penumbra media & design

Communicating Corporate Culture

And Now a Word from Our Sponsor

Matthew Hudson | September 25, 2009

Okay, for those of you who always write me and ask what i am like in person….

I love reality TV as long as it is Top Chef or Design Star. Hate it if it is The Bachelor or the like. I am not a reader, although I do read alot. I prepfer to think that if I need to know it - it will become a movie. Never read the Twilight series. Never saw Casblanca or Gone with the Wind. I am an avid racing fan - open wheel (IndyCar) that is. Here are the quick hits….

Born: October

Sign: Scorpio

Kids: Brayden Hudson (and wife Christine) currently at Ball State University

Education: PhD Organizational Behavior


Career: Principal, penumbra media & design & Penumbra

Author: Culturrific! & The Retail Sales Bible

Favorite Color: Purple


Favorite Movie: Father of the Bride

Favorite Band: The Clash

Favorite Artist: Madonna

Favorite Author: Patrick Morley, The Man in the Mirror Series

Favorite Meal: Buffalo Rib-eye Steak

Favorite Food Group: Chocolate (yes, it is its own food group in my house)


Favorite Vice: Diet Coke


Official Clothier: Robert Graham
 
Official Footwear: Mark Nason

Its a Small World After All… or is it?

Matthew Hudson | September 21, 2009

I am thinking about the irony of people standing in line waiting to ride the “Its a Small World” ride at Disney. (You know the one we have all been on and made the mistake of doing it in the morning so the annoying song stays in our heads all day!) The peson runs into a friend while snaking the lines and thinks “wow!” what a small world when they are going on a ride that says there is no irony in runing into a friend in Disney standing in line to ride Its a Small World.

Confused? Good, that was the point. It may be able to be a small world with technology and mental advances. In fact, the amount of information available on the planet doubles every 1150 days! But yet, we do not share and thus we are still woefully in a very, very large world.

For awhile, we thought the secret would be to work with Fortune 50 clients. After all, they had to have it all figured out to become a $65B company, right? What we discovered over time is that the problems that plague the $65M company are the same as the ones that plague the $65B company. How can this be? How can you grow your revenues to a point where you are doing such astronomical amounts, yet lack the ability to grow emotionally and intellectually?

Not saying we have the answer, just pointing out that if you are one of those smaller firms thinking the grass is greener in the larger ones - wake up! The principles of corprate culture are the same no matter the size of the company. Ultimately, your beliefs determine your values and your values determine your attitudes which determine your feelings which determine your behaviors which then feed your beliefs. Its a cycle - one that continues to play out every single day in every single company.

Hopefully, through this blog, you have found some advice on how to handle your corporate culture. Remember, it is a living, breathing part of your company. Period. Anyone who does not beleive that needs to go. Anyone who does not beleive that will go - becasue eventually the company will!  

How the Mighty Fall

Matthew Hudson | September 17, 2009

Recently, I read Jim Collins new book, How the Mighty Fall. While shorter than his other books, I think this is a plus. Good to Great was a solid work, but a bit academic and wordy for me. This book was much more “to the point.”

the interesting part of the book is the “phases” or stages as Jim calls them, that a company goes through on the decline. In our work with companies, we have witnessed this first hand. In fact, we have tried to point out the warning signs to some of our clients only to be “brushed off.” It was fascinating for us to listen to another author (one much more renowned then we ever will be) to express the same difficulty in dealing with their clients.

Stage 1 - Hubris Born of Success (we call this normal)
Stage 2 - Undisciplined Pursuit of More (we call this one “sales cures all ills”)
Stage 3 - Denial of Risk and Peril (we call this one common - especially higher up)
Stage 4 - Grasping for Salvation (we call this the consultant mode because it is when we usually get called in)
Stage 5 - Capitulation to Irreverence or Death (we call this inevitable)

It would have been nice to have this work years ago when had a hospital client. We tried in vain to help them see the cliff they were headed towards. They could not see it because they looked at the map and not the road. You know the map - its the spreadsheet or dashboard that says sales are up or csat scores are up or profits are up. Too many times we see companies find out that just because your P&L says you are profitable, does not mean you are sustainable.

Anyway, we ended up “firing” that hospital client. We told them we had a reputation to worry about and they were hurting it. Our straight talking truth did not work either. They simply said, “okay.” and then dashed onward to the cliff and “lemminged” off the edge. (Yes, they are gone and so is the building.)

I think the best part of this work is the fact that Jim Collins always stressed the need to have team of people looking inward and watching against the stages. Honestly, most companies could do without our service if they only listened to their customers and or employees and got off their high horses.

But thankfully for us, they do not.

Customer Speak - Part 2

Matthew Hudson | September 14, 2009

Excerpt form the book - Culturrific!

Customer Speak is a process of letting your customers speak to you about what they want. You should have several focus group sessions each year to find out what your customers are saying. Ask them what they wish you did differently and what they could care less if you did. Perhaps Coca-Cola would have not introduced the new Coke if they were listening to their customers. Their customers certainly spoke when it was introduced!

There is a great myth out there that you have to spend thousands of dollars and hire slick, professional data gatherers and researchers like the ones with the clipboards in the mall. Nothing could be further from the truth. It’s so easy to hold your own Customer Speak sessions in all of your locations nationwide (even globally). Place a sign at the front entrance of your business that says:

“How would like you like to get 10% off today?”

Whenever you get takers, have them complete your 10-minute personal interview with one of your front line employees. There are two wins here. First, you are gathering information that will be invaluable to you in the future as you decide what services you should and should not offer. Second, you are rewarding top performers by asking them to participate in the research. Typically, companies will hire temps to do the surveys. What kind of message does that send to the customer? Do you really care what they have to say? Use the best to get the information. It will make them feel part of the total business and not just a pair of hands and feet.

This survey only costs you 10% off their purchase - which is probably something you have seventeen coupons and marketing gimmicks already available that do the same thing. For your business, you may use a different angle, but we have found that when you say % off a purchase, it means a lot more to the guest and you get a lot more takers than a free 2-liter bottle of New Coke.

Once you have the information, you know what to do with it. But you will need to make sure that what you heard is what they meant. Be careful not to read into what your customers are saying or put things into their mouths. Keep yourself separated from their answers. It’s very natural to impose our own opinions over the ones from the customer. After all we are customers to, right? Not of your own company you’re not. Do you buy from your company because of the way you are treated or because you get a discount? Think about it.

If you wait until you get the data back from your customers on your service, you will be reactive instead of proactive. Therefore, you will have to take a lead role in deciding and defining service from the Everything Speaks philosophy.

Customer Speak

Matthew Hudson | September 10, 2009

Except from the book Culturrific!

People make more bad decisions each day in business with the right intentions. A company decides to improve its service or processes within the company to raise the bar on customer satisfaction and customer service. The mistake they make is when they pass service “laws” in their company that are not from the customer’s point of view. You probably always wanted to learn a second language and now is your chance – the language of Customer Speak.

For example, you may pass an edict that all phones be answered on the first ring. You communicate, train and award this behavior to make it a part of your culture. You expend lots of money and time putting this into place. Why? Because you think it’s a great way to show you care. But what if your customers would be just as happy if the phone were answered on the third ring? How much more money does it cost you to get every phone on the first ring compared to the third? Most likely, you would need extra employees answering the phone. Who pays for this? The customer. This would be like FedEx automatically delivering every package by 10:30 am the next day. They wouldn’t make any big deal about it publicly. They would simply add the cost of this new “customer service” to the price of the delivery. But you are still paying for this service – a service you may not want or need.

Recently, I needed to go to New York. I had a ticket, but wanted to find out about flying standby on an earlier flight. I called American Airline’s 800 number and asked the girl who answered to check on flight 736 for me. She told me it was leaving on time. I said, “But I want to know how many seats are available to know whether I should risk the hour drive to the airport to fly standby.” She replied, “Sir, I cannot give out that information.” This was news to me and to any of you frequents flyers. I have been calling the airlines for years and they have been telling me the “plane is half full” or “there are only three seats left on the plane.” If you are attempting to fly stand by, this is very valuable information. When I explained that every other time I called I got this type of information, she replied, “Sir, this phone call is being monitored and if I don’t do what I am told, then I will get marked down for it and it will cost me money!” She was sincere and honest.

How many times have you heard the recording at the beginning of the hold tape that says, “This call may be monitored for quality control?” I never really paid attention to this before this incident. After sharing my experience with my colleagues, we decided to further investigate. Being in the DFW area, home of American Airlines, this should be fairly easy.

We contacted the corporate offices and were sent on the complimentary “transferred around the company a few times” trip (this is always the case in great service companies, right?). Finally, the right person got on the line and told us exactly what we wanted to hear. “This is part of our continuing efforts to provide superior customer service to our passengers on American.” We then asked the magic question, “Where did you come up with this idea? Did your customers ask for it?” “Uh, no this was a decision by upper management to create a better experience on the phones for our customers.” “Thank you for giving me this service!” we said as we hung up the phone. Here is a classic example of a program gone wrong. How can anyone provide superior service if they are afraid to think and act for themselves? We have laced this book with the theme that you must capture the hearts and heads of your employees if you expect them to perform as a service culture. This method of “checking up on you” says one thing to the employees – “We don’t trust you!” How will you ever capture the hearts and heads of your employees if they do not feel you trust them? Poor American. Their hearts are in the right place. But their wallets aren’t unless they are listening to the Customer Speak.