Think in 3D! The 7 Characteristics of 3D Businesses An Intimate Breakfast Sheffield 13 th April 2016

Who The Hell Are Andy Hanselman Consulting?

We Help Businesses And Their People Create Competitive Advantage By... Thinking in 3D !

Dramatically and Demonstrably Different! That means being...

3D? Why...

I research, write about, talk about and work with high performance businesses (and have been for over 24 years!)

Dramatically and Demonstrably Different 7 Characteristics of Businesses

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Who are you?

What Does ‘Success’ Look Like?

That’s what this session is all about!

What do ‘Successful’ Businesses Have And Do?

Satisfied Customers

Sufficient ‘Delighted’ Customers

High Expectations Low Expectations A ‘Poor’ Experience A ‘Great’ Experience ‘Devoted’ ‘Delighted’ ‘Disappointed’ ‘Disaffected’

Sufficient ‘Devoted’ Customers Committed Motivated Effective People Maximised Financial Returns L

Sufficient ‘Devoted’ Customers Committed Motivated Effective People Maximised Financial Returns L

How Do You Measure Up?

SWOTSWOT

Sheffield Wednesday On Their way down

Strengths Weaknesses Opportunities Threats

So What!

What are your key issues?

What do you need to do?

Dramatically and Demonstrably Different 7 Characteristics of Businesses

3D Characteristic #1:

Get That Vision Thing!

“Creating a clear picture of the future that ‘stimulates, excites and inspires”

Imagine the future - what does it hold for you? Err are you sure?

“Contrary to some forecasts in recent years, the internet has settled down to become a worthwhile but minority channel to market. For example, internet book sales have plateaued at just over 5% of the market, and it seems unlikely that there will be sufficient demand to enable multiple operators to develop profitably” Hmv Annual Report 2002

What does a vision look like

Simply a set of financial figures or targets A business plan and lots of spread sheets A ‘pie in the sky’ idea The MD’s speech at the annual staff conference! is not....

A picture of the future we want Something that stimulates, excites and inspires A point of strategic focus Something for everyone to work towards is....

Get Engaged!

People tell us they want to know...

“Why are we doing this?”“How is it relevant to me?”“What specifically do you want me to do?” “What tools and support are available?” “What’s in it for me?” “How are we doing?” “How will I be measured?”

The Leaders’ Role?

22 % Left their last job due to lack of faith in the leadership team 19% Quit because they felt “unappreciated” 19% Left because they felt “disengaged and unmotivated” Source: Benchmark Recruit’s survey of over 3,000 employees November 2013

“To The Management: Today is my 31st birthday, and having recently become a father I now realise how precious life is and how important it is to spend my time doing something that makes me, and other people, happy. For that reason I hereby give notice of my resignation, in order that I may devote my time and energy to my family, and to my cake business which has grown steadily over the past few years. I wish the organisation and my colleagues the best for the future and I remind you that if you enjoy this cake, you can order more at Chris Holmes

1 Billion ‘Tiny Tummy Touch Points’! 3D Demonstrated!

Senior Executive Incentive Scheme! 3D Demonstrated!

“Fixed on the vision, flexible on the journey” Jeff Bezos, CEO, Amazon 3D Demonstrated!

3D Characteristic #2:

‘Think in 3D’ !

What exactly is ‘Marketing’?

A Classic Definition of ‘Marketing’: “Marketing is a social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others”

My Definition of ‘Marketing’: “Finding, attracting and keeping the customers that you want while maximising your profits”

Why should I buy from YOU?

Sit down if you wrote anything like this... Our ‘expertise and experience’ Our people Our location Our reputation Our quality Our pricing Our personal service Our customer care Our flexibility to customer needs Our ability to solve problems Our ‘uniqueness’

USP’s?

= ‘Usual Stuff People say’!

Do ‘things’ that stand out

Things that get people talking!

3D! That’s...

Dramatically and Demonstrably Different! That means being...

Dramatic Difference: “An unmatchable ‘bundle’ of products, services, skills, methods and practices that differentiate a business from its competitors”

‘-1D’ ‘Dramatically & Demonstrably Different’ ‘ worse than ’ ‘as good as’ ‘ Dramatically Different ‘as bad as’ Different (‘better than’) ‘0D’‘0D’‘1D’‘1D’‘2D’‘2D’ ‘3D’‘3D’

3D Demonstrated!

Dramatic Difference ? What is your... How do you... Demonstrate it ?

3D Demonstrated!

3D Characteristic #3:

Create ‘Delighted’ and ‘Devoted’ Customers!

3D Demonstrated!

3D Businesses... ‘Foster devotion’ through consistency!

Approach customers with a personalized warm welcome Probe politely to understand all the customer’s needs Present a solution for the customer to take home today Listen for and resolve any issues or concerns End with a fond farewell and an invitation to return 3D Demonstrated!

Approach customers with a personalized warm welcome Probe politely to understand all the customer’s needs Present a solution for the customer to take home today Listen for and resolve any issues or concerns End with a fond farewell and an invitation to return 3D unDemonstrated! Rub up your customers the wrong way Yes, go on, all the way Apathy is encouraged Never bother to try and make them smile Approach them with indifference Infer it’s them who are the problem Remember, we’re right behind you to help you do this

“ There may be 50 ways to leave your lover, but there are only 4 ways out of this airplane” “Your bags will be available on carrousel x. If you do not find them, they will be available in 2-3 weeks on eBay” “ In order to enhance the appearance of your flight crew, we will be dimming the cabin lights” 3D Demonstrated! “I never had control, and I never wanted it. If you create an environment where the people truly participate, you don’t need control” Herb Kelleher, founder, Southwest Airlines

3D Characteristic #4:

Forget CRM, think MCR – Maximise your Customer Relationships!

“Proactively developing relationships that give the best to, and get the best from, the customers you want”

Maximise Opportunities ! 3D Businesses...

Think... ‘share of customer, not just ‘share of market’

3D Demonstrated!

Easy to buy from! Keep you informed! Make recommendations! Remember you! 3D Demonstrated!

They do it consistently! $34 Billion!!!

3D Characteristic #5:

Create An UBER Culture!

What exactly is ‘Culture’?

A Classic Definition of ‘Culture’: “A pattern of shared basic assumptions that the group learned as it solved its problems of external adaptation and internal integration, that has worked well enough to be considered valid and therefore, to be taught to new members as the correct way to perceive, think, and feel in relation to those problems” Edgar Schein, Organisational Culture And Leadership, 1993

My Definition of ‘Culture’: “The way we do things around here”

Another Definition of ‘Culture’: “It’s what people do when no one’s looking” Herb Kelleher, Founder, Southwest Airlines

Everyone Understands what’s expected of them and behave accordingly and consistently Systems and processes are Built to reinforce and support the culture People are Engaged, Empowered and Encouraged to deliver them People are Rewarded and Recognised for doing it! 3D Businesses Ensure:

3D Demonstrated!

It’s All About ‘Behaviours’! Oh Behave!

‘Customer praise’ procedure? ‘Customer complaints’ procedure

Tony Hsieh, CEO, Zappos “ We interview people for culture fit. We want people who are passionate about what Zappos is about– service. I don’t care if they’re passionate about shoes.” 3D Demonstrated!

Beer Knowledge Thursdays! 3D Demonstrated!

Demonstrate preferred behaviours: ‘show your character’ Employees rewarded for ‘cheerfulness’! Mystery shopper highlights ‘outstanding’ customer experiences Reward for team and individual performances - £50 bonus for individuals to be spent with the team Interview is a 6 hour shift and staff vote ‘in’ or ‘out’ 3D Demonstrated!

“We entrust every single Ritz-Carlton staff member, without approval from their general manager, to spend up to $2,000 on a guest. And that's not per year. It's per incident” Simon F Cooper, President Ritz Carlton 3D Demonstrated!

Everyone Understands what’s expected of them and behave accordingly and consistently Systems and processes are Built to reinforce and support the culture People are Engaged, Empowered and Encouraged to deliver them People are Rewarded and Recognised for doing it! 3D Businesses Ensure:

Champion Your Champions

Why not get your customers to do it? 3D Demonstrated!

“You’re going to have a culture anyway. You can and should influence it – so why not build the one you love?” Darmesh Shah, founder of 3D Demonstrated!

3D Characteristic #6:

KeeP In Control!

Collect Analyse Communicate Maximise

Analyse Communicate Collect

What would you want to know? 3D Demonstrated!

Create A Profit Focus!

“50% of businesses cannot accurately determine their profitable customers and products” source: KPMG

3D Characteristic #7:

InnovatiON!

“The successful exploitation of new ideas”

27% of UK employees are sitting on ideas that they think would be good for their business but they’re not putting those ideas forward. Source: L’Oreal Research

71% of UK businesses don’t have any such platform for contributions to be made! Source: L’Oreal Research

“My door is always open” is NOT a process!

Pizza Problem Solving! 3D Demonstrated!

1: Leadership 2: Systems and processes 3: Climate 4: Implementation

So.... in summary

3D Characteristic #1:

Get That Vision Thing!

3D Characteristic #2:

‘Think in 3D’ !

3D Characteristic #3:

Create ‘Delighted’ and ‘Devoted’ Customers!

3D Characteristic #4:

Forget CRM, think MCR – Maximise your Customer Relationships!

3D Characteristic #5:

Create An UBER Culture!

3D Characteristic #6:

KeeP In Control!

3D Characteristic #7:

InnovatiON!

How Do You Measure Up?

Take action, not notes!

What can you do about it?

3D strategic away days!

3D Conferences!

In-house 3D sessions! Y o u c h o o s e t h e t o p i c s a n d s u b j e c t s !

UCLA! Helping Up and Coming Leaders Accelerate! An innovative leadership and business development programme For ‘existing’ managers, ‘potential’ managers and ‘rising stars’! 7 ‘half day’ workshops spread over 5 months improve leadership, commercial and personal skills Comprehensive workbooks, assessments and toolkits Working with other leaders and managers online and website support! S t a r t s i n M a y !

UCLA! Helping Up and Coming Leaders Accelerate! An innovative leadership and business development programme

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Andy’s 3D Thoughts iDeas in 3 minutes in your inbox every Monday morning to help you Think in 3D !

“Vision without action is hallucination ” Thomas Edison

“Take the first step in faith. You do not have to see the whole staircase. Just take the first step” Martin Luther King

“Scare yourself, otherwise you’re not doing anything new ” Mary Murphy Hoye, Head Of R & D, Intel

“Don’t just stand there….. do something!” Dick Dastardly

So... what are you going to Do?

People can be divided into three groups

Those who make things happen Those who watch things happen Those who ask ‘what happened’?

MISSING YOU ALREADY! MISSING YOU ALREADY!

get my slides and other resources andyhanselmanconsulting andyhanselman