Recently I interviewed Annalisa Gigante, a Board member of ZIS (Zurich International School) and former Head of Innovation at LafargeHolcim. We were talking about customer-centric leadership and Annalisa suggested that companies could really benefit from a “Minister for Foreign Affairs”. She said today “we need to know what’s going on with the rest of the world.”
I thought about this and realized that the amount of disruption we are facing in our businesses and work lives suggests that we can gain better context on what’s happening, make better decisions, and have a better chance of benefitting from it if we do what she suggests.
In our research and work with companies wanting to become more customer-centric, we have called this factor: Peripheral Vision. That is, the externally focused “wide vision” activities carried out to understand the likely impact on the future business from changes in technology, society, economy, political and legal, and the natural environment.
Many companies seem to have a “Minister for Foreign Affairs”, but like we see in politics, often the learnings and potential impacts of these insights are not widely shared – and consequently not acted upon. In practice, peripheral vision should be built into future business strategies. But in our experience, it is frequently missing.
If you want to know how you can identify if your “Ministry of Foreign Affairs” is effective, find out about how our MRI (Market Responsiveness Index) can help you.
We hear a lot about fake news these days – what’s real and what’s fake is sometimes hard to know. That’s not the case when it comes to customers “reading” your culture.
Let me recount my experience with 3 upmarket restaurants in Sydney, Australia.
Sydney has many fine restaurants. I will compare my experience at two of these – Aria is at Circular Quay looking at the opera house and the Sydney Harbor Bridge and Jonah’s is on a cliffside on Sydney’s northern beaches overlooking Whale Beach and the Pacific Ocean. Both serve fine dining at expensive prices with excellent food.
I decided to book Jonah’s for my wife’s birthday and asked for a table next to the window overlooking the ocean. I was told this was not possible and when I asked why, I was told by the manager that there are many factors that they use to decide who have the window tables – when the booking was made, how many people are in the party, what the booking levels are for that particular day. I was making the booking more than a week in advance and on a weekday at the earliest lunchtime sitting, but still could not be told whether I would get a window table. Choices were 12 noon or 1.30pm. He said, “ we are very busy, we get tours and we decide on the day where people sit.” There was an arrogant tone in his voice so I decided to try Aria.
The call to Aria was a totally different experience. “Yes, we can give you a window table, would you like a surprise cake for your wife’s birthday?” You can choose your time of arrival – “12.30pm is fine and you can stay the whole afternoon.” Aria is just as busy as Jonah’s but you have a completely different mindset. At Jonah’s it is all about their convenience, their operational procedures, their rules for organizing tables. At Aria, it is about what the customer wants and how can they be satisfied. You cannot fake it. The customer mindset exists or it doesn’t. The customer knows this with a simple phone call.
Then there is the dining experience. My wife and I went to Pilu, a Sardinian specialty restaurant at Freshwater beach on Sydney’s northern beaches. This too is an upmarket restaurant. What impressed us about this restaurant was the staff. The sommelier knew every detail possible about the wines, the server knew exactly what was in each dish and could explain it. Both established a relationship with us by telling us about their hometown in Italy. They were not rushed, were patient with our questions, answered them fully and made suggestions. At the time of payment, the manager told us how much of a team effort was involved and how his team worked together to make a memorable experience for their guests. At the end of the evening, they asked if we would like to give them information on our birthdays and we would be offered a 5-course degustation meal free at that time. We happily signed up and provided the information they wanted.
A customer culture only exists when it is authentic and all employees are part of a happy, collaborative team, knowing that it is the customer that is the center of their world. It can’t be faked. It’s the difference between getting the business and creating advocates and not getting the business and getting bad reviews.
How do you get it? You will find many of the answers in our book: The Customer Culture Imperative.
Posted in Authenticity, Customer Centric Culture, Customer Centric Values, Customer Communications, Customer Experience, Customer Service, Empathy, Honesty, Market Culture in Action, Market Culture Inaction, transparency, Uncategorized
Tagged Customer Experience, customer service
Recently I was talking with Dmitry Pukhov, co-founder and owner of a very successful event catering company in Moscow. When I asked him about customer-centric leadership he said the core characteristic is a desire to help people that comes from the heart. He said he believes that we all have a gene that can create a drive to provide service to others. But only some people have developed this gene – through their upbringing, experience, interaction with others who use it and mentoring from customer-centric role models.
There is some scientific evidence to support this. Research shows that people who are more caring and compassionate towards others share a common gene variation linked to the receptor for oxytocin (sometimes referred to as the “love” hormone) that plays a key role in the formation of social relationships and impacts our capacity for empathy. The science suggests that those with the “GG” variant of this gene are better with people and generally more caring.
But all is not lost for those of us that don’t have the “GG” genotype. There is also evidence to suggest that compassion and empathy can be developed through socialization with people that role model it and experiences that elevate it.
I asked Dmitry why his business is so successful – it has grown rapidly over the 12 years since he founded it – and he told me it is because being customer-centric and service focused has always been the driver in his business. He recruits people that exhibit the customer-centric gene and invests in the ongoing development of the gene in all his staff.
Are you using your customer-centric gene or is it dormant? If you want to know what to do to develop it, refer to our book: The Customer Culture Imperative.
Don Peppers wrote a profound article recently pointing out that most companies are not acting on building superior customer experience over the medium and longer term. He tells us that most of what is being done delivers minor efficiencies and is short-term in impact – NPS measurement that addresses the symptoms and not the cure, customer journey mapping that is not really acted on, and creation of a customer experience role or function that has no authority and limited influence across the organization. Over time this impetus dilutes and dies as senior sponsors move focus on to other initiatives. He provides some good advice on how to overcome some of these weaknesses.
In our experience, most companies, claiming to be customer focused or embarking on the activities noted above, are missing the key foundation required for sustained customer experience success – a strong customer-centric culture. The diagram below illustrates how a customer engagement culture encompassing all leadership and employees drives customer experience, which in turn creates loyalty, advocacy, and better business performance.
Peppers notes, and we agree, that customer experience is a journey. It requires the capabilities that a strong customer culture delivers and needs a focused plan and commitment by senior leadership to carry it through to the medium and longer term. It requires a “customer” mindset in all parts of the organization and a deliberate commitment to embedding this at all levels and all functions as “the way to do business”.
It should begin with measurement and benchmarking of the level of customer-centric culture in all parts of the business. This highlights strengths, weaknesses, levels of employee engagement with customers, and priorities for capability building. This forms the foundation for an ongoing customer experience improvement strategy that all employees in the business can buy into and can contribute towards its implementation.
At MarketCulture we have a proven roadmap that successful companies use to build an ongoing customer experience capability that delivers consistency and sustainability – and results in sustained growth and industry-leading profitability.
This year I have interviewed more than 40 leaders who have been selected on the basis that they are perceived by the people who know them well to be customer-centric. Our consulting partners around the world have been the main source of connection with these leaders.
One of the common themes of these leaders is that they have a sense of purpose that they want to leave a much stronger and sustainable business through the culture they create – a customer-centric culture. Some of these leaders head up multinational businesses in various countries and regions of the world and remain in those countries for only 2 to 3 years before moving to another region. The typical tenure of CEOs in large publicly listed companies is only 3-4 years. So how do they leave a legacy?
The most customer-centric leaders know that they must embed this culture in middle management and up, down and across the business. It is only then that the business will survive constantly changing senior leadership. I have always believed that one of the keys to embedding is a valid measurement of customer culture across the organization. This creates tangibility, employee engagement with customers and targets for improvement. Measurement in tandem with rewards and recognition for customer-centric behavior and performance provides the virtuous cycle for a sustainable customer culture that drives ongoing superior business performance.
That’s why I, with my team, have invested so much personal energy into measuring and benchmarking customer culture behaviors that are the foundation for superior and sustainable business performance in today’s disruptive world.
The MRI tool, developed 10 years ago, now with a rapidly growing database is a key tool that customer-centric leaders can use to fulfill their purpose of embedding customer culture deep in their businesses that can be sustained long after they have left.
What is your leadership legacy?
Making pizzas seems like a simple business. After all its been happening for centuries and it seems like almost anyone can do it. But to make a sustainable business out of it and maintain an appealing brand in today’s competitive world requires a customer centric leadership mindset.
A starting point for Domino’s change from an ailing pizza maker in 2010 to a growing food business was a leadership change. Patrick Doyle became CEO in 2010 after Domino’s had experienced several years of stagnating business and declining share price. Doyle realized that he could only revamp the business if he could lead and create a mindset change in staff – a change from an “omission bias” where people worry more about doing something different than no change and “loss aversion” where the focus is on not losing rather than winning. I remember the great American motivational writer and speaker Zig Ziglar saying “.. the fear of loss is greater than the desire for gain”. Doyle realized that playing it safe was the riskiest course of all and he needed to create a mindset in the business that change is a necessity and a learning mentality in which for staff “failure is an option”.
A Customer-Centric Leadership Mindset was Needed to Transform Domino’s Pizzas
The change in Domino’s strategy came with a big picture view and a realization that they were not only in the pizza-making business but also in the pizza-delivery business and how this fundamentally affected the experience of their customers. This meant becoming just as much a tech company as a pizza company to transform the way customers could order and monitor the status of their order using a Domino’s app. Other apps were created to enable customers to provide feedback and become involved in games making ‘virtual’ pizzas.
Staff needed to be open to customer criticism to help them make better pizzas that customers would love eating as well as keeping them warm enough by the time of delivery. So Domino’s took on board customer views of how bad the pizzas were and suggestions on what to do to improve them.
Customers’ frank views were aired in advertising and social media and created a transparency and honesty that enhanced brand trust. Domino’s used staff in ads to describe how they had changed recipes and ingredients to make better tasting products. The company created a delivery car with one seat and a warming oven for up to 80 pizzas. It modernized its image to create more of a sense of style and a sense of humor. All of these things were needed for success. Here is 4 minute video describing what they did:
But the foundation for creating this change to a more agile, customer-responsive business came from the customer mindset brought by the new leader and embedded in the business in a way that enabled them to change and transform. As one senior leader told me recently it is the focus on the customer and their changing needs that is the motivator for leaders and staff to change!
Domino’s business results prove the point. Today, it is the second-largest pizza chain in the world, with more than 12,500 locations in more than 80 countries, and up from a share price of around $8 in 2010 to one of $215 in June 2017.
Learn more about what a customer centric culture and mindset are by reading our book, the Customer Culture Imperative.
Posted in C-Level Quotes on MarketCulture, Case Study, CEOs, Change Leadership, Competitor Insight, Customer Centric Values, Customer Experience, customer focus, Honesty, transparency, Trust, Voice of the Customer
Tagged customer centric leadership, customer culture, dominos pizza, Patrick Doyle
As a leader it is not easy to “let go”. I find it a real discipline to delegate and enable others in our business to do it their way and to do what’s right for the customer. So many leaders rely on processes as a security blanket that enables them to feel comfortable with what is happening in their business.
But we can take a lead from Tony Collins, former CEO of Virgin Trains in the UK, who told me:
“I put my trust in people not processes”
Tony presided over the transformation of Virgin Trains from an internal oriented public service mentality (when Virgin took the franchise from British Rail) to a customer service culture with customer satisfaction levels and profitability as benchmarks for the European rail industry. This approach empowers people and teams to make their own decisions and not wait for approvals.
Supercell’s Founder wants to be the Least Powerful CEO
Supercell’s CEO, Ilkka Paananen, believes the less leaders control the more powerful their companies. Supercell, a Finnish company, was worth about $10 billion in 2016 from the creation and marketing of games accessed by digital devices. Paananen says he wants to be the least powerful CEO in the world. He believes the best people will make the best teams that will produce the best games. He explains it this way: “What I mean by this is that the fewer decisions I make, the more the teams are making. In a dream scenario that means the team is making all the decisions. A couple of years ago, we were working on something called Smash Land. Everyone in the company loved it, and it was so close to meeting its targets but didn’t quite make them. So the team went to a sauna together, talked it out and took the decision to pull the plug. I was travelling at the time, so they didn’t bother to consult me – they just emailed the company to let them know. That’s just how Supercell should work.”
He was inspired by the Netflix approach to operate like a top sports team. It reminds me of a conversation I had with a former New Zealand All Blacks rugby coach who told me that they coach in the belief that “ better men make better All Blacks”. Players are empowered to make decisions under extreme pressure on the field without consultation with the leaders. This makes them a world beating team that almost always wins close games.
As a CEO of a very successful Telecoms company told me recently, when he and his senior team “got out of the way” and let their teams do what’s best for their customers, his company dramatically increased its customer retention rate and customer satisfaction levels resulting in earlier customer account payment – happy customers pay earlier. This translated directly into sustained revenue and profit growth.
These examples constantly remind me to trust my team and our partners to get on with it and create great experiences for our customers.
Learn more in our award winning book, the Customer Culture Imperative.
Posted in Customer Centric Leadership, Customer Centric Values, Empowerment, Freedom, Trust
Tagged all blacks rugby, customer centric leaders, empowerment, ilkka paanenen, supercell, tony collins, virgin trains
Ever since reading the classic Competing for the Future I realized that a business leader must have one eye on the present and the other on the future. Every organization is running two businesses – today’s business and tomorrow’s business! To build capabilities today for tomorrow’s business requires a cultural capability for agility, change and customer centricity. I call this cultural capability: peripheral vision – the extent to which leadership and staff in the business monitor, understand and respond to trends and changes in the larger environment including technological, economic, social, political, legal and the natural environment (such as climate change). This future oriented cultural capability also leads us to build disciplines around customer and competitor foresight – what will customers’ future needs be and who will be future competitors and where will they be coming from.
The need for organizations to build these cultural capabilities today is demonstrated by what I call the Amazon Effect. Amazon just announced the acquisition of Whole Foods, a natural and organic foods supermarket chain with 465 stores in North America and the UK. What are the implications? With its online technology capability, Amazon now has a bricks and mortar chain that can be leveraged with its delivery capabilities, elevating online selection and ordering of Whole Foods private label products. It will also bring change to the current retail format with new technology like no cash registers – all to add to the ease and convenience for consumers. This will have a huge impact on other supermarkets, food and grocery manufacturers and the entire retail industry.
What would be the impact in the car industry if Apple bought Tesla or in wearable technology if Google purchased Samsung? How is VISA dealing with PayPal and Apple Pay and hotel chains coping with AirBnB? Many of these challenges for established companies are yet to happen – but they will……and soon.
I am thinking about what this means for my own business and what cultural capabilities and strategy we need to build now to ensure its future. What is your Amazon Effect – the thing that would require you to totally reinvent your business? Building cultural disciplines in peripheral vision, customer foresight and competitor foresight will enable you to become prepared to face these challenges, make the changes you need to make, take up future opportunities and run a growing and sustainable business. Without them you will struggle at best, but more likely be consigned to the history books.
Preparing for your future business requires customer-centric leadership that galvanizes all your leaders and staff to build capabilities firmly focused on who your future customers and competitors will be and how the whole organization is geared to adapt and provide ongoing superior value for customers.
Learn more in our award winning book, the Customer Culture Imperative.
Lars Bjork, the CEO of Qlik, has built the company with a service focus around a “we” Leadership Style.
My father had a particular view of service. You served your customers, your employees, your family, your community and your shareholders. He would employ people fresh out of jail to give them a second chance. He knew his staff and their families and helped them when they needed help. He knew what his customers wanted and needed and trusted his staff to deliver value. He led his business with integrity and authenticity. He was a highly respected and successful businessman. From his background in retail he told me if you do all of these things right “…the profit will come up through the floor.”
Lars Bjork agrees. He has led Qlik as CEO for the past ten years and has been there from its days as a tiny start-up in Sweden to become a world leader in business intelligence software. Qlik was purchased by a private equity firm in 2016 for $3 billion. It now has around 40,000 customers and offices in 26 countries. Bjork says “leadership, for me, is that you serve the team. And the team is the people who work for you.”
How does that operate in practice? Bjork describes it this way.
“I do a lot of town halls and video. People want authenticity, an unscripted sense of ‘this is how it is’. They don’t want to hear packaged BS. They can see that from a mile away. I try to be transparent and share a bit about my private life – because how am I going to learn stuff from people, how are they going to feel comfortable with me, if I don’t share anything?”
He also asks a lot of questions and listens intently to the answers. This has become formalized with a “listening forum”. This occurs where he brings a dozen people together from different sections. He can’t say anything for an hour. They give him feedback, and he just takes it in. He does not push back or dismiss it. This leadership style is one of authenticity and service.
In our current research involving interviews of customer centric leaders I find the most impressive and effective ones are authentic, service focused, and good questioners and listeners. It doesn’t mean they have no ego. They do, but they are essentially team players and do not let their egos dictate decisions. They often do have to make the tough decisions but they do it, like my father, with authenticity and with a “service” mindset.
Learn more about the power of a customer centric culture in our award winning book, the Customer Culture Imperative.
Posted in Authenticity, Case Study, CEOs, Cross-functional Collaboration, Customer Centric Culture, Customer Centric Leadership, Customer Centric Values, Customer-Centricity, Honesty, Market Culture in Action, transparency, Trust, Uncategorized
Tagged Authenticity, Customer Centric Leadership, Lars Bjork, Qlik
In my travels in recent weeks I have experienced two examples of how a customer-centric attitude and behavior produce memorable customer experiences. Both of these were in hotels in different countries.
In Rome my wife and I stayed at Hotel Corso 281. We planned to go south for a few days by train and wanted to leave a large case at the hotel and pick it up again on our way from the Amalfi coast via Rome to Venice. Even though there would only be a 45 minute time between our change of trains in Rome, Delia, the front office manager assured me that they would send a taxi with my bag to the station as soon as my train arrived in Rome. So we took the chance. When I nervously called the hotel on the morning of our journey and spoke to the hotel front desk a different person was fully aware of my situation. As we pulled into Rome station I called again and another front desk person was fully aware and organized a taxi to send the bag. When the taxi arrived at the station it had a large sign with my name in the side window and I gratefully took my bag. Soon after I received a call from Delia to tell me the taxi driver reported to her that the bag had been delivered. We made the train connection all because of a display of team collaboration embedded in the belief that the customer’s needs must be met. When next in Rome we are going back to stay at Corso 281.
In Dubai I checked in to the Rihab Rotana hotel after a 7 hour flight from London. The front office manager gave me his card and also the card of the other front office manager who was off duty. He assured me to call them any time if there was a problem or something they could do. This gentleman, Mazen, was gracious, attentive and carefully explained all hotel services. This manner of care could be seen from all staff in the hotel – from housekeeping to concierge to the gym and pool deck.. Soon after checking into my room a bowl of fruit was delivered. Each day in my week long stay I was greeted by the smile of Daryl, a young lady in the restaurant who seemed to be there for all seven days of my stay. She told me that their team of five often had to work long hours and 7 days because when the hotel was very busy they had to make sure all guests received a great experience. Sometimes at the end of the day even though she had already been there 12 hours her greeting and smile never diminished. I will go back and stay at Rotana in Dubai.
While these things are small for service people with the right attitude and attention to customer needs, they are huge for the customer.
Bottom line – I am an advocate of both these hotels, they stick in my mind, I will go back and I will recommend anyone that asks to try them as well.
Do you attract the right talent to your organization? People that focus on the reason their job exists? Does the leadership of your organization focus its attention on delivering a great experience?
You can learn more in our book the Customer Culture Imperative
Posted in Competitor Insight, Customer Centric Culture, Customer Centric Values, Customer Communications, Customer Experience, Customer Service, Empathy, Employee Engagement, Market Culture in Action, Trust, Uncategorized
Tagged customer culture, customer service in action