HR's Role in Building the Business of the Future

A few of my clients:

A few of the 90 + Universities:

For the past 22 years…

“Simplicity is the ultimate sophistication” Leonardo da Vinci

The Pattern of Business Success

(T + C + ECF) x DE = Success

Talent

Talent + Culture

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 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…

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

50%

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

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

The key elements of a winning culture: Employees

FunFamilyFriendsFair

FreedomPridePraiseMeaning

Accomplishment

1 -10

What Employees Want: SBAFocus 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

The Six Universal Drivers of Engagement

1. Caring, competent, and engaging leaders.

2. Effective managers who keep employees informed, aligned and engaged.

3. Effective teamwork at ALL levels.

4. Job enrichment and professional growth.

5. Valuing employee contributions.

6. Concern for employee well being.

1 - 10

Extreme Customer Focus

How do the Best Companies Deliver Superior Customer Service?

• From a study of more than 3,000 companies — narrowed down to the top 101 companies that profit from customer care — here are the Top Six Factors that were the fundamental tactics used to build and manage extraordinary levels of customer satisfaction and loyalty.

1 -10

They listen to, understand, and respond (often in unique and creative ways) to the evolving needs and constantly shifting expectations of their customers.

Own the VOC

1. Extreme Customer Focus

They establish a clear vision of what superior service is, communicate that vision to employees at all levels, and ensure that service quality is personally and positively important to everyone in the organization..

2. Shared Customer Service Credo

3. Process = Repeatable success

• They create systems, processes and protocols to ensure that service delivery is flawless… without stifling the creativity and initiative of their employees.

They establish concrete standards of service quality and regularly measure themselves against those standards, guarding against the “acceptable error” mindset by establishing as their goal 100% customer satisfaction performance.

4. Clear Standards + Accountability

Measure & Post Create A Dashboard of Key Indicators

MPS Margin Per Sale

Talent

Customer Service

Customer Retention

They hire the best people, train them carefully and extensively so they have the knowledge and skills to achieve the service standards, then empower them to work on behalf of the customers, whether inside or outside the organization.

5. Customer Focused Employees

They recognize and reward service accomplishments, sometimes individually, sometimes as a group effort, in particular celebrating the success of employees who go “one step beyond” for their customers.

Deal decisively with mediocrity

6. Reward and Celebrate Success

Kaizen

For those who are prepared…Chaos brings opportunity.

10 – 15%

Where are we going andhow will we behave on the way?

FocusDifferentiation“No”

Guiding Collation

Vision + ValuesStrategy

ObjectivesInitiativesPrograms

Procedures / ProtocolsRepeatable ProcessClear / consistent / relentless

Training +time / money /

supplies / people

Measure / TrackCommunicate

Transparency Accountability

Celebrate SuccessEliminate Mediocrity

Workshop 12

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

My twitter address is: @awesomelysimplePlease feel free to “friend” me on FB

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Lastly, these slides have already been uploaded to:

www.slideshare.net/johnspence

Thank You