Service design

The employee experience needs to adapt to the employee life cycle

September 2, 2017By Mike Hohnen

The classical way to define the employee life cycle is: attract, recruit, onboard, develop, retain and transition. But that is the HR perspective, not the employee’s perspective. And as good service designers, we know that we need to consider the perspective of the ‘customer’ or user if we are going to be successful with our journey/experience design.

The life cycle will vary from industry to industry and of course from employee to employee. So good experience design would require that we do more research on this, in order to understand what it looks like in our case.

But here is what it might look like from an employee’s perspective.

Is this for me?
Attracted to a job proposition and wondering if it is for me.

Will I make it?
Entering into the application, selection, interview, and final negotiation process.

I made it!
The excitement of being chosen and starting the new job. Flooded with new impressions and ‘firsts’.The lunch canteen is amazing. Loving the attention I get as a newbie. (Or so one hopes.)

Am I good enough for this?
The first feelings of being overwhelmed. Am I good enough for this? Imposter syndrome. Do I belong here? Is this really for me? Feeling very much outside my comfort zone. Should I bail out and limit the damage?

Challenging but do-able
Feeling more secure in the saddle. Challenged and on the edge of my comfort zone, but in an exciting way. Giving the job everything that I have, and enjoying it.

Cruising – no sweat
The daily routine sets in, and most of what I do is well within my comfort zone. (Canteen is not nearly as nice as when I started.) Engagement may start to regress, through lack of challenges.

Is this it?
The first doubts start creeping in. I am always well within my (now shrinking*) comfort zone. This is no longer meaningful for me

From here there are two options: change your job or stagnate completely.

Experiences are all about managing customers’ emotions, as we have seen in previous blog posts on the subject of Service Design Thinking. The same principle applies to employee experience design. We need to understand the emotions that the employee is going through at each stage of the cycle.

When we review the above life cycle it becomes clear that the overall principle we need to look at is where people are in terms of comfort zones. Growth and development are keys to engagement and enthusiasm. But learning and growth happen just outside our comfort zone. We have the misconception that if we do the same thing for a long time we will get better and better at it. Not true. Research shows that, if anything, we stagnate or regress*. (Could you pass a driving test today? Probably not. See what I mean?) In order to get better we need to challenge ourselves and make a deliberate effort to improve. On the other hand, if we get too far outside our comfort zone we trigger fear, and then all learning and development stops as we move into “fight or flight” mode.

Engagement is essentially the product of the accumulated emotional experience. It is what we in a service profit chain terminology would call content. It is different from context (environment, salary and work conditions), which forms the basis of satisfaction but does not produce engagement. We can all have tricky and less than satisfying days, just as we can have fabulous days. But over time the key to engagement is: is this meaningful for me overall? Do I regularly find that I am at the edge my comfort zone, in a constructive and challenging way?

So the key to engagement and retention is to create an environment where the employee can safely switch back and forth between “challenging but do-able” and “cruising, no sweat” modes.

When looking at the employee life cycle in this way, it also becomes clear that as a manager you have a huge responsibility to know where your employee is in the cycle, and to do what you can to support that person in the best possible way. And that may even include helping an employee to move on to a new and more challenging position, if you have no more challenges to offer.

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

Your customer experience will never be better than what your employee experience was designed to deliver.

January 26, 2019By Mike Hohnen

Service Design Thinking is a fantastic toolkit for improving our customer service experiences. Mapping out customer journeys, identifying touch points and understanding different customer personas is going mainstream as everyone chases the elusive super loyal customer.

But did we get the wrong end of the stick?

Let just backtrack for a moment and ask ourselves the fundamental question: why are we so focused on the ‘experience’?

Because in order for something to qualify as service, it has to fulfill two criteria.

It needs to deliver a certain result and there needs to be a positive experience.

If you walk into your favourite coffee shop and they serve you a horrible wishy-washy cup of latte, the setting may be nice and the lady may be ultra friendly but your basic result was not delivered.

Or the other way round.

The coffee is great, but the place is filthy and noisy, the lady is rude. The result was delivered but the experience was horrible. You could just as well have made that cup of coffee at home and saved yourself quite a few bucks. When you opted for going to the coffee shop, you were looking for a service, not just a product.

Ok so far so good. Sometimes it can be sobering to get back to basics.

So assuming that you know how to deliver the result part of whatever service you offer, let’s examine the experience part. As Seth Godin says, customer service is all about changing feelings. Experiences are emotions in action. No emotions, no experience. How was your train commute to work today compared with the same day last year? Ehhh?? Most probably you can’t remember because if it was just the way it always is, there was no emotion. You have not stored it in your memory as ‘an experience’ (Technically everything is an experience but we only retain in our memory the positive and the negative ones, the rest is auto-deleted).

“The only purpose of customer service is to change feelings.”
– Seth Godin

So as you look at your customer journey and map out the touch points, it’s a good idea to also map the emotional highs and lows. You can start out by estimating them but eventually, you will need to research and confirm your assumptions.

Let’s map a simplified example of a customer journey most of us can relate to, the airport check in: Arrive at airport, check in on the touch screen, walk through security, walk to the gate, board using automated boarding card verification, greeted by stewardesses, Settle into a seat.

What are the potential emotional highs and lows that we could work on to ensure that we maximise the experience? The touch screen provides no emotion unless it is not working, so it is just a negative risk. Walking the hallways can at best be neutralised by making the walk pleasant on the eye and informative. Boarding card verification is again automated. The automated or physical parts of the journey we can work on to eliminate negative emotions but they are hard to turn into over the top emotionally positive experiences.

The the two touch points that have the potential to provide emotional highs are the security check and the welcome onboard greeting by the hostess. The critical variable in achieving this is obviously the human being involved in these two touch points. The customer experiences are in their hands and totally dependent on how they feel (Technically we call that engagement, but that is actually just a fancy word for their feelings toward the job.) If they feel anything less than enthusiastic, they will deliver the minimum required to keep the job.

But, you may say, we give them a service manual and they get the onboarding service course, they know what they are supposed to do. Yes, they know, but knowing and doing is not the same thing. They will do or not do depending on how they feel.

In order to understand what drives their emotions, we need to map their employee experience. What is it like to be an airport security agent or a flight attendant? How does their employee journey unfold on a daily basis? What are the emotional highs and lows? Do we know and what can we do to maximise the highs and eliminate or neutralise the lows? (In a Service Profit Chain context, we would call this improving internal quality.)

If you are really serious about delivering best in class customer experiences, you need to start at the other end and look at what kind of employee experience you are providing that is your foundation. Great service design pasted on top of mediocre employee experiences is like trying to paint over the rust spot on a used car.

You can download the Dream Team Checklist below and benchmark yourself!

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.

ETC is at the heart of your employee experience.

January 26, 2019By Mike Hohnen

ETC

What kind of employee experience are we delivering? That has been the theme of my blog posts over the past 3-4 weeks.

A few years ago, MIT Sloan Management Review ran an article entitled “Designing the soft side of customer service”. In it the authors argue that regardless of whether we are talking a pizza delivery or a complex consulting agreement, emotions are lurking under the surface and that our job is to make those feelings positive.

If we are aiming to create the optimal customer experience, we will need to start off by examining the kind of employee experience that is going to be the foundation of the customer experience.

A miserable employee is not going to provide your customer with a breathtakingly positive emotional experience – no matter how much you train them.

But this is not just about the full employee journey: recruitment to exit-interview. As managers, we need to focus on the day to day experience as well.

We have looked at endings, consequences and psychological safety in previous posts, so this week let’s take a look at what else we can learn from the field of behavioural science that can help us understand what drives a great employee or customer experience.

You need to focus on the “ETCs”.

Emotions influence what we remember. Emotionally charged episodes are easy to recall. “Experiences” that triggered no emotional reaction, positive or negative, are quickly forgotten.
Basically our emotions are triggered when something turns out better or worse than we expected. And the corresponding emotional response is then either positive or negative. A good manager does her best to manage the emotions of her team – and sprinkles the day with a few unexpected positive surprises as well. Positive surprises are anything from throwing a pizza and beer party to celebrate a win, to the simplest little gests of encouragement during the day.

Trust is the basic psychological variable that is essential to any form of relationship. No trust, no relationship. If we want engagement, there needs to be trust. And trust is the mirror of how we show up on a day to day basis as human beings. Are we reliable? Do we do what we said we would do? Do we care for and stand up for our team?

Control over one’s environment and knowledge of how events are going to unfold are fundamental psychological needs. But control is also linked to trust. In a high trust environment, the need for control is less. There is one more aspect of control when we are talking employees and that is the sense that I have some degree of control over how I do my job. This is one of the foundational cornerstones of employee engagement.

Every situation in the day that involves uncertainty either in outcome or in process will cause our team members to experience a loss of control – and that closes the loop back to emotions because a sense of loss of control creates some very negative emotions.

So there it is, as a manager, I need to manage the emotions, trust and sense of control of my team if I want to make sure that they are in the best possible shape to create a fabulous customer experiences.

It sounds complicated, but it does not need to be – In our next manager’s toolbox workinar*, we will talk about some simple tools and tips that can help you do a much better job at this.

* I have a new online training out on this: The Team Leaders Toolbox – check it out

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This is the 14th article in a series on how to lead as a first time manger. If you would like to know more, check out other articles of the first time manager series:

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:

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.

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.

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

May 17, 2015By Mike Hohnen

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.