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Epic Fail – forewarned is forearmed

13 Nov

12 CX traps for your company to side-step 

Who doesn’t like a good list? Here then are some personal reflections on stuff to avoid, as you embark on CX change.

  1. Lip service leaders who talk a good game
    • shallow support and commitment from fair-weather friends
  2. No navigational North Star
    • no compelling strategy and CX vision to identify the desired on-brand experience and guide design and behaviours
  3. No hard-wiring into the business rhythm
    • CX is an aspiration only without the right governance to drive business decisions
  4. Silo’d solutions for joined-up needs
    • functional and fragmented changes that miss the customer’s bigger picture
  5. Reducing customers to numbers
    • left-brain organisations struggle to recognise customers as people, not targets or statistics
  6. Making CX a project or an initiative
    • giving CX ‘flavour of the month’ status means it will never become ‘the way we do things around here’
  7. Measurement, the corporate comfort-zone
    • obsessing about metrics, reporting and methodology, as a substitute for acting on it
  8. Not winning the crowd
    • not sharing CX stories across the organisation, and joining the dots for everyone between strategy, activity and outcomes
  9. Wanting it all, now
    • unrealistic expectations and corporate impatience resulting in a potential credibility problem for CX activity
  10. Wrong metrics drive wrong behaviours
    • internal, or operationally focused reward metrics can drive unwanted behaviours that reinforce the silos and damage customer outcomes
  11. Fail to plan, plan to fail
    • being seduced by the tools and failing to look beyond the workshops and planning for the long road ahead
  12. Ignoring your own people
    • no mechanisms to harness the great insights and ideas from within, from exactly those people who have a huge interest in their company’s success

 

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The good, the bad and the ugly

7 Dec

Slide1

Customer experience is hot right now – there are plenty of great reports and facts and figures out there that help sell the story. Some are more powerful than others, some are plain worrying and some continue to highlight the deep void between the corporate view of the world and customers’ view. Here then is a roundup of some of my favourite numbers, pulled from a wide range of sources and commentators, the good the bad and the ugly. So, do the maths, and work out for yourselves where the real issues lie.

The good news is largely about what organisations say about themselves and their ambitions and plans. The bad and the downright ugly truths are much less about talking the talk, and much more about walking it too. And, as always, when you get down to the ugly truth, it’s all about the culture in the business. After all, every business that has customers is really in the people business.

 

THE GOOD

  • 97% of global executives say that customer experience is critical to their success (1)
  • 90% of executives claim that customer experience management is a top corporate priority (2)
  • 85% of customers state that they are willing to pay up to 25% more for a superior customer experience (3)
  • 81% of senior managers believe that gaining an understanding from the customer viewpoint is very likely to lead to ROI (4)
  • 59% of large global organisations have an ambition to provide the best customer experience in their industry (5)

THE BAD

  • 79% of those who complained about poor customer service online had their complaints ignored (6)
  • 61% of customers agree that ‘different people approach the handling of issues when something goes wrong differently’. Clearly, inconsistency in treatment is always going to be unsettling. (7)
  • While 80% of big companies described themselves as delivering “superior” service, only 8% of customers say they’ve experienced “superior” service from these same companies. It’s a similar story in banking: while 78% of executives say their customer experience has improved over the last year, only 28% of their customers agree (8)

THE UGLY

  • 96% of executives say that some culture change is needed in their organisation (9)
  • Only 31% of employees are truly ‘engaged’ with their organisations, across Europe (10)
  • 30% of managers are coping with 6 or more strategic initiatives at any one time (11)
  • Only 18% of consumers globally believe that business leaders tell the truth (12)
  • Only 8% of companies can confidently declare that they have been successful in changing their culture as a result of customer feedback (13)
  • Only 5% of companies actually bother to tell their customers what they have done with the customer feedback they collect  (14)
  • Only 4% of customers actually bother to feedback and complain to the company – the other 96% don’t bother. (15)
  • Only 4% of global companies are judged to be delivering excellent customer experiences (16)
  • A mere 2% of customers feel that their expectations are always met (17)

SOURCES:

  1. Oracle
  2. Forrester, 2013
  3. Right Now, 2010
  4. Institute of Customer Service, 2011
  5. Temkin, 2012
  6. Kissmetrics, 2013
  7. Beyond Philosophy 2010, CX Trend Tracker
  8. The New Yorker, Bain Consulting and People Metrics
  9. Booz and Co 2013
  10. Blessing White, 2013
  11. Simplicity Consulting, 2011
  12. Edelman Trust Barometer, 2013
  13. Syngro, Seven global challenges 2012
  14. Gartner
  15. Helpscout, 2012, quoting Understanding Customers by Ruby Newell-Legner
  16. Temkin, 2012
  17. Oracle – 2012, the Era of Impatience

The soft stuff is the hard stuff – unwrapping culture

29 Aug

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“Culture eats strategy for breakfast”. So said Peter Drucker and it’s a classic quote: spot on. The more I do and see the more convinced I am that culture eats just about everything. Without the right culture, no amount of charismatic leaders, off-site team building events and swanky cheerleading conferences will make much lasting difference. All the good words and intentions will wither and die on stony ground without the right culture.

So, what then is culture? Chris LoCurto says “culture comes down to two things: action and attitude”.  And as the HR Director at my old company told me, it’s about what happens when no-one’s looking: he tells a great story about three different types of employee, each one confronted by an empty crisp packet in the office corridor. The engaged employee instantly picks it up without thinking and drops it in the bin. The disengaged employee walks by on auto-pilot, thinking someone ought to do something about the standards of cleanliness in the building, while the truly disengaged person was probably the one who dropped it in the first place.

Now, “every company has a culture, either by design or by default”. So says a recent video from the CEO Show.

Here then are nine key questions to ask, amassed from plenty of reading, to understand how things really get done in your organisation:

Do departments and people collaborate or compete?

Warning signs to look for… There may be radically different cultures across teams and functions that drive radically different interactions between people. At the unhealthy end of the spectrum, there’s suspicion and mistrust and the dark art of budget planning becomes a zero sum game with winners and losers, and the idea of working together for the higher cause of (whisper it quietly) serving the customer is heresy.

How are decisions really made?

Warning signs… They aren’t really; it’s down to whoever was still talking at that critical moment when everyone else surrendered, for the sake of moving on (or because people were gathering outside the conference room, impatient to start the next meeting). Or, despite all the soundings and consultation, it’s really done hierarchically, by egos and status. 

Are people enabled or merely ‘empowered’?

Warning signs… Being told you’re empowered is not the same as being enabled. It’s not that helpful unless you also have the right tools and support to succeed. 

When confronted with bad news, how do leaders behave?

 Warning signs… Or, perhaps the first question ought to be, do the leaders get bad news, or is every scorecard a sea of green, which is nonetheless at odds with what peoples’ guts are telling them? But assuming the bad news gets through, which instinct is the first to kick in, of BIFFS? Blame; Ignore; Freeze; Fix; Shoot (as in shoot the messenger)

How do senior leaders add value? By criticising or constructing?

Warning signs… Managers who think the best way to add value is to hunt for flaws and ask the tough questions; all fine in moderation but not so good when the outcome is to delay, defer and depress. 

How is important information shared?

Warning signs… The endless and hierarchical waterfall that slowly cascades down, each time losing a little more meaning and nuance so that by the time the exercise is over, leaders are sick and tired of the whole thing, in fact they’ve already moved on.

How are employees recognised?

Warning signs… If “what for, exactly?” is the first response, then that tells you one thing. Clearly, recognition schemes are many and varied but as a general rule, avoid letting bureaucracy and process drain the life out of what should be a simple and fun thing to do – to acknowledge and thank.

How do big things get done?

Warning signs… Does nobody move unless there’s a signed off project, scope, and deliverables? The question then becomes, how easy is it for the business to adapt and absorb new things? Which leads us on to the last one…

How much time do people spend in meetings reviewing progress?

Warning signs… Some people get double, even triple booked. And ask yourself, what happens in these meetings? What percentage of time is spent on simply monitoring, reviewing and reporting on progress?

Finally, thanks too, to careerrealism.com for two more great questions that can also reveal so much:

  • What would you guess would be the five key words or phrases your (husband/wife/partner) would use to describe your company?
  • What is your favourite day of the work week? And why?

Leading the witness. The unsubtle art of ‘gaming’ customer surveys

22 May

Hmmm.

Take a look at this online survey on attitudes to a leading UK bank that popped up a month or so ago when browsing ft.com. I am asked to say if I agree with the following statements (helpfully, I am also told that I can select all 5 responses, if the mood so takes me):

Slide1

Lloyds Bank…

  • …has the expertise to be a leading partner to UK business
  • …serves and supports UK business
  • …helps make its customers more successful
  • …helps make the UK economically stronger
  • …demonstrates leadership on key issues that matter to my organisation

Now, this is clearly just a piece of fairly innocuous puff to fuel some sort of PR message, and we can all smile wryly and move on. That said, it hasn’t done anything to improve my perception of the bank concerned because obviously, someone somewhere must have felt this was a good idea, worth spending time and money on.

Some surveys that try a little too hard to lead the witness also have a darker side. This is where the outcome is linked to personal reward or recognition.

When the well-intentioned idea becomes hostage to the law of unintended consequences. 

I was recently reminded of this when I picked up a prescription at a leading pharmacy brand. We’re probably all familiar with the scenario: you queue to hand the prescription in, you’re told to come back in 15 minutes, and then you collect it from a different counter. For once I wasn’t told to go away, and the same person handled the whole transaction in around a minute. I mumbled “gosh, that was quick” and then the pharmacist, sensing a happy customer, wrote his name on my till receipt and asked me to take part in the online survey mentioned on the back of it. Now, chances are, if I’d had a very different experience, say where it took much longer than promised or they’d run out of the product, I suspect he’d have acted very differently.

Slide1

Such stories – when personal intervention can, in effect, ‘lead the witness’ – are legion on the web. Take a look at this example, from the Consumerist site in April, where a pizza company in the US is offering a $1 discount off the next order provided you score the experience you’ve just had a 5 out of 5. As you can see from the photo, the process to claim the discount involves some ingenuity – all helpfully explained – to work around the system.

So, if your organisation is truly intent on listening to the authentic voice of the customer, then avoid the witness being lead! The first rule of survey completion should be to avoid putting the invitation to complete the survey in the hands of people who personally stand to gain from positive responses.   

Sorry doesn’t seem to be the hardest word any more

24 Apr

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In the good old days (for “good”, read “bad”) when a company screwed up, it was a case of wait and see who notices, deal with complaints as and when they come in, and hope that nobody goes to the press. When (or if) the spotlight was finally thrown on the miscreant, a written statement to the press would have told us that the company had learned its lesson, and that such things just cannot happen today, etc. 

Well, some things don’t change; wait and see if we get caught still seems prevalent – but what does seem to have changed is the way that companies recognise they need to be much more proactive, sincere and even ‘human’ in how they respond, and to mean it!

 Saying sorry is the new black. It’s certainly not the hardest word any more    

 Take a look then at this little collection of video apologies (or, what passes for apologies, in some cases). Some are very new, some older. Thanks are due especially to the Wall St. Journal for a 2011 article that captures some good ones (referenced at the foot of this post).    

 Eurostar

 Although it looks like it was filmed in a broom cupboard, this one scores for being timely, rough and ready and, more importantly, ‘real’. And, the compensation offer is appropriately generous! 

JetBlue Airways

Here is an apology for the logistical snafus that grounded planes and people; pretty straightforward and direct, and again reassures listeners that they will learn, but with the less than specific ‘we’re-going-to-conduct-a-review-so-we-learn’ defence. On the plus side, the choice of venue is interesting – here is the COO, a man in the nerve centre of the operations, not in an anodyne media interview suite, and with his jacket off, so maybe he’s part of the solution, rather than just the spokesman? And, like many public apologies these days (Barclays in their one page ads from last year is a good example) he reminds us that he needs to re-earn our trust.      

SSE

SSE, a UK energy provider, was fined £10.5m this month for miss-selling. Here is the Managing Director of Retail in a video entitled Sorry isn’t good enough’. And yes, he’s at pains to stress that ‘it wasn’t me’, it all happened several years ago. This seems to be a sorry tale of yet another toxic culture, where targets and incentives were designed to benefit the company concerned, at the cost of its customers.  Is he truly remorseful? You decide.

Domino’s Pizzas

For a good and ‘human’ example, look no further. Here is the CEO’s response to a stupid and disgusting prank by two (now ex-) employees in one store. The interesting thing about this video is that it tracks audience reaction to the ‘believability’ of his words. This is a man talking with sincerity, passion and anger – watch how the scores shoot up as he talks of the business “reeling” from the incident, and how it “sickened” him. And of course, extra ticks for being very specific on the actions taken.

Netflix

Two people apologising, and it’s personal, but it seems to morph into a sales pitch for the new service too. Wasn’t much liked on youtube either, but then of course, there was a lot of anger around the move that eventually prompted the apology! Check it out here

Groupon

A good one, from Groupon. Scores for a very detailed explanation for what went wrong, and it’s open and humble.

Sony

Err, what’s with the backdrop ambient music? Maybe too slick? Take a look here.  

Toyota

Again, a nice one, detailed and specific, which is good. Nice to see a freephone number throughout, too, to add to the voiceover.

BP

Enough has been said about the CEO’s “I want my life back” comment already. All I can say is, don’t bother clicking on the link in the WSJ story at the end of this post, as you get a message saying, “This video is private”! Maybe they’ve decided to move on?

What, then, makes a good apology?

From the top – we don’t want to see a PR spokesman forced to go through the motions by his or her boss. We want to see it from the boss, or if not the boss, then the person accountable for ensuring it doesn’t happen again. And we want to be convinced that he or she ‘gets it’. Let’s not forget that a good apology ought to be worth its weight in gold – commentators talk of the Domino’s apology as a classic: by showing his anger and disgust, and moving to action, the CEO repaired many bridges.  

We want to see it – Press releases, full page ads, carefully crafted letters don’t seem to cut the mustard. We want to see sincerity, humility and be convinced that lessons have been learned and that things will change.  

Be specific – we want to feel that the speaker acknowledges the real details of the problem, rather than shies away from them, or talks vaguely. Without them talking about the specifics, the nagging doubt is, do they really understand what went wrong, and what it meant for those affected?

Be timely – better to be proactive, surely, than wait till the chorus of disapproval is deafening. And especially so if the trigger for the apology is a regulatory fine, or other public censure! There, the risk is the apology is perceived as too little too late. 

Actions speak louder – we want to see that the business is taking responsibility, now, and that practical action is being taken, in order to give us some belief that the mistakes of the past cannot be repeated. ‘Root and branch reviews’, internal investigations, audit committees are not the same as actions, by the way..the fear is, they are yet more smokescreen!

 

Finally, thanks to the Wall St Journal, for a 2011 round up of 10 CEO video apologies – I’ve used a few in this post, but for the full article, and access to all 10 (well, 9 given that the BP one has been taken down) click here

Are your customers out of sight, out of mind?

11 Apr

Slide1

It’s far too easy for senior executives to be seduced by numbers, graphs, charts, red-amber-green ratings, and generally let their eyes glaze over when they hear the word, customers. Especially if you’re sitting in a conference room up on the 25th floor – customers look quite small from way up in the rarefied air of the corporosphere. 

I’m always fascinated by how companies try to get beyond the numbers on the page. This feels pretty important to me – people who forget that their customers are, well… people too, with feelings and emotions, just like them, then find it all too easy to perpetuate the language of ‘target markets’, produce ppt presentations with arrows and bullseyes in them and talk about capturing share of wallet, and ponder, in all seriousness, questions like, who owns the customer? Errm…. newsflash: I’m not sure anybody owns me, least of all a company I just happen to have chosen to do business with.

So, here then are 12 great examples of how organisations seek to remind their folk that customers are people too:

Amazon is famous for having an empty chair in executive meetings that represents the customer. Throughout the meeting, executives are reminded to include the customer in their decision making processes, and to ask, what would we do if the customer were sitting in this chair, here and now?

TUI, a leading UK based travel company went one further and for several years permanently displayed three key challenging questions on their boardroom wall – see picture. Slide1

The software provider Adobe won a Forrester Award in 2011 for its customer immersion programme (see short film) which is all about getting executives to stop thinking like boardroom automatons, and step into the customers’ shoes for a day, and build empathy.

For another example of a more interactive experience, a few years ago, CIGNA (US Healthcare) developed an Experience Room in the HQ for their people to walk through and live the customer experience. Some 80% in total went through it. It set out the ‘before and after’ for how the experience is and how it should be. It was imaginatively done, so for example, there was a scary ‘wall of paper’ that was, as intended,  overwhelming and that made the point well; imagine if it was you receiving all this paperwork, and at a vulnerable moment in your life, how would you feel? This is a powerful mechanism to force the company to think ‘horizontal end to end experience’ and not ‘vertical functional silos’. 

USAA are renowned for making their staff ‘wear their customers’ shoes’ (clearly, recruiting from the armed forces helps too). As they say “we require all of our staff to live the lives of our customers – only then can they understand their unique needs”.  So, for example, induction involves eating army rations and wearing helmets and Kevlar flak jackets. USAA calls this living customers’ lives in ‘surround sound’. If you think this is too gimmicky for you, then consider the story I heard of the lady who joined USAA many years ago during the Vietnam war – her first job was to ring up troops stationed overseas for the war. Having got the ‘job’ part of the call out of the way, she was told to stay on the line for as long as needed and simply talk to the soldiers. For many, she was a lifeline back to the ‘normal’ world, back in the US.

Office Depot, a US business-supplies chain, has a “planogram lab”, a prototype store, where it brings in customers to co-create and test new ideas. As the Economist reported, it “also uses the old trick of forcing senior managers to play the role of customers”.

Deere and company (tractors, US) invite farmers who are buying tractors to visit the factory with their families. This is a chance to cement the relationship, but also for factory line workers to meet their customers, and maybe better understand the role their products play in their customers’ lives.

Talk to the customer – yes, I know, it’s not rocket science is it? As I shared in a recent post, SouthEastern does it in person – they regularly hold “meet the manager” events at London Bridge station in the rush hour, where 10 or so senior directors gather with their clipboards, listening to their customers’ tales of commuting nightmares. Others do it over the phone. Virgin Media are strong here – resisting the temptation to just have managers passively listen to calls, and for a day only (when, let’s face it, the urge to check in with the day job will still be strong), they have every manager spend a week back on the floor, being trained up, then manning the phones and at the end of it all, reflecting back on what they’ve seen and learned.  I recall a great conference presentation from 2 years ago when David Perotta of Vodacom talked about how he ‘ambushed’ a senior management conference in South Africa by announcing that in 10 minutes each table would be joined by 10 customers, ready to talk to the executives, answer their questions and ask their own, about the products and services! As you might imagine, David said there was a fair bit of trepidation at the outset, but 45 minutes later, he couldn’t get the managers to stop talking!

Finally, my old employer, Aviva made a series of short films celebrating ‘heroic’ service. They were well made, emotional, and they had a powerful impact internally. And, interestingly, one of the principles underpinning production was that the individual who had made such a difference for the customer was reunited with the customer. Moving stuff, watch this one for example. Finally, this film, from Cleveland Clinic is also a superb example of building empathy and customer understanding.

 

Links for more information:

CIGNA source : Don’t Yield on Customer Trust, IBM White Paper, 2009 

The Economist, The Magic of Good Service

Deere and Company: How Customers can Rally your Troops, HBR June 2011, available at HBR.org

 

Rubbing Salz in the wound at Barclays?

4 Apr

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The Salz review of Barclay’s Business Practices was published yesterday, all 244 pages of it. And, kudos to the new brooms at the bank for publishing it online too.

So, hot off the press here is a set of excerpts, mostly from the front of the report (but not the headings, they are mine! Highlights are mine too). It all makes fascinating reading, essential text-book reading really for anyone involved in financial services, risk management, governance and organisational culture or simply fascinated by the sorry tale of a major UK bank brought low by toxic culture in one part – a dominant and super clever part – of the business.  

Multi silos = multi cultures

“The result of this growth was that Barclays became complex to manage, tending to develop silos with different values and cultures. (Turn to page 81 for Fig 8.2 for a great audit of the many differing value sets!). Despite some  attempts to establish Group-wide values, the culture that emerged tended to favour transactions over relationships, the short term over sustainability, and financial over  other business purposes”.

Void at the centre

“We believe that the business practices for which Barclays has rightly been criticised were shaped predominantly by its cultures, which rested on uncertain foundations. There was no sense of common purpose in a group that had grown and diversified significantly in less than two decades. And across the whole bank, there were no clearly articulated and understood shared values – so there could hardly be much consensus among employees as to what the values were and what should guide everyday behaviours. And as a result there was no consistency to the development of a desired culture”.

“However, culture exists regardless. If left to its own devices, it shapes itself, with the inherent risk that behaviours will not be those desired. Employees will work out for themselves what is valued by the leaders to whom they report. The developing cultures across Barclays were still less consistent as a result of a highly decentralised business model, that tended to give rise to silos. This left a cultural ambiguity at the heart of the bank”.

“The entire Group Guiding Principles had not percolated into the consciousness of the Group. Employees of all ranks were often unaware of the Guiding Principles. If they were aware, they could cite only one or two of them – often without much authority. They also told us that they were not a regular feature of induction processes, were rarely discussed as part of how they should work in practice, and were not embedded in training or performance management processes.”

“As Antony Jenkins (new CEO) said in the 2012 Annual Report: “For the past 30 years, banking has been progressively too aggressive, too focused on the short term, too disconnected from the needs of our customers and clients, and wider society and we lost our way.”

The unhappy voice of the Employee

“For the employees at Barclays this has been a difficult time. Our meetings with them and a survey we conducted made clear that the overwhelming majority are focused on the bank’s customers and doing their best for them. They are as disappointed as anyone by some of the behaviours”.

“Many employees told us directly about their sadness, disbelief and anger with what has gone wrong in terms of the much publicised poor behaviours”

You get the behaviours you reward

“There was an over-emphasis on short-term financial performance, reinforced by remuneration systems that tended to reward revenue generation rather than serving the interests of customers and clients”.

Kill the messenger?

“There was also in some parts of the Group a sense that senior management did not want to hear bad news and that employees should be capable of solving problems. This contributed to a reluctance to escalate issues of concern”.

HR powerless

“The HR function was accorded insufficient status to stand up to the business units on a variety of people issues, including pay. This undermined any efforts to promote correlation of pay to broader behaviours than those driving individual financial performance”

Customers 101 (!)

“In pursuit of its goal of being a leader among its peer institutions, Barclays should develop an understanding across its businesses of how to meet its customers’ needs and expectations while also meeting its own commercial objectives and those of its shareholders. It should seek to learn from customer feedback, and publish the measures by which it would judge performance in resolving complaints. Barclays should report periodically on progress against these measures by publishing the data both internally and externally so as to reinforce the seriousness Barclays places on continuous improvement.

And…so what?

“To address the trust issues and restore its reputation, we suggest that Barclays should communicate openly and transparently how, and to what extent, it will implement our recommendations.”

Barclays should be praised for publishing this report. Let’s hope too that this new spirit of openness and humility continues, and that this point above is also acted on. Fascinating times indeed, for the once great Barclays!   

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