because of cultural issues inside the organization. If the culture of the organization wasn’t aligned with the brand, some leaders wouldn’t want to include culture as part of brand-building, or they didn’t appreciate the need to align and integrate their brand and culture — to create brand-culture fusion — and that prevented them from realizing the full potential of their organization and their brand.

 

“Great brands are built from the inside out.” -Denise Lee Yohn

 

You say that a key leadership responsibility is the integration of culture and brand. Has this always been true? What are the best ways to accomplish this?

Brand-culture fusion has always required strong leadership from the top of the organization, but it has become more important in recent years, given the corporate culture crisis that has arisen. Leaders can no longer assume their organizations will have a healthy culture if they’re nice and decent people — it takes deliberate effort to cultivate a unique, valuable, sustainable culture.

 

“You must accept the challenge to lead your organization to greatness.” -Denise Lee Yohn

 

Drop Your Mission Statement

Build an Unstoppable Organization

Wrecking Ball

Become Unstoppable

 

How can you continually improve your employees’ morale and performance?

How can you stay ahead of your customers’ ever-changing needs?

How will you survive financially amidst rising costs?

 

A version of these questions was on the back cover of The Unstoppable Organization and drew my eye and pulled me in. The book’s author, Shawn Casemore, is an authority in employee and customer empowerment. His consulting practice is focused on helping leaders build organizations stronger through their people.

After reading the book, I talked with Shawn about his work and the book.

 

Unstoppable Characteristics

What are the characteristics of the “unstoppable organization”?

An Unstoppable Organization is one in which the CEO and leaders from across the organization perceive themselves as facilitators of their employees needs, suggestions and ideas. Their priority is to remove the barriers and obstacles that stand in the way of their employees getting their job done. In turn the leaders of Unstoppable Organizations recognize that by creating an environment in which their employees can thrive results in an environment in which customers are satisfied.

 

“An unstoppable organization is one that puts its people first, placing them at the forefront of creating a brand promise.” -Shawn Casemore

 

Customerize Your Future

What is “customerizing” and why must companies do it?

An unstoppable organization is one that puts its people first, placing them at the forefront of creating a brand promise that will satisfy the evolution of customer demands. When people aren’t placed first, the brand promise ultimately will fail. Domino’s was only able to meet it’s brand promise of “30 minutes or it’s free” by having it’s entire team in each store be dedicated to creating a consistent product that was delivered on-time every-time. Your customers want customization, and it’s through your employees that you can actually define and meet this growing need. With the right product knowledge and a clear understanding of the customer, employees are well equipped to provide the ideas and support necessary to satisfy your brand promise.

 

“Businesses often forget about the culture and ultimately they suffer for it, because they cannot deliver good service from unhappy employees.” -Tony Hsieh

 

How do leaders best build an organizational culture that adds value to customers? 

How to Survive Against Fierce Competition

shortcut

Dealing With Competition

The Reum brothers, Courtney and Carter, are known for their roles on the television show Hatched. They are also behind many household brand names including big names such as Lyft, Pinterest, Warby Parker, and Shake Snack. Their new book, Shortcut Your Startup: Speed Up Success with Unconventional Advice from the Trenches is full of advice and shortcuts for those who want to take a start-up organization and scale it quickly.

 

In the Introduction of your book, you talk about both how it’s cheaper and easier than ever to start a business but also that the competition is more fierce than ever, too. What are the implications of these market forces?

The effects are twofold. On one hand, an abundance of resources has recently come into existence that—in a vacuum—would make life infinitely easier for any entrepreneur. Obvious examples are Kickstarter, social media marketing, Amazon’s e-commerce platform, data analytics—the list goes on. Obviously, these facilitate the arduous and historically expensive process of starting a business. Just look at the following graph showing the decrease in time needed to scale a brand.

Copyright Reum Brothers, Used by Permission.

The problem with these resources, however, is that everybody has access to them. Since these goods and services simplify business building, more and more people enter the landscape and competition increases. While the increased number of competitors certainly is an implication, a more important one is that it becomes significantly more difficult for the best business to separate itself from the crowd.

 

Use a Microscope and a Telescope

Another juxtaposition of ideas is from the old saying that you need to have a microscope on one eye and a telescope on another. You also use the speedboat versus sailboat analogy. Talk about this and how aspiring entrepreneurs need to understand the differences and their role.

Discover Your Positioning DNA and Dominate Your Competition

dna

Branding that Gets to Aha!

Andy Cunningham played a key role in the launch of the original Macintosh. Which I think qualifies her to say, “Hey, I’m kind of a big deal!” I mean, Steve Jobs level big deal.

But she doesn’t say that at all. Instead, she helps other organizations with branding, positioning and marketing.

She’s just released a book, Get to Aha!: Discover Your Positioning DNA and Dominate Your Competition. It’s a framework to help you understand and position your company. I found it intriguing and asked her to share some of her experience with you.

 

“Perceptions today are grounded in and sustained by authenticity.” -Andy Cunningham

 

Branding Gone Wrong

You recently surveyed 100 North American CEOs, and fewer than 1/3 felt that the brand strategy they had commissioned had been effective. Why do we so often get it wrong?

Branding campaigns fail or fall flat for several reasons: resistance to change, uncertainty around how to implement the strategy, too many competing ideas—maybe even business strategy that has moved beyond a recently completed brand initiative.

But there’s another big reason: branding is too much fun. (Yes, really!) Branding is the part of a marketing campaign that gets a lot of attention—the eye candy that the senior leadership is quick to notice. Why? Because it speaks to the emotional side of a product or service and is a great distraction from the day-to-day, boring details behind that product or service. But when you launch straight into branding before parsing those “boring” details—before you understand the exact space in the marketing landscape your company is uniquely qualified to fill—you’re putting the cart before the horse. A sexy or fun brand package is great to look at, but if it doesn’t capture a company’s role and relevance in the market (its position), then it’s little more than a pretty face without any substance to back it up. That’s where my DNA-based methodology comes in. It offers an actionable framework for using your company’s genetic makeup to determine competitive advantage.

 

 

The 2 Most Important Questions