Employees & Owners Needs/Wants

Basic Business Cents

Understanding Employees and Owners Needs & Wants

Every organization has three constituents that which they must satisfy and delight-customers, employees, and owners. In the last article, we discussed in length the questions to address to determine the needs and wants of customers. Important as that is, we cannot overlook the other constituents of our organization. Building on the discussion of needs versus wants in the customers’ needs/wants article, let’s see how it applies to employees and owners.

We want employees to not only be satisfied with what is provided for them today, but to make them enthusiastic about the future of the organization and their role in it. Managers must obtain information about employees’ feelings to understand what is important to the employees. What do they enjoy in their work? Do they feel they are doing something worthwhile? Do they feel the job offers them opportunities for growth? Once these and other questions are answered, managers will have a prediction of what provides intrinsic motivation, which Dr. Deming notes is the strongest motivation of all.

Some questions to be addressed regarding employees are:

1. What are the articulated needs of our employees?

2. What are the unarticulated needs of our employees?

3. How would our employees rate their pride of accomplishment?

4. How does our employee turnover rate compare with our competitors?

5. Do our employees operate with a spirit of teamwork?

6. Do we have mutual trust and respect between our employees?

a. Between employees and management?

b. Between employees and customers?

c. Between employees and suppliers?

The third major driver of the organization is the needs and wants of the owners. They deserve the same consideration given to customers and employees.

Some questions to be considered regarding the owners are:

1. What are the articulated needs of our owners?

2. What are their unarticulated needs?

3. What is their level of satisfaction with their investment in the organization?

4. How comfortable are they with the direction of the organization?

5. How deep is the mutual trust and respect between the owners and management?

By truly understanding the real needs and wants of the three constituents of our organization, we have the basis of development of plans for the future. They are three of the twenty-one areas to research in order to develop a winning strategic plan. Details on the other categories will be discussed in future articles.

Customer Needs/Wants

Basic Business Cents

Understanding Customers’ Needs & Wants

Some years ago a major oil company was conducting research on a new design for milk bottles. Sound strange? They did not make milk bottles but they had customers who did. They supplied synthetic resin used in making plastic milk bottles and by helping their customers succeed, they ended up selling more plastic resin. Their customers did not ask them to do this and may not even have been aware that they needed a new design. Customer wants and needs may not be the same thing. It is important to know what questions to ask to find out true needs of customers and those we hope to become customers.

The objective of this article is to identify, analyze, and better understand through research the needs and wants of present and potential customers. The research should be based on customer surveys/interviews, customer evaluations of products and services, customer service reports, sales and marketing data, general review of the literature, etc. Dr. Deming often said the customers’ expectations are shaped by what we, and our competitors, lead them to believe they can get. If we are not out in front giving them more than they asked for, our competitors might do so and raise their expectations. We should always be working to delight our customers and creating a situation where they enthusiastically boast about the benefits of doing business with us.

Among the questions to be addressed are:

1. Who are our present customers?

2. What is their profile?

a. How are they similar and how are they dissimilar?

b. How do we segment them?

3. What new customers would we like to have?

4. How is their profile different from our existing customers?

5. What customers have we lost and why?

6. How is their profile different from our satisfied customers?

7. How satisfied are our present customers?

8. What are our customers saying about our service that we are not listening to?

9. What are the quality requirements of our major products/services which are demanded by our major users/customers?

10. Which customers are more preferable and why?

11. How will customers make purchasing decisions?

12. What are the customers articulated needs?

13. What are the needs of the customer that he/she has not or cannot articulate?

14. What are the articulated needs of the organizations that are not now customers but whom we would like to be customers?

15. What are their articulated needs?

16. What criteria influence each customer’s needs?

17. How important is each?

18. What in the future may affect these needs and criteria?

19. What is value-added for the customers?

20. How can customers’ expectations be exceeded?

21. What are the “must be” quality dimensions? These are the features that will cause dissatisfaction if missing but will only bring satisfaction to the customer if provided. An example might be good brakes on an auto.

22. What are the “linear” quality factors? These are the features that if missing will cause dissatisfaction, the presence of a certain amount will satisfy the customer, and the presence of an additional amount will surprise and delight the customer to bring them to a level where they will brag about the product/service to their friends. An example might be gas mileage experienced on that new auto.

23. What are the “attractive” quality parameters? These are the features that are not expected so the absence of them will not dissatisfy the customers because they are not expecting them in the first place, but the presence will surprise them and delight them. An example might be an invisible infrared light source on the front of the auto that detects deer or pedestrians on a night-vision panel on the dashboard.

24. How do you measure effectiveness?

25. How do you influence customer loyalty?

The customers’ needs and wants should be based on data, plus a prediction of the future. Then we can provide that “extra something” to create enthusiasm in the relationship and enhance our chances for long-term success.

Study the Competition

Basic Business Cents

Learning from the Competition

Sam Walton was fond of saying that he had been in more Kmart stores than any Kmart executive. He started a Wal-Mart culture of visiting with customers, employees, and competitors in the field to constantly come up with new ideas for continuous improvement.

Visiting aimlessly profits nothing. Just like the saying, “The best extemporaneous speech is well rehearsed”, the best visits are well planned. Some questions about your competition to be answered are:

1. Who are your competitors today and what are their strengths and weaknesses?

2. What rival product/service is most competitive with your product/service?

3. What studies do you have comparing your major product/service with your rival’s product/service in respect to the quality requirements demanded by your major users/customers?

4. What differentiates your products/services from your competition?

5. What are the major strategies and thrusts of the competition?

6. In what new directions are competitors moving?

7. Where are you vulnerable to competitors?

8. Where could unknown competition appear?

9. What are competitive trends?

10. What minor competitors could become major?

11. In what areas that customers care about are you stronger than your competitors?

12. Answer why to each of the above questions.

Be sure to supply data wherever possible and not just opinions. To get this data you need to venture out of your environment and into that of your competition.

Dr. Deming used to say, “Nothing is so pervasive as a lack of a good competitor.” Complacency from a lack of a good competitor can cause us to relax and fade away. Studying good competitors can motivate us to excel and prosper.

Don’t Overlook the Value of Press Releases as a Marketing Tool

Paid advertising is a valuable marketing tool but there are other ways to get exposure for your business or non-profit organization. Press releases are one way that is easy and free. Remember paid advertising is for selling your product or service and press releases are for announcing something of news value such as new hiring, promotions, new line of products/service, remodeling, etc. Chances of getting it picked up by the media depend on many things like absence or flooding of other news at that time but chances of success can be dependent on presentation. There are a number of acceptable ways to lay out in Associated Press style. Here's the advice I received from a prominent Public Relations firm in the Twin Cities gave to me (but everyone in the Public Relations industry has his/her favorite approach!):

You can use plain white paper if you want, but typically you should use your letterhead. In the upper left-hand corner, put in boldface & all caps "FOR IMMEDIATE RELEASE" and immediately below that type in the date you want it to be released.

In the upper right hand corner, put "CONTACT:" and then list the contact person's name, company, and phone number (optional: you can also give the email address)

Next, centered on the page in bold, clear easy-to-read type, put your headline. When you are trying to figure out what your headline should say, remember it should grab a reader's attention & make them choose to take the time to read this release above all the other 100s of releases they receive each day. Tips: 1) Imagine what headline a newspaper would create if they ran an article on your story. 2) Get the name of your organization or business in the headline. 3) The headline shouldn't be more than 10-15 words long. 4) If your headline doesn't grab their attention, the release may go in the garbage without being read.

Then, begin the first paragraph of your release with the city your organization is based in (in other words, where the release is originating) in capital letters. Generally the city name is following by the state's abbreviation (not the postal two-letter abbreviations, but the longer ones we used to use, such as Minn. or Wisc.). However, a few cities shouldn't get a state, so if you're using Minneapolis, don't put Minn. after it. After the city & state, put a long dash, then your release date (again!), then another long dash, then begin your text. It should look something like this: Park Rapids-January 21, 2000-text..

At the end of your press release, put 3 pound signs (###), centered on the line, to indicate to the reader that that is indeed the end (so they know they haven't lost a page!).

The lines of your text should be at least 1-1/2 spaced, or if possible double-spaced (easier for media to read quickly & take notes).

If your press release is longer than one page, then at the bottom of each page except the last, put "(more)", centered on the line, so the reader knows to look for more pages.

The flow of the text is important. The first sentence should say what your press release is about. Usually, you say "today xxx announced that yyy". That makes it pretty crystal clear.

The first paragraph should in a nutshell summarize your entire story in about 2-4 sentences maximum. For several reasons: If someone is short on time to read, they'll generally read just this paragraph to see if they're interested--it must say the main points. Plus, if someone has space in their publication for just one paragraph & they don't have time to do any editing, sometimes they will simply copy this paragraph. Either way, you must write it in such a way that if someone reads only the first paragraph, you're confident they got the main nugget of what you want them to know.

Subsequent paragraphs are where you get into the details. Put your paragraphs in descending order of importance (or interest). This is standard journalism style: a) If someone doesn't have time to read all the way to the end, you know that whatever they didn't read isn't as critical as what they DID get to read. b) By putting the most interesting info first, you make them want to read the next paragraph, and then the next, etc.

The length of your release should be 1-2 pages long, not longer. Shorter is better, because people just don't have time to read & they'll throw it out.

The last paragraph is called the "boilerplate" containing 2-3 sentences that explain what the company or organization does, perhaps gives a mission sentence, gives a phone number people can call if they're interested in more info (this would be a number that could be printed in a newspaper), and gives the web site address. This paragraph might be printed, so it should not contain information that is for the media's eyes-only; this is not where you put your media contact person's name & phone number.

Following this guideline will enhance the chances of getting your message out to the most people. Like most people, those in the media have too much to do and too little time to do it, so make it easy for them to use your press release as written.

Develop a Winning Strategy

In the previous discussion of the roadmap for strategy, mention was made of the three to twelve strategic actions necessary to reach the organization’s Vision. Determining those strategies is an enigma to many but need not be that hard.

After many years of having the responsibility of developing the corporate strategic plan and hiring the best-known consultants in the country to guide us, it was obvious there had to be a better way. We usually ended up with a thick binder that looked impressive sitting on the shelf but no one ever opened it until the following year to see what we had said last year. Sometimes management even locked up the few copies so employees would not leave and leak strategy to competitors. In either case not much was provided to employees to give guidance in making decisions during the year. Strategy Management© is a better system for developing strategy and achieving results.

The light bulb went on while accompanying Dr. Deming on consulting visits. He did not pontificate to clients but asked penetrating questions and then kept quiet while they struggled for answers. In this way, he learned of problems and opportunities. The collection of these questions along with those of other respected leaders and my own experience is the basis of discussion topics to trigger ideas leading to development of the winning strategy.

Prior to the planning event, assignments of topics and the associated questions are handed out to individuals of the planning team for research. These topics are:

· Organization viewed as a system

· Vision

· Principles of Management (Values)

· Ideal Conditions

· Mission

· Customers’ Needs and Wants

· Employees’ Needs and Wants

· Owners’ Needs and Wants

· Competition

· Marketplace

· Technology

· Internal Conditions

· External Conditions

· Strengths

· Weaknesses

· Opportunities

· Threats

· Financial

· Operating Requirements

· Products/Service

· Structure

For large organizations, these topics are researched, including answers to the questions provided, are presented at a formal planning event. For small organizations, one or more individuals simply review the questions. In either case, all involved have a pad of 3X3 inch “sticky note” paper and a Sharpie pen to write down in a few words all opportunities or problems that need to be addressed which come to mind during the review. After completion of the review, all the notes are collected and processed and prioritized to determine the few critical actions needed to achieve the visions. Everyone involved has an equal opportunity to contribute ideas and given equal weight in the analysis, thereby creating ownership in the results.

The one-page roadmap of the strategic is developed and presented to all employees and other stakeholders.

Leaders for achieving each of the strategic actions are named and progress is reviewed at scheduled monthly meetings.

This is not an idle bookshelf showpiece but an active, living system that gets results.

Provide a map of the organization's strategy for all employees

Painting a Map of Your Organization’s Strategy

Dr. Sheila Sheinberg of the Center for Life Cycle Sciences told a story about her five-year old son who received a jigsaw puzzle for Christmas. Jonathon sought help from Mom and Dad in putting the puzzle together but they could find no box and no picture of what the puzzle was supposed to look like. Faced with the child’s pleading, they took three days trying to figure out the puzzle without success. When Dr. Sheinberg put out the trash, she noticed the word “puzzle” written on something. Jonathon had taken the puzzle out of its box without fully unwrapping it, and consequently, had not been able to tell his parents where the picture was. Without the picture, the puzzle remained just that, a puzzle. With the picture, they put the puzzle together in three hours.

It helps communication of the organization’s strategy if a picture can be painted of the strategy on one page of heavy stock suitable for framing and distributed to each employee so they can understand it and help to achieve it. The Japanese have a saying, “It takes more than one of the senses to communicate” so it should be explained orally as well as handed out.

The picture is a portrayal of a roadmap with the current state of the organization beginning in the lower left corner and leading to the desired state, Vision, in the upper right corner. The Vision is a one-sentence statement of what the organization wants to achieve at the end of the time period selected for the strategy. It should be memorable, inspirational, and compelling. Since people cannot be pushed by a Vision but can be pulled by it, a short list of what their life will be like when the Vision is reached, sometimes called Ideal Conditions, can be placed in the lower right of the picture. A Mission statement or purpose of the organization is located in the upper left corner followed by a Values statement or code of ethics to provide behavior guidelines.

Lastly, the three to twelve major strategies are placed as signposts on the road starting with the highest priority at the lower left and moving up the road to the Vision in the upper right in descending priority.

It is very heartening to see how many employees post this map in their work area and use it to guide their decisions during the year. Employees should be cautioned that the strategic issues provided by management probably do not include everything that needs to be done. Employees inevitably see opportunities for improvement and should feel encouraged to take action on those issues. Jungi Naguchi, past president of the Union of Japanese Scientists and Engineers, said he believed 80 percent of improvements come from individual efforts. If employees fully understand, and are aligned with, the direction of the organization they can take action in real time that will help achieve the vision. The map of the organization’s strategy will help provide that understanding and alignment.

Making Memorable Talks

Basic Business Cents

“When you give a talk, there are only three things the audience will remember-the introduction, the stories, and the conclusion.” Roxanne Emmerich, who is a very good professional speaker, told me this surprising and somewhat disillusioning news. People put their heart and soul into content and to think people only remember the stories. But people can relate to the stories and they hold their attention. It is somewhat akin to advertising, which should stress benefits and not the features of a product or service. People are interested in what the product/service does for them and not much on how it is done. In other words, speak to your audience and not to yourself.

The next bit of advice Roxanne gave me was how to prepare the talk and I have found this really works. Take a clean sheet of paper and draw three circles of about an inch and a half in diameter equally spaced on the paper. Divide your message into three main issues or categories of the talk.Then start writing the points you wish to make radiating out from the appropriate circle. I find that my mind does not function serially and my thoughts that come to mind do not lend themselves to follow an outline form but are random. With the circle concept, as thoughts come to my mind, I write them down on the circle where they fit. Don’t worry about the order of the thoughts at this point; just capture the ideas.

When you have exhausted your thoughts, start writing. You can put the categories (circles) in proper order and also points around the circumference of the circle in order. Now you can draft that memorable introduction and conclusion. I have found this really helps get started and get it done. It always helps to get another person to proof read because our minds sometimes read what they expect to read and we miss things in our own writing.

Now comes the delivery. I once attended a leadership training seminar for a major political party in Washington DC and an item on the agenda was delivering speeches. We were taught any talk worth listening to is worth learning by the speaker. The next speaker on the agenda was the Speaker of the House and he read his entire talk! I doubt that anyone remembered anything he had to say. Memorizing an entire talk is not easy so, unless we have a teleprompter, we need a prop. Go back to that sheet of paper with the circles and that one sheet is all you need. It is a sort of a mind map and you can glance at it very quickly and pick up the next point that you wish to make or elaborate on. You will be surprised at how much easier it is to find your place on the mind map than it is on an outline form. You may wish to redraw it with black ink and put the items in order around the circles to make it easier.

Additionally, make eye contact with the audience and talk, don’t preach to them. Act like you are enjoying yourself and the audience will enjoy the experience as well.

Follow-up is also important. Provide members of the audience with a way to contact you later to expand your reach. I use a bookmark as a handout with useful information and my contact information. It is more likely to be kept than a business card and less costly than a pen. Send thank you notes to everyone who helped you and they are more likely to do it again.

P.S. This three-circle method of drafting a talk also works for writing a paper and even for a newspaper column.