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Sick or Healthy. What’s your excuse?

When Edelman published its 2008 Trust Barometer in January the verdict was clear “trust no-one”.  The lowest score of overall trust in both industry and government Edelman every recorded.

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It got my attention and over the first half of 2009 I’ve discussed the issue of trust with clients many times garnering their opinions of how they feel about themselves and how their customers and suppliers feel about them.

What I hear confirms the Edelman findings.  That personally and professionally  we all follow the “trust and verify” philosophy of dealing with relationships these days.  Trust is at the core of any relationship.  With trust flagging it clearly follows that relationships are at risk.  Relationships within our organizations and with key external stakeholders.  Manifestations of the trust gap are sales cycles that take twice as long to close, payables that are consistently outside agree upon contracts, rumors of impending doom within the walls and overall low levels of valuable productivity.

Organizational health can be measured and trended.  I advocate aggressively pursuing the development of a trust gap metric for all my clients.  It’s relatively easy to establish since most of the key metrics already exist in most organizations but are seldom brought together in a single measurement.  Consider that you presently collect customer satisfaction metrics, employee satisfaction metrics, vendor relationship metrics, shareholder value and some level of social media “buzz” analysis.  Bringing all these individual measures of organizational health together in an index or total score allows any business to baseline health and trend it on a holistic basis.

Conventional wisdom and a plethora of research tells us that engaged employees build relationships and trust with customers and suppliers.  High levels of integrity, ethics and transparency build confidence with investors and the communities we work in.  All of this wisdom then begs the question, why isn’t this something we should trend? 

My task for business leaders is to pay attention to the trust gap.  Financial pressures are often convenient excuses for violating the trust of key stakeholders.  Holding payments to suppliers beyond 60 days, violating sales agreements, paying bonuses to senior executives while the rank and file are denied merit increases are all excuses we use to violate trust slowly eroding relationships.

In the words of Peter Drucker “Business ethics assumes that for some reason the ordinary rules of ethics do not apply to business”

If this is your operating model you are in the midst of a serious trust gap.

June 19, 2009 Posted by | Thinking About Change | 1 Comment

Business Landscape Changed Forever

It’s probably safe to say that the landscape of business as we knew it 12 months ago has changed forever.  Now forever is a long time but I’ll take the risk.  My favorite quote of the week is from Lynn Franco of the the Conference Board in discussing the latest Customer Confidence Index results After two months of significant improvements, the Consumer Confidence Index is now at its highest level in eight months (Sept. 2008, 61.4). Continued gains in the Present Situation Index indicate that current conditions have moderately improved, and growth in the second quarter is likely to be less negative than in the first.  Lynn made a valiant attempt to be positive.  Unfortunately…it failed.  Less negative?  Really?  I suppose the new reality is giving everyone a bit of the jitters.

 

New landscapes require different tools.  I’d like to introduce everyone to John Boyd, one of the finest fighter pilots to ever strap on a jet.  Colonel Boyd also changed the face of warfare.  Boyd worked overtime to understand how he could win any engagement in a matter of seconds regardless of what the other pilot was flying, what made him better?  He never believed it was his flying skill but about the way he approached a fight.  Over a period of many years he studied in great detail this problem and concluded that it was in fact ones ability to process the environment and act faster that the other guy that made him better.  His construct was the OODA Loop.  Components of OODA are: Observe, Orient, Decide, Act.  He didn’t believe that “reaction” was ever appropriate, but a conscious act in response to a decision based on situation awareness.  He did believe that if you could move through the OODA Loop faster than your opponent the day would be yours.  In short – being AGILE.  Strangely enough the Air Force never bought into the idea, but the Marine Corps did.  Boyd was a freqent instuctor of warfare in Quantico and many of today’s strategies and tactics have evolved from Boyd’s OODA Loop construct.  Some businesses have taken to using the concept, but in my mind not nearly enough.

To compete in today’s new business environment requires a constant state of observation and orientation to develop the agility necessary to win.  I’ve spoken often about renewal and the use of positive language.  Introducing agility into the conversation via education around and exercise of the OODA Loop would serve any business leader well.  I’ve seen so often how long it takes for organizations to make small changes that it becomes a running joke.  Decisions made in March of one year might make it to implementation the next June.  Reviews, budgets, enrollment of stakeholders, revisions, new enrollment and finally the action gets implemented.  Problem is this was an action appropriate for last year’s orientation not the present situation.  Boyd and his followers, of which I am one, would say the day was well lost.

Our new reality demands agility not reaction.  Observe the environment, Orient to the situation, Decide on a course of action and ACT!   TODAY….for tomorrow will be too late.

May 27, 2009 Posted by | Thinking About Change | Leave a comment

Knowledge, skill or luck?

Living in Surf City USA give me the opportunity to spend a lot of time in the surf.  Funny thing about surfing, know how doesn’t mean you can ride a wave.  It’s not often that a nubie doesn’t do weeks of face plants working to acquire the skill required to put the knowledge of surfing to work.  Same principle applies to dealing with change in today’s challenging marketplace.

Many members of today’s corporate leadership teams have never experienced riding the “big surf” being presented by present challenges.  The old heads that have lived through the pains of ’87, ’93 and the dot com bust are either retired or acting as consultants these days.  Crucially important to preventing a major wipe out is controlled responses until some level of control can be achieved.

Translated from this somewhat lame metaphor is the need to measure response while preparing for the recovery.  Managing change is always a balancing act between hardnosed drastic action and tempered empowerment.  The result of being a hard guy and overcorrecting is loss of trust and commitment to future renewal actions.  Using the power of the wave to propel forward motion is a far more effective approach than making severe changes that actually burn off energy you’ll need later.  Look for the small changes in your organization today to augment the much larger changes made early this year.  Three things to consider to retain the organizational energy you’ll need to renew in the coming months:

1. Commitment is king.  Holding and building commitment of your organization to grow and succeed will pay cash dividends in the near furture.

2. Lost energy can never be regained.  Draining energy from the organization is a losing proposition, for every action that negatively impacts organiational energy ensure that an equally powerful positive action is taken.

3. Celebrate every success.  No matter how small the win celebrate the event openly and with great fanfare.  Celebrations build energy and provide clarity that tomorrow will be another day to celebrate.

Building change skills takes more than knowing how to manage change.  Start working out…

May 12, 2009 Posted by | Thinking About Change, Thinking About Customers | Leave a comment

Taxes, Change and Customer Engagement

Walking through a downpour in Washington, D.C. on tax day accross from the White House I ran into a Tea Party in progress.  Not your run of the mill tea party but a group of a few hundred of my fellow citizens exclaiming their displeasure with the present state of their tax bills.  How cool was that?  After I dried off in my client’s warm digs the thought came to me about the relationship between taxes, change and engaging your customers. 

With over 500 of these tax day tea parties taking place all over the U.S. clearly our elected officials have implemented their change program at pace that has truly put their customers (us)  in a state of shocked disbelief.  Spewing trillions of dollars out the top of the treasury building like so many pieces of confetti has gotten citizens a little unnerved.  In the world of managing change leadership has made some serious mistakes that would instantly derail any corporate change program. 

Key Mistakes:

1. No clear awareness of the stakeholders readiness for change

2. Poorly designed and executed communication program.

3. Weak case for change (over 50% of Americans didn’t agree to bailing out anything let along every bank and open hand)

4. No clear vision of the future to gain commitment to the change program.

With all these holes in a strategic change program it certainly wouldn’t have even left the chocks at any of my clients let alone be in full swing.  The result of a poorly managed strategic change is rapidly weakening commitment to the future state.  Guess what? Commitment is flagging.

In this unique case study key stakeholders are also customers.  In developing advocacy with a customer it’s critical to truly understand and analyze the practical and emotional needs required to deliver a WOW experience.  As Billy Mays would say ” Where’s the WOW!”   Government’s customers are far less than delighted by the present state of leadership leading to what we call in the contact center world “abandonment”.  Not good.  Even worst when the alienation occurs in your most valuable customers, those earning over $250,000 annually. OUCH!  How many business leaders would tolerate that behavior in their organization? Not a single CEO I’ve ever met.

Often the Change Dudes are called into strategic change initiatives when they reach the state described above.  Time to get back to basics and accomplish the spade work that wasn’t done before the change kicked off.  If the Obama administration reached out to me as a highly experienced change dude what advise would I provide?   Hmmmm….

5 Point Plan to Enhance Commitment to the US Government Strategic Change Plan

1. Develop and articulate a clear vision for the future state, specifics about what the future will look like and feel like 1, 3 and 5 years out.

2. Complete a change readiness assessment for ALL key stakeholder/customer groups to clearly identify the commitment levels of each unique group of stakeholders/customers

3. Focus commitment building efforts on the groups that need it the most, asking for feedback, acting on the feedback and enrolling support.

4. Develop and communicate a solid, bulletproof business case for the changes at hand, the exisitng case is replete with holes.

5. Make local leadership responsible and accountable for ensuring all points of view are heard, addressed and provided to senior leadership in a timely, unfiltered way.

Sounds a lot like a change leadership program with a sprinkling of customer engagement. 

Change is fabulous when the end state is clear and renews the spirit of as many as possible.  Change fails when a small group forces their vision on everyone.

April 18, 2009 Posted by | Thinking About Change, Thinking About Customers | 2 Comments

Game On -Time to Renew

Wall Street has made some postive gains over the past week with some confidence in the equity markets and businesses throughout the country.  This confidence is a clear result of the dramatic changes business has made to reduce costs and reposition themselves for the post bubble economy.  As we prepare to exit Q1 ’09 the organizations that have made these changes are begining to see the real result of these decisions.

As confidence begins to grow the time is now to strategically renew organizations.  Renewal through the execution of positive messages throughout the business.  Renewal through aligning customer relationships to the new look and feel.  Renewal through revised incentive structures for all the members of the business that contribute.  Renewal through putting in place plans and strategies to lever a thinner, less experienced staff to meet the dramatic challenges that lay ahead.

Every client interaction I’ve had over the past three months began with these words “we’re going through a significant transition”  the transition has only just begun.  The final outcome looks a lot like the NCAA tournament – one and done – when relationships are not maintained strategically. It’s game on to renew relationships with all your stakeholders, take this opportunity and invest boldly in building trust and confidence today.

March 17, 2009 Posted by | Thinking About Change | Leave a comment

Trust No-One – Sound Familiar?

In prepping for a talk I’m doing this week to a bunch of marketing folks in Boston I ran across Edelman’s latest Trust Barometer http://www.edelman.com/trust/2009/.  Edelman is a major PR firm that does this survey annually and guess what – Trust is down, like way down, like lower than after the Enron debacle.  Apparently the changes that took place late last year have driven everyone to look left and look right and decide – I don’t trust these people!  Now isn’t that amazing…  Mulder and Sculley have made us all converts. 

Change happens quickly - Just Keep Flyin

Change happens quickly - Just Keep Flyin

So I ask myself, Is this really a surprise to anyone?  Certainly not to me.  As the ultimate believer that change is good –I see this as just another indicator that when the road curves unexpectedly most folks lose faith in the map. 

Advice to those that have lost faith and trust in business and government:

1. All humans make decisions that are driven either out of fear or greed – TRUST THAT

2. When someone makes a decision or takes and action that directly effects you personally without asking for your opinion or approval we HATE it – TRUST THAT

3. Neither business nor government has your personal interest in mind unless of course it meets their immediate need for control or financial gain – TRUST THAT

4. You have the final power to either accept the fact that business leaders and the government control how you live your life or ensure that as all these people you have no control over only provide inputs to how you morph your life to the previous 3 realities. -TRUST THAT

Each day brings a new sunshine that no living being has complete control over.  We do have control over how we act in response to the changes that are always happening around us.  Nothing is static or even particularly predictable.  Your ability to accept the inputs of the day, process those inputs using your own wet-ware (brain including all the embedded moral, ethical and survival firmware) and take positive action is unique to the creatures living on this planet we must use it wisely.

My father Busty the Wise routinely reminded me of his observation “believe none of what you hear and half of what you see” .

March 11, 2009 Posted by | Thinking About Change | Leave a comment

Isn’t Change Great!!!

The universe as we know it changes and morphs every millisecond and we humans have very little control over the whole stinkin’ thing.  In spite of that, we higher thinking mammals have every bit of control over how we respond to all the changes around us. 

I am stoked by the opportunities that evolve with the massive changes occuring in the world today.  When stuff changes it’s time to sit back and renew.  Renew committments, Renew friendships, Renew personal goals, Renew thinking, Renew it all.

Between the media’s constant drumbeat of global economic meltdown and the new administration’s fear mongering let’s all get together and remind these sensationalists that in fact “Change Happens“.  Yesterday ain’t today and tomorrow is about how we respond to today.  Let’s change the language.  Replace the fear with hope.  I’m not saying sugar coat the realities of the challenges.  I am saying speak of the realities and of the opportunity. 

 Jump Into Change...Today

Take a step forward today…Renew the spirit and energy of yourself and those around you by using postive words and taking postive actions.  

Through this blog I’ll be relating my experiences with people and organizations that may be helpful in navigating the changing landscape.

February 20, 2009 Posted by | Thinking About Change | 1 Comment

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