So I turned to a book that I read recently ‘Small Giants’ by Bo Burlingham – to the chapter that he writes about customer intimacy.  The author quotes a business that says “I have an intense, nearly neurotic interest in seeing people have a good time.” He then quotes Tom Peters from In Search of Excellence ‘that great companies are usually founded by people with a not totally stupid obsession around which they build their business’. Burlingham goes on to explore the construct of the customer transactions, but ultimately the customers ‘experience of connection’ will greatly impact on his or her concept of service.

“For lack of a better term, we might refer to the process as building a sense of community – that is, a sense of common cause between the company, its employees, its customers and suppliers. That sense of community rests on three pillars. The first is integrity- the knowledge that the company is what it appears and claims, to be. It does not project a false image to the world. The second pillar is professionalism- the company does what it says its going to do. It can be counted on to make good on its commitments. The third pillar is the direct, human connection, the effect of which is to create an emotional bond, based on mutual caring.

Companies that succeed in developing such a sense of community with their customers and suppliers find themselves in possession of one of the most powerful business tools in the world.”

So if I review this particular customers email against these three pillars – I can hand on heart say that we fulfilled on them all. The reality remains that I did not agree with his request. Does that mean that customer intimacy will forever be illusive? Or does it mean that this one just got away. But if I  have an almost obsessional focus on listening to customers and then responding (because that is what made RedBalloon what it is) – how can I possibly achieve this for everyone?

Customers look different now

This week we have seen the demise of Fletcher Jones and the opening of Top Shop. My 15 year old daughter texted me, saying ‘I’m even more excited than when Zara opened – it is British and I love it – when can we go?”

Many Australian retailers are left thinking “what happened – where did our customers go?”. We are in the peak of Christmas season and there is not one retailer in Australia who is not holding their breath and ‘hoping’.  As we know however ‘hope’ is not a strategy.

From the online world I can see so clearly what is likely to happen over the next few years. But I don’t have a massive infrastructure or team – I don’t have to move a mammoth organisation into the position of competing against global players.

Think of the traditional retail customer experience: we battle the traffic, search for a parking spot, deal with lousy weather – and then try to find someone to serve us– when we finally do find someone to assist we discover that the retailer does not have the color, quantity or size you need. No wonder people are choosing online… it is soooo easy.

I’d hate to be in the business of having to have all the right stock in all the right places at all the right times – being served by all the right people… how hard is that?

What can retail businesses learn from the entertainment business?

What if retail outlets became show rooms – where as a buyer once your color and style are determined you have your item delivered at no extra cost direct to you the very next day. Not schlepping your purchases from store to store – wasting hours, with hurting feet – that would be an experience.

Retail in Australia is about to make a massive shift and not all will make it. I hate to say it – but it is all about the experience. In speaking to the MD of  Chanel Australia he says that their concept stores go from strength to strength – people love being immersed in the brand – and you just simply cannot achieve the same experience in a department store.

Fletcher Jones did not grow with it customers. I have just come from a business lunch in the city – half the attendees were wearing jeans….

Please retailers – wake up  – listen to your customers and give them something worth fighting for. I understand that the reason why Top Shop is opening stores here – is because they have been shipping so much product here via their website they realised what a fantastic market it is.

Bring innovation back to retail… for instance young Eliza Roberts (11) has started her first business  – in the northern beaches of Sydney she has started a Pet Birthday cake business… in the first month she sold 30 cakes. She knows her market, she provides fab service – and people are very much getting the ‘entertainment value’ of being able to talk about the experience of their purchase.

Retailers it is time you gave your customers a ‘good time.’

James shares his insights into RedBalloon

We are fast approaching RedBalloon’s tenth birthday, with that it mind I wanted to check in with the team ‘What does it mean to you to be a part of the RedBalloon story?’ The answers were delightful and insightful… but this particular answer from one of the newer RedBallooners is very worth reproducing in whole.

If you were to ask the similar question in your organisation, you too could get a great insight into the ‘mood’ – think of it as a ‘culture check’.

R Recognised. Continual recognition day to day has been very important in my short time here. Knowing that all my efforts are acknowledged, appreciated and are of value to the business in achieving the goals we collectively aspire to, gives myself and everybody a huge sense of unity in where we are heading.

E Experiences! Such a unique trait to my role and being a part of my story is fulfilling so many dreams for so many people. Not many people I know can say the consequences of their daily tasks will live in the memories of others forever!

D Dynamic. I am buoyed by how I can personally contribute to our visions and challenges for the future. If I want to make a suggestion of change or improvement, the big red door is always wide open. All that is required of me, is imagination.

B Belief. Having the people around me who are not afraid to get out there and make things happen because they believe in the cause. No objectives are too big, because where there’s a will, there’s a way. We are all role models.

A Aspiration. Reaching the One million milestone and the ‘RedBalloon Story’ I believe is directly attributed to the investment in the people along the journey. Being a part of an ever improving, expanding organisation who actively encourage personal development and achievement will, in my mind, only motivate the story into achieving even bigger ‘hairy audacious goals’ in the future, and it feels good to be a part of that.

L Love. For what we do and how we work.  To me the story is based up a culture of passionate, driven people, which can only have a ripple effect on each other and associates alike.

L Learning. The story of the RedBalloon journey is anything but one dimensional, and the opportunities for learning to benefit myself and company co-inside with the RedBalloon ride. Only limited by the wind in my sails.

O One-on-one. Anyone involved in the RedBalloon story can approach anyone at anytime. Two heads are better than one! Be it personal or otherwise, it is well practiced and there is always someone I can to turn to.

O Opportunity. Seizing the opportunity! The story for me has told me to not be afraid in grasping an opportunity. Flexibility in my role is great and I can go about that how I like, which permits outside of the box thinking. Which reminds; “Most people think inside the box, great visionaries think outside the box, geniuses don’t see a box!”.

N Next steps.. the future

James R…. Corporate Team

I have been in three situations recently that have given me an insight I had been oblivious too. When we happily operate in our own world we are often blind to other peoples view of the world.

I thought people knew how important it is to be grateful for another person’s generosity and that to authentically thank them was the gift they give in return.

1. I was chatting to a business associate who, when I asked him how he recognizes his small team, answered ‘I don’t like to thank them more than once a month – otherwise it just won’t seem sincere, you can over do it if you say thank you to often – they will take it for granted.’
2. I was in a committee room where it was being discussed what to give the speaker to say thanks for their generosity of presenting to our group – and one of the men in the room said ‘they don’t do it for the gift – they do it because they want to help others.’
3. I was asked at an event on the weekend how RedBalloon went during the GFC – given that gifting is not an essential purchase.

My response to each:

1. It is not the quantity but the quality of the acknowledgement that makes the difference. “Good manners cannot be worn out.” You could make someone’s day, every day as long as the acknowledgement is truly personal, timely and relevant. Generic words that are not specific do little to make you or the other person feel great. Be specific.
2. People don’t donate their time to speak for the ‘thank you’ gift – but as a speaker I know how much I give of myself every time I step before an audience. What the speaker really wants is to know that they made a difference to another person’s life. Letting the speaker know the contribution they made will be the thanks they yearn for. Also to give them a thoughtful gift – that has perhaps been researched about what is relevant to them – shows them that you cared about the preparation the speaker made – because you to cared enough to go to a similar effort.
3. Gifting is a central to our well being. It is essential to our humanness. They way we thank some one, or acknowledgement them is what makes people feel connected to another. The work done by the New Economic Foundation points to the well being effect of gifting on not only the recipient but also the giver. Giving a great gift is a source of happiness – and is fundamental and essential to our well being.

Last night I got inspired to write this after watching an episode of Madmen – where Don the main character has a fundamental issue with acknowledging those around him. Set in 1965 I understand that may be how people operated last century. But we have moved on.

EXCERPT: The tension rises with Peggy’s frustration at being kept in the office after hours. Add her simmering resentment of her unsung contribution to the Glo Coat commercial and she reaches boiling point. She lashes out at Don for taking credit for her work and he retorts with “It’s your job. I give you money, you give me ideas.”

“And you never say thank you!”

“That’s what the money’s for!” he yells. “You’re young, you will get your recognition. And honestly, it is absolutely ridiculous for you to be two years into your career and already counting your ideas. And you should be thanking me when you wake up, along with Jesus, for giving you another day.”

Please leave a comment about a time you thanked someone authentically and how it made you feel. I am looking to add stories to the book I am currently researching… thank you

Liz outlined that leaders who make people feel smarter (multiply) as opposed to leaders who make people feel smaller (diminish) – will get more than double the capability from those people. She said it is like releasing the power of genius in everyone. Growing without one additional team member.

There is an online test that you can do to find out if you are an ‘accidental’ diminisher – it is worth the 10 minutes to complete.

I clearly remember my manager at Ansett Airlines, never making time for me, I almost had to beg for her to see me and review what ever I had been working on. I would hang around her office door trying to catch her attention…. And if she did finally bestow some of her precious time on me – I usually left feeling like and idiot… because of the way she would say ‘why didn’t you….’

Contrast this to the manager I had at Apple a few years later – who always prioritized our weekly one on one meetings – I felt that she was truly interested. I felt I could ask questions, and that we ‘were in this together’ I worked 10 times harder, I felt challenged, and proud when I finished the project… I was definitely contributing my ‘genius.’

My colleague Matt forwarded me this blog post…. where Nokia CEO basically says…”We Suck”

“…This is what I have been trying to understand. I believe at least some of it has been due to our attitude inside Nokia. We poured gasoline on our own burning platform. I believe we have lacked accountability and leadership to align and direct the company through these disruptive times. We had a series of misses. We haven’t been delivering innovation fast enough. We’re not collaborating internally….”

Does this comment make people feel ‘Smarter’ or ‘Smaller’  – it is great to be authentic… it is what we want most from our leaders. But I am sure there is a way to be authentic without diminishing peoples efforts, to inspire them, challenge them and make them feel great about what they do every day.

What do you think? Is this great authentic leadership?

It is true though that I have often spoken about ‘employees as the new customers’ – but there is a subtle difference in language compared to the term ‘internal customers’. I consider my fellow RedBallooners as my ‘colleagues’ and that we are all very much equals – with every person contributing ideas and energy towards achieving our purpose. Employees as the new customers – means to me ‘that I am all ears.’ Also I think that the term ‘internal customer’ implies one person is ‘serving’ another. And that is not the case at RedBalloon… we work side by side, supporting each other. All food for thought though.

So I agree with Verne – that there is no such thing as an ‘internal customer’, but I do think we can have more than one customer group.

This week – is all about preparation for a very busy few months.

Sunday: RedBalloon is on Kochie’s Business Builders 10.00am Channel 7

Monday – Tuesday – One on One meetings and preparations for end of trimester.

Wednesday – Working on a new project (doing some planning and forecasting)

Thursday – Speaking engagement for Westpac Private Bank on Customer Experience.

Friday – Touch base with the Customer Experience team at their weekly meeting

Parenting is a community issue

Education is at the source of growth (not just for the individual but also for economies) and, in Australia, the majority of our university graduates are women. We’re number one on the planet in terms of educating women in tertiary institutions – yet the participation rate of those women in leadership roles is dire. So we’re spending the money on education but we’re not getting the return out of our highly educated people.

I’ve written before about the economic argument for positive action and legislation in regards to women on boards and equal pay  And while I firmly believe that this sort of legislation will create an important, defining shift in regards to business leadership, there are wider community implications too.

Take paid parental leave. I’m glad that at least now there is18 weeks parental leave. But I think there is a bigger issue. Parenting is an eighteen-year job, and that’s being conservative! What are we doing to support parents…. For the next two decades. Paid parental leave isn’t the answer to encouraging women to return to work. It’s what we do to make childcare accessible and available to people all the time, without prejudice, whether it’s a mother or father, foster parent, guardian or whatever. (And I won’t go into the whole question of how we judge ourselves as being ‘good mothers’ – which also impacts our childcare possibilities)

Not only is the cost of childcare in Australia rising, the availability of positions is also at a premium. Whilst the government reimburses a percentage of fees based on a family’s income, it becomes an economic – and also an emotional argument – on the side of the carer who, whilst wanting or needing to financially contribute, perhaps does not wish to be a stay-at-home dad or mum all day every day either. I have an associate with young children who works part-time at RedBalloon who freely admits that (see her blog post) – whilst loving her two under sixes – she is a far better wife and mother because she is able to work, contribute and exercise her creative brain with her peers each day. I too worked too hard on my career to pack it all in when I had kids…(they would not have benefited from having me with them full time – I think I am a better mother because I have other interests) I tried to compromise by working from home.

RedBalloon thrives because of its great team. Part-time roles, the flexibility to work from home or take time-in-lieu are not ground-breakingly innovative on our part. Yet the spirit in which all these are offered may well be. (Now I am on the hunt for child care places close to the office.)

Everyone’s contribution here is valued equally as highly, no matter the hours they work, or whether they are working virtually.

So we need leadership from the top, from government and with more women on boards. How do we create truly family-friendly workplaces? The UK’s Childcare voucher scheme struck me as a simple, straightforward way to pay for quality childcare, with its tax benefits to both employees and employers.  Yet many women miss out of the non-critical, yet still beneficial, aspects of work – the seminars, the conferences, the networking events, the breakfasts – because who is going to do the childcare and get the kids to school?

It’s important to recognise that it’s not simply a women’s issue, it’s a community issue and one that need structural economic reform, especially if you are spending valuable taxpayers dollars educating a populace who are then not able to easily contribute back to society, no matter how much they wish to.

‘I can no other answer make, but, thanks, and thanks’. William Shakespeare.

As I just complete my tenth Christmas at RedBalloon – I experience a sense of overwhelming gratitude. I have been truly humbled to see how RedBalloon has captured the imagination of so very many people.

In my wildest dreams ten years ago I never thought that we would make such a profound difference in all sorts of ways.

I thank the businesses and organizations that believe in what we do – and believe in their own people and choose to recognize them with a RedBalloon gift.

I thank the experience supply community who every day deliver experiences and fulfill on our promise of providing fabulous things to do.

I thank our other suppliers, like Bluefire, PwC, Westpac, Qantas and Telstra (and many others)– these big businesses who’s services mean that we operate smoothly and efficiently.

I thank the many marketing partners and agencies we work with – who understand our vision and believe in the dream

I thank our retail distribution partners including Australia Post, Coles, Woolworths, Myer, Big W and Target who are trying something different in store

I thank the 300,000 customers who came on-line in 2010 and purchased an experience gift for someone special (and reduced the clutter on the planet in the process.)

I thank those who are dear to me; my family, friends and fellow business leaders who never tire of my enthusiasm and energy.

I thank most deeply my colleagues past and present – who make RedBalloon the vibrant, fun and amazing place that it is to be.

And I thank the RedBalloon leadership team who constantly steer the ship – executing the plan and keeping all aligned – tirelessly.

Together we have created something… The dream of changing gifting in Australia forever is well on track….

Thank you! Thank you for believing moment by moment that it is absolutely possible; that what people want more than anything is special moments with those people who are important to them.

“For your thoughtfulness and generosity, from you I have learned much of life’s philosophy – Thank you sincerely.” – Author Unknown

I guess I question if this entrepreneur is reading or learning anything. One thing that Verne Harnish is noted as saying ‘the entrepreneur that learns the most wins’ – as the leader of an organization we simply cannot stay stagnant – or operate in the past.

In the last few weeks I have read three more books that have further inspired me to stay completely committed to the team.

1. People have a choice.

Learning from Dan Pink in his book Drive: that Motivation comes from peoples experience of autonomy, mastery and sense of purpose – that carrot and stick incentives are a thing of the past.

2. It is so not about us.

From Keith McFarland in the Breaktrhough Company I reconfirmed my belief that a leader is there to serve his or her employees – to take roadblocks out of the way, that they are the custodians of something much bigger than themselves.

3. Generosity is the reward in itself…

In The Power of Nice by Kaplan Thaler and Koval., (which I found sad). These New York women are trying to expound the virtues of common courtesy. Unfortunately they say ‘being nice to people and you will get returns’. The idea of doing something nice – not for the sake of being generous, but because it will pay you back. I find this tragic, because ultimately it is still based on greed and betterment. The real meaning of nice is when we do things or say things without any agenda, other than wanting to make a difference to another human being.

Dear friend – I know you are sad because you invested greatly in your role at significant personal hardship. You gave your love to that business – probably more than the owner himself. You lived, learned and this time lost – the question is what would you do differently next time?

Astoundingly, Matt wasn’t kidding me. Instantly I wondered how Google, the ‘hero’ of employee engagement and employee branding, could be so short sighted.

Google is famous for winning employee awards, not just in Australia but also around the globe. Only last week Google Australia was named the most sought after employer in our Dream Employers survey.

Why on earth would Google implement such a unilateral cash benefit program – it just does not make commercial sense. (Are we all paying too much for our Google Adwords?)

RedBalloon works with hundreds of organisations designing and implementing engaging and exciting programs that make people feel truly special and proud of their employer – this is what drives loyalty – long term.

About four years ago I was speaking with the HR manager of a large publicly listed company with 15,000 employees.  Management decided to ‘celebrate’ a certain business result by giving each employee a $1000 bonus.

The HR manager told me it was the single worst HR decision they had ever made. He said people were upset and became un-motivated. Those who were highly paid never noticed it in their bank accounts – especially after tax; those who were part of a workplace agreement had shop stewards arrive demanding next year’s productivity bonus. But the worst, he told me, was the complaints, nay bitchiness that occurred, such as:  ‘she was on maternity leave she wasn’t even here for most of the year, why should she get the same amount?’

This HR manager admitted there was so much backstabbing and unrest over the bonus, they fundamentally damaged their culture and it has taken years to recover.

I feel like asking this HR director to call Google to let them know what happened. A well-intentioned $15million spend, instead of motivating people became a disaster for employee culture and motivation.  What was meant as a gift had the opposite effect.

Cash is never a gift. Look at the research documented by Daniel Pink in his book Drive he specifically outlines the short term ‘high’ of cash Keeping people engaged is not about their pay packet – if you pay people fairly of much greater importance is their autonomy, mastery (what they learn) and also their sense of purpose.

In speaking to HR leaders, they are aghast at Google’s decision.  Why not give 20% to the top performers and zero to those who aren’t?

It makes me wonder, how involved were the HR leaders at Google in this decision?

Of course people will want to work for Google, they have no shortage of applicants as we discovered in our Dream Employer survey. Around ten percent of Australians and New Zealanders dream of working for them, although at the current job vacancy rate, it is going to take about 11,000 years for them all to get a job there!

Loyalty is never about the money. I recommend Google’s CEO – Eric Schmidt – invest in a consistent recognition program and develop his leaders to acknowledge people. Notice people, love them, value their contribution and make them hero – make their dreams come true and they will be with you for the long term and give you their valuable discretionary effort.