Category Archives: Reward & Recognition

Teaching an Old Dog new tricks.

This week I was presenting at the Marcus Evans HR Summit on the Gold Coast – and I shared some of what I believe has created an engaged team at RedBalloon. I was very quick to let the audience know that I am not an HR professional, but a marketer passionate about a brand… who knows that people and relationships make a brand. So engagement is an obvious priority for me.

I also said that ‘we tried a lot of stuff at RedBalloon, we got lot’s wrong, but other things worked’ so really what I was sharing was the theory of what we did, after we did it. We did not start with a white board and design and engagement program, it just evolved over time, knowing that if we always think of employees as customers something will happen.

I got a great question after my presentation.. ‘well that is alright for you – with your 50+ employees but what about massive organizations?’ Of course I mentioned the Zappo’s, Apple and Google examples of strong vision and leadership. The question remains where are the case in an Australian large businesses? (Dimension Data & Express Data were fellow Hewitt Best Employers for 2009.)

The other observation is that we built RedBalloon from the ground up always believing in our people – so it is just 'the way we do things around here', we didn’t try to change. We are also a professional, mostly young, un-unionised workforce.

Dexter 'old dog' on duty at RedBalloon - Mic's mate

Dexter 'old dog' on duty at RedBalloon - Mic's mate

So let me digress for a moment. At Redballoon we have used TNT as our courier company for many years, every day at the same time, the same courier Mic, cheerfully arrives at our office and picks up the parcels, having a little hello to everyone, patting Dexter the dog. And off he goes with a skip in his step. Quite the jolly fellow. I have never really thought about this, but he represents TNT so well. I just thought we had a ‘good one.’ And he has been with us for years.

So back to the Marcus Evans event. The speaker after me was Susan Davies, Director – HR, Administration & Customer Service, TNT Express. Unlike all the other presentation’s, which are full of power point and lots of theory, Susan let her people tell the story of engagement. She had taken video of people out in the field, in the depots, and asked them about what engagement meant to them.

This is a very impressive story, because when she arrived to the role, the company had just announced a loss of $79million. She (and the other leaders) believed that only through employees could they turn this number around. She said 'we simply got out of our offices, went to the depots around the country and got to know our people. We listened to what was important to them… we learned that instead of providing them with fruit boxes as part of a well being program, what they really wanted was pies and coke. It was all about being in their world.'

TNT employs 1000s of people in Australia and has a 87% employee engagement score. Not only that, in just one year they turned the business around to a $10million profit. She said ‘We are all in this together.’  Proving that employee engagement is a profitable pursuit.

The TNT story is not an internet start up on a crusade or an IT business, it is an old established business, with a ‘blue collar’ unionised workforce, which reinforces the idea that ‘as the leadership team goes – so goes the rest of the organization.’

Congratulations to Susan and her team… it was refreshing and a delight to hear the story. And I know from first hand experience – knowing Mic – that it was absolutely authentic.

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Recognition Every Day… (RED)

At RedBalloon we talk about recognition all the time, not only what we do at work, but what we are learning from our clients. Matt the RedBalloon head of corporate has put 52 recognition ideas into a handy little business card size piece. It is really quite fun – filled with great suggestions of how easy it is to make people feel great at work. Picture 6

I’m in Auckland visiting clients today with our Kiwi Manager, Laurel, and I met one of the finalists in the Unlimited / JRA Best places to work awards for 2009, Kerry from PAKnSAVE Henderson. (PAKnSAVE is a discount supermarket franchise group – Henderson is the suburb) – with more than 150 staff he was pretty pleased to be named as a finalist; up there with the big global brands, that you’d expect to see at these awards.

We asked him what’s the key… he outlined that he was making a considerable investment in training, that people liked to hang out together, and they had done a fair bit of work on their ‘values’, that is, what they stand for as a business in the community. He also talked about what he does to recognize exemplary contribution from his team.

Laurel spoke of some of the fun things that Matt had put in the 52 ideas piece - #3 'have the boss give up his car space'. Kerry chuckled and said one of his fellow managers had done that and even extended to recognition to include not just the car space for the week, but the bosses BMW 740 to go with it.

The winner was a storeman, who starts work every morning at 4.am…. So as the storeman was proudly driving to work one day in the BMW (dressed in his work attire of stubbies and singlet, ‘looking pretty rough’) the police pulled him over asking to explain who owned the car. The storeman announced it was his bosses and he had been given the use of it for a week because he was the employee of the month… the Police didn’t believe him. So the police made the appropriate calls (getting the boss out of bed) to verify that he was actually telling the truth and the car was not stolen…

I don’t know what the storeman thought of being pulled over, but he sure has told everyone about it… the experience and the story created, means this story has become part of the ‘folk law’ in that business. And that business is now ‘known’ as one that recognizes it’s people.

BMW740

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What does disengagement look like

Thank you to Bruce Morton of Talent2 for this very illustrative image of disengagement. Loved it. Gallup tells us that it takes six engaged employees to fix up the mess made by disengaged staff.  In some instances it is clearly more.

Disengagement

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Better out than in.

I was chatting with a friend this morning who said that he had three of his team resign in the last week. He asked ‘That’s not good is it?’

On the surface we look at the cost of replacing them and all the history and experience that they depart with, and of course we say - ‘you’re right, this is not good’.

The first question I asked was ‘are they avoidable or unavoidable leavers?’ ‘What do you mean by that?’ he queried. This might be common terminology for HR professional - but most business owners (including myself until I was enlightened by the RedBalloon employee experience manager about a year ago) will be unfamiliar with the concept.

Unavoidable Leavers: are those who are leaving because the circumstances of their departure are determined for reasons external to the organization. For example we had a designer who wanted to go to South America and build an orphanage and travel the world. There is nothing the business could do to support him in following his passion. He was a great contributor, highly engaged, produced great work.... but RedBalloon was not where his next life experience was going to come from.

Avoidable Leavers: are primarily when the organization has let that person down, either recruiting the wrong person for the role, or not having the next career step for them. They might be engaged whilst employed, they may not. If they are not engaged, then the organization has let them down in some way. Right person, right role, right values and management.

I questioned my friend further about why he had three employee leaving at once. I asked him to describe the circumstances of their resignation. Numbers can be deceptive without understanding.

I hear people talk about ‘churn’ rates, or retention rates - judging the effectiveness of a management team based on this. As far as I’m concerned the much more interesting conversation is about engagement. Did they play full out while they were employed.

Resignations provide an opportunity to review roles, adjust them, recruit new people with fresh enthusiasm and other life experiences into the organization.

I’m very clear that as an employer RedBalloon is part of our peoples journey, it is not the destination. There are a lot of things that people want to do in life, our challenge is to make sure that they love what they do while they’re with us, and that when they do leave, they go with great stories to share about this chapter of their story.

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Defining Employee Engagement

image0011

It all depends on how you view the world... at least we know where getting somewhere when the conversation becomes mainstream.

Love it.

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I’m accused of leading a ‘Namby-Pamby’ management revolution

I received the email below yesterday, just after RedBalloon for Corporate  hosted a Webinar on Employee Engagement for 250 people. I didn't receive the email until after the event. But I assume that this person was commenting on the session.

Alas the email was not signed and was sent from an unknown email... so I guess the best thing to do is to respond here.

Date: 10/27/09 15:50:00

“Naomi Simson, WAKE UP ! People go to work TO BE PAID, VERY few ( 'cept maybe some women) want ANY so called 'thanks' for doing what they are paid to do. OH! I forgot, we are now in the 21st (oops, the 'touchy-feely, namby-pamby') century. THIS attitude is one of the major problems in the world today. Management have THEIR job, also. That does NOT include holding the hands of people with self esteem problems. If the employee's WEREN'T doing a good job, they'd get fired! I suggest you find a job that has some meaning.”

Firstly thank-you to the author (and I will for the sake of writing refer to this person as a him given the reference to women) for letting me know your thoughts. Without taking the time to write, I would naively go along my merry way thinking that the whole planet is in harmony when it comes to managing and engaging people this century.

People go to work to be paid for performing certain tasks. This of course is the basis of western economies. A person has skills and time which they sell to an organization in return for a salary. People must be paid for what they do. It puts Wheeties on the table, keeps children in school shoes and all the essential things that we have because we work.

The thing is that those people selling their skills and time ie employees -  have a choice. In-fact they have many choices:

  •     Do I choose to work here - or work somewhere else for the same money (or in some cases less) because I feel better about myself and what I achieve at the place. Does my employer notice what I do?
  •     Do I work hard when I'm at work and use my initiative or do I do the bare minimum?
  •     Do I want to fit in and assist those around me - or make life hard for others?
  •     Do I tell people outside of the organization about what a good company I work for - or that I hate my boss?
  •     Do I recommend it as a great place to work - or am I asking my friends if its better at their work?
  •     Do I want to continue to learn, grow and develop so I can add more for my employer and in return myself or do I do the minimum I can get away with?

This is fundamentally the question of discretionary effort. An employee can either choose to participate fully or not. They can simply go to work - do what they are told and go home without thinking about it - or thinking they will be fired. Or they can use their 'discretionary' effort for the good of the whole business and ultimately its profitability.

A can assure you sir, that I am wide awake. I am listening, learning and alert, listening to business leaders and HR directors. All wanting and needing to do more with less. As Ann Sherry noted at the recent HR Leader awards - if you  mention the word 'productivity' then you are really talking about 'people' they are in fact one in the same thing - people doing things to improve, innovate, and grow a business.

This is simply a question of commercial return. I really like the people I work with; the RedBallooners, I am interested in what drives them, what they are passionate about, I love discovering what journey they are on and what is important to them. This cannot be faked. I like people.

The first step to being an effective manager is to like people.  And be truly interested in them. If you're a manager and don't like people, perhaps you're in the wrong job. Business is a people game.

Sir, thank you for your contribution, it is greatly appreciated. To see that there are people who are still well entrenched in the past. Your business may well thrive without the 'namby pamby touchy feely' acknowledgment of people. But I am not alone in seeing great commercial returns from listening to my team, and responding in the same way I do with customers. I leave you with some powerful statistics - let the numbers speak for themselves:

    Companies that raise employee satisfaction by 20% will increase financial performance by more than 42%.
    Global Study by David Maister, Practice What You Preach: What Managers Must Do to Create a High Achievement Culture (2001). Sourced from www.vault.com December 2008

    A detailed study of 40 global companies found that firms with the highest percentage of engaged employees collectively increased operating income 19% and earnings per share 28% year-to-year. Those companies with the lowest percentage of engaged employees showed year-to-year declines of 33% in operating income and 11% in earnings per share.
    Towers Perrin Global Workforce Study. Sourced from  www.humanresourcesmagazine.com.au December 2008

    “Companies that utilised an effective employee recognition program enjoyed a 109% three-year median return to shareholders vs. a 52% return for those companies that did not.”
    Watson Wyatt Study of 3 million employees, as quoted  in Forbes magazine (2004)

    Hays Group research shows that 70% of engagement is determined by the employee's direct manager.
    The Hays Group, www.hayscompanies.com (2008)

     

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The end is nigh? and other happy thoughts

I ponder how best to say 'thanks for playing' as the financial year draws to a close. Leadership teams are frantically putting the finishing touches on the strategic plan for the year to come, employees and managers are getting ready for performance reviews, the sales and marketing bods are giving one last big push to get sales in the door.

I've no doubt that come 1 July most of us will breathe a sigh of relief and return to work fresh for a new game -  I know I will.

It is so, so important to say 'thank-you' to those who are working hard despite the current state of the nation (though Australia is not in recession) - salary rises and bonus's are looking pretty scarce however more than ever we need people to 'give' their discretionary effort. So we too simply must 'give' acknowledgment.

I visited a client recently who said 'So glad to see you Naomi, I have an edict from our European head office - salary freezes and no bonuses, yet the team have never worked so hard. RedBalloon vouchers I can get away with, it's not expensive, yet at least they will know that we do appreciate their individual and team efforts.' Music to my ears of course.

Now we don't mind being the consolation prize - in fact we think it is a good idea, people are unlikely to talk about cash but they are far more likely to share the story of what they did when they went on their experience. At least this will support the employer brand.

The last thing any business needs during uncertain times is for the best people or customers to be looking elsewhere. Now is the time to focus them and keep them close to the business, and it doesn't have to cost a lot. Whether it is a week of free coffee or a personal thank you card from the CEO, it's important that some time and effort is taken.

At RedBalloon we will be having a full fun day – everyone horse riding, bush lunch, then abseiling and a very decadent experience to finish off. RedBallooners know that we are in this together – perhaps that is part of why they voted us in the top ten Best places to Work.

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A piece of string brings focus

I heard a great story this morning that really illustrates the importance of focus if you want to achieve an result.

Apparently in the 70s when Kerry Packer was going through his legal battles in London with world series cricket - he was clearly very focused on winning.

He asked an emanate British lawyer 'How many QCs (Queens Councils) do I need to win this thing?' The response was 'one maybe two'. Packer responded 'Engage the top six QCs in the country.' 'Why?' he said. 'Because there is a long way between one and seven on the list and all six against number seven....' Packer responded.

He brought all six of the best QCs together for a briefing and said 'You must clear your desks of everything else that you have on... this is the only thing that you have to work on now, it is all about focus.' It took many months to do this but finally the QCs, cleared their desks.

You can imagine that the QCs were the elite of British society, the cleverest, been to the best schools, absolutely British.

Packer brought them together every two weeks or so for a briefing to assess where they were up to with the case. In the first of these meetings he brought a map, two pins and a piece of string.

Packer hung the map on the wall and announced, as he put one pin in London, one in Sydney and joined the two with a piece of string, “this is where we currently are (London). I promise each of you and your families a one month no expense spared amazing holiday in Australia when we win.”

Each meeting he would put a small flag on the string as to where they were up to. If they had had a good few weeks they might be somewhere over Africa, a bad week and they were back in France. The map (scoreboard) became central to each of these briefing sessions. There was much anticipation about where the six QCs were upto.

Needless to say the rest is history. It doesn't matter who we are, we all love a game, to be focused on the prize, and a score card to keep us focused.

As the scientist said as he focused his magnifying glass on a piece of paper and smoke began to appear - “If you focus you can set the world on fire.”

Thanks to Dr Geoff Garrett - CSIRO for sharing the story. So very relevant.

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What do customers say about you?

Have you heard of the 'Gold Fish Principle'? It's not new but it is worth being reminded that many businesses treat customers as fish, that is as if customers had no territorial memory. The business focussed solely on current transactions and gives little thought to customer memory. With no memory of a customer's past and no regard for the future, and organisations decision are unbalanced.

The question therefore becomes “why does a customer choose you instead of one of your competitors?” Is it:

  •     Trust
  •     Confidence
  •     Strength of customer relationships

“A Customer creates the most value for you when you create the most value for him” according to Don Pepper

This requires an organisation to earn the trust of the customer. The components of trust include: credibility, reliability and intimacy ie competence.

“Treat the customer the way you would want to be treated if you were the customer.” Customer advocacy is the best indicator of whether companies are able to achieve cross-sell success to a customer base.

What does it mean to NOT be self oriented – it means you are customer oriented, that you take the customers point of view – the customer is not interested in your store or product. They are simply interested in having his needs met.. So speak the customers language.

So how to destroy trust through incompetence.

  • Make the customer tell you personal details and preferences over and over again. (Ugh I hate that)
  • Treat all customers exactly the same
  • When customer calls IVR ask for account number then when he speaks to a rep. ask for the account number again.
  • Offer to sell the customer a product he already bought from you
  • Encourage customers to use the web by hiding your phone number
  • Give customer contact people no authority to deviate from strict policies

Simply you can not automate great customer service!

“Through 2010, empowering employees will be the quickest rout to improving the customer experience.” Ed Thompson, Gartner

What customers say they want from companies:

  • 76% Improve the product
  • 71% Empower Employees
  • 41% Share customer data across departments
  • 35% Brand Strength
  • 34% 360 Customer data base
  • 32% Online self service
  • 11% Cross Selling
    (Richard Lee and David Mangen survey “Customers say what companies don't want to hear”)

Employees must be empowered to make decisions – to surprise and delight customers. That is people making non-routine decisions. Unanticipated situations, creative issues, matters requiring judgement or enthusiasm. How do you inspire employees to 'delight' customers? This all requires a high level of  employee engagement to achieve customer delight. For employees to use their judgement, creativity, empathy and intuition they must be empowered to act.

An employee must trust their employer – alarmingly 60% of American employees don't trust their bosses to communicate with them honestly and only 36% of employees believe their leaders 'act with honesty and integrity.' 76% o f employees have seen unethical or illegal conduct on the job in the last 12 months – according to Steven Covey in The Speed of Trust 

To earn your customers' trust, first you have to earn your employees' trust.

Hence corporate culture is more important than ever. A culture based on trust ensures that your people will create value with their decisions

All the Built to Last companies in Jim Collins book had a strong culture.

“Until I came to IBM, I probably would have told you that culture was just one among several important elements in any organization's makeup and success- along with vision, strategy, marketing, financials, and the like… I came to see, in my time at IBM that culture isn't just one aspect of the game it is the game.
Lou Gerstner IBM.

According to the Hays Group, there are four requirements for engagement:

  1. Confidence in the organizations leaders
  2. Collaboration and collegiality (positivity)
  3. Development opportunities
  4. Clear and promising sense of purpose

A productive culture requires a purpose. (Lifes purpose is not to breath just as a businesses purpose is not about increasing shareholder value – it is more about why you are in business – which is not about making money)

Does your job feel as if it has meaning. (If so you are in the minority.) 59% of UK employees see no meaningful purpose in their jobs, whilst 90% of employees want to leave their conventional jobs – Patrick Dixon 2006

If your brand mission is to earn and keep the trust of customers then trust is also more likely to characterize other relationships as well.
Employees trusting managers and each other, vendors, stakeholders, investors, clients.

The point is do you know what both your employees and your customers are saying about the brand? If not perhaps it is time to find out.

 

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You never know where the conversation ends up…

PartyI was delighted to receive this photo from a client...It is from one of their 28 launch events as they rolled out the RedBalloon Program at each of their branch locations. When I opened it...I wondered who the people were... where do they live? I wonder what they have always wanted to experience.

We never know where the conversation ends up and in what way people are talking about us - that they are is a privilege.

"Remarkable isn't up to you. Remarkable is in the eye of the customer. If your customer decides something you do is worth remarking on, then, by definition it's remarkable'
Seth Godden.

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