I thought it was a good idea to to start a business blog to supplement the journal articles I write on change management.
PDF Articles Curiosity is probably one of my key drivers because it focuses my attention to look for new and unique approaches that can be implemented quickly. I trust that some of the issues raised here may be of interest to you to pursue away from this blog of ideas and thoughts. The blogs run in date order with the most recent at the top of this page.
I had a very lively presentation and audience yesterday at the Inverness Marriott. Highlands and Islands Enterprise were kind enough to sponsor the event which was focused on the application of interpersonal influence to persuading a range of people (including difficult or awkward folk) to your way of thinking (see yesterday's Blog). The event was part of the Masterclass series for the Chartered Institute of Marketing and the Chartered Institute of Bankers. I had to follow in the in the footsteps of Hamish Taylor in Autumn 2006. It's great following someone who went down as a real hit!!
Masterclass and Hamish on Branding
Hamish's Taylor Branding Guru in Proctor and Gamble, Marketing genius inventing and delivering the flat bed for British Airways, and the first retail specialist to become CEO of Sainsbury's Bank. Late in 2006 Hamish ran an event called 'Branding Yourself' which went extremely well with about 80 attendees. So I wanted to make sure my event had a similar impact.
I know Hamish and the power he has over audiences, so I was a little concerned about turnout, but we got 67 for last night's event (and it was a bit snowy which puts people off so I hear!)
You Set the Frame with Audiences
Anyway, the Masterclass is the context - here is the message. After the session I was talking with a young manager about the event and how it had followed on from Hamish's talk. He asked me what I thought of the audience who were principally from the local area. (Some had travelled from Skye and Aberdeen - that is what people mean by local in the Highlands!) Anyway, to get back to the point. The chap I was talking with said that he was never really sure of how to deal with an audience and was always wary when addressing people he had not known before. He said 'how can you judge whether they are in favour of what you are saying or not?'
Expect the worst and you'll attract it
I recounted story of a colleague who always seemed to be on 'edge' when presenting. He said that he always ended up with 10% of the audience that not just disagreed with his viewpoint but often were hostile to to the points he was putting across. I have been presenting for many years as a lecturer and trainer/consultant and during that time had never really met anyone who was hostile - okay some have been a little disturbed or vocal - but no hecklers - not yet anyway!
On reflection, most seem to give you the benefit of the doubt and if there are any comments which could be classed as negative, I automatically assume its because they want to learn more or are just naturally curious and want to pursue points to the logical conclusion.
The Presenter should 'Set the Frame'
When I thought about presentations I realised that if you expect people to be negative and deliberately challenging - then they are the people you are probably going to focus upon. And if you are looking for 'negative and challenging' then you'll attract it. I thank my lucky stars that I expect bright and sharp audiences who will challenge and do so in the interest of all. By setting that frame, I have a better time focusing on all those who are positive and interested rather than negative.
So, to answer the question - yes I had a brilliant audience. Thank you HIE and thank you Inverness.
Look for the Positive and your will Find it
The major point is you can set the frame and attitude of any event or presentation by getting a positive mindset first. If you expect and plan for positive, eager, imaginative and challenging people that's what you will meet.
I am looking forward to a journey tommorow to Inverness when I am am taking part in a session concentrating on 'interpersonal selling'. It is based on using strategies of influence and persuasion to win new business. It has a novel twist because it involves using 'conversational change' and psychometrics focusing on how best read other people. By reading others' preferences and 'hot' and 'cold' buttons it is easier to predict their typical objections to your proposals.
This is really useful if you get involved in a variety of negotiations or presentations. Our event is organised by the Chartered Institute of Bankers and The Chartered Institute of Marketing with expected attendees of 80 at the Inverness Marriott. Highland & Island Enterprise are sponsoring the event, 90 Minutes to win new Customers to your Business
It's not often we get away but what a brilliant few days near to Caen to drink in the early days of Spring Legaudin
Thank you Denise for such a wonderful weekend, we had a fabulous time; the rooms are pure luxury and the food was superb. We felt so welcome with a wonderful friendly atmosphere.
Perfect location, wonderful company, fantastic accommodation. Who could ask for more? We are already looking forward to our return visit, next time it will be a team building event. I already have some ideas about how we can use the old ruins of the Abbey.
You want to get your business into the best shape ever, to demonstrate consistent and growing profitability, shareholder value, customer retention and growth, a lean structure and a culture of excellence and improvement driven by a team of leaders.
Perhaps your ambition is to grow your business and you are looking for new partners - perhaps you are courting acquisition? Perhaps you want to get it into the best shape possible to increase your choice of personal and business OPTIONS. So the question is - what do you do?
A Simple Answer
Conduct a 'due diligence' on your business. Obey the strict regimes of data gathering and analysis. Doing so will give you an accurate picture of your company. Failing to do so will reduce your options in a climate of change. Failing to address your 'core weaknesses' will put your business future and personal wealth at risk.
The Solution
You need a candid analysis of the culture, people and processes. This internal health check will also give you an insight into what your customers receive in terms of delivery. What's it like being a recipient of your service or products? Is it something to be cherished or an experience best not repeated? Focus on your internal customers as well. Simply speaking......... "quality of delivery is what the customer says it is". So listen attentively to what your customers tell you.
Who should do It?
Anyone who cares about the future of their business and the security of staff, managers, owners and investors of the organisation.
So How do you do it?
Due diligence is usually undertaken within a business when it is considered ripe for acquisition, merger or where a joint venture or alliance is on the cards. We have novel ways to apply our brand of 'due diligence' to appraise businesses now to give you any variant of these options whether you should expand, sell, form an alliance or partnership or just commit to grow organically.
'Due Diligence' is the answer……..so what is the question?
'Due diligence is usually associated with the activities that pre-date a takeover. The acquiring business conducts a quick preview of the company they want to acquire, lawyers focus on patents and copyright, trademarks etc. accountants focus on compliance and audits checking that income and expenditure are accurate. Investors focus on opportunities and growth - further JV's and potential growth.
Behavioural Economists like me focus on the hard and the soft elements of the business. What causes performance to improve? What are the core competencies of the business? What are the greatest threats to the business? Where is it most at risk? And my favourite question "If you had a magic wand what three things would you change about how you conduct your business with your customers to lead to sustained growth?" That was a long question which creates considered and imaginative responses.
I thought business was about people?
Hang on……..let me think just what is a business? A business is a community of energised people who cause things to happen, they achieve results. So when in possible acquisition mode, where is the 'due diligence' on the people side of things?
The bottom line is that most companies thrive or die due to the efforts or omissions of their top team and how they manage the culture of the business.
So isn't it a good idea to review the capabilities of the top people and the culture that reflects the business? Yes, of course, it is but this is never, ever - reviewed or assessed. You see, the City and Investors are so wrapped up in P/E ratios and balance sheets they forget what makes a company tick.
So, the launch of our new business is at hand. And what we focus on is 'soft due diligence' and, yes, we adhere and provide the traditional appraoch as standard.
I guess we make cultural change and post acquisition integration sound easy - because it is - if you have the formula, the track record and the curiosity to make new ventures thrive. If this interests you please follow the Blog over the next few days.
Seriously, would you buy a car or house without checking things first? Would you sign up to a holiday destination without some research? Would you risk your own personal capital without some rigorous analysis? I doubt it. So why do companies take such risks with acquiring a new partner, new business or a new deal?
I walked into a CEO's office yesterday and was met with a floor to ceiling whiteboard on which was written a detailed strategic analysis of current and potential markets and customers. Welcome to the world of Nick Price from Bright Purple fame who regularly commits to doing what others never contemplate.
Motivation to Succeed
Enquiries tell me that Nick's people play a large part in this strategic exercise. This is a great approach - get those who know and do the job to input their ideas. They know best, and see things that others cannot see. Nick is probably one of the few employers who recruit from the ears up.
I think of all the emotions that are important to stir in our people, one of the most important is curiosity followed closely by high energy. Without curiosity, we would never take the next step and without energy - would we want to?
Strategic thinking is doing more than purely thinking
All this thinking on a Saturday morning makes me review my ideas on strategy. I used to be a member and a workshop presenter of the 'Strategic Planning Society' until it went out of business, because no one had foreseen a fall in membership or interest in their complex models that do not reflect strategic thinking today.
Strategy is Simple
If strategy for a business is overly complex, who is going to implement it? Sometimes strategists come out with 'bells and whistles' which are really designed to reflect the 'cleverness quotient' of the originator than simplicity in execution. So what does this tell us about strategy. It comes down to a simple formula.
Focus x Energy = Success
With loads of Focus and no energy you get lots of intellectual tangents and thoughts and ideas that are not followed through. Little focus with bags of energy creates nothing more than 'busy fools', loads of enthusiasm but no direction. The absence of both are the best new recruits for the TV show Dragon's Den - which incidentally has to be the biggest spoof on serious business on TV.
How Did I get Here?
That's right - Nick's wall and strategy. The point I make is that strategy has to be simple. There are some simple rules to achieve your strategy. Decide on where you are currently, don't kid yourself, be really sure and ask others to confirm your opinion. Then decide what you want to BE, DO and HAVE, as a business. Now check the gap between where you are and what you want and develop plans to close that gap quickly.
Where does Culture fit in?
Culture is like a mixed fruit ice-lolly. Every time you take a lick you get to a different flavour beneath, and reveal more of the abundant flavours in that lolly. Culture is just the same. As you peel back one layer, you get another with deeper meaning.
Most people don't understand Culture
This includes most politicians. Business people talk culture but few know how to create one that lasts and serves their strategy. We are committed to culture change……….but few have made the journey or have the map and compass…….
Culture is what enables you to move quickly from here to there. Every business has a culture but 98% of them have been shaped by accident rather than design.
Opportunities to Shape your Culture
Just imagine if I told you that you could shape your business culture very quickly to achieve the results you desire - would you commit to the process?
What if I told you that it's a much shorter journey than you think? Would that motivate you to start the journey? What if I told you that the journey starts with an appraisal of how your customers see you? How excited would you be if you could see tangible results in 3-6 weeks?
Finally, do you know that culture is the overlay that fits neatly over strategy and is the core enabler and driver of business success?
Generally, I believe we get the day we deserve. So if you expect a great day meeting lots of interesting people, that's probably what you will focus upon and attract to you.
My favourite Hobby: Waiting in car dealerships..........not!
Early today on my way to a client meeting, I dropped off my son and his Fiat Punto at a major dealership where the car was to have been repaired.
You know what happens when things are going really,............ realllyyy………..slowlyyyyyy? I could not believe the poor quality of service. The staff were wholeheartedly unresponsive. Worse, they were socially unskilled to deal with customers at 8am in the morning and the whole experience was intensely frustrating.
While we were both waiting in the Reception of this well-known dealership in Edinburgh, I was watching the reactions of other customers - who were just like us!
There we stood. Logging the mounting confusion with the number of negative emotions in the room I started to list the potential moods and thoughts. Perhaps I was just mind reading. Frustration, impatience, anger, confusion, angst, suppressed rage, disbelief, disappointment…….were just some of the observed reactions written on the faces of these customers. It could destry their day - and did they deserve it?
Long term frustration was evident............and reflected in the 'tapping toes' and the 'pacing up and down'...........by many irate people now walking almost in unison........... adjacent to a coffee machine devoid of coffee, milk and everything else to make a cup of cheer.
Am I Invisible?
I even noted one sarcastic comment. One customer pacing up and down, frequently looking at his watch, checking the clock on the wall suddenly erupted……… "Am I invisible……..no one has acknowledged my presence for the last ten minutes."
I'll phone you when the car is ready…………..
How many times have you heard that phrase? And to make matters worse when we returned…………to pick up the car……..many hours later,.....after my son attended his seminars and I my presentations, we were greeted with this response.
Sure we always phone………
We had been assured that we would be phoned when the car was ready. That would enable my synchronising leaving town, picking up my son and dropping him at the dealership. It would not work otherwise.
You can imagine that dropping and picking up of vehicles requires some communication between the Dealer and the customer there again I am renowned for my mind reading!
You know the story. Neither of us had received a call on our mobile phones. However, this was not an unusual event. It is a pattern of behaviour employed by this business.
When we arrived, not in the best of moods we were told that Reception had tried to phone us………. My son lost his usual mild mannered demeanour and politely asked………….. "Please tell me what does TRYING to phone someone look like? I am sorry, but you neither phoned me or my father. You did not phone at all. Please, please, please…….. don't TRY to phone me next time………... JUST phone me as you said you would".
Customers should not have to plead to be treated well - after all simple customer service is not rocket science
Audi and Excellence
On the same day I also had to pay a visit to my Audi dealership to drop off my courtesy car and pick up my A8 after servicing. As usual, nothing was too much trouble for the service department. In fact they are brilliant. Thank you for arranging everything, Pauline.
Some learnings and one key point. The sales people missed some classic buying signals that I was sending out a few days before when I had arranged the service for the car. I had requested an evaluation against a new car. No feedback on a deal, no evaluation of my car - no qualification.
Okay, I am being too tough - but I would hate to lose sales as they do. Most sales are lost because salesmen don't ask!
But generally Audi is spot on 99.9/100. I know the sales staff don't want to harass customers and they do that well - but a little courage and propositioning may do them proud!
Sales or Order Takers?
You know generally speaking, I think Sales people are now so concerned with losing a customer that their style is just too loose. In fear of rejection they back off.
No Business if there are no sales
"Without a sale there is no business" - so work on building rapport with the customer. Fearing alienating the customer is so over-powering that most sales people back off and hope that the prospect will 'close the deal' themselves.
I am so impatient. If I had not closed the sale on my wife's car deal the salesperson never would. I had to say, "Look I am here - we want that car - what are the options? (Volvo please try some consultative selling techniques with your existing customers).
Sometimes I wonder if true salespeople have all emigrated to 'sales heaven' and been replaced by 'order takers'.
Generally, supermarkets are no go areas for me!
This day was full of interesting encounters and I was to be surprised and delighted. My wife was away on business and I decided that if my son and I wanted to 'eat' it may be a good idea to pop into Morrisons the supermarket and buy some food.
I grabbed the necessary ingredients for 'steak and salad', and joined a long queue. I was in a fine mood just musing over whether I should turn my hand to French fries or baked potatoes. This debate was occupying most of my thinking time but somehow I must inadvertently have been giving off 'serve me please' signals. I say this because the assistant store manager whisked my trolley away from me and opened up a separate till and served me straight away.
I was taken aback. I wondered if my body language had indicated some frustration. I had another thought. Had I appeared rude? So I asked. "What caused you to whisk me away and open up another till for service? Why would you do that?.............. I was perfectly happy waiting and thinking of both baked potatoes AND chips.................. I was not demonstrating any degree of impatience I was just waiting my turn".
Calmly, he reassured me that my behaviour was not the cause of his actions but simply stated that he disliked to see people waiting in queues in his supermarket. Fantastic. Well done Mr Morrison, Colinton Supermarket in Edinburgh - what great service! A good end to a good day.
Jan Carlson…………. 4- 10 second Moments of Truth
This made me think of Jan Carlson's ideal of customer service. Being CEO of Scandinavian Airlines he clearly understood that all his people have opportunities every day to influence the moods and emotions of airline customers for good and bad. He calculated with his 10,000 staff working worldwide - each employee would have at least 250 opportunities each day to influence customers and passengers for the better.
He called these 'emotional triggers' - "moments of truth". His strategy for total customer service was to ensure that these very short encounters - lasting maybe no more than 4-10 second's would be opportunities where the airline could provide real value and impact the mindset of the customer for the better.
These short 'moments of truth' were all opportunities to create a positive impression and association in the mind of the passenger and customer. So the request for the 'way to the bathroom' , the enquiry about "changing flight plans" or "finding a quiet area" could be a real opportunity for adding value to the mindset of SAS customers and maybe yours also.
Customer Service is Simple
I think the dealership that serviced my son's car has a lot to learn about moments of truth, because each day they must create thousands of opportunities for people to complain or, worse still, walk away, choosing never to return! I'm glad I have no investment in their business. And a general note to anyone in sales "you can only score if you make the shot". - so what are you waiting for?
A real driver for change was the Tom Peters and Robert Waterman classic 'In Search of Excellence' that triggered a whole series of books and the corporate transformation movement. The book is 25 years old today. I did not realise time had passed so quickly.
Nothing less than Excellence
I remember when 'In Search of...........' was published I was a young senior lecturer in business economics in Edinburgh. I rushed in to my Postgrad students with the last 12 copies of the new text - we had to wait for a consignment from the USA because IBM had purchased every single book in Scotland for their managers in Greenock. The book took me two days to read, digest and make detailed notes of specific applications.
It had a significant effect of how we saw, evaluated, developed strategies and drove organisational change in interventions with clients. It was a fresh look at the application of what we called OD (Organisation Development). The impact of the book sent ripples for change through many businesses who were still trading as if it were the 1960's.
Three years later, in 1986, I had left academia behind and started my business as an economist driving organisational change. 'In search of...' and the perceptions it created in the business world enabled those organisations curious and impatient for change to get on with it. And from this arose the 'Quality' and the 'Customer Care' strategies that occupied most of our time.
Making Change Stick
Has the time passed quickly? You bet. And with it the excitement of looking for new ways of making change stick. My interests are not so much what makes companies excellent, but rather what enables change to take hold faster and tighter. My interest lies in implementing deep change causing business improvement - rejecting the cosmetic quick fix associated with change in the last ten years.
Leadership drives out Resistance
To me, the key issue is still conquering resistance, enabling change to happen faster and without error. The secret behind removing resistance is engagement through leadership. To remind everyone of the good sense to which Peters and Waterman introduced us - here are the eight key principles published in their book 25 years ago.
A Bias for action - stop procrastinating and make decisions and implement'
Close to the Customer - engage and PARTNER the customer to promote lifetime value for them and you!
Create autonomy and entrepreneurship within the enterprise - everything can be simpler
Achieving productivity through people
Hands on, Value driven - 'doing, not just thinking'
Stick to the Knitting - have a clear focus - don't be distracted
Simple structure with lean staffing
Create structures and processes, which have 'loose-tight' properties to fit changing circumstances
Learning to Thrive on Change
It's worth bearing in mind one of their subsequent texts..... 'Thriving on Chaos' discounted some of their original applications - stating they were not a recipe for success for everyone. 'Thriving' taught us that adherence to key principles does not work for everyone - it's the ability to adapt to change that is critical. And that is still true today. What works for one business does not work for another. We all have different histories, cultures, products, markets and customers. The key is that 'change has to be tailored' to the circumstances rather than 'principles' applied blindly. And since most businesses are subject to rapid change in their market, it stands to reason that our ability to handle and implement change has to be clean, responsive and faster than the changes impacting us
Managing Performance: Have things really changed in 14 years?
I was asked by the editor of Training Journal to review an article I had written in December 1993. Debbie Carter, the editor, has asked several contributors to revisit their original articles and express how their thinking has changed. I managed to get the piece on Managing Performance and have uploaded it to the archive of our website.
My piece was written on a major drive through Lloyds Bowmaker (DFD) focused on changing the culture to that of continuous improvement through improving service excellence. The change was successful, and the MD and half his Board of Management were subsequently head-hunted by the ever powerful General Electric to acquire and merge GE Capital's interest into the platform of Mercantile Credit. Barclay's had sold the business to GE Capital.
Changing the Old Culture through post Acquisition Strategies
The new team further went to develop the old Mercantile Culture into a strong GE Culture and business named GE Capital Motor Finance. This culture was based on strongly managing performance that had been developed within their old Lloyds business by developing a strong and powerful post acquisition strategy. So what the management team had applied and created in Lloyds Bowmaker (now Lloyds TSB) had been based on how they 'managed performance'
'On average 10-25 % of employees in organisations are poor performers'
Revisiting the old article and after reading it several times I thought about how business had improved in creating the culture where people can contribute and give their best. I made the very confident assertion in the article that, generally speaking, managing poor performance (out of the business) was a key priority for many organisations. As you can see from the heading to this paragraph I confidently claimed that our research indicated that at least 10-25% were not up to the grade. I no longer believe that '25%' but I do think it ranges between 5-10%, which is still too high.
I believe that many issues have now been "managed out" of the average organisation but there are still issues that need to be resolved. It only requires a simple assessment of performance standards that drives overall productivity. My view is that we should ever be seeking improvement in quality, cycle-time reduction, cost containment, a return on human capital resulting in fantastic customer service and profitability.
Management get the Staff They Deserve
This is still a belief I hold. If you have lousy managers, you develop poor practices and standards that fall well below the norm. Introduce a focused manager who is good with people and watch performance rocket. Great people and teams usually have fantastic managers and leaders. Amazing how one breeds the other.
A Cold Brutal Test
If you don't think this is accurate take my 'cold brutal test'. Imagine the business in which you work currently belonged to you. You take the personal risk and cover the salaries of the people who you work with currently. Their performance influences your business personally. Think seriously - now answer these questions.
What percentage of the people would you keep?
What percentage would you place on performance improvement projects?
Honest answers to serious questions reinforce the reality that too many businesses have not confronted the core issues.
Customer Relations is a Reflection of Human Relations
If you improve the quality of the business through your people internally you will create a fantastic climate of powerful and purposeful 'human relations,' which will be mirrored in how you do business with your customer. Companies or organisations with a poor reputation for customer relations will find several problems if they cast their eyes internally to their own culture.
I still think the basic tenets of the article are correct - although many more organisations are tackling the issue. Nevertheless, the problem is still around. An operations manager was talking with and me about poor performance and the lack of talent in the market. She said simply, "It's better to have someone doing the job poorly than no one doing the job at all! I can understand her viewpoint, but what happens to performance standards and team norms? Focusing on the defaulters does nothing for maintaining high standards and service.
Alpha Performers or Question Marks
Managing performance is still an issue for business. People don't like to give bad news, and assertiveness is still an issue which needs to become part of a culture. We are in business to achieve goals through people. GE would never commit to a policy of employing and retaining below standard deliverers. And that's where the secret lies: in choosing, retaining and, through talent management, coaching people beyond their current dreams and abilities. Its only by supporting others to move beyond their present performance that people can really actualise their potential.
Given the choice, would you rather go through the Jungle with the high flying 'Alpha Performers or the 'Question Marks?' I know where my vote goes.
And, finally it's great looking back at interventions and know with certainty that all those efforts did make a difference to the performance of the businesses - so this stuff does work!
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