penumbra media & design

Communicating Corporate Culture

Sony Store - Did they Learn?

Matthew Hudson | March 17, 2010

Recently, Sony has announced the opening of a new store in Japan. The Nagoya store is a direct result of Apple taking over most of the market in Japan. Therefore, much like Microsoft has done, and Sony has done in the US, Sony has decided to launch an Apple-like store.

The 2-level store includes “backStage,” a service/support group, much like Apple’s “Genius Bar,” that will assist with questions and training customers may need. Its first floor focuses on their notebooks, cameras, and walkmans. While the second floor is designed for home theater, led by their new 3D tv’s. As you can see from the picture above, the store has elegant and hip designs with wide open areas consistent with “SonyStyle.”

The question we need to ask now is “Is this the right decision?” I have blogged about Microsoft and their experiences with opening a store in the past. I thought it was a good idea for Microsoft, and still think it is a good idea for Sony. The main difference this time is, I think Sony has it right. 

Sony needed to fashion themselves close to Apple, because consumer’s desire that hands-on experience. Sony already has some outlet stores in the US, but with these new stores in Japan it may spread to new openings worldwide. The Nagoya store is a touch above the current US retail chains, which I think will prove to be better. So, since Sony has established retail stores, they now need to focus on how to differentiate themselves from Apple.

I am sure you all know what I am going to say next. The differentiation comes from Sony’s culture and brand. If Sony only opened these retail chains and revealed them to the customer exactly like Apple, then there would be no reason to go to a Sony store. Sony has introduced retail chains to parity themselves with Apple, but have fused their culture into the stores to separate the customer’s experience from Apple’s.

Sony believes heavily that these retail stores will drive in more business for them, which is why I believe they will succeed. They are fully vested in them, so they will put the necessary resources into them to deliver the ”SonyStyle” culture. The store has stations connected to each of Sony’s home products, allowing the customer to interact with them all. With that, the store has ”Stylists” that can help the customer with their purchase decision. As you can see Sony’s culture is heavily embedded in the customer’s experience.

Sony needs to provide these superior experiences compared to Apple. The talent that Sony casts into the store will be critical. We have talked a lot over the past week how important your employees are to your company, and again we see here how necessary they are in retail. This will and should take an ample amount of resources to ensure accurate casting. The culture the employees bring is just as important as the overall feel and experience of the store.

Ultimately, it comes down to getting customers in the store. If Sony can’t get customers in their store then these concepts will fail. There are many factors that go into retail before the customer even sets foot in the door. But, I believe that the concept of the store will be stable and will create an experience different than Apple’s. This should drive more business and drive the sales Sony desires.

Where Does Corporate Culture Fit in a Down Economy (Part Last)

Matthew Hudson | March 14, 2010

We have reached the end of our little series, and I hope over the past week you have seen areas where culture can have an impact in your company. Throughout the series, we didn’t discuss all possible benefits of a strong culture, but some benefits I believe are generally understood. That being said, I have faith in you guys!

Anyways, the last part of the series I wanted to bring everything together and give some encouragement to those who are already implementing strong cultures. We talked how culture motivates your employees and how it creates a connection for employees to your company’s purpose. This attracts customers to your company, and it also attracts top prospects to your company.

I was on a panel the other day and one of the members said “Be the type of person that attracts the type of people you want to date.” I know you may think I am mixing up my blogs, but I am going to make a connection here. As a company, you want your culture and the way you do business to attract the type of employees you want as leaders within your organization. If you are attracting sub-par analytical prospects, but you need top notch creative prospects, then you may want to look at how you look to the outside world. Now, you will always need to distinguish between different types of employees, a.k.a your HR department, but wouldn’t it make their lives much easier if they had only A+ talent applying to positions.

Also, culture will differentiate your company and your product. We want your customers to perceive your company and your brand as superior. Culture is the answer, and is what will create the above average experience for the customer. This will help develop lasting relationships with your customers, which are critical in retail and most other industries. Invest the time training and developing your employees and I promise you they will invest the time in your customers. Your “cultured” employees will be what reveals your culture to customers, and therefore are your MVP’s.

Finally, I want to congratulate those of you who are either initiating a culture change, or who have already created strong cultures. I am sure that you are seeing the benefits of your work. Therefore, I want to encourage you to continue investing in your culture. Remember, everything speaks, and the moment your employees or customers perceive your culture differently, your effort could be minimized. Some companies can rebound from these mistakes and others can’t. So, be sure that you are taking the time and using the necessary resources to maintain that culture, because there is no better way to improve your sales.

As for those of you who are thinking about initiating a culture change. Please do! I would recommend help; I am bias towards penumbra media & design, but especially in this economy help will be critical. You will need to make sure you are covering all aspects of a culture change, and at the same time not wasting resources. We are here to help you become better, so I hope you seriously consider the impacts culture can have on your business.

Where Does Corporate Culture Fit in a Down Economy (Part Last)

Matthew Hudson | March 14, 2010

We have reached the end of our little series, and I hope over the past week you have seen areas where culture can have an impact in your company. Throughout the series, we didn’t discuss all possible benefits of a strong culture, but some benefits I believe are generally understood. That being said, I have faith in you guys!

Anyways, the last part of the series I wanted to bring everything together and give some encouragement to those who are already implementing strong cultures. We talked how culture motivates your employees and how it creates a connection for employees to your company’s purpose. This attracts customers to your company, and it also attracts top prospects to your company.

I was on a panel the other day and one of the members said “Be the type of person that attracts the type of people you want to date.” I know you may think I am mixing up my blogs, but I am going to make a connection here. As a company, you want your culture and the way you do business to attract the type of employees you want as leaders within your organization. If you are attracting sub-par analytical prospects, but you need top notch creative prospects, then you may want to look at how you look to the outside world. Now, you will always need to distinguish between different types of employees, a.k.a your HR department, but wouldn’t it make their lives much easier if they had only A+ talent applying to positions.

Also, culture will differentiate your company and your product. We want your customers to perceive your company and your brand as superior. Culture is the answer, and is what will create the above average experience for the customer. This will help develop lasting relationships with your customers, which are critical in retail and most other industries. Invest the time training and developing your employees and I promise you they will invest the time in your customers. Your “cultured” employees will be what reveals your culture to customers, and therefore are your MVP’s.

Finally, I want to congratulate those of you who are either initiating a culture change, or who have already created strong cultures. I am sure that you are seeing the benefits of your work. Therefore, I want to encourage you to continue investing in your culture. Remember, everything speaks, and the moment your employees or customers perceive your culture differently, your effort could be minimized. Some companies can rebound from these mistakes and others can’t. So, be sure that you are taking the time and using the necessary resources to maintain that culture, because there is no better way to improve your sales.

As for those of you who are thinking about initiating a culture change. Please do! I would recommend help; I am bias towards penumbra media & design, but especially in this economy help will be critical. You will need to make sure you are covering all aspects of a culture change, and at the same time not wasting resources. We are here to help you become better, so I hope you seriously consider the impacts culture can have on your business.

Where Does Corporate Culture Fit in a Down Economy (Part 3)

Matthew Hudson | March 12, 2010

We are now moving into the third part of this series. Please tell me I have kept your attention… Yes! Anyways, let’s get on with the post.

The third point was stated briefly in part 2, and that is the potential employees of your company. If you have already been able to initiate the culture change into your current employees, and throughout the rest of your business, then this should be fairly easy.

The hardest part of this part will be determining the hiring process. Some of you may have adapted the hiring processes of the people before you, which may be outdated. Others may have great hiring systems, so this will be much easier for you. Now that you have a set culture, you need to sit down with members of every part of the business and determine the hiring process.

To do this, you will need to ask what is important in your culture. What are the types of qualities, personalities, and motivations that fit your culture? From there you need to understand what are the types of tools you need to use to find the right and best candidates for your culture and company. Will it be multiple interviews or multiple interviews with role play and/or maybe even some personality/logic assessments. Or, maybe you give them some sort of creative project to submit back to you in a week. These are some examples, but there are many more.

The biggest idea of all this is that these potential candidates are interacting with your culture as they proceed through the hiring process. Remember, we said in part 2 of this series, that your culture should attract the type of talent that you would like working for your company. So, make sure that the way you are attracting your talent reflects that culture. The biggest mistake you could make is giving the candidate the wrong impression. Then, once you hire a candidate and they realize they had the wrong impression of your culture, they may become unmotivated or someone who can harm your culture. Which, we don’t want. So, remember when developing and going through your hiring process EVERYTHING SPEAKS.

One of the main reasons a culture change could be beneficial in a down economy is the amount of quality individuals in the candidate pool. For one, I am sure, to some degree your business has either cut positions, or not hired positions that you need, because you want to save resources. Therefore, you may have some opportunities that need filled. What better way to fill those opportunities than with the 10 million individuals who are out of work. There is plenty of talent in these individuals, and they may have encountered some bad luck. You should give these people the benefit of the doubt and the consideration they deserve. Maybe they didn’t fit into the culture they were currently in, and would fit perfectly with yours.

Since, you have designed your hiring process to cast the best employees you can and should have some key players in your culture. We know that your current employees will be the key decision makers and the driving force behind your culture, but these new individuals will be the lifeblood behind your company. They will be the ones most open to your culture, and will be the ones most adaptive to your culture. This means that you will have some of the most committed employees coming through your ranks. In saying that, you need to make sure that you create avenues for growth and an entrepreneurial spirit, because these employees will become the heart of your business.

On the other side of this, I want you to make sure that you don’t neglect your current employees. Each and every employee should be given the same amount of attention. No one in your company should be neglected.

I am not distinguishing on who is more important, but I am giving you ideas of ways you can grow and succeed as a business. So, remember, there are a lot of talented individuals out there, and this may be the best time to invite them into your culture and continue the change you have been making. This should provide another boost to your company and its employees.

Where Does Corporate Culture Fit in a Down Economy (Part 2)

Matthew Hudson | March 10, 2010

We are moving into part two of the series. So, I guess if you are still reading this then I have peaked your interest? Well, I guess we will find out.

The second major point I want to hit on is differentiation. When companies initiate culture changes and it succeeds through their current employees there is something different about them. Consumers see the company as different. And, I don’t mean that in a bad way. They are attracted to the company.

I am sure that the competition in your industry has increased in the past couple years, and you are probably scrambling to find a way to differentiate yourself. I am not saying that a culture change is your only option, but it surely can be a viable one. We know that consumers don’t just interact with your brand in any single area. They have a whole experience with your brand. If you can create a culture that is significant, not only to your employees, but also to your consumers then they will seek out your company.

Along with that, your customers are interacting daily with your employees. And, like mentioned in part 1 of this series, your employees are going to be the driving force behind your culture change. Be wary I am going to make another connection here. Therefore, if you have committed employees to your culture, then you will have committed employees to your customer. And even from that, you will have committed customers to your company, because they will see the effects of the culture.

You may not think it, but consumers see right through gimmicks such as an employee greeting them with a giant smile and saying “How can I help you today.“ I am not saying you or your employees are wrong, but if that employee doesn’t truly believe in the value of that interaction with the customer, then the customer WILL pick up on that. The culture will make the employee-customer interaction unique and authentic. This way the customer will enjoy the experience with your company and will come back for more.

Also, consumers are seeking relationships with the brands they interact with. They want to “feel” the reason they should buy your brand. They want to understand where you are coming from, and they want to be able to give feedback. They want to be involved in the decision. This is why your culture needs employees who believe in your company and in the culture. This way they will want to create that relationship with the customer and the customer will want to create that relationship back.

Now, these interactions with the customer can be extremely different from business to business. It may be very short-term transactional type relationships or even long-term building relationships. But, the key is that each and every interaction is an experience and a relationship for the customer. Your culture is what will make the difference. It will be what authenticates your business to the consumer.

My final point on this, which will lead us into the third point in this series, is that when your company portrays a strong culture, not only do your current employees see that, but potential employees see that. Strong cultures attract top talent. With that, even stakeholders and potential supply chain members will see that and they will want to do business with you. All of this will happen as long as your culture fits who you are as a business and is initiated correctly. It will affect the entire way you do business. For the better of course. Strong, unique cultures ALWAYS differentiate your company and will be beneficial to you.