Monthly Archives: September 2012

Info Exchange – Dreamforce Conference Sir Richard Branson

Welcome to the Loyalty Factor Information Exchange, a bi-weekly service providing summaries of major publications and books on various management and customer relationship topics. 

 Loyalty Factor has been instrumental in helping companies:

  • Increase Customer Satisfaction by 20 – 33%
  • Increase Revenues by 50% in 18 months
  • Increase Manufacturing Production by 200% in 18 months
  • Simplifying mergers and acquisitions

Our information exchange this week highlights the presentation by Sir Richard Branson at the recent Dreamforce Conference. 

Dreamforce Conference: Sir Richard Branson

Sir Richard Branson, Founder of Virgin Group, spoke at the Dreamforce conference this past week inSan Francisco and had a number of thoughts on leadership, as well as his “education for life.”

In Sir Richard Branson’s education for life, these are the principles that he learned about leadership.

1. Always hire the most exceptional person you can and allow them to be the best they can be.

2. Always look for the best in people. He highlighted that as a youth his parents never allowed him to say anything negative about another person. If he did they would send him to the mirror. The message was vey clear: Look for the best in people and your life will be so much richer.

3. Delegation is key. He recommends finding someone who is better than you to do the day to day activities so you can do the strategic thinking and look beyond today.

4. When delegating give people the opportunity to make mistakes.

5. When people let you down, you need to address the issue immediately with face-to-face discussions. If you let the situation go, it will bring others down and you will lose credibility.

6. HUMOR – this is super important in building business.

Sir Richard Branson is a self-made amazing individual that we can all learn from. As he states, “never went to university, just did education on life.”

 

He is an incredible businessman, creative and innovative entrepreneur and a wonderful philanthropist.

 

The Virgin Philosophy:

“It’s not the cheapest way to do it.”

“It’s not the best way to do it.”

“It’s the most amazing way to do it.”

 

For a strategy on how to give your organization a competitive advantage, contact Loyalty Factor at 603.334.3401. Loyalty Factor has helped numerous organizations grow beyond expectations by embracing the above disciplines.

 

The Big E: Employee Engagement

According to Zig Ziglar, workers have three primary needs:

 

    • Interesting work

 

    • Recognition for doing a good job

 

    • Being let in on things that are going on in the company

 

 

In response to the brutal economic and workplace changes that have occurred in recent years, research by Gallup shows that more than 2/3 of American workers are either not engaged in their workplaces – just putting in their time – or actively disengaged – unhappy and spreading discontent.

 

The cost of disengagement is high turnover rates, weak leadership and lack of innovation and creative ideas. When people are disengaged, creativity and innovation become nonexistent. Productivity suffers because people are not in problem solving mode. They are watching the clock instead of coming up with new ways of doing things.

 

Other studies have shown there are significant gaps in earnings due to lack of engagement, and the lack of engagement can cost as much as 35% of payroll.

 

Companies with low employee engagement see a  in the negative growth operating income of -32.7% and percentage growth net income of -3.8%, with a percentage improvement earnings per share of  -11.2%.

 

 

Companies with high employee engagement realize positive effects. They see growth operating income at 19.2%, percentage growth net income of 13.2% with a percentage improvement earnings per share of  27.8%.

 

 

WOW! What a huge difference. With these kinds of results, the importance of engagement is very apparent.

 

What type of workers do you think you have in your organization, and what can you do?

 

Engagement and getting people involved in teams in solving business issues are critical to improving bottom-line results.  

 

Provide the teams with specific goals, objectives, deliverables and timetables for execution and you will see creativity and innovation at its best.
In this team environment you combine left brain, right brain characteristics for whole brain creativity. Each thinking preference is represented, and with proper goals, objectives and deliverables they can leverage their collective creativity.

 

 

 

 

Dianne Durkin is president and founder of Loyalty Factor, a specialized consulting and training company that enhances employee, customer and brand loyalty for some of the nation’s most prominent corporations and many smaller businesses. Dianne’s proven expertise lies in helping companies quickly get to the core issues and outlining their impact on the organization’s profits, productivity and people.  www.loyaltyfactor.com

Info Exchange – Smart Trust

Welcome to the Loyalty Factor Information Exchange, a bi-weekly service providing summaries of major publications and books on various management and customer relationship topics. 

 Loyalty Factor has been instrumental in helping companies:

  • Increase Customer Satisfaction by 20 – 33%
  • Increase Revenues by 50% in 18 months
  • Increase Manufacturing Production by 200% in 18 months
  • Simplifying mergers and acquisitions

Our information exchange this week highlights the book, “Smart Trust: Creating Prosperity, Energy, and Joy in a Low-Trust World” by Stephen M. R. Covey.

 

Smart Trust

In Smart Trust, Stephen M. R. Covey and long-time business partner Greg Link share principles and anecdotes of people and organizations that are not only achieving unprecedented prosperity from high-trust relationships and cultures, but also attaining elevated levels of energy and joy. They show why trust is fast becoming the most consequential life and leadership skill of our time – a career-critical competency required to navigate and compete in this perilous 21st-century, interdependent, global economy.

 

Smart Trust shares findings that verify how enduring success, vitality and happiness are directly related to the level of trust in our relationships – whether in our professional or personal lives.

 

Trust Changes Prosperity

 

A company’s reputation, and its ability to:

  • Partner and collaborate with others,
  • its capacity to innovate,
  • engage its people,
  • to retain great people,

are powerfully affected by trust. Trust has become the new currency of the global economy.

 

The reason there is such a direct connection between trust and prosperity is that trust always affects two key inputs to prosperity: speed and cost. When trust goes down in a relationship, on a team, in an organization, or in a country, speed goes down and cost goes up. Why? Everything takes more time, and miscommunication, redundancy and rework create costly delays.

 

People are able to communicate faster, collaborate better, innovate more, and do business faster and more efficiently. High trust is a performance multiplier – a multiplier that translates directly into greater prosperity: increased revenues, profits, economic outcomes, and results.

 

Trust Changes Energy

 

Although there are numerous drivers of engagement, the two biggest drivers are:

 

1. The relationship of trust employees have with their supervisor.

2. The trust employees have for the organization at large.

 

When we extend trust, we generate trust; when we withhold trust, we generate distrust. Our actions lead either toward a virtuous upward cycle of prosperity, energy and joy; or toward a vicious downward cycle that eventually results in the destruction of these outcomes.

 

A few trust-building behaviors:

 

  • Talk Straight – Be honest. Tell the truth. Let people know where you stand. Use simple language. Call things what they are.

 

  • Create Transparency – Tell the truth in a way people can verify. Get real and genuine. Be open and authentic. Err on the side of disclosure.

 

  • Clarify Expectations – Disclose and reveal expectations. Discuss them. Validate them. Don’t assume that expectations are clear or shared.

 

  • Keep Commitments – Make commitments carefully and keep them at almost all costs – or communicate and renegotiate if you absolutely can’t. Don’t break confidences.

 

To learn more about how to build an organization based on trust, contact Loyalty Factor at 603.334.3401, who offer specialized workshops in building trusting relationships that will last the test of time.

 

Recruit and Retain the Right People in the Right Place at the Right Time

 

Continuing from our last entry on recruiting and retaining, let’s outline some specific actions leaders can take to ensure great hires! 

 

 

 

 

 

If you are going to recruit the right people at the right time in the right place, here are some things you have to focus on when you are hiring:

 

Culture – Think about the characteristics of the people who thrive in your organization.

 

Attitude – There are many things we can teach.  Attitude is not one of them.  You want to hire people who are “positive on life”, self-directed and who are accountable and responsible for their actions.

 

Self-directed people – make choices and accept the consequences of their choices.  These are the people who, when they are wrong, own up to it, accept responsibility and  are accountable for their actions.

 

Competence – Make sure you involve the right people in the interview process, so you can really drill down on all areas of competence from communication and management skills to technical skills. 

 

Taking these focus points into consideration will help you and your organization ensure your new hires will integrate well into your culture and set them up for success.

 

 

Dianne Durkin is president and founder of Loyalty Factor, a specialized consulting and training company that enhances employee, customer and brand loyalty for some of the nation’s most prominent corporations and many smaller businesses. Dianne’s proven expertise lies in helping companies quickly get to the core issues and outlining their impact on the organization’s profits, productivity and people.  www.loyaltyfactor.com