When we seek to discover the best in others, we somehow bring out the best in ourselves.
—William Arthur Ward
A war is currently being waged for talent. Good team members may be hard to come by, but leaders understand how critical they are in building strong organizations. The fastest way to enhance culture is to hire top-tier talent whose values align with those of the organization. Conversely, the quickest way to destroy a good culture is to hire the wrong people. As we have said, people are not an organization’s greatest resource. The right people are the greatest resource. The wrong people are the greatest liability. The cost of a bad hire is much greater than missing out on someone good. It’s a conundrum as to why so many organizations hire in a haphazard way or simply do not understand the nuances of attracting top talent.
If an organization wants remarkable results, they must do two things well: (1) hire remarkable people and (2) craft a remarkable culture. If they do these two things well, then everything else will be much easier. But if they fail on these two points, then everything they attempt to do will become that much more difficult.
The reality is that when you hire remarkable people and place them in a less-than-remarkable culture, they may have a positive impact and elevate the culture. But if they become frustrated and have little hope of making a significant impact, then they easily become disenchanted and leave the organization. Similarly, if you have a stellar culture but hire less-than-remarkable people, then those who do not embrace the culture can quickly sour their fellow team members and curb their enthusiasm. Hiring the right people is absolutely critical, yet so many organizations do a poor job when it comes to selecting talent. Consequently, turnover is high, morale is low, and momentum is diminished.
Organizations that do not put a heavy emphasis on the acquisition of top-tier talent will forever be plagued by low morale and moderate levels of engagement, accompanied by a frustrated workforce and high attrition.
Let’s look at a few elements that diminish the effectiveness of hiring practices and discuss possible solutions.
Part of the problem in identifying top-tier talent in any pool of applicants is simply speed to hire. When a position is vacant, many hiring managers are charged to fill that position as quickly as possible. They often receive bonuses based on minimizing the time that a particular position is empty. As a result, speed takes precedence over substance. Candidates are not thoroughly vetted, the courtship process is truncated, interviews are minimized, and concern for values alignment placed on the back burner.
This, of course, all leads to a lack of transparency for both the candidate and the organization. The candidate is not given time to explore the organization’s culture, and the organization does not take the time to connect deeply with the candidate. Assumptions are made and conclusions are drawn that do not reflect reality on either side. Therefore, often a sense of disconnectedness or disillusionment persists when the individual comes on board. Both the organization and the individual have to adjust their expectations. A better alternative would be to simply slow the hiring process to ensure that all parties have a thorough understanding of one another and that there is a culture and values match.
I have a friend who was in a senior-level role at a multinational company with offices in Atlanta. He grew increasingly frustrated that the company he was working for had not been altogether candid about the organizational culture when they were courting him. After several years of enduring a values misalignment, he finally came to terms with the fact that he had wed himself to an organization he could no longer serve effectively. So, he decided to make a transition.
Another company was nearby that he had always admired. Its brand was strong and the culture was the cornerstone on which its founder had built a thriving business. The company was a highly acclaimed leader in its industry. The problem, however, was that the organization had a corporate culture of internal promotion and rarely looked outside to fill open positions. Nevertheless, a position became available that he felt he would be suited to fill, so he threw his name in the hat for consideration at Chick-fil-A.
Eighteen weeks and thirty-six interviews later, he was offered the position. You may think of that as overkill. A process that lengthy and laborious is definitely exhaustive. But that is the point. And it’s a common occurrence at Chick-fil-A. You see, my friend was required to interview with every person he would directly touch in the course of his responsibilities. All thirty-six. And some of those interviews lasted for three and a half hours. In the end, they were all required to sign off on his hire. It’s safe to say he was thoroughly vetted to make sure he was a good match for the company’s culture. At Chick-fil-A, culture is the single most important differentiating factor. In fact, the company is most widely known for its culture—a culture that both attracts and keeps top talent. Chick-fil-A hires first and foremost for culture match and values alignment.
The wisdom in this hiring practice is that it ensures the success of each member of the team. Because everyone who interacts with each new hire is required to give a thumbs-up means they are all committing themselves to provide the support, encouragement, and direction needed for the new team member to be successful. Should relationships become stressed, no one can go passive-aggressive and claim not to have been in support of the hire. Instead, each person has a vested interest to ensure that person is productive. Should that new team member drop out for any reason, it’s considered a failure for the entire team. It would mean either that person was not properly vetted or adequate resources were not provided for them to become a productive, contributing team member.
Since many people spend as much time at work as they do with their spouse, it would seem to be common sense not to limit yourself to speed dating before “wedding” yourself to an organization. But I can assure you that common sense is not commonly practiced when it comes to hiring.
Another common mistake is hiring for competency without assessing character. While competency allows you to determine whether someone has the skill set to get the job done, character tells you why and how that person will do the work. Education, previous work experience, endorsements, and testing can help ascertain if someone possesses the knowledge and skills necessary to be productive. But only time will reveal someone’s character.
People today are adept at the interview process. They can make a great first impression and easily grasp an understanding of an organization’s mission and values simply by perusing a website. However, a considerable amount of time and effort is required to peel back the personal layers and reveal the core of a person. Yet nothing is more important in the pre-hire assessment process than gaining an understanding of someone’s value construct. Someone’s values serve as the motivational force behind both their beliefs and their behavior. If a clear sense of values alignment between the individual and the organization is not present, then there is sure to be a conflict of values, which will result in lack of unity, poor relational connectedness, and limited productivity. There’s a saying that goes, “Hire character; train skill.”
Values help us understand what motivates an individual’s performance. By values, I am not merely referring to ethical values, although that is part of each person’s construct. I am also referring to functional values, or what valuation a person may place on certain critical elements that would lend themselves to productivity and emotional balance. Optimism, perseverance, resilience, self-regard, and role satisfaction all play a significant part in determining whether someone can perform at a high level in a sustainable fashion. This type of information is hard to come by in a behavioral interview process.
Behavioral interviews are conducted on the premise that a person’s past accomplishments are predictive of future success. Therefore, by asking the right questions about how the individual has addressed particular issues in the past, the interviewer can get a glimpse as to whether that person will be successful in similar settings in the future. The challenge is that while someone may very well describe a preferred behavior, the interviewer has little opportunity to determine whether the one being interviewed has the emotional health or values construct to actually act on what they recognize to be the most beneficial course of action. They may know the right answer, but will they do the right thing?
Likewise, rational intelligence testing and personality-based instruments provide little predictive value when it comes to ascertaining the likelihood of someone’s long-term success. Traits and tendency tools may show someone’s preferred response to specific situations. But a more beneficial approach is to determine someone’s values construct through the use of an axiological instrument.
Axiology is the study of values and value creation. It’s a strain of philosophy that explores the impact of values on thought processes, decision-making, and, ultimately, performance. The theory is that values form the foundation for all human motivation. People will act in accordance with what they deem will create the greatest value for themselves and others, depending on their orientation. A person’s values reveal their worldview, which is a powerful predictor of performance. Because how we view things ultimately drives how we do things. A values-based instrument can provide significant insight into how individuals view themselves and the world around them, as well as how they are likely to interact with others.1
Slowing the hiring process to ensure there is a character and chemistry match between the organization and the candidate is as important, if not more important, as making sure they are competent enough to fill the role. A values alignment and culture match is imperative. Hiring top talent is crucial to any organization’s success. Your people will ultimately determine the quality of your brand. Remember, the right people are the key to your success. If you get the people and culture pieces right, then everything else is pretty easy. But if you do not, then I can assure you that everything else you do will be much more difficult. Make sure you get your hiring practices right.
Organizations invest heavily in product development and process refinement. A lot of thought, effort, and resources are poured into offering a high-quality product that garners market attention. Manufacturing and supply distribution processes are constantly tweaked, eliminating waste and making operations more efficient. A great deal of time and energy are expended in quality control and supply chain management to constantly elevate the brand.
What is fascinating to me is how many organizations invest so little in developing their people. Ultimately, people are the greatest reflection of your brand. No matter how great your product or how efficient your processes, if your people do not interact with the customer in a way that engenders healthy relationships and stellar customer service, then all is for naught.
Two of my children presented a strong appeal to upgrade their phones just before the holiday season. The costs associated with the coveted telecommunications devices teetered on insanity. Parenthetically, I have to tell you that I relish conversations with them describing life before mobile devices. I find great amusement in their responses when I describe the days when mobile meant you could stretch the phone cord into the living room. Nonetheless, I succumbed to their pleas of feigned desperation. Fortunately, I did at least have the foresight to negotiate the phones to be their Christmas presents from my wife and me.
Though I thought I was adequately prepared, I still experienced sticker shock when they rang up the total for the two phones. I experienced momentary paralysis in my right arm when the salesperson asked for my credit card. But I prevailed and walked out of the store pleased with the fact that I had purchased their phones four weeks before Christmas. Shopping early for holidays and special occasions is not my preferred method of operation.
On Christmas morning, they were both ecstatic when they unwrapped their tiny boxes. But the excitement quickly faded for my daughter when she realized the phone I had purchased for her did not have the camera lens she had wanted. I was dismayed because I had been precise with the sales associate, describing in detail exactly the specifications my daughter had given me and was assured this was the phone she was requesting. Now, granted, I am a technological neophyte, but I assumed the salesperson knew what he was talking about. At least he certainly presented himself as being knowledgeable. And he assured me that she could return it if she wasn’t satisfied.
“No problem,” I told her. “We can just return it and get the one you had your heart set on.”
But when I called the store to explain the situation, I discovered that there was a problem. Evidently, buried in the small print of the twenty-plus-page sales agreement was a clause stipulating that, if not satisfied, the phone could only be returned within a thirty-day window. Well, that was problematic since I had purchased the phones four weeks before Christmas. Nevertheless, I was confident we could work something out with the provider that had sold me the phone. First, I had been a customer of that particular carrier for twenty-plus years. Second, the sales associate had obviously not been informed about product features and had clearly misled me. So, I strode back into the store to make the exchange. I wasn’t looking for a refund. I actually wanted to make an exchange for a more expensive phone.
So as not to bore you and to prevent another near stroke for me, I will spare you the details. But I am sure you can imagine. I got the proverbial runaround. I ran more circles than a hamster on a wheel chasing a suspended carrot. The people at the local store were less than helpful and turned more belligerent each time I stated the logic of my position and made an additional appeal. After all, how was I to exchange a present that hadn’t been opened by its recipient before the deadline? I calmly escalated my case as high as possible up the corporate ranks. Each person was less and less helpful. With no personal contact, what did they care? When they hung up the phone, they did not have to face me. In the end, those in customer service and their customer loyalty division remained steadfast, referring to the microscopic print on page fourteen of the sales agreement. After having me as a faithful customer for twenty years, they lost me. I chose to move to another carrier.
Now, to be fair, I should have read the sales agreement. But I doubt I am the only person who has ever forgone that mind-numbing exercise. And it was not really the small print that was the straw that broke the camel’s back. It was actually the way I was treated by the frontline folks in the store and those whose sole purpose for existence is supposedly to retain long-tenured customers. They were rude. They did not express empathy. Nor did they reflect any remorse. If their hands were tied, then fine. But they at least could have tried to relate to the absurdity of my plight and attempted to console me in my frustration. I had just spent nearly $1,000 on a phone that nobody wanted!
I have reflected on that situation numerous times over the past several months and still cannot wrap my head around it. This is a multinational company. They have state-of-the-art technology, just like everyone else. They have agreements with their providers to which they are bound. I get it. But what they lacked was substantial investment in their people. They had failed to provide adequate training for their team members. Those who interacted with customers were neither knowledgeable about product features and benefits nor well versed on the details of the sales agreement. I had been misled on both fronts. And not just by a single person. More importantly, they were relationally inept. They had no idea how to appropriately address a disgruntled customer. Or they just did not care. They did not adequately understand that their frontline folks are major contributors in building the brand, so the brand became tarnished in my eyes. And they lost a longtime customer!
When organizations fail to invest heavily in their people, they run a substantial risk. Top-tier companies understand how important it is to view their employees as brand ambassadors. They make substantial investments in the training and development of their talent. And that training is not merely based on increasing industry knowledge. They invest to help their people grow in every dimension of life. They know that if they can help them become better spouses, parents, coaches, and community leaders, then they will also become better and more productive team members.
Invest in your people so heavily that they become equipped to go anywhere and be successful. And love them so deeply that they would never want to leave. Then you will have a workforce that will strengthen your brand in the market and engender customer loyalty. Take care of your people and they will take care of your customers. Your customers will appreciate a respite from the hamster wheel and your team members will refrain from exiting through the revolving door.
Keeping Your Customers
Many companies struggle with client turnover in the same way they have a hard time holding on to good talent. If you want to retain your most valuable clients and create an allegiance among those you serve, then invest in them heavily and love them deeply. Investing heavily means spending the time necessary to get to know them well. And loving them deeply simply refers to making the effort to anticipate and meet their needs. The more deeply connected you are relationally with your customers, the more likely they are to stick around.
Horst Schulze is a name synonymous with stellar customer service. Most everyone knows him as the man who defined the luxury hotel experience through his long tenure as president of the Ritz-Carlton Hotel Company. As CEO of the Capella Hotel Group, he crafted a new category of service known as ultra-luxury.
One morning over breakfast, I asked Horst to explain the components of the ultra-luxury experience. His answer was so simple that it surprised me. According to Horst, people are looking for three things when they purchase a product or service. If you can deliver on these three expectations, then you can produce a quality experience people will want to repeat. Here are the three things you must remember if you truly want to engender loyalty among those you serve.
1. Don’t Make People Wait
Under Horst Schulze’s leadership, the Capella brand has adapted to the changing demands of the luxury customer. Revealing an interesting insight about the customer experience, he said, “When we opened our first Ritz-Carlton in 1984, we knew when customers checked in they didn’t want to wait longer than four minutes. . . . Now it’s become 20 seconds.”2 People do not like to wait; they grow impatient. You do not have to immediately meet their every need, but they do want someone to quickly acknowledge their presence. Whether they are putting their name in at a restaurant hostess station or asking for assistance on a phone call, people want some form of personal interaction. And the sooner you make the relational connection the better.
Few things are more frustrating than placing a call for help only to be greeted by an impersonal message requiring you to respond by pressing one of nine options on your touch screen. Then having to repeat the same process multiple times before you are connected to a breathing being. If you want to create raving fans, then be responsive. Return phone calls and emails promptly. Even if you do not have an answer or cannot resolve an issue immediately, let them know that their question or concern is a priority and that you are working on it.
Silence is deadly. If there is a vacuum in communication, people will often assume the worst. Communicate with your customer base quickly, regularly, and proactively. Acknowledge their presence and concerns. Empathize with them even if you cannot change the situation. The key is to simply be understanding and responsive.
2. Offer a Consistent, Defect-Free Product, and Make It Personal
People don’t expect perfection. What they do want is a comfortable and predictable experience. If they buy a bottle of water, it doesn’t have to be significantly different from all the other bottled water in the market. It just needs to be cold and the container free from leaks. Consistency is the key.
If a company has multiple locations, it’s critical that the brand experience be the same regardless of locale. People want to know what they can expect and have their experience be congruent with those expectations. According to Schulze, “A brand is a promise, and when you start making exceptions, you stop keeping the promise to the customer.”3
While offering a consistent and defect-free product seems rather mundane, what makes the experience exceptional is the insistence on making it personal. Team members trained by Horst Schulze will do whatever is necessary to deliver what the customer wants—as long as it’s not illegal, immoral, or unethical. They are taught to anticipate a customer’s need and do everything within their power to seek to meet that need. They are also given the freedom to use their better judgment to make the customer experience memorable. Schulze thinks it is immoral to hire people to fulfill functions. “A chair serves a function. We hire people to join us and be a part of a vision; their function is incidental. We hire human beings to be a part of a dream and to pursue a purpose,” Schulze says.4
3. Be Kind
Capella hotels are superior because the company hires people to work in an environment defined by belonging and purpose. It fosters a climate in which team members can deliver what the customer wants. Team members must have the freedom to do what is right in each situation and be trusted to use their best judgment. This requires superior knowledge and real leadership at every level throughout the organization, not only management. Capella does not just hire managers—it grooms leaders.
Kindness is the result of anticipating and responding to someone’s needs. It’s a hallmark of leadership. Horst smiled as he recounted the story of a night bellman who went with a guest to the hospital. It turned out the guest had appendicitis. The bellman stayed with him throughout the night to make sure he was cared for adequately. Such behavior is a reflection of the heart. And it is that kind of heart that sets an organization apart.
“We may not always be immediately present. And occasionally our offerings may not be defect-free. But one thing we can consistently provide is kindness,” Schulze told me. When referring to customer service, these words are more valuable than apples of gold in baskets of silver.
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