LeadersWay

Unlocking the Possibilities

April 19, 2007
www.leadersway.com
Kevin Wolfe

Why You're Failing to Engage Customers

Most companies face barriers that prevent them from fully engaging customers and employees. Here are the five root causes of those obstacles -- and how to overcome them.

All companies strive to make the most of two key assets – their customers and their employees. Yet organizations unintentionally create barriers that prevent them from fully engaging those two groups.

In the first article of this two-part series, we outlined the key characteristics of those barriers, as determined by a Gallup study of barriers to engagement across several industries in seven countries. This article explores the root causes of these barriers and how to permanently remove them to clear a path to greater customer and employee engagement.

The five root causes

Gallup's study identified about 200 barriers and evaluated the root causes of each. Surprisingly, virtually every barrier identified could be traced back to one of five primary causes, regardless of the industry, function, or geography of the company.

The barriers were often obvious and seemingly intractable, as they involved hundreds of variables and many job roles. Understanding the key variables helps companies identify the specific systems, structures, processes, and people in the organization that must change to overcome the barriers. And though the barriers can seem entrenched and complex, the root causes are not.

Root cause 1: fear

The most prevalent root cause of barriers to engagement is fear; at least one fear-based barrier existed in all the companies Gallup studied. While it may seem surprising that companies with rational, disciplined management would be subject to self-inflicted damage due to fear, the data indicate that it likely happens in all companies. Fear-based barriers restrict employee and customer engagement in several ways. Fear stifles innovation and creativity, limits an organization's flexibility in meeting customer requirements, prevents cross-functional collaboration in addressing problems, discourages empowerment, and causes turnover.

As companies grow, they begin to introduce rules, policies, and procedures that attempt to mitigate concern about loss -- loss of control, respect, or certainty that employees will "do the right thing." Checks and balances are required in all businesses, but they can go too far. Examples of institutional fear-based barriers include excessive scripting of customer contacts and lack of frontline empowerment.

Managing institutional fear may sound daunting, but it can be done. For example, the customer center of a financial services company decided that rather than scripting its customer center interactions, it would provide guidelines to encourage customer service representatives (CSRs) to use "value added phrases." The key is to establish limits while allowing employees to take some risks to meet customer or internal needs. Risks that succeed should be rewarded; risks that fail, but are attempted within the rules, should be treated as learning experiences rather than as a cause for discipline.

The second source of fear in an organization is at the individual level. Even when an organization is struggling, some employees will find power and contentment in the status quo. This leads them to resist change -- actively or passively. Typically, fearful employees fall into three categories:

• The reluctant gatekeepers: These employees tend to derail progress or innovation. Often, they are influential players who are more interested in protecting the "old way" than in adapting to a changing environment.

• The risk-averse: These workers are reluctant to challenge inefficiencies or to propose change -- in the organization or in their own department -- because they fear reprisal or are concerned about how change might affect their role or workload.

• The "speed bumps": These employees aren't necessarily in a position to directly influence thinking in the organization. But they can, through lack of knowledge or motivation, slow down the progress of groups tasked to investigate challenges and enact change.

Managing individual fear is more challenging because this type of fear can't necessarily be conquered by modifications to process or policy. The first step is to ferret out the organizational factors leading to this fear.

For instance, change often inspires fear. One way to counteract this is to improve communication about changes by clearly establishing who is accountable for achieving strategic outcomes. This helps managers and employees look past the initial hardships of change (such as increased or varying workload, or loss of power or valuable connections) while focusing on the eventual benefits of success (such as increased efficiency and productivity, improved customer relations, or increased sales and incentive-based compensation).

Please click here to continue reading Why You're Failing to Engage Customers.

Reprinted from The Gallup Management Journal

Note from Kevin

Greetings!

Welcome to part two of the two-part series on engaging internal and external customers. I don’t know about you, but I give so much credibility to these articles from Gallup because everything they present is founded in solid research. What that says to me is that it just makes sense to use their research as guide posts for increasing employee and customer engagement at all levels of the organization. And remember, engagement is the most critical factor when it comes to positioning your company for the challenges of the next decade.

Of the 5 Root Causes of disengagement I want to take a minute and share some thoughts about two of them: fear and short-term focus. This is in no way an attempt to diminish the other 3, because all 5 are critical factors to engagement. I chose these two because I find them to be the hardest for leaders and managers to understand and improve.

Fear -- this invasive cause of disengagement is very hard to put your finger on and is often something that is felt rather than seen in the workplace. I would also challenge you to consider the idea that fear can be both positive and negative depending on how it is managed. The positive side of fear is a normal (and desired) part of the continuous improvement process; it comes with change. The negative side of fear is created when normally productive people in some way feel threatened. It is my belief that the secret to managing fear is to take the time to think through how people (whoever is involved) will perceive the change and to know what they need to feel comfortable with it. Don’t try to eliminate fear but do everything you can to manage it.

Short term focus -- sacrificing long term results for short term gain may be one of the most preventable causes of disengagement in organizations. Every time a decision is made as a “reaction” to current conditions, you can expect a fairly heavy cost down stream. I am also convinced that it’s a short term focus that keeps organizations stuck in the whitewater of daily crisis, anxiety and stress. The challenge I see is that far too many people in leadership and management positions are caught up at “hacking away in the jungle” when they should be making sure the decisions that are being made will drive sustainable results year after year.

Yes, there is a lesson in all of this! Both these causes of disengagement can be managed by using the same concept: PAUSE! Before you make a decision to change or do anything, I urge you to PAUSE! You have control over the decisions you make, and I challenge you to exercise that control.

Many of you are great decision makers, but I also know many of you don’t explore all the alternatives that come with decisions. I’m asking you to do something different. I’m asking you to discipline (read: habit) yourself to PAUSE each time a decision has to be made and systematically explore the alternatives. I guarantee life gets easier and results improve when you take a moment to PAUSE.

Life is good...

KW

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