When you know that your company will never be the low-cost producer nor will it ever have enough cash to outspend the big cat, there’s no choice but to find other ways to skin that cat. Thousands of small to medium sized businesses are successfully doing this. “How?” you ask. The answer lies within those factors that do not require fat bank accounts. There are far more than you think.
What company in the world has not been going through sudden shifts wrought from major, disruptive change? Consumer technology companies, health care companies, automakers, and smart phone manufacturers are among industries whose very foundation is more like shifting quicksand.
To survive and grow, and even regain competitive advantage, many companies are grappling with ways to transform their businesses in the face of radical change. They are responding in many predictable and time-tested ways: changing CEOs and leadership teams, shifting strategies, rolling out new product lines, amping up innovation, cutting costs and restructuring. These are all the necessary things to do to react to change, but these actions usually only treat the symptoms of a chronic illness – hardening of corporate arteries – without curing the underlying cause.
When you think about companies that provide an incredible customer experience, it’s no coincidence they are the exact same companies that have amazing cultures. Think Southwest Airlines, Ritz Carlton, Zappos, Nordstroms…great customer service and great workplace cultures since culture is the ultimate driver of a sustainably exceptional customer experience.
“Customer experience” is a hot subject these days but many organizations continue to put their front line employees in the middle of a horrible customer experience and their employees are sick of being in that position.
A popular post I wrote for TLNT.com last year on organizational culture change is still on the first page of google search results for that topic.
I approached a training video company with course content based on that post and they felt culture is a topic best suited for top leaders. They explained that training video sales are higher if the content fits first line managers and individual contributors.
I explained the culture fundamentals that apply to top leaders also apply to work teams of any size since they are sub-cultures with behavior that’s also driven by cultural rules.
From that insight, the culture content was simplified and the WE WIN framework was born!
A Sweet Spot exists at the intersection of three areas of context for any business transformation (Change). It is critical for leaders to get context clarity on these areas to make the difference between a resounding successful change and a crashing failure.
Think of the last time you bought a product you were very excited about. Maybe it was the iPhone 6 with its sleeker look, improved features and screen size that forces you to buy pants with bigger pockets. Maybe it was the Lululemon yoga pants that are comfortable and stylish at the same time. Or maybe it was the new driver that you think will help your golf game and knock a couple of strokes of your handicap. What did you feel when you bought those items? Probably a sense of excitement, a sense of anticipation and maybe even a sense of pride and emotional attachment.
Now, let me ask you how you felt that last time you were exposed to the strategy of your organization. Did it feel similar to some of the emotions triggered above? Or did it feel more like that class in college with the really boring professor … where you tried to retain just enough information to pass the test or sound intelligent if called upon? If it is the latter, you are unfortunately not alone. Engaging employees in strategies is simple not done well in many companies. Yet these same companies are often great at launching new products or services to their customers.
Mergers and Acquisitions have now been cited by Goldman Sachs as the primary global growth strategy for large-cap companies. The last twelve months have seen the return of the strategic inquirer, with blue chip companies driving deal frequency and volumes not seen since 2007 and 2008. Yet, almost religiously, study after study shows that mergers and acquisitions fail at rate of 70% to 90%, leaving massive intellectual, creative and financial currency on the table.
The number one reason for M & A failure? Culture clash.
In a survey of top leaders by Booz and Company last year 84% said culture was critical to success and yet the majority admitted their culture was in need of a major overhaul. So, how do you transform a culture to meet your company’s needs today? How can you get employees or teams to behave the way you need them to execute your strategies and enhance your performance as well as your employee engagement and the customer experience? How do you get the innovation and agility you need in fast-changing markets? How do you get the cross-organizational collaboration that makes one plus one equal three?
It’s like being lost in the wilderness if you initiate any major change effort in your organization without specifically knowing how cultures effectively evolve or change. It’s one of the greatest leadership challenges, but few truly understand how cultures evolve.
In the last twelve months, the topic of values has caught the imagination. Putting values at the center of everything your organization does can make all the difference in engaging and motivating employees and customers.
Employee engagement is all the rage these days. It should be, considering that only 13% of employees feel engaged by the work they do and that low engagement leads to high turnover, which can cost companies up to 150% of an employee’s salary. But with so many factors involved in employee engagement – job satisfaction, stress, work/life balance, purpose, relationships, physical and emotional well-being – it can be tough to achieve. CEOs and HR leaders at leading organizations are learning a focus on employee well-being impacts most factors critical for employee engagement.
Haven’t we talked about employee engagement enough? Nope! Because despite the amount of time, energy and effort that organizations around the globe are investing in helping engage people in work, things aren’t improving much. Weekly pizza socials, guest speakers and telecommuting options are certainly appealing. I like pizza as much as the next guy. And, sure, a monetary bonus and summer hours will certainly put a smile on someone’s face. But here’s the issue – none of these things will motivate your people day in and day out.
If you’re a parent, you’re probably familiar with the expression, “Do as I say, not as I do.” As we strive to set a good example for our children – and recognize that they’re watching our every move – we often wish they’d only heed our advice and not our actions.
It’s not much different in the workplace. In an effort to create a vibrant, positive and respectful workplace culture, it’s essential that your managers and leaders set a good example. While the connection may not be obvious, that includes compliance with labor laws, particularly with respect to the legal rights of your employees. How can you expect your personnel to trust your leadership – and actively participate in the growth and success of your company – when you’re cutting corners with basic compliance matters (intentionally or unintentionally) or, worst, violating the various protections afforded them by law?
When the CEO of one of the nation’s largest pharmacy chains announced that the company would stop selling tobacco products in its 7,700 drug stores, he made headline news and set a powerful example for others to follow. CVS Caremark (recently renamed CVS Health) CEO Larry Merlo put a firm stake in the ground by voluntarily forgoing a source of $2 billion a year in revenue.
So, you might be wondering, what was he thinking?
During a recent keynote, Jeb Dasteel, Senior Vice President and Chief Customer Officer at Oracle Corporation, said something that gave me pause. “Don’t try to change the culture,” Dasteel urged the hundreds of change agents gathered in a hotel conference room. “Exploit it.”
Dasteel went on to explain that, while building a customer experience strategy inside Oracle — a company that had historically valued its intellectual property more than its customers, he chose to leverage the prevailing engineering mindset instead of trying to change the organizational culture, as so many of us might be tempted to do. “I couldn’t change the culture if I wanted to,” he said.