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Transformational Leadership and Innovation

Smart companies during this economic downturn are using this time to engage employees in coming up with innovative ideas to set them apart from competitors when times turn good again. One of the most effective ways to be innovative is to look at the quality of service – the customer experience. And for transformational leaders this offers the opportunity to directly engage employees in change.

The key here it to examine customer satisfaction feedback and determine exactly which attributes customers value the most – for the banking sector fro instance it may well be convenience, friendly and helpful employees and ambiance of the branch.  If this is the case then the focus is on how to think outside the square and offer convenience in banking over and above what competitors do, which may not be about hours but might be about location. Similarly with friendly and helpful employees – how well do you staff understand what the customer experience is like, have they tested it as a customer?  And with regard to ambiance, are employees encouraged to become involved in design and facilities and comment on those little things that they have noticed would improve the customer experience?

It goes without saying that if you want to create a service culture you need to engage employees in the design of that culture.  So how can you do this for the least cost but highest impact? One way is to form teams across divisions and levels, communities of interest that come up with innovative suggestions for improvements. Tap into employees’ collective knowledge about the customer experience, what they have noticed, what customers have complained about to them, some of the best research is not the survey that researches customer satisfaction but the comments made to employees during their actual encounters with the organization.  If you take this information, divide it up into segments, pilot, evaluate and implement and then reward employees for their contribution you are well on the way to creating a culture focussed on service and not just focussed on turning up to work and not contributing.

An organizational culture will only change when you set up systemic practices that support the change. So you need to ensure the following is in place for to achieve optimum outcomes:

1.   That managers and team leaders have specific accountabilities in encouraging new ideas from their teams and understand the concept of communities.

2.   That a process is developed on how to decide which ideas to improve the customer experience can be implemented as a pilot.

3.   The evaluation process is determined against business results and that successful ideas ARE implemented.

4.   Employees are rewarded for those innovative ideas that customers truly value - the reward system may not be about money – it might be about dinner with the Executive team – therefore again reinforcing the culture of having access to people who make the final decisions and that innovation in customer service is valued.

5.   Finally the communication strategy needs to focus on the success of the program and continually reinforce the positive impact on the customer experience and business outcomes.

So, something to think about, how are your strategies in employee engagement and change management encouraging employees to make a positive impact on the customer experience and create a service culture?


3 Responses to “Transformational Leadership and Innovation”

  • Bess Hammond says:

    Thank you Marcia,

    I have come to your site, after hearing a lot of wonderful things about your consulting work. I knew I could find information that would help me have the answers my superiors expect of me. Your detailed explanation is just what I needed.

    Our company has a merger planned. I am the head of the Customer Service Dept.
    I have been concerned that my skills might not be up to this task.

    I have learned a lot from this post, but I’m still a little unsure how to measure results?

    Can you explain it to me?

    Thanks, Bess Hammond

  • admin says:

    Hi Bess,

    Thank you for your comments. One of the most important ways to measure the success of any change program is the impact it has on customer service. There are many different sources of business data and customer service measurement tools that you can use to evaluate how successful you have been. In Chapter 3 of my eBook Transformational Leaders – How Great Leaders Change Organizations it outlines all this information clearly. You can purchase the eBook on this site. Hope this helps.

    Marcia

  • Bess Hammond says:

    Thank you for the speedy reply!

    I have purchased your book & look forward to reading it.

    I will continue to look for more interesting articles from you

    please keep them coming..

    I learn so much from you,
    Bessie

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