Cordialism: Africa HR Summit
66
Cordialism How the best companies lose their flavour. Erik Vermeulen Behavioural Economics Strategist #cordialism
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Companies struggle today to create the experiences their Marketing say they do. It boils down to Culture and the consistent behaviours of all employees across all levels of management. Here's my presentation from the Africa HR Summit.
Transcript of Cordialism: Africa HR Summit
Cordialism
How the best companies lose their flavour.
Erik VermeulenBehavioural Economics Strategist
#cordialism
What we’ll cover today…
How we lose
our flavour.
Getting the
flavour back.The HR /
Marketing
Partnership
What do you think when you see…
What do you think when you see…
What do you think when you see…
What does history tells us…?
“The world is changing very
fast. Big no longer beats small.
It’s now the fast beating the
slow.”
Rupert Murdoch, Chairman and CEO News Corp
Companies today are most worried
about…
EXPERIENCE & ENGAGEMENT
People will judge your organization by the
experience they or an acquaintance have with
your brand 90% of the time and only 10% or less
by the marketing messages they’ve heard.
Companies today are most worried
about…
EXPERIENCE & ENGAGEMENT
Companies who SAY that they’re great at
customer service often aren’t. The same
goes for the message “our people are our
most important asset.”
Companies today are most worried
about…
EXPERIENCE & ENGAGEMENT
This represents the internal and external
duality of successful companies in the
experience economy.
Engaged employees provide the best
experiences.
No marketing campaign will convince
someone you’re great at service when
they’ve had a lousy EXPERIENCE
from a disengaged employee that
demonstrates the opposite.
How do
we lose
flavour?
Your Company
Your Idea
Your Ideal Mix
Your Growth
• More people
• More systems
• More processes
• More control(s)
• Different backgrounds
• Different behaviours
• Different goals
• Different motivation
• …
Reputation = Experience - Expect
Your diluted Flavour
Why is company culture
important?
In 1995, the average person
had 27connections.
In 2015, the average person
will have
415connections.
Right now, Gen Y outnumber Baby Boomers,
96% belong to Social Networks
68% of customers
leave because of poor
employee attitude
41% of customers are
loyal because of a good
employee attitude
70% of customer brand
perception is determined
by experiences with people
Your marketing department
does not own your brand or
your culture, it belongs to the
collective behaviour of your
employees.
Delivering a consistent
experience
New Product
Development
Annual Report
Internal
communications
Website
Packaging
look-and-feel
Special
promotions
Customer
Communications
Office design, e.g.
Experience Centre,
Call centres
Product line
alignment
Retail outlet
design
Signage & Way
finding
Collection
points, pre-
paid kiosks
Employer
Brand
Leadership
behaviours
Service
standards
Business
principles
People &
BehaviourMarketing &
Communications
Products
& ServicesEnvironments
Billing
Experience
Naming
After sales
service
Training
The HR -
Marketing Partnership?
28
Discovery Health“When you need us, we're there for you”
Promise: Consistent support and peace of mind
Look & feel: Caring, modern, simple
Why successful?Has the highest ratings for claims-paying ability
Largest and most secure brand – leverage their size to deliver access to quality healthcare
How differentiated?Empowers its customers to have a healthier lifestyle by providing them with the necessary tools through its trendsetting wellness programme, ‘Vitality’
Offers unique products with better benefits and claims lower prices than its competitors
Brand Learning: Discovery maintains consistency throughout the brand, a caring feel, and provides more than just ‘healthcare’ to its customers. Their high claims-paying rating proves that they make good on their brand promise
Experience Spectrum
TangibleIntangible
HAPPY FAMILIESREACH CHOCOLATE STANDARDS WINNING
PHYSICALCHARACTERISTICS
What it is
FUNCTIONAL CHARACTERISTICSHow it performs
BRAND CHARACTERHow it expresses itself
EMOTIONAL CONNECTION
How it makes you feel
EMOTIONAL PROJECTION
What it says about you
Success = Growth = Employees
Engaged employees work with passion and feel a profound connection to their company. They drive innovation and move the organization forward.
Actively Disengaged employees aren’t just unhappy at work; they’re busy acting out their unhappiness. Every day, these workers undermine what their engaged co-workers accomplish.
Not Engaged employees are essentially “checked out.” They’re putting in time —but not energy or passion — into their work.
Success = Growth = Employees
10% of employees are poor performers
10% of employees are top performers
The other 80% are fence sitters and just get on with being “vanilla”
Who do you want
influencing your new
employees?
HCM Performance Drivers
Internal
Service
Quality
Strategic Design
HR Policies and Procedures
HR Automation:
• Forecasting
• Staffing
• Scheduling
• Succession
• Culture / Process
Alignment
Employee
Engagement
Wellness
Engageme
nt
Employee
Productivity
Employee
Retention External
Service
Value
Customer
Satisfaction
Customer
Loyalty
Market
Share
Profit
Growth
Revenue
Growth
Attitude / Loyalty
Knowledge / Skills
Build Relationships
% Growth
Customer
Testimonials
1 year
5 Years
Service concept:
• Consistent
• Intentional
• Different
Value to customer
Better than last visit
Better than competition
Lifetime Value
Retention
Repeat Business
Referral
Strategy & Compliance
Recruit for Talent
Talent Development
Talent Retention
Reward
>Employees = >Diversity
Flavour? What flavour?
“The goal is not to do business with
everybody who needs what you have.
The goal is to do business with
people who believe what you
believe.” Simon Sinek
Bra
nd
st
ren
gth
Challenge
Building advocacy
5 AdvocacyI believe in what we do and I recommend our brand
4 ActionI know what I can do to support our brand
3 AbilityI have the skills and knowledge I need
2 Attitude It makes sense to me
1 Awareness I know what we stand for
“We change behaviour by framing what
we want people to do into something
that is relevant to them.”
The ‘new’ culture should not be
seen as ‘new’. It should be seen
as a business case that rests on
doing what’s required to meet
the future demands of our
clients.
5 ways to
get your
flavour
back.
1. Get the right people on board(achievements are useless without context)
MEN WANTED
For a hazardous journey.
Small wages, bitter cold, long
months of complete darkness,
constant danger, safe return
doubtful.
Honour and recognition in case of
success.
2. Give people PURPOSE(beyond pleasing)
The way people define themselves has changed.
Very long ago: Man / Woman
Long ago: Hunter / Gatherer
Recent: Skills (industrialisation)
Today: Career
Tomorrow: Meaning people add or create.
Yesterday, today, tomorrow…
The Golden CircleWHY? At Apple we believe in challenging the status quo, in thinking differently. Making a dent in the universe.
WHAT? We sell computers, laptops, cellphones, tablets etc that are highly stylised and consumer friendly.
HOW? To challenge the status quo, we make sure our products are beautifully designed and easy to use, and user-friendly.
HOWWHY WHAT
3. Get people ENGAGED(get them to give a damn)
21%Engaged
41%Enrolled
30%Disenchanted
Significantly lower
on all three
components of
engagement
High scores on
rational and
motivational
components, but
low on emotional
That’s only 1 in 5
Global Workforce Survey
8%Disengaged
Completely
disconnected
rationally,
motivationally and
emotionally
Global Results (based on rational, emotional, motivational): Based on a global survey of 90,000 employees in 18 countries and Tower Perrin’s database of 2 million annual responses in 40 countries
46
“You can’t sell it outside if you can’t sell
it inside.”
SHEER DRIVING PLEASURE
BEAT THE BENZ
GLOBALLY CONNECTINGPEOPLE
HIP GEEK
Perceived Control
Perceived Progress
Connectedness
Vision / Meaning
The Partnership Model
Glee
Fee
ME
Flee
See
WE
4. Provide the correct
BEHAVIOURAL FRAMEWORK(something to do)
What we allow will continue.
Life Skills / Values / Motivation / Attitudes
Vision, Mission and Values that are corporate focused, but individually applicable.
I am / I do?
A set of behaviours / Actions that guide all employees at every level of the organisation.
I am / I do?
Increase in goal-directed Actions
Strengthening the underlying behaviours lead to positive actions
towards achieving the company goals.
? Company goals determined by EXCO that will result from behaviours.
In order to achieve high standards of success, you are
required propel yourself forward towards your goals.
?
Values
Goals
Average companies give people
something to work on, innovative
organisations give their people
something to work toward.
BEHAVIOURSReputations are the result of what
people in the organisation
consistently do.
“By aligning what we say we do, with
what we actually do, we positively
influence what our customers think and
feel.”
5. RECOGNISE performance(something for doing good)
Market
Norms
Social
Norms
