Celebrate good times

I love celebrations. Last week we celebrated the company’s 10th birthday with cake, champagne and jelly beans at all of our offices in the UK and abroad. It was a real joy to see happy smiling faces everywhere as we celebrated a decade of incredible achievement. On 9 June 2000, Betfair ran its first market on the Oaks at Epsom, where £3,462 was traded between 36 customers, watched over by just a handful of staff. Ten years later the company employs over 2,000 people spread across 30 locations around the world, and deals with more daily transactions than every European stock exchange put together.

And for the next month we are celebrating the most amazing festival in the sporting calendar. We are at our core a sports betting company, so the World Cup is a big thing for us, and we have been preparing for it for years. It’s only fitting therefore that we have a bit of fun and pay homage to the 32 teams battling it out in South Africa.

While the media are banging on about the cost to employers of World Cup distraction as staff absenteeism and lack of attention rises incrementally in line with England’s success on the pitch, and companies ban access to footy websites and make the flying of the Cross of St George a disciplinary offence, we have been encouraged to fly the flag – and more.

Our offices have become a sea of colour, creativity and noise to reflect the energy, excitement and diversity of the World Cup. Our staff in London have self organised themselves into 34 teams and given their bits of the office a bit of a makeover. There are 34 teams because two non-qualifiers that narrowly missed out on a trip to South Africa, Ireland and Egypt wanted to get involved.

My team is representing the Cameroon. Which is great, because the Cameroon have a rich heritage when it comes to World Cup celebrations!

Don’t be fooled into thinking we are all just on one great big World Cup jolly. Au contraire, this is going to be a very busy month for everyone as we mobilise to meet the demands of dramatically increased customer activity.

However, I work for a company that recognises the importance of celebration as well as the value of having a bit of fun while your nosed is pressed firmly against the grindstone.

Don’t just sit there feeling hard done by – check out our current vacancies and get involved!

Profits, passion & purpose

Delivering Happiness officially hit the streets today – although it kind of feels like it has been out there and read by millions of us already. It deserves to be a major success if for no other reason than the extraordinary way in which it has been marketed over the last few months. It will be a best seller because never before has an author put so much heart and soul into launching a book.

I suspect it cost a few bob as well, but how much better to spend your marketing budget on delighting a legion of existing fans and admirers and leveraging their already enthusiastic advocacy, which has already resulted in 40 reviews on Amazon, 32 hits on Google News just today, and attracted pieces in the Wall Street Journal, New York Times, and CBS News.

So what is all the fuss about? Read the book and certainly in the early stages you encounter a pretty ordinary guy. If anything, an under achiever. A flighty, fidgety sort who seemed to lack focus and drive. As a teenager and young adult, he was far from being a model student and a worthy employee. To put it bluntly, his low boredom threshold and inventive ways to avoid doing work did little to point to the fact that he would become a multi-millionaire by his early twenties.

That should be pretty inspirational stuff for thousands of listless teenagers out there who think life is sooooooo unfair.

Like many successful entrepreneurs, Tony Hsieh was far more interested in finding ways to make money than to focus solely on his studies. He was making $200 a week from a mail order business making buttons at High School. And while his parents thought he was diligently practicing his violin for an hour every day, he was reading ‘Boy’s Life’ magazine behind his bedroom door whilst the rest of the house listened to a pre-recorded loop of him scratching away at the fiddle.

At Harvard he did as little academic work as possible, spending a lot more of his study time in bed than I ever did at Uni, and instead of working nights for one week every term at the local bakery to like I did to make ends meet, Hsieh was making considerably more from his late night fast food operation selling burgers and pizzas to his peers.

Somehow he graduated with a degree and got a very well paid job with Oracle. That did not last long as he found it tedious and unchallenging. His subsequent stint as a self employed web designer went much the same way.

All the time, Hseih was learning the importance of doing something you were excited by. So much so that a few years later when he sold his Link Exchange to Microsoft for a mere $265m, with a personal fortune of $41m, Hseih gave $8m back because he didn’t have the patience to wear his golden handcuffs for another few months. He had worked out that for him, following his passion was more rewarding that chasing the buck.

And then came Zappos. Having read the book I can see that Tony Hseih’s passion had very little to do with selling shoes. Online or offline. No – his passion is for driving human (and therefore corporate) performance through amazing customer service. It could have been furniture, whoopee cushions, griddle pans or fishing tackle. It just happened to be shoes. Aided by the inspiration of some people he met along the way.

What drives this man is the pursuit of happiness and the recognition (or is it faith?) that there is a proper commercial virtuous circle, where happy staff equals happy customers, equals happy shareholders.

Most companies focus their efforts on creating shareholder value. Tony Hsieh knows that very few people get out of bed in the morning to create shareholder value. A few companies flip this convention on its head and works their butts off the make their staff feel valued, empowered, trusted, respected and dare I say loved. This rubs off on customers big time. And so it’s pretty good for profits too.

If any of this resonates, you should read Delivering Happiness: A Path to Profits, Passion and Purpose. If you think it sounds like a load of old tosh, you should read Delivering Happiness: A Path to Profits, Passion and Purpose.

What motivates you?

I bumped into this very clever video the other day. Actually, one of our engineers posted the link on Yammer – but that’s another story…

It’s a 10 minute presentation by Dan Pink, author of the much acclaimed Drive: The Surprising Truth About What Motivates Us, which contains some really interesting insights drawing on four decades of scientific research on human motivation.

Most experts agree that money is never at the top of the list of factors which motivate people. Dan Pink agrees with this with one notable exception; higher pay equals better performance provided the job being performed involves only mechanical/repetitive tasks. Where work calls for anything beyond this, such as rudimentary cognitive skills, creativity and decision making, larger rewards can actually lead to poorer performance.

Personally I think there is a very simple sociological issue exposed here which does not get discussed. People who perform jobs that are very mechanical and repetitive tend to be less well paid.

Poorly paid people will respond to financial incentives. It’s blindingly simple. They need the money. People who routinely need to exercise their cognitive skills, creativity and make big decisions are by default paid much higher salaries. When you are paid a lot, financial incentives are far less compelling. They don’t need the money quite so much.

He does not exclude money completely as a work place motivator. If you don’t pay enough, people won’t be motivated. Pink’s fundamental premise is that provided you pay enough, and thereby take the issue of money off the table, then autonomy, mastery and purpose become the three main forces for motivation and engagement. I guess this is not inconsistent with Maslow’s Hierarchy of Needs, which most psychologists and sociologists seem to swear by.

The content of the video is very interesting in its own right, but what makes it a truly great find is the very clever and ever so engaging use of animation as an alternative to death by PowerPoint. I think they call it scribing, and a British company called Cognitive Media appear to be pioneering this stuff.

Honestly, it really works. Judging by the number of ‘likes’ and positive comments on the Yammer thread, people really enjoyed the experience. I found the technique quite riveting. Give it a bash; it is 10 minutes well invested if, like me, you are turned on by interesting new ways to communicate.

I was delighted to see Atlassian get a mention as well. Atlassian are right up there with Netflix and Zappos when it comes to promoting the importance of a strong company culture as a differentiator and source of genuine commercial advantage. In this context, Atlassian are held up as an example of the importance of autonomy at work.

Once a quarter, engineers at Atlassian are given 24 hours to work on whatever they want, with whoever they want, however they want. The only ask is at the end of the 24 hours they show the rest of the company what they have been up to. According to Dan Pink, that one day of “pure undiluted autonomy” has led to a whole array of fixes to existing software and a whole array of ideas for new products that otherwise would never have emerged. Instead of paying an innovation bonus, they take the view that “you probably want to do something interesting, let me just get out of your way.”

Google famously do the same with their 20% time and Yahoo call them Hack Days. I like!

Delivering Happiness

Next week sees the much anticipated publication of Tony Hsieh’s Delivering Happiness. I was fortunate enough to get my hands on a couple of advance copies a few weeks ago on the understanding that I would review the book on Riding the Ripple and give the other copy away to one of my readers. 

It’s a bit like being gifted tickets to Super Bowl on the understanding that I turn up for the game. Why would I not want to write about one of the people on planet earth that I most admire? 

As books go, I’ve read better. But as a real life example of how a very different kind of corporate culture can become the driver of unprecedented commercial success, it really doesn’t get better than this. 

Tony Hsieh is no literary genius; he is just a straight forward, straight talking chap who possesses bucket loads of intellect, emotional intelligence, drive and humility. 

Oh and he happens to be CEO of one of the last decade’s biggest internet sensations, Zappos.

On the face of it, Delivering Happiness is an archetypal story of rags to riches – and as a self confessed Sunday Times ‘How I made it’ addict for donkey’s years, I’ve read hundreds like it.

But actually I haven’t. I have never read anything quite like this before, because Tony Hsieh is a one-off. 

  • How many people do you know who would turn their back on trousering $8m in order to chase a passion?
  • How many CEOs do you know who’s core beliefs on human interaction are heavily influenced by the very tribal behaviour experienced in rave culture?
  • How many companies do you know that prefer to create interesting stories through delivering amazing customer experience instead of paying for PR?
  • How many companies do you know that rely on word of mouth and spend the money that other companies would spend on advertising on customer service?
  • How many companies do you know that communicate with their customers and staff at the same time, over the same channels? 

I will be examining these and other themes in the book over the next few weeks. For now I hope I have whetted your appetite for Delivering Happiness sufficiently that you’d like to take a shot at winning yourself a free copy. 

All you have to do is RT any tweet you see from me mentioning  Delivering Happiness and then DM me and tell me how many posts on Riding the Ripple mention Zappos, and how Tony Hsieh pronounces his surname – is it Shay, Sigh or Shy?

Alternatively you can just buy it on Amazon!

The art of corporate apology

My infatuation with Zappos reached new heights at the weekend. Nailed on to undermine morale, there is nothing worse than working in an environment where the grapevine consistently beats formal and informal communication channels, especially when things go wrong and there is no acknowledgement.

Too many companies operate in a climate of unnecessary secrecy, either in the belief that you can keep a lid on major foul ups (which you can’t) or because they have yet to learn the art of corporate apology. This applies equally to the internal and external audience by the way.

Internally, without acknowledgement there is no learning and the most powerful thing about making a mistake is the shared learning opportunity it presents. Honesty and openness when a clanger is dropped should contribute to that particular clanger not being dropped again. Ignore it – or God forbid try to cover it up and you will be punished. Maybe not immediately, but your time will come.

I’m very blessed to be working for a company that gets this, and whilst it may not quite be up there with Zappos, it’s not far off.

So, back to the incident/communication that prompted this outpouring of love and goodwill.

How does this rate for speed, transparency and humility in the face of a customer pricing mistake that cost the company a $1.6m loss in the space of 6 hours last Friday?

http://blogs.zappos.com/blogs/inside-zappos/2010/05/21/6pm-com-pricing-mistake

It’s beautiful is it not?

What will you do?

Together for LondonI quite like Transport for London’s current ad campaign, Together for London. It is aimed at passengers and using very simple graphics and clear concise messages, it sets out to get across the message that a little thought from each of us can make a big difference for everyone.

I wonder if they have an internal version of the same campaign?

There’s a train driver on the District Line who for me personifies employee engagement. I have had the pleasure of travelling on his train a few times recently.

Yes, pleasure!

Regulars on London Underground may think this is an odd thing to say. Tube trains are a means to an end – on a good day they get you from A to B. They are not noted for their comfort or hygiene and certainly not for their ability to lift one’s spirits.

Meet District Line Dave. I don’t know his real name, but he sounds like a Dave. Dave does not make customer announcements from the manual. I’m sure he says what he has to say. But it’s what he doesn’t have to say and does that makes Dave my hero. He adds a bit of humour and personality to his work. He doesn’t tell jokes, but he certainly raises passenger morale through a combination of charm and wit.

He tells the odd short story and he shares the odd pearl of wisdom. In doing so he brightens our lives. He connects total strangers who share knowing smiles, some of complete surprise and others of recognition and appreciation. The few times I’ve seen him, as alighting passengers walk past the drivers’ cab at Wimbledon they smile, wave and even queue up to talk to him.

I Googled Dave this evening expecting at least to find a Facebook fan site or something. All I found was a very recent piece in the Telegraph and an unnecessarily long video on YouTube. And still no clue to Dave’s real identity.

If I ever find myself on one of his trains again I promise I will make the effort to say hi and to thank him for being an example to us all of how bringing a bit more of yourself to work can brighten up the lives of those around us.

If anyone from TFL is listening, please give Dave a bit pat on the back. He is one of your greatest ambassadors!

Professional Development in Internal Communication

Not so long ago I completed an online survey at the invitation of Internal Communications (IC) recruiters extraordinaire VMA Group. Designed to gather independent information on salary benchmarks, skills requirements and key career development trends within the UK IC industry, the survey was completed by 250 senior IC practitioners. 

This evening I popped along to RIBA to see the survey results presented back to a posse of grim faced IC ninjas eager to find out how the industry has fared since the last survey in 2008. So what if anything has changed? 

Salaries have remained pretty static, with modest uplift at all levels broadly in line with inflation. Given the economic backdrop over the last 2 years I’d say this is a good sign for the industry.

 One of the most interesting changes was around reporting lines. Since 2008 the three notable changes are:

  • The number of Heads of IC reporting directly to the CEO has doubled, from 4% to 8%
  • A 10% increase in Heads of IC reporting to the Head of Marketing
  • A significant reduction (11%) in the amount of Heads of IC reporting to Corporate Communications

 Team size was interesting, in particular the fact that 25% of IC teams comprise just one person operating alone. There was no figure for 2008 to compare this figure against. I’ll ask VMA tomorrow if they have this.

Another interesting finding was the difference between the top 5 skills deficits as perceived by IC practitioners versus those of their employers: 

IC practitioners Employers
Coaching senior leadership Strategy setting
Social media development Coaching senior leadership
Change management Influencing
Influencing Writing
Strategy Setting IC theory

Interesting to see that Social media development does not feature in the employers’ wish list. Personally I think that this is a reflection on the relatively slow recognition of the game changing nature of social media channels and actually IC practitioners are ahead of the curve here. I’d expect to see it higher up this list in the next survey.

To finish off this whistle stop tour of the survey findings, what do you make of this one? In 2008, 19% of respondents felt that their senior executive team were key IC advocates. In 2010 that figure rises to 30%.

Could this be an indication that employee engagement and the role IC plays in increasing it has become progressively more recognised by senior executive teams as an important and relatively low cost differentiator of corporate performance during harsh economic times?

I’d like to think so, but then I would wouldn’t I!

Freedom and Responsibility at Netflix

Up until last September I’d never heard of Netflix. Then I stumbled across these slides which set out the key aspects of their corporate culture. Every now and again I return for a quick refresher to see how my own appreciation of the slides has changed.

It hasn’t. I love so much of what Netflix stands for. Especially the value they place on communication as a valued colleague behaviour (slide 11).

I recommend spending 15 minutes reading the whole slide deck. And stick with it – I almost stopped reading at slide 6 where they made a crude reference to Enron’s core values. If I had a pound for every time I’ve heard Enron’s core values used to highlight the danger of having a lovely sounding value statement that has no grounding in reality blah blah blah.

Persevere and you will be rewarded. Here are some of my personal highlights:

  • Some companies tolerate brilliant jerks – for us the cost to teamwork is too high
    (slide 34)
  • Good processes help talented people get more done – bad processes try to prevent recoverable mistakes
    (slide 61)
  • Netflix vacation policy and tracking – “there is no policy or tracking”
    (slide 68)
  • There is no clothing policy at Netflix, “but no one has come to work naked recently”
    (slide 68)
  • Netflix’s expenses policy – “Act in Netflix’s best interests”
    (slide 71)
  • No bonus, no stock options, no philanthropic matching – instead pay big salary and give staff the freedom to spend it as they think best
    (slide 106)

If it all sounds a little fanciful take a look at their 5 year graph. Looks to me like they’ve been riding out the global recession pretty well!

Don’t bother me while I’m at work

I had a very interesting chat today with a colleague who objects to the fact that we recently installed poster holders on the back of every toilet door in the building, strategically positioned to catch the attention of anyone seated therein.

He accepts quite happily that when he is out on the lash he expects to see toilet advertising. He’s fine with that; that’s quite legitimate and makes commercial sense. He does not accept however that his employer should use similar tactics to try to grab his attention when he is in a state of temporary captivity and at his most vulnerable, with his trousers wrapped around his ankles.

Just turn up

And he wasn’t getting precious about us intruding on his ‘me time’ in trap two. Investigating his stance further it became clear that he just doesn’t want to be ‘spammed’ when it’s not on his terms. “Don’t bother me while I’m at work” he said, “send me an email so I can delete it if the subject does not interest me”.

The content carried over the last few weeks on ‘Loo Media’ promoted a company donation of £100 to every member of staff to give to a charity of their choice when they sign up for payroll giving, and a reminder that any member of staff who introduces a graduate to the company’s graduate programme would win a bounty of £500 if subsequently selected.

It’s hardly propaganda is it? It’s not like we are trying to ram our core values down his throat.

What struck me most though was the ‘don’t bother me while I’m at work’ line. Would he prefer to be ‘bothered’ when not at work? Of course not.

He seemed oblivious to the fact that ‘bothering’ him while he was at work is precisely what any reasonable employer would seek to do in an effort to make his work experience more fulfilling and rewarding. His attitude was you pay me to do a job, I do my job, that’s it. I don’t ask for you to communicate with me, so you have no right to communicate with me.

What next I wonder. Maybe an opt out clause in every new starter’s contract, giving them the option not to receive any form of internal communication? Perhaps an unsubscribe button on every corporate email? I know – how about a 15 yard exclusion zone preventing any manager from violating his personal space?

I guess it’s just been one of those days…..

Harvest and amplify the positive outliers

I’ve was reading up on positive deviance (PD) over the weekend. Whilst the terminology is new to me the sentiment is certainly not and it was really quite exciting to discover someone with far more experience in the field thinking along the same lines as me.

Before continuing though just a word on what I mean by change. Organisational change is situational. It happens when something starts or stops: it could be structural, economic, technological or demographic. I think what most of us mean by organisational change is really transition – the psychological process that accompanies change and invariably extends over a period of time.

Things can and do change quickly, people do not. This is important as change management for me is really all about transition management. It’s about addressing the complex and very challenging people issues rather than the more straightforward situational ones.

With figures almost mirroring the failure rate of mergers & acquisitions, it’s generally accepted that organisational change initiatives fail more often than not. Poor communication is often blamed in both instances, so my own profession can take a bit of a shoeing at such times.

Maybe that is why what Jerry Sternin has to say on the subject resonates with me. His experiences led him to conclude that “the traditional model for social and organizational change doesn’t work, it never has. You can’t bring permanent solutions in from outside”. I know I’m not alone in expressing the following sentiment: all too often change consultants ride into town, offer their wisdom, collect their fees, and then head off into the sunset to refine their models, do a bit more research and write another book. Meanwhile the company reverts to form.

Jerry and Monique Sternin set the PD ball rolling after their work with Save the Children in Vietnam in the 1990’s where they used it to great effect to tackle child malnutrition. The Sternins’ approach was based on the belief that in every community there are individuals whose exceptional behaviours or practices enable them to get better results than their peers using exactly the same resources.

The real challenge is to find a way to ‘infect’ the rest of the community with their behaviours and practices. The Sternins found that such infection took place where new behaviours were encouraged rather than knowledge taught: “Once you find deviant behaviours, don’t tell people about them. It’s not a transfer of knowledge. It’s not about importing best practices from somewhere else. It’s about changing behaviour. You design an intervention that requires and enables people to access and to act on these new premises. You enable people to practice a new behaviour, not to sit in a class learning about it.”

In Vietnam, the Sternins proved that PD worked, and their groundbreaking work has since served as a model for rehabilitating tens of thousands of children in 20 countries, and PD is now being applied around the world to change behaviour in a variety of other social and organisational situations, such as the spread of AIDs in the Third World and ethnic conflicts in Africa.

Here is a list of the steps set out in a Fast Company interview with Jerry Sternin that I have been reading.

  1. Don’t presume that you have the answer – start by listening, not talking.
  2. Don’t assume you need to go cross functional – the aim is not to produce a lively conversation among diverse individuals. Everyone in the group that you want to help change must identify with the others in the group and face the same challenges and rely on the same set of resources to come up with answers. If the group feels that you’re going outside to where things are culturally different, then it becomes another way to impose best practice, and you’re not using PD.
  3. Let them do it themselves – let the group discover, on their own, a better way to do things. Raise questions, but let the group come up with the answers on its own.
  4. Identify conventional wisdom – before you can recognise how the positive deviants stray from conventional wisdom, you first have to understand clearly what the accepted behaviour is.
  5. Identify and analyze the deviants – single out what exactly makes them successful.
  6. Let the deviants adopt deviations on their own – enable people to practice new behaviours, not to sit in class learning about them.
  7. Track results and publicise them – publish the results, show how they were achieved and let other groups develop their own curiosity about them. Celebrate success when you achieve it.  Chip away at conventional wisdom and demonstrate what can be achieved through PD.
  8. Repeat steps 1 to 7 – make the process cyclical. Deviation from the norm can quickly become the norm, at which point the chances are that PDs have discovered new deviations from the new norm.

I really like the sound of this approach.

I’m not going to rush out and start evangelising as I have yet to read any compelling evidence about its success in a hardcore business setting. I suspect every company has positive deviants lurking around somewhere. It could be the sales team that consistently outsells the rest despite making fewer calls. It could be the Finance team that consistently has the lowest churn rate in the company and the highest engagement scores in the annual staff survey. It could be the Help Desk team that always receives the highest number of customer commendations despite being the most under-staffed.

I like the look of PD as it does not make assumptions. This has to be a good thing as change management can be very formulaic and in my book there can never be a one size fits all solution to successful organisational change. Just because a particular approach worked in company A, it does not follow that the same intervention will work in company B.

And instead of focusing on solutions PD seeks to identify underlying successful behaviours already inside an organisation and leverage them.

That sounds pretty powerful to me.