assume the average salary of employees in a given company is...
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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 employeeswho has a 10% annual rate of turnover, the costof turnovers is $7.5 million!
William Bliss
why bother?
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why bother?Kotter and Hesket
PERFORMANCEMEASURES
Revenue Growth
Stock Price Growth
Net Income Growth
STRONGADAPTIVE CULTURES
682%
901%
756%
LESSADAPTIVE CULTURES
166%
74%
1%
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what we knowSource: Harvard Business Review
The Employee-Customer/Profit ChainCustomer Value Prop.Employee Value Prop. Financial Value Prop.
return in assets
operatingmargin
revenue growth
attitudeabout the job
attitudeabout thecompany
employeebehavior
employeeretention
service
helpfulness
merchandise
value
customerimpression
customerretention
customerrecos
drivesdrives5 unit increase
employee attitude1.3 unit increase
customer impression0.5 % increaserevenue growth
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When you make your organization moreWomen-friendly,you make it more people friendly.
Source: Deloitte & Touche
why bother?
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What keeps an organization alive for 100 Years?
Change lines of business at least once!Focus on people, reallyKnow the value of cash in handHave tolerance at the margins
Arie De Geuss, The Living Company
why bother?
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brandis a “fabric of associations”
that lives on in customers’ minds
mental responsestimulus
• products/services
• experiences
• environment
• communications
brand!
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what is brand inside?
is the systemic developmentof the organization’s brand promise
brought to lifethrough the committed actionof every employee forevery customer experience
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what is brand outside?
is the sum of all the strategicactions you take to communicate
your brand promiseto your customers
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“be distinct or extinct”
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what we know
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what we knowMercer Research, Nov 2000
employee commitment and
capability have a significant,
quantifiable impact on the customerexperience
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what we knowMercer Research, Nov 2000
employee commitment and
capability have a significant,
quantifiable impact on the customerexperience, which in turn has a
major impact on brand equity andshareholder value.
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what we knowTom Peters Co. Research, March 2002
51% of employees said they do
not know what a brand is…
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what we knowTom Peters Co. Research, March 2002
51% of employees said they do
not know what a brand is…
15% said they understand theirfirm’s brand promise
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what we knowTom Peters Co. Research, March 2002
51% of employees said they do
not know what a brand is…
15% said they understand theirfirm’s brand promise
9% agree that they “live the brand”
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bi:bo scorecard 6 critical success criteria for any organization
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bi:bo framework 6 critical success criteria for any organization
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bi:bo scorecard
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bi:bo touchpoints
done correctly a brand can create a briefmoment when company and customerwalk in perfect step…
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bi:bo touchpointssuccess criteria for any organization
A touchpoint is any product, service,transaction, venue or experience where acustomer or employee receives a significantimpression (functional and emotional) ofyour brand.
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training
talent
reward systems
communication systems
environment
leadership
workforce
projects
bi:bo inside touchpointsthe employee experience
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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
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bi:bo touchpointsCoca-Cola case study
Coca-Cola Packaging Division
“Revitalization through Innovation”• create internal brand vision for packaging
• develop “leadership voice” and ability to sell newideas to stakeholders through “WOW! Projectstraining”
• employee brand training
“Without the tompeterscompany! I would have lost50% of my staff.” Jay Gouliard, VP PDD
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bi:bo touchpointsCoca-Cola case study
Coca-ColaCulture of Innovation!
WOW!™ ideas
• enhanced usability
• ownable
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bi:bo touchpointsCoca-Cola case study
Coca-ColaCulture of Innovation!
WOW!™ ideas
• reinforce valuable equities
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bi:bo alignment
“Aligning the workforce and the brandcreates a virtuous cycle of engagedcommitted employees who deliver whatcustomers want, leading to highercustomer satisfaction, spending, andimproved business results.”
Arthur Blank, Co-founder, Home Depot
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bi:bo alignmentsuccess criteria for any organization
Alignment occurs when internal forcesare in parallel (talking to each other) with theexternal messages so the employees aredelivering on those brand promises andthe systems, policies, and processes aresupporting that effort.
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bi:bo alignmentNAVAIR case study
Align 29,000 NAVAIR employees arounda unified brand vision to ensure highperformance in a volatile environment ofthe demands of war + downsizing.
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bi:bo alignmentNAVAIR case study
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Engage All 29,000 PeopleThrough their leaders
Show Up and Communicate Info Exchanges at all sites
CollaborateWith Exec Groups,
Ambassadors, Leaders atall Levels on current projects
ImbedThe Brand in the Work
Our Approach to Deployment
BUT We Must Address The Barriers!
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Work Assignments >
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WOW!Projects…Practical Breakthroughs
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Create/FastPrototype
Sell Implement Celebrate/Exit
HOW: WOW! Project Methodology
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Goals ⇒ Results
Warfighter Bill of Rights, ResponseCenters, Ambassadors created.
Improved support forImproved support forWarfighterWarfighter
29,000 people educated on their rolein providing Advanced Technologyin support of NCW – 90% of thosetrained reported “strongly agreeing”they could steward the brand.
Education and readiness toEducation and readiness tosupport Network Centricsupport Network CentricWarfareWarfare
CNO, other senior DOD leadersengaged proactively in planning for“future state”
Improved alignment withinImproved alignment withincommand, Navy, DODcommand, Navy, DOD
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bi:bo leadership
“Great brands require great leadershipto stay relevant.”
David Aaker
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bi:bo leadershipsuccess criteria for any organization
Leadership creates and inspires ashared vision, challenges the process,enables others to act, models the way,and encourages the heart!
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bi:bo leadershipLenscrafters case study
Build strong leadership to infuse brandvalues throughout the organization.
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Susan KnoblerLenscrafters
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bi:bo talent
“Talent = Brand”
Tom Peters
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bi:bo talentsuccess criteria for any organization
The pursuit of acquiring, developing andinspiring the best people to build yourbrand - people with the greatest skill,experience and commitment, aligned toachieve the organizations strategy.
Performance Ensembles/PSF’sSports Teams Jazz GroupsScientific Voyages Master ClassesThink Tanks Start Ups
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bi:bo talentBrooks Brothers case study
Utilize the talent of district and storemanagers to relaunch a venerable brandand drive sales of a new product line.
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Brooks BrothersNorth American Roll-Out
CampaignInternal Brand Launch
CorporateCommunications
RehearsalsShowcasing Talent
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Facilities Consulting Team WallOWP&P
Learning CommunitiesKnowledge
CommunitiesApprenticeshipsIntraprenuringPractice Fields
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Robin EllerthorpeOWP&P
Passionate about hisdiscipline
ReinventingArchitecture
Loves diversityDoesn’t wait for
permissionSpeaks/writes freely
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bi:bo execution
“No company can deliver on it’scommitments or adapt well to changeunless all leaders practice the disciplineof execution at all levels. Execution hasgot to be part of a company’s strategyand goals. It’s the missing link betweenaspirations and results.”
Larry Bossidy, Former Chairman, Honeywell Corp
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bi:bo executionsuccess criteria for any organization
Execution results in the long-termcommitment to ‘operationalizing’the brand, inside and outside theorganization - through people,technology, and communicationssystems and processes.
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• they focused on their values through the work• they gave people concrete tools to use• HR made the brand/culture a meaningful and
important cornerstone in the organization’shistory (what it’s like to work there….)
• they provided a strong business case for thebenefits of brand inside/cultural strength, toorganization and individuals
Hallmarks of Companies who SuccessfullyExecute Brand Inside
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bi:bo brand passion
“Only with a strong spirit at it’sfoundation can a company achieve astrong market position.”
Jesper Kunde
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bi:bo brand passionsuccess criteria for any organization
The most admired companies (and oftentimes most profitable) attract people whoare passionate about the brand. BrandPassion is an emotional connection and ahighly personal relationship with thebrand.
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Walking Flying in Your CustomersShoes
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“She insists on learning everydetail about her clients”
Wall Street Journal , 10-18-00
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Target Scooters
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John Christiansen, CharthouseLearning
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“We really want to work withyou.”
John Christensen to Julie Anixter
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So what?
Now what?
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What’s YOUR Scooter?
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why bother?financial impact of brand building
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Highest total return to shareholders attributed to alignedorganizations, excellent execution and processes, distinctive andcompelling 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%
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• 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 thebrand, the brand’s perceived quality, consumer association with thebrand and consumers loyalty to the brand.
why bother?EquiTrend
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An increase of customer loyalty of just 2% isequivalent to a 10% reduction in costs.
R. Passikoff
why bother?
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An increase of 5% in customer loyalty candeliver 95% greater profitability over thelifetime of that customer.
R. Passikoff
why bother?
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Over 50% of customers would be willing to paya 20 to 25% price premium to the brand that theyare most loyal to before they would switch to acompetitive brand.
Scott Davis
why bother?
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50% of customers are willing to try a newproduct from a preferred brand because of theimplied endorsement, credibility and trust.
Scott Davis
why bother?
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It takes 7 times the cost and effort to gain a newcustomer as it does to keep an existing customer.
R. Passikov
why bother?
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Leading Changemeans you have to be able to “hold” creative tension
To beAs is
• experiences
• environment
• communications
YourJourney
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For more info [email protected]
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