Posts Tagged ‘contribution’
Wednesday, December 22nd, 2010
Customer loyalty is fast becoming a key strategic initiative for most businesses because loyal customers stay with your organization, and will continue to buy your products or services. Revenue and profitability are important business indicators, but too often they reflect decisions an organization made yesterday; whereas growing a loyal customer base is a key predictor of future success. When an organization is focusing both on profitability and loyal customers, they have the best chance of creating a sustainable business.
A key factor that many organizations miss is the fact that they cannot have loyal customers if they do not have loyal employees. Employee loyalty can be defined as employees being committed to the success of the organization and believing that working for the organization is their best option. It is not about employee tenure. It is about wanting to contribute to the success of the organization.
Finding good employees can be challenging and time consuming. However, once you find the right fit and nurture the employee relationship, it can be quite costly to see that relationship go by the wayside. Depending on what research you read the cost to replace a hourly employee can be anywhere from 35% to 50% of their salary, and for a professional staff person, the replacement cost can go as high as 125%.
How can your organization foster employee loyalty?
- Share your vision and strategic plan.
Communicating what the organization stands for, where the organization is going, and how that impacts all stakeholders, particularly the employees, is key. Employees want and need to know what they are a part of and how their contribution will make a positive impact on the success of the organization. Give them a reason to be there!
- Encourage ideas and feedback.
Create an organizational culture that is open to new ideas and fresh perspectives. Your employees are on the front lines and they can tell you what is working and what might work better. In a recent client engagement where we were working with a cross functional team, a woman who had the least to do with the process made one simple suggestion that ended up saving the organization hundreds of thousands of dollars. Loyal employees make positive contributions!
- Walk your talk.
Everything you do and say needs to embody the values and culture of employee loyalty. Recognize and respect your employees. Let them know when they are exceeding goals and objectives, and praise accordingly. If there is a challenge, then give your employee the details straight up. Give employees open and honest feedback and they will reward you with loyalty.
- Measure Your Company’s Employee Loyalty.
You cannot manage or improve what you are not measuring. Your organization cannot improve its employee loyalty factor unless you know your starting point. Do you have a system in place to capture that data? If not, create one or find one. Give your employees an opportunity to tell you what is going well and what needs to be improved. Based on the data you will be able to make strategic decisions that will continue to foster employee loyalty. Your people really are your greatest asset!
Creating a loyal customer base can be the measurable difference between you and your competitors. Enhance your ability to accomplish that strategic goal by creating and maintaining loyal employees. Your employees will always be the key!
Tammy A.S. Kohl is President of Resource Associates Corporation. For over 30 years, RAC has specialized in helping businesses assess, measure and improve their employee and customer loyalty. Learn how at www.resourceassociatescorp.com or contact RAC directly at 800.799.6227.
Tags: contribution, Customer Loyalty, employee loyalty, profitability, RAC, Resource Associates Corporation, Strategic Planning Posted in Customer Loyalty | No Comments »
Wednesday, September 15th, 2010
Innovation has become a popular topic in business over the last several years. However many companies confuse improvement with innovation and they are not one in the same.
Improvement is evolutionary where innovation is revolutionary. “Innovation is about creating breakaway differentiation, it’s about creating superior economic returns and it’s about creating what author Geoffrey Moore describes, as ‘an outcome competitors are either unable or unwilling to match’.” (Peter Lefler founder of The Spruance Group)
In order for a company to achieve innovative ideas the company needs to foster a culture of personal innovation. Every employee, team member, or contributor within your organization can enable innovation. They are living every process, talking with every customer, working on every production line, so they know very clearly what works well and what does not work. And, if asked they can tell the organization how it can be done better! The question becomes what process does your management team have in place to ask your employees what they believe the organization can do better?
Innovative opportunities are constantly squelched by poor organizational goal definition, poor alignment of actions to goals, poor participation in teams, poor monitoring of results, and poor communication as well as access to information. Help your people be part of the solution and contribute to a higher level of organizational success.
In a recent project with an insurance company, a cross functional team was brought together to evaluate, rework and present a low cost, no cost solution to shorten their policy approval process which was currently 13 days. They knew the industry average was 12 days. The team worked together for five days. By Friday afternoon the team was presenting to management a no-cost, reworked process taking the existing process of 13 days down to three days. Once the team was given the objectives they went to work and as a team saved the organization 10 days and a significant amount of money. They did not just present improvement … they innovated the process.
Allowing your employees to contribute means they are participating and taking responsibility for accomplishing goals. It’s important for each team member to have a clear understanding of his/her part in helping the team accomplish its goals. Utilizing employees with different strengths creates high performing and innovative teams. The key to employee contribution and innovation is in creating a culture in which people are encouraged to challenge, question, and try new things.
Creating an innovative culture is not a switch that can be flipped overnight. There may be resistance at first because changing a culture is never easy. However, in this case the change and the results are worth it. Communicate the organization’s goal and objectives and communicate the details of those goals frequently. Put a process in place that offers a safe way for employees to share ideas for improvement and innovation and always provide feedback. Establish cross-functional teams to evaluate important business processes and listen intently to what they have to say. If management stays committed to the cultural change, you will see the insecurity and resistance dissipate fostering some of the best innovate and revolutionary ideas your company may ever have seen.
Tammy A.S. Kohl is President of Resource Associates Corporation. For over 30 years, RAC has specialized in helping businesses achieve sustainable results through management consulting, strategic planning, leadership development, executive coaching and youth leadership. For information on creating a leadership succession plan visit www.resourceassociatescorp.com or contact RAC directly at 800.799.6227.
Tags: communication, contribution, improvement, innovation, RAC, Resource Associates Corporation, revolutionary, Success Posted in Business Management, Communications | No Comments »
Friday, August 20th, 2010
If you Google the word entrepreneur, you will find a number of definitions which will include some version of the phrase “a person who organizes, operates, and assumes the risk for a business venture.” Albeit this definition is tactically accurate, I believe the true essence of an entrepreneur is much more. An entrepreneur is an individual who has a dream, a vision, a purpose, and is committed to make it happen!
It all starts with a dream and an intense desire to build something of value. Many people dream about inventing something, seeing the world change based on their efforts, or building a successful business around their craft, talent, or expertise. These dreams are vital to the strength and success of the United States. Over 90% of businesses in the United States are defined as small businesses and employ less than 99 people. Many of these small businesses started with a tiny seed planted by an emerging entrepreneur. What have you dreamt would be your gift to the world? What inspires you the most? What are you naturally (skills, abilities, and gifts) good at? Could your dream become a viable business? What action have you taken?
In addition to the dream, an entrepreneur needs to have a clear and concise vision of what the business will look like. What service or product will it provide and to what customer base? Equally as important as identifying the product or service is identifying the measurable value the product or service will bring to the customers served. Knowing that RAC strives to “be the world class leader in the learning and development field, help organizations develop a competitive edge, improve the quality of lives and create a better today and tomorrow” keeps our company focused on success and growth for the right reasons.
A successful entrepreneur must also have a purpose. Being in business for the sake of being in business, for the sake of making money, or for the sake of “getting out of corporate” is not enough. Purpose fuels the drive necessary to make success happen and to make it meaningful. What are you passionate about? What do you strongly believe in? Are your passions and beliefs being met in your current role, and are you truly satisfied? Be honest with yourself! Now is the time to really identify your purpose and assess whether or not you are settling or thriving. As British author, Rose Tremain said, “Life is not a dress rehearsal.” We only get one shot to fulfill our dreams, vision, and purpose. What is currently standing in the way of you having your own successful business? Given your talents, passions, and values how could you become a viable resource and contribute to others?
80% of people who say they want to be in their own business are daydreaming. Only 20% actually take action and do what is necessary to make it happen. Your level of success is entirely your choice. As Rick Warren, author of The Purpose Driven Life, says “It is every individual’s choice. You can choose to live at a level of survival, a level of success, or a level of significance.” Will your significance be achieved by serving others through your own business? Are you one of the 20% who will actually take action and accomplish success through entrepreneurship?
Tammy A.S. Kohl is President of Resource Associates Corporation. For over 30 years, RAC has specialized in helping businesses and individuals achieve high levels of excellence and success. Learn how at www.resourceassociatescorp.com or contact RAC directly at 800.799.6227.
Tags: contribution, entrepreneur, Google, Purpose, RAC, Resource Associates Corporation, Success, United States Posted in Entrepreneurial Leadership | No Comments »
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