Chapter 5 Know each company and what they did for employees and customers Boost your employee OQ Employee OQ important for customer OQ because it leads employees to make it a better place to work and a better business Front line employees are the most important to have a high OQ Bright Ideas program at Baptist Health Care Employees suggest ideas to improve the company Save 20million over five years Shirts buttons saying I own Baptist Employees given incentives and rewards Fairmont Hotels Resorts Fairmont Dog Offers hotel pets for guests to relax and de stress Couple named puppy Fairmont which allows free advertising Wegmans Food Markets Happy People Period Happy employees result in happy customers DVD of orientation given to employee to show family Job Value Fair boss and fair raises hiring process Opportunity to learn and develop personally sending employees abroad Wegmans SAS offers mini education courses for employees Reasonable compensation Working with winners surround yourself with balcony people who reach down for you and help bring you up Value for employees Capability to deliver value for customers quality of work life 1 Total Income Access Cost Creating cycle of capability Employees win by delivering value for customers Producing loyalty leads to Higher productivity Lower costs referrals by employees customers Higher satisfaction commitment and ownership Start with selection process 1 Hire for attitude 2 Train for skills 3 Broad personal development Hire for Attitude Find potential owners Candidate screening with research based tools Panel or group interviewing Realistic job previews Employee self selection Most critical steps for creating a cycle of capability successful companies follow all steps in order reinforcing the sense of ownership Harrah s candidates shadow high OQ employees for an hour to see interaction up side and down side of the job Orient for Values First impressions count Baptist Health Care orientation Baptist Traditions Tell values and mission of the company Training for Skills Training is an investment Wegmans Learning University personalized programs Rackspace Hosting Program certifications and personal development Fostering Long term employee development Challenging job assignments Career development is about moving across the organizations Select and train customers to enhance employee OQ Select the right customers who share the same core values More likely to appreciate customers products and services Support systems and proper technology are required Paying attention to employee s needs ex workspace design SAS child care Design support systems for winners Implementing technology the double edge swords Must be benefit to both employees and customers Technology for automated tasks used to expand and help jobs not take over Offer latitude within limits Understand the scope of authority Aces in your places from Taco Bell and Harrah s Hiring for attitude Managers should spend time and money now to hire the right people Harrah s realistic job preview one hour shadowing program for potential employees Wegman s will orient new employees at HQ BHC two day culture experience to show how it s different SAS long term development on site classes for employees Wegman s personal development Aches in your places latitude within limits Encouraging internal referrals final link in cycle Employees refer people like themselves Chapter 6 Engineering Ownership Through Anticipatory Management Try to anticipate the customers and employees wants and needs Bratton NYPD Predict and respond to needs and they arise Creates an active enterprise such as Harrah s selling event tickets or predicting guests needs Coordinates capacity and demand using cross functional teams management working together Marketing Operations HR IT Harrah s Entertainment Total Rewards Program Seven star diamond platinum and gold Anticipate guest desires due to past experiences Develop a community of owners around shared interests Internet has spawned communities of people with shared interests Commercial organizations use the power of networking and customer affinity programs Harrah s harvest the reward data such as gender age and preferences demographic information as well as games played and money spent on each visit and game Most valuable customers are middle aged local people with discretionary time and income who play slots Initial problems with the rewards program Could not differentiate from competitors Different rewards at different properties No consolidation incentives Total rewards program Start internally in order to attract the right customers with the right employees Profit and revenue growth and market share are key components Maxine Clark built Build a bear workshop from scratch Participative experience for both children and their parents Naming station to name bear Built a community to keep receiving information to market directly to customers Loyalty program and interactive virtual world 1 Communicate strategy 2 Position employees to win 3 Creative anticipatory management systems that link and drive value a Marketing Ops HR IT 3 Practices to exceed customer expectations 1 Communicate strategy 2 Position employees to win a Latitude within limits b Up to date technologies 3 Anticipatory management a Combine technology with marketing HR operations and IT a System that links and drives value for employees customers and investors Harrah s David Norton New approach to segmentation data mining and direct marketing Putting to use information requires training Devise new way of obtaining life time value of customers o Based on how much they spent at Harrah s not actual income amount Coordinating operations marketing human resources and IT to act on predictive intelligence Leaders in engineering ownership use intelligence from cross functional database and design operations to exceed customer expectations Delivering customized on the spot value at Harrah s John Bruns built operating system to delight customers and lead satisfaction assurance Expedite but not exclude at Harrah s Seven star and diamond customers only Targeted players satisfaction survey TPSS Bonus linked to performance Before measures were based on a random sample not on the customers who mattered more higher lifetime value Key customers resulted in positive survey responses and most valuable employee focus CSA operating strategy Based on drivers of customer satisfaction which included o Friendly helpful service o Wait time