Wednesday, July 25, 2018
Annette joins other Forbes Coaches Council members, who are hand-selected, to become part of a curated network of successful peers and get access to a variety of exclusive benefits and resources, including the opportunity to submit thought leadership articles and short tips on industry-related topics for publishing on Forbes.com.
Forbes Councils combines an innovative, high-touch approach to community management perfected by the team behind Young Entrepreneur Council (YEC) with the extensive resources and global reach of Forbes. As a result, Forbes Council members get access to the people, benefits, and expertise they need to grow their businesses — and a dedicated member concierge who acts as an extension of their own team, providing personalized one-on-one support.
"I am always honored to be recognized for my work, and being invited into the Forbes Coaches Council is truly icing on the cake. Forbes Coaches are not only passionate about the work they do but also about helping others - and each other - succeed. I'm thrilled and grateful to be a part of this prestigious community, which will certainly continue to solidify my role as a thought leader in the fields of employee experience and customer experience coaching." -Annette Franz
Scott Gerber, founder of Forbes Councils, says, "We are honored to welcome Annette into the community. Our mission with Forbes Councils is to curate successful professionals from every industry, creating a vetted, social capital-driven network that helps every member make an even greater impact on the business world."
For more information about Forbes Coaches Council, visit https://forbescoachescouncil.com/. To learn more about Forbes Councils, visit forbescouncils.com.
Wednesday, July 18, 2018
|Image courtesy of Pixabay|
In a nutshell... yes. Corporate culture is linked to so many business decisions and business outcomes. You might be surprised!
Today's post is a follow-on to last week's post, A Fish Rots from the Head Down, in which I wrote about the need for company leadership to model the behaviors they want to see from their employees in order to transform, inspire, and drive the company's intended culture.
Culture is such an important part of any business. It really is the foundation upon which the business happens, i.e., fails or succeeds. And there's some academic research that supports this stance.
I recently stumbled upon some culture research done by Duke University's Fuqua School of Business a couple years ago. The findings are quite interesting, as they uncovered the link between culture and both business successes and business failures. If you'd like to read the details of this research, there are two papers: Corporate Culture: Evidence from the Field and Corporate Culture: The Interview Evidence.
I'll focus on the latter, which was based on both surveys of 1,348 CEOs and CFOs and in-depth interviews with executives representing 20% of the U.S. equity market capitalization. Questions addressed in this paper included:
- What is corporate culture?
- How important is corporate culture?
- What mechanisms underlie the creation and eﬀectiveness of corporate culture? How do other formal institutions (e.g., governance or compensation) reinforce or work against culture?
- Do companies think their culture is eﬀective and if not, what deters ﬁrms from having an eﬀective corporate culture?
- Are the upside beneﬁts of an eﬀective culture greater than the downside costs of ineﬀective culture?
- What aspects of business performance does corporate culture aﬀect? Does culture impact ﬁrm value, productivity, corporate risk-taking, growth, M&A, ﬁnancial and tax reporting, whether employees take a long-run view, and/or corporate ethics?
- How can corporate culture be measured?
Some interesting findings from this research include:
- Most executives would walk away from an M&A deal if the target acquisition is not aligned culturally with their existing cultures; others would require a heavy discount on the purchase price.
- Culture is set by the CEO.
- The Board doesn't drive culture but can influence it through their choice of a CEO.
- Executives agree that for a culture to be effective, the values must be backed up by behaviors and norms.
- Culture is a top-three value driver of the business and one of the most-important forces behind value creation.
- An effective culture improves the company's value and profitability through:
- fostering creativity and encouraging productivity
- higher risk tolerance
- mitigating myopic behavior
- creativity and innovation
- Effective cultures (a culture that promotes employee behaviors that drive successful execution of the company's strategies) happen when the company walks the talk and lives the values.
- An ineffective culture (does not promote those behaviors and might even work against the right behaviors) increases the chances that employees will act unethically or illegally.
- Few executives agreed that their culture is where it ought to be.
- Why not? Leadership needs to invest more time to develop the culture.
- Ways to measure the culture include:
- conference call transcripts/analyst calls
- employee age, tenure, and turnover
- external communications by the company
- portrayal of the CEO in the press
- understanding the circumstances around a CEO change
- employee opinions, e.g., Glassdoor
- assessments of whether the culture is aligned with the needs of the business
- evaluation of internal communication patterns
- management actions
I used to believe that culture was "soft" and had little bearing on our bottom line. What I believe today is that our culture has everything to do with our bottom line, now and into the future. -Vern Dosch, Author, Wired Differently
Thursday, July 12, 2018
|Image courtesy of Pixabay|
What does "a fish rots from the head down" mean? It means that the problem starts at the top, that the problems, failures, issues, toxicity, etc. in your organization - or any organization - start with the leadership team.
Senior leaders and executives: take a good, hard look at how you and your colleagues act, behave, make decisions, walk the walk/talk the talk, live the values, etc. How would you feel if your employees did what you just did? If you say, "Great!" Kudos to you. But if you scratch your head and think that what you do is fine because you lead a team or lead the company - but wouldn't want your employees to act the same way - you are wrong. Everyone in your company must live by the same standards, by the same values.
That's how cultures are purposely created. That's how cultures are sustained. That's how cultures are transformed.
Culture is like the wind. It is invisible; yet its effect can be seen and felt.
-Bryan Walker, Partner and Managing Director, IDEO
Leaders must model the behavior they want to see - this is where the real culture transformation begins. Because, metaphorically speaking, "What's good for the goose (leader) is good for the gander (employee)." In other words, if you, as a leader, want employees to act a certain way, then you must live the values, lead, model, and show them what the right or acceptable behavior is. And only then does culture become "how employees act when the CEO isn't looking." Because, let's face it, most of the time the CEO is not there, looking over an employee's shoulders. But if employees see that executives put themselves "above the law," forget it; that's a major culture fail.
If you're in the midst of transforming your business to a customer-focused/customer-centric culture, then employees look to you for what that means. It means that you'll...
- create meeting agendas that always include customer experience and employee experience topics and metrics, customer and employee stories, etc.
- walk around the office, talking to employees and asking them about their work days, their careers, their passions, their lives, their jobs, etc., ensuring they have everything they need to have a great experience, and letting them know how their work matters and that you care about them as humans (not just cogs in your wheel to success, as Bob Chapman notes)
- motivate and inspire employees to do their best work - and to deliver the best for your customers
- empower employees
- listen to employees and to customers - and act on their feedback
- communicate with employees openly and candidly - about the vision, the purpose, the mission, the strategy, the business, etc.
- visit customers regularly to understand their experiences - and act on what you learn
- field calls from customers and mystery shop your own phone lines to ensure that the customer experience is what you expect it to be
- deliver regular company updates via email and/or video that always incorporate some mention of employees and customers, their importance to the business, great things they've done or are doing, and how the CX vision and strategy are moving forward
- develop core values that support this customer-focused/customer-centric culture
- talk about and live the core values, always!
- recognize and reward employees for the behaviors that drive great customer experiences
- ensure all employees know that they impact the customer and the customer experience (and how)
- consider the impact of all decisions - yours and the ones that your employees make - on the customer and her experience
- make decisions through a "people-first" lens
- and more!
Don't let your culture rot from the head down. If you, company leader, do these things, it sets the tone for your employees. They'll get it. They'll see that you mean business. But if you never do any of the things listed above, your employees won't believe that they - or your customers - are important or that there's any kind of transformation underway.
When employees have confidence in their leadership team and the mission they've undertaken to transform the business, they buy in, they believe, and they align with you and with the goals of the transformation, of the organization.
When employees align with senior leaders and with the mission, when everyone is working together and focused on the same goals, then the real magic can happen.
Why is culture so important to a business? Here is a simple way to frame it. The stronger the culture, the less corporate process a company needs. When the culture is strong, you can trust everyone to do the right thing. -Brian Chesky, co-founder and CEO, Airbnb
Thursday, July 5, 2018
|Image courtesy of Pixabay|
Data is just data until you do something with it, right?!
That statement has plagued companies for a long time. For a variety of reasons, not the least of which is that they just don’t know what to do with the data.
In December 2017, I hosted a webinar with Logi Analytics titled 5 Steps to Making Data Actionable, in which I shared tips on moving beyond data for the sake of data – and dashboards for the sake of dashboards – to recommending insights and outputs that drive action, I thought I’d share some details about one of the areas I covered during my presentation: how data-driven decisions and actions have evolved, particularly for customer experience professionals.
Customer experience professionals know that, in order to deliver a great experience, companies must listen to customers, link customer feedback to transactional (and other) data, and act on what they hear. There’s an old Gartner statistic that I still like to share because I believe it’s relevant to this day:
95% of companies collect customer feedback, yet only 10% use the feedback to improve, and only 5% tell customers what they are doing in response to what they heard.
This statistic is a good, high-level representation of how companies have matured or evolved (or haven’t) along the continuum of data-driven success.
Let’s take a closer look at that continuum. And let’s assume that Phase 0 is not listening or looking at data at all.
Phase 1 (Feedback) is where we see companies in the primitive stages of understanding the importance of data, i.e., they know they need to listen to their customers, oftentimes because everyone else is doing it. But that’s all they do; they check the box to say, “We listen.” And they’re paralyzed by the reams of data that exist within their systems.
In Phase 2 (Metrics), companies pick up their next bad habit when it comes to customer listening and understanding: they focus on a metric, on making their number, on moving the needle on the score. Doing that, instead of using data to improve the customer experience, is not really progress, and it’s not really a good thing. When you focus on the metric, you reward the behaviors that move the number, not on those that deliver a better experience. those (former, not latter) behaviors are often bad behaviors.
The next level in the data-driven success continuum is Phase 3 (Insights). Now we’re starting to make some progress. Companies at this level are interpreting the data, digging for insights, and telling the story of the data. They are making some data-driven improvements, mainly tactical at this point.
In Phase 4 (Outcomes), companies realize they cannot just make improvements without linking the findings and the work to be done to operational metrics and business outcomes. They realize they’ll make greater progress and get the resources (human, capital, and more) if they can show that “if we do X, it will impact Y.”
And finally, in Phase 5 (Innovation), we see some real progress! Companies us the data, the insights, and the linkages to make some real, significant, strategic improvements: they use the data to develop new products that solve problems for customers and help them do some job, and they redesign the customer experience to better meet customers’ expectations.
The important component along each phase is, obviously, the data and what is done with the data. Critical to that is the way the data is presented to the one who consumes it and needs to do something with it. There’s definitely an evolution in analysis and reporting, as well, as companies mature along the continuum. The output goes from basic descriptive statistics to metrics and trends to insights and stories to ROI and financial linkages to predictive and prescriptive recommendations that retain customers.
Consider these things when you’re developing reports and dashboards for customer experience professionals or for those who need to consume customer data in order to improve the experience. The data needs to be presented in a way that’s actionable; more specifically, it needs to tell the user exactly what needs to be done, why, and what the impact of making the change will be.
There are two goals when presenting data: convey your story and establish credibility. -Edward Tufte