Tag: Governance

Revisiting our Values

October 21, 2022

World Values Day, 20th October, is a day to celebrate all things values. With that in mind, let’s revisit why values are so important in an organizational context. Putting values at the centre of everything an organization does helps to create a strong and authentic brand. This is particularly relevant for service organisations where people are a core element of the proposition.

But the focus on values needs to be sincere and authentic rather than a lip service PR campaign. Witness the negative reaction to the McDonald’s marketing initiative of flipping its golden arches upside down on Facebook, Twitter, and Instagram in honour of International Women’s Day.

What are values?

So, if values are critically important, it is a good idea to remind yourself what they are. The word values now appears so commonplace that sometimes the meaning is forgotten. Core values are traits or qualities that represent deeply held beliefs. They reflect what is important to us, and what motivates us. For an organization, values define what it stands for and how it is seen and experienced by all stakeholders (customers, employees, service partners, suppliers, and communities).

Values act as guiding principles – as a behavioural and decision-making compass. In an organization, values (explicit or implicit) guide every person every day. They are the foundation for the way things work, providing the basis of the corporate culture.

For individuals, as well as organizations, values sit at the gateway between our inner and outer worlds. They describe what is fundamentally important and meaningful to us and relate directly to our sense of purpose and to our needs as individuals to survive and thrive.

Richard Barrett and colleagues differentiate between positive values and potentially limiting values. Honesty, trust, and accountability are positive values, whereas blame, revenge, and manipulation are potentially limiting. Positive values are described as virtues and are strengths that we can draw on to build resources and resourcefulness. Potentially limiting values emanate from the conscious or subconscious beliefs of the ego. In this chapter, we focus on positive values.

“Values are the ideals that give meaning to our lives that are reflected through the priorities we choose and that we act on consistently and repeatedly.” Brian Hall

In summary, people are shaped by what they care about, and where given a choice, will engage in activities that enable them to survive and thrive in any situation. We can live core values to good effect. We can use them to provide:
• a reference for decision making
• clarity and increased awareness about individual behaviours (self and others)
• an unambiguous environment for new employees to start off on the right track
• stories to build the heritage and folklore of the organization
• consistency – viewed from within or from the outside

The values-based customer

Research in this area over several years by Forrester confirms that customers explicitly consider company values such as employment and manufacturing practices, political and social stances, and commitment to certain causes or beliefs when choosing products to buy or brands to associate with.
Customers now believe that company values go beyond a tagline and are reflected in everything a firm does or says – from its hiring practices to strategic partnerships, to supply chain management and advertising tone.

52% of customers, across generations, consider company values explicitly when making purchases. The phenomenon applies across all income levels and nearly four in 10 values-based consumers have an annual income of $50,000 or less.

As you would expect, although consumers increasingly factor company values into their buying decisions, they consider these principles alongside elements like price, convenience, previous experience, and accessibility. We are not suggesting that, in the Values Economy, every single person makes decisions based on values above any other consideration.

However, Forrester’s research suggests that about one-fifth of consumers (across industry sectors) put values first and that the majority of consumers, when they perceive brands and products to be comparable in terms of price and quality, see values as a differentiator which can tip their purchasing decision.

The implications for this more values-based approach are profound. Potentially, what an organization stands for and believes in could become the buyer’s primary consideration, above the quality and value for money of the products or services offered.

So what?

Looking from the best case to the worst case, you can see for yourself the way you can harness core values for good or ignore core values at your peril. The research from Forrester reinforces what we have known for some time.

The key factor common to companies that have delivered sustained high performance – at the top of their market for 100 years or more – is a base of values that was strong enough to provide the employees of the company with a common bond – a purpose beyond profit.

SERVICEBRAND

At SERVICEBRAND Global we believe that values-driven service is the key to sustainable performance. It is quite simple although not easy to do. When done well, everyone who interacts with your organization, whether they are a customer, employee, service provider, investor or even a member of the local community, has a clear understanding of who your organization is and what you stand for. If you are starting out on your values journey, or wanting to bring to life the values you already have, why not see how SERVICEBRAND Global can help.

What is SERVICEBRAND Global?

August 19, 2022

“Success is a journey, not a destination. The doing is often more important than the outcome.”
Arthur Ashe

This month marks the 17th anniversary of the creation of my company, SERVICEBRAND GLOBAL Ltd. The SERVICEBRAND journey started with a classic, corporate, defining moment or series of moments. By way of background and context, in 2002, a major global facilities management company were looking for a senior leader to develop the account for a Big Four bank and their UK office portfolio.

A key criterion for the appointment was a five-star hotel industry background. And since I had successfully turned around a five-star hotel and country club, uniquely delivering three consecutive all-green balanced scorecards and receiving recognition within the company and industry wide. I was excited to be offered the opportunity to transfer my skills across sectors from hotels to the workplace environment.

The assignment was an all-round success, founded on implementing a hotel style service delivery model for the collection of service partner companies involved and their combined total of 5,000 employees.

Commercially, the account grew from an £8m turnover catering contract to a £150m turnover multi-services contract. Industry recognition was received by way of a CoreNet Global Innovation Award and a service partner Customer Experience award from the bank.

Both the facilities management company and the bank were keen to explore a co-owned joint venture arrangement to scale the business proposition and take it to the open market, targeting major global contracts. The small management team were set to become shareholders and the business plan revenue numbers were in the billions of pounds.

Defining moments

First, there was a change of the facilities management company UK CEO. The incoming CEO, who had arrived from the international division of the organization sent a lengthy introduction open email to all employees explaining how he was going to create a successful future for the company. Within a week, he had left the business over an alleged historic scandal and the company chose to ‘batten down the hatches’ to focus on the core catering business. The embryonic new business concept was shut down before its first breath and my role was made redundant.

“It’s not what happens to you, but how you react to it that matters.” Epictetus

The beginning

It was August 2005, and the above experience was the encouragement to set up, for want of a better term, a management consultancy business. The decision was based more on intuition than on a considered business plan and was informed by the following:

• a personal passion for customer service, the importance of front-line people and creation of admired brands.
• success in several senior leadership roles, both with large corporate organizations and smaller entrepreneurial companies.
• experience at Managing Director/General Manager level with a deep understanding of operational delivery and several specialist support functions, particularly Marketing and HR as well as Sales, Finance, Health & Safety, Property Management, Revenue Management, and others.
• a wide network of business connections.
• a realization that frustration with the way in which decisions were made in large corporate organizations kept being repeated.
• a desire to work with progressive service organizations who wanted to be leaders in their market or sector.

The business name came easily. It needed to indicate a focus on people delivering great customer service and the strength of an organization’s brand identity. It needed to have potential to scale internationally and, ideally, would be a name with a unique quality. SERVICE BRAND GLOBAL was born, and quickly became SERVICEBRAND GLOBAL, and the invented word ‘SERVICEBRAND’ was registered as a trademark.

Initially, it seemed like a good idea to offer support and advice to senior leaders of service sector organizations in a wide range of areas to improve their businesses, but it soon became clear that this ‘jack of all trades’ approach was not compelling when people were usually seeking a solution to a specific challenge or problem.

A three-month contract to lead a cultural transformation for the corporate real estate division of an investment bank for their London office provided some thinking space to develop a more coherent, packaged, or productised service offering, rather than basing the proposition on personal expertise, knowledge, and service.

The creative thinking process to develop and articulate the offer was a replay of the approach used in various leadership roles over the previous twenty years. Significant business impact and success had been achieved repeatedly so the task was to draw out the common threads of how this had been achieved.

Core themes

One strong core theme was a combination of theory and practice: understanding the theory which helped to underpin successful practical outcomes, applying theory in practice and, finally, understanding the relationship between the two.

Personal experience of working with various business models or frameworks (e.g., EFQM Excellence model, Hospitality Assured, IiP, and the Service Profit chain) had also been beneficial. The key insight was the value of having an overarching organization framework to support general management of the business instead of allowing an approach more reliant on individual functions and the organization structure.

These frameworks helped to join up the functions of business horizontally and vertically i.e., actively involving all members of the team and keeping them focussed on the priorities for the business as a whole. Other areas which had helped to create improved business performance were putting in place various common operating systems and processes including communication channels and employing methods to capture measurement and insight.

Evolution

The concept development process helped to identify that the first time the SERVICEBRAND approach had been used in its (almost) full form was at the City of London’s leading conference venue in 1996 (yet without knowing it) and then at a five-star hotel and country club. There was more conscious application with the facilities management company operating one of the Big Four bank’s UK offices portfolio.

In the seventeen years since the ‘beginning’, the SERVICEBRAND approach has been refined and developed alongside the use of a set of associated tools, some proprietary and others in collaboration with partners. Various projects have been delivered at different levels across industry sectors.

At one end of the scale, the framework has been applied in its entirety in large corporate organizations on a global or regional basis with a variety of workstreams over a two to three-year period. At the other end of the scale, much smaller, sometimes single location organizations have chosen to focus on one ‘Element’ of the SERVICEBRAND approach and perhaps even one specific tool e.g. 31Practices.

What all of the clients in these organizations have in common, is a progressive mindset and a recognition that a values-driven approach to a team of brand ambassadors delivering a memorable customer experience can be an immensely powerful way to achieve sustained performance. Both larger and smaller projects have received industry awards.

In 2018, the word SERVICEBRAND became trademarked in US and in EU.

It has been quite a journey so far, time flies when you are having fun. And there are still more adventures to be had with a retreat concept, a customer experience training program partnership and a global visual arts initiative all forming!

Values as a Competitive Differentiator

June 15, 2022

“Authentic brands don’t emerge from marketing cubicles or advertising agencies. They emanate from everything the company does…” Howard Schultz, Pour Your Heart into It: How Starbucks Built a Company One Cup at a Time

It is no secret that we live in an oversaturated market for many products and services. Every day, businesses and organizations compete for our attention. We are constantly bombarded by advertisements, product placement and subliminal messaging.

As a result, the majority of us forget a brand’s advertising attempts within three days of seeing it. The functionality of intelligent tools that let us search for whatever we need, whenever we need it, also plays a roll in this mass forgetting. We don’t need to remember where anything was or if it was good, because we have tools to access all that information.

So, if people aren’t really connecting to the branding and marketing for your products and services, how can you maintain their loyalty for the long term?

Setting up for success

Brand awareness can be complicated to measure correctly. Especially if you are unsure about what to measure in the first place, or how to properly extract meaningful insights from the data you gather.

Your connection to your customers and service users is about more than the product or service you are trying to sell them. People need a sense of feeling that they can connect with. They like to feel like their purchasing decisions matter and are more likely to support organizations whose values align closely with their own.

Do you know what your organization values? Is there a set of well thought out and simply defined values that are core to the way you do business? Critically, are those values communicated in a consistent way, not just verbally, but in every action and behaviour across the organization?

Benefits of knowing your Values

There is near limitless choice for customers. Anything we want we can get, and from multiple organizations.

We are motivated by story lines and remember them far longer, for the way they made us feel, than if we are told a series of facts about the product or service. The cost or functionality of a product or service can be replicated easily by competitors. When your organizational values are the foundation of every interaction your customers will have with you, they become a powerful differentiator which is not easily copied.

Consistency is key

Having values that set you apart is only as good as your ability to send that message to your customers and other stakeholders in a consistent way. The experience someone is having of your organization should reflect your values in action and behaviour and it should be the same at every point of service. As you can imagine, this is no easy task, but when your organization gets this right, it will help you to improve stakeholder loyalty and performance and drive sustained profitability.

Finding the flow

Imagine a time when everyone in your organization is in full alignment with your values. Your employees don’t have to wait or go through countless steps of approval before acting. They embody and live your organizational values in every moment of their working day. They are clear about the behaviours expected and what is not acceptable. They are trusted to do the right thing without micromanagement.

The key to achieving this outcome is alignment across the areas of Brand Identity, Employee Engagement and Customer Experience, supported by Systems & Processes and Measurement & Insight. This is the SERVICEBRAND approach which has delivered measurable success across a balanced scorecard of business measures for organizations in different sectors, of different sizes and in different geographies.

SERVICEBRAND

At SERVICEBRAND Global, we believe that your organizational values set you apart. We can help you figure out the values sitting at the heart of your mission and show you how to bring these to life with all stakeholders. When used well, values can build transform business performance. Why not see what we can do for you?

Why Measurement and Insight Matters

February 10, 2022

Measurement and insight can be defined as the effective and efficient use of data to inform the future development of the organization at all levels. The purpose of collecting this data, is to give the organization’s leaders the best possible picture of the impact being made by the organization.

To impact in this regard means to have a strong influence or effect on someone or something. Impact is often associated with measurement and reward in organizations, especially those following a golden rule. “What get measured, gets done.”

If you are not measuring the impact your organization is having, nor the impact of external factors acting on it, then, how can you possibly create a strategy to effectively navigate the complexities of the organizational world?

The Measurement Matrix

Creating a measurement strategy can sometimes feel overwhelming, planning a strategy for how you will measure the things that will create this strategy can also feel like extra and unnecessary work.

Don’t let the multitude of strategic measurement and insight tools put you off, it is far simpler to create a flexible measurement matrix that can change and shift as you do, while retaining the ability to measure the right data.

Correctly measuring all the data available about your organization will give you a good indication about whether you are currently where you want to be. We start the process by looking at the organizations primary objective. What is the overarching goal of the business?

Once you know the answer to this question you can hold it up next to the collected measurement data and see if you believe the numbers reflect your goal, if you are underperforming against it, or if you have knocked it out of the park.

Target setting

Once you know if your overall objective is being achieved or not, it is time to start setting smaller goals or targets to help you course correct or plot a course to greater future growth in the organisation.

These goals can be slightly abstract, but your main focus should be in setting goals that are evidencable and measurable. If for example, one of your business goals is to measure customer experience. You must design surveys and methods of interaction, that allow your customers to give honest and in-depth replies. It is not enough to do one Twitter poll and consider your measurement achieved.

Performance indicators

The next step in making the measurement matrix as valuable as possible, is identifying which Key Performance Indicators you will use to keep your organization on track. For example, in the service industry, keeping track of the number of rooms booked, or event tickets sold, versus the number of complaints. Comparing positive and negative aspects of business is a great way to track and measure performance.
When you set reducing the number of complaints as a KPI, you build a strategy that focuses on identifying customer issues and resolving them as a matter of priority so that they don’t continue to affect other customers’ experiences.

Metrics and Analysis

The next steps seem like the easiest, but often tend to be where organizations struggle, as they fail to connect the dots between all the data they have collected and what they should then do with it to improve their organization’s performance.

It is impossible to cover every single metric, but with more collection strategies, you have more building material at your disposal to create plans and frameworks to greatly improve what your business does.

How you choose to analyse the data, will also affect your strategic planning. You might have very different results between online surveys and in-store or on location ones. If you aggregate these insights together, no one gets the data they need to make well-informed decisions. So, it is important to organise your metrics in a way that lets you create tangible KPIs for specific areas of your business. A nuanced and targeted approach is required to maximise effective and efficient strategic development.

Insight

The last part of any effective measurement matrix is insight. You have decided what data you want to collect and have successfully gathered it. Now is the time to combine each area of the matrix to create a fluid measurement strategy that lets you track your process, adapt, and overcome challenges and sets markers for potential future growth and direction.

The strategy becomes a compass that points always towards your organizations key objective. When the matrix is well-designed, it becomes easy to gain insight and perspective on your organization. It will tell you when you aren’t on track and guide you back to your goal.

SERVICEBRAND GLOBAL

At SERVICEBRAND GLOBAL, we specialise in helping you plan your plan. We are strong supporters of measurement and insight as an aid to decision-making and accountability. It has never been cheaper or easier to collect data, and yet without strong leadership and understanding of the core objectives of the business, all of this information goes to waste in strategies that are too basic to accurately account for all the issues facing the organization. Let us help you get back on track.

Navigating Brand Identity

January 13, 2022

“Your brand is what people say about you when you are not in the room” Jeff Bezos

The terms ‘brand’, ‘branding’, and ‘brand identity’ are sometimes treated as interchangeable. The first ‘Element’ of the SERVICEBRAND approach is Brand Identity and we refer to this as the collection of all the brand elements that the company creates to describe its personality and character. The brand identity is what makes an organization instantly recognizable to different stakeholder groups (customers, employees, service partners, local communities etc), creates the connection with these stakeholders and determines how the organization is perceived.

Some leaders in organizations think that their brand is simply the name and logo. Of course, the name and logo are important parts of the visual identity and yet there is so much more to an organization’s complete brand identity. It consists of intangible elements such as the organization’s purpose and values as well as tangible elements such as visual identity and tone of voice. Ultimately, we think Jeff Bezos’ description above captures perfectly what a brand is.

Component parts

In practical terms, the Brand Identity is a combination of purpose/vision, values, brand attributes, unique positioning, SERVICEBRANDSignatures, visual identity and tone of voice. The starting point is to identify and articulate the organization’s purpose and values. The brand purpose or vision captures what the brand desires or promises to accomplish (usually for the buyer).

The organization can use positioning and differentiation to communicate the brand’s purpose and ultimately enrich the brand’s identity. And this purpose can transcend the functional purpose to also express the brand’s higher purpose or reason for being. The higher purpose suggests emotional and social benefits for the customer by choosing that brand. A strong purpose and values set the tone for the organization’s purpose and code of conduct.

The changing tide

In the past, it was commonly accepted that organizations owned their brand identity. The marketing function usually took the lead, deciding what the brand identity was and the used their marketing or public relations department/campaigns to ‘pump out’ directed messages to their target audience.

In the Values Economy, this is no longer the case and an organization’s brand identity is now co-owned by the various stakeholder groups e.g. customers, employees, service partner, local communities, investors etc. In the future, we believe that the most successful brands will not be focussed on direct control of brand messaging. Instead, they will invest energy in being true to their brand identity, led by their purpose and values. They will then focus on enabling their stakeholder groups to communicate how they feel about the brand with these stakeholders effectively acting as the marketing department.

“A brand is no longer what we tell the consumer it is—it is what consumers tell each other it is.” Scott Cook

Positive and Negative

When organizations have a strong brand identity, it gives them an edge of their competitors. When you successfully attract a customer or service user and give them a positive experience of your organization, they often become brand ambassadors, offering free marketing via social media and word of mouth, to encourage others to choose you as well.

Whether you put much time and attention into brand identity or not, customers and service users, will still get an impression from you, one way or the other. Considering the power individuals have in this day and age to influence others for or against you, it is well worth putting the time into creating a strong brand identity, one that raises your brand awareness in the minds of others, in a positive and lasting way.

When done well, a strong brand identity can generate a halo effect or a Midas touch, that makes launching new products or services much easier, as those that have already had a positive experience with your organisation are far more likely to trust you when it comes to new releases.

Your customers’ experience of your brand can also lead to damaging or negative effects. Once a brand is tarnished, customers and service users are far less likely to trust or engage with future products or promotions. This negative association can even lead organizations to rebrand and separate themselves from the core brand identity, consider Facebook’s recent name change.

SERVICEBRAND GLOBAL

Your brand lives in everything your organization does… whether you like it or not. If you treat your brand identity as a lip service campaign designed to attract people, but do not then offer consistency or substance, you will fail, sooner or later. At SERVICEBRAND GLOBAL, we help progressive leaders of organizations to create strong brand identities through careful examination of their purpose, vision, and values. From this we are able to create SERVICEBRANDSignatures, that set organizations apart from the competition. Your brand identity is what people say about you when you’re not there, so how important is this to you?

Alignment And Governance

December 9, 2021

The last in our blog series on alignment, looks at governance, and the way in which conflict often arises when organizations move away from their values, causing misalignment with their service users, customers, and employees.

Governance is an amalgamation of policies, systems, and structures, along with a strategic, operational framework that aligns organizational leadership to take action, so that they can make effective decisions with accountability.

People over profits

In order to be successful organizations, need to move away from quantitative governance, towards a more qualitative model. When the discussion is always centred on quantity, alignment is at risk.

A common model for defining corporate governance is to describe it as comprising of four pillars: the board of directors, management, internal auditors, and external auditors. Gaining alignment among these pillars is not easy, but it is possible when you live your organizational values. People always have a sense of authenticity about the organizations they interact with. If the governance is strong, values-led and aligned purposefully, that message will permeate employees at all levels and out to customers, service partners and local communities.

“To lead their companies for the benefit of all stakeholders.”

The statement is so simple; it is easy to overlook its profound impact. With this statement, the Roundtable CEOs are acknowledging the impact their organizations have on all stakeholders (customers, employees, service partners, communities, and investors/shareholders) and linking the value they provide to these stakeholders to the success of their companies, communities, and country.

They have committed to deliver value to customers, invest in employees, deal fairly and ethically with suppliers, and support the communities in which they work. This is quite a change from the profit and shareholder focussed approach which (in the extreme) takes advantage of customers, pays employees as little as possible for as much performance as possible, intimidates suppliers to provide more for less and uses communities and environments as resources to be exploited, depleted, and consumed.

Shared values

The people who live most purposefully and boldly embody their values, are not always the best able to teach that value back to others. There are repeating and noticeable trends of the effect of misalignment, anytime a major CEO leaves the company they built; consider Steve Jobs, leaving the company he built when the governance? fell out of alignment with his purpose, only him to be re hired 11 years later, after consistent profit falls. He may not have been the best able to articulate his purpose, but he lived it consistently and his passion to live purposefully, helped build Apple’s cult-like following.

Today, people pay a premium for Apple products, in part because they relate to the company’s purpose of enriching people’s lives. This example should serve as a reminder to any governing body, not to fall out of alignment with the vision, purpose, and values of your organization.

That is not to say, you must live completely unrestrained and give everything away! More, it is about finding the balance between the head (governance and profitability) and the heart (Values and purpose). This is where alignment is key, when you are able to find a way to communicate purposefully, the profits come as a result of practicing authentic purpose. Lead with the heart but keep the head on track.

Governance evolved

The world is ever changing, the rigid reactive structures of old are being broken away, in favour of more active and fluid processes. These frameworks are more fit for purpose in the way they allow for quick changes to be made when things aren’t going right. Having a governing board that is not accountable to anyone else, will never generate meaningful results.

The same is true, when a board spends all of its time in conflict over the outcomes of misalignment, poor public image, low profit, unhealthy workplace cultures etc. It’s tough work, but if there is a problem with outcomes, it’s important to examine the root cause of those issues, not just talk about the issues themselves. Don’t get mad at the rain, understand why it’s raining.

When done right, governing bodies will not be waiting for the next crisis, they’ll be actively tackling the issues, to build trust within the societies they sit, rooting out unethical behaviour and giving people faith in their purpose.

SERVICEBRAND

The SERVICEBRAND framework can support governing bodies because of the ‘whole organization’ approach we are able to provide. Starting with how the organization’s purpose and values inform everything that organization does (the good and the potentially limiting).

We can help you realign your organization, from the top down, across all service partners to provide the best possible customer or service user experiences. Tailor-made measurement and insight processes will cut away procedures that do not add value and implement effective communication, reporting and corrective strategies to ensure everyone knows how to be the best brand ambassador for your organisation.