• Skip to main content
  • Skip to primary sidebar

Mike Hohnen

Coaching for personal growth, change and development

  • ABOUT
  • SERVICES
  • LIBRARY
  • COURSES
  • LOGIN
  • BLOG

Design

Culture is the foundation of your employee experience.

April 13, 2022By Mike Hohnen

The holy grail of Service Design is the much-talked customer experience, but as I have tried to argue in the past few blog posts, if you just paste the elements of Service Design thinking over a terrible employee experience, you are just spray-painting your rusty car in the hope that no one will really notice. Once you hit a bump, the mudguard will still come off.

Culture evolves over time. Sometimes, it just gets better and better but very often it just slowly deteriorates.

If you have ever been part of a start-up or a hotel or restaurant opening, you know what I am talking about. We started out with fantastic intentions and this one-for-all and all-for-one spirit and…

Well then something just happened.

What happened is nothing.

Nothing… in the sense that nobody actively did anything to maintain the culture. Just think of any type of strong culture that you are part of or have been part of.  What keeps the culture alive are rituals, conversations and most importantly, someone who calls it when we step outside of boundaries of the culture.

But in our very busy day-to-day lives, we are typically always working on the systems and the behaviour, creating new processes, initiating training programs, all of the tangible stuff. We forget that we need to maintain and reinforce the culture, and maybe that is the most important job of all.

“Our culture is how we work together as employees to serve our members and grow. Our culture has been instrumental to our success and we keep improving it; our culture helps us attract and retain stunning colleagues; our culture makes working here more satisfying”
– Netflix

What does it take to maintain or even correct the current culture?

Culture does not emerge out of thin air. Culture is the sum of our action, behaviours and conversations.

What we do and how we do it is our culture.

So we are already working on it but possibly not fully aware of how what we do influences the culture.

Don’t confuse action with movement

Great cultures are characterized by their bias-to-action, including taking corrective actions when it is needed. What is typical about rotten cultures is that nobody takes action when it is obviously called for; they do nothing and slowly the culture starts to disintegrate or become toxic. The classic dilemma here is always the brilliant jerks. Bad cultures tolerate them. By tolerating the jerks, leadership shows what their true values are.

In my experience, bad managers are not so often bad because of what they do, it is what they don’t do that makes them bad. There is no action when it is called for.

Do as I say, not as I do!

Some managers think that is a great joke. But it is a terrible thing to say. If you are a manager, you are always under observation. People observe you in order to try and understand their future. They are searching for clues as to what is going to happen and what is important. They don’t pay attention to what you say, they watch your behaviour. Who do you talk to? What meetings do you attend? What projects are you interested in? How you do what you do makes up the clues they use to navigate by.

Many organisations try to regulate behaviour through rules. As time goes, they grow and add more people. Obviously from time to time, somebody does something that is not acceptable and they add a new rule for everybody.  The weaker the culture, the more rules they add. In a strong culture, there is very little need for rules because it is easy for people to work out for themselves what is the right thing to do. And if someone makes a wrong judgement then we have a chat about it to help them see why this is not part of how we do things around here.

Change the conversation and you change the culture.

We become what we talk about. Our conversations make up the glue of our relationships but they also weave the fabric of our culture. If we are always trying to work out who to blame or whose fault something is then we become a drama culture. On the other hand, if we are always asking “What can we do about this?”, we create a culture that focuses on opportunities and possibilities. In the end, there is a world of difference in productivity and engagement.

But it’s not just the subject of our conversations that shape the culture, it is also the quality and the frequency. Solid cultures typically have strong, candid and frequent conversations with each other. Robust feedback is considered essential to healthy relationships. Wishy-washy performance reviews once a year are not part of the fabric of strong cultures

In toxic cultures, people don’t talk to each other about what really matters. They are constantly trying to protect themselves and play cover up. And endless dance in the drama triangle.

No matter how many fantastic new service strategy programs you initiate, they will fail if they are built on a dysfunctional culture. Culture beats strategy every time.


If you are not familiar with the intricacies of the Service Profit Chain, check out my course here

Why the Service Profit Chain is more important now than ever before

Filed Under: Design, General, Leadership/Management, Service Design, Service Profit Chain Tagged With: Culture, Employee experience, management, Service design

What is the difference between service levels and service standards?

April 13, 2022By Mike Hohnen

Service levels and standards

A key part of implementing the Service Profit Chain’s thinking is to work on consistency; in order to do that, we need to have a clear understanding of what the difference is between service levels and service standards.

The easiest way to understand this is to look at a few examples.

Many independent restaurants have high levels of service. But they may not have high standards. On the other hand, McDonald’s has a relatively low level of service, but has very high service standards, while Ritz-Carlton hotels have both high levels of service and high standards of services. And the greasy spoon down the road has neither service levels nor high standards.

 

Service Levels.001

Standards are all about consistency. We do things in a certain way, always. Levels of service are all about how much time and effort you put into the delivery process.

Many independent restaurants and other small service businesses go out of business because they lack service standards. Their delivery is inconsistent and creates confusion in the marketplace.

Our level of service needs to fit with our overall value proposition. How much service does this customer segment need and are they willing to pay for it?

Understanding this is crucial to building loyalty.


This blog post is part of a series of answers to frequent questions that I get around the concept of the Service Profit Chain. In future’s posts, we will continue to explore other key points. If you would like the full concept served up in one go, you will find Mike’s book “Best! No need to be cheap if…” HERE.

Filed Under: Design, Foodservice, General, Hotel, Marketing Tagged With: Customer Loyalty, Customer retention, service design thinking, Service Profit Chain

If it is all about loyalty, does satisfaction matter?

April 13, 2022By Mike Hohnen

Consistency

It is true that in the Service Profit Chain framework, there is a huge emphasis on establishing loyalty; loyalty is the key driver of profit and growth.

Before we can even hope to establish a relationship that will lead to loyalty, we must ensure that we have a firm grip on the basics and that we can deliver on our promise every time. The keyword here is consistency, the key driver of basic satisfaction.

Consistency or lack of consistency is also one of my pet grievances. Consistency is the flip side of reliability. If as a customer I had a great experience last week, you as a service provider have implicitly promised me that I will have the same experience when I return next week.

If not, you are not only unreliable in my eyes, but you are also performing below my expectations, and we all know that meeting expectations is the first key to customer satisfaction.

This is a balancing act because, on the one hand, we would like to see creativity and initiative on the part of our teams, but on the other hand, we need to deliver a product that is as expected.

The name of the game is to generate repeat business. Customers return to get more of what they enjoyed the first time. If they don’t get that, then they could just as well have gone somewhere else.

Just think back for a moment about how many times in your life you had a great experience somewhere, and then went back only to find that what you had last time was not what you got the next time. Did you go back a third time just to make sure?

Probably not.

Where do you go frequently? Most probably to a place that is very consistent in some aspect of their service delivery that is important to you. That consistency is what brings you back.

Requiring consistency in the delivery process is universal across all types of services. It is the foundation of your success, and that applies to all service businesses, the way your insurance company processes your claim, the way the consultant interacts with you, how your auditing firm performs the audit. You return to the same supplier in all of these situations because you liked the way he or she did the work.

Together with emotions, consistency is an important element in our ability to recall one service experience more easily than others. You remember the consistently good experiences. They stand out. You have a much harder time remembering inconsistent experiences because you easily confuse them with all of the other inconsistent experiences that you have had.

Customers come back to experiences that consistently live up to their expectations. When that happens, we call it loyalty. Loyalty is built on consistency. Never forget that.

So take a good hard look at your basic processes, are they consistent?


This blog post is part of a series of answers to frequent questions that I get around the concept of the Service Profit Chain. In future’s posts, we will continue to explore other key points. If you would like the full concept served up in one go, you will find Mike’s book “Best! No need to be cheap if…” HERE.

Filed Under: Design, GROW, Hotel, Leadership/Management, Marketing, Service Design, Training & Development Tagged With: customer experience, Customer Loyalty, Customer retention, Leadership, service design thinking, Service Profit Chain

How does one design a great experience?

April 13, 2022By Mike Hohnen

Positive Experience We talk a lot about the customer experience.  We even talk about an experience economy. But what do we actually mean, and when can we qualify something as an experience?

Firstly, let be clear. Everything is an experience. Unless we have managed to shut down every sensor in our system, we will be experiencing something. The challenge is that experiences come in three broad categories: God, bad and indifferent. Most of your experiences belong to the last category – indifferent. If I ask you ‘So how was your train commute this morning compared to the same Monday last year?’, you would probably give me a rather blank stare.

This Monday last year? Sorry, I can’t remember at all what that was like.

Why not? Because the experience was bland, it was no different from all your other morning commutes. To put in very simple terms, there was no emotional trigger.

What makes us remember one experience and not the other depends on to what degree our emotions were stirred. Remember your first teenage date? Most of us do. Or the birth of your first child? The stronger the emotion, positive or negative, the more the experience is etched into our memory.

So most of our experiences are quickly forgotten. There is no emotional trigger. What we retain are the negative and the positive experiences.

So what do we mean by positive and negative in this context? Do I need to bring in a 12 man Mariachi band for this wedding party to be successful or would a 3 piece Jazz trio work just as well or better?

It’s not about the ‘thing’.

It’s about the customer and their perception of what is going on. You see, what causes a shift in our emotional makeup is tied to shifts in the circumstances that we happen to be in. When circumstances change to the better (compared to what we expected), then we are slightly happier; if they shift to something much better than we expected, we are very happy. On the other hand, if they shift to something worse than we expected, we are miserable. And if everything is running exactly as we thought it would, we are … indifferent.

Once we understand this, we have a great design tool at our disposal. We need to work on managing expectations. So standing in a queue at the airport security for 10 long minutes is hell on earth if you thought you would be through in a breeze; but it’s actually not too bad if there is a sign that says from this point on just 10 more minutes, and if we then get through in 8 minutes is actually a good experience.

In most types of customer journeys, there will be things that need to happen that may not be easy to frame as positive. Queuing is one, having a tooth fixed at the dentist might be another. It is not always possible to turn negative experiences into something positive but we can often neutralise them by putting the customer more in control, helping them set their expectations. So my dentist will say ‘In a moment I am going to do this. It might be a bit painful but it’s quick and you will feel much better afterward.’ Now I know what to expect. Ouch! It happens exactly as she said, so no shift in my emotions. Then she finishes up and we have a little chat about my last vacation and what I plan to do next weekend. She is such a nice lady. And there you go. The negative aspect was neutralised and she ended on a positive note making a personal connection: Man I just love going to the dentist.

So if you want to design a great experience, you need first to map out the customer journey, touch points by touch points. Then you make a note, for this type of customer persona, would this be considered positive, neutral or negative? Then, make a plan to eliminate or neutralise the negatives, upgrade a few of the neutrals to positive and make sure that whatever else happens, you end the experience on a positive note. Nothing affects our emotional state as much as the way things end. A movie that ends on an unhappy note is rarely a success. It just doesn’t work.

And finally, what is the one thing we can always do that consistently exceeds our customers’ expectations at any touch point? Be nice and make a personal connection. It blows them away.


This blog post is part of a series of answers to frequent questions that I get around the concept of the Service Profit Chain. In future’s posts, we will continue to explore other key points. If you would like the full concept served up in one go, you will find Mike’s book “Best! No need to be cheap if…” HERE.

Filed Under: Design, Marketing Tagged With: customer experience, Customer Loyalty, Customer retention, Marketing, Service design, Service Profit Chain

The Big Shift – Products to Services

April 13, 2022By Mike Hohnen

This is the second post in a series on the new service economy. You will find the first post here.

Before we start dissecting what it actually means to create fantastic experiences and great services, I think it’s useful to take a step back and try to understand the big picture on how the world that we are operating in, as service providers, is changing quite dramatically.

There is a big shift taking place world-wide, and it is a shift that moves away from a focus on producing stuff to delivering services. It is also described as the move from a goods-dominate logic towards a service-dominate logic.

What that basically means is that for thousands of years, we have been used to creating value by taking something, adding to it, and then exchanging it with somebody else in return for their money. The focus has been on the functionality, the specifications, and the quality of the actual product. The better the specifications, the more money we have been able to obtain for that product.

Service Excellence (1).005
What is happening now is a gradual shift away from a focus on products towards a focus on needs.

Recently I realized I needed go buy a new power drill in order to put a cupboard up on the wall. My old drill doesn’t work very well anymore because it has been lying at the bottom of my cupboard for the past ten years without being used. So, I decide to go get a better drill. But, do I really have a need for a drill? My next drill is probably also going to lie in the cupboard for a few years before I use it again. What I really need is two holes in a very hard wall. If somebody could provide those holes for me in a faster, easier way that would require less effort, less resources, or less trouble for me, I would grab that opportunity immediately.

If you are in the service industry, you may not have paid attention to this because, in the service industry, one has been, in a certain respect, in the service-dominate logic forever. But what is happening is that a lot of traditional manufacturers and producers are also moving away from their traditional goods-dominate logic, and instead they are thinking about how they can make that shift from product specifications to needs fulfillment.

In a service-dominate logic, the value is not created by a transfer of ownership, value is created in use. When I use your product or service, it brings value to me; and the minute I am not using it, it no longer provides value for me.

A great example of this is Mercedes-Benz, their smart car, and the service they have now created in more than 30 cities called “Car2Go”. You can grab the car off of the street with just your membership card and drive from A to B and then leave the car. Most of us living in big cities don’t need to own a car – in fact, it is a downright nuisance. What we do need is flexible transportation at our fingertips. There are lots of other examples of this new trend if you start looking around.

Why do I think this is important?

Because, what this means for the traditional part of the service industry is that more and more consumers are going to experience higher and higher levels of service. Great service is going to be the new normal.

And, that is going to raise the bar…the level of service expected across the board…is my prediction.

In my next blog post, we will examine the concept of value.

Filed Under: Design, Learning, Marketing, Trends Tagged With: customer experience, Customer Loyalty, Customer retention, cx, Hotel, service, Service design, Service Profit Chain

In a Sea of Sameness, We need to Manage the Experience

May 17, 2015By Mike Hohnen

15998442_m

 

We have been talking about the experience economy for years, but what does it mean to create an experience?

And, have you ever wondered who is responsible for the total experience in your company?

Most companies I work with have subdivided the responsibility for the experience into various sections – the kitchen is responsible for the food experience, the restaurant  for the table service, the reception desk for the welcome.

When doing it that way, we hope that if each of them do it well, then the total experience is going to be the best possible experience.

But if we were to apply that principle to manufacturing, we would be calling it sub-optimization. Ensuring that the parts are fantastic doesn’t guarantee that the total becomes fantastic. Purchasing the 11 best soccer players in the world does not guarantee a championship.

If you take your family to a theme park for the day – does it end up being a fantastic day because of one or two rides, or is it the integration of all the different experiences that blend into what you all feel was an exceptional day?

So, how do we ensure that the overall experience is fantastic?

I became curious about all this because I came across an article that stated that 69%of major UK companies have a customer experience manager.

The financial sector and the telecom sectors seem to lead the way. In retail, we don’t see many; and I struggled to find any in the hospitality sector at all.

Interesting.

Why have people in finance and telecoms seen the need before everyone else to appoint someone senior to take responsibility for the total experience of our customers?

I think this has to do with the fact that in the financial sector and the telecoms sector, they have a huge challenge in differentiating their product.

Once you have obtained your overdraft facility or your loan or whatever it is you want from a financial company, the difference in the actual product is not clear. A loan is a loan. The same applies to the telecom sector. If I send you an SMS, it’s difficult to know if it has been sent through Telia or Orange or whoever it is. The quality of the SMS doesn’t vary from one telecom provider to the other – although the content may vary… but that is another story.

What does vary from company to company is the actual experience you have when applying for your loan or creating your mobile phone account. Paying your bill etc.

This is something that Virgin understood years ago.

They took boring industries and tried to see if they could improve the experience. Not a cheaper experience but a more interesting or fun experience. They did it to the airline industry, they did it to trains, they’ve done it in the banking sector, telecoms, and fitness centers.

So why is the retail sector or the hospitality sector not concerned about the total customer experience – they stand out as the two sectors who don’t seem to employ customer experience managers?

They don’t see the need because when you have a shop or a hotel and you stand inside your own business and look out into the world, you are convinced that what you have is very different from any of the other products out there. Furthermore, you are convinced that, of course, the customers can tell the difference between your beautiful shop and all the other mediocre shops that are out there. It is obvious. But if you switch perspective and look at the marketplace through the eyes of the customers, what they see is a sea of sameness.

From the customer’s point of view, in each category they are all similar products that do the same things at the same prices, etc.

Which is why we have now come to a point where customer service is probably the last frontier of a sustainable competitive advantage. Products are very similar; process – the way we do things – is the differentiator.

So, if you want to out-perform your competition, you need to focus on your processes. How do all the things we do blend into that great total and unforgettable experience?

In the following blog posts, we will take a closer look at what that means.

Filed Under: Design, General, Hotel, Trends Tagged With: customer experience, cx, service, Service design, service design thinking

Customer Centric : they get it – Virgin Hotels

April 13, 2022By Mike Hohnen

In my previous post, I tried to illustrate how some hotels (and other service businesses) truly understand what it means to be customer centric and then all the others who really just don’t get it.

Two days after posting that I came across the following video from Virgin – who is now entering the hotel industry.

This is interesting because Virgin has always had a strategy of moving into industries where most of the players just don’t get it… Airlines, trains, banks, phone providers, and now hotels. What it means is that Virgin sees an opportunity to do it much better…there is room for improvement… Check out their website

Virgin Hotels – ‘Brilliant’ Not To Scale New York. from Not To Scale on Vimeo.

We make love and steal hearts. We’re passionate about creating brilliant experiences that make peoples’ lives better. And there’s nothing more honorable than that.

Filed Under: Design, General, Hotel Tagged With: Change, customer experience, cx, Hospitality, Hotel, Service design, Service Profit Chain

Gamestorming service design

April 13, 2022By Mike Hohnen

30 years ago we called this moments of truth – Dave Gray calls them touch points but the idea is the same. None the the less this is a great way to map out your customers journey through your service experience. It is also a wonderful way to make the whole team understand what the critical touch points (bottlenecks) are in the customer experience:

Se his blog here

Filed Under: Design, Foodservice, General

  • Go to page 1
  • Go to page 2
  • Go to page 3
  • Go to Next Page »

Primary Sidebar

Search here

The Legal Stuff

Terms & Conditions

Privacy Policy

© Copyright 2025 Thoughts4Action cc - Privacy Policy - Terms & Conditions

All your work challenges are really relationship challenges

Get fresh perspectives and practical wisdom on building authentic professional relationships that make your life easier.

Join my newsletter list here (published once a month)