Linking HR to Customers - RBL.ai

Linking HR to CustomersDave Ulrich & Wayne Brockbank

Partners, The RBL Group

[email protected] and [email protected]

3Goals for Today

• THINK: – About how to build a sustainable customer-

focused organization

• BEHAVE:– Identify things that you can do to strengthen

your customer experience

• FUN:– Enjoy the experience together

4

Understanding our customers’ needs and how we meet those needs

•Who are our best customers?

•Why do they buy from us?

•How can I understand my customers’ needs?

•How has HR help in meeting those needs (past successes)?

•How should HR help in meeting those needs (currentopportunities)?

5Purposes of day IAs a result of this session, you should be able to answer the questions:

1. Why is customer focus so important and where is myorganization in terms of customer focus?

2. Who are our targeted customers?

3. How do we find out what they want? Why do they buy from us?

4. How do we build a more customer-focused organization?A. StrategyB. TechnologyC. Management actions (HR practices)D. CultureE. Leadership

6

Mindset Internal

Network

Purposeful

Organization

Hierarchy Insular

Bureaucracy

Responsive

Bureaucracy

Internal External

Source of Effective Critera

Type

of C

ontr

ol

Framing the Agenda

7Why is customer focus so important?Value is defined by the receiver more than the giver

Service is not smiling at a customer, but getting the customer to smile at you

8How do we serve multiple customers?Value is defined by the receiver more than the giver

9Purposes of the dayAs a result of this session, you will be able to answer the questions:

1. Why is customer focus so important and where is my organization in terms of customer focus?



4. How do we build a more customer-focused organization? A. StrategyB. TechnologyC. Management actions (HR practices)D. Culture E. Leadership

10Who are our customers?

Ways to segment customers

• Insights

• Channels

• Opportunities

11Who are our customers?Insights

How do we describe our customers/clients?

• Demographics: age, gender, education, location

• Buying patterns: frequency

12Who are our customers?Channels

How do we go to market?

Your Company

RetailWe have dedicated agents or stores?

WholesaleWe use independent agents or others’ stores?

DirectWe go directly to consumers through technology

13Who are our customers?Opportunities

Who are our targeted customers/clients?

Size of customer/consumer

(how much do they buy?)

High low

Commitment of

customer to us

(how much do they

buy from us?

High 1

Key accounts

Keep them

3

Valuable accounts

Maintain them

Low

2

Targeted accounts

Assault them

4

Nice to have

accounts

Receive them

14

Indicators of Customer Literacy: To what extent do you know the following?

Who are the 5 major buyers in the markets you serve? What are your firm’s five major customers?If there are major customers who do not buy from you,

why not? What is the customer value proposition of your competitor that attracts and keeps these customers?

Why do your targeted customers buy from you? What are their buying criteria?

What do your customers like better about your competitors than you?

Who are our customers: Develop customer literacy






16

Focus groups and interviews(Answer the “Who?” question)

Open-ended Surveys(Answer the “What?” question)

QuantitativeSurveys(Answer the “How much?” question)

Top Management

Marketing Department

Sales Personnel

Customers

Why do they buy from us?Who, what, and how much?

17Oil Field Services Inc.

MarketShare

24%

19%

- $ 1 BILLION

18

Buying Criteria Top Management Customers

Price/Cost

Service

Quality

On Time-delivery

First with New Products

Total 100 100

34

19

12

48

19Results from Connecting HR to Customers

HR Interventions

• Recruitment

• Incentives

• Promotions

• Training

Market

Share24%

31%

19% + $ 2.4 Billion

20

Cost

Value

Quality

Service

Speed

Cost

Innovation

Quality

Service

Speed

What does our customer want from us?Define our customer value proposition

Any of the other value propositions divided by cost

Lowest price

Superior performance

Best client experience

Faster

Meet needs in new and unique ways

21

Lowest Price Best deal, Discounted, Simplicity, Uptime, Consistency, Steady, Meets standards, Meets specs, Can count on us, Value

Quality / Performance

Smart/Intelligent, Intuitive, On-time, Trusted/Trustworthy, Reliability, High security, Safe choice, Socially responsible, Cool, Nutritious, Integrity/ Honesty, Luxurious, Accuracy, Accountability, Healthy, Tasty, Results oriented, Savvy, Expertise, Transparency, Global reach, Environmentally responsible, Environmentally sensitive, Environmentally responsive

Service Ease of use, Ambience, Best selection, Prestige, Convenience, Accessible, Fulfilling, Safe, Engaging, Variety, Fun, Responsive, Deep understanding, Best product mix, Easiest to work with

Speed First to market, Fastest to you, Quick, Responsive, First mover

Innovation Best design, Style, Fashionable, Cutting edge, Excellence, Chic, User friendly, Sustainable, New and improved, Functional, Freshest, Novel

Best Value Lowest everyday price, More efficient, More effective, Cost in use, Value for money

What does our customer want from us?Define customer value in their terms






23How do we create a more customer-focused organization?

Types of

customer

connections

Anticipate

Partner

Serve

Transact

Strategy Technology HR

practice

Culture/

values

Leadership

Ways of connecting with customer

24How do we create a more customer-focused organization?Strategy: define the customer buying criteria

What do different groups think?

(Divide 100 points)

Inside groups Targeted

customers

gap

Why do

customers buy

from us?

Cost

Quality

Service

Speed

Innovation

Etc.

TOTAL 100 100

25

Customer Wants HR Implications

New Product Features

Speed

Low price

Convenience

Responsiveness

Image

Align HR with customer demands

26How do we create a more customer-focused organization?Strategy

How do we create a strategic story that ties to customers?

Actions/analytics: how are we doing?

Vis

ion/

goal

s: w

here

are

we

goin

g

42

1 3

27How do we create a more customer-focused organization?Strategy

A customer strategy test:

Key elements of our strategy:

To win we will..

Customer view

Effectiveness Importance

28How do we create a more customer-focused organization?Technology

How can we link technology with customers to determine what they value?

Sourcing information

4Wisdom of crowds

2wikipedia

1google

3planning

Makingdecisions

Operatingalone

Workingtogether

29How do we create a more customer-focused organization?Product

What market research can we do to determine product features customers value?

The root cause of the 75% failure rate (of new products) is the flawed way we teach marketers about what products customers want and how to segment markets. As people go into marketing organization and carry this flawed paradigm, it causes companies to fail at innovation. Only when we understand the customer’s point of view and how the customer experiences the product and market can we be more successful more of the time.

Clayton Christensen, Harvard professor and leading author on innovation

30How do we create a more customer-focused organization?HR practice: Staffing / Selection

Staffing

practice

HR actions Customer

connection

Standards Define criteria for future

employee: technical and

cultural

Sourcing Increase the pool

(job fairs, university, other

firms, referral hiring,

technology hiring)

Screening Interview candidates

Securing Close the deal with offers

Orienting Assimilate new candidate

31How do we create a more customer-focused organization?HR practice: Training and Development

Training &

development

HR practice Customer

Involvement

What topics What are key topics to teach?

Who attends Who comes to program (individual,

team, outsider)

Who designs Who designs program (HR, externals)

How is it delivered What are delivery mechanisms (face

to face, technology, site visits)

Who presents Who are faculty

How is it

measured?

What are results of the development?

What are

alternative

developments

How do we do coaching, mentoring,

assignments?

32

How do we create a more customer focused organization?HR practiceHow do we create a more customer-focused organization?

HR practice: Compensation

Rewards HR practice Customer involvement

Set standards Be clear about what is expected

Review

performance

Do performance appraisal …

•Content: what is appraised

•Process: how it is appraised

Allocate financial

rewards

•Base salary

•Short term bonus

•Long term equity

•Benefits

Allocate non

financial rewards

•Opportunity

•Recognition

•Work itself

Offer feedback

and feed forward

•What worked

•What did not

•How do we learnbv

33


HR practice: Communication

Communication HR practice Customer

involvement

What is the

message?

•Be clear about the message

•Keep it simple and focused

•Demonstrate the value of the

message

When is it

communicated?

•Have communication timelines

Who does the

communicating?

Determine who shares information:

manager, customer, supplier?

Who receives the

information?

Involve all employees, families,

suppliers,

How do we

communicate?

Use a host of communication tools:

technology to personal

34


HR practice: Org DesignOrganization concept HR practice Customer

involvement

Define organization as

capability

•Define key capabilities for success

•Do organization audit

Define roles in the

organization

Clarify titles and responsibilities

Define routines or

processes that people will

follow

Specify standard operating

procedures and improve processes

Create work setting for

success (physical setting)

Build a workplace that reflects the

culture

Organize high performing

teams

Ensure that teams operate

effectively

Create administrative

policies

Work on administration in the

company

35How do we create a more customer-focused organization?Culture

Make Real to Customers

• Attract

• Convert

• Fulfill

• Leverage

Make Real to Employees

• Top down

• Bottom up

• Side to side

CustomerExperience

EmployeeActions

Firm Brand

Culture as firm brand:What are the top 3 things we want to be known for by our target customers?

36

Leadership Brand

Firm Brand

FIRM BRAND:What are the top 3 things we want to be known for by our target customers?

LEADERSHIP BRAND:What are the leadership behaviors that would reflect each firm brand?

How do we create a more customer-focused organization?Leadership

37How do we create a more customer-focused organization?Leadership

Firm Brand Leadership BrandThis organization is known for… Leaders at this organization are known for…

Wal-mart Always low prices Managing costs efficiently, getting things done on time

FedEx Absolutely, positively, doing whatever it takes

Managing logistics, meeting deadlines, solving problems quickly

Lexus Pursuit of perfection Managing quality processes (lean manufacturing and design, Six Sigma) for continuous improvement

Procter & Gamble

Brands you know and trust Developing consumer insights, precisely targeted marketing, product innovation

McKinsey CEO’s trusted adviser Leading teams that deconstruct business problems, synthesize data, and develop solutions

Boeing People working together as a global enterprise for aerospace leadership

Solving global problems, working as teams, possessing technical excellence in aerospace

Apple Innovation and design Creating new products and services that break the industry norms

PepsiCo Appealing to the younger generation Building the next generation of talent

38

Leadership Brand

Firm Brand

FIRM BRAND:What are the top 3 things we want to be known for by our target customers?

LEADERSHIP BRAND:What are the leadership behaviors that would reflect each firm brand?

••••

••••

••••


39

Behaviors of individuals in each career stage(list 2 or 3 desired behaviors of individuals in ea ch career

stage by the identity factor)

Identity Factor A professional in your firm

A supervisor/manager

Senior executiv e

1.

2.

3.

Examine firm brand and leadership behaviors by different career stages in your organization


40Purposes of day IAs a result of this session, you should be able to answer the questions:

1. Why is customer focus so important and where is myorganization in terms of customer focus?



4. How do we build a more customer-focused organization?A. StrategyB. TechnologyC. Management actions (HR practices)D. CultureE. Leadership

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Linking HR to Customers - RBL.ai