why bother? Assume the average salary of employees in a given - - PowerPoint PPT Presentation

Assume the average salary of employees in a given company is $50,000 per year. Taking the cost of turnover at 150% of salary, the cost of turnover is then $75,000 per employee who leaves the company.

For a mid-sized company of 1,000 employees who has a 10% annual rate of turnover, the cost

• f turnovers is $7.5 million!

William Bliss

why bother?

why bother?

Kotter and Hesket

PERFORMANCE MEASURES

Revenue Growth Stock Price Growth Net Income Growth

STRONG ADAPTIVE CULTURES

682% 901% 756%

LESS ADAPTIVE CULTURES

166% 74% 1%

what we know

Source: Harvard Business Review

The Employee-Customer/Profit Chain

Customer Value Prop. Employee Value Prop. Financial Value Prop.

return in assets

• perating

margin revenue growth attitude about the job attitude about the company employee behavior employee retention service helpfulness merchandise value customer impression customer retention customer recos drives drives

5 unit increase employee attitude 1.3 unit increase customer impression 0.5 % increase revenue growth

When you make your organization more Women-friendly, you make it more people friendly.

Source: Deloitte & Touche why bother?

What keeps an organization alive for 100 Years? Change lines of business at least once! Focus on people, really Know the value of cash in hand Have tolerance at the margins

Arie De Geuss, The Living Company

why bother?

brand is a “fabric of associations” that lives on in customers’ minds

mental response stimulus

• products/services
• experiences
• environment
• communications

brand!

what is brand inside?

is the systemic development

• f the organization’s brand promise

brought to life through the committed action

• f every employee for

every customer experience

what is brand outside?

is the sum of all the strategic actions you take to communicate your brand promise to your customers

“be distinct or extinct”

what we know

what we know

Mercer Research, Nov 2000

employee commitment and capability have a significant, quantifiable impact on the customer experience

what we know

Mercer Research, Nov 2000

employee commitment and capability have a significant, quantifiable impact on the customer experience, which in turn has a major impact on brand equity and shareholder value.

what we know

Tom Peters Co. Research, March 2002

51% of employees said they do not know what a brand is…

what we know

Tom Peters Co. Research, March 2002

51% of employees said they do not know what a brand is… 15% said they understand their firm’s brand promise

what we know

Tom Peters Co. Research, March 2002

51% of employees said they do not know what a brand is… 15% said they understand their firm’s brand promise 9% agree that they “live the brand”

bi:bo scorecard 6 critical success criteria for any organization

bi:bo framework 6 critical success criteria for any organization

bi:bo scorecard

bi:bo touchpoints

done correctly a brand can create a brief moment when company and customer walk in perfect step…

bi:bo touchpoints

success criteria for any organization

A touchpoint is any product, service, transaction, venue or experience where a customer or employee receives a significant impression (functional and emotional) of your brand.

training talent reward systems communication systems environment leadership workforce projects

bi:bo inside touchpoints the employee experience

trusted market leader

the benefits

brand inside

• employee retention
• passion
• talent
• alignment
• organizational value
• profitability
• culture
• cool place to work

brand outside

• loyalty
• growth
• stock price
• retention
• opportunity
• market share

bi:bo touchpoints Coca-Cola case study

Coca-Cola Packaging Division

“Revitalization through Innovation”

• create internal brand vision for packaging
• develop “leadership voice” and ability to sell new

ideas to stakeholders through “WOW! Projects training”

• employee brand training

“Without the tompeterscompany! I would have lost 50% of my staff.” Jay Gouliard, VP PDD

bi:bo touchpoints Coca-Cola case study Coca-Cola Culture of Innovation!

WOW!™ ideas

• enhanced usability
• ownable

bi:bo touchpoints Coca-Cola case study Coca-Cola Culture of Innovation!

WOW!™ ideas

• reinforce valuable equities

bi:bo alignment

“Aligning the workforce and the brand creates a virtuous cycle of engaged committed employees who deliver what customers want, leading to higher customer satisfaction, spending, and improved business results.”

Arthur Blank, Co-founder, Home Depot

bi:bo alignment

success criteria for any organization

Alignment occurs when internal forces are in parallel (talking to each other) with the external messages so the employees are delivering on those brand promises and the systems, policies, and processes are supporting that effort.

bi:bo alignment NAVAIR case study

Align 29,000 NAVAIR employees around a unified brand vision to ensure high performance in a volatile environment of the demands of war + downsizing.

bi:bo alignment NAVAIR case study

Engage All 29, 000 People

Through t heir leaders

Show Up and Communicate

I nf o Exchanges at all sit es

Collaborate

Wit h Exec Groups, Ambassadors, Leaders at all Levels on current project s

I mbed

The Brand in t he Work

Our Approach to Deployment

BUT

We Must Address The Barriers!

Work Assignments >

WOW!Projects… Practical Breakthroughs

Create/Fast Prototype

Sell Implement Celebrate/ Exit

HOW: WOW! Project Methodology

Goals ⇒ Results

Warfighter Bill of Rights, Response Centers, Ambassadors created.

Improved support for Improved support for Warfighter Warfighter

29,000 people educated on their role in providing Advanced Technology in support of NCW – 90% of those trained reported “strongly agreeing” they could steward the brand.

Education and readiness to Education and readiness to support Network Centric support Network Centric Warfare Warfare

CNO, other senior DOD leaders engaged proactively in planning for “future state”

Improved alignment within Improved alignment within command, Navy, DOD command, Navy, DOD

bi:bo leadership

“Great brands require great leadership to stay relevant.”

David Aaker

bi:bo leadership

success criteria for any organization

Leadership creates and inspires a shared vision, challenges the process, enables others to act, models the way, and encourages the heart!

bi:bo leadership Lenscrafters case study

Build strong leadership to infuse brand values throughout the organization.

Susan Knobler

Lenscrafters

bi:bo talent

“Talent = Brand”

Tom Peters

bi:bo talent

success criteria for any organization

The pursuit of acquiring, developing and inspiring the best people to build your brand - people with the greatest skill, experience and commitment, aligned to achieve the organizations strategy. Performance Ensembles/PSF’s Sports Teams Jazz Groups Scientific Voyages Master Classes Think Tanks Start Ups

bi:bo talent Brooks Brothers case study

Utilize the talent of district and store managers to relaunch a venerable brand and drive sales of a new product line.

Brooks Brothers

North American Roll-Out

Campaign Internal Brand Launch Corporate Communications Rehearsals Showcasing Talent

Facilities Consulting Team Wall

OWP&P

Learning Communities Knowledge Communities Apprenticeships Intraprenuring Practice Fields

Robin Ellerthorpe

OWP&P

Passionate about his discipline Reinventing Architecture Loves diversity Doesn’t wait for permission Speaks/writes freely

bi:bo execution

“No company can deliver on it’s commitments or adapt well to change unless all leaders practice the discipline

• f execution at all levels. Execution has

got to be part of a company’s strategy and goals. It’s the missing link between aspirations and results.”

Larry Bossidy, Former Chairman, Honeywell Corp

bi:bo execution

success criteria for any organization

Execution results in the long-term commitment to ‘operationalizing’ the brand, inside and outside the

• rganization - through people,

technology, and communications systems and processes.

• t hey f ocused on t heir values t hrough t he work
• t hey gave people concret e t ools t o use
• HR made t he brand/ cult ure a meaningf ul and

import ant cornerst one in t he organizat ion’ s hist ory (what it ’ s like t o work t here… .)

• t hey provided a st rong business case f or t he

benef it s of brand inside/ cult ural st rengt h, t o

• rganizat ion and individuals

Hallmarks of Companies who Successfully Execute Brand Inside

bi:bo brand passion

“Only with a strong spirit at it’s foundation can a company achieve a strong market position.”

Jesper Kunde

bi:bo brand passion

success criteria for any organization

The most admired companies (and often times most profitable) attract people who are passionate about the brand. Brand Passion is an emotional connection and a highly personal relationship with the brand.

Walking Flying in Your Customers Shoes

“She insists on learning every detail about her clients”

Wall Street Journal , 10-18-00

Target Scooters

John Christiansen, Charthouse Learning

“We really w ant to w ork w ith you.”

John Christensen to Julie Anixter

So what? Now what?

What’s YOUR Scooter?

why bother?

financial impact of brand building

Highest total return to shareholders attributed to aligned

• rganizations, excellent execution and processes, distinctive and

compelling leadership practices

Southwest Airlines Wal•Mart Tyson Foods Circuit City Plenum Publishing

why bother?

Jeffrey Pfeffer, Competitive Advantage through People

21,775% 18,970% 18,118% 16,410% 15,689%

• firms largest gains in brand equity > ROI average 30%
• firms largest losses in brand equity > ROI average -10%

Brand Equity - The combination of consumers’ awareness of the brand, the brand’s perceived quality, consumer association with the brand and consumers loyalty to the brand.

why bother?

EquiTrend

An increase of customer loyalty of just 2% is equivalent to a 10% reduction in costs.

• R. Passikoff

why bother?

An increase of 5% in customer loyalty can deliver 95% greater profitability over the lifetime of that customer.

• R. Passikoff

why bother?

Over 50% of customers would be willing to pay a 20 to 25% price premium to the brand that they are most loyal to before they would switch to a competitive brand.

Scott Davis

why bother?

50% of customers are willing to try a new product from a preferred brand because of the implied endorsement, credibility and trust.

Scott Davis

why bother?

It takes 7 times the cost and effort to gain a new customer as it does to keep an existing customer.

• R. Passikov

why bother?

Leading Change

means you have to be able to “hold” creative tension

To be As is

• experiences
• environment
• communications

Your Journey

For more info contact Julieanixter@tompeters.com