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Updated September 2007




                         Engaging Employees
                         to Deliver a Branded
                         Customer Experience

                         A process that requires strategic planning,
                         dialogue and cross-functional collaboration




33 Bloor Street East
Suite 1400
Toronto Canada M4W 3H1
Tel 416 366 7100
Fax 416 366 7711

www.interbrand.com
2
                             Engaging Employees to Deliver
                             a Branded Customer Experience



Carolyn Ray                  Introduction                                           It begins the moment you start thinking about
Senior Director,             When we think about what makes a brand great,          redefining what your organization stands for,
Brand Engagement
                             we often define it through our own experiences.        and needs to be sustained over the long term.
carolyn.ray@interbrand.com
                             And while we may experience brands through a           It means taking steps to engage leaders and key
                             logo, advertising or websites, the most critical       influencers to act as role models, clearly defining
                             touchpoints are people.                                brand behaviors, creating relevant communications,
                                                                                    investing in function-specific training materials and
                             When the people in an organization understand          aligning the organization around the brand
                             their brand – who they are, and what they stand        (and ultimately around the customer).
                             for – they create truly memorable experiences
                             that ultimately drive loyalty and enhance business     In this paper, we’ll explore five ways that organi-
                             performance. In this sense, the corporate brand        zations can engage employees to deliver on the
                             provides a powerful engine to align employee           customer experience. While this is not intended to
                             behavior with the brand and create a differentiated    be comprehensive, it should provide an overview
                             customer experience.                                   of the complexity of employee engagement and
                                                                                    how it can be integrated holistically into a branding
                             However, creating a unique customer experience         project.
                             is not as simple as it sounds. Employees do not
                             suddenly snap into action once they’ve read a
                             brand booklet or watched a movie at a company
                             event. Engaging employees to deliver on the
                             brand is a process that requires strategic planning,
                             dialogue and cross-functional collaboration.
3
          Engaging Employees to Deliver a Branded Customer Experience




          The connection between customer loyalty and                       For example, Gallup recently found that more
          employee engagement began over 20 years ago                       engaged workplaces are:
          when James Heskett and his colleagues at Harvard
          Business School created the Service Profit Chain.                 •   50% more likely to have low staff turnover
                                                                            •   56% more likely to have above-average
          The links in the Service Profit model are as follows:                 customer loyalty
          Profit and growth are stimulated primarily by cus-                •   38% more likely to have above-average
          tomer loyalty. Loyalty is a direct result of customer                 productivity
          satisfaction. Satisfaction is largely influenced by the           •   27% more likely to report above-average
          value of services provided to customers. Value is                     profitability.
          created by satisfied, loyal and productive employ-
          ees. Employee satisfaction, in turn, results primarily            Another recent US study validates these measure-
          from high-quality support services and policies                   ments. It has been shown that the financial
          that enable employees to deliver an experience to                 performance of organizations is significantly cor-
          customers that is promised by their brand.                        related with employee engagement. It was reported
          This groundbreaking work continues to be validated                that, for the typical S&P 500 business, a noticeable
          by new research.                                                  improvement in employee engagement was associ-
                                                                            ated with a $95 million increase in revenue. 1

                                                                            If the links between employee engagement and
                                                                            customer experience are so obvious, why don’t
                                                                            we think about it more when we’re beginning a
                                                                            branding project? And what does it really mean?
                                                                            When, where, and how do we begin engaging
                                                                            employees?
       Employee satisfaction

        Employee loyalty
                                                        Employee productivity


                                                                 Quality of
                                                                 customer experience

Customer satisfaction


                                                       Customer loyalty

                                                   Revenue/profit growth



          The Service Profit Chain
          Heskett, Sasser, Schlesinger/Harvard Business School


                                                                            1 Management Issues, February 2007
Engaging Employees to Deliver a Branded Customer Experience                                                                      4




                          Five steps to success                                                    Step 2: Involve the right employees as completely
                          Through our work with global clients, we advo-                                   as possible in the process
                          cate the following five steps to develop employee
                          engagement in times of change.                                           Often, organizations fail at employee engagement
                                                                                                   simply because they don’t segment their internal
                          Step 1: Engage leadership and managers as role                           audiences with the same discernment as their
                                  models for behavior                                              external audiences. At Interbrand, we work closely
                                                                                                   with staff in communications and human resources
                          Change starts at the top. As we know intuitively,                        (HR) to identify the most influential employees,
                          it is essential to secure buy-in from the CEO.                           by level and function and then specifically by name.
                          We also know that the leadership team must                               Since we can’t always communicate everything to
                          be aligned to be credible. As we often learn in                          everyone, we want to set a strategy that empowers
                          employee interviews, any misalignment at upper                           credible, influential employees to cascade informa-
                          levels is readily obvious to employees. If the                           tion to others, and to provide these influencers
                          leadership team is actively engaged throughout                           with the tools and training they need to deliver this
                          the process, they are much more likely to become                         information effectively.
                          role models and frequent communicators of the
                          brand message internally. Managers are seen as
                          role models for behavior, and employees will not
                          change unless their manager changes. Senior
                          managers must understand what they need to do
                                                                                                                           Management
                          differently and act on this quickly. They must be
                          encouraged to live these behavioral changes, and
                          be rewarded and recognized for their efforts.                                                      Brand Idea

The corporate brand
provides a powerful
                                                                                                                         Leadership Team
engine for aligning
employee behavior with      Brand Platform
                                               Employee Behaviors
                                                                        Customer Experience
                                                     in Action
the core purpose and        Clear, credible   Internal alignment for   Consistent expectations
promise of the organi-       and relevant       external execution     and positive associations                         Senior Executives
zation to help create a
differentiated customer
experience.                                                                                                              Middle Managers

                                                                                                   Middle managers are a critical
                                                                                                   link to employee engagement.
Engaging Employees to Deliver a Branded Customer Experience                                                                   5




                              Step 3: Develop a communications strategy                       recognition. Align policy and practices around the
                                      and plan                                                brand, and clearly define the criteria and behav-
                                                                                              ioral expectations for areas such as compensation
                              We know that clear, consistent communication                    and recruitment to reflect your commitment to the
                              is essential to the success of any project. But it’s            brand. Then, put a process in place to measure,
                              surprising how many organizations move right into               reward and recognize the right actions and behav-
                              tactical execution without creating a comprehen-                iors – because what gets measured, gets done.
                              sive communication strategy that keeps employees
                              informed and excited about the project and what it              Step 5: Provide the right tools, training and
                              means to them. Decide early in the process what                         resources for employees
                              needs to be communicated, and to whom, and what
                              is still ‘work in progress.’ Develop a plan to ensure           Throughout the branding process, it’s crucial
                              ongoing communication, taking into account mes-                 to provide information and training that builds
                              sages that address employees’ needs and answer                  employee understanding, trust and confidence in
                              the question, “What’s in it for me?”                            the changes that will be forthcoming. Key ‘influenc-
                                                                                              ers’ and ‘change agents’ need training to empower
Develop a plan to ensure                                                                      them to engage others. Creating a long-term
clear and consistent                                                         Committed        plan to evolve and institutionalize these tools and
communication, taking                                                                         resources is imperative to sustaining momentum.
into account messages                                              Excited                    We recommend that brand training be integrated
that address employees’                                                                       into ongoing sessions for brand ambassadors,
                                                Well informed
needs and answer the                                                                          leadership teams, sales or customer-facing employ-
question, “What’s in it for        Brand activation                                           ees, communications and human resources.
me?”                                                                  Uninformed
                              Interested

                                                                Disengaged
       Change is announced
                                                                                 Cynical
                                                                                                               Public
                                                                                                                          Advertising
                                                                                                              relations

                                                                                                Promotional
                              Step 4: Align the organization around                                                                     Behavior
                                                                                                  material
                                      the brand

                              Involving HR and communication teams in                      Environments                                        Name
                              a branding effort is absolutely fundamental                                          Brand
                              to brand alignment. To ensure credibility,                     Corporate
                              organizations must redesign HR processes                                                                     Identity /logo
                                                                                           communications
                              and procedures to support any changes in
                              values and behaviors. This includes areas
                              such as recruitment, orientation, training,                        Investor                                People
                                                                                                 relations
                              promotion, compensation and reward and
                                                                                                                Web       Products
                                                                                                              presence    & support
Engaging Employees to Deliver a Branded Customer Experience   6




Conclusion
Connecting employees to the customer
experience and consistently informing them
about their vital role as part of a trusted team are
both critical to branding success. By following
a systematic, strategic process, you can move
your employees from awareness of the brand to
acceptance of the brand attributes and adoption
of corresponding behaviors. The rewards can
be sustained success in delivering the promised
customer experience, leading to loyalty and
security of earnings.
7




Founded in 1974, Interbrand serves the world with over       identity, corporate identity, packaging design, retail
30 offices in over 20 countries. Working in partnership      design, communications, brand engagement and digital
with our clients we combine rigorous strategy and analysis   branding tools.
with world-class design and creativity.
                                                             We enable our clients to achieve greater success by
We recognize the importance of brand in this increas-        helping them to create and manage brand value.
ingly competitive business environment and tailor our
services to client needs. Our services include brand         Visit www.interbrand.com and www.brandchannel.com
analytics, brand valuation, strategy, naming and verbal      for the latest thinking on brands.

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Engaging Employees to Deliver a Branded Customer Experience

  • 1. Updated September 2007 Engaging Employees to Deliver a Branded Customer Experience A process that requires strategic planning, dialogue and cross-functional collaboration 33 Bloor Street East Suite 1400 Toronto Canada M4W 3H1 Tel 416 366 7100 Fax 416 366 7711 www.interbrand.com
  • 2. 2 Engaging Employees to Deliver a Branded Customer Experience Carolyn Ray Introduction It begins the moment you start thinking about Senior Director, When we think about what makes a brand great, redefining what your organization stands for, Brand Engagement we often define it through our own experiences. and needs to be sustained over the long term. carolyn.ray@interbrand.com And while we may experience brands through a It means taking steps to engage leaders and key logo, advertising or websites, the most critical influencers to act as role models, clearly defining touchpoints are people. brand behaviors, creating relevant communications, investing in function-specific training materials and When the people in an organization understand aligning the organization around the brand their brand – who they are, and what they stand (and ultimately around the customer). for – they create truly memorable experiences that ultimately drive loyalty and enhance business In this paper, we’ll explore five ways that organi- performance. In this sense, the corporate brand zations can engage employees to deliver on the provides a powerful engine to align employee customer experience. While this is not intended to behavior with the brand and create a differentiated be comprehensive, it should provide an overview customer experience. of the complexity of employee engagement and how it can be integrated holistically into a branding However, creating a unique customer experience project. is not as simple as it sounds. Employees do not suddenly snap into action once they’ve read a brand booklet or watched a movie at a company event. Engaging employees to deliver on the brand is a process that requires strategic planning, dialogue and cross-functional collaboration.
  • 3. 3 Engaging Employees to Deliver a Branded Customer Experience The connection between customer loyalty and For example, Gallup recently found that more employee engagement began over 20 years ago engaged workplaces are: when James Heskett and his colleagues at Harvard Business School created the Service Profit Chain. • 50% more likely to have low staff turnover • 56% more likely to have above-average The links in the Service Profit model are as follows: customer loyalty Profit and growth are stimulated primarily by cus- • 38% more likely to have above-average tomer loyalty. Loyalty is a direct result of customer productivity satisfaction. Satisfaction is largely influenced by the • 27% more likely to report above-average value of services provided to customers. Value is profitability. created by satisfied, loyal and productive employ- ees. Employee satisfaction, in turn, results primarily Another recent US study validates these measure- from high-quality support services and policies ments. It has been shown that the financial that enable employees to deliver an experience to performance of organizations is significantly cor- customers that is promised by their brand. related with employee engagement. It was reported This groundbreaking work continues to be validated that, for the typical S&P 500 business, a noticeable by new research. improvement in employee engagement was associ- ated with a $95 million increase in revenue. 1 If the links between employee engagement and customer experience are so obvious, why don’t we think about it more when we’re beginning a branding project? And what does it really mean? When, where, and how do we begin engaging employees? Employee satisfaction Employee loyalty Employee productivity Quality of customer experience Customer satisfaction Customer loyalty Revenue/profit growth The Service Profit Chain Heskett, Sasser, Schlesinger/Harvard Business School 1 Management Issues, February 2007
  • 4. Engaging Employees to Deliver a Branded Customer Experience 4 Five steps to success Step 2: Involve the right employees as completely Through our work with global clients, we advo- as possible in the process cate the following five steps to develop employee engagement in times of change. Often, organizations fail at employee engagement simply because they don’t segment their internal Step 1: Engage leadership and managers as role audiences with the same discernment as their models for behavior external audiences. At Interbrand, we work closely with staff in communications and human resources Change starts at the top. As we know intuitively, (HR) to identify the most influential employees, it is essential to secure buy-in from the CEO. by level and function and then specifically by name. We also know that the leadership team must Since we can’t always communicate everything to be aligned to be credible. As we often learn in everyone, we want to set a strategy that empowers employee interviews, any misalignment at upper credible, influential employees to cascade informa- levels is readily obvious to employees. If the tion to others, and to provide these influencers leadership team is actively engaged throughout with the tools and training they need to deliver this the process, they are much more likely to become information effectively. role models and frequent communicators of the brand message internally. Managers are seen as role models for behavior, and employees will not change unless their manager changes. Senior managers must understand what they need to do Management differently and act on this quickly. They must be encouraged to live these behavioral changes, and be rewarded and recognized for their efforts. Brand Idea The corporate brand provides a powerful Leadership Team engine for aligning employee behavior with Brand Platform Employee Behaviors Customer Experience in Action the core purpose and Clear, credible Internal alignment for Consistent expectations promise of the organi- and relevant external execution and positive associations Senior Executives zation to help create a differentiated customer experience. Middle Managers Middle managers are a critical link to employee engagement.
  • 5. Engaging Employees to Deliver a Branded Customer Experience 5 Step 3: Develop a communications strategy recognition. Align policy and practices around the and plan brand, and clearly define the criteria and behav- ioral expectations for areas such as compensation We know that clear, consistent communication and recruitment to reflect your commitment to the is essential to the success of any project. But it’s brand. Then, put a process in place to measure, surprising how many organizations move right into reward and recognize the right actions and behav- tactical execution without creating a comprehen- iors – because what gets measured, gets done. sive communication strategy that keeps employees informed and excited about the project and what it Step 5: Provide the right tools, training and means to them. Decide early in the process what resources for employees needs to be communicated, and to whom, and what is still ‘work in progress.’ Develop a plan to ensure Throughout the branding process, it’s crucial ongoing communication, taking into account mes- to provide information and training that builds sages that address employees’ needs and answer employee understanding, trust and confidence in the question, “What’s in it for me?” the changes that will be forthcoming. Key ‘influenc- ers’ and ‘change agents’ need training to empower Develop a plan to ensure them to engage others. Creating a long-term clear and consistent Committed plan to evolve and institutionalize these tools and communication, taking resources is imperative to sustaining momentum. into account messages Excited We recommend that brand training be integrated that address employees’ into ongoing sessions for brand ambassadors, Well informed needs and answer the leadership teams, sales or customer-facing employ- question, “What’s in it for Brand activation ees, communications and human resources. me?” Uninformed Interested Disengaged Change is announced Cynical Public Advertising relations Promotional Step 4: Align the organization around Behavior material the brand Involving HR and communication teams in Environments Name a branding effort is absolutely fundamental Brand to brand alignment. To ensure credibility, Corporate organizations must redesign HR processes Identity /logo communications and procedures to support any changes in values and behaviors. This includes areas such as recruitment, orientation, training, Investor People relations promotion, compensation and reward and Web Products presence & support
  • 6. Engaging Employees to Deliver a Branded Customer Experience 6 Conclusion Connecting employees to the customer experience and consistently informing them about their vital role as part of a trusted team are both critical to branding success. By following a systematic, strategic process, you can move your employees from awareness of the brand to acceptance of the brand attributes and adoption of corresponding behaviors. The rewards can be sustained success in delivering the promised customer experience, leading to loyalty and security of earnings.
  • 7. 7 Founded in 1974, Interbrand serves the world with over identity, corporate identity, packaging design, retail 30 offices in over 20 countries. Working in partnership design, communications, brand engagement and digital with our clients we combine rigorous strategy and analysis branding tools. with world-class design and creativity. We enable our clients to achieve greater success by We recognize the importance of brand in this increas- helping them to create and manage brand value. ingly competitive business environment and tailor our services to client needs. Our services include brand Visit www.interbrand.com and www.brandchannel.com analytics, brand valuation, strategy, naming and verbal for the latest thinking on brands.