Leadership/Management

SeeBeDo

April 14, 2022By Mike Hohnen

I have been reading “Building the bridge as you walk on it” by Robert E. Quinn. It’s a lovely book. What struck me the most and what has been going round in my head for a while since reading the book is this very simple statement:

“Management is what we do. Leadership is who we are.”

So from that perspective, all this talk about leadership tools and training misses the point. What we need to talk about is what it takes to develop a healthy leadership state.

And that made me go back and dig out some writings by Doug Silsbee. He has a lovely acronym SeeBeDo that reminds us that the way we choose – and it is a choice – to see things, influences the way we are. Our state. And the state that we are in will influence our actions. And our actions determine the outcomes that we get in life.

A simple example: The way I drive on the day I have all the time in the world, meandering through the countryside on the first spring day, is different from when I am late for the airport and traffic is dense in the rain. And the way behaviour shows up comes out most obviously in how I behave towards other people.

I expect that you can imagine for yourself the two different scenarios and the two different types of driving behaviour that are the result. I say no more.

But the implication of this line of thought is that my driving style is at the mercy of the circumstances that I happen to be in. Ultimately, that means I see myself as either a lucky guy out for a drive in the countryside, or as a victim of bad weather and crowed motorways and I behave accordingly.

Ouch…..

I don’t need more driving lessons – that is not the point – I need to learn to manage my states.

The first step in managing my states is to examine closer how I choose to see what goes on around me. The state that I am in is driven by the way I choose to perceive the situation.

Neuroscience has documented this very well; we are what we give our attention to. Whatever we hold in our mind unconsciously influences what we can notice and focus on – and maybe more importantly, what we are unable to notice and focus on. This too has been well documented in “the Gorilla on the court” experiments.

So to what extend are we conscious of what we are holding in our mind? And is what we are holding in our mind supportive of the leadership responsibility before us or is it getting in the way, possibly even hindering us in understanding what is truly going on?

As always I would love to hear your thoughts and comments on this topic. Feel free to leave your comments below and let me know what you think.

Are you the chief employee experience officer?

March 31, 2016By Mike Hohnen

Focusing on the customer experience is the key to high customer loyalty – it’s well established.

That is also why around 70% of medium to large UK companies have a customer experience manager at the level of VP or equivalent. The current buzz-tool for developing these customer experiences is ‘service design thinking’.

So far so good.

But if you’re familiar with the service profit chain, you also know that the key to an exceptional customer experience starts somewhere else. We need to create what we call ‘internal quality’ – more popularly referred to as ‘a dream team cycle’.

So what would happen if we were to turn all this service design thinking on its head and focus more on the employee experience? When did we last sit down to analyse the employee journey as it unfolds throughout the day?

Do we know what the critical touch points are? Have we done some emotional mapping that could help us understand what the possible frustrations are during a day?

What are the learning opportunities? Does this job have varying challenges, or is it just the same thing day in, day out?

This idea came to me as I read Global Human Capital Trends 2016, published by Deloitte University Press. According to this latest survey, 92% of executives listed organisational design as very important and something they will be focusing on this year.

So designing our service organisations from the employee perspective should receive the same kind of attention and resources as we use when looking at the customer experience. Yes?

This leaves the question of who the chief employee experience officer is going to be in your organisation. Will they be part of HR, or will your organisation create a totally separate role?

I would love to hear your views on this, so please feel free to reply to this mail.

Why learning is your key to engagement

April 13, 2022By Mike Hohnen

“When we grow people’s experience of competence, we inevitably grow their engagement”

– Ron Friedman.

A foundational piece of the Service Profit Chain is the dream team cycle: The seven steps that need to be in place in order for us to foster the kind of environment that ultimately will produce the best possible customer experience.

The third step of the cycle, Build Skills and Capacity, is all about the opportunities we give our people to develop and improve.

We all understand that training and development is useful when there is an obvious need to improve skills. But that is just one aspect. The other and possibly more important aspect is that personal growth and development is a key factor in securing engagement.

This is highlighted in the most recent Global Human Capital Trends 2016 Published by Deloitte University Press where 84% of executives surveyed rated learning as important or very important. This focus on learning comes as organisations see learning opportunities as a driver of engagement and strong workplace culture. Both are more than ever recognised as drivers of performance, according to the report.

“Compared to last year, companies appear to be making strides in adopting new technologies and embracing new learning models.”

That is also why in the Great Place to Work or Gallup engagement survey they ask employees if they have had the opportunity to grow and learn in the past year.

Unfortunately we see time and again that not many have had that opportunity.

It requires leadership capacity to provide learning opportunities for our people. It is not just a question of finding the budget to send them on a course. Learning and development happens mainly on the job. (Check out 70:20:10 – if you are not sure you agree).

It is by walking the precipice between our current abilities and the skills just beyond our reach that growth occurs. But that requires that you as a leader must design a path for your people that will take them out on that precipice from time to time. And that includes being there in case there is a need for a bit of hand-holding along the way.

But a first and even simpler step to ensure engagement in your team is to provide adequate feedback. Without feedback, we lack the crucial information needed in order to improve. And when we do not have a clear direction on what it is we need to do in order to succeed, it just a matter of time before we lose our engagement.

You can download your own Dream Team checklist here and benchmark yourself on how you are doing on all seven steps. The Dream Team Questions on a pdf – click here

Dream Team Questions

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Service is a Contact Sport

April 13, 2022By Mike Hohnen

And that needs to be reflected in the way you manage who gets to play on your team.

Step number one, when we are trying to create a service dream team, is having the right people on the bus. There are two parts to this: recruiting and developing.
Before we explore those two aspects further, let’s just take a look at why this is important. The name of the game, when we are running our service company using the Service Profit Chain framework, is employee loyalty.
In this context, loyalty has two dimensions: retention and attitude.
So, if we want to keep our best people and ensure that they continue to have that world-class, can-do-attitude, we need to be careful not to take away their job satisfaction.

How to Insult Your Best People

Ask them to work alongside an idiot!
Nothing demotivates a great service provider as much as having to work with a colleague who is not performing or, even worse, is blatantly annoying our clients. And if you – their manager – are not seen as doing something about what is obvious to everyone, one of two things will happen.

Either…
1) They will leave the team and find a place to work where they are sure to work with other star performers. (This is one of the secrets to Ritz-Carlton’s success, in my opinion – the best service people want to work there. Why – because they know they are going to work with the best in the industry.)
Or…
2) They will reduce their efforts so that they match the underperforming colleague.
In either case, your customer will be at the receiving end of a lousy service experience.
So, when we look at the best companies in a given service category, we always see that they are picky about who they hire. They do not adhere to the warm-body principle, “As long as they have a pulse, we’ll take ‘em,” to the extent that they prefer not hiring to hiring someone they are not 100% sure fits. And ‘fit,’ in this instance, is about values and attitude – not about skills.

Deal with the Bad Apples

Secondly, great managers do not put up with bad performance. If someone is not performing, they are coached. And if they are not seen to be making an effort to improve, they will need to go.
Great service organizations play to win – consequently, they have no room for players who are not performing – it’s that simple.

Seven Steps to a Dream Team

There are 7 more steps to creating a dream team – I have outlined them in a handy Checklist that you are welcome to download here.

Building a great service business begins with understanding the Service Profit Chain framework. In my view, that is the foundation. Check out my free introduction here

The Frontline Manager Makes the World go Around

April 13, 2022By Mike Hohnen

Despite the fact that we read stories that companies such as Zappos and others are abolishing the role of middle management, the reality out there is that the vast majority of companies rely heavily on middle managers to keep the wheels moving.

So, unless you have embarked on the experiment of abolishing middle managers, there is a high likelihood that you recognize that your frontline managers are crucial to your business.

Take one metric. Staff turnover.

A controllable cost that also has a high impact on your customer loyalty and satisfaction. It is widely recognized that employee turnover is linked to the management style of the immediate supervisor.

Or, change management.

Whatever customer satisfaction strategy and tactics you are developing – the effort is wasted if your frontline is not implementing according to that plan.

The Frontline Manager is the Linchpin

But, how much attention are you giving the growth and development of those frontline managers?
If you are like most of the companies recently surveyed by HBR, not much.

What that same survey shows is that, paradoxically, the same companies that say the frontline manager is a linchpin in the organization also say that the same frontline managers need to develop a number of crucial skills, including organizational savvy, leadership, and talent development.

But they recognize that not much is being done in the company to actually develop those people – go figure.

The reality out there – still according to the HBR survey – is that most development for this level of management tends to be ad hoc, sporadic, or just too brief to actually make a difference.

In general, it seems that leadership development follows the trickle-down model. Most gets invested at the top; and if there are resources left, they are spent on the frontline managers – sometimes.

So, once again, we have a classic knowing – doing gap. The problem is recognized – but somehow nothing gets done.
I wonder why.
Let’s just recap why frontline leadership is crucial to your service organization. We live in a world of Hypercompetition. Customers are flooded with offers and messages. In every imaginable category, supply outstrips demand.

So, if you are not just going to live a mediocre existence trying to survive, you need to stand out and be, if not the absolute best, then at least among the best.

Your aim is customer loyalty. If you can get that right, you will drive profits and growth as a result. This is the basic learning from the research done that led to The Service Profit Chain.

The best starting point for developing your frontline managers is to introduce them to the Service Profit Chain framework.

If you would like a refresher course on the mechanics of the Service Profit Chain and how employee engagement ultimately leads to profit and growth, check out my free video course here:

Management Team or Just Heads of Tribe?

April 14, 2022By Mike Hohnen

Often when I work with a GM and the department heads, I will start by asking each of them to write down the name of a person on their team – just the first name that comes to mind. Then I ask them who in the group has written the name of a person who is in this room now on their piece of paper. And invariably, it will always be only the GM who raises his hand. The GM sees the other people in the room as his team. But, the department heads seldom see each other as the team.

Department heads tend to see themselves as Indian chiefs. Each represents his or her tribe; and when they meet, it is about defending territory and resource allocation, not about collaboration.

Two Different Cultures: Taking Responsibility and Being held Responsible –

They key to understanding why department heads end up as heads of a tribe and not as the team we dream about has to do with how we work with responsibility.
If we spend our time at management meetings trying to identify who was responsible for ‘That’ when something goes wrong, then each department head learns that the only way you can play that game and not get hurt is to create clear boundaries. ‘This is what I am responsible for – and that is what you are responsible for. Just make sure you don’t cross that line.’
The savviest department heads also learn not to stick their necks out and take on more responsibility than they need to.

Responsibility means trouble.

So, over time leaders (and their teams) become more and more passive and reactive.

But, we all know that being passive/reactive is not what gets us raving customer reviews. In order to rise to the top in our category, we need to be proactive. Managers and their teams need to take initiatives and anticipate needs in order to delight customers.

But, they will only do that if:
a) it is accepted that boundaries between departments are soft and
b) that we do not ‘punish people’ for taking initiative even when they are not successful.
That means a different culture.

Taking Responsibility

The alternative to being held responsible is to develop and encourage a culture where we take responsibility.

But that is a completely different culture; because, if you think about it, no department is an island. The boundaries we have created between departments are, in reality, just here for our own sake so that we can organize stuff in a meaningful way. From the customer’s viewpoint, these boundaries should be invisible.
The customer is looking for a total experience – the whole.
And because no department is an island, when something goes wrong, in most cases it goes wrong for a number of reasons – not just for one reason.

So, the question we need to always ask ourselves when something goes wrong is: “What could WE have done to prevent this happening?” Then, maybe department head A immediately jumps in and says: “That was my fault. I screwed up, and I will do my best not to make that mistake again.” Case closed and we can move on to the next item on the agenda.

If that does not happen, we need to analyze what happened, not to place the blame, but to learn how we could have prevented this… most probably, with better collaboration at some level.
Because – if you remember – the definition of a team is:

A group of people with a common goal and who feel mutually responsible for reaching that goal.

Feedback Drives our Behavior.

Everything that we do is based on our previous experiences or our beliefs about what an experience will be. So, as the leader, your feedback to your team governs their behavior, and over time they become a reflection of your feedback.

And, they will either become a team or they will default to heads of tribe – it’s up to you.

Building a great service business begins with understanding the Service Profit Chain framework. In my view, that is the foundation. Check out my free introduction here:

Potential ÷ Interference = Performance

May 17, 2015By Mike Hohnen

I am a great believer in this simple formula:

Potential ÷ Interference = Performance

Fundamentally, all individuals, teams, and organizations have huge potential. They don’t always realize it – but they do. If they are not reaching that potential, it is because something is getting in the way. We call that interference.

If you don’t feel that you or your team are achieving your full potential, it is probably due to some form of interference.
Maybe you know the cause, but often it is a question of a blind spot.

In either case, you are stuck until we can get whatever it is out of the way.

And that is what I, as a coach, can help you with.

Why Culture Beats Process

May 17, 2015By Mike Hohnen

I am researching for a workshop that I will be conducting next week on culture and performance. One of my favorite subjects.

The evidence is very clear: Everywhere we find exceptional customer service, we invariably also find an amazing culture. Culture and performance are inseparable.

It’s not surprising though, if you think about it, your complete customer experience is a direct reflection of your culture. Makes perfect sense.

During my research, I came across this beautiful quote from Brian Chesky, Co-founder, CEO of Airbnb. This is part of a longer letter that he had written to his team, which was later published in Medium:

So how do we build culture?
By upholding our core values in everything we do. Culture is a thousand things, a thousand times. It’s living the core values when you hire; when you write an email; when you are working on a project; when you are walking in the hall. We have the power, by living the values, to build the culture. We also have the power, by breaking the values, to fuck up the culture. Each one of us has this opportunity, this burden.

Why is culture so important to a business?

Here is a simple way to frame it. The stronger the culture, the less corporate process a company needs. When the culture is strong, you can trust everyone to do the right thing. People can be independent and autonomous. They can be entrepreneurial. And if we have a company that is entrepreneurial in spirit, we will be able to take our next “(wo)man on the moon” leap.

Ever notice how families or tribes don’t require much process? That is because there is such a strong trust and culture that it supersedes any process. In organizations (or even in a society) where culture is weak, you need an abundance of heavy, precise rules and processes.

Read the full article here

Great service is all about engagement in the front line.

But engagement is inseparable from empowerment.

Empowerment is culture.