Modernize Leadership: Engage and Empower

ML_EngageEmpower

In a previous post, I described how today’s management techniques reflect outdated assumptions of technology-enabled practices, human behavior, and the meaning of success. That’s why organizations must shift to what I’m calling Modernize Leadership.

I’m writing individual posts for each of the eight key changes required to modernize leadership. In this post, I’m examining the shift from:

Command and Control to Engage and Empower

Here’s some more information to better understand this shift:

Outdated Thinking
Here are some ways in which leaders must change how they view the world:

  • Leaders focus on assets such as products, customers, and cash, but don’t fully recognize the true value of employees. In many cases, employees are THE critical asset. As a matter of fact, engaged employees are the start to a virtuous cycle that leads to better financial results. It’s no surprise that companies that significantly outperform their peers financially have 1.6-times the number of engaged employees than do companies that underperform their peers.
  • Leaders often act as though the success and failure of their business is based solely on the decisions being made by their most senior people, so they focus a large portion of their time and energy on developing and vetting strategies. But all too often, strategies fail because of a lack of support and follow-through by employees who are unaware of what needs to be done, unable to do what it takes, or unwilling to support the change.
  • Leaders often respond to problems by putting in place new processes and stricter rules, while there is no ongoing mechanism for removing or simplifying those elements. Over time, the organization gets bloated with so many rules and regulations that employees feel little ownership for the success of the company. And the company loses its ability to adjust to new situations.
  • Southwest Airline’s founder and former CEO Herb Kelleher captured thinking about Engage and Empower when he said:

“If you create an environment where the people truly participate, you don’t need control. They know what needs to be done and they do it. And the more that people will devote themselves to your cause on a voluntary basis, a willing basis, the fewer hierarchies and control mechanisms you need.”

Modernized Leadership Actions
Here are some ways in which leaders should act based on a modernized perspective:

  • Influence better decisions. Leaders need to be less focused on the small number of decisions that they make, and more focused on the myriad of decisions that they influence across their organizations. How can you help employees make better decisions?
  • Measure employee engagement. If you measure other assets, why not employee engagement? But only do it if you plan on taking action on what you find. Consider using the Temkin Employee Engagement Index.
  • Master the Five I’s. How can you engage employees? Learn and master the five employee engagement competenciesInform, Inspire, Instruct, Involve, and Incent.
  • Assume positive intent. Instead of trying to keep employees from making mistakes by limiting their span of decision-making, find more ways to enable them to use more of their own judgement. Start by believing that your employees can (in almost all cases) be trusted—and train them.
  • Activate middle managers. It’s hard to get any group of employees to change their behavior when their managers are still reinforcing old processes, measurements, and beliefs. When you’re rolling out changes, don’t consider these efforts as being successful until your middle managers are fully on board. This may take some extra work, but the initial investment in time and effort will pay dividends.

The bottom line: Engage and empower your employees.

Intensify Emotion Provider Showcase

IntenisfyEmotion2Our research shows that emotion has a significant impact on customer loyalty, yet is almost entirely ignored. To help companies recognize and tap into the power of customer emotion, we started the “Intensify Emotion” campaign.

As part of this campaign, we’ve created the Intensify Emotion Provider Showcase as an opportunity to highlight some of the vendors who are helping their clients discuss, measure, enhance, and design for emotion. Vendors submitted nomination forms to Temkin Group describing the ways in which they help clients emotionally connect with customers.

Given the complicated nature of human emotions, there is no single path companies must follow to engage customer emotions; rather there are any number of possible strategies and methods companies can adopt. To help companies learn about some of the concrete ways they can improve emotions, we wanted to highlight a sample of cutting-edge vendors who are using proven, scalable strategies to Intensify Emotion across organizations. For example, some vendors use facial or voice recognition technologies to identify customer emotions, some create feedback mechanisms that specifically measure emotions, some design for sensory cues that trigger emotions, and others focus on amplifying customer emotion throughout the company.

CONGRATULATIONS to the companies that were selected into the showcase based on the innovativeness of their use cases and the scalability of their products for a large organization (the remainder of this post was directly contributed by the vendors):

  • audEERING GmbH (www.audeering.com): audEERING develops intelligent audio analysis algorithms and provides consulting services to help you integrate next-generation audio analysis technology into your products and your workflow. audEERING’s main area of expertise is automatic emotion recognition from speech signals. Its technology is based on decades of solid, published scientific evidence and uses audEERING’s popular open-source speech and emotion analysis framework openSMILE as core. Here’s the company’s use case:
    • Callyser – Automatic Emotion Recognition from Speech
  • BigEars Ltd (www.bigears.com): BigEars are award-winning world leaders in interactive voice feedback surveys. Founded in 2004, BigEars helps businesses become more profitable by connecting them to their customers in a way not previously possible. Our unique feedback application, Customer Radio, brings feedback to life by making the voice of the customer easy to capture, listen to and share. With BigEars every number has a human experience behind it, giving you answers to questions you never knew to ask.Here are the company’s use cases:
    • Cabot Financial
    • Wellington City Council
  • Cogito (www.cogitocorp.com): Cogito Corporation develops and delivers behavioral analytics software that provides sales, service and care management professionals with the real-time emotional intelligence needed to improve sales results, deliver amazing customer experiences and enhance quality of care. By applying validated behavioral science through artificial intelligence and machine learning, Cogito helps the world’s most successful enterprises enhance employee productivity and better care for their customers. Backed by Romulus Capital and Salesforce.com, Cogito is headquartered in Boston, MA. Here are the company’s use cases:
    • Building Emotional Connections On Every Member Phone Conversation 
    • Delivering Better Care Through Real-time Emotional Intelligence
    • Artificial Intelligence Enhances Negotiation Skills
  • Confirmit (www.confirmit.com): Confirmit enables organizations to develop and implement Voice of the Customer, Employee Engagement and Market Research programs that deliver insight and drive business change. Confirmit’s clients create multi-channel, multi-lingual feedback and research programs that engage customers, empower employees, and deliver a compelling respondent experience. Confirmit’s solutions are the most secure, reliable and scalable in the world, and provide technology and expertise that deliver high Return on Investment to leading companies across a range of industries. Here are the company’s use cases:
    • Giving the Customer a Seat in the Boardroom 
    • Sony Mobile Corporation: Emotion in Social Media
    • Uncovering Emotion in B2B Sales and Support
  • CrowdEmotion (www.crowdemotion.co.uk): CrowdEmotion is a cloud-based emotion intelligence company that measures emotion in a way that is scalable, insightful and cost-effective. We are a dedicated team on a mission to collect and curate the world’s emotions to further human understanding. To do so, we provide a cloud-based platform where academics and industry can extract emotions from consumer devices to infuse them into the business in a relevant way. Here are the company’s use cases:
    • The Science of Engagement 
    • BBC Worldwide: Tackling the Elephant
  • Fiveworx (www.fiveworx.com): Fiveworx is a customer engagement software platform that was purpose-built for the energy sector. Our custom-built email marketing and marketing automation software uses persona-based messaging and journeys (derived from proprietary polling of 80,000 Americans on their opinions, behaviors and attitudes around energy and environment) to tap into energy customers’ deeper emotional drivers and engage and motivate them to act, increasing customer participation in utility programs, products and services; improving customer satisfaction, and delivering energy savings. Here’s the company’s use case:
    • Alliant Energy in Wisconsin takes utility customer engagement to a new level
  • Man Made Music (www.manmademusic.com): Man Made Music is a strategic music and sound studio. We score entertainment and brand experiences by creating unique sonic identity systems that can be woven through brand touchpoints – communications, devices, customer support and immersive environments. Because people have instinctive and visceral emotional reactions to music and sound, our work helps brands efficiently and effectively convey meaning and strengthen emotional connections with their audiences, by providing more familiar and desirable brand experiences. Here are the company’s use cases:
    • Using Sonic Identity to Better Connect Across Touchpoints
    • Using Sonic Identity to Galvanize People Around an Organization’s Mission
    • Using Sonic Identity to Ignite Emotion in Immersive Environments: IMAX
  • Mattersight (mattersight.com): Mattersight’s mission is to help brands have better conversations with their customers. Using a suite of innovative personality-based software applications, Mattersight can analyze and predict customer behavior based on the language exchanged during service and sales interactions. This insight can then facilitate real-time connections between customers and the agents best capable of handling their needs. Fortune 500 enterprises rely on Mattersight to drive customer retention, employee engagement and operating efficiency. Here are the company’s use cases:
    • Predicting NPS outcomes for 100% of conversations through measuring emotions
    • Fortune 20 healthcare leader slashes costs in call-center through better emotional connections

Details of Intensify Emotion Providers

Here are the detailed submissions from the vendors (we did not edit these): Read more of this post

(Billion) Dollar Shave Club Highlights Value-As-A-Service

Unilever agreed to purchase Dollar Shave Club for $1 billion. The five year old company built a direct-to-consumer subscription razor blades service and expanded its offerings to include its own brand of shaving cream and after-shave lotion. Its 2015 revenues were $152 million.

My take: Wow, that’s a lot of money. Why would Unilever spend so aggressively on this young company? Because it’s a shining example of one of the key CX trends we’ve highlighted called Value-As-A-Service (VaaS). Here’s how I described this growing trend…

As consumers get comfortable with companies like Uber and AirBnB and use more iTunes apps and cloud-based applications, they are being trained to pay for things as they need them. The notion of buying something that you may or may not use in the future is becoming outdated. In 2016, we expect this consumer behavior to push more companies to break apart their offerings into bite-sized pieces. As this happens companies will need to earn loyalty more frequently and ensure that customers get value from the things that they purchase.

VaaS will require companies to build new skills, including:

  • Developing simplified offerings
  • Providing subscriptions
  • Ensuring customer value, not closing deals
  • Tapping into rich customer behavioral data
  • Accelerating the pace of learning and adjusting

Is Dollar Shave Club worth $1 billion? I have no idea. But if this acquisition helps Unilever tap into the VaaS trend, then I think its investors will be happy.

The bottom line: All companies need to prepare for VaaS

 

Report: Five C’s of Mobile VoC Disruption

1607_MobileVOCDisruption_COVERWe just published a Temkin Group report, Five C’s of Mobile VoC DisruptionBest Practices for Embracing the Power of Mobile in Your Voice of the Customer Program.

As mobile continues to grow in importance, companies will need to renovate their voice of the customer (VoC) programs. Why? Because mobile is more than just another communications channel – it is transforming the way that companies and customers interact. To help companies modernize their VoC programs to account for this increase in mobile usage, we’ve identified the key areas in which mobile is different from other channels, what we call the “Five C’s of Mobile VoC Disruption: “Condensed, Comprehensive, Current, Conversational, and Contextual. These disruptive characteristics will force companies to redefine how they capture, share, and act on customer insights. We’ve identified more than 20 best practices that span all areas of a VoC program, including soliciting in-the-moment feedback for key interactions and accelerating the sharing of useful insights. In order to use mobile successfully, companies need to evolve through three stages of change: 1) Mobile-Enabled, 2) Mobile-Adjusted, and 3) Mobile-First.

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Here’s an overview of the Five C’s:

5CsOfMobileVoC

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USAA, Regions, and Amazon Top 2016 Temkin Web Experience Ratings

For the third straight year, USAA took the top spot in the Temkin Web Experience Ratings. Based on a study of 10,000 U.S. consumers, the 2016 Temkin Web Experience Ratings examine 257 companies across 20 industries (see full list of companies (.pdf))You can see all of the company data on the Temkin Ratings website.

Download dataset for $295 (download sample file (.xls))

***See how your company can reference these results
or display a badge for top 10% and industry leaders***

USAA earned the top spot for its banking business, followed by Regions Bank and Amazon.com tied for the second spot. USAA was also in the top 10 with its insurance and credit card businesses, along with Amazon Kindle business, Capital One 360, QVC, TD Bank, and credit unions.

Health Net earned the lowest Temkin Web Experience Ratings followed by Comcast (TV service and Internet service), Days Inn, Fujitsu, Compaq, Motel 6, Medicaid, Cox Communications, and Charter Communications.

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Here are some more highlights from the 2016 Temkin Web Experience Ratings: Read more of this post

Resources To Prepare For Your CX Certification

ccxp_logoI’m extremely proud to be a Certified Customer Experience Professional (CCXP). One of the reasons is that this certification encourages CX professionals to build and maintain their expertise at a high level, which will raise the overall quality of CX across organizations. So my hope is that more qualified CX professionals will join the ranks of CCXPs.

If you’re thinking about going for your certification, check the requirements and resources on the CCXP site. If you’re qualified, then you’ll need to take a test that examines your knowledge across six areas. To help prepare for that examination, you can find posts on this blog that correspond to those elements:

How should you use this material? I suggest that you look through the CCXP exam blueprint and identify which of the six areas you are least comfortable with. Then spend time looking through our content in that area.

The bottom line: Good luck with your CCXP certification!

 

Report: State of Employee Engagement Maturity, 2016

1607_StateOfEE2016_COVERWe just published a Temkin Group report, State of Employee Engagement Maturity, 2016. Here’s the executive summary of this annual review of employee engagement activities, competencies, and maturity levels for large companies:

Engaged employees are critical assets for any customer experience effort. As engaged employees are critical assets, it’s not surprising our data shows that customer experience leaders have more engaged employees than their peers. To understand what companies are doing to engage their employees, we surveyed more than 150 large companies and compared their responses with similar studies we’ve conducted in previous years. We found that two-thirds of companies survey their employees at least once a year, but that less than half of executives consider it a high priority to act on the results of that survey. We used Temkin Group’s Employee Engagement Competency & Maturity (EECM) Assessment to gauge the maturity levels and efforts of these companies across our five competencies, called the “Five I’s of Employee Engagement:” Inform, Inspire, Instruct, Involve, and Incent. We found that only 12% of companies have reached the top two levels of maturity, Enhancing and Maximizing, which is a drop from 2015. The lack of a clear employee engagement strategy remains the number one obstacle that companies face. We also compared companies with above average employee engagement maturity to those with lower maturity and found that employee engagement leaders enjoy better financial results than their counterparts with less engaged workforces.

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Here’s one of the 17 graphics:

1607_EECompetenciesMaturity

Here’s a link to the 2015 study.

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The bottom line: Companies should invest more in employee engagement.

Report: Economics of Net Promoter Score, 2016

1606_EconomicsofNetPromoter_COVERWe just published a Temkin Group report, Economics of Net Promoter, 2016. Here’s the executive summary:

Net Promoter® Score (NPS®) is a popular metric that companies use to analyze their customer experience efforts, but how does it actually relate to loyalty? We asked thousands of consumers to give an NPS to 294 companies across 20 industries, and then we examined the connection between NPS and four key areas of loyalty. We found that compared to detractors, promoters are more than five times as likely to repurchase from companies, more than seven times as likely to forgive companies if they make a mistake, and almost nine times as likely to try new offerings from companies. Our research also shows that promoters recommend a company to an average of 3.5 people. The following analysis provides detailed loyalty data of promoters, passives, and detractors across 20 industries: airlines, auto dealers, banks, computer and tablet makers, credit card issuers, fast food chains, health plans, hotel chains, insurance carriers, Internet service providers, investment firms, major appliance makers, parcel delivery services, rental car agencies, retailers, software firms, supermarkets, TV service providers, utilities, and wireless carriers. Ultimately, if a company wants to benefit from using NPS as a key metric, it must focus on improving customer experience, not obsessing over the metric itself.

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Here’s one of the 12 graphics in the report, which shows the average loyalty differences for promoters, passives, and detractors across all industries:NPSEconomicsOverview

The report provides this loyalty data for promoters, passives, and detractors for 20 industries: airlines, auto dealers, banks, computer and tablet makers, credit card issuers, fast food chains, health plans, hotel chains, insurance carriers, Internet service providers, investment firms, major appliance makers, parcel delivery services, rental car agencies, retailers, software firms, supermarket chains, TV service providers, utilities, and wireless carriers.

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See our VoC/NPS resource page, which includes great resources for creating a successful NPS program. You mat also want to see our latest NPS Benchmark Report with NPS data on 291 companies.

The bottom line: Promoters are much more valuable than detractors.

Net Promoter Score, Net Promoter, and NPS are registered trademarks of Bain & Company, Satmetrix Systems, and Fred Reichheld.

USAA and Publix Top 2016 Temkin Customer Service Ratings

USAA earned the highest score in the 2016 Temkin Customer Service Ratings for the fourth year in a row. These Ratings evaluate the customer service of 277 companies across 20 industries based on a study of 10,000 U.S. consumers (see .pdf with full list of companies). You can see all of the company data on the Temkin Ratings website.

Download dataset for $295 (download sample file)

***See how your company can reference these results
or display a badge for top 10% and industry leaders***

USAA earned the top spot this year for its banking business with a 74% rating, and Publix came in a close second with a rating of 73% In addition to its banking business, USAA also placed in the top ten for both its insurance business and its credit card business. USAA and Publix were joined in the top 10 by True Value, credit unions, QVC, H-E-B, Wawa Food Markets, and Save-a-lot.

Comcast, meanwhile, earned the lowest score in the Temkin Customer Service Ratings for the third straight year. Once again, the company received the two lowest scores in the Ratings, one for its TV service business and one for its Internet service, business both of which received a score of 31%.. Comcast was joined in the bottom by GM, Charter Communications (for both Internet service and TV service), Health Net, Time Warner Cable (for both Internet service and TV service), AT&T, Motel 6, and Spirit Airlines.

1606_TCSR_HighestLowest1606_TCSR_IndustryRanges

Here are some additional highlights from the 2016 Temkin Customer Service Ratings: Read more of this post

Report: The State of the CX Management, 2016

1605_StateOfCXMgt16_COVERWe just published a Temkin Group report, The State of the CX Management, 2016. This is the seventh annual benchmark of CX activities, competencies, and maturity levels.  Here’s the executive summary:

For the seventh straight year, Temkin Group surveyed large companies to evaluate the state of their Customer Experience (CX) management. This year we found an abundance of CX ambition and activity. Most companies have a CX executive leading the charge, a central team coordinating significant CX activities, and a staff of six to 10 full-time CX professionals. Temkin Group has identified four CX core competencies that companies must master if they want to become customer-centric: Purposeful Leadership, Compelling Brand Values, Employee Engagement, and Customer Connectedness. Using Temkin Group’s CX competency and maturity assessment, we found that only 10% of companies have reached the highest two levels of customer experience, and companies are weakest in the Compelling Brand Values competency. We additionally compared CX laggards with CX leaders and discovered that the leaders have stronger financial results, have more senior executives leading the company-wide CX efforts, have more full-time CX employees, use more analytics, and have more support from senior leaders. This report also includes an assessment that companies can use to benchmark their CX efforts and capabilities.

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Temkin Group’s Customer Experience Maturity Model uses six stages of CX maturity based on the four customer experience core competencies. Here’s what we found when 210 companies completed the assessment:

1606_CXMaturity

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2016 Temkin Experience Ratings: 20 Industry Snapshots

Temkin Experience Ratings

We released the 2016 Temkin Experience Ratings that ranks the customer experience of 294 companies across 20 industries based on a survey of 10,000 U.S. consumers. Here’s a link to FAQ’s about the Ratings.

As a follow-up, we published blog posts that examine the results for each of the 20 industries. You can see links to all of those industry snapshots below:

1606_TxRIndustries> Airlines
> Auto Dealers
> Banks
> Computers & Tablets
> Credit Card Issuers
> Fast Food Chains
> Health Plans
> Hotels
> Insurance Carriers
> Internet Service Providers
> Investment Firms
> Major Appliances
> Parcel Delivery Services
Rental Car Agencies
> Retailers
> Software Firms
> Supermarkets
> TV Service Providers
> Utilities
> Wireless Carriers

Temkin Ratings websiteYou can see the ratings of all companies on the Temkin Ratings website

Temkin Group is Coming to Australia… Join Us!

TGAustralia

For years, I’ve been getting emails asking “when will Temkin Group come to Australia?” We’ve wanted to go for a while (for both personal and professional reasons), but it just hasn’t worked with our schedules.

Well, it’s finally happening. Aimee, Karen, and I will be heading to Australia in August!

Do you want to see us while we’re there? Here are some opportunities:

  • Sydney, 3 August: Workshop: CX Leadership Bootcamp (AU$1495)
    Register for this unique learning opportunity. During this one-day intensive Temkin Group workshop, attendees will learn leading edge approaches to building a customer-centric culture and designing experiences that create lasting memories with customers. This hands-on bootcamp includes lectures, self-assessments, and small group exercises. You will be able to take many of the exercises and tools that we use in the session and use them within your organization.
  • Melbourne, 8-9 August: Conference: Customer Experience Tech Fest 
    Join me at this exciting conference where I will deliver a keynote address on how to infuse emotion back into customer experience. Come see my first speech in Australia! I’m looking forward to the entire event and hearing the other great speakers, as the agenda looks fantastic.
  • Melbourne, 11-12 AugustWorkshop: Mapping & Improving Your Customers’ Journey (AU$2595)
    Register for this unique learning opportunity. During this two-day Temkin Group workshop (which regularly sells out in the U.S.) attendees will learn how to master a very important customer experience tool, customer journey mapping. During this hands-on experience, attendees will go through the process of creating portions of a customer journey map. You will be able to use Temkin Group templates within your organization after the workshop.

We have some limited availability to work with companies beyond these times, so send us a note (info@temkingroup.com) if you’re interested in us helping your CX efforts. Some good ways to leverage our visit is to have an interactive discussion with your leadership team, deliver an educational speech, or review your CX plans. We can even deliver an in-house workshop.

We’re looking forward to seeing our Australian friends in August!

UPS Earns Top Customer Experience Ratings for Parcel Delivery Services

Temkin Experience Ratings

We recently released the 2016 Temkin Experience Ratings that ranks the customer experience of 294 companies across 20 industries based on a survey of 10,000 U.S. consumers.

Of the 4 parcel delivery service companies we looked at, UPS earned the highest score for the third year in a row with a rating of 70%, putting it in 51st place overall out of 294 companies across 20 industries. FedEx came in second for the third year in a row with a rating of 68% and a rank of 69th overall. U.S. Postal Service came in third place and DHL received the lowest score in the industry by a significant margin. DHL has been the lowest scoring parcel delivery company for the past five years.

1605_Parcel_Rank

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Whirlpool and Samsung Earn Top Customer Experience Ratings for Major Appliances

Temkin Experience Ratings

We recently released the 2016 Temkin Experience Ratings that ranks the customer experience of 294 companies across 20 industries based on a survey of 10,000 U.S. consumers.

Of the 10 major appliance companies we looked at, Whirlpool earned the highest score with a rating of 60%, putting it in 153rd place overall out of 294 companies across 20 industries. This is Whirlpool’s third win in the five years since appliances were first included in the Ratings, and this year, it is the only major appliance maker to earn a score above a “poor” rating (above 60%).

Samsung, meanwhile, came in second place in the industry with a rating of 59% and a rank of 166th overall. At the other end of the spectrum, Fujitsu not only received the lowest score of any major appliance maker for the second year in a row, it also received the lowest score of any company in the entire Ratings. Its rating of 29% put it in 294th place overall out of the 294 companies we looked at.

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Toyota and Mercedes-Benz Earn Top Customer Experience Ratings for Auto Dealers

Temkin Experience Ratings

We recently released the 2016 Temkin Experience Ratings that ranks the customer experience of 294 companies across 20 industries based on a survey of 10,000 U.S. consumers.

Toyota and Mercedes-Benz deliver the best customer experience amongst auto dealers, according to the 2016 Temkin Experience Ratings, an annual ranking of companies based on a survey of 10,000 U.S. consumers.

Out of the 20 auto dealers included in this study, Toyota earned the highest customer experience score with a rating of 66%, which put it in 89th place overall out of 294 companies across 20 industries. Mercedes-Benz came in a close second with a 65% rating and an overall rank of 100th.

Toyota is no stranger to the top; it has been the highest-scoring auto dealer for three out of the past five years and come in second place the other two years. Mercedes-Benz, on the other hand, has historically stayed in the middle of the pack, ascending to the top this year by virtue of being one of only three companies whose scores improved over the past year. The other two companies whose ratings went up since 2015 are Kia and Audi.

At the other end of the spectrum, Volkswagen received the lowest score in the industry with a rating of 44%, which put it in 278th place overall. Volkswagen’s score tumbled a dramatic 17 percentage points over the last year—the biggest decline of any company in any industry.

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