Purpose & Wow Customer Experience

Ole Kassow from Purpose Makers joined us with a presentation on Purpose & Wow Customer Experience (Danish):

Customer Experience Scorecards

During the session, Network & Academy participants had to reflect upon what aspects/dimensions were most critical to creating a great Customer Experience in their organisation. Each participant had to produce a Customer Experience Scorecard for a specific product/service in their company and make a self assessment score.

Below and example of an Apple scorecard and score for inspiration:

Apple Customer Experience Score

After working on individual Customer Experience Scorecards we made some of the participants to present their score cards and got constructive feedback from the rest of the participants. The day ended by having an open event where Richard Kelly (Managing Director of IDEO Asia) joined us on Skype to share global/Asian perspectives on Customer Experience.

Richard Kelly, Managing Director, IDEO Asia on Customer Experience

(We apologize for low resolution picture quality – sound should be ok)

Thanks to all the participants. Next Leadership Network & Academy session will be March 7 on Radical Sustainability, where Nadine Gudz, Head of Sustainability Strategy at Interface will join us for some great insights about how a leading sustainable organization works around sustainability.

Start with the “Why?”!

In his very famous TEDx video Simon Sinek presents a simple but powerful model of how great companies and leaders inspire others to act, starting with a golden circle and the question “Why?” The video below demonstrates the power of truly exceptional companies and how they communicate:

WOW Customer Experience at LEGO

This week LEGO made headlines on the Customer Experience area, after an awesome response to a 7 year old boy who lost his Ninjago Figure. Read and learn how to WOW a 7 year old boy here.

Conny Kalcher, Vice President of Customer Experience for LEGO visited the Leadership Network in 2010 and Rebuild21 in 2011 to share how LEGO works with Customer Experience. A very systematic approach to working with Customer Experience and Engaging Consumers. Great inspiration:

Co-creation – How to build raving fans, Conny Kalcher, LEGO from Rebuild21 on Vimeo.

Measuring Customer Satisfaction: Net Promoter Score

There are many ways to measure Customer Satisfaction. Often the number of measurements and questions you pretend asking your customers grow out of proportion. This made Frederick F. Reichheld develop The Net promoter Score (NPS) – a very simple and popular method.

LEGO has together with Apple and many other global brands integrated Net Promoters Score (NPS), as a core component in measuring customer experience. Net Promoters Score is a very simple principle/score where costumers on a scale from 0-10 are asked: Would you recommend this product to a friend or a person you know? Customers answering 9-10 are promoter. Customers answering 7-8 are passives. And customers answering 0-6 are detractors.

The Net Promoters Score: NPS = % of promoters – % of detractors

Net Promoters Score is as seen a simple but also powerful measurement. It is very much aligned with research about how people make decisions about buying products, as seen from the Forrester survey mentioned above. Read more about Net Promoters Score here.

Watch Bain & Company’s Rob Markey explain and reflect on NPS:

How to work with Customer Experience in your company?

One thing is to measure Customer Satisfaction, another is how to improve it and take it to the next level. Some companies work with Customer Flow Charts, Touch Point Analysis and Patient Journeys.

To get you inspired and started, we share a scorecard that was developed in the Leadership Academy – a tailored model on Customer Experience for the ‘consumer electronics category’. Below we have scored Apple:

Some would argue that price should not be part of the diagram as one aligned dimension but should be a separate factor. We have kept it for simplicity. But keep in mind that where the score on the rest of the dimensions should be based on a backed or assumed customer experience – price should be scored based on an industry/category/product benchmark of de-facto prices.

Do you agree with our score of Apple? If not please comment and give constructive feedback on the dimensions! The “Brand / Philosophy /Lifestyle” dimension is what Simon Sinek Refers to as the “Why?”.

-> No one fit’s all: Reflect upon the most critical parameters that shape your Customers Experience today. If you work for a big organisation with many products lines, choose a category or select a specific product and target audience.

Leadership Academy & Network Session on Customer Experience

For more inspiration on WOW Customer Experience we have gathered some models and videos here: WOW Customer Experience

The aim of the day

Participants will spend the day getting inspired by powerful speakers in the Customer Experience area, to later create a Customer Experience Scorecard based on a company of election. Based on the score, participants will then make an Action Plan on how to improve Customer Experience in their organisation.

We will provide inspiration, tools and support. Ole Kassow, Partner in Purpose, will share great Customer Experience Cases and stay to support participants during the day. At the end of the day we have Richard Kelly take the stage, Managing Director of IDEO Asia, by joining us on Skype to share global/Asian perspectives on Customer Experience.

The Agenda

09.00-09.25 Welcome, Sofus Midgaard, Leaderlab
09.30-10.30 WOW Customer Experience: Ole Kassow, Purpose
10.30-10.45 Break
10.45-12.15 Design your Customer Experience Scorecard
12.15-13.00 Lunch
13.00-13.30 Score your company on Customer Experience
13.30-14.00 Present & get feedback
14.00-14.15 Break
14.15-14.45 Make action plan
14.45-15.45 Presentation & feedback
15.45-16.00 Wrap-up and next time
16.00-17.00 Richard Kelly, IDEO, Shanghai (Skype): WOW Customer experience Asian style

IDEO & Richard Kelly

IDEO is an award-winning global design firm that takes a human-centered, design-based approach to helping organizations in the public and private sectors innovate and grow. IDEO has been a part of Rebuild21 in 2011 and 2012. If interested you can watch Richard Kelly’s Rebuild21 talk on Banks of the Future. If interested in how IDEO works here is a video that might give you an impression.

The education is case-based and the process is designed to secure maximum value for participant and the sponsor company. Participants will gain in-dept insights about ‘next practice’ in leadership, strategy, innovation, organisation, customer service, sustainability and CSR.

During the course participants will prepare and present a case catalogue of ten 21st century innovators relevant to the sponsor company. Based on the case catalogue each participant will prioritize 2-3 next practice initiatives and present a plan for implementation in the sponsor company.

Read more about The Leadership Academy  programme 2012/2013:

     

More desperate than ever the world needs a game plan for sustainable growth. Denmark once was a pioneer in green energy development.

We have invited Minister for the Environment Ida Auken and a panel of Industry leaders to discuss the potentials of a more constructive and green path to growth and how we can make it happen.

As a LeaderLab member you are guaranteed a seat, but you can also bring a friend for free if he/she sign up here!  Rebuild21 participants are welcome as well – but there are only 100 tickets so sign up sooner than later.

Agenda – January 19th 2012:

09.00-09.15 Welcome & Introduction to challenges

9.15-10.15 Group brainstorms

10.15-10.30 Break

10.30-10.45 Ida Auken, Minister for the Environment (DK)

10.45-11.30 Panel discussion – presentation of ideas and suggestions

11.30-13.00 LeaderLab meeting (Members only)

- As you can see it will not be a lean-back experience. Join us and help shape the ideas and the debate.

Speakers and panel

Ida Auken, Minister for the Environment (DK)

Fei Chen, Innovation Platform Director Grundfos

Nickie Spile, Vice President R&D, Novozymes

To be announced...

Background

We are now 7 bill. people on the planet. By 2035 around 70% of the world population will live in cities. The price of energy and food is climbing. We are the most in-dept, medicated and obese generation ever. We are not close to a realistic solution to tackle climate change. And we are facing yet another collapse of the world economy.

More desperate than ever need the world needs a game plan for sustainable growth. Denmark once was a pioneer in green energy development. But green growth is not just about idealism – its big business and a global race to deliver the sustainable solutions of tomorrow.

In 2011 both Rebuild21 and Green Growth Leaders explored the potentials of a New Danish wave of Green Growth. But what will it take to unleash the potentials and take the lead? What can politicians do? What can companies do? What can investors do? And what can we do as citizens? Join us and help shape the ideas and the debate.

Practical information & sign up

The event is for LeaderLab members and Rebuild21 participants only but you can bring a friend or colleague.

 
There are only 100 seats… First come, first served. Sign up here.

The open event takes place January 19th from 9.00-11.30.

Location

Kulturhuset Islands Brygge
Islands Brygge 18
2300 København S

March 31st 2011, Danish Minister of Science & Innovation Charlotte Sahl-Madsen and Professor & CEO of CBS-SIMI Robert Austin joins LeaderLab for a brainstorm and discussion on global innovation and competition.

Global outlook on innovation

Robert D. Austin will take us on a global tour to give us a picture of how the competitive and innovative landscape is changing. Robert will try to answer the following questions:

• How is the global competitive and innovative landscape changing in these years?
• What are the core challenges for the Danish/Nordic/EU countries?
• What are the Danish/Nordic strongholds we can build on for the future?

Before joining CBS and CBS-SIMI Executive as Professor & CEO, Robert was a professor at Harvard Business School (HBS), where he continues to chair an executive program each year.

In search for a competitive edge

Charlotte Sahl-Madsen, Danish Minister for Science, Technology & Innovation is also joining LeaderLab. Not to defend the Innovation policy of the Danish Government. In stead we have asked her to share what she personally sees as the five biggest challenges for growth and innovation.

The challenges will be the starting point for a discussion, feedback and following group sessions where we will identify and prioritize possible solutions to the challenges.

Full program available here – the meeting is for members of LeaderLab only.

Purpose First. Then Profit

With a combined focus on meaning, happiness, sustainability and radical innovation Umair Hague inspires us to recalibrate the hopelessly unbalanced ‘balanced scorecards’ of most big corporations today. He offers us a brilliant metaphor for our situation:

“Prosperity on an ark differs radically from prosperity in a game reserve. In our metaphor of yesterday’s capitalism as a game reserve, economic institutions were built to organize daily hunting most efficiently. They matched the swiftest, most powerful hunters to the biggest game to generate prosperity. But if the rules of hunting are to manage an ark, the result will repeated crisis and eventual collapse. In a big, empty, stable world, hunters can borrow benefits and shift costs with abandon, accumulating deep debt. Throw your bones away here. It doesn’t matter… But in a tiny crowded fragile ark, everything counts. There’s no one left to borrow benefits from or shift costs to: the destines are all inextricably interdependent… Here then is the predicament the global economy is in today. We’re using rules built for hunting to manage an ark…”

The New Capitalist Manifesto essentially delivers a rethinking of most of the strategic thinking taught at leading Business Schools around the world – including Harvard Business School.

The Constructive Capitalist of the 21st century

Fine with the idealism. What’s the case for Constructive Capitalism? Why should you be a Constructive Capitalist? The simplest reason is: because Constructive Capitalists don’t just outperform—they redraw the boundaries of disruptive outperformance. This chart shows the performance of Constructive Capitalists vis a vis market indices (the Nasdaq, S&P 500, and Dow Jones) over the last decade.

Source: The New Capitalist Manifesto

Below some of the companies that according to Umair Hague has one or more of the component of a 21st century constructive capitalist. He cites Google as an example of a value-driven business with a celebrated commitment to do no evil, its preoccupation with speed and its commitment to open data. He cites companies like Threadless, LEGO and Starbucks for commitment to co-creation. And he cites companies like Apple, TATA and Nintendo for their radical innovation and ability to redefine the music-, mobile phone-, game- and car- market.

The Constructive Capitalist of the 21st century: Google, Apple, Lego, Nintendo etc

Here are the Construtive Capitalists and their counterparts.

• 

  Apple vs. Sony
  (Redefining markets: music, video and mobile phones)

• Google vs. Yahoo
  (By philosophy, values and dedication to Open Data)
• Nintendo vs. Sega
  (Redefining the consol gaming market)
• Threadless vs. The Gap
  (Winning by user engagement through co-creation)
• LEGO vs. Mattel
  (Wining by stronger values, philosophy and co-creations)
• Nike vs. Adidas
  (Winning by customer communities + sustainability)
• Starbucks vs. McDonalds
  (Winning through Open Innovation + Fair Trade + Sustainability)
  
• TATA vs. General Motors
  (Winning through new market category with the Nano)

Summary

The Capitalist Manifesto is an inspiring, thought provoking and important book. Forget all about classic CSR – Umair Hague is much more radical in his approach. A must read for everyone interested in making his or her company or organizations ready for the 21st century.

Buy the book at Amazon

Also visit Umair Hague’s blog at Harvard Business Review.

Source: http://tcktcktck.org/stories/campaign-stories/wake-call-pictures

On top of that many employees experience a huge disconnect between access to the open, social and collaborative tools and social software for private use – and the closed and rigid systems and structures of corporate software.

” 71% agree that it is easier to locate “knowledge” on the web than to find it within their internal systems.”
Source: AIIM Industry Watch Collaboration and Enterprise 2.0, 2009

We need to reboot organizational thinking of the 20th century

We need to reboot organizational thinking of the 20th century and once again build efficient, innovative and responsive organizations based on trust, openness and collaboration.

Source: http://youcube.us/cubicle-21/

”The only irreplaceable capital an organization possesses is the knowledge and ability of its people. The productivity of that capital depends on how effectively people share their compete nce with those who can use it. ”
Andrew Carnegie, 1835-1919

Some would claim that organizations have always been social. Some would even claim that ‘social’ is what constitutes an organization. But what then happened during the 20th century that changed the dynamic of open, engaging and social organizations? Watch Lee Bryant’s provocative summary of how management of the 20st century have resulted in huge crisis for many big corporations of the 21st century.

The potential of a more social and networked organization is not only to become more innovative and responsive to customer feedback – it is also to be more productive.

Every new organizational trend and enabling technologies has its skeptics. So is the case with The Social Organization, The Networked Organization or Enterprise 2.0 as it’s often refered to. CEO’s, CFO’s and CIO’s have seriously questioned whether Enterprise Social Software and Social Media contribute possitive to business performace.

What’s the R.O.I. of being a social and networked Enterprise?

A new McKinsey research clearly link being a more social and networked organization to higher productivity, better innovation and faster time to market. A new class of fully networked companies is emerging – one that uses social media and collaborative software intensively to connect employees and to extend the organization’s reach to customers, partners, and suppliers.

Source: McKinsey Quarterly

The Social Organization – Leadership perspectives

Open, transparent and collaborative organization challenge the traditional Leadership role. In this interview with Gary Hamel, Google CEO, Eric Schmidt talks about the corporate culture of Google and shares some of the leadership thinking behind leading on transparent, social and very innovative organization.

Open Leadership – The new Leadership role

Lars Kolind, Chairman, Author and Entrepreneur shared his view on the Leadership role of the future at a LeaderLab event in September 2010. How do you tranform companies into movements? What’s the power of meaning? And how do you lead open, transparent and social organization of the future?

Below are some of the great stuff we stumpled upon and was inspired by.

Inspiration:

McKinsey Quartly survey on the R.O.I. of Enterprise 2.0: The networked Organization

Lee Bryant’s presentation: Designing twenty-first century organisations with social tools

Wall Street Journal – great article: The End of Management

Dachis Group: Six Social Business Trens to Watch

Gary Hamel: The Facebook Generation vs. The Fortune 500

Oscar Berg: The Social Intranet

With the explosions of in the use search engines like Google and social media like Facebook and Twitter, earned communication plays an increasingly important role in consumer choice of products and services in the future.

Source: Forrester

As this Forrester survey documents – the opinion of friends or people you know have tried a product are the most important factor in deciding whether to buy a product. This is not new some would argue. Word of mouth has always been a critical part of the consumer decision-making process. But the new thing is that access to word of mouth and global consumers opinions have improved dramatically with the Internet and Social Media. Consumers today are crowd-sourcing decissions on anything from what cell-phone service to choose, what online banks are Mac-compatible and what carrier bike are best for transporting their children.

LEGO: Engaging Users and Building Raving fans

Conny Kalcher, Vice President for Consumer Experience at LEGO, joined LeaderLab last week to share insights on how LEGO are engaging with lead users and fans.

With products like LEGO Mindstorms and LEGO Design By Me, LEGO has demonstrated both how to form strategic partnerships but also how to open up products for user participation, mass-customization and co-creation.

LEGO is one of the world most sucesfull companies when it comes to earned communication, demonstrated by:

• 50 million hits on Google
• 765.000 Youtube videos
• 883.000 pictures on Flickr

This is not the result of an aggresive social media strategy the last couple of years, but a long company tradition of involving lead users and fans.

Net Promoter Score

LEGO has together with Apple and many other global brands integrated Net Promoters Score (NPS), as a core component in measuring customer experience. Net Promoters Score is a very simple principle/score where costumers on a scale from 0-10 are asked: Would you recommend this product to a friend or a person you know? Customers answering 9-10 are promoter. Customers answering 7-8 are passives. And customers answering 0-6 are detractors.

The Net Promoters Score: NPS = % of promoters – % of detractors

Net Promoters Score is as seen a very simple but also very powerful measure. It is very much aligned with research about how people make decisions about buying products, as seen from the Forrester survey mentioned above. Read more about Net Promoters Score here.

Hijacked Media

As interesting as successful cases on earned communication from loved consumer brands like LEGO, is of course when things go wrong. What happens when angry consumer or former employees hijack brands and well coordinated campaigns.

In September 2010 Matthew Guiste from Starbucks joined us from Seattle to talk about Open Innovation and the Social Media philosophy. Starbucks is indisputably one of the most successful brands in Social Media with around 15 mill. fans on Facebook and more than 1 mill. followers on Twitter. But even prepared Social Media super stars like Starbucks can have it’s well planned marketing campaigns hijacked as a case from 2009 shows.

Anti-Starbucks filmmakers hijack campaign

In may 2009 Starbucks launched its biggest advertizing campaign in the company’s history. Posters was put up  in six major cities in the US. To further spread its message and engage consumers Starbucks challenging people to hunt for the posters and be the first to post a photo of one using Twitter. Read more about how the intensions behind the campaign in New York Times.

Unfortunately for Starbucks Robert Greenwald, a filmmaker, came across the above mentioned NYT article. Greenwald had been working on an anti-Starbucks documentary for some time. The documentary features interviews with several former and current Starbucks employees and makes the argument that the company has unfair labor practices and has aggressively fought off unions.

Source: BraveNewFilms

In a blog post published at the anti-Starbucks website, people were encouraged to take pictures of themselves in front of Starbucks stores holding critical signs targeted at the company’s “anti-labor practices.” Users where told to upload these photos onto Twitpic and tweet them using the hashtags #top3percent and #starbucks. This way the Starbucks was effectively Hijacked with the effect that more than 90.000 people as of today has seen the anti-starbucks film. Read more about the anti-campaign in this blog post by Simon Owens

Paid, Earned, Owned, Sold and Hijacked media

In an attempt to embed these new realities of marketing, social media and consumer dialogue McKinseyQuarterly has made an attempt to further developed the ‘Paid, Owned, Earned’ model to incorporate Sold and Hijacked media.

Source: McKinseyQuarterly

High-profile examples of Hijacked media involve companies like Nestlé (whose Facebook page was hijacked) to Domino’s Pizza (a prank online video of two employees contaminating sandwiches appeared on YouTube) and as mentioned here Starbucks who among other thing have to live with the anti-Starbucks site: Stop Starbucks

Open Leadership and dialogue

Companies as well as CEO’s have to get used to – and learn to live with – that employees and customers have opinions about their products and leadership. There is nothing new about this! The new thing is that these opinions increasingly are publicly available via Google and Social Media like Facebook, Twitter and Forums.

In many cases both leaders and companies can learn a lot from listening and engaging in dialogue – also with critical consumers. In many cases critique of a product or a decisions is a result of consumer or employee passion. On the one hand companies can learn a lot of tapping into this passion. One the other hand it is important to understand that you as a leader or organizations at times will make unpopular decisions. Use social media to listen, make your argument and get inspired – but be prepared that you will also have to live with critique – even in public.

It’s important to be open! Everyone agrees – and add openness to the corporate values. Companies, public institutions and governments around the world have during the last decade launched several initiatives to open up – or at least be perceived as open among consumers, voters and citizens.

Social Media: Open Dialogue or one-way promotions channel?

A survey by Harvard Business Review Analytical Services:  The New Conversation: Taking Social Media from Talk to Action documents that too many companies still see social media primarily as a one-way promotional channel.

• Three-quarters (75%) of the companies in the survey do not know where their most valuable customers are talking about them.
• Less than one-quarter (23%) are using social media analytic tools.
• A fraction (7%) of participating companies are able to integrate social media
  into their marketing activities.

Source: HBR & SAS 2010

How come so many initiatives that could be valuable dialogues end up as monologues or fake involvement? Could it be that to many of them are initiated and planned out of the Marketing or Corporate Branding Department – with the only intend to increase the yearly Brand Asset score on corporate openness?

Source: HBR & SAS 2010

Open Dialogue: Listen, connect and engage

Open Dialogue – isn’t that a pleonasm? Yes it is. A dialogue must be two way to be a dialogue – otherwise its’ a monologue. And too many openness initiatives are one-way marketing monologues signaling openness – without a real organizational intend of opening up. What does it take to engage in a valuable open dialogue?

Source: http://www.flickr.com/photos/amphalon/2244136934/

Social Media introduces new platforms for listening to conversations, connecting with consumers and engaging in dialogue, open innovation and co-creation with lead customers. For inspiration on how to listen to conversations about your brand read the Mashable article: Social Media Monitoring, by Maria Ogneva.

Social Business: Intend & Authenticity is King!

Technology and usability is no longer the limiting factor in engaging with customers, employees and voters – intend and authenticity is.

Before engaging in dialogue with companies, organizations or political parties the customers, employees and voters ask themselves questions like: Is it important? Are you for real? Are you truly interested in my opinion? Are you going to act on my input? Will things change? These are just some of the critical questions running through the head of customers, employees and voters before engaging in dialogue with companies, organizations or political parties.

The Leadership and organizational challenge

Customers, members and voters are smart. If they sense that an initiative is a left hand marketing stunt – they will take the conversation elsewhere. And conversation about your leadership style, organization and products will take place whether you like it or not! Social Media is a strong tool for consumers to connect, form groups and raise their voice against your company – as the HBR article: What’s you personal Social media Strategy? by Soumitra Dutta shows.

New forms of consumer dialogue challenge both our leadership style and our traditional organizational separation in divisions like: Customer Service, Product Development, Marketing ands Sales.

LeaderLab continues to set focus on Open Leadership and Social Business in 2011. Some of the questions we seek to answer during the comming network meetings is:

• How can we form progressive social media policies as a publicly traded companies?
• How can we effectively listen to dialogues about our organizations and products on social media?
• How can we engage with customers, suppliers, employees and citizens in new ways in order to increase loyalty and legitimacy?
• What does a customer centric organization look like in the age of social media?

Inspiration:

Harvard Business Review Survey 2010:

The New Conversation: Taking Social Media from Talk to Action

HBR article 2010:
What’s you personal Social media Strategy?

Mashable 2010:
Social Media Monitoring