I was lucky enough to spend a week on a whirlwind business tour of India a few years back travelling to five cities and meeting executives from many of the leading Indian brand names from Tata through to Titan. As many people are, however, I was struck by the contrast between extreme wealth and the tenacity of the so called untouchable class of fervent entrepreneurs who keep India buzzing.

One of my contacts from that trip sent me this story. It speaks volumes:

A Blackberry addict discovers grassroots enterprise in India

A greater ‘hole in the wall’ you cannot imagine.  A small fading sign on the top saying “Cellphoon reapars” barely visible through the street vendors crowding the Juhu Market in Mumbai. On my way to buy a new Blackberry, my innate sense of adventure (foolishness) made me stop my car and investigate. A shop not more than 6 feet by 6 feet. Grimy and uncleaned.

‘Can you fix a blackberry ?”

‘ Of course , show me”

” How old are you”

‘Sixteen’

Bullshit. He was no more than 10. Not handing my precious blackberry to a 10 year old in unwashed and torn T shirt and pyjama’s ! At least if I buy a new one, they would extract the data for me. Something I have been meaning to do for a year now.

‘What’s wrong with it ?”

‘Well, the roller track ball does not respond. It’s kind of stuck and I cannot operate it”

He grabs it from my hand and looks at it

“You should wash your hands. Many customers have same problem. Roller ball get greasy and dirty, then no working’

Look who was telling me to wash my hands. He probably has not bathed for 10 days, I leaned out to snatch my useless blackberry back.

” you come back in one hour and I fix it’

I am not leaving all my precious data in this unwashed kid’s hands for an hour. No way.

“who will fix it ?”

‘Big brother’

‘ How big is ‘big brother?’

‘big …. umm ..thirty’

Then suddenly big brother walks in. 30 ??? He is no more than 19.

‘What problem ?’ He says grabbing the phone from my greasy hand into his greasier hand. Obviously not trained in etiquette by an upmarket retail store manager.

‘Normal blackberry problem. I replace with original part now. You must wash your hand before you use this’

What is this about me washing my hands suddenly ??  19 year old big brother rummages through a dubious drawer full of junk and fishes out a spare roller ball packed in cheap cellophane wrapper.  Original part ? I doubt it.

But by now I am in the lap of the real India and there is no escape as he fishes out a couple of screwdrivers and sets about opening my Blackberry.

“How long will this take ?”

” Six minutes ”

This I have to see. After spending the whole morning trying to find a Blackberry service centre and getting vague answers about sending the phone in for an assessment that might take a week, I settle down next to his grubby cramped work space. At least I am going to be able to watch all my stored data vanish into virtual space. People crowd around to see what’s happening. I am not breathing easy anyway. I tell myself this is an adventure and literally have to stop myself grabbing my precious blackberry back and making a quick escape.

But in exactly six minutes this kid handed my blackberry back. He had changed the part and cleaned and serviced the the whole phone.  Taken it apart, and put it together. As I turned the phone on there was a horrific 2 minutes where the phone would not come on. I looked at him with such hostility that he stepped back.

‘you have more than thousand phone numbers ?”

‘yes’.

‘backed up ?’

‘no’

‘Must back up. I do it for you. Never open phone before backing up’

‘You tell me that now ?’

But then the phone came on and my data was still there. Everyone watching laughed and clapped. This was becoming a show. A six minute show.

I asked him how much.

‘ 500 rupees’ He ventured uncertainly . People around watched in glee expecting a negotiation. Thats $ 10 dollars as against the Rs 30,000 ($ 600)  I was a about to spend on a new blackberry or a couple of weeks without my phone. I looked suitably shocked at his ‘high price ‘ but calmly paid him. Much to the disapointment of the expectant crowd.

‘do you have an Iphone ? Even the new ‘4′ one ?

‘no, why”

‘I break the code for you and load any ‘app’ or film you want. I give you 10 film on your memory stick on this one, and change every week for small fee’

I went home having discovered the true entreprenuership that lies at what we call the ‘bottom of the pyramid’. Some may call it piracy, which of course it is, but what can you say about a two uneducated and untrained brothers aged 10 and 19 that set up a ‘hole in the wall’ shop and can fix any technology that the greatest technologists in the world can throw at them.

I smiled at the future of our country. If only we could learn to harness this potential.

‘Please wash your hands before use’ were his last words to me.

Now I am feeling seriously unclean.

The Peter Principle states that “in a hierarchy every employee tends to rise to his level of incompetence.” It was formulated by Dr Lawrence Peter and Raymond Hull in their 1969 book by the same name.

I call them “the brand dead” or “brand spectators” who fur up the organisation’s arteries. Most MDs tolerate a Peter or two. But when conditions change, Peter and pals can very quickly poison your brand from within. When the big battalions are mobilised and change is demanded, the Peter’s, not the market conditions, are your worst enemy.

Consider the impact a Peter can have on your recruitment drive.

“Hire people who are better than you are, then leave them to get on with it . . . ; Look for people who will aim for the remarkable, who will not settle for the routine.” The late David Ogilvy, advertising executive

“If you pick the right people and give them the opportunity to spread their wings—and put compensation as a carrier behind it—you almost don’t have to manage them.” Jack Welch, former chairman and CEO of General Electric

Ogilvy and Welch point the way towards recruitment nirvana – making the most of the fact that it’s an employer’s market to recruit experienced; challenging; maverick; game changers who will stimulate the innovation you need.

But the Peters will desperately cling onto the status quo, recruit in their own image and reinforce the employer brand which failed to spot the issues which have since marched all the way around the corner and into your boardroom.

And if you’ve encouraged Peter-style behaviour within your intermediaries and recruitment agents, you’re in deep trouble as they will doubtless perpetuate a protectionist culture.

When you get a moment, just take a look at the various recruitment and blogging forums and consider how many really good people are out there at the moment. Listen to what they’re saying about the recruitment practices of the Peters. Ask yourself whether you know who your Peters are and whether Peter can be motivated to change?

But most of all question whether your recruitment strategy is paying Peter by robbing Paul and the impact this is having and will have on the performance of your brand.

I was at a dinner party thrown by a former HR director friend recently and as I arrived at his house was struck by the number of high performance cars on the driveway and then, once I was introduced to his guests, was equally surprised by the fact that most were from the HR community.

Now, I’m not deriding folk for their success. It just took a little getting used to, especially as most of the conversation revolved around the financial benefits associated with acquiring a reputation as a downsizing expert and “being the last one to turn out the lights” before moving on.

It’s clearly wrong to claim that re-sizing has become the raison d’etre of the modern HRD. But this perception wasn’t helped by the dinner party conversation about what it really means to trust and whether trust has any place at work?  

One premise was that the last two years has seen employees’ trust in their organisations fall dramatically and that organisations need to work at ways of re-engaging and re-establishing the psychological contract. The opposite - and prevailing view - was that there are certain things in business that have to remain secret, that being open and honest is often impossible and people should be mature enough to accept that.

The concensus was that trust has no real place at work any longer and that a healthy scepticism should prevail recognising that the employer/employee relationship is “a marriage of convenience”. Neutrality was seen as preferable but is it possible or even desirable to remain neutral in a vocational environment you devote the largest portion of your life to?

I appreciate that many of the HRDs I seem to meet these days are vassels for the process re-engineers and have become de-sensitised to emotions in a similar way to soldiers on the frontline. But is this a reflection of behaviour born of survival or how they really believe things should be?

Trust is a fairly fundamental emotion. If there’s no trust there’s no psychological contract between employees and the employer. Without that there’s no “extra mile” and no relationship development.

I guess you can have a relationship or marriage of convenience based on neutrality, without passion; empathy and drive. But then you can also join Victorian role playing societies to escape from reality.

I’m fascinated by what has become the widespread abuse of the term ‘performance culture’.  For me this phrase has become inextricably linked with the drive for delivering shareholder value in quarterly increments and the “up or out” mentality which has spilled over from investment banking.

But where does this leave the zealots now that a number of the investment banking super-tankers have holed themselves on the reefs of greed, selfishness, arrogance and some fairly suspect practice? Surely it’s time for a fundamental re-think.

I would go so far as to suggest that the culture problem is a widespread issue every bit as serious as the accusations of systemic racism levelled at the police force back in the 90s. Arguably this crisis will have even more far reaching consequences.

The time has come for comprehensive internal reviews followed by an energetic re-positioning of the vision, mission and values and associated people processes within many of our leading brand names.  This should be the first step towards a re-framing of the definition of performance.

This is a complex issue but consider for a second the long established theory that an individual is at their most effective within a role some 2.5 years into the job. Or reflect on the equally established best practice that leaders should spend most of their first 100 days listening and gathering information. Contrast this with the notion of “hitting the ground running” and the obsession with quarterly shareholder reporting and year on year incremental targeting regardless of conditions. Mixed messages?

It seems a little old fashioned in these high octane times but there’s sound logic underpinning leadership best practices which call for considered, well paced decision making based upon an understanding that the decision makers will still be around when the impact of their decisions come to fruition.

Bankers, for example, used to be remunerated on the basis of loyalty bonuses and benefits packages at preferential rates.  Not so long ago, any posting on a c.v. revealing tenure in a role of under three years was viewed with suspicion.  Lift the drains on the recent recruitment drive amongst the retail banking sector and you will be greeted by whole teams made up of job-hopping former investment bankers.

Don’t get me wrong.  I very much believe in the notion of a culture of performance.  That’s why we’re all in business after all.  I just don’t believe in the notion of winning at all costs.

 Brands are built from within.  Brands are not about promises made by marketing. They’re about promises met by employees.

When staff choose industrial action; walk out; strike it signals a fundamental disconnect between your employees and your brand. Employee engagement has broken down.  It’s rebuildable, but only if everyone involved remembers that communication is more about listening than it is about pushing and managing messages.

Strikes tend to be synonymous with the public sector – like the Winter of Discontent in the 70s or miner’s strikes a decade later.  They are usually simplified in the press as clashes of intransigent polar extremes; management vs workers; greed vs survival. But they’re a lot more complicated than the caricatures of greasy pinstripes vs blue collar table bashers suggest.

Consider the Royal Mail dispute. On the face of it this can be seen as the death throes of the once irresistible force of New Labour’s spin doctors meeting the formerly immovable object of trade unionism. But talk to the ordinary postie or even customer in the street (or behind the letterbox) and this dispute is about so much more. 

It’s about a fight for identity by employees who are emotionally connected with a brand which they, and their customers, see as a national institution (see Buckingham; Brand Engagement http://www.by2w.co.uk/new.html ).

It’s about culture, “the way things get done around here” and workers resisting the march of automation which experience tells us may slash cost off the bottom line but does not guarantee better customer service or an improved quality of life (anyone remember the days of second post and trustworthy postal staff?).  In short, it’s a brand battleground that reflects a range of hot social issues topics including culture, values and identity.

As someone who specialises in helping organisations manage brands from within I’ve been called upon to help avert three high profile strikes in the last five years. Two were in the retail sector during the run up to Christmas and the most recent was a college where the staff were actively dissuading students from enrolling.

In each case the core issue wasn’t about pay and rations but fundamental communication issues like listening; consultation and disengaged staff who felt their managers were no longer connected with the values they believed their brand represented. In all three cases, catastrophe was averted through re-opening communication channels; fostering respect and active listening

People care more about the brands they work for than you may think.  Culture, the way people do things within the organisations that support those brands, is probably the most important determinant of brand performance.

It’s worth spending some time understanding the true dna of your brand. If you don’t know what brand engagement is worth, especially in these lean times, can you risk your employees deserting their posts? Or even worse, disengaged staff continuing to represent your brand?

WASP males don’t tend to get too many invitations to be involved in the promotion of diversity management; which is a shame really.  I’m a firm believer in the notion that the promotion of diversity should embrace the full range of stakeholders; it should truly practice inclusiveness in the way stakeholders are engaged with the philosophy or it runs the risk of being seen as a marginal activity aimed at an exclusive audience.  A “push” communication approach may be one of the reasons why the diversity flag bearers within organisations sometimes find themselves struggling for real influence at the top table.

But this thought piece isn’t to critique the notion of diversity or challenge its increasing relevance to the organisation development and employee engagement agenda. I would like to share a rare moment of Belgian enlightenment.

Picture the scene.  The wonderful and irrepressibly inspirational Myrtha Casanova of the The European Institute for Managing Diversity had enlisted my help to co-facilitate a workshop she was running with the senior executives of a global producer of cereal crops and foodstuffs.  They had been embroiled in a PR war with NGOs and pressure groups worldwide because of controversial growing techniques and what was perceived as an arrogant communication stance.

The workshops were intended to develop diversity strategies across their global businesses.  Most of their senior executives were gathered in Belgium to that end – and they weren’t very pleased about it.

It was soon clear that their beleaguered HR Director had been forced into developing a diversity strategy by the board who were in turn responding to US legislation.  The executive cadre encamped in Belgium were 90% male, mostly of Anglo Saxon origin and frankly, felt they had much more pressing priorities.  In short, the workshops quickly regressed into trench warfare.

The turning point came, however, shortly after lunch on day one when, rather than push more and more statistics, facts and process at the group, we adopted a less evangelical approach and asked them to explore their brand from the customer’s perspective. 

They had traditionally seen themselves as a business to business organisation but it took one of the more junior managers, who also happened to have the largest team and who also happened to be a woman, to point out that housewives could make or break their company.  By drawing a simple supply chain model she was able to quickly illustrate the route their product ultimately followed to market and how it was immaterial that they weren’t putting the bread on the shelves themselves. Women still make the vast majority of purchasing decisions per household and the retailers were reliant upon their suppliers to provide raw materials in tune with the ethics and values of the consumer.  An epiphany!

This simple, jaw-dropping moment proves to be a revelation for her cynical peers who had clearly spent years developing competencies and promoting values appropriate for managing their equally macho purchasing managers in the businesses they were selling to.  Suddenly the link between organisational culture and their PR problems was put into stark relief. More importantly, they realised that, without a more representative management structure they would make similar mistakes.  The business case for diversity had become clear and the rest of the session was put to productive use developing a central and local diversity policy, strategy and engagement approach which owed much to a loaf of bread!

If you want to find out more about the EIMD (a not for profit organisation founded in 1996, with headquarters in Barcelona and which operates across the European Union), take a look at their website http://www.iegd.org/englishok/who.htm

Or feel free to drop me a line and I’ll tell you more about this and similar stories.

Ian@by2w.co.uk

Legacy is a loaded term. If you’re the glass half empty type it smacks of “ old fashioned, out of date, redundant”. If you favour the glass half full approach you’ll make associations like “firm foundations; proven track record and relationship equity” when you hear this term.

As a brand and engagement specialist, I’m acutely aware that one of the strongest but often most underappreciated assets many Old World brands have is their legacy. In times of crisis and change it can be comforting to employees to know that this organisation has withstood worse in the past.

As individuals, we seem to be increasingly interested in notions of legacy, family heritage – where we come from. The Haka, the famous tribal dance of the feared New Zealand rugby team literally attempts to summon up the spirits of the ancestors of the combatants to provide strength and courage as they face a new challenge. Perhaps this was what organisations like Walmart have tried to replicate with their company songs or may explain the communal song and dance rituals at employee conferences?

Now this overt attempt to conjure up corporate spirit isn’t to everyone’s taste. It illustrates the point that employee engagement has to be fit for purpose within local employee markets. But by mentioning what some may consider to be “naff” engagement initiatives that are puzzlingly powerful mutu for others does beg the question “what are you doing to engage your employees during the downturn”?

It comes as little surprise to me that I’ve seen a rise in the number of complaints from employees across sectors about the availability of their line managers.  There has also been a decline in face to face communication like Team Briefings and a rise in what I term e-mail management. When they can’t come up with answers to tricky issues many line managers are choosing to lie low.

In these dark days, leaders need to call upon all of their resources to speed up the recovery process. If your brand has a legacy, what initiatives are you undertaking to make the most of that heritage to provide confidence, assurance and a sense of stability?  Most importantly, how are your most important communicators, your line managers, being recognised and utilised as the eyes, ears and voice of the business?

The Renaissance of the Mighty Mutuals

There was a time, not so very long ago, when the mutual societies were seen as deeply unfashionable and treated with the same disdain as a flat cap at Royal Ascot.

Well, the day of the mutual has dawned once again.

In 19^th century England, the Industrial Revolution erupted into massive social change and, as a by-product of the rive for prosperity it threatened to tear village communities apart as generations headed into towns and cities to service heavy industry.

Building societies emerged as financial mutual help organizations for workers who had been uprooted from village communities. They offered a way for workers to pool resources and fund and build their own housing in spite of the sometimes scandalous and always difficult economic conditions of the new cities.

Mutual societies, of which the Yorkshire Building Society and Nationwide and, of course, Co-Operative Finance are examples can trace their roots back a couple of hundred years and several generations. Unlike most financial services organisations, they are run for the benefit of members rather than shareholders and take their foundation values very seriously. To this day they are one of the few types of organisation where several generations of the same family are happy to till work hand in hand.

As I very much respect this link between values, communication and brand I wrote about the YBS in Brand Engagement and will be featuring a major case study on the Co-Operative Financial Services in the sequel Brand Champions, not least because, despite these dark days, they are not only surviving but are thriving.

While their competitors resort to lawyers and due process to defend their much depleted positions from the wolf packs at the gate, which sadly includes a growing mob of disgruntled employees who are increasingly joining with shareholders baying for the blood of the board; Nationwide has announced further expansion plans, as has CFS and most mutuals are experiencing a flood of deposits and new accounts.

Cynics may claim that this simply represents a triumph of inertia over innovation and, yes, it’s true the mutuals have taken care with depositor’s money, but they have also been significant innovators in their own right. 

Did you know that there are more Co-op outlets than McDonalds stores in the UK? Were you aware that CFS was one of the most significant investors in Employer Branding and Brand Engagement across sectors and that their state of the art brand engagement experience regularly attracts international visitors desperate to transfer best practices into their own organisations?

This all goes to show that we shouldn’t blindly lust for Disney’s magic dust when seeking the employee engagement nirvana. 

The time has come to re-consider the humble mutual, organisations in the truest sense who treasure their legacy and who position their values at the very forefront of their brand. After all, what is a brand if it isn’t about keeping the promises you make to the market? What wouldn’t shareholders, both internal and external, give for that kind of authenticity right now?

 These are complex corporate times but as the finger of blame for the global economic downturn is pointed at various external stakeholders like the regulators and even the customers themselves, it’s interesting to hear the term “corporate culture” finally surfacing in banking post mortems.

The term performance culture has been increasingly abused within performance management parlance.  It has become inextricably linked with the drive for delivering shareholder value in quarterly increments and the “up or out” mentality which has spilled over from investment banking.

But now that almost every investment banking super-tanker has holed itself on the reefs of greed, selfishness, arrogance and some fairly suspect practice it’s time to reclaim the phrase. This is why leaders like RBS’s Stephen Hester are now having to open internal moratoriums in an attempt to bridge the obvious and growing employee engagement gap that has opened up within some of our high profile financial services names.

Ironically, despite this being an employer’s market, employee engagement; employer brand and corporate culture have never been so important. But it’s time for a fundamental re-think about how internal stakeholders (employees) are managed. The infrastructure underpinning many employment brands is clearly in need of a dramatic overhaul. And this is no job for the marketing function or advertising types.

Clearly characteristics like sustainability, network building and relationship development are the bedfellows of integrity, accountability, security and trust (the values, ironically, most popularly used to market the wares of financial services companies). But how can these values flourish when FS employees have seen HR functions replaced by processes and help lines; when average employee tenure (and loyalty) has fallen so dramatically and when  effective performance management and feedback loops have been replaced by grievance processes and whistle blowing – the corporate equivalent of “ratting on your colleagues”

I’m certainly not calling for a complete return to the cosy old hierarchies; glass ceilings and command and control regimes. But it’s clear that there’s going to have to be a large dose of mature, “back to the future” relationship based thinking if the nirvana of an appropriate and authentic performance culture is ever going to be achieved by arguably our most influential businesses and brands. And if the last 18 months has taught us anything it’s that none of us can afford for our financial services brands to continue to fail their employees by making promises to customers and the market that they simply can’t keep.

Ian