Because there is no way in the world that I can know as much about your business as you do, many of my suggestions and ideas I present will be somewhat generic, which means it is up to YOU to take the ideas I present and figure out how to make them work in your company, in your specific market, with your customers, with your employees. If you will continually ask the three questions above every time I put up a slide, there is a good chance that you will uncover something that will help your business significantly.
What does this mean to me? How can I use this idea? What can I do right away?
Organization Effectiveness Audit Page 2 Be “Brutally Honest” Scale of 1 – 10
The Four – I’s• Ignorance• Inflexibility• Indifference• Inconsistency 2
How to avoid the Four I’s• Aggressive external market focus.• Ridiculously high level of member focus.• Keep the “Main Things” the main things.• Bullish on knowledge sharing and learning.• Teamwork / communication is mandatory – not optional.• Passion and commitment at all levels.• Foster a healthy paranoia. 1 - 10• Revel in change. 3
Cecil Van Tyul “It is all about people, people, people. You can kid yourself about a lot of things in your business, but at the end of the day it will always come down to people.”
The number one factor in increasing the level of highly satisfied and engaged MEMBERS in your credit union is…The level of highly satisfied and engaged EMPLOYEES in your organization. 4
Key Drivers of Member Satisfaction and Loyalty Financial Performance CR= 104.12% increase in profits Global study: 16 countries Tolerate 529 companies 15,589 respondents Quality P&S & Nothing Member Relationship Less CR= .404 Employee CR=.277 Satisfaction CR=.275 CR=.249 CR=.334 CR=.280 Empowerment Coaching High Standards CR=.285 CR=.371 CR=.365 Workshop CR=.191 CR=.247 Long-term Orientation Enthusiasm, Commitment, Training & Development Fair Compensation Page 4 Respect 1 - 10From: Practice What You Preach by Maister 4
Member satisfaction drives customer loyalty… and member loyalty drives profitability Evangelist 100% Zone of Affection I love you 90 80 A 5% increase in loyalty 70 Zone of among your best Indifference 60 members… Loyalty 50 I don’t care about you 40 30 Zone of Can produce a profit 20 Defection increase of 25% – 85%I hate you Terrorist Extremely Somewhat Slightly Very Dissatisfied Dissatisfied Dissatisfied Satisfied Satisfied Member Satisfaction NITB
Culture = CashActively disengaged employees can reduce revenues by up to 22%, while highly satisfied and engagedmembers can drive profits up by as much as a 189%
What do engaged employees look like?1. They give more discretionary effort.2. They consistently exceed expectations.3. They take more responsibility and initiative.4. They receive better customer service ratings.5. They offer more ideas for improvement.6. They promote and model teamwork.7. They volunteer more for extra assignments.8. They anticipate and adapt better to change.9. They persist at difficult work over time. Page 510. They speak well of the organization. 1 - 10 5
WOM = Your BEST form of advertising! 78.9% 23.4%
You MUST have a Referral PROCESSIdentify Refer Ideal IdealMember Member From John Jantsch: The Referral Engine
The Evergreen Project 10 year study of 160 top companies 40 distinct industries 200 management practices Winners, climbers, tumblers, losers Winners had an average Total Return to Shareholders of 945%... The Losers only averaged a TRS of 62%From: What (really) Works by Joyce, Nohria, Roberson 6
The Four Primary Practices: 1. A sharply focused, clearly communicated and well- understood strategy for growth. 2. Flawless operational execution that consistently delivers the value proposition. 3. A performance-oriented culture that does not tolerate mediocrity. 4. A fast, flexible, flat organization that reduces bureaucracy and simplifies work.From: What (really) Works by Joyce, Nohria, Roberson 6
The Secondary Management Practices: • Talent = find and keep the best people. • Key leaders show commitment and enthusiasm for the business. • Embrace strategic innovation. • Master the power of partnerships. Score yourself on the 1–10 scale for all eight practices on page 6From: What (really) Works by Joyce, Nohria, Roberson
Non-negotiable Standards + Fanatical Discipline Very Clear Expectations Specific and Measurable Goals Necessary Systems & Support Robust Communication Consistent Tracking of Performance Regular Performance Reviews Refuse to Tolerate mediocrity Page 7 1 - 10
Thank You If you have any questions at all please do not hesitate to send a note or call. My email address is: email@example.com My twitter address is: @awesomelysimple Please feel free to “friend” me on FBAlso, you might find value in the ideas I share in my blog. You can sign up for it at: www.blog.johnspence.com Lastly, these slides have already been uploaded to: www.slideshare.net/johnspence
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