• Leadership IQ being equal, it is believed emotional intelligence – how we manage ourselves, our emotions and the emotions of others – accounts for 85 – 90% of what separates the most outstanding leaders from their peers.

  • It costs 10 times more to gain a new customer than it does to keep an existing customer.

  • A survey of 350 executives across 14 industries, 68% confirmed their companies experienced unanticipated problems in their change process. – International Consortium of Executive Development Research.

  • Companies Don’t Solve Problems.
    People Do.

  • No one of us is as smart as all of us – when teams function well, miracles happen.

  • 25 of every 27 customers who have a bad experience fail to report it because they don’t believe anything will change.

  • 85% of business leaders agree that traditional differentiators alone are no longer a sustainable business strategy.

  • "High performing organizations are constantly focusing on improving their capabilities through learning systems, building knowledge capital and transformational learning throughout the organization.” - Ken Blanchard

  • The brighter you are, the more you have to learn.

  • It is estimated that 80% of mergers and acquisitions that occur today fail to meet initial expectations.

  • Leadership is being the best you can be, and helping others be the best they can be.

  • The quality of a person’s life is in direct proportion to their commitment to excellence, regardless of their chosen field of endeavor. Vince Lombardi

  • The key to building a culture based on Trust and Personal Responsibility is getting all employees to be committed to the organization’s Vision and the Values That Build Trust.

  • 78% of consumers say their most satisfying experience occurred because of a capable and competent customer service representative.

  • People are the core strategic asset. To be successful, a company must listen, involve, encourage, nurture, support, empower, and reward all its constituencies.

  • 70% of organizational changes fail and these failures can be traced to ineffective leadership.

  • Corporations can work five times harder and spend five times more money to gain new customers, or they can keep the ones they have.

  • 50 – 70% of how employees perceive their organization can be traced back to the actions of one person – the leader.

  • Learn something every day. Never stop learning.

  • The number one fear in the world is public speaking. “You” vs. “I” messages are powerful tools for capturing your audience’s attention.

  • The key to keeping customers satisfied and loyal is to value and train employees while making them an integral part of corporate success.

  • If you want 1 year of prosperity, grow rice. If you want 10 years of prosperity, grow trees. If you want 100 years of prosperity, grow people. – Chinese Proverb

  • Effective coaching is a key method for increasing productivity and profitability in an organization. Recent studies have shown that 85% of the workforce wants holistic coaching so that they can continually improve and grow.

  • Change is constant. To implement change you must listen, engage, and empower individuals in the change process.

  • The great thing in this world is not so much where we are, but in what direction we are moving. Oliver Wendell Holmes

  • Personally, I am always ready to learn, although I do not always like being taught. Winston Churchill

  • Employee loyalty builds customer loyalty, which builds brand loyalty. It’s as simple - and as difficult - as that.

  • First, people don’t grow and change much unless they’re in a supportive environment where people know what they want to do and encourage them to do it.

USA Today - Art imitates life in new film

January 13, 2005

USA Today

By Del Jones

In the movie In Good Company, out Friday, actor Dennis Quaid plays Dan Foreman, a 51-year-old, successful magazine ad salesman who gets a 26-year-old boss.

Sounds entertaining but probably less so to the growing number of real-life young bosses and older subordinates who negotiate dicey relationships daily.

In the movie, boss Carter Duryea is played by Topher Grace of That '70s Show. He looks barely 20, is fresh out of business school, smart but inexperienced. Many baby boomers, ages about 40 to 59, know what it's like to have such a boss. They have hit career peaks and have little choice but to watch bright youngsters leverage technological savvy and a better understanding of younger consumers into promotions.

It's a trend that took off during the dot-com boom and will likely continue as older workers delay retirement.

In the past, there were more rungs, but organizations are flatter, says Bill Byham, CEO of human resources consultant Development Dimensions International. Companies are moving star performers up faster. As In Good Company portrays, such relationships are uneasy. They not only buck established workplace protocol but also the human history of wise chiefs and respect for elders.

Ask Julie Smolyansky, the 29-year-old CEO of Lifeway Foods. Nineteen months after taking over, she says she is still uncomfortable asking older subordinates to get her coffee, much less initiate major production changes.

Barry Maher, author of Filling the Glass: The Skeptic's Guide to Positive Thinking in Business, says he was once promoted in charge of older workers with more experience. On the first day, he was told by his supervisors to lay down the law with a long list of new rules.

"Hardly the best rapport builder," Maher said, and he felt obligated to sign the list "A. Hitler, Gruppenfuehrer," a joke that he said was intended to signal that he was not trying to throw his weight around.

"I have a fear of pushing my opinions too hard on people who are older," says Smolyansky, who took over at the 75-employee health food company in Morton Grove, Ill., at 27 when her father and company founder, Michael Smolyansky, died suddenly.

Kid gloves may often be appropriate. Older workers have less patience for a new boss who hasn't paid dues, and they especially have trouble taking seriously bosses who are younger than their children. "I try to make requests in the most non-authoritative way," says Smolyansky, who was being groomed by her father but didn't expect to take over the company until she was 50.

Smolyansky says she respects those with 25 years of experience and their ability to solve problems. But she must also guard against their resistance to change and technology.

Smolyansky says she hopes to see In Good Company this weekend. The movie includes a subplot secret love affair between Duryea and Foreman's 18-year-old daughter, a complication Smolyansky says she is happy to have been spared. But she says her situation is more difficult than in the movie because she's a young woman trying to exude authority over a workforce accustomed to a graying man in charge.

Sean McCloskey, CEO of Alpharetta, Ga., software company Visiprise, is 37 but has been supervising fiftysomethings since he was 29. He says he's never found it uncomfortable to give orders to older subordinates, partly because he started out during the dot-com craze when young executives were common and partly because he encourages those who aren't confident in his leadership to move on.

However, being boss at 37 is easier than it was at 29, he says.

Maria Cabal, 51, a new hire at public relations firm Porter Novelli in Fort Lauderdale, says just about everyone on the job is her boss, including a 30-year-old supervisor, Yennie Rautenberg, who is three years older than her son. Cabal says she is treated with respect and feels "infused with energy."

Dianne Durkin, founder and president of Portsmouth, N.H., human resources consulting firm Loyalty Factor, says such smooth sailing is probably the exception. Conflicts between young bosses and older workers have become her pet subject of interest.

Just as Foreman portrays in the movie, Durkin says, the success of baby boomers was built on personal relationships. Older workers are frustrated at young bosses who have no patience for technophobes and prefer e-mail to face-to-face interaction.

"It drives boomers crazy," that young bosses are always glued to the computer and won't even pick up the phone, she says.

Young bosses were educated in schools with a lot of team projects. That means they care less about individual recognition than team results, while boomers are much more competitive and crave the praise, Durkin says.

In the movie, the middle-aged Foreman fears for his job. Smolyansky says she has never had to fire an older employee, but she has fired consultants who were condescending.

"I do sign the checks," Smolyansky says.

The young-boss trend is increasingly international. A September editorial in India's The Hindu newspaper said, "Older employees resent the new brood of bosses telling them what to do. The young bosses wonder why the old horses won't just retire." It ends with a warning to impatient young bosses: "You could be working for one of your subordinates someday."

Investor's Business Daily - Presentations with Punch

August 12, 2004

Investor's Business Daily

By Cord Cooper

Reading about presentations skills is one thing. Taking a course to boost those skills can replace weaknesses with strengths.

Loyalty Factor, a business consultancy in Portsmouth, N.H, offers one such course.

The two-day workshop covers everything from a speech-giver's introduction to his audience Q&A. Enrollees include senior executives, product and IT managers, and salespeople.

Participants start by bringing a speech or topic with them to class. "It might be an upcoming presentation they're slated to give, or a boilerplate speech they give to different audiences," said company President Dianne Durkin.

Why bring a speech? "Often, people have to do a presentation 24 or 48 hours after they leave. We want them ready."

The course is broken into segments, each covering the major parts of a presentation.

"At the end of each segment, class members give that portion of the speech we're focusing on, whether it's the opening, the body or the close," Durkin said. "Class members are videotaped so they can view their performance. At the end of the course they do an abbreviated final presentation and take the video home with them."

The workshops are small, with six to 12 people. "They're also non-threatening." Durkin said. "Everyone's here to learn."

In an interview, Durkin offered these tips for giving presentations with punch:

  • Understand your audience.
    "Know their level of expertise, their concerns and needs," Durkin said. What do you and the audience have in common? "Make that connection. Figure out what they want most from you. Then find every way to provide it."

  • Limit the handouts.
    Don't fill them with numbers," she said. "Use charts selectively."

  • Write your own intro.
    Your introduction shores up credibility. "Don't leave something that important to the host. He may include things from your material or Website that don't relate to your presentation."
    Ask the host to read your intro verbatim. "Simply say it'll strengthen your presentation for his organization," Durkin said.

  • Make the opening a grabber.
    Forget humor, which is subjective. "Instead, start with a question: 'How would you like to boost earnings by 40% within a year?' Then overview your topic, and sell the benefit," she said. "What's in it for your audience? Why should they listen to you for the next 30 minutes?"

  • Keep the body clean.
    Limit your presentation's body to three main messages. "In the first two of three minutes of each message, outline the key points. Then back them up with an example, an analogy and a few key statistics," she said. Your goal: "Keep it moving. Play to people's limited attention spans."

  • Close with a call to action.
    Then sell the benefits of that action.

  • Keep the Q&A focused.
    As you take questions from the audience, "work your key points into answers. At the end of Q&A do a miniclose, quickly restating your selling points," she said. Don't let the Q&A drag on. "Leave people wanting more - not glad they're finally escaping."

FEI Financial Executives International - Managing Different Generations at Work

July 2004
Excerpt Featuring Dianne Durkin of Loyalty Factor

FEI Financial Executives International

By Jeffrey Marshall

Does every generation present a different face in the workplace? Some sociologists and management experts, not afraid of being accused of facile generalizations, say yes, and offer overall attributes for each group.

The Loyalty Factor, a training and management consulting firm based in Portsmouth, NH, even includes a module in its training curriculum on Managing Today's Multigenerational Workforce, which "teaches leaders how to effectively deal with employees of all ages." Loyalty Factor trainers stress that workers of differing ages must not be led and managed in the same manner.

"Every generation is motivated by different factors and brings their own expectation into the workforce", says Loyalty Factor President Dianne Durkin. "True leaders recognize those differences and manage their employees accordingly."

As Durkin explains it, the different generations sometimes have overlapping or compl9imentary attitudes; understanding these attitudes may be very useful for employers. In an interview, Durkin surveyed the generations now in the workplace and made these observations.

    1. Veterans - born 1922 - 1945; They want very clear direction, she says. "They grew up in a world where no one bucked authority. If you give them a job, they want to go do it." They are willing to work hard, and they're loyal and dependable, with strong value systems; often, they brought their children into their own companies.

    In a team environment, she says, "they need a strong leader who enforces the rules and agreements." They need to see the benefits of a new approach, and may be inclined to say, "We've never done it that way before."

    2. Baby Boomers - born 1946 - 1964; The fabled Boomers, the largest generation in American history, commonly rejected their parents' core values in their earlier years. "They invented work as self-fulfillment and proving themselves," Durkin says, and have "defined themselves by their careers. Many are in management." They can be self-righteous and self-absorbed, she says.

    Yet the Boomers see a lack of respect for authority in the succeeding group, "GenerationX," and resent that. In terms, Durkin says, Boomers "have to have a meaningful role, and to prove themselves. That can override the commitment to the team."

    3. Generation X - born 1965 - 1980. Unlike the Boomers, "Xers" view work as just a job, Durkin says: "They work to live, not live to work, and they want balance in their lives. You need to give them freedom and autonomy; but they also need support. Give them a goal and let them be creative; they don't want the guidance." Women in this group typically want more balance than Baby Boomer women, she adds.

    Xers "don't take criticism well, they think they know it all," she says. "They need recognition and continuous reinforcement - they got it as they were growing up from computers; now they want it from people." In part because of their preoccupation with computers, "they're not always good with people skills."

    On a team, Durkin says, Xers "need a clear mission and well-defined goals. They are cynical by nature." The employer has to provide an opportunity to work and grow, or they are going to leave. "Their loyalty is nil," she adds, and many want to work independently.

    4. Nexters - born since 1980. The oldest in this latest generation are just joining the workforce, and many are still serving as interns. "They have some of the traits of the veterans, as well as the Xers," Durkin says. "They are not like the Boomers, who are their parents. They're very goal-focused, very curious about what works. We recommend them working with Veterans."

    Boomers had mentors, she adds, but Nexters have numerous mentors. "They recognize they can't learn everything from any one person. As an employer, you'd better tell them about the future of the company. Yet they are willing to sacrifice pleasure for the collective good."

    In teams, Nexters can be very effective, but they want a strong leader for guidance and will-defined goals, she says. "They're very worldly from the perspective of knowledge," having been bombarded with electronic and computer messages all their lives. And, she adds, they actually get along relatively well with the Xers because both groups realize they don't want to be micromanaged.

PHONE+ - Customer Interaction Culture Key to Profitability

July 2004

PHONE+

By Dianne Durkin

Exceptional customer service is key to building customer loyalty and, thus, ensuring long-term profitability.

Loyalty shapes people's choices on what they purchase, how they purchase and where they purchase. In a study conducted by the Forum Corp. on why customers changed brands, more than 60 percent switched because of poor service and lack of personal attention. When customers rank the importance of factors for creating a "good customer experience," advertising and promotion ranked only 2.8 on a 7-point scale. In contrast, "actions taken in response to a problem or request" ranked 6.33 and "the company's employee who served the person" ranked 6.24. These statistics indicate the importance of resolving the customer's request in an efficient, effective and pleasant manner. The goal is to create positive interactions and treat customers with respect, honesty and integrity.

Another study by Tom Peters on the impact of customer dissatisfaction found the average person having a negative experience tells nine to 10 people, and 13 percent of people will spread the bad word to 20 or more people. Data also show that a company can retain 82 percent to 95 percent of dissatisfied customers if it can resolve complaints in a timely and thoughtful fashion. The goal, of course, is not to lose the customer in the first place. It costs five times more to acquire new customers than it does to maintain existing customers, according to a Purdue University study.

Based upon these statistics, it pays to make improvements in your customer satisfaction systems. The foundation of good customer service lies in hiring employees who are customer-focused. What does this mean? They must believe in themselves, the company and the products and services they support. Belief is the most powerful persuasion tool and can be detected at an in-person, face-toface meeting or over the phone. Customer-facing individuals need to know their boundaries and be empowered to make decisions that will improve customer satisfaction.

They also need to feel they are supported by everyone in the company and are a key success factor for the company.

Although many companies say customer service is critical, the actions of recognition and rewards do not substantiate the statements. Individuals need to understand they are valued by the entire organization. If an individual feels important and valued, this will project in their voice, attitude and actions with their customers.

In addition to being valued within the company, they also must believe they are offering far more value to the customer than they are asking in return. This is achieved through training the person how to associate the true value of their service to their customers. This includes:

    1. Understanding the customer's expectations.
    2. Educating the customer on their requirements.
    3. Coaching the customer on their specific needs and realistic expectations.
These individuals need to be well trained in empathetic listening, effective questioning strategies and handling difficult situations.

Empathetic Listening.
There are two types of listening - conscious listening and empathetic listening. Conscious listening is listening for content, and many of us do a very good job of this. Empathetic listing, often times forgotten, can be far more important than conscious listening. Empathetic listening is having a sincere interest in what the customer is trying to achieve and in helping the customer solve his/her issue. It is looking for the emotions behind the words. Some statements that can help in putting a distraught customer at ease include:

  • I understand that you might be angry about this situation.
  • I understand that you are frustrated.
By acknowledging the emotion, the customer service representative calms the customer and communicates interest in resolving the situation. Other advantages to acknowledging emotions include:
  • Establishing credibility and commitment (I understand and I care.) - Decreased time to resolution (Less emotion and more logic) This approach creates a stronger connection with the other person and increases respect, trust and rapport.
Effective Questioning Strategies. The nature of the service business is to identify and solve customer problems. This is best achieved by clearly understanding the customer's needs. Questions are therefore a "secret weapon" in dealing with customer situations. Questioning strategies should have a combination of open-ended, closed-ended and high-impact questions.
  • Open-ended questions gather information. They start with the following words: What, Why and Tell me about.. For example: What happened?, Tell me about your situation. and What is the nature of your call?
  • Closed-ended questions are used to guide the discussion and start with words such as: When, Where and Is. Examples include: When did this happen?, Where did this happen? and Is your system working properly now?
  • High-impact questions are designed for gaining the customer's commitment.
Examples include: What effect does this have on?, What impact will this have on you and your operation? and What does that result in?

In using a combination of these questioning styles, CSRs will build a positive sense of rapport with their customers. Customers will not be on the defensive; rather they will know the representative has a sincere interest in them and their problem. Our recommendation is to start with open-ended, followed by closed-ended and high-impact questions.

In this way, CSRs clarify and confirm the customer situations and identify their particular business problems. For example: What is the problem?, When did it happen? and What is the impact on your business or department?

Check Point Summaries.
Checking in with the customer throughout your conversation helps to restate and clarify the conversation. These are what we call "check-point summaries." In using check point summaries, we repeat the information that we have gathered back to the customer. Examples would include: Let me see if I understand what is happening, Am I correct in assuming that this is what happens when you try toÖ In employing check-point summaries, you are showing a sincere interest in this person and their situation. The customer is the center of your focus.

Closing Summaries.
Finally, applying a closing summary at the end of your face-to-face meeting or call will ensure everyone understands the situation and is in agreement with the next steps. Closing summaries recap the situation, outline the next steps, and close by asking if there is an additional request you can fulfill for your customer. This strategy shows you are interested in the customer and his situation and that you want to resolve the situation in an efficient and effective manner to ensure he is fully satisfied.

The approach to managing difficult situations includes the following steps:

    1. Listen to the person's feelings and good intentions. This means applying conscious and empathetic listening techniques.
    2. Employ questioning strategies. Understand questions are your secret weapon in clearly understanding the situation and building long-term rapport with your customer.
    3. Use check-point summaries to restate and clarify the situation.
    4. Acknowledge the person's needs, intentions and emotions and the importance of their problem.
    5. Respond with a closing statement.
Nurture the customer by using all of the above techniques. If the customer feels understood and cared for, they will have a good feeling about the company, recommend you to others and remain loyal. This will lead to improved performance and profitability.

Employee loyalty drives customer loyalty, which drives brand recognition.

Potentials - The Last Word Loyalty Matters Dianne Durkin, Founder of Loyalty Factor Says Customer Loyalty Starts with Employees

May 1, 2004

Potentials

By Jonathan Pont

MAY 01, 2004 - -- What's the connection between employee loyalty and consumer loyalty? What needs to happen to reinforce it?

People have to feel good about themselves and who they are. Second, they have to feel good about the company they represent. Third, they have to feel good about the products and services they're selling. If those three exist, it's going to radiate from them to the customer environment. They believe it, and belief is the most powerful persuasion tool in the world.

Sounds good as a strategy. But what about tactics, from the back room to the front counter, so that performances translate?

A prime example: If a person buys a particular product, and the sales person says, "have you tried this product that goes along with it? It's exceptional." There's a confidence about it. You get add-on business, somebody who goes after needs of a customer.

One client was a pharm company selling diabetes supplies whose competition in the disposable needle market was eating them alive. They decided that the customer service reps could help sell, but we had to educate them. We asked them to prick themselves so they would know that it actually doesn't hurt. Once they got that, it was amazing what they were able to do with that information, and the belief in their product.

How about training? Are you happy with what you see, or can companies do better?

Companies are doing okay, but there's always a margin for improvement. It's continual. Training can help keep people motivated to grow and improve. If a person is continually growing and improving they're going to stay with your company. The longevity in the company is what you want: That's where your expertise lies. Loyalty in the workforce is critical right now. As baby boomers are leaving, there aren't enough people to fill the jobs.

What's the most common mistake companies make when it comes to creating customer loyalty?

One is when companies say they want to become more customer-centric but don't provide employees the tools to do that. Those can be training tools, process tools, management reinforcement tools, or rewards and recognition.

The other piece is that we find companies just aren't focused. They're all over the map. They've got grand ideas but they can't execute the ideas. A lot of times we hear about customer service surveys that companies conduct, then nothing ever happens to them.

So the elements are in place, intentions are good, but things don't happen. Why is that?

In today's pressure environment, managers get so wrapped up in the day-to-day issues that they say the words but forget how to execute the words. We help them focus on "this is what you said you were going to do. This is how you're going to do it."

The other thing is that people think that they personally have to have all the answers. They don't. In today's world, you can't possibly know everything there is to know. You've got to take the ideas from the people within your organization who are doing the work on a daily basis. Questions are the secret weapon of managers and senior level people within an organization, and also of customer service.

In terms of retaining customers, what's the role of a manager versus that of someone on the front line?

The person on the front line makes the difference. The manager, however, has to be a coach for that person, a stimulant, an encourager and a provider of the skills and knowledge to do that job.

What do companies do that is counterproductive?

I think not communicating is the biggest one. Saying "we have an open environment," then having lots of closed-door meetings. Or an intimidating manager who makes people feel they're under a thumb all the time or they don't have the flexibility to use the knowledge base they have. Dictatorial management styles don't work either.

Let's say a company wants to change its culture to make it better for employees and clients. Can a company be redeemed?

Yes, but it has to involve every single person in the company, from the janitor to the chief executive. It's not just the chief executive saying, "we're going to change the culture." That doesn't work. It's involving people in the change process and how [a company wants] to change. Helping people define how they want to change and allowing them to put the measures and the practices in place. Then management can say "yes" or "no."

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