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As part of a new series, I’m introducing today’s leadership concept via a segment extracted from my latest book, Lead with LUV, coauthored by former Southwest Airlines president Colleen Barrett.

 

The Customer is King

I’ve said for many years that profit is the applause you get for taking care of your customers and creating a motivating environment for your people. No organization has lived and breathed that lesson better than Southwest Airlines.  Read on for a great example of how Southwest creates Raving Fan customers by taking care of them like nobody else does.

Ken: These days, nobody has to convince anybody that the customer reigns. People are realizing that their organizations will go nowhere without the loyalty and commitment of their customers. Companies are motivated to change when they discover the new rule: Today, if you don’t take great care of your customers, somebody else will.

Colleen: That’s for sure! So great customer service has to be top of mind for all of your people. We emphasize that all the time. I love the way you and Sheldon Bowles challenged us all to create Raving Fans®, not simply satisfied customers.

Ken: We think enthusiastic Raving Fan customers make your business into a great business. Today you can’t be content to simply satisfy customers. Raving Fan customers are customers who are so excited about the way you treat them that they want to brag about you—they become part of your sales force. Let me give you a simple yet powerful example of this, from an experience I had personally with Southwest Airlines.

What usually happens when you call most airlines to either make or change a reservation?  You get a recording that says, “All of our agents are busy right now, but your business is very important to us, so please stay on the line and we will be with you as soon as possible.” Then the music starts. You could be on hold for who knows how long, sitting and waiting to talk to a human being.

Recently, I called Southwest to change a reservation. Normally at Southwest, a human being picks up the phone. This time, a recording said, “I’m sorry, our Customer Service Agents are all busy right now; but at the beep, please leave your name and telephone number and we will call you back within ten minutes.” So that’s what I did. What do you think happened a few minutes later? My cell phone rang, and this pleasant voice said, “Is this Ken Blanchard?”

I said, “Yes.”

“Ken, this is Bob from Southwest Airlines. How may I help you?”

Colleen, I’ve never had that experience with any other airline. How did you make that happen?

Colleen: That’s a feature that’s available to all airlines. It’s called virtual queuing. It helps us handle our heaviest calling times without lowering our Customer Service standard.

Ken: Why would Southwest use such a feature, and no other airline seems to be doing it?

Colleen: I don’t know. But we’re always looking for service capabilities that far exceed those of the competition, and that even exceed customer expectations. Being called back by an airline? It was beyond most customers’ belief. Yet we routinely try to do the unexpected, and can then enjoy the growth and good reputation generated by customers like you, Ken, who have spontaneously joined our sales force by bragging about us.

 

If you think it’s too much trouble to go the extra mile for your customers, think again. It’s just common sense: Treat your customers unexpectedly well and they’ll be so delighted they will come back again and again, tell their friends, and your organization will reap the benefits.  Do you have any great customer service stories that have become legendary around your organization? If not, you might want to stop and think about it.

It amazes me how seriously some people in business take themselves.  It’s as if they have come to the conclusion that who they are or what they are doing is so important that there should be no time for anything as frivolous as laughter.  This is a sad outlook on life.

I tell people who work with me to take their work seriously and themselves lightly.  In doing so, they are better apt to have a sense of perspective about what they are doing that is balanced, and an openness to suggestions and new ideas I often find missing from those who are more tunnel-visioned and only focused on business. A sense of humor serves as a pressure valve that can keep you enjoying your work even when times are stressful. I find it a preferred alternative to developing an ulcer or migraine headache.  In fact, it is one of the best ways I know to get you through stressful times on the job.

I have found three useful methods for keeping a sense of humor.

1)  Take time for yourself. You should take time to relax and enjoy yourself some every day.  What this means will vary from person to person.  It may be reading a magazine, taking a walk, practicing yoga, or playing with your children. I personally recommend skipping.  I believe that it’s impossible to skip and not enjoy yourself—and people who see you will probably laugh as well.  (Unfortunately, I’m afraid my own skipping days are over now that I have two “bionic” hips!)  I also recommend easing into your day—that is, getting up an extra 30 to 45 minutes earlier each morning so you don’t have to “jolt and bolt” like a race horse out of the starting gate. If you are too busy to take some time for yourself, you will inevitably start to expect others you work with to do as you do, and stress will result for both you and your people.

2)  Set an example. Let others you work with know that it’s okay to joke with you by sharing your own sense of humor. I think the best humor is self-deprecating, because it’s never at someone else’s expense.  For example, when I’m with a group having a good time at work I love to say something like, “Hey, if I’m in charge here, how come everyone’s laughing?”

If you are a manager, CEO, or business owner, you have a great amount of influence in setting the tone of the work environment.  You need to show that it’s okay to have fun at work and to celebrate successes when they occur.  For example, once to celebrate record sales halfway through our fiscal year, we closed the company and took employees to the beach for some fun in the sun.  We took time to explain our company’s financials and why we were celebrating—and what it would mean to each employee in terms of gain sharing if our sales and profit rate continued.

3)  When you find yourself stressed about something, ask yourself, “What difference will this make in 100 years?” You guessed it:  No difference.  So why get stressed about it now?  Instead, make a plan and take positive steps toward your goals in a way that is reasonable for both yourself and those around you.

I use another perspective-setting technique that I call my “zoo mentality.”  I developed this when my children Scott and Debbie were growing up.  I noticed that whenever we were at a park or zoo I’d see parents yelling at their children for running around misbehaving and generally having a good time.  It seemed crazy to me to take your children to a place to have fun with them and then spend all your time yelling at them!  I decided what was called for was to get into a different frame of mind that I dubbed my “zoo mentality” when I wanted to have fun. Then if the kids started acting silly or chasing each other I’d be more inclined to join the fun myself.  I still use this technique occasionally when attending company meetings.

The way I see it, everything is on loan—the skills we have, the opportunities to use those skills, and the impact we are able to make in this life.  I’ve had good fortune in my life and I am thankful for it.  I have yet to meet the person who does not have some good fortunes in his or her life.  Even during dreadful times in your life and work, there is always a positive side if you take the time to look for it. Once you have this perspective it is difficult to have what I call “false pride,” in which you feel the world revolves around you.

Remember, no one says on their deathbed that they wish they would have worked harder. Most are inclined to wish they would have enjoyed life—and being with those they knew and loved—a lot more. So have a great week and don’t forget to laugh every day.

I had a wonderful time recently, playing in a charity golf tournament with coworkers Steve Murphy, Randy Conley, and Brent Bystedt. It was really a lot of fun; we played a scramble.

One of the things it reminded me of—and this is so important to Colleen Barrett and Herb Kelleher at Southwest—is you really have fun in life and do well when you take what you do seriously, but yourself lightly. That was really evident as we were playing golf. We were trying to do the best we can, but we were laughing and enjoying ourselves. I don’t think there’s anybody who is more fun to be around than Steve Murphy. He’s one of our great consulting partners and he is absolutely fun. He takes what he does seriously but himself lightly, and I think that’s what endears him to clients. Read the rest of this entry »

There is a Positive Psychology course that Margie and I have been taking that is really interesting. We ran into a guy named Nathaniel Branden, who wrote about the six pillars of self-confidence. His big theme is nobody’s coming. If you are thinking about someone who is going to get you out of a situation, and you’re waiting for them to take all the action, the reality is that people can do things, but nobody is really coming. What are you going to do?  One thing that’s interesting is the difference between passive victims—people who are in a situation and immediately go to self-pity—“This is really tough.” Then they want to point fingers and blame other people. This leads to frustration, and eventually anger, and things kind of spiral down that way. This is the passive victim that somehow thinks their fate is in somebody else’s hands, versus the active agent who takes action—“Okay, this is tough, but what am I going to do? What can I do in my area? What ideas do I have?”  They are willing to take responsibility, which is being able to respond, and give suggestions that will help. They have a feeling of confidence—“Somehow we’re going to make it through this thing together.” This leads to hope and optimism. We all need to take action—what can we do to help?  Let’s work on responsibility. I have confidence and hope. What is it that makes some people be able to pull out of tough times? It’s all about resiliency. So remember—we’re all responsible somewhat for the condition we’re in. So be an active agent, not a passive victim. Life is a very special occasion. Don’t miss it with a lot of negative energy.

I recently heard a wonderful speaker named David Cook, who is one of the great sports mental coaches in the country. He had a really interesting theory about goal setting that I thought was worth sharing with you. He said when you go to set up a goal, whatever it is, you should try to see that goal in your own mind being accomplished. You need to see the outcome. Then you need to feel what it will be like once you’ve accomplished that particular goal, and get that feeling in mind. And then you need to trust that you’re going to be able to get there. He said the power is in the seeing it and the feeling it, and then just trusting the thing. So if you have a goal, whether it’s a business or personal goal, try to actually see yourself accomplishing it and feel like you’re going to feel once you’ve accomplished it—the smile on your face, the applause from other people, whatever—and then just trust it and set your sights on that goal. I think that is really interesting.  In golf, he has a whole bunch of people who have “SFT” on their ball, so when they’re playing golf, they try to see every shot—what kind of shot are they going to hit, where is it going to go, how high and all—then get up and feel it, and then just trust the process. He said it really is amazing how it works on all kinds of goals. I was thinking about the great athletes competing in the Olympics—the ones who win have seen themselves crossing the finish line and accomplishing their goal ahead of time. Then they make their actions consistent with what they are seeing and feeling. I think it’s a really fascinating process:  See it – Feel it – Trust it. Isn’t that interesting? Try it on one of your goals today.

Make Sustainability a Part of Your Overall Corporate Strategy

A One Minute Interview with Anastasia Kellermann, co-founder of 2LEAD4US, a Netherlands-based consultancy and training company (part of Blanchard International Netherlands) that challenges and equips leaders to integrate sustainability strategies into their organizations.

Q. Can you tell me a little bit about the research that you are currently conducting?

A. Our research project has been focused on sustainability and what kind of leadership is necessary to integrate sustainability into companies. We started with this research in Holland and we are expanding it to other countries worldwide. We are looking to get a deeper insight into how companies are integrating sustainability into their day-to-day core business and what the role of leadership is in that process. We also wanted to identify best practices among some of the early adopters. Our goal is to use the information for publication in a future book with Ken Blanchard on sustainable leadership.

Q. When you use the term “sustainability,” what do you mean by that?

A. When I am talking about sustainability, I am referring to what I call the 4 Ps—Person, People, Planet, and Prosperity. In addition to environmental sustainability, I’m talking about all of the decisions people make that impact both their immediate environment and the environment far away. For example, if you buy a cup of coffee and it is made from fair trade then you are also having an impact on people who are in South America.

Another important aspect is what we call “prosperity.” And the distinction here is not only the profit of the organization in the short term but also the profit that we make in the long term. How can we take the current structure where we incentivize people “to make a really quick buck” and also take into account how that impacts the way that our organization is going to continue in the future?

Q. So what you’re talking about is how to create an organization that is socially responsible and that has a plan beyond just being in business for the short term.

A. Yes, if you look at business, you’ll see that no one really looks much farther than about five years. If we are able to look at least 10 years ahead then that already gives us a really different picture for the decisions that we make today. So, if we are able to look ahead 10 years, or 20 years, then we start making really different decisions. A lot of companies are not yet realizing that they will face huge talent shortages in a couple of years and that demographics are heavily influencing HR: aging/retiring workforce, lack of talent, Generation Y versus needs of older workers, etc. Some companies, however, have already adopted very smart workforce planning methods to address these challenges. Deloitte is one example. This is why we see a need for integrating sustainability in human resource management. And it is taking that perspective into account.

It’s true that you need to succeed in the short-term in order to even be able to get to the long term. But what we have done until now is focus just on the short-term, and not so much on what does that mean over a five-to-ten-year period.

Q. What motivated you to get started on this research project?

A. I’ve always been passionate about sustainability and I’ve been working on it for a long time. I have always wondered what triggers people to act sustainably, to take good care of the environment–or not? What causes us to make the decisions that we make, including what we choose to eat, how we clothe ourselves, and what kind of jobs that we take?

If we want to create a sustainable world where we are doing good for the environment, and for others, and in our own economic interest in both the short and long term, then how can we invite people to take a different role and to specifically take a different leadership role? That’s the basis behind the research: how can we trigger people to make that change so that they can think in terms of sustainability and not just focus on that short term?

I’ve always been looking for what kind of leadership is needed to make this change. I did a similar research project before in The Netherlands for 24 CEOs on sustainability. I wrote a book on it called The S Factor, A Personal Guide to Sustainable Leadership. And that is how this research started. From my original focus on the Netherlands, I wanted to see what is going on worldwide in terms of sustainability. Is it just a sort of “greenwashing” with a quick treatment in a sustainability report, or are companies actually integrating it into their day-to-day business? To what extent are they taking that longer-term perspective into account and translating it into their decision-making?

What drives certain companies and certain leaders to act sustainably while others do not? And we also wanted to find out, what are the success factors that make one leader do it, or what is in the system of the company that makes it possible? For example, if people are evaluated for taking sustainable decisions, then of course you’re going to get a different behavior within the company than if people are constantly evaluated on short-term decisions and don’t take the longer term into account.

We also wanted to get a picture of what kind of challenges companies are facing. I think that’s really relevant because a lot of companies are going through hard times during this economic crisis.

Q. So to summarize, you’re looking at the traits of leaders that adopt a sustainability mind-set, the factors that encourage a sustainability strategy, and the barriers that get in the way from organizations doing that.

A. Yes, and when we look at success factors we look at those different traits, behaviors, and mind-set which has a lot to do with leadership and then we’re also looking at what kind of systems you can put within your organization so that it makes it easier for that behavior to develop. Because you always have believers within organizations—those who believe in sustainability—along with a more skeptical group of people who need to be challenged to find new ways instead of doing things as usual.

We see a lot of similarity with change management in that you have a couple of people who really want to change and move on to something that has more to offer than the old system while there are always people who don’t want change and who want to keep things the way they have always been.

Put this against an economic background where we’re seeing so much happening around the world and companies are facing a lot of different factors coming into a play. So, there is the environmental issue, the economic issue, combined with what does the company want to do, and then of course all of the normal challenges with implementing any type of change within a company. And sustainability really asks you to fundamentally change a lot of things. We are using the research to identify the drivers for why companies would do this and the opportunities for these companies in the short and long term.

Q. What have you learned from the research project so far?

A. What we learned from the original Netherlands research is that the biggest drivers promoting sustainability are cost and efficiency, which is interesting. Most people would say that sustainability is more expensive, but among the companies we’ve worked with they see a lot of advantages in how sustainability can cut costs. For example, what we are all spending on energy bills could go down significantly if we are able to tap into alternative sources of energy—solar instead of oil, for example. So, that is a driver for a lot of people who maybe are not a believer in sustainability, but they are a believer in the bottom line.

What we’re also seeing is companies looking at sustainability as opportunities for new markets and new products. Look at the car industry, for example, and how much of that has been changed with the introduction of electric vehicles. It’s seen as a new market and it means investing. And you can see how all of the other car companies are now starting to follow the leaders to try and develop the best electric car that they can manufacture. We are seeing in China that they are moving towards sustainability, especially because of new markets and products.

That’s one of the surprises from the research. We originally thought that regulation might be the first reason why people choose to go on a path of sustainability, but I’ve found that the search for new markets is considered a bigger reason—at least in Holland—than regulations. Regulations are still a factor, but the new markets are even more of a trigger.

One other finding is that personal mission, among top leaders, but also among change agents in other parts of the organization, play a vital role. What we are seeing is people aligning their personal mission and finding a way to incorporate it into the sustainability story. People are also doing it for a certain sense of pride and the self esteem that comes from getting behind something you can be proud of.

Also being a preferred employer is another reason for a number of organizations to also embrace sustainability because you can get and attract highly qualified and motivated personnel—especially among some of the younger students that are coming from universities who are looking for a challenge. While they might not choose sustainability for purely idealistic motives, we are still seeing that some want to find some fulfillment in their work and sustainability can provide that fulfillment. It also gives them a challenge, something that they can get their teeth into, and to do things really differently than before. Also, the younger generation tends to be more conscious about social and environmental aspects and a better sense of work-life-balance. With regard to human resource management, we have found that these characteristics are addressed in companies that are frontrunners in sustainability and hence become preferred employers.

Q. Any final thoughts or advice for companies looking to integrate sustainability into their organization?

A. Align sustainability as much as possible with the core business and strategy of the organization and with the personal motivation of people. If you see sustainability as a side project, or as just as occasional volunteer work in the community, that is not really going to lead to sustainability being integrated within the organization. That is a great start, but it doesn’t fundamentally change the way that the organization does business. Sustainability is really asking us to think longer term and let it come back and impact what we are doing today instead of seeing it as something separate.

Would you like to learn more about this research project? You can contact Anastasia Kellermann at www.2lead4us.com  You can also meet Anastasia at this year’s Blanchard Summit 2010 where she will be a featured speaker.

Last week and this week we are having a “Blanchard March Madness” tournament here at the corporate office. Last week we had some individual competitions including HORSE and a Sharpshooter tournament, and this week we are having 3-on-3 games. Well, on Thursday we had the finals of the individual competitions, and do you know who won the sharpshooting contest? Yours truly! Ha! I made 16 out of 20 shots from the foul line. What a great time we had, and I couldn’t believe I beat all the youngsters here at the office!

It was interesting. I’m proofreading the second edition of The Mulligan that I wrote with Wally Armstrong, about golf and faith. There’s a lot of mental stuff in there too. Tony Robbins said that if you want to perform well, there are three aspects. One is focus—you have to see yourself doing well. And you know, I used to be a great foul shooter when I was younger, so I just saw myself pouring the shots in. Then Tony said you have to have the physiology—you have to walk like you know what you’re talking about. So when it was my turn, I just walked there like I knew what I was doing. And then Tony said you have to have a routine. So I bounced the ball and tossed it around the same way every time before I went for the shot. So I made 16 out of 20 at the line, which even surprised me.

I also read in there what we wrote about playing NATO golf—Not Attached To Outcome. So you’re not worried about your outcome, you’re just going with the flow. Last week we were at a program called Inspire San Diego. The guy who put it on was Greg Reid, who cowrote a book called Three Feet from Gold, which really built on the ideas from Think and Grow Rich, the classic book by Napoleon Hill. Just listen to this line from Napoleon Hill:  “There are many things you cannot control, but you can control the only thing that really matters—your mind and your attitude. External forces have very little to do with success. Those who program themselves for success find a way to succeed even in the most difficult of circumstances. Solutions to most problems come from one source, and one source alone: yourself. You can do it if you believe you can. You control your destiny. Decide to live life to the fullest. You may be three feet from gold.”

That was fun. Life is a very special occasion, don’t miss it!

Occasionally Margie and I lead a couples’ workshop that lasts a day and a half. It’s really interesting—you might say, “What does leadership training have to do with couples in a marriage relationship?”  It is such a powerful thing, we found out, because as a lot of you know, we define leadership as an influence process. Anytime you’re trying to influence the thinking, beliefs, or development of another person, you are engaging in leadership. When you ask people about the most influential people in their lives, they don’t normally mention bosses at work. They talk about their mother, father, grandfather, uncle, or a coach or teacher. There is a lot of life role leadership that goes on, informally, in families and in friendships and all. Leadership in the home is life role leadership. It’s probably the most important leadership role you could ever have.

In our work, you know we say that leadership is a transformational journey starting with self leadership, then moving to one-on-one leadership, then to team leadership, and then to organizational leadership. And as we look at families, it becomes really clear that self leadership really starts with just finding out who you are and whose you are, and getting perspective on your life. Then you move to a marriage relationship, and that’s when you’re trying to influence each other, one on one. Then when kids come along—now we’re talking about team leadership. How do you build a community? How do you get people to recognize that none of us is as smart as all of us, and really create that team environment? And then the organizational leadership of a family would be the extended family. What do you do with your in-laws and outlaws and cousins and that whole thing? That’s something most people don’t think about as a leadership position, and yet in a family, it’s a whole different element. So it’s kind of fascinating. Through our training we realize that these concepts apply at home as much as they do in business. So learning how to be a good leader is good for everyone.

Although the U.S. unemployment rate is estimated to be 10%, if you look at the age groups of our talent base that’s out of work, it is far higher among recent college grads and estimated to be 20% or more among those between the ages of 20-30.  Many people have proposed a “job corps” like the Peace Corps, where young people would serve their communities for a year or two, and their education debts would be forgiven based on the duration of their service.

There is so much energy and passion among this age group just entering the workforce, and so much social entrepreneurship happening from this new generation.  It is a shame that we may be facing a “lost generation” of new workers due to the economy!

My friend Harvey Mackay has a new book called Use Your Head To Get Your Foot In The Door: Job Search Secrets No One Else Will Tell You. Whatever age you are, if you are frustrated with your job search, or you’re facing a career change, you will get some very practical insights.

People are more discouraged than ever.  But stay positive!

Finding a job and advancing a career is tough work.  People need an inspirational force behind them and Harvey will share that journey with you. This is a great book, and everybody today, whether they have a job or are looking for one, will find a lot of useful information.

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