Internal marketing Fri 7 Sep 07

Recommended for mature audiences Sexual references M 15+

Recommended for mature audiences

Sexual references

Internal marketing (IM) An organisational activity which is said to improve external market performance

An organisational activity which is said to improve external market performance

History To improve customer service Total Quality Control Logistics Customer Service Customer Perceived Quality Third Phase 1980s 1990s 1993

To improve customer service

History 1. Internal communications The need for motivation Customer conscious employees 2. Treat employees as internal customers (originally tested in Japan). Leads to treating as internal products. IM 2 school of thoughts

1. Internal communications

The need for motivation

Customer conscious employees

Customer service improvement program “ involve staff in making the kinds of internal changes to policies and procedures”

Customer service improvement program

“ involve staff in making the kinds of internal changes to policies and procedures”

“ False Start” Outside consulting (British Airways) “ cascading down” invited staff to participate and provide feedback in a quick series of programs Result Didn’t anticipate mass feedback No clear focus on customer needs Didn’t get know-how Raised expectations of staff

Outside consulting (British Airways)

“ cascading down”

invited staff to participate and provide feedback in a quick series of programs

Result

Didn’t anticipate mass feedback

No clear focus on customer needs

Didn’t get know-how

Raised expectations of staff

IM Lessons Potential breakdown of relationship – hard to get their participation in future Where you can’t fulfil a promise, make sure there’s a backup plan

Potential breakdown of relationship – hard to get their participation in future

Where you can’t fulfil a promise, make sure there’s a backup plan

“ New Start” Customer Service Study Participants were from across the industry Trade relationship Strategic decision – evidence of “backup plan”

Customer Service Study

Participants were from across the industry

Trade relationship

Strategic decision – evidence of “backup plan”

“ New Start” – cont. Purpose Maintain ongoing presence of ANZ’s interest in valuing staff and their feedback To show staff change of path but with same purpose Maintain trust with staff

Purpose

Maintain ongoing presence of ANZ’s interest in valuing staff and their feedback

To show staff change of path but with same purpose

Maintain trust with staff

“ New Start” – cont. Agents for change Critical change workshop Groupies Critical service issues Diagnostic process

Relationship-building characteristics Outside help to facilitate Volunteers Free to come & go Start & finish whenever Attire as they pleased Find own motivation Groups of 3-5 (though most effective in 4) Resource support ANZ doesn’t set up rules and policies Build trust

Outside help to facilitate

Volunteers

Free to come & go

Start & finish whenever

Attire as they pleased

Find own motivation

Groups of 3-5 (though most effective in 4)

Resource support

ANZ doesn’t set up rules and policies

Build trust

Reflection Open communication Opportunity to speak out Staff fear achieving nothing, economical waste Feel acknowledged Important ANZ learns staff do care

Open communication

Opportunity to speak out

Staff fear achieving nothing, economical waste

Feel acknowledged

Important

ANZ learns staff do care

Result Time and effort (worked 60-80hrs per week) Interaction within & between groups Group dynamics “explosion” Able to distinguish which were critical “ Groupies” Important Open communication, worked together not against Open set-up *place of the 4Ps* Co-creation

Time and effort (worked 60-80hrs per week)

Interaction within & between groups

Group dynamics “explosion”

Able to distinguish which were critical

“ Groupies”

Important

Open communication, worked together not against

Open set-up *place of the 4Ps*

Co-creation

But wait, there’s more... Party night 40% recommendations actioned within 6 months New Look branch designs already underway, re-addressed with considerations by staff suggestions

Party night

40% recommendations actioned within 6 months

New Look branch designs already underway, re-addressed with considerations by staff suggestions

What about the other 60%? Not everyone thought the recommendations were applicable to them No $ Yes to issues & solutions, but takes time Key internal marketing problems “ False Start” again Wider internal system Resistance (power struggle)

Not everyone thought the recommendations were applicable to them

No $

Yes to issues & solutions, but takes time

Key internal marketing problems

“ False Start” again

Wider internal system

Resistance (power struggle)

Internal networking Groupies initiated diagnostic review groups ANZ continued support via customer service department Important Staff didn’t give up ANZ reciprocated Trust & confidence from both ends

Groupies initiated diagnostic review groups

ANZ continued support via customer service department

Important

Staff didn’t give up

ANZ reciprocated

Trust & confidence from both ends

Energising, code breaking & border crossing Energising Choice Time & effort Outside of job scope

Energising

Choice

Time & effort

Outside of job scope

Energising, code breaking & border crossing – cont. Border crossing Spreading information Code breaking Identify problems & solutions, then implement (new know-how)

Border crossing

Spreading information

Code breaking

Identify problems & solutions, then implement (new know-how)

Branches work together Identify problems & implement key solutions 60-80 hrs, voluntary effort Diagnostic review process Approach resistant managers Staff Knowledge Internal processes changed to serve customers first Goals & values Technical domain Structural domain Pyscho-social domain ANZ

“ Evolutionary” Change in review process to accommodate but achieve same result Celebratory events Customer service department continued support Experienced groupies continued participation Loyalty continued, support for internal network

Change in review process to accommodate but achieve same result

Celebratory events

Customer service department continued support

Experienced groupies continued participation

Loyalty continued, support for internal network

Internal relationship in play - proof of border crossing Groupie approaches boss Presented ideas were ok but no green light Groupie didn’t give up Efforts forced direct boss to implement Assistant GM called to congratulate branch for initiating diagnostic review

Groupie approaches boss

Presented ideas were ok but no green light

Groupie didn’t give up

Efforts forced direct boss to implement

Assistant GM called to congratulate branch for initiating diagnostic review

Overcoming boundaries Systems theory Boundaries Dynamics Hierarchy Potential hostile environment

Path finding & routinising Path finding “ Get program back on track” Routinising Standardising diagnostic review process to achieve the same result more efficiently and continuously

Path finding

“ Get program back on track”

Routinising

Standardising diagnostic review process to achieve the same result more efficiently and continuously

ANZ’s cyclical strategy Market research inputs Diagnostic work Review of training needs Implementing recommendations

Key to internal networking Choice Legitimacy of purpose Goals Follow up Cyclical Others: risk, courage, seize, opportunity

Choice

Legitimacy of purpose

Goals

Follow up

Cyclical

Others: risk, courage, seize, opportunity

Overall ANZ’s success resulted because of making staff feel valued through: Open communication Choice Letting their staff know business direction Key internal processes are refined to serve customers. Developed through: Ongoing review, implementation & support

ANZ’s success resulted because of making staff feel valued through:

Open communication

Choice

Letting their staff know business direction

Key internal processes are refined to serve customers. Developed through:

Ongoing review, implementation & support

Overall ANZ brought together both school of thoughts Need for & delivery of internal communication + Treating staff as customers

ANZ brought together both school of thoughts

Need for & delivery of internal communication

+

Treating staff as customers

Reference Ballantyne, D. (1997) ‘Internal Networks for Internal Marketing’, Journal of Marketing Management, Vol. 13, p343-366.

Ballantyne, D. (1997) ‘Internal Networks for Internal Marketing’, Journal of Marketing Management, Vol. 13, p343-366.

Reference for images HBO (2007) ‘Sex and the City’ http://www.hbo.com/city/img/episode/season06_2/ep90_4women_restaurant.jpg . Accessed 3/9/07. Photolibrary (2007) ‘Bedroom’ www.photolibary.com . Accessed 2/9/07. Photolibrary (2007) ‘Police uniform’ www.photolibrary.com . Accessed 2/9/07. Youtube (2007) ‘There’s something about Mary’ www.youtube.com . Accessed 2/9/07. Everyday Weekender (2007) ‘Cooking a juicy steak to perfection’ http://www.everydayweekender.com/wp-content/uploads/2007/04/grilled_steak.jpg . Accessed 2/9/07. Romantic Bedroom Designs (2007) ‘Romantic Bedroom’ www.romanticbedroomdesigns.com . Accessed 2/9/07.

HBO (2007) ‘Sex and the City’ http://www.hbo.com/city/img/episode/season06_2/ep90_4women_restaurant.jpg . Accessed 3/9/07.

Photolibrary (2007) ‘Bedroom’ www.photolibary.com . Accessed 2/9/07.

Photolibrary (2007) ‘Police uniform’ www.photolibrary.com . Accessed 2/9/07.

Youtube (2007) ‘There’s something about Mary’ www.youtube.com . Accessed 2/9/07.

Everyday Weekender (2007) ‘Cooking a juicy steak to perfection’ http://www.everydayweekender.com/wp-content/uploads/2007/04/grilled_steak.jpg . Accessed 2/9/07.

Romantic Bedroom Designs (2007) ‘Romantic Bedroom’ www.romanticbedroomdesigns.com . Accessed 2/9/07.