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Designing Culture to Drive Customer Experience

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Elena Grotto & Felicia Joy

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Designing Culture to Drive Customer Experience

  1. 1. Designing Culture to Drive Customer Experience MARCH 12, 2020
  2. 2. 2 Meet Your Facilitators ELENA GROTTO Senior Vice President, Business Transformation Edelman FELICIA JOY Senior Vice President, Corporate Advisory and Group Head, Behavioral Science Edelman
  3. 3. 3 What You’ll Learn Today • The link between business strategy and culture • The role of culture in customer experience • The two types of approaches to culture change • How to reshape customer experience by redesigning culture OBJECTIVES & GOALS
  4. 4. 4 Culture Is Having a Cultural Moment Amazon proves company culture doesn’t need to be “warm and fuzzy” to be effective
  5. 5. 5 Investing in Culture is Investing in Business Nearly 3 in 4 employees expect their employer to have an inclusive, values-driven culture. If not, they will either work elsewhere or require a substantially higher salary. More than 80% of investors cite “trust in the company” as the top driver of investment decisions and 95% say maintaining healthy company culture impacts this trust. Enterprises with a top quartile culture score twice as high on customer satisfaction and are 25 percent more profitable than those with bottom quartile cultures. Sources: Edelman Trust Barometer; MIT Center for Information Systems Research
  6. 6. Behaviors, beliefs, systems and processes that make up normal and expected ways of individually behaving, relating and working How We Think About Culture 6
  7. 7. 7 Behaviors and Beliefs ARE NOT BUSINESS ASSETS UNLESS THEY LADDER UP TO STRATEGY
  8. 8. 8 Sources: Salesforce 2nd Annual State of the Connected Customer Report; Glassdoor “The Surprising Benefit PwC Uses to Attract and Retain Top Talent”; 3m.com “Core Elements to 3M’s Culture” Sources: Salesforce Example: Innovation Is Core to Business Strategy of customers expect companies to provide new products/services more frequently than ever before. of customers actively seek to buy from the most innovative companies 63% 56%
  9. 9. 9 Sources: Salesforce 2nd Annual State of the Connected Customer Report; Glassdoor “The Surprising Benefit PwC Uses to Attract and Retain Top Talent”; 3m.com “Core Elements to 3M’s Culture” Sources: Salesforce Employee Experience Customer Experience Innovation Innovation How We Often Advance Innovation
  10. 10. 10 Culture’s Role in Aligning the Employee and Customer Experience Sources: Salesforce 2nd Annual State of the Connected Customer Report; Glassdoor “The Surprising Benefit PwC Uses to Attract and Retain Top Talent”; 3m.com “Core Elements to 3M’s Culture” Employee Experience Customer Experience Innovation
  11. 11. 11 Culture’s Role in Aligning the Employee and Customer Experience Around Strategy Sources: Salesforce 2nd Annual State of the Connected Customer Report; Glassdoor “The Surprising Benefit PwC Uses to Attract and Retain Top Talent”; 3m.com “Core Elements to 3M’s Culture” “Our philosophy has been to overinvest in development, if there is such a thing. It’s a fundamental commitment to continuous learning and developmental paths. The candidates we speak to are keenly interested.” - Mike Fenlon, PwC, Chief People Officer For more than 70 years, 3M’s unique 15% Culture has encouraged employees to set aside a portion of their work time to proactively cultivate and pursue innovative ideas that excite them. Employee Experience Customer Experience Sources: 3M, Glassdoor, PwC Innovation
  12. 12. OUR CULTURE TRANSFORMATION APPROACH IS SCALABLE Holistic transformation Best for an enterprise-wide culture change, including pre-and post-merger integration Targeted Intervention Best when a company needs to adopt new behaviors to support a specific mandate, such as post-crisis or to increase operational safety or cyber security The Culture Change Continuum Advancing culture by addressing a SPECIFIC change or engaging in HOLISTIC transformation “We need to be more innovative.” “We need to integrate and strengthen two newly merged companies”
  13. 13. Why behavioral science? Behavioral science can get to the root cause of human behavior and it is measurable. By running real-time pilots, we can understand more about what employees are thinking and how they are behaving. This active approach generates data and insights that can be leveraged to create momentum and quickly advance behavior and culture change. 13 Strategy for Targeted Culture Interventions: LEVERAGE BEHAVIORAL SCIENCE TO IDENTIFY AND REPLACE THE ROOT CAUSE BEHAVIOR The Domino Effect theory shows that behaviors are interconnected; change one behavior and others will shift. To spur a culture change, we identify and change the root cause behavior(s) with a targeted intervention.
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  15. 15. Combination of sciences that seeks to understand, explain, influence and measure human decision making and behavior. What is Behavioral Science? 15
  16. 16. 16 A Few Concepts and Theories THAT PROVIDE A FOUNDATION FOR USING BEHAVIORAL SCIENCE Choice Architecture Default Effect Social Norms Fresh Start Effect Salience Effect Domino Effect
  17. 17. 17 Choice Architecture DESIGNING THE ENVIRONMENT TO NUDGE SPECIFIC CHOICES • For example, removing chairs from workplace conference rooms to encourage fewer, faster meetings. • A study at Washington University’s Olin Business School found that removing chairs, and nudging standing meetings, resulted in reduced territorialism and increased collaboration and creativity. CASE STUDY Baer, Knight 2014 Brad, please change picture to fit new example.
  18. 18. 18 Fresh Start Effect PEOPLE ARE LIKELIER TO TAKE ACTION AND CHANGE WHEN A TIME MARK CREATES A SENSE OF NEWNESS AND MOTIVATION • Redbooth, a project management platform, analyzed data from 1.8 million projects and 28 million tasks to quantify productivity • The highest percentage of tasks (20.4%) were completed on Monday • People were most productive starting at 8am with the daily peak of productivity (9.7%) occurring around 11am CASE STUDY Redbooth, Priceonomics 2017
  19. 19. 19 Social Norms PEOPLE TEND TO BEHAVE IN ACCORDANCE WITH PEERS & SOCIAL EXPECTATIONS • In a study at a daycare, the number of parents picking up their children late doubled after a late fee was introduced • The fee shifted the social norms calculus, making it socially acceptable to arrive tardy if parents paid for the option CASE STUDY Israel Institute of Technology; Gneezy 2000
  20. 20. HOW TO DESIGN A TARGETED CULTURE INTERVENTION TO RESHAPE CUSTOMER EXPERIENCE 20
  21. 21. A behavioral science intervention is a measurable plan to address a problem or situation with the goal of influencing behavior in a way that does not remove choice. What is an Intervention? 21
  22. 22. Diagnose Design Deploy Duplicate BEHAVIOR CHANGE INTERVENTION DESIGN MAP In one sentence, what issue are you trying to address? Be specific. What new behavior do you want to promote? What intervention ideas could shift people from the undesired behavior to the preferred behavior? (See “Ways of Intervening” in the right column to help you generate ideas.) Define success. What change in business outcomes would make this intervention worth scaling? % change in employee or customer sentiment? % change in productivity? # of new patent or trademark filings? Increase in profit margin? What behavior is causing the issue? If your test is successful, can you use the same channel(s) to scale that you used to test? (Consider related variables like technical capacity, budget constraints, etc.) Which behavioral science concepts might you be able to use to promote a change in the current behavior? (See the three concepts below.) What channels are available for you to test your intervention ideas? Can you test in physical or digital environments, or both? How can you measure differences between the test and control groups to see if your ideas are working? My Hypothesis (If I Try X, Then Y Will Happen) Ways of Intervening 1 Communications 2 Processes or Policies 3 Environment (physical or digital) Three Behavioral Science Concepts to Design Your Intervention Design for change by adjusting: CHOICE ARCHITECTURE Designing the environment or context in which people are making decisions to nudge them toward choices in their own best interest. Example: removing chairs from conference rooms to encourage faster and fewer meetings. SOCIAL NORMS People are likely to act in accordance with social expectations and normative group behavior. Example: collaboration becomes a team norm because a manager regularly asks who from other departments is involved on projects. FRESH START EFFECT People are more motivated to change when there are time-related milestones that create a sense of newness, like New Year’s Day, a birthday or a first day. Example: at the start of a new quarter, a team commits to stop familiar but failing tactics and double down on new approaches proven successful in the prior quarter.
  23. 23. Activity: DESIGN YOUR INTERVENTION 23
  24. 24. Nudge to Self 24
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  26. 26. 26 Thank You CONTACT US ELENA GROTTO elena.grotto@edelman.com FELICIA JOY felicia.joy@edelman.com

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