how many ways are there to tie your shoe laces? (6 eyes per side)

How many ways are there to tie

your shoe laces?(6 eyes per side)

Burkard Polster, Australian Mathematician

43,200!

“Changing Your Cultural

Thinking”

“Sharpening your saw”

Objectives for Today

• Understand the changes we faced

• Recognise need to change

• How we can all play a part in improving the customer experience

• Understand customer expectations and the impact of emotion

• Identify where we can improve as a team

• Recap on our values

• Recognise how we can improve our impression

• How to apply the magic recipe for success

• Assessing your team

• Make three personal commitments

Come With Us On

a Journey…

What The

Landscape Looks Like

The Business Landscape

• Further prolonged economic uncertainty– “We never learned this in university.

Everyone is lost.”• Increasing customer expectations• Less loyalty and more choice• Aggressive competition• Offerings very similar

– product, facilities, service levels• Shorter copy-cat timeframes• Cost of differentiation increasing• Pressure to reduce costs and improve

profitability• Focus on growth, market share and ‘bottom

line’

Employee Landscape

• Expect more than ‘just the salary’

– Glad to have a job though

• Expect to be valued as ‘individuals’

• Want to be involved and to contribute

• Increasingly seek good employers and

cultures

• Conscious about employee rights

• Critical of poor management

• More likely to speak out than ever before

… employees vote with their feet.

Customer Landscape

• Expect more than ‘just the product’

• Expect to be respected as an ‘individual’

• Seeking the ‘feel good’ factor

• Highly educated about price, ‘VFM’ and ‘rights’

• Less forgiving and more critical

• Social media savvy Face Book, Twitter, LinkedIn

• Increasingly experience bland levels of service

• Increasingly buy ‘brand’ and ‘differentiation’

… customers vote with their feet (and increasingly their mouse clicks.)

The Customer’s Experience.

What does that really mean?

The Customer Experience Defined

"The customer experience is the combination of your organisation's tangible performance together with the senses these stimulate and the consequential emotions these trigger in the customer, all instinctively assessed against the customer's own expectations across all the interactions the customer has with your organisation.”

or put another way...

The Customer Experience Defined

“Customer experience is the internal response of an individual to their interactions with an organisation's products, people, processes and environments.”

or put another way...

The Customer Experience Defined

“It's how you're making your

customers feel whenever and however they

deal with you.”

Customer Expectations

PHYSICAL NEEDS AND EXPECTATIONS

• Great course• Safe rides• Clean rooms• Healthy

animals• Efficient

process• Clean• Hot food• Prompt

service

EMOTIONAL NEEDS AND EXPECTATIONS

• Valued• Cared for• Interested in• Happy• Pleased• Satisfied• Confident• Relaxed• Engaged

“How are we

making

them feel?”

Working as a team

Our ValuesWhat are the Woburn values?

Our Values• Integrity• Innovation•Community• Heritage• Excellence

Work is theatre

The magic recipe for a great experience

Assessing your team

Change can be achieved through commitment or compliance

Compliance"I have to do it this new way"

Reaction"I will react to this change -if I must"

Testing"I must absorb this change

Negative perception"I feel threatened by this change"

Positive perception"I see the opportunity in this change"

Engagement"I see the implications for me / us"

Understanding"I know why and what will change

Awareness"I am being told about something"

Testing"I will put myself at stake for this change"

Action"I will act to achieve this change"

Commitment"I want to do it this new way"

SPECTATORS PLAYERS

WALKING DEAD CYNICS

Low High

Low

Hig

h

EnergyA

ttit

ude

Moving the tanker

You Can’t Light a Fire with

a Damp Match!

“What we are and who we become is determined by those who love us.”

As a child…..

“What we are and who we become is determined by those who lead us.”

As a business…..

Management’s Responsibilitydirective v supportive

Front line staff

Supervisors

Managers

HOB

Customers

Creating Vision & Values

Front line staff

Supervisors

Managers

HOB

Customers

Supporting & Responsive

“Your Customer Experience”

“Your Customer Experience”

You Can’t Light a Fire with

a Damp Match!

“ to succeed you have to believe in something with such a passion that it becomes a

reality ”

Customer Capture and Retentionworking on your bottom lines

• Senior Executive level to create and communicate vision & values

– Strong leadership required

• Dept. Manager level to create processes, team alignment and commitment and cascade the vision

– Strong leadership required• Front line level to create

expertise and emotional connection through brand oriented action and customer experiences

Connecting the Vision

• HOB/CEO’s vision gives organisation ‘belief’ but often disconnected from the Customer Experience

• Customer Experience reflects behaviour of your people

• Behaviour is ‘conditioned’ by commitment and capability of managers

the RED LINE‘line of sight’

Customers

Empowerment

Not all change initiatives succeed

The Reality About Change Programmes

1. Too complex.2. Failing to build a substantial

coalition.3. Not understanding the need for a

clear vision.4. Failing to clearly communicate the

vision.5. Permitting roadblocks against the

vision.6. Not planning for short term results

and not realising them.7. Declaring victory too soon.8. Failure to anchor changes in

corporate culture.

70% of Change

Processes Don't

Succeed

70% of Change

Processes Don't

Succeed

Professor John Kotter, Harvard Business School

The Eight Phases for Change

Establish a Sense of Urgency – the context of why

Professor John Kotter, Harvard Business School

1

2

3

4

5

6

7

8

Create a Coalition – champions for the cause

Develop a Clear Vision – where are you going, what will it look like?Share the Vision – to all audiences across the business

Empower People to Clear Obstacles – get out of their way

Secure Short-Term Wins – celebrate success, look for the quick wins

Consolidate and Keep Moving – keep the momentum going

Anchor the Change – consolidate successes

Align every facetto the customer experience

The customer journey

The voice of the customer

has to be heard

Engage With Your Customers“ the more you engage with

customers the clearer things become and the easier it is to determine what you should

be doing” John Russell, President, Harley-Davidson Europe

• BAIN Consulting, USA

• 1999 -2002 Interviewed over 130,000

customers, 400 companies, 28 industries

• Searched to find a clear, tangible,

unambiguous measurement that linked

customers experience with growth

Loyalty and Business Growththe research

“Loyalty is the willingness of someone - a customer, an employee, a friend - to make an investment or personal sacrifice in order to strengthen a relationship. For a customer, that can mean sticking with a supplier who treats him well and gives him good value in the long term even if the supplier does not offer the best price in a particular transaction.”

• Loyalty is more than simply repeat purchase• Loyalty is a state of mind, attitudinal as well as

behavioural

“Loyalty is the willingness of someone - a customer, an employee, a friend - to make an investment or personal sacrifice in order to strengthen a relationship. For a customer, that can mean sticking with a supplier who treats him well and gives him good value in the long term even if the supplier does not offer the best price in a particular transaction.”

Loyalty and Business Growthdefinition of loyalty

Referrals

Reduced Costs

Price Premium

Increased Purchases

Base Profit

source: zero defections, harvard business review

Average Length of Customer Relationship (in Years)

0 1 2 3 4 5 6 70 1 2 3 4 5 6 7

Cu

sto

mer

Pro

fita

bilit

yWhy ‘customer relationship’ … the value of customer loyalty and increased profit

Loyal Customers

• Stay Longer• Buy More• Cost Less• Pay More• Tell Others

Loyal Customers

• Stay Longer• Buy More• Cost Less• Pay More• Tell Others

A Single Question?

“How likely are you to recommend us to a friend or

colleague?”

0 = Extremely unlikely5 = Neutral10 = Extremely likely

“How Likely Are You to Recommend Us to a Friend or Colleague?”

PROMOTERS %

DETRACTORS %

9 - 10

0 - 6

7 - 8

Net Promoter Score %

“All companies should ask their customers the Net Promoter question.”

Don’t Just Take Their Word For ItHere the views of others

“All companies should ask their customers the Net Promoter question.”

London School of Economics supports Net Promoter Findings

Word of Mouth and Growth in the UK

“By finding an empirical link between word of mouth

recommendations and sales performance among US

companies, the Reichheld study answered two

thorny business questions: How do you measure

word of mouth? (Answer: the Net-Promoter score).

And how do you measure the effect of word of

mouth? (Answer: sales uplift).”

Dr Paul Marsden,

London School of Economics

Report Published 05 September 2005

Advocacy Drives Growth

Customer Advocacy Drives UK Business Growth

“Word of mouth was found to predict sales growth for retail banks, car manufacturers, mobile phone networks and supermarkets in the UK.”

“We conclude by suggesting that the Net Promoter score as a measure of word of mouth advocacy may be useful not only in predicting sales growth, but also in predicting share performance and employee productivity.

Specifically we propose that three simple questions could predict overall business performance;• Likelihood that customers would recommend a company or brand to friends or colleagues.

Net Promoter score as a predictor of sales growth.• Likelihood that investors would recommend investing in a company to friends or colleagues.

Net Promoter score as a predictor of share performance.• Likelihood that employees would recommend working for their company to friends or

colleagues. Net Promoter score as a predictor of productivity.”

Dr Paul Marsden London School of EconomicsReport Published 05 September

2005Advocacy Drives Growth

Customer Advocacy Drives UK Business Growth

London School of EconomicsReport Published 05 September

2005Advocacy Drives Growth

Customer Advocacy Drives UK Business Growth

“In terms of percentage growth, a 7 point increase in word of mouth advocacy (Net-Promoter score)correlated with a 1% increase in growth.”

“Every 2% reduction in negative word of mouth correlated to just under 1% growth.”

Companies with relatively high Net-Promoter scores (>0), and relatively low negative word of mouth rates (<25%), grew 4 times as fast in 2011 than companies with low net-promoter scores (<0) and high negativeword of mouth (>25%).

Your Community Tools

Ideas for keeping

employees engaged

Engaging Employees Involves

• Keeping them informed of progress and plans, • Celebrating successes• Seeking their opinions• Encouraging ideas generation and business improvement• Running competitions• Asking question• Motivating and inspiring individuals in their teams• Communicating, giving and receiving constructive feedback,

delegation, and encouraging support.• Enhanced through briefings, suggestion schemes,

performance reviews and reward systems, along with day to day management processes such as identifying what motivates specific individuals, spotting people doing things well, and ‘saying thank you’.

Questions for You

• Do you have a vision?• Are employees ‘excited’ by your vision?• Is it communicated in a meaningful and

relevant way at every opportunity?• Is it more than a poster in reception or a

set of financial figures?• Are people aware of your progress

towards the vision?• Does it drive your dealership and

departments?• Is it revisited, reviewed and reenergised

by your leaders regularly?

Questions Employees Will Ask

• How is this ‘vision’ relevant to me?• What actually do you want me to do?• How will I be measured?• What rewards/consequences will I face?• What tools and support are available?• What’s in it for me?• How are we doing?• When will we get their?• What are the milestones?

Our Values• Integrity• Innovation•Community• Heritage• Excellence

Creating the Winning Culture

Creating the culture you want starts with assessing the current culture and identifying which aspects of it are we happy/unhappy with. The next step is to establish the culture you want. This often involves spelling out what we want our organisation to be like (it’s an integral element of ‘the vision’).

Creating the culture you want can involve a number of key elements:

• Publishing and living a set of core values• Ensuring systems and procedures support the

culture we want• Establish reward systems that reinforce it• Identifying and championing role models

throughout the organisation

Values can Help:

• Create the culture you want• Provide clear guidelines for acceptable

and non acceptable behaviour• Reduce game playing and confusion• Reinforce and support the external image

of the organisation• Organisations that truly value their

values, use them in the day to day management, recruitment and rewarding of their people

Culture Check

• Are you happy with your organisation’s culture?

• Do your people act in line with your preferred behaviours and values?

• Do your reward systems, performance management and operational procedures reinforce and help promote your preferred behaviours

• and values?• Does your organisation ‘Celebrate its

Champions’ and ‘Challenge its Challengers’?

• Do your leaders act as role models and positively reinforce your preferred culture?