On customer experience – What about the other 30%?

LEAVING EMPTY PACKAGING IS NOT ALLOWED!

This post is part of a new series of posts on our website focusing on customer experience:

What about the other 30%?

On a recent trip to the local post office’s “business center” I noticed that the mail sorting tables and trash bins had been removed. These had been replaced by some signs informing clients that they were no longer allowed to leave any of their mail at the post office.

There were two post office employees in the post box room so I decided to ask what the reasoning for this change was. The female employee seemed to avoid the conversation entirely, while the male employee engaged quite vigorously in an explanation.

He explained that the post office did not have the resources to deal with the discarded mail and that they had conducted a customer survey to find out how their clients felt about direct mail and advertising (I don’t recall this survey though I may have missed it).

He said that 70% of their customers has responded that they liked receiving that type of mail and “only” 30% of their clients didn’t want to receive it. I explained that I was clearly a member of the smaller group to which he replied something to the effect of “that’s unfortunate.”

Why am I writing about this?

I think this is a perfect example of rational business decision making that fails to incorporate the softer dimensions. I’d like to look at some of these dimensions in a bit more detail:

Customer loyalty:

It’s great that the majority of customers want to receive this mail but what about the other 30%? The net of this business decision is that the post office doesn’t care about this group, although I’m sure loosing a full 30% percent of their post box customers would garner some attention. I’m not suggesting that would happen, however I do believe that they have given this customer group one less reason to stay.

I frequently receive calls from companies doing customer surveys and I’m always struck by how they nearly always fail to collective the qualitative information. As an example; even a person that likes looking through advertising mail may enjoy being able to sort through it at the post office and only take with them what they want to keep. Could it be that this decision will also have a negative impact on the loyalty on the 70% who like receiving adverts in the mail? Was this captured by the survey?

Of course, when you are a business like the Post you have a captive audience. There aren’t any other options for receiving the mail. Or are there? Do you want to be doing business like there aren’t?

The environment:

As soon as this mail leaves the post office, I believe the chances it will be recycled decrease. The decision by the post office passes the problem onto the customer whereas in the past the post office essentially provided a service to the community and the client – ensuring that the unwanted portion of a customer’s mail would be recycled – that’s good environmental stewardship. Maybe this isn’t the post office’s responsibility. It sure was positive while it lasted.

Communication with the customer:

If a business chooses to make such a decision based on necessity/lack of resources/financial problems they should be very tactical about how their people communicate the reasoning behind said decision to the client. In this example, the post office had two opportunities to do this; 1) the sign posted where the desk once was, 2) my conversation with the post office employee. Fail on both I’m afraid.

Make it easy for the client, regardless of what they say they want. Within reason.

The local approach to managing customer experience is developing in many ways though I believe it still has a ways to go. Rational decision making based on analysis is only ever part of the picture. The other part is important and must always be incorporated into the decision making process if one wants to avoid unintended consequences.

Customer loyalty and a company’s reputation take time to build up but are demolished in no time at all.

How do healthy leaders maintain their balance?

Leadership roles often attract narcissists according to Christian Enger Gimsø’s doctoral research at BI. The discussion around narcissism, power and position is ages old, examples of great leadership and poor leadership abound.

How do good leaders maintain their balance?

Every leader should understand that they are a “work in progress” and seek ways to secure and accelerate their personal and professional and professional. Professional development opportunities tend to be more straight forward and can include advanced education, on the job training, conferences, mentoring, etc. The personal development opportunities are less obvious. Life experience plays a role as do other activities outside of work like family life, travel, reflection, volunteering, etc.

In a coaching session recently, a client spoke about his leader group. He had a desire to bring the group’s performance to a new level but had reservations about two of the five team members.

“They just aren’t the type. They are purely action oriented – they aren’t interested in looking inside themselves. Don’t see any value in it”

This particular client is in a business where their individual results rule though that becomes a problem when they must create engagement, energy and action in the employees that work for them. Leaders that don’t look within themselves to see where their own development opportunities lie become handicapped when it comes to motivating employees.

So maybe this does boil down to things like narcissism and ego. A leader who looks upon him or herself some the knight in shining armor, the one who is carrying the operation will be limited by what he or she can get done herself. A leader who sees him or herself as part of something bigger, and something more important will be easier able to perform and create results through others.

Here’s the hitch – as objective as we’d all like to think we are – it’s not always easy to see which one of two we are..

Read the DN.no article here (in Norwegian)

Motivation and the organizations of the future (redux)

We think Dan Pink’s book Drive is really important, it summarizes thinking we’ve seen coming from many different directions and decades. He offers a prescription for what he calls Enterprise 3.0 – knowledge organizations of the 21st century. Very many of us already have these sorts of jobs, yet companies are slow to transform and instead rely on classical management techniques even though the science tells us it’s time for something different.

The Royal Society for the encouragement of Arts, Manufactures and Commerce (RSA) sponsors the brilliant RSA animate. For those of you not yet exposed to illustration as a facilitation/communication technique, this should be an eye opener!

Dan Pink’s book is called Drive, The Suprising Truth About What Motivates Us – highly recommended!

Breaking out of the office

Back in June I posted about Cisco’s John Chambers and his views on strategy and innovation at Cisco. There has been a new Cisco funded survey (The Cisco Connected World Report) in the news this week – one that asks if the office is really necessary. Does time in the office lead to innovation and productivity or does it limit us? The results are striking – if you ask employees this question more than 60% believe that being in the office is no longer needed to be productive.

Some of my most productive clients feel the same way. They make sure to find hours of quiet time each week whether its working at home or finding a quiet place in the office where they are less likely to be found.

Here is Cisco’s Dave Evans in a video overview of the results:

Cisco is, of course, interested in the technology and how they can serve that market. I’m interested in the challenge this presents to leaders. Those that dare to challenge the status quo will find there are plenty of opportunities for find creative ways of freeing employee energy. The question is whether or not leaders are ready to allow the latitude and provide the inspiration and direction required for these measures to work. This is the Enterprise 3.0 Dan Pink refers to in Drive.

Chief Collaboration Officer?

Are you struggling to make cross-silo collaboration work in your organization? In my experience, most are.

This HBR blog post suggests a creative solution. We’re not talking about adding a full-time position but assigning CCO as an additional focus area for an existing executive – specifically one with great collaboration skills.

I like the idea. As the post notes, this is something most often expected of the CEO but he or she typically has a full plate already. Finding another executive in the leader group that doesn’t have any conflicting interests and is a good collaborator could be hard. The payoff, however, could be significant.

Read about our collaboration and conflict resolution training program: Radical Collaboration.

Is incentive pay actually an incentive?

“Pay for Performance” is a common compensation technique despite the fact that it has been proven to be ineffective in many situations. Sometimes it even causes performance to decrease.

According to American author Daniel Pink the answer is “sometimes”. He’s written a book that brings together research and experience from the last fifty years to shine the light on this issue. According to Pink this is a great example of a knowing-doing gap. We know something to be true (the research has been done repeatedly on different cultures with similar results) and do something contradictory.

The research has proven that monetary rewards work for simple tasks but when the task becomes more difficult and requires creativity, the rewards often have a negative effect on task performance. So monetary rewards may work on an assembly line but often fall short in the modern knowledge economy.

Why do we think this is interesting? We work with culture and a key part of building performance culture is meaning. People perform better when they find meaning in their work. Meaning is the “intrinsic reward” Pink suggests is the more powerful motivator for knowledge workers.

We highly recommend Daniel Pink’s book DRiVE to business people looking for challenge the working assumptions driving business. The truth is out there, as they say, and it’s not even that hard to find.

We found Pink, as we find many cool ideas, through Ted Talks. Watch his presentation to get an overview!

What happened @ HP?

The real reasons for Mark Hurd’s resignation from Hewlett Packard are already buried under layers of camouflage. There is a norwegian saying that typically follows such executive departures and translates loosely to “there is no hidden drama in this departure.” There almost always is and the same is true here.

(I particularly enjoyed The New York Time’s article on the subject: Real Reason for Ousting HP’s Chief)

During Hurd’s tenure magazines and newspapers frequently praised his work and HP’s improving results. He and the company he led became the new poster-child of progress and performance in the IT industry, at least in terms of growth and earnings.

But there’s another chapter to this story and its one that is much more interesting for those leading companies and building performance cultures. While the short-term results were stellar, were they being borrowed against the company’s future? In the above linked article and others we read about employees and executive rejoicing at the departure of an executive that “was a cost-cutter who indulged himself”.

The truth remains to be seen but it appears that HP’s board removed a leader who had lost their trust. He had apparently lost the trust of the company’s leaders and employees long before.

What can we learn from this? The closing lines of the New York Time’s article does a good job summing it up:

“What HP needs in its next leader, Mr. House told me, is ‘someone with Carly’s strategic sense, Mark’s operational skills, and Lew’s emotional intelligence.’ (Lewis E. Platt preceded Ms. Fiorina as C.E.O)”

HP fired a CEO who produced 18% growth annually due to cultural fit issues. Now that’s news.

What’s the secret?

There is a popular theme rising today on the web and in management journals and books: How do we turn knowledge and ideas into action and innovation? I know, that’s a naive statement. It seems like this is everything anyone has been talking about for, well, forever. That could be true.

Before the summer I posted about a book called Making Ideas Happen and a website by the same author: the99percent.com. During the summer I read The Knowing-Doing Gap and I highly recommend it.

So if talk and ideas are cheap than what is of value? If we’re to believe what we’re reading (and watching: here’s an energetic presentation of this), the secret is to just try something. The quicker you can transform an idea into a test, the better. Try something with the understanding that this attempt is just a step in the creative process. Everything can be revised and improved. The groups I work with have a tendency to over think, analyze and engineer. This makes the creative process long and burdened by our assumptions about how things will be received rather than based on the results of small, frequent tests.

So try something. It seems like you’ll be better off doing that than anything else..

Why?

How great leaders inspire action, Simon Sinek @ TED Talks

In this video Simon Sinek does an excellent job explaining what inspires people. Business consultants have been talking about the importance of values for years and they’ve been right. However, the term values may not be as easily understood as we like to think.

Sinek talks about values and purpose in a simple and practical way and we liked that. We hope you like it to.

Do you focus on how your company makes decisions?

In my fourteen years working as a leader and consultant I’ve come in contact with “re-organizations” possible more than any other organizational change. Its hard to understand why an organization isn’t performing optimally – the causes are often buried or camouflaged. Changing the organization’s structure often seems like the most tangible action that could yield the desired result.

But how often is it successful? According to the linked article and my experience, not that often.

If you have a subscription or the possibility to read the article, I highly recommend it. It makes a case for focusing on how things work rather than how things are set up. In fact, after you “set things up” you are still left with how things work, right? Maybe the idea presented in this article is a short-cut.

Decide for yourself – interesting food for thought regardless!

Read the HBR article here (paid subscription required)