This post is adapted from the transcript of the DVD from a talk developed for VCPI’s Client Connection Technology Symposium. The audience included c-level, executives and technology specialists serving the senior living industry.
“S.T.E.P. into Success…Customer Devotion in 4 Steps!”
“Procrastination is the art of keeping up with yesterday.” ~Don Marquis
And, from Colin Powell: “If it ain’t broke, don’t fix it’ is the slogan of the complacent, the arrogant or the scared. It’s an excuse for inaction, a call to non-arms.”
So in talking about procrastination and complacency, I think of one’s personal health as well as one’s organizational health…What do I mean by that? Just like with our health, our organizations can have symptoms of illness. However, we might not take immediate action…
Maybe we decide we’ll get the colonoscopy or the mammogram next month, next quarter, or maybe even next year. Maybe we have a condition that we’ve grown used to having over time - high cholesterol, arthritis, asthma…
If I may, I’d like to share a personal example…
I have asthma - I’ve had it since I was a small child. Asthma treatment was not as sophisticated or effective back then. But since I didn’t have a frame of reference, I didn’t feel overly distressed to find out that I was only in the 30th percentile for lung volume…because I didn’t know what it felt like to be at 100%!
Years later, when I was prescribed a steroid inhaler, I was amazed at how well I could breathe, how much more energy I had, and how I could sleep through the night. It was like a miracle!
Over those years before the effective treatment, I wasn’t lamenting, researching, and taking action to solve my problem. Why? Because I had become complacent. I had no basis of comparison and no reason to think the situation would change.
Status Quo is not where we want to be - with our health or with our organizations. As summed up by Marshall Goldsmith, “What got you here won’t get you there.”
I know how hard it is to attract and select top people. I also know how hard it is to motivate and retain the best, all while struggling to keep ahead of customers’ high expectations.
But there are solutions - strategies to help you do just that. Now, if you are like my clients, and I am sure you are, then you are likely experiencing what is affecting the entire industry - and some of these “symptoms” might sound familiar:
As we go through these, think about how you, or how your management team, might rate each of these “symptoms” on a scale of 1 to 5. With 1 being “We don’t have this problem at all” to 5 being “We have a serious problem with this.” Here we go!
1. Unnecessary turnover
2. Low morale
3. Increased resident or family complaints
4. Bad attitudes and coworker personality conflicts
5. Gossip, nitpicking or backstabbing
6. Staff feels more suspicious than trusting of senior management
7. Call-ins and no-shows
8. Difficulty attracting top quality candidates into your applicant pool
9. Challenges in making hiring decisions of only top performers
10. Costly orientation and training
11. Low retention of top performers
12. Quality issues
13. Stress: work/life balance issues
14. Occupancy challenges
15. Productivity challenges
Well, how did you do? Any 4’s or 5’s? My clients find it is helpful to discover exactly what areas you feel need most to be addressed.
I know if you took the time to read this lengthy post, you get it and you care. You know that you provide a great and absolutely essential service to our seniors…and you know that doesn’t mean it’s easy.
In fact, according to Gallup only 26% of employees are “engaged” in their work at any given time.
Sadly, that leaves 74% who are either indifferent or “actively disengaged”.
Why do we care?
In the words of Lee Colan, Ph.D. as reported in the Assisted Living Executive by ALFA: “Actively disengaged employees are a “silent killer and a cancer growing under the skin of your team.”
These individuals react as a source of unfulfilled need and feverishly sabotage every possible accomplishment.
How much does this cost an organization: According to Gallup, disengaged employee’s costs 1/3 of their salary in lost productivity. That means you’re losing at least $6000 for every disengaged front line employee.
And just a little more bad news, research conducted by Corporate Executive Board as reported by CNBC reveals that 25% of your TOP performing employees are looking for other opportunities - this up from 10% last year. And 100% are in danger of being swept away by the competition - especially as the economy starts to perk up and people feel safer to make a move.
At this point, you might be wondering if there’s any good news. And there is!
Research from Gallup, the Coffman Organization and others confirm that highly engaged employees produce great outcomes:
- 38% higher customer loyalty scores
- 22% higher productivity
- 27% higher profits
- 39% higher retention
From my own professional experience, I can tell you that these outcomes are achievable - and you can even do better.
For example, one of my clients was really frustrated because trying to staff in a very small town can feel like you’ve simply run out of candidates. Nobody wants to just hire a “warm body” - but you also have to fill the shifts. After this facility got a handle on what there issues were, they were not complacent and they did not procrastinate! They took immediate action and were able to achieve targeted* retention of 85%, up from a meager 20%. *Retention of top performers, not just retention of any level performer.
This had a drastic effect on the level of happiness of the residents and level of confidence of the family members. Not to mention the bottom line…
Sustaining this level has taken effort, but they now enjoy a stellar reputation and are able to attract quality candidates.
Let me ask you, have you, or your managers, ever wondered:
- How do I get the most out of my staff?
- How do I make sure my residents and families are happy and devoted to me?
- How do I get to be the industry leader - or maintain my edge?
- How do I hold on to more of my revenue in a tight margin business?
- How do I make sure I don’t run into occupancy challenges?
- How do I attract private pay residents?
I imagine you have asked these questions, because the environment is getting more competitive and customer demands are higher than ever. I’m sure you’ve noticed the bar continuously rising when it comes getting the family to make their final placement decision as well as keeping them gloriously satisfied after the placement. The answer to your questions is to do it one step at time.
And in this article I will share with you a “skim the surface” view about the STEP System for creating Customer Devotion. Keep checking back for follow up articles or get in touch with me to learn more than we can cover in this one article.
Remember this equation= Devoted Customers = Profitability, Less Stress, Happy Staff
Devoted Customers are so important because 96% of dissatisfied customers will never tell you the real reason they left.
And in the “good ol’ days” they might tell 10 or 12 people why they are unhappy. Today, that can be thousands, thanks to the internet.
And the most compelling reason….it costs 10 times MORE to replace a customer than it does to keep them.
The “STEP” system of Customer Devotion is an acronym for the steps.
1. S is for Service
2. T is for Trust
3. E is for Education
4. P is for People
Customer Devotion is more than policy and procedure - it takes creating a positive emotion in connection with you - with your product/service. How do you create a positive emotional connection?
It comes from people. People create the emotion. In order to make your customers “fall in love” with you, you have to create an experience that they want to replicate, that they want others to experience, that they feel sure nobody else can provide.
Let’s look a little more closely at the STEP System:
Service : What is it and Why you need to know what to do when things go wrong
Trust: Creating a Culture of Trust means having both “Character” and “Competence”
Education: People need to know the “Why” behind the “How”
People: The Key to it All: Understanding the driving force behind Customer Devotion
To stay within the scope of this one article, we’re going to have to skip past the first three steps, Service, Trust and Education because I want to make sure you get the information you need on the critically important step, People. Only highly engaged and committed employees will have the ability to create or evoke positive emotions in your customers. Of course, they need training - but you can’t train engagement, you can’t train caring, and you can’t train the desire to WOW the resident and family.
It has to come from within. So, how do we do that?
There are six essential KEYS to the PEOPLE part of the STEP System:
1. Select
2. Engage
3. Communicate
4. Act
5. Recognize
6. Focus on Outcomes
1. Let’s start with Selection (hiring) of the best: Building the Foundation
Once you can start to attract top performers, it gets a whole lot easier to hire the best. Highly engaged teams create your internal marketing system. You will soon find that your reputation in the community sets you apart from the others. Lesser-qualified candidates will assume they will not be hired by you. Highly qualified candidates will seek you out. Here’s your “sweet spot”!
Evaluate the ease of entry for the applicant.
- Do you have on online application?
- Do you have an email responder so they know they’re not lost in cyberspace? (Remember, we’re also marketing ourselves to those top candidates!)
Evaluate how you select. Do you use any type of skills assessment?
- How about a personality or character-based assessment?
- Are you evaluating based on role and core competencies?
- Are you struggling with incomplete or useless reference checks?
Here’s a tip: Implement the TORC system: Threat of Reference Check! or TORC!
How is it different?
Set the stage at the time of the phone interview. Let the candidate know that THEY will need to set up phone calls for you with the references you wish to speak with - should you be ready of offer the job.
This should include coworkers, supervisors, direct reports and past residents or family members if at all possible. This process will eliminate the frustrating non-answers that one usually gets - simply verifying dates of employment is not that useful!
The biggest challenge to being successful with TORC is the follow through…it’s easy to think, “It takes to much time”. Let me ask you, how much time and money is currently wasted on mis-hires?
How many times do you hear “They aren’t at all on the job like they seemed like they were in the interview”? It’s a proven Top Grading method and you just might want to try TORC!
Here’s another tip:
Best hiring practices include measuring the percentage of hires whose performance would be described as an “A” player once on board. I don’t have to tell you that if you are hiring poor performers, it is costing you hugely. Make a note to yourself now if you are not currently measuring and managing your outcomes in this area. It’s a huge area of opportunity that only about 2% my clients were leveraging.
2. Create an Engaged Workforce: Retain the best.
Now that you’ve built the foundation and hired the best - you’ve got to have your “house in order” so that top talent will stay and thrive in the environment. Toxic environments will quickly distract or destroy the shining star. Maybe they’ll leave - or worse, they’ll stay and be unproductive and disengaged.
How do we get there? First, we measure those things that are truly important in achieving results through a Survey.
Why survey?
We need a survey because it is an instrument or a way to measure employee engagement. This is essential because it is a leading indicator about the value of our organization going forward.
The survey is like a blood pressure cuff. One cannot manage their high blood pressure simply by taking their reading multiple times a day. Nor will one know if their diet, exercise and medication management is effective if they don’t check back in and measure the results.
So, the survey is like the blood pressure cuff and everything after that is the physician and the patient creating a plan to achieve the intended positive results.
I can tell you with complete certainty and honesty that most professionals at the c-level or executive level of the organization OVERestimate the overall level of morale, productivity and commitment of the workforce. Human nature dictates that things that don’t impact us personally on a day-to-day basis often are overlooked or not made a priority.
Now, when I talk to the managers, they are feeling the pain and they would love a solution. They’ve often times become complacent - even apathetic - feeling they must just accept this as status quo.
Others have an idea where they’d like to see the team go, but they procrastinate in getting there. They need an accountability partner, a mentor a coach to help them achieve their outcomes.
The survey is a great first step - it’s the blood pressure cuff. Now we need the doctor and the patient to work together to develop a management plan!
3. Communication: Communicate the results clearly, simply and in a positive manner.
Don’t just give the information or the scorecard - give the tools. Communication builds trust and credibility and reduces turnover.
A study by Mercer Consulting revealed that employees who felt that their organization “does a good job of communicating with employees about matters that affect them” were three times LESS likely to leave.
This is an area I see organizations skipping or doing poorly. To get real results, you must provide the support each manager requires to become successful. Involve everyone!
For example, during an all staff in-service where I discussed the results of the survey with the team and solicited their input for changes they’d like to see, a CNA spoke out and said that the fact that the company would give a survey, communicate the results, and ask for input from the actual workers all ready made her feel better about her job and about the company. She said, “Give me another survey to fill out because now I want to say that I strongly agree that my opinions count!”
4. Take Action! Knowing isn’t worth much if there’s no doing.
Action is essential to achieving results
Lack of action is the biggest downfall in employee engagement surveys and initiatives. Again, the survey isn’t the management plan; it’s only the blood pressure cuff!
Of course, the survey will define areas of strength and weakness organizationally. And, it’s crucially important that you define areas of strength and weakness for each individual manager! This is where the real variance occurs. Sure, it takes more time and more effort and more follow through - but it’s the key to achieving real results.
For example, one of my CCRC clients used to survey their employees through a different organization. And, quite frankly, they weren’t too impressed. Nothing ever changed as a result of the survey and it seemed like a corporate mandate or a marketing initiative - and a waste of time.
Fortunately, we went ahead and surveyed the employees, and we did all these other steps that often are not part of the strategy. Suddenly, the process wasn’t about checking something off your to-do list, or submitting something to HR. Instead, real positive outcomes came about.
The survey results revealed that the Assisted Living manager was not doing performance reviews, did not have staff adequately trained and had restructured assignments unfairly. These things red flagged us for further discovery. As it turned out, there were even more issues. The administrator admitted she’d been on the fence with this employee for four months, but really wanted to give her a fair chance. The results helped validate for her that her concerns with this under-performing employee were valid.
She replaced that manager and, as a result, the staff morale improved such that turnover was reduced from 100% to 75% within 3 months. And that’s not all: We found staffing inefficiencies and the restructure had immediate impact on employee engagement, saving them from losing a valued dining manager. This one client estimates saving over ½ a million dollars - and we’re not done yet
5. Recognize and Follow Up.
If your organization is doing a great job of something, sing it from the rooftop! If a manager has demonstrated excellence with their team - have a party! Make sure to make a HUGE deal of everything that is right. It makes it a lot easier to hear the not-so-good news when you feel recognized and valued for what’s working.
- Reward improvements. Not everything and everybody will be perfect.
Improvements are valuable, exciting and measurable. So be sure to recognize the outcomes and efforts of those who have heard where they can improve - and they chose to improve…and not get defensive, stay complacent or procrastinate.
- Have accountabilities for inaction and lack of positive results.
Not everyone will be able to meet your expectations. Some might be miscast in their roles. Some might be continue to sit on the fence and wait for this new thing to blow over or die down. Others will play the blame game. And, a few will think nothing is wrong in the first place.
True sustainable success, and the ability to build a culture of care, a culture of service, of trust, of engagement, starts at the top.
Don’t procrastinate and don’t become complacent! If you keep doing what you’ve always been doing yet expect a different result - you’re going to end up very disappointed!
6. Focus on outcomes not process: Keep your sights set on the goal and not on the process.
Our destination is where we start. Our destination is to create a dynamic workplace that people will be attracted to, where we will be able to retain the most talented and productive people and have a positive impact upon the residents and families we serve. The number one predictor of customer engagement is employee retention…and the number one predictor of employee retention is employee engagement…So we can say that…Employee Engagement = Customer Engagement
In summary, we’ve talked in depth about the last step of the STEP system, People, and the six KEYS of People are:
1. Select
2. Engage
3. Communicate
4. Act
5. Recognize
6. Focus on Outcomes
To wrap it up, I think Charlie Bell, the former CEO of McDonald’s makes his point when he said:
“The biggest threat to McDonald’s lies within - and that is us as a company becoming complacent. There are a lot of companies that get fat, dumb and happy and take their eyes off the ball and forget about providing service to customers.”
The first time I gave this presentation, a member of the audience - a CEO for a national chain of nursing homes, said, “Isn’t it ironic that McDonalds makes its customers fat, dumb and happy, too!”
Priceless!
As stated previously…Just like with our health, our organizations can have symptoms of illness. Those who achieve sustainable success WILL take immediate action.
Stay tuned for future articles, or contact me, to find out more information on the preceding three steps of the S.T.E.P. System (Service, Trust and Education).
Also, if you’d like more information on this or any other program, or for a complimentary strategy session, please call me at 608-279-0691 or 877-HUMAN10 to address your particular challenges.
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