« October 2007 | Main | December 2007 »

November 19, 2007

Engagement NOT Advertising = Key to Success

logo.jpg 

My favorite brand just doesn’t get it. It has recently reported that the average customer traffic at Starbucks Corp.'s U.S. stores fell during the company's fourth quarter for the first time, a sign that the Seattle coffee giant is having difficulty attracting customers as it moves into the holiday season.

What was Starbucks response to declining traffic? Starbucks planned to launch its first national television-advertising campaign. In an interview, Chief Executive Jim Donald called the campaign "a very culturally sensitive, product-driven" effort. He said Starbucks is getting into TV advertising because "as we grow our stores, we're trying to attract more customers who haven’t had the chance to experience Starbucks.

Huh?

I don’t think an ad campaign is what Starbucks needs right now. I have also reduced my visits to Starbucks. Why? Let me list the reasons,

  • Employees don’t make an effort to get to know their customers – not even the regular ones.
  • Employees don’t welcome you or thank you for your business.
  • Employees are not making the same effort in creating that true Starbucks coffee experience – mistakes are happening too often with no apology/compensation for the inconvenience.
  • The line-ups are too long for such an expensive coffee experience.
  • The stores are not as clean as they used to be – counters are dirty; cups aren’t organized, tables are not cleaned off.
  • There isn’t enough comfortable seating – which is part of the whole “home away from home experience.”

So what does all of this mean? I would suggest that Starbucks spend time energizing and engaging its workforce. I would be willing to bet that the engagement level of the employee base is on the decline. Why would I say that – all of what I have listed above is evidence that employees are not fully engaged.

If I was Jim Donald, I would forget about spending millions in an advertising campaign and focus on creating engaged employees who consistently can deliver the experience that all of us customer evangelists came to love and enjoy!

 

Posted by Judy McLeish at 02:53 PM | | Comments (2) | TrackBacks (1)

Looking to Hire - Be Different

Employees want to work in environments that are creative, fun and unique. Well, if you haven't heard of Connected Ventures, then you had better watch this Internet sensation promo-video.

If you are competing for the best employees, companies are going to have to think of ways to attract the best and the brightest. Here is a very clever way to get noticed.

 

 

Posted by Judy McLeish at 12:06 PM | | Comments (0) | TrackBacks (0)

November 09, 2007

Contact The Bellagio - Our Employees May Not Respond

HeaderContactUsFAQ.gif

Remember, the post that I wrote about The Bellagio and how one employee created an experience that was well below their promise of contentment and opulence? We had a comment on our blog that asked if we had sent our experience to The Bellagio and, if so, what was their response? Well, I forwarded that blog post to The Bellagio to give them a chance to respond. Here is what The Bellagio says on their website:

 

We look forward to receiving your comments.

 

  • Please note that our staff responds to e-mail inquiries from 9:00 a.m. – 5:00 p.m. Monday-Friday. Huh? Bankers have better hours that this. Surely they jest…
  • Please allow 3 to 4 business days for a response. Well, I forwarded our blog on Saturday, November 3rd at 9:34 p.m…

 

…tick…tick…that’s right according to my calendar 3 to 4 business days have come and gone. Now we are heading to the end of Day 5!

 

I would have to say that something is not right at The Bellagio. Sure their website is wonderful and their stated mission and values are all very inspiring. And yes, the facilities are certainly luxurious. But, I am now wondering whether or not the promise of contentment to the customer is really being translated to their employees. Are their employees receiving any “psychic” income?

 

You see this is where employee engagement is critical. Our first experience was with an employee that didn’t seem to care about our experience at all, and our second experience involves the company not responding to comments in the promised timeframe.

 

So what? Well, I certainly would be wondering about the levels of employee engagement at The Bellagio. Great companies always need to remember that they are only able to deliver excellence if every employee is engaged and committed. So far, the front desk employee, and the customer service area employees are not displaying either commitment or enjoyment.  I wonder what other areas at The Bellagio face the same level of employee disengagement?

 

Let us know your thoughts.

 

Posted by Judy McLeish at 01:43 PM | | Comments (0) | TrackBacks (0)

November 08, 2007

Engagement - Are You Building Psychic Income?

lollipops.jpgI had a wonderful discussion with Derek Irvine of Globoforce today regarding current trends in employee engagement. Derek had some wonderful insights which should be shared:

    • There is an increasing recognition that non-cash rewards are becoming more effective than cash. How? Non-cash rewards such as travel, experiences, merchandise, and gift certificates tap into the psychic income needs of a person. We love the psychic income term used by Derek, as it highlights the importance of the satisfaction or enjoyment which an individual experiences through a non-cash reward and creates “buzz” around the experience and the company.
    • Engagement starts with a strategically aligned recognition system that is directly tied to the strategy of the overall company. It is no longer enough to have an ad-hoc “thank you drawer”, rather successful programs must be embraced corporate wide and executed strategically.
    • Engagement is not something that happens overnight – it is a one-person at a time effort. Once it takes root, you have an epidemic of recognition which directly ties into long-term company success.
    • Beyond creating a strategically aligned recognition system success will be determined by the direct Managers' ability to create a culture of appreciation. It starts with helping Managers understand why recognition is important and how they should reward and recognize their staff.
    • Beware of traditional employee engagement surveys, rather focus on asking employees how they would feel if the company did “x” or “y”. This will certainly help to build engagement and will prevent your company from being drawn into surveys which increase cynicism and focus on past events or feelings.

    We couldn’t agree more with Derek’s insights and want to thank him for sharing them with us today. Let us know your thoughts.

       

Posted by Judy McLeish at 11:02 PM | | Comments (1) | TrackBacks (0)

November 02, 2007

Medieval Times - Death By a Thousand Cuts

What is Medieval Times? Medieval Times is a dinner show experience with live battle tournaments, live equestrian showcases, and a feast. We decided to take our six children to the event to test the "kids" birthday experience for a new experience product we are developing. While the tickets are expensive - $39.95 for a child and $62.96 for an adult – we thought this would be a great experience.

How would we rate the event – only a 2 out of 10! Why? Don’t get me wrong, the show was amazing and the kids haven’t stopped talking about the knights and the battle tournaments. This was spectacular. So why only a 2?We were told to arrive at 2:30, but once there we discovered that the show started at 4 o’clock. We assumed that their must be entertainment first….
  • We entered the castle only to find several gift shops selling things that children can’t resist – overpriced swords, shields and other knight related materials. These gift shops cost us an extra $60.00 in swords.
  • The only thing to do for children (other than visit numerous gift shops) was to visit a dungeon where they could go in and see various torture methods from the medieval period. Only $2/person – an additional $12.00.
  • To have our son’s birthday announced in front of his friend with a picture with the King – an additional $20.00. Can you imagine not having your child’s name called out!
  • A picture of your group brought to your table – an additional $20.00. Are you joking? This we decided not to purchase!
  • A picture with the King or princess another - $20.00!
  • A less than satisfactory meal, with a cash bar – huh?
  • Followed by a waitress who left a tip plate….when does it end?

At every turn, we felt gouged. When I asked one of their employees how they feel about ripping off their customers they simply smiled and said “I am a student and I just need a job.” Hardly the response you would want from an engaged and committed employee, who truly believed in the company’s core purpose.

Medieval Times is a great example of a company that does not demonstrate is stated values. What do they say?

We pledge – to value integrity and treat people both inside and outside our organization with the greatest respect, honesty and esteem. As a customer, I certainly didn’t feel valued or respected. Rather, I feel that they have created a transaction oriented environment that truly does not understand the philosophy of building customers for life. What’s another core value?

We commit to pursue excellence in serving our guests. I think I would change this core value – We commit to creating an environment where kids will want, and parents will be forced to open their wallets at every turn.

To be honest with you, I think the Medieval Times experience has huge potential. Management should sit back and re-think how often they ask customers for money and think about whether or not they are truly building customers for life or an experience that parents will remember as “death by a thousand cuts.”

Let us know your thoughts. medievaltimes.jpg

Posted by Judy McLeish at 01:41 PM | | Comments (2) | TrackBacks (0)

November 01, 2007

Technorati

<a href="http://technorati.com/claim/nry8amr4sb" rel="me">Technorati Profile</a>

Posted by Judy McLeish at 09:05 PM | | Comments (0) | TrackBacks (0)

Live the Core Values or Forget Engagement

Trust.jpgYou discover your core ideology by looking inside. It has to be authentic. You can’t fake it. It’s meaningful only to people inside your organization and it need not be exciting to others outside. It’s an individual journey. And it is in the authenticity, the discipline of the consistency of the values, not the content, that differentiate the greatest companies from the rest.*

Core values are the basis for a set of norms or expectations about appropriate attitudes or behaviors within a company. They form the basis of a company’s culture in which people share expectations and guide behaviors.
 

Why are core values so important? Most of us need to believe that what we are doing makes a difference to others and that our work is important. We want to feel valued as people. We want to be respected for who we are, not simply for what we do.

Sounds logical enough – so why are so few companies actually consistently living their stated core values? And what happens, when they fail to consistently live them?
Facts
  • When core values are not consistently lived, they lose their meaning. It is not enough to put values into formal company literature, they must be living values that show up in day-to-day operations. When core values are not consistently lived, employees lose respect for the organization and its leaders. They become cynical and disengaged.
  • It is the responsibility of Leaders to model the way. The Leader’s within an organization are responsible for leading the way. Leader’s must put the values into practice and ensure that everyone knows and understands how to live the values.
  • When Leader’s lead the way and consistently live the values, employees feel passion and enthusiasm for the company. When employees see the organization living the values they will commit to both the company and its mission and will deliver the core purpose with passion and enthusiasm.
  • The best companies have core values that really capture the essence of the company. The core values are unique and meaningful each company and when lived create a culture and a level of engagement that creates a best-in-class organization. Too many organizations seem to have the same values – excellence in service, teamwork, trust and integrity – but what does it really mean? The best companies are their core values. For example, which company has a stated core purpose to make people happy and the core values of entertainment, family and fun? It’s obvious isn’t it – it’s Disney. Why is it so obvious – Disney consistently lives its core values from the top down, which creates engaged and committed employees who deliver the core purpose of the company which is to make people happy.
How can companies ensure that they live the values and engage employees to deliver the core purpose of the company?
  • Reiterate the values. Make sure everyone understands the core values, what they mean, why you have selected them and what you expect.
  • Live the values from the top down. Ensure that your Leaders model the values, every day in every interaction.
  • Educate your teams. Ensure that everyone understands the values and how to demonstrate them in various situations. Bring the values to life through citing real life examples.
  • Measure the values. Measure and report adherence to your core values and identify areas for improvement.
  • Reward and recognize those who consistently live the values. Successful companies reward and recognize those who consistently demonstrate the desired attitudes and behaviors. Rewarding those who live the values creates passion and enthusiasm for delivering the core purpose.

Now ask yourself – is your company living your core values?

*Source, Jim Collins, Built to Last

Posted by Judy McLeish at 02:32 PM | | Comments (1) | TrackBacks (0)