do customers create culture?

I do most of my grocery shopping at two stores. [How’s that for a nail-biting edge of the seat start to a blog?] They are probably less than five miles apart, yet worlds different and these two stores have me wondering about company culture.

There is a lot of talk about company culture and no shortage of ideas and opinions on what it is, how you create it, why it’s important, where, when, etc. For all the discussion, I’ve never come across much on customers’ effect on culture, yet I suspect that they are a very large part of the equation.

It would be easy to argue that there is a chicken-and-egg effect where the culture, appearance, and products/services of a business attracts a certain type of customer, which reinforces the culture. Brew pubs, sports bars, and biker bars all have basically the same product, yet attract very different customers and those customers expect and uphold the culture of the business. Different types of  businesses attract different customers (duh!), but that’s not the case here.

These two stores seem very similar – both are superstores, about the same size, and owned by the same company. Both are the only grocery stores in their areas and the quality and friendliness of the employees is very similar. Where the stores differ is the attitudes of the customers.

Both stores are generally crowded and have narrow aisles, making getting around difficult, especially during peak hours. At one store, there is a relaxed it’s-crowded-but-we’re-all-in-it-together vibe. Customers are friendly, polite, and patient with each other. At the other store it’s a get-the-hell-out-of-my-war-you-idiot atmosphere. Customers are impatient, frustrated, and irritated with each other. It’s a very noticeable difference.

Perhaps this shouldn’t be surprising. Different departments or locations with the same company can have completely different cultures. Just changing one person on a team can have a noticeable effect. So why wouldn’t a group of different customers also create a different vibe?

We tend to think of it as a one-way relationship: we create a culture that will attract and support our target customers. What if it’s two-way and our customers also shape and influence the company?

Does that mean we need more or less effort on culture? Does that mean we should be seeking the customer’s thoughts more (and not in satisfaction surveys)? Does it mean nothing and we should stop worrying about it and get back to work?

What does it mean?

Your thoughts?

 

who do you think you are?

In the business world authenticity and transparency are getting more and more attention. As customers, employees, friends, and spouses, us humans don’t like fake, hypocritical deception. We want the people we deal with to be straight with us, we want to know that what we see is what we get. We want to be around people who are real and comfortable in their own skin.

Spin that around, now. The people who deal with us want to know that we are authentic, that they can trust that we are who we present ourselves to be. They want us to like who we are.

SCREEEEEECCCCHHHHHHH…. and that’s where it grinds to a halt. We spend so much or our lives  learning how we need to be that we never learn who we are. How can we authentically be who we are if we don’t know who that is?

WHO ARE YOU? Chances are you don’t know. I can’t tell you who you are, but I can tell you what you’re not.

You are not your nationality. You are a citizen of your country, but it isn’t you. Move to another country and you are still you.

You are not your job. Your job exists independent of YOU. If you leave the company, your job will still exist – it’ll just be done by someone else. If your job gets eliminated, you don’t disappear.

You are not your accomplishments. Trophies and certificates acknowledge and authenticate what you’ve done, but not who you are. Who you are does not change if you get a degree, renew a certification, or win the softball tournament.

You are not your material goods. Although we often try to define ourselves by aligning ourselves with the brand image of the products we buy, it’s not you. You are not Red Bull Under Armor Levi’s Sprawling McMansion. Your house? Your car? Oversized TV? Storage shed and garage full of stuff you never look and but means too much to get rid of? It might be a reflection of your taste or priorities or income, but none of it defines you as a person.

You are not your income. Yawn.

You are not your family, friends, or relationships. I hope you’re a great friend, fantastic partner, and even better parent, but that’s not who you are.

You are not who your parents, teachers, bosses, and friends said you are. Their opinions are not you.

You are not your favorite sports teams, musicians, authors, TV shows, or movies.

You are not your hobbies.

You are not your manners or social niceties.

You are not you clothes or haircut.

You are not your “brand”.

Notice the pattern. When we strip away all the things we use to define ourselves, we still exist. Underneath all the layers we pile on, all the costumes we wear, all the things we distract ourselves with, is our true self. Tear it all away and we are what’s left: our hopes, dreams, fears, insecurities, and humanity.

WHO ARE YOU? What are your hopes and dreams and fears and insecurities? What are your gifts and talents? What is the humanness that propels you and compels you and makes you laugh and cry and shout and tremble? Only you know, only you can define it, and only you can be real about it.

Can you be real about who you are? Can I?

Your thoughts?

flashback friday: good enough isn’t, but great enough is

[This was originally posted on October 14, 2011]

I’m a big believer in the concept that good enough isn’t. Hitting the bare minimums isn’t success, it’s temporary survival. Sadly, most companies seem to struggle to reach even the level of good enough. They shoot for good enough customer service, good enough prices, good enough hiring policies, good enough management development, good enough training, etc. The problem is that, at the very theoretical best, it will only be good enough. In the real world, a bunch of attempts at good enough added together tends to equal not good enough. Aiming for “good enough” seems to get us to “doesn’t completely suck”.

In fact, I’d like to propose a real world rating scale. Feel free to use it for performance appraisals, evaluating processes, due diligence for investments, whatever you need a rating scale for. Here it is:

  1. Sucks
  2. Doesn’t completely suck
  3. Good enough
  4. Great enough
  5. Phenomenal, but exceeds the point of diminishing returns
On this scale, there is only one rating worth hitting: “Great enough.” Although “Phenomenal” sounds like a good thing, there comes a point in any quality improvement where the costs/effort/resources required for additional improvement become an exponential curve while improvements move along a very flat linear curve. In other words, you’re spending tons of resources for ounces of improvement. This is perfectionism getting in it’s own way.
But, “great enough”… Getting to great enough requires a completely different set of questions, decisions, actions than it takes to be merely good enough. Consider this: getting your life to good enough is easy. You’re probably already there. But what would having a great enough life look like and what would it take to get it there?
How freakin’ cool would it be to work for a company that focused on doing everything great enough? How incredible would it be to know that all your efforts at work were consistently great enough? Who wouldn’t sing the praises of a company that only hired people who were great enough?
I’ll give you tonight to mull it over. Tomorrow morning, what are you going to do to start kicking butt and creating great enough relationships with your friends and family? What are you going to do to create great enough health? To start getting your finances into great enough shape? Come Monday morning, what are you going to do to take your team to great enough? If you’re in HR, what are you going to do to create great enough selection and onboarding processes? To help the managers you serve to become great enough leaders? To create a great enough company culture?
Great enough. Love it!

 

feelings matter: how do you feel about HR?

Yesterday, I wrote: How the humans who are your (internal or external) customers FEEL about your products and services is much, much more important than what they THINK. [This is the single most important line I have written in this blog ever. Period. Think about it. Internalize it. Apply it to your job.]

I wrote it, but didn’t invent it. Much smarter folk than I have demonstrated this time and again, but it’s pretty easy to see in so many places. Advertisers provide just enough facts to let us think we’re being rational, but the images and ad copy focus on generating feelings. They scream: this product will make you feel sexy, young, in control, free, knowledgeable, successful, organized, powerful, fashionable, desirable, loved, safe, etc. etc. For a fun assignment, compare the feelings generated by car ads on ESPN or Spike with those on the Hallmark Channel.

Most recently, I saw this think vs feel distinction come up an Alexander Kjerulf’s “Creating Happiness at Work” presentation from Meaning 2012. It’s well worth watching and ties into employee engagement and the difference between how we feel about our jobs and how we think about our jobs.

All of this raises a great question: how do people feel about HR? When employees and managers think about their HR department, what is their gut level feeling? Anxiety? Dread? Or do they feel safe, secure, excited, supported? Is going to HR a dreadful walk to the principal’s office or an exciting visit to a place where stuff gets done and problems get solved? Sure, it depends on why you’re going to HR, so let me turn it around a little. When someone from HR is walking through the building do people’s stomachs tighten up or are they happy to see them?

How do people feel about the products and services your HR team provides? Resentful? Frustrated? Thankful? Confident? Uneasy? Awkward? Joyful? Empowered? Whether we pay attention to it or not, people have an emotional connection to their jobs, co-workers, boss, and even their HR department. That feeling might be negative, neutral, or positive.

Feelings matter. We don’t spend extra money, don’t create forums, and don’t promote products we feel negative or neutral about. When looking at customer satisfaction there is a huge gap between “it meets my needs” and “I’m so passionate about this product that I insist all my friends try it and spend my valuable spare time connecting with others who use this product”. That’s the gap between thinking and feeling.

So, back to HR. How do people feel about your HR department? What is their gut-level connection? If it was outsourced tomorrow, would employees even notice? Would they sing, “Ding dong, the witch is dead” and throw a massive celebration, or would they fight to keep it?

HR connects with it’s customers over money, family, security, future. All of those are powerful, powerful emotional trigger points. How can HR build stronger positive emotional connections to our customers? How can we not just meet the needs, but delight those we serve?

the hidden in plain sight competitive advantage

Business is conducted through humans, by humans, for humans. Humans invent, create, produce, market, sell goods and services to other humans. Business success is determined by how well the humans at the company meet the needs of the humans who are buying compared to the other options available.

Oversimplified, but reasonable enough. If I need a new mountain bike, the bicycle company that best meets my needs for price vs quality vs value vs features vs warranty vs availability vs etc is the one that I will give money to. If there are enough people with the same needs then that business will do better than their competition. Simple enough, no?

Well, no.

How the humans who are your (internal or external) customers FEEL about your products and services is much, much more important than what they THINK. [This is the single most significant line I have written in this blog ever. Period. Think about it. Internalize it. Apply it to your job.]

Us humans are emotional, illogical, and irrational. We are pleasure seeking pain avoiders. We almost always act in what we believe is our best interest or will at least what will make us happy in the moment. We almost always act in ways that support our self-identity and often put who we think we are ahead of our long-term best interests. Us humans are individualistic and driven by group dynamics. We want to stand out by fitting in and be just as unique as everyone else. Status matters – a lot – and we put considerable effort into creating and maintaining our position in our world. We cling to ritual and tradition more than progress and reason. We fear change yet get bored easily and constantly seek new and different. In short, we are a gloriously gooey, sloppy, contradictory, confusing, paradox.

Business gets done through, by, and for humans. If that’s true, then our skills for understanding the driving psychology of ourselves and others, communicating our needs and concerns while understanding and empathizing with those of  others, and leading and influencing  others (and ourselves) are paramount to long-term success. Those ill named “soft” skills are foundational to business success, individual success, and human success, yet are some of the least appreciated, studied, or taught skills.

If we were consistently rational and logical, understanding ourselves and others would be PRIORITY #1 for every individual, community, organization, and business. It’s not. There is a competitive advantage to be found wherever there is a gap between what’s available and what’s needed.

It’s worth repeating: How the humans who are your (internal or external) customers FEEL about your products and services is much, much more important than what they THINK.

Use that information to your advantage.

 

unshrink (book review)

Our deepest fear is not that we are inadequate. Our deepest fear is that we are powerful beyond measure. It is our light, not our darkness that most frightens us. We ask ourselves, ‘Who am I to be brilliant, gorgeous, talented, and fabulous?’ Actually, who are you not to be? ~ Marianne Williamson

 

I cannot tell you that Unshrink is the most important book you’ll read this year. I can tell you that it’s one of the most important books I read this year. It expresses, challenges, and expands thoughts and ideas about unbinding and unleashing humans and business and allowing us to expand and grow beyond our current constraining beliefs.

We are limited. Reduced. Operating so far below our potential because of the myths that we have believed, accepted, and perpetuated. We don’t need to expand our potential, we need to shed the myths that keep us shrunken and small so we can expand into the enormous potential awaiting us. We have the tremendous opportunity (obligation?) to unshrink ourselves, others, business, and the world.

That’s the premise of Unshrink by Max McKeown and Philip Whiteley. First published in 2002, I just came across it this year and have read it twice so far. It’s no secret that I’m an enthusiastic fan of Max McKeown – his books are consistently thought provoking, accessible, practical, and enjoyable to read – and this book is no different. At only 116 pages (133 with notes), Unshrink is also a quick read – assuming you can get through it without filling the margins with notes, which I couldn’t.

Why, though? Why unshrink? At the individual level, it’s painful to see (or be) someone hobbling themselves with the shackles of misguided myths about who they are and who they should be. Us humans are so amazing yet consistently play so small. Our potential is there yet we ignore it, dispute it, deny it.

Now expand that out. Businesses, communities, and countries are made up of individuals. When individuals are constrained below their potential so are the groups they are a part of. Businesses are less competitive and less profitable. Communities are more dysfunctional, less likely to attract newcomers. Countries, fueled by the soundness of communities and commerce, are likewise as restrained, hobbled, and shrunk as the individuals.

We often confuse short term spikes in performance measures with actual sustainable results. We think in terms of all or nothing. If a little of something is good, then an extreme amount must be extremely good. Yet, life consistently shows that few things are all or nothing. There is always a tradeoff based on points of diminishing returns.

The authors focus on replacing seven common, deep-seated myths with guiding principles. The myths are so familiar and entrenched that they are generally unquestioned as common sense. Yet, they are not common sense and rarely stand up to the light of real-world outcomes. The myths may have had truth in them at one time or been useful in a limited capacity, but have become dangerous when pushed to the all or nothing extremes. Better than an unquestioned myth is an adaptable principle.

Without giving too much away, the myth of “you are what you do” becomes the principle “you are what you can become”. It sounds like such a small shift, but is key to unshrinking ourselves. The myth of “work always comes first” is replaced with the real-world observable principle “life always comes first”. Holding to the extremes of the myths shrinks us and keeps us shrunk. The principles enable us to unshrink and expand.

Common management theories are driven by the myth that “organizations are machines.” Under this myth, people become easily and equally replaceable cogs, gears, and parts. Leading with this belief means stripping out our humanness, our individual strengths and weaknesses, our passions, and all the things that make us unique in order to make us conform into parts that really are the same. This comes at tremendous cost at both the individual and organizational level.

Replacing that horrible myth with the more accurate principle that “the organization is a community”. Thinking about it as a community means understanding that our differences can be important and valuable, each person’s contributions are unique, and each member of the community is interdependent with – not separate from – every other member. False rigidity is replaced with organic fluidity. The illusion of control is replaced with the power of influence. Machines are built, but communities are fostered. Machines are static and soon outdated; communities dynamic and ever changing and evolving. Machines break down, yet communities adapt.

There is much more. The authors delve into four other myths and principles aimed at unshrinking ourselves, others, and our businesses. All are worth more time and attention that I can offer here.

This book is for those who see that we operate below our potential, who are discouraged by the artificial separation between people and business, who imagine and hope for better. The authors conclude: We have been brought up to believe that there is always a trade-off or a choice between doing that which is good and that which leads to success. Such an assumption is wrong, and this is a tremendously liberating realization.

Your thoughts?

 

flashback friday: the world’s still shrinking

[This was originally posted on February 14, 2012 and seemed like a fitting flashback for Black Friday.]

More and more we are playing on a global scale. Even when buying from the shop on the corner, there’s nothing to prevent that corner from being in a different state, country, or hemisphere.

With a smart phone in hand consumers can quickly and easily compare prices while in the store. Love the product, but hesitant on the price? A quick picture of the barcode will turn up the best prices available. I’ve recently been seeing concern that people will use local stores to find the perfect item, size, etc. and then order from elsewhere. This has always happened, it’s just easier than ever now.

I recently upgraded the brakes on my mountain bike. I purchased an American brand of brakes (buy American!) made in Taiwan (buy American?) from a store in the UK (wait a minute…). This was the first time I’d purchased from a store outside the country, but I believe we’ll be seeing more and more of it. There were no currency issues  –  their website showed prices in US Dollars based on the current exchange rate and the credit card works everywhere. Unlike the big box store that made it seem like a major hassle to order an out of stock laptop they were running a special on, this store made it as easy as possible to purchase. Finally, on top of a great price, they shipped for free and it only took a week to get it once it shipped.

Yes, there are downsides. It would be a pain if I had to return anything, it took a little longer to get than if I’d ordered from somewhere in the States (in fairness, the holidays probably slowed things down a bit), and I’m not supporting a local business (but then, I still wouldn’t be if I’d ordered from an internet retailer in the US).

Would I purchase from them again? Probably. I enjoy variety and having access to quality brands that are uncommon in the US. I’m amused by the idea of shopping in a foreign store. More important, they are getting it right. Even five years ago it would have been a real pain to order internationally. Today it’s as easy as any internet purchase. Where other businesses would shy away from international business – dealing with currency, taxes, shipping, and customs on top of long-distance customer service – this business decided to become the largest internet bicycle retailer. They have the volume to offer better pricing and invested in the effort to sort the customer service side of things.

This isn’t about bicycle parts, foreign stores, or my desire to be a little quirky. This is where the world is heading. Competing on price is difficult because there is always someone cheaper somewhere. For most businesses, especially local ones, the differentiator is really understanding the customers’ needs, service, follow-up, convenience, a cool vibe or good feeling, great people, extensive knowledge, problem solving focus, etc.

Your business is now competing with every other business on the planet. You probably won’t win on price (though you do need to be in the ballpark), but what makes your business stand out is simply: 1) how easy and pleasant is it to shop and purchase from you; and 2) how good are your people at solving the customer’s problems? It all comes down to processes and people. What is your business investing in?

 

make it easy

Doug Shaw over at Stop Doing Dumb Things to Customers ran a post yesterday called “A Little Enthusiasm…” about his frustrations with businesses that didn’t seem to care when he was trying to pay them. It clearly struck a nerve with folks and generated plenty of comments as people joined in and shared similar frustrations.

It’s a shrinking world and the consumer can buy from almost anywhere. I discussed this back in February after purchasing mountain bike parts from a shop in the UK.

We all know the world is getting smaller, so it’s interesting how many businesses haven’t gotten the message yet. My wife and I both purchased cars in the past couple of months and had very different experiences. The dealer I bought from did ok, but was still stuck in the mindset that their cars are somehow special. I live within three hours of two of the biggest metropolitan areas in the US – no car is so unique that I can’t find it sitting on a lot relatively close or have it ordered in. When my wife was looking, they irritated her so much she kept right on looking.

My wife eventually purchased from a small town car dealer about an hour away. Here’s what they did right: they were patient as she test drove at least six cars, they were low pressure, they called back when they said they would, and when she told them that it would be several days before she could return to complete the deal they brought the car to her with all the correct paperwork including a generous trade-in on her old car made sight unseen. She signed some papers, swapped cars, and was on with her life in less than 30 minutes. They made the deal happen by making it as simple as possible for her to buy.

But wait, there’s more… My wife’s car is the same brand as mine. Guess where my car’s getting serviced from now on? So, my dealer screwed up selling to a RETURN customer, lost out on a SECOND sale, and lost out on all FUTURE maintenance/service business (where the profit margins are much higher than in car sales).

Businesses scream and yell for innovation, yet ignore that some of the most innovative products and services simply make it easy to buy and make it easy to pay. Strive for the example set by Amazon.com. Intuitive site, one click purchasing. It doesn’t get easier.

HR spin

How easy is it for HR’s customers to complete transactions? How simple and painless is it to submit an application? How easy is it for hiring managers to understand the process and have all necessary paperwork in hand? Do document instructions make sense? Etc. etc. etc.

If your HR department’s customers had to pay money for HR’s products and services, would they? Could they? Would your HR department be the vendor of choice or would your customers get frustrated and go elsewhere?

don’t wish it were easier

“It seems like every time we start to get caught up, something happens. If only we could get a good year or two, then we could get ahead.” I’ve heard statements like this from several leaders recently. Although I understand and empathize with the uncertainty and pain and fear they are wrestling with, I am left thinking, “so what?”

Worrying about all the outside factors causing me to lose will ultimately cause me to lose for several reasons:

1. “If onlys…” are a distraction. It’s a drain to put time, emotion, and energy into worrying about things I can’t control, or even influence. The economy, conflicts around the world, the government, the weather, changing social norms, shifting demographics, etc. are what they are. If I can change it, change it. If I can influence it, influence it. Otherwise, I can only accept it and move on OR focus on what I need to change about myself to better deal with the circumstances.

2. Regardless of where I am today, this is the only starting point I have. Things are not going to suddenly be different and the world doesn’t owe me anything. That said, I have easy access to clean water, food, shelter, medical care, and transportation. I can call up an aeon’s worth of information instantly and communicate globally on my computer. There is due process of law, minimal corruption, free education, guaranteed human rights and individual freedoms, and a democratic system that seems to work ok. People tell me how miserable the economy is, but someone is buying all those smart phones and tablet computers. Perfect? Not a bit. But I don’t have to look back too far in time or too far across a map to realize just how good I (and anyone reading this) have it. Life may get scary, uncertain, and overwhelming, but if I had to choose a place and time to be at today, I could do much, much worse.

3. If the world were easier for me it would also be easier for my competition so I wouldn’t be any further ahead. Sure, it’s easier to run downhill, but if we’re all running downhill, so what?. If you’ve ever been an endurance athlete, there is a state of mind where you take solace in knowing that if it’s difficult for you and you’re hurting, it’s at least as bad for your competition. Some even see the difficulty as a source of competitive advantage and look forward to the brutal courses and bad weather. They know that many of their competition will have mentally given up even before the start. So, as I look at my life, career, and business today, I can join in all the worry and complaining or I can accept that it’s difficult, appreciate the challenge, and smile every time I hear leaders from other companies complain because I know they are believing their own excuses and mentally handing the race to me. The worse they think they have it, the easier they make it for me.

4. I can complain about the challenges, situations, and general state of life OR I can figure out who I need to be and the skills I need to develop to get where I want to go GIVEN the challenges, situations, and general state of life.

I’m going to wrap up today with my favorite quote from Jim Rohn:

Don’t wish it were easier; wish you were better. Don’t wish for less problems; wish for more skills. Don’t wish for less challenges; wish for more wisdom. 

Your thoughts?