Everwise: Building a Learning Culture

Do you have a learning culture in your business? The Lumber Buildings Material Foundation (LBMDF) can help with building a learning culture your business. Below is a blog from Everwise by Melissa Fleming: (Reading time is 6 minutes.)

Building a Learning Culture

Last month, Everwise hosted a webinar on “Building a Learning Culture” with Jeff Diana, the former Chief People Officer of Atlassian & Success Factors. A seasoned executive with 20 years of HR experience, Diana serves as a strategic HR consultant and sits on the boards of progressive HR companies including Everwise. He shared his expertise with our community on how to build a learning culture, rooted in the belief that individual growth improves organizational performance. Here are key takeaways:

Focus on career development

One of the most important factors in whether or not an employee recommends a company as a great place to work is career advancement, not compensation. This marks the continuation of a steady shift over the years. It’s true that compensation and career level are correlated, but today’s employees assign a lot of value to how a company helps them develop their careers, not just compensation at each career level. Focusing on career advancement as a company relies on creating a culture of learning, where employees feel they can grow as individuals and in their jobs.

Getting it right is critical to talent retention and attraction, which is increasingly important as many organizations struggle to attract and retain top talent fast enough to keep pace with the markets. “The number one limit on an organization’s success is people’s capability,” says Diana. “In order to get the most out of your people you have to first put in the right cultural foundation.” Diana compares laying the groundwork for a culture of learning to properly equipping your sales team with the tools to crush their numbers. Without a solid foundation that supports people achieving their potential, an organization’s progress will be limited.

Make a case for greater investment

Organizations that are committed to creating a culture of learning have a real competitive advantage. According to Diana, the four primary benefits of putting resources into building a culture of learning are: 1) increased employee engagement, 2) higher retention, 3) streamlined business processes, and 4) higher ROI/organization success. The best way to make the case for increased spending on Learning & Development (L&D) initiatives is to directly link them to specific business outcomes.

“When you look at the business objectives for a three-year period and you tie that to what capabilities the business needs to have, you can see very clear lines that say why we need higher retention,” says Diana.

What we know for certain is that an organization won’t succeed without the right talent. “Supply is lacking,” Diana says. “We have to help people learn on the job within the context of what they are experiencing today to meet the pace and dynamic nature of business.” One way to make the case for increased L&D investment is to identify capability gaps and how L&D programs can help develop the supply chain of skills needed to reach an organization’s desired business outcomes.

Measure your culture to determine development needs

“One way to grab everyone’s attention is to assess culture,” says Diana. “No leader wants to be at the helm of a culture or a team that isn’t deemed healthy and something they can be proud of leading.”

Having employees assess the health of an organization’s culture can help galvanize efforts to create more learning opportunities. Getting employee input also serves the dual purpose of creating a culture that values transparency and its employees’ opinions. Diana suggests starting with a culture quiz that contains 8 to 10 targeted questions. For example, Do you have rituals that regulate and reinforce values? If you have values around learning and growth, do you have rituals that signal that growth? Does your CEO regularly ask for ideas on strategy? Does your company internally publish mistakes and share learnings from mistakes? Is your physical space driving collaboration? Do you have the tools in place to effectively collaborate? Do you have the ability to give feedback? From those questions, strengths and gaps will emerge, making it easier to take action.

Start small and simple

Diana breaks down the process of enabling a learning culture into four steps: process, culture, L&D investment, and measurement. The best way to start is small and low cost. Find a leader who can pilot a program and generate results that could lead to an expansion. Make sure the language within the company – from performance reviews to the handbook to all-hands invitations – reflects a culture of learning. Find internal success stories of high-performing teams of active learners to help you make the case for L&D investment.

While Diana points out that there are many ways an organization can invest in L&D, the most important one is to build learning into the organization’s culture. The four levers that HR professionals can utilize to drive a sustainable culture are values, transparency, rituals and tools. Having a good set of values conveys the message that learning, self-development and risk-taking are part of the company’s mission and an employee’s daily life. A culture that values transparency and access will breed trust and loyalty. Rituals signal learning and the right tools will empower employees to be curious, collaborate and learn and grow on the job.

Putting it all together: Design learning experiences that impact positive behavior change

Learning today is much more about context than content. Simply put, people are more likely to learn if they can easily recall the information and apply it to their day-to-day jobs. So the challenge for HR professionals is to incorporate the social and experiential side of learning into their programs. You’ll see the best results with initiatives that are intimate and collaborative. “Like anything else we’ll participate more in it, we’ll recall it better if the experience itself touches us in a deeper way,” says Diana.

The best learning happens on the job, where the context is clear and the application is immediate. In order to shorten the loop of trying something, gaining insights and putting those different behaviors back in action, Diana says to think about the actual work that is being done. Having the ability to apply that knowledge to what someone does every day is the best way to turn knowledge into capability.

According to Diana, employees want learning experiences to be highly personalized, more social and collaborative, and rooted in real work. Over 70% of managers want their digital experiences to be more adaptive, 60% want the experience to be more social and collaborative and 55% want more experiential learning included.

It’s important for managers to encourage learning on the job to leverage a team’s capabilities and motivate team members. Diana suggests managers encourage learning by providing the content foundations, mentors/coaches, practice in real work situations and performance feedback from teammates. All of these are learning experiences that offer employees opportunities to practice by doing.

With the right combination of people, resources and feedback, all employees can achieve their full potential. To do this Diana advises that you find role models of high-performing teams within the organization and point to internal success stories to make the case for more L&D. Start small and low cost with a pilot program. Make it easy for people to provide feedback. And most importantly, tie the L&D experiences to business outcomes. The investment in building a learning culture is valuable to both employees and management, and will allow you to tap into the potential of your workforce and improve your organization’s performance overall.

View a recording of the webinar here.

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McKinsey: What the future science of B2B sales growth looks like

Are you engaging customers the way they want to be engaged? Are you invested in finding and developing world-class talent? “Driving market leadership in B2B sales takes undivided focus from the CEO and his/her top team, and significant investment of time and resources. However, companies that have achieved proficiency across the three dimensions of the science of B2B sales are already outpacing their competitors and driving disproportionate growth, profitability, and shareholder value.” Below is a blog post from McKinsey & Company by Tim Colter, Mingyu Guan, Mitra Mahdavian, Sohail Razzaq, and Jeremy Schneider: (Reading time is 9 minutes.)

What the future science of B2B sales growth looks like

B2B sales are on the verge of a revolution, with a number of trends completely redefining what it will take to be a market leader over the next five years.

Advanced analytics and machine learning have given sales executives access to historically unprecedented amounts of data and computing power, allowing them to predict with a high degree of precision the most valuable sales opportunities. The fastest-growing companies are using advanced analytics to radically improve their sales productivity and drive double-digit sales growth with minimal additions in their sales teams and cost base.

Also, radical changes in buyers’ preferences, with buyers being more content-driven, technically savvy, and comfortable engaging via digital channels, has led to the rise of a new breed of sales leaders who bring technical expertise and a strategic mind-set. This is also transforming what sales organizations look like, with a sharp reduction in field sales and marketing, and rapid growth in inside sales and analytics teams.

Finally, a significant shift toward subscription-based business models has redefined how customer relationships are managed. No longer is a sale a one-time “won and done” deal. In a world of recurring revenues, sales need to be won every month, quarter, and year. As a result, successful customer-relationship managers are becoming increasingly more valuable, and sophisticated sales teams are aligning themselves closely to the long-term success of their customers.

Emergence of a new science of B2B sales

As a result of these disruptive changes, B2B sales has evolved from an art to a science. By that we mean that sales is data-driven, enabled by digital tools, underpinned by advanced analytics, and focused on really understanding the “what, why, and when” of the customer. Companies that have embraced what we call the “science of B2B sales” have already started to pull ahead of their peers in terms of revenue growth (registering 2.3 times industry average revenue growth), profitability (3 to 5 percent additional return on sales) and shareholder value (8 percent higher total return to shareholders than the industry average).

A key feature distinguishing market leaders from the rest of the pack is that the CEOs of the market leaders actively lead the sales transformation, rather than leaving it to the head of sales. These CEOs realize that redefining their go-to-market engine is a cross-functional sport that requires their direct engagement and flawless execution from sales, marketing, HR, IT, and finance. Market leaders have realized that winning in B2B sales in the next five to ten years will require them to fundamentally transform their go-to-market engine around three defining principles:

  1. Engaging customers the way they want to be engaged

Days when sales executives debated between investing in a great sales force or great digital assets are a figment of the past. Driving growth in the future will require bringing the best of both worlds. Our research indicates that market leaders view digital investments as the glue that holds together a powerful multichannel sales strategy. We surveyed more than 1,000 large organizations across industries and four continents to better understand their preferences in buying goods and services from B2B sellers. Our research showed that the ideal channel to reach B2B customers depends heavily on whether they are making a first-time or repeat purchase (Exhibit 1). Some 76 percent of B2B buyers found it helpful to speak to a salesperson when researching a new product or service. That figure fell to 52 percent for repeat purchases of products with new or different specifications, and only 15 percent indicated a desire to speak with a salesperson when repurchasing exactly the same product or service.

Exhibit 1

Exhibit 1.png

Engaging customers in the future will require a multichannel sales strategy powered by smart digital investments, which caters to the different needs of first-time and repeat customers.

When targeting first-time customers who are looking for direct interaction with sales teams, the fastest-growing companies are using digital tools to help their sales teams address customer needs at each stage of their purchase journey. For instance, they are using interactive product demos powered through tablets or browsers to help salespeople engage customers in the research stage of their journey. A significant proportion are using relatively simple customer-relationship-management software to track customers’ past questions, thus allowing their salespeople to anticipate future inquiries and offer lightning-fast responses when customers compare their products with competitors’. A few cutting-edge companies have also invested in customer analytics that empower sales reps with price recommendations based on analysis of deals other sales reps have closed with the same customer in the recent past.

When catering to repeat customers who are comfortable being online, the fastest-growing companies are using digital tools and inside sales to keep them loyal, speed up the sale process, and encourage them to spend more. For instance, they are creating online comparison engines that allow customers to seamlessly compare products and services with competitors’ offerings. They then supplement that with inside sales teams to answer customer questions via email, live chat, and video conferencing. In addition, they are using next-product-to-buy algorithms that send customers relevant recommendations of complementary products based on their purchase history to grow customer share of wallet.

  1. Using advanced analytics and machine learning to make better decisions faster

In the next five years, we believe that the fastest-growing companies will be using advanced analytics and machine learning to address fundamental strategic issues, such as what sales opportunities to pursue, what resources to allocate to which accounts, and what behaviors to prioritize to drive sales productivity. Already the days when lead generation relied entirely on local field knowledge are fading fast. Market leaders of the future are using advanced analytics to build a granular account, product, and geographic profile of each of their customers. These profiles are then augmented with relevant external data such as news reports, public financial information, and social media to generate a truly 360-degree view of each customer.

Lead-scoring algorithms can then use these detailed customer profiles to predict which customers to target, when to contact them, and what factors truly drive lead conversion rates. A few of the most cutting-edge companies are also experimenting with AI-enabled agents that use predictive analytics and natural-language processing to automate early lead-generation activities such as handling basic customer questions and automating initial presales questions. While these predictive lead-scoring algorithms are still relatively nascent, some companies deploying them are already experiencing 15 to 20 percent improvement in their lead-conversion rates.

In the past, sales leaders used to rely on gut instinct to identify behaviors that drive sales productivity and make account coverage decisions. Advanced analytics is revolutionizing our understanding of how to match the right people to the right deals. The most data-savvy sales organizations are combining sales, customer, and HR data to understand the intrinsic attributes (e.g., professional background, education, personality traits, cognitive ability) and behaviors (e.g., frequency/duration of customer interaction, time devoted to sales planning, listening skills, persistence, risk taking) that are statistically correlated with distinctive sales performance. Armed with this knowledge, they can identify the best sales people and allocate them to their most strategically valuable accounts.

  1. Continually investing in finding and developing world-class talent

Buyers are becoming increasingly sophisticated and technically savvy, which has led to the rise of a new breed of sales leaders who bring a strategic mind-set and rock-solid technical skills. These leaders are “growing up” across multiple roles in their organization and come with a truly cross-functional and cross-geographic skill set. They view themselves as coaches whose primary job is to turn rookies into rainmakers.

“Getting the right individual in the right role” was a common theme that came up in our interviews with more than 400 sales executives. Despite the stated importance of hiring the right talent, not all organizations believe they are equipped with the right talent for the future (Exhibit 2). While all companies struggle with getting world-class talent, fast-growth companies fare better than slow-growth companies: 51 percent of the former believe they have the right sales talent for the future compared with only 30 percent of slow growth companies.

Exhibit 2

Exhibit 2.png

Hiring the right talent is only part of the puzzle. The fastest-growing companies also invest significant time and resources in nurturing and growing their talent. In our survey, 48 percent of fast-growth companies indicated that they invest significant time and resources in sales training versus only 22 percent of slow-growth companies (Exhibit 3). Behavioral economics and social psychology have revealed powerful insights into how to nurture high-performing individuals who thrive on independence and entrepreneurship. A defining insight has been that adult learners only remember 10 percent of what they heard and 32 percent of what they saw three months after the learning program concludes. In contrast, they remember 65 percent of what they learn by doing. This insight is driving a transformative change in the nature of sales trainings. They are evolving from classroom and digital modules to “on-the-job” experiential, immersive programs in which sales reps are paired with experienced coaches and learn from doing.

Exhibit 3

Exhibit 3.png

How to embrace the science of B2B sales

Companies who embrace the science of B2B sales generally begin with a three-part journey:

First, they make an honest assessment of the status quo. This starts with a look at the customer. Customer preferences for buying should shape the investments the sales organization makes, yet many sales leaders fly blind. In our experience, most companies tend to underinvest in the sales capabilities that actually matter most to their customers.

Second, they plan for the long term. Sales winners are moving past quarterly planning and adopting instead a long- term view. Of the fast growers we have studied, more than 50 percent take a minimum 12-month view in their sales plans, and 10 percent look more than three years out. This long-term view means that sales leaders can invest in the right capabilities based on a specific (though flexible) roadmap.

Third, they move fast and get quick wins. Speed matters now more than ever. Winning sales organizations are using test-and-learn strategies to become more nimble. Some set up a sales war-room model to launch new digital campaigns and messages. Others adopt an agile test-fail-learn-adapt operating model to rapidly ideate and refine sales tactics. Through these quick-win approaches, sales orgs are seeing dramatic results, some with up to 300 percent growth in digital sales within the first 30 days of action. In the next few years, we expect to see more of the winners enjoying these results.

Driving market leadership in B2B sales takes undivided focus from the CEO and his/her top team, and significant investment of time and resources. However, companies that have achieved proficiency across the three dimensions of the science of B2B sales are already outpacing their competitors and driving disproportionate growth, profitability, and shareholder value.

HBR: Making Time to Really Listen to Your Patients

Do you think the following concepts around patient care can be applied to the building supply industry? What is the cost of hurried encounters with your customers? Below is a blog from the Harvard Business Review by Leonard L. Berry and Rana L.A. Awdish:

Making Time to Really Listen to Your Patients

Modern medicine’s true healing potential depends on a resource that is being systematically depleted: the time and capacity to truly listen to patients, hear their stories, and learn not only what’s the matter with them but also what matters to them. Some health professionals claim that workload and other factors have compressed medical encounters to a point that genuine conversation with patients is no longer possible or practical. We disagree.

Our experiences — as a critical-care physician whose own critical illness led her to train physicians in relationship-centered communication (Rana Awdish) and as a health services researcher who has interviewed and observed hundreds of patients, doctors, and nurses (Len Berry) — teach us that hurried care incurs hidden costs and offers false economy. In other words, it might save money in the short term but wastes money over time.

Why Listening Matters

Actively listening to patients conveys respect for their self-knowledge and builds trust. It allows physicians to assume the role of the trusted intermediary who not only provides relevant medical knowledge but also translates it into options in line with patients’ own stated values and priorities. It is only through shared knowledge, transmitted in both directions, that physicians and patients can co-create an authentic, viable care plan.

A doctor’s medical toolbox and supply of best-practice guidelines, ample as they are, do not address a patient’s fears, grief over a diagnosis, practical issues of access to care, or reliability of their social support system. Overlooking these realities is perilous, both for the patient’s well-being and for efficient delivery of care. We believe not only that a clinician should share medical decision making with the patient but also that it must occur in the context of an authentic relationship.

The Costs of Hurried Encounters

Compressed medicine has real risks. Clinicians become more likely to provide ineffective or undesired treatment and miss pertinent information that would have altered the treatment plan and are often blind to patients’ lack of understanding. All of this serves to diminish the joy of serving patients, thereby contributing to high rates of physician burnout. These consequences have clear human and financial costs.

The medical literature increasingly offers potential solutions to the inefficiencies that rob patients of physicians’ time and attention, including delegating lower-expertise tasks to non-physician team members, improving the design of the electronic health system, and greatly reducing the paperwork bureaucracy that adds little or no value. We can create more space for active listening. Unhurried medical care may be elusive, but it is practical.

Reimagining Roles

Beyond time pressures, the typically unquestioned roles that physicians and patients assume also inhibit relationship-building. In their medical training, physicians often are taught to maintain a clinical distance and an even temperament. They are warned not to get too close to patients, lest they internalize the suffering and shoulder it themselves. The best physicians, we know, reject this advice because it diminishes their humanity and disadvantages their patients, who need more than a highly-qualified body technician, especially when they’re seriously ill.

Patients learn roles, too: adhere to the doctor’s plan, squelch errant thoughts that might sound foolish, don’t ask too many questions, defer to the expert, be “a good patient.” In a new article we co-authored with others, we show that many patients, especially those with serious disease, behave like hostages in the presence of physicians — unwilling to challenge authority, understating their concerns, requesting less than they desire. Most physicians certainly don’t want patients to feel like hostages, but the patients often do. When patients feel like hostages, the ideal of shared decision making is a pipe dream.

It’s no wonder, then, that for patients with serious illness, the emotion they most often cite is “overwhelmed.” The diagnosis, the options, the treatment, the myriad side effects, the change in identity when living with disease — all of it can indeed be overwhelming. In this complex, fraught situation, people need a compassionate guide — a wise, comforting sherpa who knows the mountain, the risks of various routes, the viable contingency plans. The physician-sherpa should be a partner on the journey, not simply a medical operative, extracting formulaic rules and implements from a toolbox. Patients need and deserve much more.

When doctor and patient join forces, the team dynamic dismantles the harmful hierarchy. Both members of the dyad can rely on each other because neither owns all the data that matter. Speaking at a White Coat ceremony for medical students, Dr. Rita Charon, a pioneer in the rising discipline of narrative medicine, stated:

I used to ask new patients a million questions about their health, their symptoms, their diet and exercise, their previous illnesses or surgeries. I don’t do that anymore. I find it more useful to offer my presence to patients and invite them to tell me what they think I should know about their situation.…I sit there in front of the patient, sitting on my hands so as not to write during the patient’s account, the better to grant attention to the story, probably with my mouth open in amazement at the unerring privilege of hearing another put into words — seamlessly, freely, in whatever form is chosen — what I need to know about him or her.

An Organization that Listens and Heals

Not hearing the patient’s voice harms the patient and the clinician. They don’t have the benefit of pooled knowledge, ability to make fully informed mutual decisions, or time to build trust. Health systems that want to avoid those pitfalls need leaders who invest in shaping an organizational culture that values hearing patients’ voices. Here are some steps such organizations might take:

  • Share patient stories and related lessons at every meeting. Perhaps one should be a story of success (what we did well for a patient) and another of a failure (where we must improve).
  • Offer a communications curriculum to clinical and non-clinical staff. The professional development should be engaging and dynamic so that adult learners seek it out because they view it as worthwhile.
  • Encourage and reward clinical curiosity, whereby generous questions are asked to elicit generous patient responses. Emphasize listening for not just what is said, but also how it is communicated. Consider a narrative-medicine component.
  • Convene patient advisory boards that meet regularly with practice leaders to convey concerns and make suggestions about improving patients’ experiences.
  • Use multiple methods to identify and systematically address impediments in clinicians’ daily work — the “pebbles in the shoes.” Examples include rounds, conducted by senior leaders, with both staff and patients; staff focus groups and anonymous surveys; and CEO feedback meetings with small groups who speak openly about what prevents them from delivering better care.
  • Create a balanced scorecard of physician performance that tracks not only productivity but also professional development, team building, safety and quality metrics, timeliness of care or access, communication skills, and care coordination — measures that matter to patients.

A Way Forward

Medicine is constantly evolving as new ways to treat, heal, and even cure emerge. We must continually reflect on the changes, and correct the course as needed. This work cannot happen in a vacuum of forced efficiency. Physicians, patients, and administrators all must maintain and build on what is sacred and soulful in clinical practice. We must listen generously so that we nurture authentic, bidirectional relationships that give clinicians and patients a sense of mutual purpose that no best-practice guideline or algorithm could ever hope to achieve.

Forrester: Become Customer-Obsessed Or Fail

Are you building a better customer experience with technology? Below is a blog from the Forrester by Michael Gazala:

Become Customer-Obsessed Or Fail

What’s the top imperative at your company? If it’s not a transformation to make the company more customer-focused, you’re making a mistake. Technology and economic forces have changed the world so much that an obsession with winning, serving and retaining customers is the only possible response.

We’re in an era of persistent economic imbalances defined by erratic economic growth, deflationary fears, an over-supply of labor, and surplus capital hunting returns in a sea of record-low interest rates. This abundance of capital and labor means the path from good idea to customer-ready product has never been easier, and seamless access to all of the off-the-shelf components needed for a startup fuels the rise of “weightless companies” which further intensify competition.

Chastened by a weak economy, presented with copious options, and empowered with technology, consumers have more market-muscle than ever before. The information advantage tips to consumers with ratings and review sites. They claim pricing power by showrooming. And the only location that matters is the mobile phone in their hand from which they can buy anything from anyone and have it delivered anywhere.

This customer-driven change is remaking every industry. Cable and satellite operators lost almost 400,000 video subscribers in 2013 and 2014 as customers dropped them for the likes of Netflix. Lending Club, an alternative to commercial banks, has facilitated more than $6 billion in peer-to-peer loans. Now that most B2B buyers would rather buy from a website than a salesperson, we estimate that one million B2B sales jobs will disappear in the coming years.

To thrive in the age of the customer, winning companies will embrace four mutually reinforcing market imperatives in order to become a customer-obsessed company: 1) For speed, tap into mobile connections; 2) For intelligence, set up systems to gather customer knowledge; 3) For impact, build a better customer experience; and 4) To become flexible, embrace digital transformation.

Most companies have made some progress on mobile, big data, customer experience, and digital transformation initiatives. But the most advanced companies — including McDonald’s in France, Home Depot, Salesforce and T-Mobile — truly embrace customer obsession when their strategies combine these mutually reinforcing imperatives.

Delta Air Lines recognized that improving customer experience – with a focus on eliminating cancelled flights – could make a world of difference in its business. Mobile apps for customers, flight attendants, and pilots streamline the experience for everyone. Making these applications sing required retooling back-end systems and led Delta to acquire staff and technology from travel technology firm Travelport. The result of this focus was a 13-point year-over-year jump in its Customer Experience Index score. Learn more about what Delta and other leaders are doing to thrive in the age of the customer in our new report, “Winning In The Age Of The Customer.”

Transforming a company to become truly customer obsessed is difficult. The four marketing imperatives are your path to success, and business technology (BT) powers the change. To thrive in the age of the customer, CMOs must partner with CIOs to advance the BT agenda, creating the technologies, systems and processes that increase agility, facilitate innovation and improve customer experience.

 

HBR: Shoppers Need a Reason to Go to Your Store — Other Than Buying Stuff

Does your store make small pickups a convenience? Should our building supply stores provide a compelling or memorable physical experience? How do you balance between time-well-saved and time-well-spent for your customers? Below is a blog from the Harvard Business Review by B. Joseph Pine II:

Shoppers Need a Reason to Go to Your Store — Other Than Buying Stuff

The holiday season, which is by far the most important time of year for retailers, highlights the increasingly intense battle between physical stores and online websites. Given the large number of casualties this year — witness the bankruptcy filings of such venerable institutions as Toys ‘R Us, The Limited, H.H. Gregg, Gander Mountain, Payless Shoes, and RadioShack, to name but a few — retailers must finally wake up to the core terrain over which they’re fighting: customers’ time.

Online retailers offer consumers time well saved. People can find what they want, when they want it, with incredible ease and convenience, and with the physical good shipped directly to their homes in a matter of days (and increasingly, in large cities, hours). As often as not, they don’t even have to pay shipping costs, and returns are a relative breeze. While the U.S. Census Bureau puts e-commerce’s share of the U.S. retail market at less than 10% as of the first quarter of 2017, online sales are growing at almost 10% per year. Should that trend continue — and it appears to be accelerating slightly — online retailing will account for nearly 20% of the total in 2025, over 30% in 2030, and about 50% in 2035.

To address this threat, one path physical retailers can take, of course, is to compete by going online themselves and even using their physical stores as a pickup spot — a strategy that many bricks-and-mortar retailers have taken. (One retailer I know saw a 35% bump in sales when it gave customers the option of picking up merchandise in its stores that they had bought online.)

But that alone will not save many retailers’ physical stores. They have to provide a compelling reason for consumers to visit them that online retailers can’t match. The best way is to compete on the basis of time well spent — to offer an experience so engaging that customers cannot help but spend time with you! And the more time they spend with you, the more money they will spend.

Consider what I think is the best new retail format in ages: Eataly. This Milan-based retailer (which so far has 13 stores in Italy, five in the United States, and five others in other countries) manages to combine all things Italian cooking into one amazingly engaging space: a café, one or more restaurants, a cooking school, and — especially — rows and rows of Italian groceries, kitchenware, and small appliances for sale. Consumers often spend hours there, and then memorialize their visit with photos posted to their Instagram feed or other social media outlets.

Many retailers (even banks) incorporate cafés to engage the senses and encourage consumers to linger, such as Restoration Hardware’s new 70,000-square-foot place in Chicago, which features a courtyard café, an espresso bar, and a wine room. Others, such as cosmetics retailers Lush and SABON, focus on getting consumers to experience their goods in the store, knowing that will increase the chances they will make a purchase.

Another approach is to focus on the story of each product, as happens in L’Occitane en Provence when customers encounter associates. Yet another way to offer time well spent is to stage special events, which even Walmart is doing this holiday season: It’s hosting 20,000 parties across its 4,700 stores, knowing that’s something Amazon cannot do. The Christmas season, of course, furnishes the perfect time-tested tactic that has worked for decades for department stores: Santa Villages and other Christmas extravaganzas for which people gladly pay to give their kids a festive experience.

Interestingly, many of the most engaging retail experiences have come from manufacturers. There’s American Girl Places, which immerses girls in its doll’s stories; Nespresso Boutiques, which lets people experience its espresso machines before they buy them; LEGO Stores, which feature play and building; and, of course, Apple Stores, where every product is live and workshops offer skills, “geniuses” offer support, and sessions offer inspiration. (Even Starbucks started out as a manufacturer before Howard Schultz turned it into an experience stager.) And recognizing the demand-generating power of physical engagement, numerous online retailers have opened up their own bricks-and-mortar stores; examples include Warby Parker stores, Bonobos Guideshops (bought by Walmart), and mass customizer Indochino Showrooms.

Those that are best at staging experiences have even figured out that when consumers truly value the time well spent they encounter in these places, the retailer can charge for that time via an admission or membership fee. Billed as the world’s most beautiful bookstore, Livraria Lello, in Porto Portugal, charges an admission fee of €3 just to enter the store — and then consumers get that money back if they make a purchase. Universal CityWalk in Hollywood charges from $5 to $50 (depending on location and time of day) per vehicle — not for parking per se but specifically to send the signal that it is a retail place worth experiencing.

Generally, though, retailers charge for particular experiences within their stores and do not charge for admission to their stores. American Girl charges for its café experience, a photo shoot and magazine cover, and even a doll hair salon experience (not to mention birthday parties that can run into the thousands of dollars). Recreational Equipment Inc. (REI) charges customers $20 to $40 to tackle the 60-foot climbing walls and structures it has in its flagship stores, offering instruction and also essentially getting customers to pay to try out its mountain-climbing equipment. And the Mall of America charges for the various rides in its Nickelodeon Universe theme park in the middle of the mall.

Wingtip, a men’s store in San Francisco, doesn’t charge for the retail experience — as engaging as it is, with superb merchandising of clothing, including a bespoke experience, plus wine and spirits, cigars, and a barbershop fulfilling its theme of “Solutions for the Modern Gentleman”; instead it created the Wingtip Club in the top two stories of its building for which it charges membership fees. The club is a refuge from the bustle of the city, with a lounge, bar, game room, whiskey corner, and golf simulator; members spend hours at a time there. The price of a membership is a $3,000 initiation fee and then $200 per month for unlimited access. All members (men and women) receive a 10% discount on merchandise.

There will always be physical stores for pickup convenience and the commoditized or very inexpensive merchandise like Dollar Tree stores sell. But providing a compelling or memorable physical experience is a different strategy that can work. Physical retailers must choose between time-well-saved and time-well-spent strategies. Whatever they do, they should be careful not to choose a middle-of-the-road approach that fails to excel at either.

Original Page: https://hbr.org/2017/12/shoppers-need-a-reason-to-go-to-your-store-other-than-buying-stuff

 

HBR: How to Ask Your Boss for Time to Learn New Things

Are you making time for personal development?  Have you ever used NRLA’s Learning Management System (LMS) for online technology training? Do you have your Certified Building Materials Specialist (CBMS) designation? Below is a blog from the Harvard Business Review by Rachael O’Meara:

How to Ask Your Boss for Time to Learn New Things

We all want to learn and grow. Improving our skills and being exposed to new ideas not only makes us better at our jobs but makes us happier and more engaged at work. But with a full-time job, it can be tough to find the time and resources to dedicate to personal development. Some people, like me, are lucky to work for companies that encourage and even fund classes, sabbaticals, or fellowships. But if you work for a company that doesn’t have an official policy, how can you make the case to your manager (and the necessary higher ups) to support you?

In researching my book, Pause, and learning from my own experience of figuring out how to take time off for my own growth, I’ve come up with a six-step plan for how to negotiate for personal development.

  1. Identify how you want to learn and grow. If you don’t yet have a clear picture of what you want to develop, spend time honing in on exactly what you need. Do you want to build your emotional intelligence skills to be a more attuned business leader? Are you interested in going on a yoga or meditation retreat? Set aside a specific period of time, such as one evening or even a week, to explore ideas and research what appeals to you. Write down what you want to learn and how you would grow from the experience you’ve identified. Research shows that the physical act of writing has a neurological effect on the brain which tells the cerebral cortex to “wake up and pay attention.” Writing stimulates a bunch of cells in the brain called the Reticular Activating System that plays a key role in being more conscious and alert. The more you can write down, the more aware and real your ideas become.
  1. Own it. You may be under the impression that building an underdeveloped skill means you lack a competency or have a particular weakness. This isn’t the case. Rather than being embarrassed or nervous about asking for this time, own it as part of your commitment to becoming a better leader. If you aren’t willing to consider it a growth move for you and your company, you can’t expect others to support you.
  1. Create your vision statement. Ask yourself, “Who will I become as a result of this investment of my time and resources?” Be specific and descriptive. Keep it in the first person. One sentence is ideal. Use descriptive adjectives. Will you be more engaged, influential, or mindful? Visions are a great way to orient and stay on track before, during, and after your development work. As I’ve learned from my mentors, Bob and Judith Wright, your vision should be constantly evolving as you do. The vision I created for my leadership training this year was: “I fully engage as a more authentic woman leader.” Add whatever details you feel necessary to convey your vision to those who will approve the time and resources you need.
  1. Connect your goals or outcomes to what the business needs. To get buy in from your manager, team, or company to support your development, you have to connect what you’ll gain to the business goals. Ask yourself:
  • Are there issues at work that you could better resolve as a result of this training? In what ways will your company benefit from your improved performance, skills, or knowledge?
  • What specific skills or knowledge can you share with your manager, team, and/or company from your training or experience?
  • Can you provide a recap (verbally or visually) based on what you learned or how you plan to apply this at work or in your career?

 

Time Off

  1. Prep and practice. The next step is to get ready for the conversation. Think through: What’s the worst and best case scenarios? Anticipate questions or concerns from your boss. I have yet to meet someone who was let go for asking to expand their horizons. Often times our fear holds us back from negotiating, and we miss out on the opportunity to explore alternatives, or worse, receive a yes.

Make a list of what is negotiable – things like timing, budget, and activity. Is partial or full reimbursement possible? Can you avoid using vacation days? One colleague of mine negotiated time off for a week-long leadership retreat where her manager agreed to her taking vacation for only 50% of the time she was out. The other 50% she was on the company clock.

When preparing for the conversation, think about what each person involved in making the decision has to gain. Do your homework and read up on your HR policies. Know how educational reimbursement works in your company.

  1. Make your ask. When you’re ready to sit down with your manager, don’t catch them off guard. Give them ample notice and consider adding it to the agenda for your next one-on-one meeting. But it doesn’t have to be a formal meeting. If you’re catching up on how the weekend was or plans for the evening, share the class that caught your eye and why it personally matters to you. Better yet, share how you think it could help you be a better employee. Then you can schedule more time to discuss it further.

Share your vision and goals. Be clear what exactly you’re asking for — is it for time off, compensation (expenses), or some combination of the two? What will they get in return? Refer to your notes if needed.

When the conversation is over, consider following up in writing, emphasizing how this would benefit you and your manager, team, or business.

There are three likely outcomes: getting what you’ve asked for, getting some of what you asked for, or getting a flat out “no.” By following these steps, you’ll increase the chances that you get a favorable outcome but that’s not always the case. Even if you don’t get what you asked for, start thinking about ways you can reshape your request in the future.

Spending the time to form a logical, careful request can be rewarding in itself because you’re getting clearer on what you need. And you’re contributing to, maybe even igniting, a corporate culture that supports individuals to learn and grow in ways beyond what’s traditionally done.

Over the past four years I’ve used the above process to request and win support for a coaching certification, graduate and non-accredited courses, week-long emotional intelligence leadership retreats, and a two-day class influencing. In each case, it felt like a leap of faith but I always reminded myself that the worst they can say is no.

HBR: How to Reduce the Costs of Salesperson Turnover

What is your strategy when a salesperson leaves? How do you handle the vacant period? Below is a blog from the Harvard Business Review by Andris A. Zoltners, Sally E. Lorimer, PK Sinha:

How to Reduce the Costs of Salesperson Turnover

 Even the best sales forces can’t keep every good salesperson. Loss of salespeople to competitors occurs frequently in high-growth industries in which the demand for experienced salespeople exceeds the supply, such as in fast-evolving technology markets. Poaching of salespeople also occurs when sales are driven largely by relationships. For example, wealth management companies frequently recruit advisors who have built a strong book of business at competitive firms.

Companies facing high sales force turnover situations can try to reduce undesirable loss of salespeople, but they should also use another strategy, by taking steps to reduce the negative consequences on customers and the company when salespeople do leave, as some inevitably will.

These strategies focus on minimizing sales loss during three critical phases surrounding a salesperson’s departure – the withdrawal period, the vacancy period, and the hiring/orientation period.

Managing the Withdrawal Period

In the period from when salespeople contemplate leaving until they actually depart, salespeople often stop putting full effort into the job. Too frequently, departing salespeople are distracted by their job search. Or worse, if a departing salesperson plans to work for a competitor, the salesperson might feel pressure to convince customers to defect. Minimizing withdrawal period sales loss requires a proactive approach.

It starts with detecting the possibility that a salesperson might leave as early as possible. First-line sales managers are critical to this effort. By keeping in touch with their people, managers can identify and address emerging issues before they escalate to the point where salespeople decide to leave.

One company with a large internal sales force used an early-warning system to track call agent behavior and predict the likelihood of resignations. Signals of impending departure included fluctuating productivity, an increase in the number of vacation days taken one at a time, a drop in call quality, and increased off-phone time. By tracking these signals, the system could direct incoming phone calls from important customers to agents who were not at risk of leaving. In addition, managers could meet with employees at risk of leaving to talk through their situation and try to prevent their departure. Managers could use solutions such as job rotation, job enhancement, relocation, and greater control of their work schedule.

Even when intervention can’t preempt an unwanted departure, early detection gives companies more time to prepare for a smooth transition of relationships with customers before a salesperson leaves.

Managing the Vacancy Period

From the time the salesperson departs until a replacement is found, two strategies help minimize sales loss.

The first is to shorten the vacancy period through aggressive and proactive sales force recruiting. One medical equipment company minimized vacancy time by keeping a bench of screened and trained candidates who were ready to jump into sales positions quickly when needed. Bench programs work best in large sales forces in which the sales job requires significant training time. If training needs are modest or the cost of maintaining a bench is too high, constant recruiting can create a “virtual” bench. By maintaining a list of viable job candidates before an opening occurs (including employee referrals, candidates who rejected past offers, employees in other functions), companies accelerate hiring and reduce vacancy time.

The other key to minimizing the costs of the vacancy period is to avoid lapses in customer coverage. This is especially important for major customers that depend upon and trust a departing salesperson who has in-depth knowledge of their business or who has participated throughout a long sales cycle (which means sales are often left half-completed). Even the most loyal customers may see the salesperson’s departure as a reason to consider competitive offerings. Providing temporary coverage of major customers by a sales manager or by another salesperson until a permanent replacement is found can avoid sales loss.

Managing the Hiring/Orientation Period

Once a replacement is selected, it takes time for that individual to become fully productive.

The costs of this period can be reduced by making it a priority to get salespeople up to speed quickly. Sales managers play a critical role in onboarding and training new salespeople to help them understand the culture, learn the products and customers, and become fully engaged. Hiring experienced salespeople also helps accelerate the learning curve.

An Ounce of Prevention

Defensive approaches can protect companies in high sales force turnover environments. Two strategies help minimize sales loss across all three phases surrounding a salesperson’s departure.

First, build multiple connections between customers and the company. The risk of customer loss is especially great when departing salespeople hope to bring customers along to a new job with a competitor. Take action well before a departure is imminent. Get a sales manager or sales specialist involved with customers in deals with long sales cycles. Provide customers with resources they value outside the sales force, such as a customized ordering website or easy access to customer service or technical support personnel. Such resources can encourage customer loyalty that outlives a connection with an individual salesperson.

Second, use CRM systems to capture critical information. Such systems can document customer needs, track the sales pipeline, and help ensure essential information is not lost in transition.

Turnover of salespeople too often results in missed sales opportunities and loss of business. Even the best sales forces experience some disappointing departures. By taking defensive steps now, and working diligently during the three phases that accompany an individual’s departure, those costs can be minimized.

Original Page: https://hbr.org/2017/11/how-to-reduce-the-costs-of-salesperson-turnover