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Cutting through the Clutter
Simple Strategies for Long-Term Growth
BUSINESS STRATEGIES
AT MY ORGANIZATION
There is open communication throughout
all levels of my organization.
Strongly                       Strongly
Disagree                        Agree
  1        2     3        4         5
There is open
communication
throughout all
levels of my
organization.
My supervisor is an active supporter of
the changes that affect our group.
Strongly                          Strongly
Disagree                           Agree
  1        2       3        4          5
My supervisor is
an active
supporter of the
changes that
affect our group.
I am asked for my input regarding the
 changes that affect my work.
Strongly                           Strongly
Disagree                            Agree
  1        2       3        4         5
I am asked for
my input
regarding the
changes that
affect my work.
Leaders in my organization help me see how
changes made today will affect the
organization’s future.
Strongly                             Strongly
Disagree                              Agree
  1        2       3         4          5
Leaders in my
organization help
me see how
changes made
today will affect
the
organization’s
future.
My organization gathered customer data
 that helped define and form our strategy.
Strongly                            Strongly
Disagree                             Agree
  1        2       3        4          5
My organization
gathered
customer data
that helped
define and form
our strategy.
The last business strategy launched by my
organization yielded extremely positive
results.
Strongly                           Strongly
Disagree                            Agree
  1        2      3         4         5
The last business
strategy
launched by my
organization
yielded
extremely
positive results.
Which barrier to success is most prevalent
in your organization?
  1.   Time
  2.   Money
  3.   Short Term Thinking
  4.   People
  5.   Fear
Which barrier to
success is most
prevalent in your
organization?
CUTTING THROUGH THE CLUTTER
Evolve’s Strategic Framework
Why Do Strategies Fail?
 Lack of Validation
  – Strategies are often designed without customer
    input that links to business performance

 Lack of Alignment
  – Employees are not engaged and fail to carry out the
    tactics that support the strategy
  – The corporate culture has not communicated the
    Importance of the strategy or established clear
    accountability
Simple Strategy For Long-Term Growth
 Make validated, data-driven decisions
  – Validation – Your Customers have positively indicated
    that the strategy will improve your relationship and
    increase their spend with you
 Align employees to deliver on the validated strategy
  – Alignment – Your employees are on board and fully
    informed about their role in the strategy
Validating Your Strategy
 Gather un-biased customer data that either
  proves or disproves your hypothesis
 Design your strategies so that they provide
  value to your customers. Value that will
  positively impact your organization’s
  performance
Leveraging Customer
Engagement
Understanding the Health of
Customer Relationships to drive your
Strategies
What is Customer Engagement?
 Your Customer’s
  psychological commitment
  to the organization

 Level of commitment has
  huge impact on
  profitability

 Strategies can be validated
  by studying “Engagement
  Drivers”
Why Measure Customer Engagement?
 Helps us understand what
  drives business performance
  with Customers

 Allows us to understand what
  conditions must exist to build
  a better relationship, thereby
  increasing profitability
Customer Commitment Index (CCITM)
•   Overall Satisfaction
•   Likelihood to continue to do business
•   Likelihood to recommend                    Loyalty

•   Organization stands above most
    others in its commitment to             Differentiation
    customer service

•   Organization shows Customers
                                              Respect
    they really appreciate their
    business

•   Can always trust organization
    to keep its promises                        Trust
Driving Customer Engagement – Sales
 • People showed genuine enthusiasm            5.7
   for their jobs and for their customers
 • My salesperson always put my needs          3.6
   first & had my best interest at heart
 • People made me feel confident they           3.2            Fully
   can tackle the toughest challenges
                                                2.1          Engaged
 • How well problem was handled (if had
   one)
                                                1.9
 • People took real pride in being best at
   what they do; driven to make things       (Odds Ratios)
   better
Aligning Your Organization
 Leverage the engagement of your employees
  to drive better performance
 Create clear expectations and
  communications so that each employee
  knows their role
 Measure the level of employee commitment
  to gauge the organization’s alignment
Employee Engagement
Leveraging the Team to Deliver on
the Strategy
What is your definition of an
Engaged Employee?
Active Disengagement…
Active
Disengagement…
Active Disengagement…
What is Employee Engagement?




  Employee Engagement = Business Performance
What is Employee Engagement?
 Psychological/emotional
  commitment to an
  organization
 Engagement happens with
  each interaction
 Managers are responsible for
  each employee’s level of
  engagement
Why do we Measure Employee
Engagement?
 Engaged teams are more
  productive, profitable, and
  efficient

 The level of Employee
  Engagement can be changed
The Payoff
30%
20%                       Turnover                                                   18%
                                                                         12%                     12%
                     High-      Low-
10%                Turnover   Turnover             Safety Workmanship
       Absenteeism
                     Orgs.      Orgs.  Shrinkage Incidents  Defects
 0%                                                                     Customer Productivity Profitability
                                                                         Loyalty
-10%
-20%
-30%     -27%
                     -31%
-40%
-50%
                               -51%      -51%
-60%
                                                  -62%      -60%
-70%
Engaged Employees are more willing and
able to engage their Customers.

Sales teams in the top quartile for
“My Engagement” are 3.4 times
more likely to earn high Customer     3.4        High
                                      Sales    Customer
Engagement scores than teams                  Engagement
with lower Employee Engagement
scores.
Employee Commitment Index (ECITM)
                                        The basics of
                           My Job      the workplace



                My                               My
            organization                       Manager Perceptions of
Employee loyalty                                        manager behavior
  and pride



           My Customers                        My Team
                                                          Teamwork, trust
        Perceptions of
        Customer care      My Growth
                                     Perceptions of
                                    growth trajectory
Summary
 Validate your strategies by obtaining Customer
  feedback that draws a clear correlation between
  your strategy and business performance

 Align the organization around the strategy by
  understanding the state of the work
  environment, then removing barriers so
  Employees can deliver on the strategies
Q&A

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Cutting Through the Clutter: Simple Strategies for Long-Term Growth

  • 1. Cutting through the Clutter Simple Strategies for Long-Term Growth
  • 3. There is open communication throughout all levels of my organization. Strongly Strongly Disagree Agree 1 2 3 4 5
  • 4. There is open communication throughout all levels of my organization.
  • 5. My supervisor is an active supporter of the changes that affect our group. Strongly Strongly Disagree Agree 1 2 3 4 5
  • 6. My supervisor is an active supporter of the changes that affect our group.
  • 7. I am asked for my input regarding the changes that affect my work. Strongly Strongly Disagree Agree 1 2 3 4 5
  • 8. I am asked for my input regarding the changes that affect my work.
  • 9. Leaders in my organization help me see how changes made today will affect the organization’s future. Strongly Strongly Disagree Agree 1 2 3 4 5
  • 10. Leaders in my organization help me see how changes made today will affect the organization’s future.
  • 11. My organization gathered customer data that helped define and form our strategy. Strongly Strongly Disagree Agree 1 2 3 4 5
  • 12. My organization gathered customer data that helped define and form our strategy.
  • 13. The last business strategy launched by my organization yielded extremely positive results. Strongly Strongly Disagree Agree 1 2 3 4 5
  • 14. The last business strategy launched by my organization yielded extremely positive results.
  • 15. Which barrier to success is most prevalent in your organization? 1. Time 2. Money 3. Short Term Thinking 4. People 5. Fear
  • 16. Which barrier to success is most prevalent in your organization?
  • 19. Why Do Strategies Fail?  Lack of Validation – Strategies are often designed without customer input that links to business performance  Lack of Alignment – Employees are not engaged and fail to carry out the tactics that support the strategy – The corporate culture has not communicated the Importance of the strategy or established clear accountability
  • 20. Simple Strategy For Long-Term Growth  Make validated, data-driven decisions – Validation – Your Customers have positively indicated that the strategy will improve your relationship and increase their spend with you  Align employees to deliver on the validated strategy – Alignment – Your employees are on board and fully informed about their role in the strategy
  • 21. Validating Your Strategy  Gather un-biased customer data that either proves or disproves your hypothesis  Design your strategies so that they provide value to your customers. Value that will positively impact your organization’s performance
  • 22. Leveraging Customer Engagement Understanding the Health of Customer Relationships to drive your Strategies
  • 23. What is Customer Engagement?  Your Customer’s psychological commitment to the organization  Level of commitment has huge impact on profitability  Strategies can be validated by studying “Engagement Drivers”
  • 24. Why Measure Customer Engagement?  Helps us understand what drives business performance with Customers  Allows us to understand what conditions must exist to build a better relationship, thereby increasing profitability
  • 25. Customer Commitment Index (CCITM) • Overall Satisfaction • Likelihood to continue to do business • Likelihood to recommend Loyalty • Organization stands above most others in its commitment to Differentiation customer service • Organization shows Customers Respect they really appreciate their business • Can always trust organization to keep its promises Trust
  • 26. Driving Customer Engagement – Sales • People showed genuine enthusiasm 5.7 for their jobs and for their customers • My salesperson always put my needs 3.6 first & had my best interest at heart • People made me feel confident they 3.2 Fully can tackle the toughest challenges 2.1 Engaged • How well problem was handled (if had one) 1.9 • People took real pride in being best at what they do; driven to make things (Odds Ratios) better
  • 27. Aligning Your Organization  Leverage the engagement of your employees to drive better performance  Create clear expectations and communications so that each employee knows their role  Measure the level of employee commitment to gauge the organization’s alignment
  • 28. Employee Engagement Leveraging the Team to Deliver on the Strategy
  • 29. What is your definition of an Engaged Employee?
  • 33. What is Employee Engagement? Employee Engagement = Business Performance
  • 34. What is Employee Engagement?  Psychological/emotional commitment to an organization  Engagement happens with each interaction  Managers are responsible for each employee’s level of engagement
  • 35. Why do we Measure Employee Engagement?  Engaged teams are more productive, profitable, and efficient  The level of Employee Engagement can be changed
  • 36. The Payoff 30% 20% Turnover 18% 12% 12% High- Low- 10% Turnover Turnover Safety Workmanship Absenteeism Orgs. Orgs. Shrinkage Incidents Defects 0% Customer Productivity Profitability Loyalty -10% -20% -30% -27% -31% -40% -50% -51% -51% -60% -62% -60% -70%
  • 37. Engaged Employees are more willing and able to engage their Customers. Sales teams in the top quartile for “My Engagement” are 3.4 times more likely to earn high Customer 3.4 High Sales Customer Engagement scores than teams Engagement with lower Employee Engagement scores.
  • 38. Employee Commitment Index (ECITM) The basics of My Job the workplace My My organization Manager Perceptions of Employee loyalty manager behavior and pride My Customers My Team Teamwork, trust Perceptions of Customer care My Growth Perceptions of growth trajectory
  • 39. Summary  Validate your strategies by obtaining Customer feedback that draws a clear correlation between your strategy and business performance  Align the organization around the strategy by understanding the state of the work environment, then removing barriers so Employees can deliver on the strategies
  • 40. Q&A

Hinweis der Redaktion

  1. Validation: Southwest terminals – tvs, AMR investing in 1st class seat installsAlignment: Sysco SAP investment wasted
  2. Talking Points:Sales Engagement Drivers – these are odds ratios. These results are based on the composite data from all Advance Group dealers. If someone gave a “5” to People showed genuine enthusiasm for their jobs and for their customers, then they are 5.7 times more likely to be Fully Engaged. These odds ratios identify the most important things a dealership can do to drive Customer engagement. Some things are not easy or able to be “trained in.” The items shown here are likely best achieved in terms of hiring practices and job alignment of the appropriately talented individuals. (Change slide)