INSPIRING CUSTOMER LOYALTY (HOW EMPLOYEE EXPERIENCE DRIVES THE LIFELINE FOR CUSTOMER EXPERIENCE) YOUR FRONTLINE PAUL DICKINSON CONSULTANT

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1 INSPIRING CUSTOMER LOYALTY (HOW EMPLOYEE EXPERIENCE DRIVES THE LIFELINE FOR CUSTOMER EXPERIENCE) YOUR FRONTLINE PAUL DICKINSON CONSULTANT

2 We ve all been on the end of good and bad service Today s customers are expecting more for less Organisations are investing heavily in technology But when things go wrong... it s your people that make the difference Forward thinking organisations are bringing their people closer to the heart of the business in order to drive customer loyalty

3 Agenda A Tale of Two Famous Companies The Seven Components of the McKinsey 7-S Model The Human 7-S Model What s Your Approach?

4 A TALE OF TWO FAMOUS COMPANIES

5 A TALE OF TWO FAMOUS COMPANIES

6 A TALE OF TWO FAMOUS COMPANIES

7 Brand Engagement Model Great Brand Engaged Employees Iconic Products & Customer Experience Sustained Profit & Growth Inspiring Leadership

8 Brand Engagement Model Great Brand Engaged Employees Iconic Products & Customer Experience Sustained Profit & Growth Inspiring Leadership

9 DHL EXPRESS

10 DHL Express The Challenge In the 60s DHL Express invented an industry In the 70s and 80s the global footprint accelerated from Antigua to Zimbabwe In the 90s Diana Ross made DHL a household name with our Ain t No Mountain High enough TV advert However, in the early 00s, the US Domestic business had to be closed due to fierce competition and the fact that it was losing 2.5Bn annually Employees were confused and something needed to happen... fast

11 ADVENTURES IN SHERWOOD FOREST THE bottom line Brief: each of the teams represents 2 departments of DHL express. There will be 8 transactions between the 2 departments. round DePT. A DePT. B DHL Express The Question RESULTS FOCUSED LEADERSHIP Robin Hood and his men have been captured by the Sheriff of Nottingham s army and transported to the tower of Nottingham Castle, home of the Sheriff. Enter Maid Marion, sweetheart of Robin Hood, who also lives at the castle. Upon hearing of Robin s plight, she approaches the Sheriff to plead for Robin s release. The Sheriff is in love with Maid Marion but she has always rejected him. The Sheriff knows that this is probably because she has feelings for Robin Hood. He therefore gives her an ultimatum: Sleep with me and I will release Robin and his men. Refuse, and I will have no choice but to execute them all at dawn. Uncertain of her decision, Marion turns to her life-long friend Friar Tuck for advice. You must make up your own mind, Marion, replies the Friar, but remember your virtues. Maid Marion eventually decides that the lives of Robin and his men are the most important thing. Telling herself that Robin need never know, she secretly goes to the Sheriff s room that night. Meanwhile, the girlfriend of Little John, one of Robin Hood s men, a serving maid in the castle, drugs the jailer s drink and Robin and his men manage to escape the tower. The serving maid tells Little John of Marion s rendezvous with the Sheriff. Once away from the castle, Little John passes on the news to Robin. The next morning, Marion hears of Robin s escape and immediately runs to the forest to share in the celebration. She is greeted by an angry rebuke from Robin who says: Go back to your Sheriff, I never want to see you again. Marion turns to the Friar for support, who states, I told you that your virtues were important. Devastated, Marion returns to the castle, uncertain of her fate in the Sheriff s hands. for every transaction, each department will either play their red or blue card by showing it to the facilitator. The purpose of the activity is to accumulate as much money as possible at the end of the 8 transactions. Money is awarded as follows: if both departments choose red, both departments are awarded 500 if both departments choose blue, both departments have 500 deducted if one department chooses red and the other blue, the blue department is awarded 1,000 but the red department has 1,000 deducted After the fourth and seventh transaction, a representative from each department may meet and negotiate on the remaining transactions. This is an option, and both departments must want to meet. The meeting is for a maximum of 2 minutes. The department scores for transaction number 5 will be doubled. The department scores for the final transaction will be quadrupled. TOTAL Please Note: Score for round 5 should be multiplied by 2. Score for round 8 should be multiplied by st Meeting after round 4 5. x 2 = x 2 = 2nd Meeting after round 7 8. x 4 = x 4 = MANAGING AT PEAK PERFORMANCE RESPECT being SUCCESSFUL THINK How do you design a training programme to engage 100,000 people that can be rolled out MUSICALITY FEEL SAY Enthusiastic consistently in 220 countries around the world DO in under 18 months? DHL Express wanted a programme that reconnected employees with its strategy in order to create a highly engaged, insanely customer centric global network that would differentiate DHL Express from its competitors in the logistics industry.

12 ADVENTURES IN SHERWOOD FOREST THE bottom line Brief: each of the teams represents 2 departments of DHL express. There will be 8 transactions between the 2 departments. round DePT. A DePT. B DHL Express The Answer RESULTS FOCUSED LEADERSHIP Robin Hood and his men have been captured by the Sheriff of Nottingham s army and transported to the tower of Nottingham Castle, home of the Sheriff. Enter Maid Marion, sweetheart of Robin Hood, who also lives at the castle. Upon hearing of Robin s plight, she approaches the Sheriff to plead for Robin s release. The Sheriff is in love with Maid Marion but she has always rejected him. The Sheriff knows that this is probably because she has feelings for Robin Hood. He therefore gives her an ultimatum: Sleep with me and I will release Robin and his men. Refuse, and I will have no choice but to execute them all at dawn. Uncertain of her decision, Marion turns to her life-long friend Friar Tuck for advice. You must make up your own mind, Marion, replies the Friar, but remember your virtues. Maid Marion eventually decides that the lives of Robin and his men are the most important thing. Telling herself that Robin need never know, she secretly goes to the Sheriff s room that night. Meanwhile, the girlfriend of Little John, one of Robin Hood s men, a serving maid in the castle, drugs the jailer s drink and Robin and his men manage to escape the tower. The serving maid tells Little John of Marion s rendezvous with the Sheriff. Once away from the castle, Little John passes on the news to Robin. The next morning, Marion hears of Robin s escape and immediately runs to the forest to share in the celebration. She is greeted by an angry rebuke from Robin who says: Go back to your Sheriff, I never want to see you again. Marion turns to the Friar for support, who states, I told you that your virtues were important. Devastated, Marion returns to the castle, uncertain of her fate in the Sheriff s hands. for every transaction, each department will either play their red or blue card by showing it to the facilitator. The purpose of the activity is to accumulate as much money as possible at the end of the 8 transactions. Money is awarded as follows: if both departments choose red, both departments are awarded 500 if both departments choose blue, both departments have 500 deducted if one department chooses red and the other blue, the blue department is awarded 1,000 but the red department has 1,000 deducted After the fourth and seventh transaction, a representative from each department may meet and negotiate on the remaining transactions. This is an option, and both departments must want to meet. The meeting is for a maximum of 2 minutes. The department scores for transaction number 5 will be doubled. The department scores for the final transaction will be quadrupled. TOTAL Please Note: Score for round 5 should be multiplied by 2. Score for round 8 should be multiplied by st Meeting after round 4 5. x 2 = x 2 = 2nd Meeting after round 7 8. x 4 = x 4 = MANAGING AT PEAK PERFORMANCE RESPECT being SUCCESSFUL THINK NKD developed CIS Foundation a highly immersive and interactive 1.5-day engagement MUSICALITY FEEL SAY Enthusiastic event incorporating innovative learning methodologies, employing Accelerated ITY DO Learning techniques to maximise recall and retention of key messages.

13 ADVENTURES IN SHERWOOD FOREST THE bottom line Brief: each of the teams represents 2 departments of DHL express. There will be 8 transactions between the 2 departments. round DePT. A DePT. B DHL Express The Impact RESULTS FOCUSED LEADERSHIP Robin Hood and his men have been captured by the Sheriff of Nottingham s army and transported to the tower of Nottingham Castle, home of the Sheriff. Enter Maid Marion, sweetheart of Robin Hood, who also lives at the castle. Upon hearing of Robin s plight, she approaches the Sheriff to plead for Robin s release. The Sheriff is in love with Maid Marion but she has always rejected him. The Sheriff knows that this is probably because she has feelings for Robin Hood. He therefore gives her an ultimatum: Sleep with me and I will release Robin and his men. Refuse, and I will have no choice but to execute them all at dawn. Uncertain of her decision, Marion turns to her life-long friend Friar Tuck for advice. You must make up your own mind, Marion, replies the Friar, but remember your virtues. Maid Marion eventually decides that the lives of Robin and his men are the most important thing. Telling herself that Robin need never know, she secretly goes to the Sheriff s room that night. Meanwhile, the girlfriend of Little John, one of Robin Hood s men, a serving maid in the castle, drugs the jailer s drink and Robin and his men manage to escape the tower. The serving maid tells Little John of Marion s rendezvous with the Sheriff. Once away from the castle, Little John passes on the news to Robin. The next morning, Marion hears of Robin s escape and immediately runs to the forest to share in the celebration. She is greeted by an angry rebuke from Robin who says: Go back to your Sheriff, I never want to see you again. Marion turns to the Friar for support, who states, I told you that your virtues were important. Devastated, Marion returns to the castle, uncertain of her fate in the Sheriff s hands. for every transaction, each department will either play their red or blue card by showing it to the facilitator. The purpose of the activity is to accumulate as much money as possible at the end of the 8 transactions. Money is awarded as follows: if both departments choose red, both departments are awarded 500 if both departments choose blue, both departments have 500 deducted if one department chooses red and the other blue, the blue department is awarded 1,000 but the red department has 1,000 deducted After the fourth and seventh transaction, a representative from each department may meet and negotiate on the remaining transactions. This is an option, and both departments must want to meet. The meeting is for a maximum of 2 minutes. The department scores for transaction number 5 will be doubled. The department scores for the final transaction will be quadrupled. TOTAL Please Note: Score for round 5 should be multiplied by 2. Score for round 8 should be multiplied by st Meeting after round 4 5. x 2 = x 2 = 2nd Meeting after round 7 8. x 4 = x 4 = MANAGING AT PEAK PERFORMANCE RESPECT being SUCCESSFUL THINK Gold winner of the TJ Awards 2012 for Best Commercial or Private Training Programme MUSICALITY FEEL SAY Enthusiastic and Silver winner for Best Training Partnership. DO In less than 18 months, 100,000 DHL Express employees in 220 countries in 42 languages had successfully passed through the CIS Foundation module Employee Opinion Scores for Understanding Strategy, Employee Engagement and Learning and Development increased by 7-11% (target was 1-3%) Revenues climbed to record levels in 2016 The division s EBIT increased by 21% from 2011 to 2012, to 1.10 billion euros, and a further 33% to 1.47 billion euros in 2013 in 2016, it is over 1.5 billion euros

14

15 TESCO

16 Tesco Dotcom The Challenge In December 2014, Tesco came to NKD with the request to help them create a foundation programme for their Customer Delivery Assistants (CDAs), and Grocery Home Shopping Delivery Drivers in a non-tesco language. Competition was high in the online grocery market Tesco had identified 51 stores that stood to be impacted Tesco needed to make sure it lived up to its vision of being loved by its customers 1,500 CDAs needed to become emotionally and rationally connected to delivering their best service to their customers

17 Tesco Dotcom The Answer The Delivering Our Best Service skills bite was designed to reconnect the CDAs with the key service aspects of their role by: Ensuring they understood what matters most to their customers Reminding them that they play a vital role in meeting multichannel customer needs Listening to what gets in the way of delivering great service Identifying the key behaviours expected on the doorstep Equipping them with the confidence and skills to have relaxed, engaging conversations with customers and deal with complaints

18 Tesco Dotcom The Impact Initial Roll Out (1,500 CDAs at 51 stores): A staggering 38% increase in customer compliments for the CDAs Those trial stores out-performed the rest of the estate by 4% Satisfaction with the Helpfulness of the Driver increased by 4% Satisfaction with Freshness also increased 4% Delivery of the Perfect Order was up 7% The results proved such a success that the initial programme was widened to include the rest of the Tesco estate, meaning a further 18,500 CDAs went through the Delivering Our Best Service programme.

19 Tesco Dotcom The Impact National Roll Out: Online market share increased by 3.8% from previous year Retention of loyal shopper increased to a record 68.4% Perfect Order improved to a record 30.6% which was a year on year increase of 6% Satisfaction with Driver Helpfulness achieved a record high of 81.6% CDAs offering refunds on substitutions significantly declined, to lowest levels

20 Tesco Dotcom The Customer Impact Customer Feedback The driver was absolutely amazing. He went above and beyond. It wasn t his fault the order was late, so it was understandable. He has a very friendly demeanour and was incredibly helpful. Source: Customer Pulse, Enfield Couldn t fault it, everything was there, and had an amazing delivery driver who offered to put all my shopping away for me as I am 2 weeks away from having my baby. Source: Customer Pulse, Ipswich Extra We find short dated items are a real issue, and some replacements are not suitable. We have considered stopping using Tesco, but because customer services are helpful we have stayed. Source: Customer Pulse, Sandhurst Extra

21 A Task of Herculean Complexity Attract Attract Recruitment Advertising Onboarding Marketing & promotions Leadership Products Engage Communication People fuel Making & keeping promises Customer fuel Service delivery Engage Performance development Loyalty programmes Learning Innovation Grow Grow

22 HEAD, HEART AND HUMANITY

23 The McKinsey 7-S model Style Strategy Skills Shared values Staff Systems Structure

24 The Human 7-S Model (Strengths) Style What are the strengths in your organisation? What is the impact on Employee Experience? What is the impact on Customer Experience? Strategy Skills Shared values Staff Systems Structure

25 The Human 7-S Model (Opportunities) Style What are the opportunities in your organisation? What would be the impact on Employee Experience? What would be the impact on Customer Experience? Strategy Skills Shared values Staff Systems Structure

26 What s your approach?

27 Thank You 69 Turnmill Street 1st floor London EC1M 5RR United Kingdom T. +44 (0) nkd.co.uk