Category Archives: Articles

Five Ideas on hearth, home and harmony.

By naomisimson | Published: July 4, 2010

I was interviewed recently for an industry publication about my early days, family and getting ahead…. I thought I’d share my answers.

Q1: You say on your website that “life is the sum of our experiences, not our belongings”. So can we have some thoughts on another sort of experience, the experience of buying a home to live and raise a family. What can you tell us about your experience of the first home you purchased?

A1: I bought my first home [flat] before I was married - back in 1988 had saved the deposit over 3 years. It cost $80,000 - which was a lot of money. Interest rates shot up to 16% - ouch. It was so hard financially that I had to take in a border and I could only afford to eat at home, I lived on boiled eggs. There was an upside to all this hardship however, when I sold the property a several years later, the price had gone up and I had created a small nest egg that was the deposit for the family home. In some ways that property was like forced savings.

Q2: One essential belonging is having a roof over your head but reaching that goal can be very stressful. With continual mortgage strain, do you think a new experience, family fun or bit of indulgence can provide some relief?

A2: Good times don't have to cost a lot - and it is important to balance hard work and determination with joy. A fun thing to do is to create the family dream list - things that you want to do or experience together as a family. So whilst you are paying off the mortgage you are still planning and looking forward to other family activities. One of my favorite sayings is 'Even if you are on a diet you can still read the menu' - it is important to imagine, dream and plan. Have some small things on the list - and make sure you do them.

Q3: What are some experiences you could recommend for these people, to help them with mortgage relief or give them more quality in their family time?

A3: Children don't want to be entertained - they want your time and listening. Shared experiences are the basis of all relationships. Having everyone in the kitchen cooking the meal, or everyone researching the family holiday means that everyone has a voice. [The family that plays together..] Giving someone a gift of something they have always wanted to do and sharing that joy creates fabulous family connection.

Q4: You were a winner at the National Telstra Business Women’s awards, we have a large female audience and the results of our recent survey concluded that females are the most active online seekers in the home loan market. What words of advice could you give these women who maybe trying to juggle a career and/or motherhood as well as a home?

Q4: There is no right answer - we all just muddle through the best we can. Each day with a family and career is a day of logistics and planning. My trick is just to be truly present at what ever I am doing in that moment. If I am with my children then I am in their world and playing their games. And it is the same at the office. It is not the quantity of time that we spend with our family it is about our connection with the moments we have.

Q5: Your favorite experience?

A5: How could I have a favorite - That would be like choosing between your children. There are perfect experiences for different moments. Sometimes you want to put people out of their comfort zone - other times you want to pamper them or give them a treat. That is why RedBalloon has more than 2,500 different activities. There is something for every occasion and personality - the easiest thing is to use the gift finder.

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The next generation will have it's say

By naomisimson | Published: November 25, 2009

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Presenting to 150 fifteen year old girls is probably one of the tougher gigs that I have had. Not helped by the fact that my daughter said just before I left home... 'Don't be embarrassing - and they really aren't interested in all ...

I looked at these young women and thought what would I have liked to have known all those years ago? I showed them a photo of my girlfriends and I at the same age. This started the conversation - instead of a mother, CEO and old woman - they now saw that I too had started my journey in the same place they are now.

I shared with them about the difference between accountability and responsibility. I gave them vivid examples of leadership versus management. But more than anything, I wanted to leave them with the message of persistence. Of not giving in.

I've met people throughout my journey - all of which have added to who I am now. Even the most horrendous manager taught me how I did not want to be. I said: "When I'm running the show it will be different."

Entrepreneurs are like clown punching bags - we keep getting dealt a blow (we never know where from) but up we get and keep going. We never give up. There is no option of when should I quit. We have only one way forward - towards achieving our purpose.

Our purpose engages others in what we are up to. It is the people around us that will make it happen (as my colleague Megan said to me yesterday - "I'm the detail in your devil"). Persistence is a key ingredient. And being passionate about what we do everyday is a given. (Going into business just to make money is not very inspiring to anyone).

These young women were eager to hear my story, and had many questions. But I left them with one thought. To follow their dreams single mindedly, that it is wonderful to bring our femininity to whatever we choose to do... (we don't need to act like blokes). That by the time they are my age I would like to see that the public company boards in Australia are representative of the communities they serve.

Perhaps some of the young women I met today, will be part of that amazing revolution yet to take place in the board rooms of Australia (I just hope we don't have to wait 30 years to see it happen).

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3 tips on great gifts

By naomisimson | Published: October 12, 2009

To give or not to give that is the question. Giving a gift is not always the right thing to do. In fact a bad gift can do more harm than good. A gift can either enhance a relationship or detract from it. In giving a gift it shows our intentions towards that person, it tells us something about our relationship with them - what we think of them, how important they are to us, the potential future relationship we intend to have with them. I often giggle that my mother-in-law has given me alot of handkerchiefs over the past two decades, I'm still trying to work out what that means.

Giving an acknowledgment, or thanking someone authentically can be a great gift in itself. It usually comes back to the intention of the gift. Is it given from love, kindness and generosity or is it given hoping for something in return, to buy a favor, or to coerce someone.

A gift or a thank you needs to be given purely out of generosity and to show that the recipient is cared for. Then it will enhance the relationship. It is the same with gifts given in business. What you give someone is just as important. A gift can often be met with cynicism if it comes with an agenda. A great gift will be relevant to the recipient, something that is of worth to them.

At RedBalloon we've found that more than 50% of Australian businesses give their employees a leaving gift – yet less than 1% give them a welcome gift (and a uniform does not count as a welcome gift). A new employee will feel great when you congratulate them for joining an organization. It will set the tone of acknowledgment at the commencement of their employment journey.

A gift reinforces our status, and supports the basic need of being a part of something important. Ideally you want to give them a gift that they are proud of, that they want to talk about – that shows that you know that person. I think one of the reasons why experience gifts are so popular is because people get to choose from thousands of activities – something they have always wanted to do – and they get to share it with those people who are important to them, a spouse or friend for instance.

I remember once in a speaking engagement where I had been sharing how important it is to acknowledge an individuals contribution to an organization, in a personal and authentic way – and that this must be done regularly (according to Gallup employees have forgotten within 7 days an acknowledgment received). A question came from the audience –“but what if you say thank you to some one – or give them a gift, or acknowledge them with an award, and then a month or two later they do something that is 'against company policy' or detrimental to the business.“ At the time I was surprised by the question. As a parent do we not acknowledge the good things our child does because we know very shortly they are likely to do something naughty?

I have always found that if you authentically acknowledge someone – they feel so good about themselves that they wont want to let you down. People by nature will respond positively when they know that you really do care. It becomes person.

Here are three steps to authentic gifting:

  1. Know the intention of the gift and be real when you deliver the message. That is, thank them specifically for what they did for you, or the relationship you have with them.

  2. What impact does that person have on you personally (as well as the organization) eg 'without your contribution the project would not have shipped on time'

  3. Let them know why you selected that gift for them. eg 'I know that you have always wanted to learn sushi making – you might like to choose that for yourself and partner.'

We are all busy – but the power of delivering a great gift with reap more rewards than you can ever imagine…Not just because of the way you made them feel. But the way it made you feel when you gave the perfect gift.

 

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I love this stuff…

By naomisimson | Published: September 24, 2009

In another life I would love to have the 'futurologist' gene. I get so excited when I see clips like the one below. I cannot imagine what my children's lives will be like.

I was at a sales convention some months ago and one of the delegates was excitedly sharing that he could purchase media so cheaply... "this downturn is fantastic he said - if you've got some dollars, media advertising has some real bargains to be negotiated."

It got me thinking - "Who's watching?" Maybe the affordability of advertising has nothing to do with the downturn - but more a fundamental shift in media in how we consume information (a restructure of an industry). 24 out of 25 of the largest newspapers in the world have a significant decline in circulation. My children would never consider going to the library or buying a newspaper to find out what is going on. They simply consume online... and on their mobile devices.

I remember in 1996 I would get about 1 email a week - I wondered why I'd bothered setting up an account. In 2000 I thought I was too old to understand the internet and would leave it to the young marketers. Lucky I stuck with these mod cons.

The lesson that I've learned is simply to explore - twitter, facebook, flickr might not me here in 5 years time - but they will definately play a role in getting us to the next thing. So hang on for the ride - it is a journey... to be enjoyed where ever it takes us.

 


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Why is Business Growth such an addiction

By naomisimson | Published: September 17, 2009

We managed to achieve a pretty good growth number in the past 12 months. We are proud not just of the revenue and EBIT growth - but more importantly the sheer number of people who receive RedBalloon gifts grows exponentially. But why do we want to continue to grow, why do we have such an 'addiction' to growth.

We are impatient! There is so much we want to achieve and we are clamoring to do so. We want millions of people to have amazing experiences with their friends and family and through that we will have changed the way people gift forever. However, we've grown extremely quickly in the past eight years and we've learned some important lessons about how to grow. It's all about growing with strength and continuing to grow our intellectual capabilities. It's not just about achieving our BHAG (Big Hairy Audacious Goal) it's about creating new opportunities, career development for the team and having fun. (You cannot change the world without the means..)

Simply we must keep attracting new customers, new partners, suppliers - and to support all this we continue to upgrade and innovate our technology.

We need a vision to be able to grow rapidly.

I often say to my General Manager, who's now been on this journey with me for six years. “If only we knew back then what we knew now”, or “if only we had not implemented it that way, we wouldn't be having to do it again now!” but to be honest, we grew fast, we did what we thought we needed to do, made decisions on the fly and I wouldn't change a thing. We've always stayed true to our vision and values and that's what counts.

We need great people to be able to grow.

The economic recovery poses challenges and opportunities. People will become more scarce – we have been able to recruit amazingly talented people at RedBalloon. But amazing talent will become increasingly hard to find. Again we may have to begin to source skilled professionals from anywhere on the planet.
 
We need great customers who want to share the story to continue to grow.

Our number one referral of new customers is word of mouth, it has been that way for eight years now and has now gone into overdrive, particularly in the social media arena. Our key strategy is obviously to continue to perpetuate our story via word of mouth, so we have to “give them something worth saying”, about  the experience of dealing with us and their feelings after participating in an experience.

We need amazing suppliers to be able to continue our growth game.

The most satisfying aspect of running RedBalloon is watching the passion for the brand become catchy, I genuinely believe in the power that experiences have in connecting people and creating stories that people will tell and continue to tell. People join RedBalloon because they believe it, customers buy from us because they believe it and we support an amazing community of experience suppliers (small, medium and large businesses) who get to deliver what they love doing to more people because of us. Each of those businesses in turn grow as we grow.

Kind of nice really an Australian business supporting Australian businesses.

Growth is catchy.. and good for the whole country.

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What RedBalloon did in the ‘downturn’

By naomisimson | Published: September 15, 2009

BRW is going to publish its Fast List soon... and we've just found out that RedBalloon has made the list for the sixth time. The team is pretty chuffed. Not a bad effort given that it is all organic growth. (ie we have not made any acquisitions). The bigger you get the harder it is to keep growing quickly. Together with the 'down turn' I had no idea how we would fair this year. I'm over the moon that we have made the list and the team have been acknowledged again. (We won't know where we are on the list until the list is published.)

As part of the process we were asked to consider some 'why us' questions. I thought I would share our answers.

    Has the economic downturn offered opportunities for your business?

    Yes - there is no doubt that there are more opportunities...

    What were the opportunities and what have been the outcomes so far?
     
    We haven't viewed the economic downturn as a reason to put the brakes on our growth strategies, we believe that now is the time we should be investing in order to reap the rewards in the upturn. We can negotiate better deals now, to take products to market quickly and more cost effectively than we would have been able to at a market peak.

    Two opportunities we have invested in are: 

    • Retail – we have been looking to enter the retail marketplace for a number of years now and the conditions have never been right. We made the decision to launch into retail just before the downturn took hold and all we have done since is increase the scope of our retail strategy, such is the level of engagement with our brand.
    • Our Corporate Services – in a downturn as budgets and headcount get cut, businesses can also find themselves facing morale and engagement issues as valued colleagues disappear and many corporate benefits are put on hold.  We have been investing in strengthening our corporate services messaging, in a down turn it's more important than ever to continue to invest your people, so that they stay with you on the journey. Our reward and recognition conversations remain buoyant and incentives enquiries are up.
    What steps have you taken to mitigate the effects of the economic downturn on your business?

    It's funny, after the initial media doom and gloom stories, we were actively sought out by journalists looking for a positive counter balance.  Yes, we may be technically in a downturn but we have a compelling vision and absolute alignment across the business to take us there. We are not downgrading our plans for investment in growth, we are just working smarter and more efficiently. With full transparency on our financials, we engage our people to ensure we stay on track. We've made the decision to invest heavily in our IT resourcing and infrastructure, doubling the team in the last 3 months and yes it does come with some compromises. This is not the year for extravagance, we can't justify another company ski trip! But no-one expects it. Our people expect us to be responsible and frugal in a downturn as long as we don't strip out all sense of fun and culture. So it's Wii sports resort this year and we'll see what happens!

    What are the most important trends emerging in business this year?
     
     We are definitely seeing a trend towards customers wanting more transparency across the board, more clarity on what fees cover, even more information on experiences than we currently have room to publish, more reviews and more ways to look into who we are as individuals and what we stand for. People want to see our personalities and know that what we present is really authentic. We are who we say we are and yes we really do have this much fun.
     
    People want to engage with us as a collection of individuals, that stand for something, we are seeing it and hearing it from our fans on www.facebook.com/redballoon, our reviews, customers who call us and we need to cater for the multiple ways people want to engage with us.

    What will be the barriers to growth?
      
    We are finding in a downturn the decision making process really seems to slow down when looking for new opportunities and dealing in the corporate space.  Sign off has to go higher than it used to and generally speaking people will avoid anything with a level of risk attached. Rebuilding confidence in taking risks and being decisive is the biggest barrier to overcome.

    What challenges does an economic recovery pose?
      
    We have not altered our course in the downturn, we have continued to invest and deliver on the strategy. If anything we have an even greater sense of urgency. We have to do more with less, we must continue to innovate - it is the successful execution of great ideas that sees us stay competitive and fast growing.

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Looking for Gold… or even a Pony

By naomisimson | Published: September 14, 2009

Some one I had not seen for a while heard me present at a large business meeting recently. After the event he said 'You are still so passionate about your business…'  And it's true I am. But it came across very cynically.

RedBalloon  has just had a fantastic fathers day – 1000s of Dads got to have a good time, we have launched in Sydney and Melbourne city stores with Myer and our corporate business is winning major contracts almost weekly. Everything is looking pretty rosy from where I am. So of course I am positive.

But even when things are not going quite so well, I'm still pretty 'chippe'r. I was born positive, but more importantly I have a clear sense of purpose. I often jest 'I'm so positive, that if the world were to come to an end I'd say – “Fantastic let's invent a new one.”'

I was reminded of the story of 'looking for the Pony' which is all about the power of choosing how to respond to the world no matter what you are dealt with.

    A father's two sons were very different. One was pessimist. Everything was terrible. Nothing was good enough. The other was an optimist. Everything was great.

    The father wanted to put the two boys to a test… to see if it was a matter of circumstance or a choice.

    He took the pessimistic boy and put him in a room filled with all the toys a child could dream of just to show him that life was pretty good.

    He put the optimistic kid in a room full of horse manure, just to show him that life is not so perfect.

    He left them alone for an hour or so.

    The pessimist son was sitting in the room crying: "Too many toys. I can't decide with which one to play with. I am so miserable. Life is terrible."

    The optimist son was whistling and singing, and shoveling horse manure around. When the father asked him why he was so happy, he replied, "With so much horse s-t there must be a pony here some where."

Life deals us all sorts of things… it is up to us to look for the gold in what confronts us. Even if some times if is very confronting.

 

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Defining the terms of engagement-

By naomisimson | Published: September 7, 2009

I'm sometimes invited to sit with organisations to support them designing their 'engagement' programs. It's interesting that each organisation seems to speak in a different language.

For instance, I was talking to a client last week who was saying 'incentives' but what they really meant was 'at risk compensation'. There are many mechanisms we use to deliver engagement (and that could be customer engagement or employee engagement).

Now I'm not saying that my definitions are right… but it will help if we are all singing from the one song sheet… Here's a few definitions.

Compensation: This is the financial and benefits package received by employees for showing up.

At Risk Compensation: There is a plethora of these, sales commissions, and bonuses, sometimes called incentives. Incentives (the payments used to incite action or  stimulate greater productivity). These are financial payments to employees for achieving a specific set of criteria.

Long Term Incentive Schemes: These often relate to phantom options or share options schemes, there is usually a qualifying period and obviously any financial gain is based on business performance.

RedBalloon's corporate team does not work in any of the above areas – there are compensation specialists who construct such packages… but let's keep going with the definitions and cover the ones we definitely do support.

Recognition: This may or may not have a gift associated with it. A formal recognition program is about noticing peoples contribution and thanking them for it authentically. One of the best examples of a recognition program is the Qantas eXcel program.

Awards: This is a mark of recognition given to honour an achievement. It could be unexpected, and is never guaranteed. It is used mostly for thanking people in a more public forum.

Rewards: Is an item given in recognition of service, effort or achievement – here we are talking about the tangible benefit received… eg an experience voucher

Incentives: can be grouped under the definition of the thing that motivates one to take action. There is a clear objective set, the carrot is named and people are able to 'earn' gifts or prizes based on the achievement of those objectives – See the APHS and Tesltra case studies
Loyalty: This is the hardest one to determine and often miss used. By definition it means that a program that makes people more attached to the brand or oganisation. The reality is that there are very few true loyalty programs. We run many Length of Service programs – but really these are recognition programs, people are unlikely to stay longer with an organisation because of these programs.

Improving employee engagement does not come from the successful implementation of just one of these mechanisms – it is a mixing pot of what will drive the best results.

I've blogged many times why people's salary and employment package is not enough alone to motivate people. (“If you don't capture their hearts and minds no amount of money will keep them long term”) Incentivising people and clients as frequently as possible is important. And yes, incentivise isn't a real word! I'll leave that definition to you.

In fact Dan Pink recently outlined that there was new research to show the financial incentives can often reduce productivity, because people are so focused on the dollars that they are no longer prepared to take risks or be creative.

Here's his presentation from the TED conference in July 2009.

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Out of the mouths of babes?

By naomisimson | Published: July 29, 2009

3767870626_274b1b3219_mWe have intern's work with us on a regular basis at RedBalloon. Justin, from Boston University was with us for 8 weeks. It was interesting to read his report at the completion of his time with us. There is no doubt that RedBalloon is a 'modern' business – built on values and a fundamental respect for each employee. I was surprised at this young (19 years) interns view on the world given his youth.

RedBalloon has been formally recognised at number nine in the BRW Best places to Work list a few months ago. I wonder if Justin's report would be different if he had worked for a company with a different ethos about its people. I wondered if he is comparing Australia to the US or really companies committed to its people versus those who are not… you be the judge:

    Justin writes “… In contrast, Australia's corporate organizational structures are more horizontally organized in regards to the relationships that exist between the management level and the rest of the company. … Upper levels of a company are not placed on a pedestal above the rest. At RedBalloon the organizational structure is very horizontal in nature. The CEO sits on the ground floor, rather than the second, with the rest of the employees, as do the team managers with their respective teams. Perhaps it is worth noting that RedBalloon in particular, emphasizes a genial relationship between its employees, including the executives, while at the same time maintaining professional conduct in the office. I noticed that the CEO is approachable and works with the rest of the company in the same room with no divisions in between. It is difficult to spot those employees are in management position.

    Perhaps these differences in work culture can be traced back to the founding of these countries. Since Australia was founded as a colony primarily to house criminals and social rejects, the disregard for authority, at least in comparison to the US, may be rooted in the initial cultural dynamics of the country. It is not that Australians do not acknowledge the status of their superiors in the wok place, but rather, they do not accept or approve of distinctions being made between executive and employee.

    I have noticed that there is no pressure to prove one's commitment to the company by staying longer in the office or taking shorter lunch breaks. The mix of work and play cannot be misinterpreted to signify that Australians disregard their careers, they have merely created a work culture that does not overly obsess over working, but rather values a productive interaction between work and enjoyment in the work place.

    I found that even though Australians may not work 15-hour days, still manage to accomplish their work while at the same time finding time to have fun with their colleagues, family and friends. This combination, I feel is something that the Unites States could find beneficial not only in the work environment, but also for society.”

I never considered the origins of Australia when we established our vision and values. It is far simpler than that; we are all people, with similar aspirations, each contributing to fulfill on our purpose – there is not one person in this organization who is 'better' than another. Each person adds their skills, talents and enthusiasm for the good of the group. Company is singular – not plural. We are one.  I never ever thought that where you sit would determine your seniority or position. Leadership comes from who you are not the role that you have been given.

Thanks Justin for your time with RedBalloon – you were a delight to work with – and we learned much from you too.

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Neither cost cutting nor stinginess are strategies for growth

By naomisimson | Published: July 9, 2009

The downturn is affecting our behavior. Businesses and people are becoming more frugal, but when does frugal turn in to down right stingy and what does it cost?

Our second value at RedBalloon is generosity, and that means being generous with our time by listening and providing information, not just with customers and suppliers but also with each other.

During my corporate life, I remember asking many bosses to support me or assist with a particular project, only to find myself in a waiting game, wondering if and when they were going to do what they had promised. I thought about the level of trust I could create as a leader if everyone knew that if they made a request of me, they could count on me to deliver (or at least keep them informed if things don't go according to plan). What level of trust would there be in an organisation where you know that you could count on?

You can never take values for granted, I thought it would be difficult for me to write about stinginess until I opened my eyes and ears and absorbed a few instances around me and the damage that it's doing.

Monday morning, ordering my smoothie from the café across the road and two people were catching up on the weekend. One was complaining to the other about a friend that had turned up empty handed to a dinner party on the Saturday night. “I know she's not working at the moment, but she could have brought something or at least helped to clear up,” said the first girl. “No way, it's not that hard you don't have to spend a lot,” said the other. My guess is that the dinner guest will have done herself out of an invitation in the future from at least one person.

At dinner last night I listened to my fellow guests talk about their businesses, two big banks, an airline and a consultancy, about how appalling they are at acknowledging each other, helping each other out and generally just giving a little. Our party had been talking about how tough corporate life is at the moment. There was a general consensus that the downturn had produced a head down mentally with people being increasingly unwilling to help each other out, simply and looking after themselves. I guess it comes from some fallacy that just focusing on yourself will see you through, coupled to the fear of redundancy. Theirs sounded like awful places to work, and I realised how lucky I am to work in an environment where giving is part of what we do, everyday and the part of the reason for our on-going success. On my way home I made a point of texting my host a special thank you for their efforts.

Being stingy is being mean or miserly. There is no excuse for it and as we know it certainly does not pay as a strategy long term. Stingy people, and organisations don't say thanks, they are pretty self-centred and incredibly tight-fisted. Stinginess is not a success strategy.

Being stingy is not always the plan, we are all so focused on our own roles and KPIs, on our own lives, that it's easy to forget that we prosper more when we include and involve others, when we thank them for their input and share in each other's success.

A simple thank you goes along way to foster respect and discretionary effort being applied in the future. A simple thank you with friends and loved ones reminds them they are appreciated. When was the last time that you said thanks to the boyfriend for do the washing or bought your wife some flowers for cooking dinner?

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