Operations for a new era: Leveraging the Japanese approach for continuous improvement
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Operations for a new era: Leveraging the Japanese approach for continuous improvement
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Operations for a new era: Leveraging the Japanese approach for continuous improvement
- 2. WELCOME HILARY CORNA CEO HUMANS IN BUSINESS
- 3. THE END OF THE INSTITUTIONAL ERA
- 6. “WHEN TRUST EXISTS, THINGS HAPPEN FASTER AND MORE EFFECTIVELY. WHEN TRUST DOES NOT EXIST, THINGS HAPPEN SLOWER AND LESS EFFECTIVELY” – Stephen Covey
- 7. BEING HUMAN IS MORE EFFECTIVE THAN BEING EFFICIENT
- 9. ARE YOU A HUMAN-ERA COMPANY?
- 10. The Human Era
- 11. TRAITS OF A HUMAN ERA COMPANY
- 12. THEY TALK AND ACT LIKE REAL PEOPLE
- 15. THEY HAVE DEEP CUSTOMER EMPATHY
- 16. “AN EMPTY CHAIR IS OFTEN KEPT IN MEETINGS WHERE THE CUSTOMER IS SYMBOLICALLY SEATED” – Jeff Bezos
- 18. THEY ARE OPEN, REAL…
- 23. THEY EMPOWER INDIVIDUALS TO BE THE BRAND
- 25. THEY CARE INTENSELY ABOUT THE LITTLE THINGS
- 33. EVERY DIGITAL EXPERIENCE IS A HUMAN EXPERIENCE
- 34. THE HUMAN ERA INDEX: WHICH BRANDS STAND OUT?
- 35. 11% …is the average distance ahead of the Dow of public companies on the Human Era list per year over the last four years. Source: Lippincott (2018)
- 36. 2X …as likely to be referred by their customers compared to their “inhuman” competitors. Source: Lippincott (2018)
- 38. “YOU CANNOT SEPARATE THEIR STRATEGY AS AN EMPLOYER FROM THEIR STRATEGY AS A RETAILER” – Darrell Rigby, Bain & Company
- 41. “RULE #1: USE BEST JUDGEMENT IN ALL SITUATIONS. THERE WE BE NO ADDITIONAL RULES” – Nordstrom Employee Handbook
- 43. “YOU CAN DESIGN AND CREATE, AND BUILD THE MOST WONDERFUL PLACE IN THE WORLD. BUT IT TAKES PEOPLE TO MAKE THE DREAM A REALITY” – Walt Disney
- 44. HOW DOES YOUR BRAND STACK UP?
- 51. “TRAINING MISSIONS” AND “STORES” KEEP THIS BANK ANYTHING BUT BORING
- 53. “THERE IS NOBODY ON THIS EARTH WHO UNDERSTANDS THEIR CUSTOMERS BETTER THAN USAA” – Karen Pauli, TowerGroup
- 55. “MAJOR EMPLOYERS ARE INVESTING IN THEIR WORKERS AND COMMUNITIES BECAUSE THEY KNOW IT IS THE ONLY WAY TO BE SUCCESSFUL OVER THE LONG TERM.” – Jamie Dimon, Chairman and CEO of JPMorgan Chase & Co.
- 56. “WHEN TRUST EXISTS, THINGS HAPPEN FASTER AND MORE EFFECTIVELY. WHEN TRUST DOES NOT EXIST, THINGS HAPPEN SLOWER AND LESS EFFECTIVELY” – Stephen Covey
- 57. BEING HUMAN IS MORE EFFECTIVE THAN BEING EFFICIENT
- 58. BRING ON YOUR NEW ERA www.hilarycorna.com/bringiton
Editor's Notes
- And that’s what we’re here to discuss today, in the midst of all the challenges facing companies in financial services, there is a great opportunity to mitigate these threats by humanizing your processes and building trust again with your customers and communities. .the rise of businesses forseeing this hidden competitive advantage of humanizing processes to build connection, foster trust and strengthen retention to build stronger companies.
- It’s a tough world for business owners and operators…Todays challenges run deeper than ever before. We’ve moved away from the time when leadership commanded respect, stature mattered most, and big business were always the economic leaders. Instead, trust has plummeted, company life cycles compressed, and connected consumers quickly expose institutions for what they really are. This is end of the institutional era. Old world principles were the hallmark of this era, such as command and control. These rigid institutions and hierarchies were designed to function with machine-like efficiency. Over time, they became layered, complex, almost impenetrable; and as a result created a rift between consumers' expectations and their ability to act on them. We’ve taken everything we learned, however, from the industrial age and applying it to technology. Now SOPs have made us cold, sterile, and heartless. we've built the most productive, efficient systems in the world that are also dehumanizing. Give me a chuckle if you've ever been told, "The system won't let me do that." “It’s a bug.” Or “I just follow the rules.” We've created a situation for ourselves where we're triangulating each other between process owner, customer, and system.
- The end result was a loss of trust across all types of US institutions. This has significantly impacted the long-term sustainable growth of many previously successful companies, and it's brought about a trend of disruption due to these companies' inability to change.
- In contrast to old precepts, we are seeing organizations become more distributed rather than concentrated; growing more horizontally rather than vertically, resembling more organic networks rather than machines. A fundamental shift is occurring from process-centric to human-centric. the organizations around the world that have foreseen this hidden competitive advantage are benefiting from being first to market. The most admired brands in the world have become flatter, more transparent, and they listen to the world around them to bridge connections to earn back trust that has been lost.
- As Stephen said..
- As leaders, we are recognizing that fortress behavior is no longer a smart approach to interacting with employees, customers, or communities. Why? As human beings, we have a fundamental need for connection with others. And sometimes being human is more effective than being efficient.
- If you don’t believe me… Are we focusing on knowledge based or what makes us unique? Gross margin vs strategy on how to reduce costs?
- The goal here if you haven’t already figured out is to achieve more yeses then nos. This is just a snapshot pulse to see where your company stands.
- I believe we are experiencing the next great evolutionary leap in business to the Human Era. Technology is not the leap, it’s the catalyst for the leap. The leap is humanization. At the core of this is the realization that humans are searching for trust and this extends to organizations and brands as well as people. The rise of the human era has precipitated a fundamental shift in the value equation – it’s become more intimate, personal, cooperative, and inclusive. “Are we welcoming, understanding, and loving? Or are we cold, sterile, rigid and complex shoving sales scripts and automated emails down peoples throats disconnected, losing trust with a strong pipeline but a leaky bucket of unhappy customers with a bad taste int heir mouth for the company and zero retention?” It’s not about how great your product is, or feature set. This will commoditize you and swiftly be replaceable as we’re seeing across the tech world today. What makes your not easily replaceable? How you treat someone (As Maya Angelou said) – Toyota quote We cant just say we’re trust advisors, we have to actually deliver on it.
- What makes a human era company? Institutions have always used their comms to declare, preach, sell. Yet humans communicate to connect with one another. In the human era, companies must communicate in the same way and when they do, there is a great value to be unlocked for both parties. Consumers find value through loyalty and companies generate value during decision making points with their customer. Breaking through and making a connection is a tall order. Why? Because real connection must be firmly anchored in the culture of the business. Pivoting requires hard work, establishing values that are truly customer driven, not company goals or metrics driven, and they must be executed on through day to day operations, decision making, and employee behavior. Several traits appear among the top performing human era companies
- Connecting with a human era company should feel more like an eye to eye conversation than a one way corporate communication. One of the easiest ways to show you care about people and to engender their trust is to talk with them on their terms, asking and listening.
- This is not efficient but it’s effective
- Paul Jarvis turned off tracking pixels “a “tracking pixel” is a tiny blank image that’s embedded in newsletters so the sender can see details about you and how you engage with the emails they send” “Basecamp realized of this privacy invasion and turned them off – so I did too. My subscribers are important to me - as is their privacy. And just like my website doesn’t track any personal data about visitors because I use my own product, Fathom Analytics, I want to honour and respect the privacy of those on my mailing list too. After learning Basecamp I realize the potential cost of turning tracking off for this list, but the benefits of not spying on you far outweigh their use. ”
- From management to the front line, each of these comoanies goes beyond paying lip service to being customer driven. Deeply immersed. The consequences? How to serve in unexpected better ways?
- USAA example. This is not efficient but it’s effective The Harpeth – they understood and predicted my needs.
- This is not efficient but it’s effective At Toyota, the biggest mistake we’d find is company’s designing processes and operations for what’s good for the company, not what’s good for the customer. GG – go and see for yourself. Walk the whole experience, first, before making any changes. USAA example + others in study.
- Gone are the days when you had to be perfect. Human era companies admit error, show customers where they truly stand, let you see behind the curtain. Theyre taking transparency to a new level. BC any human relationship is anchored in candor and honesty, relationships with companies should be no different.
- This is not efficient but it’s effective
- We prioritized business growth over cultural growth. Example of growing ops too fast – many in tech. Allure. Apt Staffing. This is not efficient but it’s effective. Example of a recent customer growing too fast, Had a great product and was merely metrics driven. He was referred to me by a friend, I don’t like the business he’s in (plastic surgery) and he’d been fighting me for years, being rude and brief. But our mutual friend kept asking me, please reach out and help him. He’s going to fail. Finally things broke, he called me 60% refunds. Finally admitted he was wrong. Made me finally have respect for the guy. Made me trust him a bit more. Made me want to help and take him on.
- There is no doubt that connecting on a human level is about showing real personality and creating your unique character in special ways. Companies can and should have dynamic personality just as people do.
- This is not efficient but it’s effective. Mail chimp – monkey count pressing a red button with sweat coming down. Then “HIGH fives” after it. socks. Hopsitality tech SASS company – hilarious call waiting recording. Tech companies. Financial services. It’s boring for consumers. PEOS, ERPS, CRMS, Accounting firms, Banking – They’re all boring. It’s a great opportunity to not be. We’re afraid to do this because we’re used to garnering trust by showing our power, reputation, financial wit– that is changing. People want you to be fun, normal. Human.
- Another character is the willingness for companies to truly trust, empower, and celebrate their people. They throw out the script and entrust employees to deliver. Standardization and trying to control is giving way to freedom and trust. Being people centric instead of policy centric.
- Whattaber – you may have seen them – released tennis shoes with a W on it that look like new balance. A front door mat that say, you better have whattaburger.” This is not efficient but it’s effective Tech support email having their photos in their signature
- It’s tempting to ascribe leadership solely to “the big innovation” or “structural competitive advantage” but human era companies show little things matter a great deal as well. These efforts don’t come out of a research project or focus group, but an ingrained daily habit of listening and responding. It’s a standard of care that is then reflected by employee behavior.
- This is not efficient but it’s effective. Four seasons. House hunting – baking cookies as you walk in. When think about architecture, in the early 1900s it was designed for solely functionality and efficiency. Then the art deco raised a new question, can we take cold, sterile functional buildings and make them beautiful, welcoming warm and inviting? Create an experience with an otherwise meaningless product? Businesses can no longer just provide a product or service. They need to provide an experience.
- There are a bunch of businesses doing this poorly. I was at the taco shop the other day, at garbage, and they’re shaming me for .. Mexican restaurant – in an effort for them to feel cool, I didn’t feel welcome.
- Others are seeing and experiencing it too
- Or this example? Policy centric or people centric? Theyre probably losing a great deal of good candidates because this is a strike on their dignity. Cold and heartless.
- Standardization and automation can be a flaw. We see this ever since Salesforce released Predictable Revenue. Now we can pinpoint a fake email from the subject line “Can you point me in the right direction?” Speaking of emails.. I was on a podcast recently…immediately receiving this guys daily emails, then suddenly the conference sales emails, then his personal newsletter. Never once asked. Do you think I spread that podcast when it was released. No. Told no one about. Unsubscribed from all.
- Ex from Modern Honolulu “please come back for a 5 star experience” Outsourcing company – great product, above all others, but their overall customer experience was so dehumanizing, ineffective, it took me more time then it would’ve taken to just do the work. What did they do every time I wanted to leave? Instead of explain how they were going to change, they offered credits.
- Think about – why was “AS A SERVICE” developed? Because tech is ever changing, growing, and customer have continued needs. It’s not just a drop ship product. You see this in the POS merchant services space – you do that, and the next day you have to go and close a new deal .Then “As a service” companies needs to focus on their service, tech comes second. Naming them, “tech companies” is fundamentally flawed. Reoccuring revenue should not be the goal, serving the customer should be the goal
- Beyond the rise of the “Human era campaign” the real question is which brands truly deliver on…?
- Perhaps not surprisingly, the highest scoring company do indeed outperform financially. The public companies on the leadership list outdistanced the Dow by an avg of 11%, implying a 50% more value creation.
- These companies were also…. If you could increase your valuation and double your referrals, would you?
- Grocery. 20% of their 40K employees are related. It has a hire staffing level, takes serious consideration in hiring and trains more than average. Ideas collected CEO visits new stores. In a razor thin margin industry, wegmans has withstood competition like Walmart and the numbers show investing in the human connection pays off. They have half the emp turnover, 2x the CS, 2x the operating margins of its peers
- Known for it’s CX, Nordstrom stands out in retail. Even if competitors copy their return policy, recreating it’s level of outstanding Customer service is harder. They encourage their staff to act to best help the customer, starting with…
- From this, they’ve spearheaded other customer inspired needs like: Nordstrom owns trunk club. Started a “Nordstrom local” store.
- Media and entertainment Did you know they open the doors 5 min early daily just to delight customers, and that trash cans are 25 spaces apart? They offer intense customer service training that help staff learn how to and obsess over making the lives of customers easier.
- Cant compete just on tech or price. This is whats happening with the scooter industry right now.
- After his example, ask, what are the stigmas of your industry? Does it reflect that or something different?
- There are many big banks doing this poorly – which is your opportunity “While the use will be primarily a coffee shop, bank employees will be on the premises to assist with any questions about banking matters,” per the application. “In addition, the meeting rooms will be available by reservation for use by the community at no charge. It will be a lively and interactive use.”
- Compete on just tech and you will die. Someone will out pace you, or copy you.
- But there are a couple banking institutions doing this right and here are a couple examples. Umpqu is the top commercial bank in the country out of Oregon and they describe themselves as a retailer rather than a financial services company. Every store has a direct line to the CEO. In it’s CX they strive to not treat people as a number and to be welcoming, no pressure zone environment.
- Financial services We spoke about the meals. Ask employees to wear flak jackets. Consistently pushing to meet customer needs, investing millions in employee training Consistently rated best places to work by Fortune and an unparralled 98 % customer retention rate.
- At Toyota, we’d get copied in all our kaizen tools and techniques. And we would let them in. To visit the dealers, the manufacturing. Why? Because we believed, that it doesn’t matter the tools and techniques, it’s about how you treat people – this is Toyota’s secret sauce.
- In Q4 of last year… senior business leaders came together.
- These modernized principles reflect the business community’s unwavering commitment to continue to push for an economy that serves all Americans.” “This new statement better reflects the way corporations can and should operate today,” added Alex Gorsky, Chairman of the Board and Chief Executive Officer of Johnson & Johnson and Chair of the Business Roundtable Corporate Governance Committee. As we used to say at Toyota, though, Show me don’t tell me. The ability to truly develop operations that are human and deliver on this is the only answer to regaining trust.
- Like any reformation, we are at a moment of great change. To be human in deeds as well as words, a different mind set prevails – that the role of the firm is no longer just to make and sell products. But to also engage deeply and openly with customers as collaborators in creating value together. We’re saying goodnight to institutional behavior and paradigms. We’re waking up in the Human era
- This is big, complex, totally unique. But the research doesn’t lie. Your customers/employees can be happier. You can make more money. The world will see you as a better place/company. And all you gotta take is the first step. And the first step is a free 30 min call with me. Namaste