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Archive for the 'Management' Category

The Power of the Kind Word

Friday, April 9th, 2010

Among the millions of theories on management, there are a scarce few that are universally accepted. There are two I hear repeatedly.

The first is that people join companies, but quit managers. Your company might have great products, compensation and work environment, but a toxic manager will undo all that good and damage the company. The second theory is that it is always best to hire people with good attitudes because you can teach skills, but not attitude.

There should be a third one: that how you treat people will always be reflected in their performance. Treat them well and good things happen. Treat them poorly and look out.

It’s hard to imagine a movie that could better offer a lesson on that theory than the critically acclaimed and Oscar nominated “Precious: Based on the Novel Push by Sapphire.” This riveting picture reminds us once again that people rise or fall to the level of the expectations they are given and the way they are treated.

“Precious” is quite simply an uplifting, yet brutal movie to watch. Its main character, Precious, is an obese, functionally illiterate inner city teenager who is pregnant for the second time. And it gets worse. Both pregnancies are the result of being raped by her father and her mother is complicit in her mistreatment, abusing her emotionally, physically and sexually. (Mo’Nique’s performance of the mother is riveting and completely justifies her Oscar for best supporting actress in this film.)

Every scene between the mother and daughter paints a horrific picture of home life and there is absolutely no reason to believe that Precious’s life will amount to anything. In fact, it’s hard to believe her life will last far beyond her teens.

But three people see something more in Precious. First, her math teacher understands that the obese, overage girl in his middle school class is not an imbecile. Precious barely reads, but she understands math and the teacher passes his findings on to the school administrator. That administrator also gets involved and recommends that Precious switch to an alternative school that might better support her needs.

The teacher in the alternative school provides Precious the encouragement that has been absent her entire life. Calling the girl by her given name, Claireece, the teacher provides her a new start with new skills and new challenges. And with that background, Precious thrives, growing academically and emotionally. Incredibly, this brutally raw movie that will make you turn away in pain at times, manages to end in hope and optimism.

And there is our management lesson. Many of us have had associates or co-workers who simply seem disinterested in the job. Many of us have been through the painful process of poor performance reviews or even dismissals. And many times those actions have been entirely justified. Sadly, life isn’t a Hollywood picture where kind words and deeds always turn someone’s life around.

Yet, “Precious” reminds us that our words and attitudes matter. If we treat an associate as an incompetent, the likely result is poor work. Sadly, we will get what we expect. In contrast, if we treat people with respect and understanding and if we remember that words of encouragement must always outnumber criticisms, we might see the kind of response we seek.

A number of years ago, a good friend of mine was hired as the chief technology officer for a Fortune 50 company. On taking the job he was told that his staff was underperforming and that change (possibly firing the entire group) was necessary. Before taking action he decided to meet with the staff to get a sense of the situation.

What he learned was that many of the people on his team had seen their jobs expand as technology became more important at the company. As that happened a number of them found themselves working outside their areas of competence and experience. Plus, they knew they were failing. By taking an open attitude with them, my friend was able to undo much of the damage. The staff was realigned and within six months the underperforming department seemed virtually reborn even though he did not replace a single person.

It’s a story to keep in mind. One more regular piece of management advice is that attitude will determine altitude. That is, people won’t fly if their spirits are crushed. “Precious” gives us a brutal, yet compelling example of how this works and the lesson is painfully important.

When it comes to people: what you reap is certainly what you sow. “Precious” reminds us to daily think about how our words do that sowing and reaping.

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Michael Sansolo is the co-author, with “Content Guy” Kevin Coupe, of the new book, “The Big Picture: Essential Business Lessons From The Movies,” available by clicking here .

Michael Sansolo can be reached via email at msansolo@morningnewsbeat.com .

Excellence is Everywhere

Monday, February 15th, 2010

When I first became completely involved in loyalty marketing back in the early 1990s, I was privileged to be part of a global Best Practices Loyalty Share Group. Apart from the US, it comprised companies from Australia, Ireland, and Belgium, and added to later by companies from Spain and Sweden. Apart from the US, probably not what you’d call “the usual suspects.” What made this group unique was that they were all doing special things over and above what other loyalty companies were doing. The magic was in their management’s commitment to their customers and to their loyalty program, the vehicle they used to help measure and enhance that relationship.I learned that excellence in loyalty marketing isn’t the specialty of any one country; it’s the mark of committed companies that scatter the whole globe. You’ll find stars everywhere. I think of Japan, for example. Most retailers there have a point-based program—but only a few loyalty programs truly stand out. One, for example, is A-Coop, a single-store operator that replaced their traditional 3-times-a-week grocery ad with quintuple bonus points on three days a month (5th, 15th, and 25th). This key differentiating action, along with many supporting actions, has propelled A-Coop to high, customer-centric prosperity over the past decade. Incidentally, it also demonstrates that a single store can have its own loyalty program and shine.

Recently, I visited India for the first time in many years and was delighted to find that my belief held true. I discovered yet another loyalty star. Shopper’s Stop is a world class department store chain with a highly-energized top management team who benchmark themselves against the best retailers on every continent. When we arrived at their headquarters we had to wait—all associates were standing singing their corporate anthem (a daily event). Talk about achieving goal congruence in a business! The business card of Govind Shrikhande, their energetic, articulate, and charismatic top officer reads: Customer Care Associate & Chief Executive Officer. That sequence surely sets priorities! Customers do come first, without question, at Shopper’s Stop. No surprise, then, that they have, in my opinion, one of the world’s best department store loyalty programs.

Following the concept that you water what you want to grow, their First Citizen loyalty program, offers a tiered reward program: the more you spend (over time), the easier it is to earn additional points. Entry-level customers (first 10,000 rupees, ie, $250) earn one point for every Rs.100 ($2.50) spent; Silver Edge customers (spend $250-$1,000) earn one point for every Rs.50 ($1.25) spent; and Golden Glow Customers (spending over $1,000), earn one point for every Rs.34 ($0.80) spent.

All First Citizen members receive regular updates on merchandise offers, special previews, etc; they have exclusive checkout counters (Gold have their own special one); and free parking (Gold have free reserved parking). In addition, Silver and Gold receive additional Reward Points on preferred store brands, along with other benefits.

But, to ensure that their customers appreciate the benefits of their First Citizen program, there is an entry fee of approx. $5; and a fee of $2.50 to replace a lost card. Not only that, customers have to maintain the threshold spending levels of their Silver or Gold cards to keep them active from year to year. Points have a defined value and can be redeemed by members against any transaction, thereby creating an internal currency. [Keep it all in the family!] First Citizen is a simple, clearly communicated and executed program that recognizes and rewards their regular customers. (If you wish to learn more, visit their website at www.shoppersstop.com).

The bottom line? Excellence is not a country “thing.” It’s a company “thing.” If your company’s loyalty program is not currently rated as excellent, wouldn’t it be wise to avoid blaming the environment and start looking a little closer to home for the steps to make it so? For excellence is everywhere (as I was reminded on my recent trip to India)—and I hope it does—or will—describe your company’s loyalty program, too.

Copyright © Brian Woolf

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Brian Woolf is a global leader in loyalty marketing. In addition to writing three definitive works on the subject, “Measured Marketing: A Tool to Shape Food Store Strategy,” “Customer Specific Marketing,” and “Loyalty Marketing: The Second Act,” he spends his time helping retailers develop and strengthen their loyalty programs. For more information about Brian and his books, visit www.brigantinemedia.com.