Employee Ambassadorship Ii, July, 2009

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This presentation details the linkage and behavioral impact of employee commitment to the enteprise, to the company\'s product and service value proposition, and to customers. It also points out key …

This presentation details the linkage and behavioral impact of employee commitment to the enteprise, to the company\'s product and service value proposition, and to customers. It also points out key differences between employee ambassadorship (advocacy) and employee engagement, which has less customer focus.

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  • Staff and customers agree that the functional elements of delivery are well-performed. .. They disagree …in the effect, i.e. the level of expectation, importance and impact, of these elements. Customers consider the emotional, relationship and other intangible aspects of value delivery – trust, communication, interactive/collaborative components of service, anticipation of needs, brand equity, etc. – much more important, and more leveraging of behavior, than the functional aspects. Customers see the functional aspects of delivery as more basic and expected, in other words one-dimensional and non-differentiating. Sharing gaps with staff can create a real awareness about what is working and what is not working with customers. (1) Including staff give employees voice., opinions matter, which in turns helps trust to grow between the company and staff. (2) Enables management to learn about specific process areas where there is disconnect between what staff perceives and what customers perceive. (3) Helps pave the way for staff buy-in and support of new initiatives and changes, on behalf of customers, that may affect staff, directly or indirectly.   Customer support groups consider meeting defined service levels their highest priority, while relatively few identify generating revenue and optimizing customer retention as key goals. Competitors don’t have this kind of insight.

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  • 1. Strengthening Bonds Driving Stakeholder Commitment © 2007 Harris Interactive Employee Engagement and Ambassadorship: How to Achieve “Wow” Customer Value Delivery Building Employee Commitment to the Company’s Product/Service Value Promise, the Organization, and the Customers Michael Lowenstein, PhD CMC Senior Vice President and Senior Consultant Harris Interactive Stakeholder Relationship Consulting David Smallen Senior Vice President and Senior Methodologist Harris Interactive Advanced Methodology
  • 2. Our Perspective and Role at Harris Interactive Stakeholder Relationship Consulting
    • Understanding, and helping clients leverage, what drives stakeholder commitment . Commitment is essential behavior because it is closely linked to key customer/financial metrics
    • Stakeholders are principally customers (prospective, current, at risk, and former), employees, and channel partners
    • Based on vast research experience in multiple b2b and b2c business sectors, we have identified behavioral similarities, as well as differences, between these stakeholder groups
    • Harris Interactive Stakeholder Relationship Consulting has developed a suite of approaches to support clients’ goals in building and sustaining stakeholder commitment, addressing each stakeholder group’s attitudes and behavior, on either an independent or integrated basis.
  • 3. Harris Interactive Stakeholder Relationship Consulting Concept & Model of Customer and Employee Commitment Strengthening Bonds & Building Relationships HARRIS INTERACTIVE Loyalty
  • 4.
    • EMOTIONAL Based on Trust
    • Sense of personal relationship with brand or company
    • Reinforced by service experiences
    • Supported by customer touch points
    • RATIONAL
    • Based on Satisfaction
    • Relationship based on meeting functional expectations
    • Reinforced by ongoing performance quality
    • Value for the money
    RATIONAL CONNECTION EMOTIONAL CONNECTION Defining Rational and Emotional Bonds For Customers
  • 5.
    • EMOTIONAL Based on Trust and Commitment
    • Sense of personal relationship with company
    • Participation and contribution, belief in direction
    • Alignment with culture and values
    • Opportunities for advancement and growth
    • Recognition
    • Job satisfaction
    • RATIONAL
    • Based on Satisfaction
    • Salary and benefits
    • Safety and environment
    • Opportunities for advancement and growth
    RATIONAL CONNECTION EMOTIONAL CONNECTION Defining Rational and Emotional Bonds For Employees
  • 6. Linkage of Stakeholder Groups
    • Customers who actively (vocal, level of favorability, reduced consideration set, etc.) express their personal commitment to a supplier can be either strongly positive (advocates) or negative (saboteurs).
    • Employees , similarly, can significantly impact customer loyalty behavior toward their employer through a range of attitudes and behaviors on behalf of the brand, company and customer. These attitudes and behaviors, like customers, range from highly positive to highly negative.
  • 7. Connection of Employee Attitudes and Beliefs to Customer Behavior HARRIS INTERACTIVE Loyalty
  • 8. The Role of People in Leveraging Behavior… Why They Can Be So Critically Important 70% 41% 68% … of customers LEAVE because of poor employee attitude … of customers are LOYAL because of a good employee attitude … of customer brand perception is determined by experiences with PEOPLE UK retailer: 1% increase in employee commitment = 9% increase in monthly sales Enterprise IG Source: Parkington and Buxton, Study of the US Banking Sector, Journal of Applied Psychologyy Source: MCA Brand Ambassador Benchmark Source: Ken Irons, Market Leader
  • 9. Further Proof Points of Employee Attitude/Action Linkage to Customer Behavior
    • Northwestern University : Study in hotel chain showed that, for ‘The extent to which employees try to satisfy customers’, a 10% increase in this factor resulted in a 22% increase in customer spending per hotel visit.
    • Sears : Study in 800 stores showed that a 5 percent documented improvement in employee attitudes toward their jobs and commitment to the company directly resulted in a 1.3% increase in customer perceptions toward the retailer and, in turn, a .5% increase year-over-year revenue.
    • Royal Bank of Canada : Studies have shown that level of employee commitment accounts for 60% to 80% of bank customer satisfaction; and 40% of the difference in how customers view RBC’s services can be linked directly to their relationship with bank staff.
  • 10. Mirroring Research: Correlating Employees’ Perceptions of Value Delivery to Those of Customers HARRIS INTERACTIVE Loyalty
  • 11. Employee ‘Mirror’ Research: Customer-Supplier Perceptual Gap Profiling
    • Valuable staff debriefing device
    • Counterpoint for customer research findings; adds significant, unique insight
    • Alignment determination is foundation for training and process improvement
    • Can be utilized for employee incentive and motivation programs
    • Effective for staff communication continuity
  • 12. Measuring Customer and Staff Alignment Significant misalignment * Based on % 6/7 performance ratings on a 7-point scale
  • 13. Customer Need Importance Perceptual Gaps Relative Importance Of Issue Actual vs. Perceived Customer Needs
  • 14. Nine Employee Ambassadorship Best Practices
    • Build a climate of trust and authenticity
    • Train, train, train (and cross-train in customer sensitivity and value proposition)
    • Make certain everyone has a career path
    • Provide frequent evaluations/contribution reviews
    • Seek to inform, seek to debrief, and be transparent
    • Recognize and reward customer-focused initiative
    • Don’t just ask employees what they want, provide it
    • By all means, have fun
    • Hire the ‘right’ employees in the first place
    • Source: Customer WinBack , Jill Griffin and Michael Lowenstein
  • 15. Essence of Employee Ambassadorship
    • “ You have to treat your employees like customers. When you treat them right, they will treat your outside customers right. That has been a powerful competitive weapon for us.” – Herb Kelleher, Co-Founder and former Chairman and CEO, Southwest Airlines
    • “ We’re talking about a change that puts the people in organizations above everything else. When a company puts its people first, the results are spectacular. Their people are inspired to provide a level of service that truly comes from the heart. We’re not saying choose your people over your customers. We’re saying focus on your people because of your customers. That way, everybody wins.” – Hal Rosenbluth, former CEO, Rosenbluth International (now part of AmEx Travel-Related Services); co-author of The Customer Comes Second
    • “ We believe that customer service shouldn’t be just a department, it should be the entire company. If you get the culture right, most of the other stuff – like great customer service, or building a great long-term brand, or passionate employees and customers – will happen naturally on its own .” – Tony Hsieh, CEO, Zappos
  • 16. Defining the Employee Ambassador Research Framework HARRIS INTERACTIVE Loyalty
  • 17. Employee Research Approaches Employee Satisfaction, Values, and Loyalty Employee Engagement and Alignment Employee Commitment and Ambassadorship (Advocacy) Employee Attitudes and Behaviors Research
  • 18. Definitions of Employee Research Concepts and Methods
    • Employee Satisfaction and Loyalty – Identifies employee attitudes and behaviors leading to job satisfaction and employer loyalty
    • Employee Engagement and Alignment – Identifies employee attitudes and behaviors leading to agreement with, and belief in, overall company mission and objectives, as well as ‘fit’, or alignment, and productivity within organizational culture
    • Employee Ambassadorship – Identifies the most active level of employee commitment to the company’s product and service value promise, to the company itself, and to optimizing the customer experience. It is linked to, but distinctive from, the productivity and empowerment elements of employee satisfaction, engagement, and alignment research because its emphasis is building customer bonds through employee interaction.
  • 19. Customer Commitment and Advocacy Optimizing Customer Experience and Relationships Linking Customer and Employee Commitment to Business Results Strong Correlation Weak and Intuitive Correlation Customer Loyalty TQ and Satisfaction Employee Commitment and Ambassadorship Employee Engagement and Alignment Employee Satisfaction & Loyalty C U S T O M E R R E S E A R C H E M P L O Y E E R E S E A R C H Now Now 1990’s 1990’s 1980’s and earlier 1980’s and earlier
  • 20. Many Ways to Define Employee Engagement
    • Analysis conducted by The Conference Board in 2006 showed that, among twelve leading engagement research companies, there were 26 key drivers, of which eight were common to all:
    • - Trust and integrity – How well do managers communicate and 'walk the talk‘?
    • - Nature of the job – Is it mentally stimulating day-to-day?
    • - Line of sight between employee performance and company performance – Do
    • employees understand how their work contributes to the company's performance?
    • - Career growth opportunities – Are there opportunities for growth within the company?
    • - Pride about the company – How much self-esteem do the employees feel by being
    • associated with their company?
    • - Coworkers/team members – How much influence do they exert on the employee’s
    • level of engagement ?
    • - Employee development – Is the company making an effort to develop the employee's
    • skills?
    • - Relationship with one's manager – Does the employee value relationship(s) with
    • manager(s), and is there trust and credibility between the levels?
    • Typically, little or no mention/inclusion of ‘customer’ or ‘customer focus’ in measures or analysis employee engagement.
  • 21. Our Framework: The Two Components of Engagement Commitment to Company - Commitment to, and being positive about, the company (through personal satisfaction and an expression of pride), and to being a contributing, and fully aligned, member of the culture . Commitment to Value Proposition - Commitment to, and alignment with, the mission and goals of the company, as expressed through perceived excellence (benefits and solutions) provided by products and/or services  
  • 22. Employees That Score High on Commitment to the Company and The Value Proposition Are Considered Engaged Company Value Proposition Engaged
  • 23. Though Engagement is Useful, Employee Ambassadorship is More Actionable
  • 24. The Three Components of Ambassadorship Commitment to Company - Commitment to, and being positive about, the company (through personal satisfaction and an expression of pride), and to being a contributing, and fully aligned, member of the culture . Commitment to Value Proposition - Commitment to, and alignment with, the mission and goals of the company, as expressed through perceived excellence (benefits and solutions) provided by products and/or services   Commitment to Customers -   Commitment to understanding customer needs, and to performing in a manner which provides customers with optimal experiences and relationships, as well as delivering the highest level of product and/or service value.
  • 25. Employees That Score High on Commitment to the Company, The Value Proposition, and the Customer Are Considered Ambassadors Company Customer Value Proposition Ambassador
  • 26. First Generation Employee Ambassadorship Research Findings September, 2006 HARRIS INTERACTIVE Loyalty
  • 27. Employee Commitment Categories Employee Ambassadors (Advocates) – the most active level, representing employees who are strongly committed to the company’s brand promise, the organization itself, and its customers. Also, and importantly, they behave and communicate in a consistently positive manner toward the company, both inside and outside. Positive Loyalists – employees who exhibit positive feelings about their job and emotional kinship with the company. They are favorable about the company, overall, have every intention of remaining with the company, and actively and positively perform on its behalf. Though their communication about the company to others is infrequent to nil, when they do communicate, the messages are largely positive. Indifferents – employees who are generally satisfied with their jobs but rather ambivalent to mildly positive about the company overall, their relationship with it, and its products. They may communicate some generally positive messages about the company to others, but rarely and inconsistently. Disinterested Seatfillers – employees who, because of their lack of interest, favorability toward or kinship with the company and its products, either do not communicate positive messages about the company internally or externally, or do not communicate at all. For these minimally involved members of staff, employment with the company is ‘just a job’, and very little more. Employee Saboteurs – employees who, though still drawing a paycheck from the company, are active, and frequently vocal, detractors about the organization itself, its culture and policies, and its products and services. These individuals are negative advocates, communicating their low opinions and unfavorable perspectives both to peers inside the company and to customers, and others, outside the company
  • 28. Overall Ambassadorship Method Findings * weighted N Employee Ambassadors Positive Loyalists Indifferents Dis-interested Seatfillers Employee Saboteurs Harris Poll Baseline
    • Overall Full-Time Employees, working for a company
    612* 15% 27% 27% 20% 11%
    • Overall Full-Time Service Employees, working for a company
    441* 15% 31% 27% 16% 9% Las Vegas Hotel/Casino
    • All Employees
    2,622 23% 28% 25% 15% 9%
  • 29. Harris Poll Service Employee Baseline Results Thoughts/Feelings About Company Percent I trust the company I like the company (16%)* (18%)** (20%)* (8%)** * = Top Box % on 5-point description scale ** = Bottom Box % on 5-point description scale Employee Ambassadors Employee Saboteurs
  • 30. Harris Poll Service Employee Baseline Results Company Attributes/Diagnostics Percent The organization is well-managed The organization is focused on attaining the highest quality possible * = Top Box % on 5-point description scale ** = Bottom Box % on 5-point description scale (12%)* (16%)** (25%)* (6%)** The organization is very loyal to its employees (13%)* (16%)** Employee Ambassadors Employee Saboteurs
  • 31. Harris Poll Service Employee Baseline Results Comparative Assessments (Fram & McCarthy Diagnostics) Percent # of product/ service features we provide Overall product/ service quality * = Percent rating their company ‘Much Better’ compared to competition (5-point scale) (29%)* (33%) (31%) (29%) (34%) (25%) (30%) Overall value of product/ service Trust among customers Long-term relationships with customers Perceived prestige of the organization Benefits of products/ services to customers Employee Ambassadors Employee Saboteurs
  • 32. Comparisons of Key Results Fram & McCarthy Employee Brand Champions and Employee Ambassadorship * = Element of employee ambassador technique Low to High Brand Loyalty (Difference in % Points) Saboteur to Ambassador (Difference in % Points) Attitudes Toward Employer
    • Organization is well-managed
    +27 +62
    • Like the company
    +32 +65
    • Proud to work for company *
    +20 +64 (Comparative) Attitudes Toward Employer’s Products/Services
    • Number of product/service features
    +20 +30
    • Overall product/service quality
    +32 +33
    • Overall value of products/services
    +27 +37
    • Perceived prestige of organization
    +24 +36
  • 33. Mirroring Diagnostic Elements (Top 2 Box Scores – 7 Point Scale)
    • Employee Ambassadors were dramatically more likely to rate Las Vegas Hotel/Casino highly when compared to Saboteurs
    Guests are committed to continuing their relationship with the hotel Guests are loyal hotel customers Percent Top 2 Box Guests would continue to stay at the hotel because of the high level of personal service they receive Guests would continue to stay at the hotel because of the fun and fulfilling experience it provides Guests would continue to stay at the hotel because of the value of what they receive for the price Guests would continue to stay at the hotel because of the exceptional quality of the experience Guests All Employees Employee Ambassadors Employee Saboteurs
  • 34. Swing Voter Analysis HARRIS INTERACTIVE Loyalty
  • 35. Swing Voter Analysis of Employee Ambassadorship
    • “ Swing voter analysis” for employees, as it does in politics, deals with how to move the undecided and leaning “voters” into the desirable camp and how to avoid moving them into the undesirable camp.
    • In this case the desirable camp is the Employee Ambassador group and the undesirable camp is the Employee Saboteur group.
      • In particular, this analysis shows how to move the Indifferents, the middle group, into the Ambassador camp.
      • It also shows which attributes put at risk the same middle group, the Indifferents, that are closest to becoming Saboteurs
  • 36. Ambassador/Saboteur ‘Swing Voter’ Analysis Saboteurs Indifferents Employee Ambassadors What turns indifferent employees into ambassadors? What turns indifferent employees into saboteurs? Swing Voters
  • 37. Swing Voter Analysis Importance Scores for Selected Attributes (“Swing Up” To Ambassadors, “Swing Down” To Saboteurs) Delighters Dissatisfiers Dual effects Swing Up Swing Down I trust the hotel 28% 4% My work gives me a sense of personal accomplishment 8% 4% The hotel is focused on attaining the highest quality possible 7% - Overall value of service provided 6% 23% I very much enjoy doing my job 6% 10% I feel a lot of stress at work 6% 6% The hotel is very loyal to its employees 6% 2% My immediate supervisor 4% - The hotel will do whatever it takes to makes guests happy 4% - I have a clear understanding of the hotel’s mission, goals, and objectives 2% 13% The extent of diversity of co-workers - 8% I am very committed to my work 2% 5%
  • 38. Second Generation Employee Ambassadorship Results, Spring, 2008 HARRIS INTERACTIVE Loyalty
  • 39. Ambassadorship Groups By Selected industries (Sorted by % Ambassadors) Total Base = 4,312 Industry N >/= 70) Industry Unconnected Indifferent Ambassadors Total N Total % Religious /Non-Profit Organizations 12.8 55.6 31.6 117 100 Construction (heavy/special trades) 24.3 47.3 28.4 74 100 Legal Services 26.4 50.6 23.0 87 100 Insurance 23.2 58.5 18.3 82 100 Banking and Finance 28.2 55.0 16.8 131 100 Healthcare and Social Assistance 27.3 56.2 16.5 557 100 Engineering Services 31.5 52.2 16.3 92 100 Other Services 32.5 51.2 16.3 166 100 Education 25.2 58.5 16.2 702 100 Technology Services 25.5 59.1 15.4 149 100 Retail Trade 36.9 51.2 11.8 287 100 Arts, Entertainment, and Recreation 22.9 65.7 11.4 70 100 Public Administration /Government 30.5 58.7 10.8 223 100 Accommodation and Food Services 36.0 53.5 10.5 114 100 Manufacturing 37.5 52.9 9.6 293 100 Telecommunications 31.1 59.5 9.5 74 100 Transportation and Warehousing 40.0 51.0 9.0 100 100 Administrative Support Services 36.5 58.4 5.1 137 100
  • 40. Validation
  • 41. Employee Loyalty* By Ambassadorship Group * PLS factor of the following three metrics: Saboteur Indifferent Ambassador Total Low 61.0 3.2 0.0 19.8 Medium 38.5 84.3 27.3 61.9 High 0.5 12.5 72.7 18.3 Total 100 100 100 100
  • 42. How Often Say Good Place/Bad Place To Work by Ambassadorship Groups Good Place To Work Bad Place To Work Saboteur Indifferent Ambassador Total Rarely/Never 55.5 7.0 0.9 20.4 Sometimes-Very Often 42.4 63.6 13.4 49.6 Almost Always/Always 2.1 29.4 85.7 30.1 Total 100 100 100 100 Saboteur Indifferent Ambassador Total Rarely/Never 50.5 86.5 98.1 77.7 Sometimes-Very Often 42.3 13.0 0.7 19.8 Almost Always/Always 7.1 0.5 1.2 2.6 Total 100 100 100 100
  • 43. How Often Say Good/Bad Products/Services by Ambassadorship Groups Good Products/ Services Bad Products/ Services Saboteur Indifferent Ambassador Total Rarely/Never 46.0 7.9 1.6 18.1 Sometimes-Very Often 50.3 65.7 20.1 54.1 Almost Always/Always 3.8 26.5 78.2 27.8 Total 100 100 100 100 ambass1 Total Saboteur Indifferent Ambassador Total Rarely/Never 64.9 88.9 97.3 83.1 Sometimes-Very Often 31.6 10.5 1.0 15.3 Almost Always/Always 3.5 0.5 1.6 1.6 Total 100 100 100 100
  • 44. Examples of Corporate Employee Ambassadorship Programs
    • Zappos
    • - One of the company’s 10 core values is “Deliver WOW Through Service”, and the culture is focused on building the best customer experiences.
    • Eastman Kodak
    • - Company’s FAST (Focus, Accountability, Simplicity and Trust) program has been designed to drive growth by requiring all employees to treat everyone – internal and external – as a customer
    • Hewlett-Packard (Harris Interactive client)
    • - Several times a year, HP ‘Demo Days’ program has current/retired employees volunteer and train to spend days at local electronic retailers as company brand ambassadors
    • NCR (Harris Interactive client)
    • - Ambassadorship program created to drive customer loyalty and advocacy, and enhanced company culture, for customer-facing and non customer-facing employees. Employees are recruited and trained in customer interaction soft skills, and NCR overall company and brand information. Program participants are also required to report back on their experiences as ambassadors.
  • 45. Best In Class Customer Service Directly Linked to Business Results Leadership engagement Customer and Employee Linkage Model Creating Employee Ambassadors Employee Ambassadors Engaged Employees Employees An “Ambassador” is an employee who promotes NCR both internally and externally Creating Customer Advocates Customer Advocates Satisfied Customers Customers An “Advocate” is an customer who promotes NCR within or beyond their own company
  • 46. Services Survey: Category Impact on Commitment Total Respondents 4
  • 47. Ambassador Program Summary
    • Currently open to all Services employees
      • Special invitations to those identified via survey
    • 2-3 hour initial training requirement to become an ambassador
      • Training Covers: Ambassadorship, in general and at NCR; Company information, including branding; Customer Interaction soft skills – Customer Service, Professionalism, Communication skills
      • Welcome letter, gift, and access to SharePoint site provided upon completion of training
    • Expectations of Ambassadors
      • Participation in ambassador opportunities – PR, Marketing, Community Relations, Internal Communications (based on availability)
      • Incorporate ambassadorship into everyday activities
      • On-going training
      • Periodic reporting back
    • Benefits for Ambassadors
      • Welcome gift
      • Broad and sometimes advanced access to information
      • Special ambassador events and professional development opportunities
      • Reward program to acknowledge extraordinary contributions
    • Launched 1/19/09
    • 350+ Employees Signed Up to Date
  • 48. Nine Employee Ambassadorship Best Practices
    • Build a climate of trust and authenticity
    • Train, train, train (and cross-train in customer sensitivity and value proposition)
    • Make certain everyone has a career path
    • Provide frequent evaluations/contribution reviews
    • Seek to inform, seek to debrief, and be transparent
    • Recognize and reward customer-focused initiative
    • Don’t just ask employees what they want, provide it
    • By all means, have fun
    • Hire the ‘right’ employees in the first place
    • Source: Customer WinBack , Jill Griffin and Michael Lowenstein
  • 49. Concluding Thought
    • “ Every Honeywell employee is a brand ambassador. With each
    • customer contact, and whenever we represent Honeywell, we
    • have the opportunity to either strengthen the brand or cause it
    • to lose some of its luster and prestige. Generations of Honeywell
    • employees have built our powerful brands with their hard work,
    • spirit of innovation, passion for quality, and commitment to
    • customers. I am counting on every Honeywell employee to
    • continue that legacy.”
    • Message from
    • David Cole, Chairman and CEO
    • Honeywell International, Inc.
    • August, 2004
    • to company’s 120,000+ employees
  • 50. Based on Ambassadorship Research, What Actions Should Companies Be Taking?
    • Employees, at all levels and in all functions, need to have a thorough understanding of what is important to customers so that their actions match customer expectations and performance requirements.
    • Employees’ behavior needs to be aligned around positive customer experiences and customer loyalty.
    • Management must build processes, technology, training, and organizational/cultural practices that support employees being able to optimize customer experience.
    • Companies should evaluate the effectiveness of metrics associated with delivering customer value – financial and non-financial performance, addressing customer life cycle, amount of cross-functional collaboration to support customers.