Start with WHY

When we started FiveFour in early 2018, the vision of the founders was to teach everyone what had made our individual businesses successful: a remarkable customer experience.

But what we discovered is that, with our customers, most needed a step before that. They needed to start with WHY.

I was reminded of this while listening to Simon Sinek’s book, Start with Why: How Great Leaders Inspire Everyone to Take Action. Sinek writes:

It all starts with clarity. You have to know why you do what you do. If people don’t buy what you do, the buy why you do it, so it follows that if you don’t know why you do what you do, how will anyone else?  If the leader of an organization can’t clearly articulate why they organization exists in terms beyond it’s products or services, then how does he expect the employees to know why to come to work?

If a team doesn’t know WHY it’s important to have a great experience for their customers, teaching them WHAT to do has far less of an impact.

That’s why the Define the Culture is the first of the four steps in my 4D Transformation Method and Design the Experience is the second. We have to start with WHY.

Sinek perfectly describes the type of business we most frequently deal with:

When organizations are small, WHAT they do and WHY they do it are in close parallel. Born out of the personality of the founder, it is relatively easy for early employees to “get it.“ Clarity of why is understood because the source of passion is near – in fact it’s physically comes to work every day. In most small businesses all the employees are all crammed into the same room and socialize together. Simply being around a charismatic founder allows that feeling of being a part of something special to flourish.

But, as Sinek writes, For companies of any size, success is the greatest challenge. When businesses grow and employees are no longer around the leader all day, every day, the WHY can get fuzzy and disengagement creeps in.

The answer is almost always to rearticulate the WHY. Sinek writes:

Finding WHY is a process of discovery, not invention…the WHY from every individual or organization comes from the past. It is born out of the upbringing or experience of an individual or small group.

And in our experience, that rediscovered WHY always includes something that was done for the customer, which perfectly sets the stage for focusing on customer experience.

How’s the WHY of your business? Has it gotten a little fuzzy? Take my assessment to find out and then chat with me about how to rediscover your WHY.

“We have three cultures”

I was talking to the CEO of a bank with more than a dozen branches when he said, “We don’t have a culture at our bank. We have three cultures and which one you encounter depends on which branch you’re at.”

What’s more, the CEO said, “You can tell when you’re in a branch that doesn’t have a healthy culture. You can just feel it.”

This is more common than you might think. It’s easy to maintain a cohesive culture when you’re a small team at a single location. But growth can change all of that in a hurry, especially when growth leads to multiple locations.

That geographic distance doesn’t make it impossible to maintain a healthy culture – far from it. But it does make it more challenging.

There are three things that CEO could have done to create a consistent, healthy culture. You can do them to.

  1. Be really clear about what you want your culture to be. What are you trying to accomplish? What are the expected behaviors? What is out-of-bounds? Defining your culture is the first step.
  2. Have a consistent communication plan. The leader must talk about the culture until they’re sick of talking about it…and then talk about it some more. They must be what Pat Lencioni calls the CRO: Chief Reminding Officer.
  3. Get regular feedback from the front lines. Your communication on culture (or anything for that matter) can’t be one way.

Without taking these steps, you’re leaving the culture up to each individual manager of each individual location (or team, division, etc.) and multiple cultures is the inevitable outcome.

That’s one of the issues I help owner-operators solve in the first step of my 4D Transformation Method, Define the Culture. I explain it in this video:

Have you left your culture up to chance – or to each employee’s interpretation? Can you feel an unhealthy culture in part’s of your organization?

The first step for you might be just getting a handle on the state of your culture. Let me help you with our free assessment. Take a few minutes, answer a few questions and then jump on a call with me to strategize ways to improve your culture.

Do it before it doesn’t feel good walking into one of your offices.

Aligning the two kinds of Purpose

One of the best books I’ve ever read on motivation was Drive by Daniel Pink, where he examines the science around the three pillars of motivation: autonomy, mastery and purpose.

Purpose is what I dig in on with my clients in the first phase of my 4D Transformation Method: Define the Culture. Pink makes a helpful distinction between the two different kinds of purpose.

The first one, which he calls “Big P Purpose” is about the difference you make in the world. It’s solving world hunger, revolutionizing technology, things like that.

The second one – Small P Purpose – is about contribution. It’s knowing that the work we do makes a difference for someone.

But you don’t have to choose between the two kinds of purpose – they are most powerful when aligned.

What does that look like? In this video, I give two examples: a janitor and a bricklayer.

Did you watch it? You might be thinking, that’s great for NASA and the church, but what about my business? Can connection to purpose really drive results in my business?

Meet Pat Swyter, the owner-operator of Four Way Insulation. He said that working with FiveFour to define his culture was part of the reason he had a 20% revenue increase after several years without growth:

Do you feel as if the people in your business are lacking either kind of purpose? To find out, take this short assessment and then get a strategy session with me where you’ll get clarity and focus on your purpose.

It could be the most important strategy session you’ve ever had.

Does this vision statement mean anything to anyone else?

That was the question asked by the leadership team of one of my clients this week as we were discussing their vision.

They just had the best year in the company’s 30-year history, but they’re hungry for more. Why? Because they have a big vision that hasn’t yet been fully realized.

But they’re not sure if their current vision statement accurately communicates that big vision. They’re not sure if it’s recruiting anyone to their cause.

And that, after all, is the purpose of a vision statement. Because the only vision that doesn’t require the help of others to achieve it is a small one.

A good vision statement must memorable and motivational if its going to serve its function as a memory-enhancing device that points to your broader vision.

That’s why their question was such a good one. That’s exactly the question that you should ask about your vision statement. But then, be careful how you answer. You might be tempted to go with your gut instinct (I think it connects), or personal preference (It means something to me!), but this is too important to leave to either method. You must ask the right questions of the right people to know if it connects.

Only then will you know for certain whether you need to craft something more memorable and motivational to point to your vision.

Why spend all of this time on vision statements? On defining the culture of your business? You already have monthly revenue targets…quarterly rocks…wildly important goals. Why not just focus on those? I talk about that – and why defining the culture is the first step in my 4D Transformation Method in this video:

Does your vision mean anything to anyone else? Are you living it? Instead of guessing, would you like to assess the culture of your business? Just take our assessment and then book a free strategy session with me. It’s the first step to get your business growing from the inside out.

Asking (and answering) the Ultimate Question

In the Ultimate Question, Fred Reichheld tells the story of Intuit, describing a problem that FiveFour regularly helps businesses solve. Co-founder Scott Cook had built a successful company on the mission “To make the customer feel so good about the product they’ll go and tell five friends to buy it.”

When the company was in the start-up phase, the employees learned how to fulfill that mission by observing Cook’s passion for taking care of the customer. “They could all hear him working the service phones himself, talking to customers. They could see him taking part in Intuit’s famous “follow-me-home” program, where employees asked customers if they could watch them set up the software in order to note any problems.”

But growth in the number of employees and locations made learning by following the leader impossible and “Cook was hearing more complaints [from customers] than in the past. Some market-share numbers were slipping. For lack of a good system of measurement and for the lack of the accountability that accurate measurement creates – the company seemed to be losing sight of exactly what had made it great: its relationships with its customers.”

To solve the problem, Cook started measuring customer loyalty through our favorite measurement tool: the Net Promoter Score (NPS), which asks the Ultimate Question: “How likely is it that you would recommend Company X to a friend or colleague?” Respondents score their likelihood on a scale from 1-10, with those answering 9-10 classified as promoters, 7 or 8 passives and 6 or less detractors. Your NPS is calculated by subtracting the percentage of detractors from your percentage of supporters. A positive number means you have more supporters than detractors.

While measurement is an important first step, measurement alone won’t solve the problem that Cook faced at Intuit. The challenge that leaders of growing companies face is how to scale the culture and customer experience that led to the growth to begin with.

That’s what FiveFour calls the battle for better business. We help companies capture that original vision for their culture and how the customer is cared for. But the next step is maybe the most important and what really differentiates FiveFour: we create a customized, ongoing system of learning and development that, over time, transforms the business through increased employee engagement and continuous learning.

Do you resonate with that description of Intuit? Are you noticing more customer complaints and employee disengagement? Take our assessment of your customer experience and we’ll give you some tips you can use to improve your employee and customer experience.

Want to get started measuring your NPS and eNPS (Employee Net Promoter Score)? Just email me and I will give you access to our free, online course showing you how to implement both.

Intuit was profitable and growing at the time they addressed these flaws in their employee and customer experience. But they saw that those flaws were starting to impact their growth. What happened after they addressed them? They now have an NPS of 45 and a market cap of $82 billion, which isn’t bad.

What I read in April

Charlie “Tremendous” Jones once said, five years from now, you will be the same person you are today except for two things: “the people you meet and the books you read.” Well, thanks to COVID-19, I didn’t meet too many new people last month. But, also thanks to COVID-19, I had a lot of extra time to read.

And, as promised, I’m sharing the best of what I read last month.

The Invisible Leader

According to author Zach Mercurio, most organizations are not tapping into their most powerful leader. That leader isn’t in the C-suite – in fact, it’s not a person at all. That leader is a compelling, authentic purpose for the organization – an Invisible Leader. The reason that this most powerful leader is untapped is that organizations are primarily focused on results: grades for students, quotas or other KPIs in business, etc. At best, these provide short-term motivational pushes – cramming to get a grade on a test, a flurry of activity at the end of the month to achieve a sales quota – but they don’t last. It’s authentic purpose, which Mercurio defines as “a person or organization’s genuine and unique reason for existence that is useful to others in society,” that acts as the ultimate differentiator and motivator.

Marketing Rebellion

We are in the midst of a third marketing rebellion, where consumers are rebelling (for perhaps the final time) against advertising. The first rebellion – in the early twentieth century – brought an end to the lies of the advertising that sold snake-oil and other dubious products. The second came with the internet, bringing an end to the secrets that advertisers had depended on (think MTV VJ turned podcaster Adam Curry saying, “There are no secrets, only information you don’t yet have”). The third marketing rebellion that we’re in the midst of is bringing an end to control. In this new era, two-thirds of a consumer’s purchasing decision involves “human-driven marketing activities like internet reviews, social media conversations, and word-of-mouth recommendations from friends, family, and online experts.” Author Mark Schaefer points out: two-thirds of your marketing is not your marketing. Then, he asks: So, what do you do? You forge human connections with your customers. Thus the tagline of his book: “the most human company wins.” At FiveFour, we say that your marketing is your customer experience, and most of Schaefer’s examples of human-centered marketing are what we would call customer experience. Consumers can see through lies, there are no secrets and businesses are no longer in control of their marketing. They want a human connection with the companies that want their business. Consumers are demanding remarkable customer experiences. And, as previous rebellions have shown, in the end, the consumer always wins.

Living Life Backward

I can’t remember the first personal development session I sat in that had me write my obituary, but I know I’ve done it several times. The intent of the exercise is to get you – as Stephen Covey has coined it – begin with the end in mind. According to David Gibson, the preacher who wrote the book of Ecclesiastes did that same thing over 2,000 years ago. Life is short – a mere breath. The world is confusing. We have far less control over our circumstances than we would like. The only certainty is our eventual death and the likelihood that none of our accomplishments will survive us. By confronting us with these realities, the Old Testament book asks how we should live in light of them, right now. The answer it provides is to stop trying to escape the limitations of life. Stop treating your life as a problem to be solved. Stop worshiping and depending on stuff. Be content with your circumstances. Be grateful for the rhythms of life, for they are a gift from God. “Gift, not gain, is your new motto.” Be generous with your time and possessions. Pay attention to the world around you rather than the distractions of life. “Eat, drink, and be merry, not because that’s all there is, but because that’s what there is.” What can help us do this? The reality of death. “Preparing to die means thinking about how to live.”

Overcoming the Five Dysfunctions of a Team

Patrick Lencioni has long been one of my favorite business authors and perhaps the best there is on organizational health. His style of writing easily-accessible business fables that teach timeless truths has led to millions of book sales. By far the most famous of those fables is The Five Dysfunctions of a Team: A Leadership Fable and those dysfunctions are worth listing: The first is an absence of trust among team members. Essentially, this stems from their unwillingness to be vulnerable within the group. A failure to build trust sets the tone for the second dysfunction, which is a fear of conflict. Teams that lack trust are incapable of engaging in unfiltered and passionate debate of ideas. That ensures the third dysfunction of a team: lack of commitment. Without having aired their opinions in the course of passionate and open debate, team members rarely, if ever, buy in and commit to decisions, leading an avoidance of accountability, the fourth dysfunction. Without committing to a clear plan of action, people often hesitate to hold their peers accountable, which creates an environment where the fifth dysfunction can thrive: inattention to results. If none of those dysfunctions sound familiar, you’re either not on a team or you are in a state of blissful ignorance. Every team suffers from at least one of these dysfunctions and could benefit from reading both books. While the fable clearly lays out the impact of these dysfunctions, it’s this Field Guide that shows you how to overcome them. And isn’t that the whole point?

the path between us

There is no shortage of personality and behavioral tests: Myers-Briggs, DISC, Motivators, the Five-Factor Model and an endless number of lesser-known models. In The Path Between Us, Suzanne Stabile introduces the Enneagram, an ancient personality typing system that leads to self-discovery. From the Greek words ennéa, meaning “nine” and grámma, meaning something “written” or “drawn” the nine-pointed Enneagram is a typology of nine interconnected personality types, each with distinct strategies for relating to the self, others and the world. It has become commonly used in the Christian community as an aid to spiritual formation. I first heard about it on the podcast of Donald Miller, read The Road Back to You: An Enneagram Journey to Self-Discovery and took the Enneagram test. It was fairly easy to identify myself and it taught me some important lessons about how I engaged with the world. Almost simultaneously, my wife was engaging the Enneagram in a study with her friends, so we decided to listen to The Path Between Us during a weekend getaway and it gave us valuable ways to better interact with each other. In my work, I lead teams through the DISC and the most valuable learning is always through their interactions with each other. The Enneagram is the same. It’s one thing to discover my type and learn more about myself. But the real insight comes from how I interact with others. That’s the insight that comes from The Path Between Us.

What You Do is Who You Are

Ben Horowitz is at pains in this book to explode the myth that you can establish culture simply by writing it down. That’s an important first step. You have to first define what you want. But it’s not enough. It’s not even enough to model the culture you want, even though that’s incredibly important. You must make sure that the values you want in your business are actionable, be crystal clear what those actions are, and constantly reinforce them. Horowitz goes back in history to draw lessons from obscure cultures like Haitian slaves, prison gangs and the samurai to show his main point: “Culturally, what you believe means nearly nothing. What you do is who you are.” A good read for those who need to define the culture of their organizations.

Jack’s Life: The Story of C.S. Lewis

This biography of C.S. Lewis was written by his stepson, Douglas Gresham. The book both benefits and suffers from that fact. The benefit was in the first-person account. The drawback was his tendency to cast Lewis in the best possible light, no matter what the circumstance. For example, the falling out between Lewis and J.R.R. Tolkien doesn’t even register. Ultimately, the book would have been improved had it included more first-person narrative and less defense of Lewis. However, given the relationship between the two and the fact that Gresham is no author, it’s understandable and the book is worth reading by fans of Lewis.

More

I also read Nine Lies About Work by Marcus Buckingham. Many of the lies recast familiar learnings from his earlier books, but my favorite of the lies was #3: the best companies cascade goals. Not true, says Buckingham. The best companies cascade meaning. Crushing It! By Gary Vaynerchuck was a good reminder that, no matter how good you or your idea, success requires total commitment. Due to its role in bringing about the fall of the Soviet Union, One Day in the Life of Ivan Denisovich by Alexandr Solzhenitsyn was a compelling read. And I blogged about Finding Flow by Mihaly Csikszentmihalyi here and here. Finally, I read Lancelot by Walker Percy, which had some profound points while being profoundly weird.

What are you reading? What should I read this month?