John Spence

ASMC 2010 Creating a Remarkable Culture

A few of my clients:

What does this mean to me?

How can I use this idea?

What can I do right away?

I am NOT a guru…

Cecil Van Tuyl

“It is all about people, people, people. You can kid yourself about a lot of things in your business, but at the end of the day it will always come down to people.”

The Pattern of Business Success

(T + C + ECF) x DE = Success

The level of highly satisfied and engaged EMPLOYEES in your business.

The number one factor in increasing the level of highly satisfied and engaged CUSTOMERS in your business is…

What do engaged employees look like?

1. They give more discretionary effort.2. They consistently exceed expectations.3. They take more responsibility and initiative.4. They receive better customer service ratings.5. They offer more ideas for improvement.6. They promote and model teamwork.7. They volunteer more for extra assignments.8. They anticipate and adapt better to change.9. They persist at difficult work over time.10. They speak well of the organization. 1 - 10

Job + Organizational Engagement = Employee Engagement

Not Engaged Engaged

En

gag

ed

Not

En

gag

ed

Job Engagement

Org

an

izat

ion

al E

nga

gem

en

t

50%

9%

Benchwarmers

7%

Free Agents

34%

Stars

Disengaged

Actively Disengaged Employees…

22%

Key Drivers of Customer Satisfaction and Loyalty

Financial Performance

Quality P&S&

Customer Relationship

EmployeeSatisfaction

Empowerment High Standards

Long-termOrientation

Enthusiasm, Commitment,

Respect

Training &Development

Fair Compensatio

n

CR= 104.12% increase in profits

CR= .404

CR=.334

CR=.277

CR=.275CR=.249

CR=.280 Coaching

CR=.285

CR=.371

CR=.365

CR=.191

CR=.247

TolerateNothing

Less

From: Practice What You Preach by Maister

Global study:16 countries529 companies15,589 respondents

Customer satisfaction drives customer loyalty… and customer loyalty drives profitability

100%

90

80

70

60

50

40

30

20

Extremely Dissatisfie

d

SomewhatDissatisfie

d

SlightlyDissatisfie

dSatisfied

Very Satisfied

Zone of Defection

Zone of Indifferenc

e

Zone of Affection

Loyalt

y

Customer Satisfaction

Terrorist

Evangelist

A 5% increase in loyalty among your best customers…

Can produce a profit increase of 25% – 85%

I hate you

I don’t care about you

I love you

Actively disengaged employees can reduce revenues by up to 22%, while highly satisfied and engaged

employees can drive profits up by as much as a 189%

Culture = Cash

Your employees will treat your customers…

What YOU want from your employees

• Innovation• Accountability• Execution• Urgency• Customer Focus

• Ownership Mentality

The key elements of a winning culture: Employees

FunFamilyFriendsFair

FreedomPridePraiseMeaning

Accomplishment

1 -10

The Five Dimensions of a Great Place to

Work

Pride&

Camaraderie

Fairness Respect

Credibility

TRUST

What Employees Want

Focus me

Know me

Care about me

Hear me

Help me feel proud

Equip me

Help me see my value

Help me grow

Help me see my importance

How do you do that? 1 – 10

• Provide lots of feedback and clear guidance

• Make real time to discuss problems and concerns

• Seek ideas and input from everyone

• Provide the resources to do the job well

• Give lost of recognition and rewards

• Provide ample opportunities to learn and grow

• Keep the pressure to perform realistic

• Provide opportunities for social interaction within the organization

• Promote joy and appropriate humor at work

• Help people balance work and home responsibilities

The Six Universal Drivers of Engagement

1. Caring, competent, and engaging leaders.

2. Effective managers who keep employees aligned and engaged.

3. Effective teamwork at ALL levels.

4. Job enrichment and professional growth.

5. Valuing employee contributions.

6. Genuine concern for employee well being.

1 - 10

“When I make a mistake I am recognized 100% of the time, but when I do something right I am NOT recognized 99% of the time.”

1,300,000 interviews: Basic 4 + 1

Goal Setting

TrustAccountability

Communications

RECOGNITION

From: The Orange Revolution by Gostick and Elton

The Rule of 3

• Wow – breakthrough teams commit to a clear and specific standard of world-class performance.

• No Surprises – all team members are accountable for openness and honest debate, and each knows what to expect from the others.

• Cheer – team members support, recognize, appreciate and cheer each other and the group to victory

From: The Orange Revolution by Gostick and Elton

WOW

• What, specifically, is the clear standard of performance that is expected / demanded from everyone in your organization?

No Surprises• What are FIVE specific things

you can do right away to increase the level of communication within your organization?

CHEER!!!!!

You cannot pay people to be passionate, creative and engaged. You must create a culture that inspire those behaviors through real and frequent recognition.

What are FIVE specific things you can do right away to increase the level of celebration within your organization?

Extreme Customer Focus

Web of Value: VOC + MOT + WOM

VOC

Moments Of Truth

MOT Practice Round

Dry CleanerHair SalonTailorPlumber

MOT Bonus Round: YOUR Business!

WOM = Your BEST form of advertising!

78.9%23.4%

43% - 74% of purchasing decision = WOM/T

You MUST have a WOM Referral System

Identify Ideal

Customer

ReferIdeal

Customer

From John Jantsch: The Referral Engine

WOM Workshop: Best Ideas from the Group

Kaizen

For those who are prepared…Chaos brings opportunity.

Execution

What are THREE things you will go home and apply right away from this workshop?

The 6 Keys to a Remarkable Culture

1. People2. VOC3. MOT4. WOM5. Kaizen6. Execution

THANK YOU

If you have any questions at all please do not hesitate to send a note or call. My email address is: john@johnspence.com

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