If you've met me in person you know that I have rather an extensive wardrobe of red outfits. I do love red (but believe it or not it is not my favorite colour). I am lucky that red is now in fashion. And especially in winter it really brightens things up.

Red is a power colour according to researchers (which one's I don't know) it is memorable and has cut through - that is why so many companies have a red logo. We all know that red cars go faster....apparently they get more speeding tickets too (I wonder if this is still the case now that camera's issue the speeding fines.)

I heard a brief article on the radio last night that said - that if you wear red - you are going to be more successful. More successful than what I thought and I also wondered where this 'research' was from?

It infact comes out of the fact that the Chinese think that the colour red is lucky and they are wearing red uniforms during the olympics (as they have always done).

The research was published in this months issue of Psychological Science. Researchers showed 42 taekwondo referees videos of blue and red clad competitors sparring.

Then they swapped their colours, but they were exactly the same moves.

Competitors wearing red got thirteen per cent more points and the points increased after the blue athlete was digitally transformed into a red athlete and decrease when the red competitor turned blue.

"Although there is a need for further research, including research on the effects of different colours, our results suggest a need to change the rules or support referees by providing electronic decision-making aids in those sports in which this colour bias may be a problem."

The full story...

I just wear red because I like it.

I think one of the reasons for our recent Hewitt employee engagement score of 97% is because we do things differently. We have an employee experience manager rather than a HR manager. One area that we have fantastic engagement is with the team that answers the phone every day…. Day in day out. This team is the personification of the brand.

The customer service team at RedBalloon is not the average call centre. This is our Pleasure Relations Team- simply because they are responsible for ensuring customers have a good time on their experiences purchased through RedBalloon.

We also mix up their week, finding out what they are interested in and how it can add to the business. Our Pleasure Relations consultants are assigned project time every week allowing them to add value in other ways and to take a break the high-pressure environment of answering calls 37.5 hours a week

Some of the team for example: Brendan and Cindy both take on organising events and team building days for RedBalloon clients. Mitch works in IT support team for a few hours each day. Ben is a father of a young child who works part time and  uses his expertise as a Dad to assist design gifts for men. Emma and Olivia work with the marketing team conducting competitor research whilst they complete their communications degrees at University.

As I like to say “Instead of saying people are our greatest asset”… “We like to say our people’s strengths are our greatest asset” I think the key to our current engagement level is employees using their strengths in the majority of the work they do. Also that they know the game they are playing every day.. and they go home feeling like winners.

Arielle, has been able to draw from her background in television and film production as well as staff training, to edit video RedBalloon website. Like her fellow colleagues Arielle is well aware of her strengths (communication, responsibility, woo, relator and activator) and the value she adds to the business.

“I look forward to project time because I then contribute to other parts of the business, I can nurture my strengths and creativity and get out of the office. Which means when I’m with the customer I am more generous with my time and have the energy to be as empathetic as I can.”

Many companies are investing time and money in to web interfaces, which attempt to answer all queries. Voice recognition systems are designed to appeal to consumers on their mobiles wanting to make a speedy transaction.

 “Sometimes the customer just wants reassurance, they want to hear our personalities. Especially if you’re an online brand, People aren’t particularly online savvy so we hold their hands through the purchase. Often they need to feel a level of trust,” says Arielle.

Call centre agents are at the forefront of the action, they need to be personable, empathic and most of all resilient. They are the bridge between image and reality of your brand and pivotal in establishing your brand equity. It pays to take them out of the high-pressured environment, giving them the chance to add value to the business in other ways.

 “As they say variety is the spice of life. To be interested in other people all day everyday you need to stay interesting. It’s really important to do other things” says Brendan Pleasure Relations Manager.

I challenge you to think about what you could do differently. Also have a look at what it is like inside RedBalloon

Efficient businesses continually look at ways to reduce overheads and increasing productivity, however there are many unseen costs in cutting costs. ‘Don’t cut off your nose to spite your face’?

I was at a speaking engagement – on employee engagement – talking about what we do at RedBalloon and for our clients. As per my previous blogs on ‘Employees are the new customers’, I talk all about the power of what employees say about their employers with some vivid examples and powerful statistics.

After the session one of the guests came up and said ‘I know exactly what you are talking about. I have worked for my company for 9 years – and for our 10th year of service we are flown to Tokyo for a trip to head office and to be honoured for our service. In the passed we have had about 3% staff turn over a year. We got a new boss last year and one of the first things he did to cut costs was to take away this perk. I was so close to getting my trip you cannot believe how mad I am. Not only that since he changed the rule our staff turn over has escalated to 18%...and the boss wonders why.’ He continued ‘You are quite right Naomi – I tell anyone and everyone who will listen about how stingy my employer has got and that I missed out, just one year before I was due.’

Another person joined the conversation sharing that ‘At our office we still have a them and us attitude – the executives get chocolate biscuits – we get family assorted, they get a tea lady – we get make your own tea. ’I didn’t think this sort of thing still went on in Australian businesses – effectively the old executive wash room mentatlity.

What you think you are saving in non chocolate biscuits – costs you a fortune in disengaged employees who love telling anyone who will listen how archaic the company they work for is.

At RedBalloon no one is ever ‘too important’ to do the basics – our CFO the wonderful Pete is the one heading up the road to buy the loo paper. He always is the number one dishwasher after a company BBQ or lunch. You might think but should such an ‘expensive’ resource be doing such things. (We are only 43 people) but as I’ve said before – ‘As the leadership team goes – so goes the rest of the organisation’.

There is cutting costs – but at what cost. Get your people involved with a program  which gets them to think of the best place to find efficiencies and cost savings are.. They know, and if they’re part of the process then they will be very happy to support the initiative.

If you are cost cutting watch our for the hidden costs.

It might sound basic but one of the key questions I get asked is how do we get people to have fun and be extremely productive at work. What keeps the workplace interesting, people motivated and most importantly make it a fun place to be? Sometimes it is the simplest things that make the difference. As the leadership team goes so goes the rest of the team…. Are they having fun together? Are they authentic and real in their communications?

Years ago I was given a book from a university friend ‘All I Really Need to Know I Learnt in Kindergarten’ by Robert Fulghum  This applies at work too; share everything, play, be aware of wonder, hold hands and stick together, my bet is that we’d all manage to stay much more motivated at work and therefore intent on staying.

Whilst what you are about to read might sound like common sense, it doesn’t hurt to reflect on the simple things in life that made our younger years so memorable.

Share everything: When I was in corporate life I regularly heard ‘We need to improve our communication’. Imagine knowing where and when you are in communication with whom. We have a clearly defined, daily huddle schedule, weekly team meetings, one on ones, monthly company meetings and planning sessions– the agenda has three items, what is working, not working and where are you stopped. A problem shared is a problem halved and in most cases solved. This way the exercise creates stability, cohesion and transparency.

Play:  However silly it might sound, games are really useful tools to keep people focused. We are all children at heart and appealing to this is an easy way to keep staff engaged. RedBallooners are rewarded with RedBalloon points for the following: A Simmering Sales Suggestion (new lead), Rocket Launcher (We are a growing business and we need to keep asking what we should stop doing, what we should start doing and what should we continue doing) and the Firecracker Award (for continually demonstrating RedBalloon values).

We have noticed a real melding between what was the work week and the weekend; the distinction is becoming more blurred. It is a challenge for employers to make the work -week as interesting as the weekend. Last year we entered a RedBalloon team into the Bridge to Beach swimming race, and this year we are about to enter a new team into the Blackmores marathon, everyone will be sure to get involved in our training activities.

Be aware of wonder:  Look and listen to colleagues and when something amazing happens, celebrate it. We all achieve great things in our roles everyday, yet most employers fail to acknowledge when we do go above and beyond the call of duty. It’s very easy to forget, especially in the current employment market that most people have a choice about where they decide to spend thirty plus hours a week.

Recognising people is actually very straightforward and goes a long way to keep us motivated. Whether you opt for peer-to-peer recognition, customer feedback or more traditional management discretion, making sure that you have ample opportunity for formal and reward backed ‘thank you’ and ‘good effort’ celebrations is key to keeping people engaged and happy.

Hold hands and stick together: I always remember the times that I was the newbie – quite often a very nerve wracking time. The sooner someone feels part of something, connected to their colleagues, the vision of what we are up to, the sooner that attachment is possible. Wouldn’t the world be a better place if at three o’clock every afternoon we all sat down to milk and cookies? Whether it is a regular team lunch, beers after work or something more unusual like a group circus lesson, cooking class or hypnosis show, doing something as a group that is totally unrelated to what we do at work allows us to reconnect as human beings. The levelling effects of watching the top sales person get nervous at the trapeze or highly skilled programmer fail to toss a pancake is great for team morale.

So what I learned in kindergarten applies just as much now as it did then...

“Share everything. Play fair. Don't hit people. Put things back where you found them. Clean up your own mess. Don't take things that aren't yours. Say you're sorry when you hurt somebody. Wash your hands before you eat. Flush. Warm cookies and cold milk are good for you. Live a balanced life - learn some and think some and draw and paint and sing and dance and play and work every day some. Take a nap every afternoon. When you go out into the world, watch out for traffic, hold hands, and stick together.”

From a business perspective- we cannot afford to rely on large salary packages and bonuses to persuade people to come on board with the company. Clever companies, small and big alike are realising that you have to capture the hearts and minds of employees no amount of money will keep them long term.

It’s okay to have fun in business.

I was asked to speak recently to an audience of women executives on the difference between leadership and management. If you read my blog regularly you will know that I have some very clear ideas about this.

For me, leadership is about bringing every one together with what they have in common – shared vision and values. Management is about nurturing people’s uniqueness as individuals, so that they are doing what they a good at most – contributing their strengths to the greater effort.

I enjoyed listening to Maree Morizzi Head of Consumer Car Loans - Auto Finance Division  ESANDA at this same event on her views on leadership and what it takes. It was interesting that both of us speak of authenticity and being true to yourself. Here are Maree’s thoughts:

“Authentic Leadership - 4 Key Elements - Maree Morizzi

Congruence

• Congruence is being consistent by 'walking the talk' and leading by example  
• Being who you are, in every moment and every interaction
• Doing what you say you are going to do and delivering on promises
• Standing up for what you believe in

Courage

• Not being afraid to do away with the sacred cows
• Being open-minded 
• Testing new ideas
• Sailing unchartered waters
• Being upfront when things don't work

Candor

• Open, honest, frank communication.  
• Being straight-up in delivering messages - not sugar coating
• Calling behaviours that are inconsistent with the values of your business
• Being completely transparent about what you're doing and why you're doing it
• Communication that is meaningful and relevant to people

Positive emotion

• Positive emotion is important in setting tone as the leader - show your passion for what you do
• Adapting and shifting tone and emotion is important - emotion needs to be relevant to the situation and context
• Positive emotion enables you to get into the hearts and minds of people”

This is a far more eloquent way of saying “you can’t fake it until you make it”. You have to believe in what you do….and play full out to get it. My mantra as you know is “if it was meant to be it is up to me.” Like wise I cannot do it on my own - and authentic leadership is the way to make it happen.

I read recently that 15% of people are called something they don't like at work - and this (needless to say upsets them.). Okay so you think that I'm stating the obvious.... but knowing people, starts at the very basics. And if employees are the new customers - and we spend a fortune on CRM systems - what do we do about managing our employee relationships - do we have ERM systems?

For each of us we cannot help it - but our name has a sweet sound to it. We like it.

Years ago at Ansett one task I was to arrange a staff gift. I presented a baggage tag - it was beautiful, aluminum with a little leather strap. On one side it was screen printed - "You can't have the greatest airline in the world without the greatest people," on the other their name was engraved. At the time there was not HR department, it was called Personnel, but I thought I would go to payroll to get the names of the people that worked at the airline - they gave me a list, I had the tags engraved, and out they went.

Then they started coming back....People sent back notes with them - 'You still can't spell my name correctly - you never have', 'she hasn't worked here for years', or even 'that is my first name I always use my second name', 'Only my mother calls me that when I am in trouble'.

I was really clear - how could you say that your people are your greatest asset (You can't have the greatest airline in the world wihtout the greatest people.) when you don't even know who works there, nor how to spell their name.

It might sound basic - but getting the name right is a start.

(PS - there is no 'p' in Simson)

Marcus Buckingham author “Now discover your strengths” came to town this week.. and it was great to hear from the source. If you are a regular reader you will know that we use strengths tool at RedBalloon.

Here is some of what I got from the session:

“All cultures are local – no matter how large or small the organization in how many locations, this is because culture is a result of individual management styles.”

“People quit bosses.”

“Being a manager is all these things (in no particular order): wisdom, vision, honesty, challenging, caring, trusting, creative, a barometer, motivating, encouraging, determined, inspirational, loyal, belief, values driven, proud, accountable, reliable, ROI focussed, experienced, enthusiastic, and truthful. So it is pretty hard to be a perfect manager – yet there are great managers who are only some of these things… and people resign their bosses.” It is nearly impossible to be all things all the time. There is one question above all else that drives engagement and culture.

“At work do you have the opportunity to do what you do best everyday?”
Then the next most important questions are:
“Do I know what is expected of me at work?”
“Do the people at work have shared values?”

So what percentage of the day do you spend using your strengths (doing what you are good at).

Hence rather than “People are our greatest asset”… “Our people’s strengths are our greatest asset.” After all people can be actively disengaged with their organization which means they are deliberately working against what their colleagues achieve.

Here’s the kick, apparently only 8% of Australians spend the majority (75%) of the day playing to their strengths. No wonder we are the second least engaged workforce on the planet (after the French).

At the end of the event I called on my strengths, woo, input, positivity, connection and self assurance to meet Marcus. I introduced him to our recently appointment Employee Experience manager. I understand he will be back in Australia, and given that 'employees are the new customers' it is well worth seeing him in person.

I have been a fan of Don Peppers and Martha Rogers for many years. They wrote the book ‘The one to one future’ about the power of customised and personalise communication in direct marketing, ten years ago which was the early days of digital print. But time has passed since then, and I get to meet and hear Don Peppers in person that the New York Brand Engagement event and it was enlightening to hear how his message has evolved.

Interesting that his message is consistent with that of a decade ago – yet the focus has progressed from customers to employees. Peppers says that the success of marketing, in fact is limited by how engaged employees are to whether your brand will be successful. This is a big shift. This led me to further consider.

Are Employees the new Customer?

He posed these questions to identify if employees love the brand?

1. Do employees enjoy telling friends and relatives what company they work for?
2. Doe they go out of their way to defend your brand from criticism or attack?
3. Do they enjoy their careers with you?
4. Would they buy your brandfor their own personal use, even at its full retail price?

Every company has a culture whether they manage it or not – it is just ‘how things are done around here’. 'What your people do when no one is looking, might give you an insight into your culture' he said.

“No factor is more vital to a brands long-term success than its culture” said Peppers.

A successful brand requires a culture of engaged employees. And what this means is that business must now compete in a different dimension. Of course the basic premise being to create the most possible value from the customers and prospects available to you.

Customers create value in three ways:

1. They generate current sales and associated costs
2. They change their intent to buy or their likelihood of creating future value
3. They tell other people creating potential future value.

Of course what we cannot see is if customers have a bad experience the value of the business is reduced. (The future value of the business is destroyed with a bad experience).

The customer experience is a balance between the short term and long term. Attempts to increase current income can effect the lifetime value of the customer.

Marketing, promoting or discounting too aggressively can damage the lifetime value, while improving service ie the customer experience boosts the lifetime value but current costs go up.

Unlike products – customers have memories. For example how you treat car parts in a factory today will have no effect on what they cost you tomorrow… but how you treat customers today has everything to do with their real value tomorrow.

This email came to me yesterday which really demonstrates Peppers point vividly.

“Hi,
 
I'm just writing to let you know how much I appreciated Arielle's service and phone manner yesterday. She was so friendly and courteous and turned something that I thought was going to be a complete hassle into a quick and easy process. Not only that but she went out of her way to extend my voucher for me so that my boyfriend and I could do our tandem parasailing when the season starts up again.
 
It's so nice to know that there are still nice people out there, who treat customers kindly and even as friends. This is the kind of service that I look for in a company and I can assure you that because of my experience with Arielle I will definitely be coming back to RedBalloon  - she is an asset to your organisation! You are to be commended for encouraging this type of work ethic in your department because this is what keeps customers happy and willing to continue doing business with you.
 
Again, my thanks to Arielle and I will definitely recommend RedBalloon Days to others.
 
Best wishes,
Pam”

It is all about balance.

I have quoted the figure that a third of people will decide in their first month when they are going to leave an organization in this blog before.  Yet the numbers I got from the Human Capital Institute are even more alarming. It claims that 87% of new employees make up their minds in the first 6 months if they are going to stay.

Clearly the on boarding or welcoming process is critical. (I have blogged before about the importance of people being attached to an organization – before engagement could be possible.)

Welcoming people is not about completing forms or reading induction manuals, it is about creating relationships as soon as you can – from the moment they give a verbal yes… (they become a RedBallooner).

Whilst a formal process is very important – it is the authenticity of the program, the true welcome that makes the most difference. Newbies need to know that they are part of something, they have come to the right place – and they feel that they fit and can contribute and are listened to from day one.

“The results are clear: helping new workers integrate into an organization is the single most important factor linking an organization’s talent brand and talent retention”
Dr Ross Jones HCI.

Managing people’s professional (and personal) transitions can have the most impact on retention. Professional transitions such as on boarding, promotions, transfers, foreign assignments etc. are important or very important for 83% of respondents. These are stressful times for people, and the easier an organization makes it for the employee the greater the employee engagement. Just getting it right and treating people as people not a number makes a difference.

This is equally important for personal transitions such as maternity, illness, death of a loved one, family emergencies are very important to 82% of employees. The sincerity of supporting people in tough times can have a huge impact.

It reminds me of something my father used to say. ‘Do unto others as you would have them do to you’ … treat people as you would like to be treated yourself.

Have a process, but don’t let the checklist get in the way of creating a relationship with your newbie.

The Human Capital Institute was founded in 2004 in the US and has around 115,000 members in 60 countries – Allan Schweyer, the Executive Director shared some insights with the participants of the recent Brand Engagement conference in New York which I attended last week.

According to Schweyer there is an increasing importance placed on ‘intangible assets’ in the market valuations of corporations. Intangible assets are defined as goodwill, brand, intellect, knowledge, innovation, teamwork, ambition, courage and agility. In 1982, intangible assets comprised 38% of the average company’s market value – by 2002 this number had dramatically increased to 85%.

Whilst much of the data was US centric it is still interesting. 44% of US employers are struggling to fill positions and unemployment in January 2008 for college graduates was at only 2%.

I have often said that there is a finite number of people on the planet… but in an economy as large as the US you wonder how could the talent pool have become so small. The outlook is bleak – by 2014 there will be a 30% declined in young workers entering the work force, 50% growth in retirement of skilled knowledge workers – hence there will be a critical knowledge gap in organizations. This is despite the fact that in the past 20 years participation in tertiary education has gone from 40% to 60%.

This talent challenge is global. In fact the United Nations stated ‘one of the top three socio-economic issues facing the planet is the lack of talent despite population increases’.

In the US 50% of current employees are not completely satisfied with their jobs, an alarming 71% of employees are ‘poised’ for another opportunity if it comes along – while 56% of employees regularly look for new opportunities.  The numbers are not too dissimilar in Australia.

The research conducted by the Human Capital Institute found that the talent brand is important to the workers’ decisions to join or stay with an organization.

“The single most important finding of this research is that creating an organizational vision or designing formal talent management processes will not create a positive image or talent brand in the minds of workers. That will only be accomplished if the vision and formal processes are translated into actual results that lead to a better work environment” Dr. Ross Jones HCI

Actions speak louder than words… that is (as per last weeks blog) you might get the ‘why’ clear but without the ‘how’ and the ‘what’ it is not enough on its own to drive retention of the team.

The question of course is: Do you have a formal talent brand strategy? Is there an employee experience strategy?

According to the US Monster Intelligence Research 2007 in response to the question: Does your organization have a formal strategy to brand itself as a desirable employer – 57% said yes.

Brand engagement is both an attraction and a retention tool (which leads to employee engagement).

71% of respondents said that the image or brand of that organization was somewhat or very important in their decision to join that organization. Whilst 75% said it was somewhat or very important in their decision to stay with an organization.

Seven measures on employee engagement effectiveness:

1. Are current employees one of the best sources of finding new talent?
2. Are employees generally productive and engaged? Do they know what they are there to do in a day and do they achieve it?
3. Is talent retention better than industry average?
4. Does the organization provide better than average total compensation packages?
5. Are people regularly recognized for their contribution?
6. Does the organization provide excellent work/live balance and is it measured?
7. Does the organization genuinely care about its employees?

This is all about getting the fundamentals right.