Author: Ronald Alsop

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The Last Word Cultural Awareness

Every week, two or three studies about lagging employee engagement cross my desk. But in analyzing this pervasive problem, rarely do the reports mention the significance of corporate culture in attracting and retaining the very best kind of talent: employees who truly fit the organization and will reinforce its values. Many people yearn to belong to an organization whose principles they share and can embrace in their daily work. And if corporate stewards tend the culture well, they can count on an engaged and committed workforce for many years to come. In fact, a survey of job seekers by the careers website Glassdoor.com found that about three-quarters rated culture just as important as salary.


Yet, many employers haven’t clearly articulated their cultural values. That’s what the Haas School of Business at the University of California at Berkeley realized a couple of years ago. To define what makes it distinctive, the school conducted focus groups and interviews with students, alumni, faculty, staff, recruiters and board members. After much discussion, administrators settled on four guiding cultural principles: Show “confidence without attitude”; be “students always” with a thirst for lifelong learning; “question the status quo”; and think “beyond yourself” by putting larger interests above your own.


The Haas School isn’t simply posting the principles on its website and classroom walls. The school is trying to weed out prospective students who aren’t a good match through application questions, recommendation letters and interviews. It also is encouraging employees to embody its principles in their work. Managers evaluate staff members on how well their behavior reflects the spirit of the Haas culture, and the school honors four employees each year whose performance best exemplifies one of the principles.


When employers try to define—or redefine—their cultures, it’s important to include workers from the top to the bottom of the organization. Even better, employers should mix it up, as the Cleveland Clinic did to create a stronger “patients first” culture of quality service along with quality medical treatment. In three-hour meetings, neurosurgeons debated the culture with cooks and parking attendants, reinforcing the point that they are all “caregivers who are in this together,” said James Merlino, the Cleveland Clinic’s chief experience office, in his presentation at a recent Conference Board event in New York. Staff members were astonished that physicians had to participate in the meetings, too; they were used to a hierarchical culture in which doctors were in a class above it all.


Once the culture is defined, razor-sharp communication becomes critical. Every employee must understand his or her role in delivering on the promise. What if some workers don’t embrace the culture? Merlino recommended a “zero tolerance” policy and cited a physician who was terminated for not providing the desired patient experience. “You have to focus on the disengaged employees who will bring down the mildly disengaged,” he said. “They’re toxic.”


Merlino realizes that the big challenge ahead will be sustaining the culture of patient service. Even employers with rock-solid cultures face that challenge. When Starbucks Corp.’s business slid and it had to lay off workers a few years ago, the company saw that employee engagement had suffered and that it needed to reinforce its people-oriented culture. It’s “renewal” program included storytelling by employees about positive customer interactions and surveys that revealed a need for more face-to-face feedback from supervisors.


These days, more employers are promoting a culture of ethics and social responsibility, which resonates with many people disillusioned by the corporate chicanery of the past decade. But they had better be able to walk the talk—otherwise, they risk suffering long-lasting reputation damage. Just consider BP. It portrayed itself as an environmental hero, an image that was seriously undermined by the disastrous oil spill in the Gulf of Mexico. The lesson: Define your culture, communicate it well and, above all, be sure you can live it in good times and bad. A robust culture can be the best protection against employee disengagement.


Workforce Management, July 2011, p. 42 — Subscribe Now!

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The Last Word: Fathers Figure

With Father’s Day fast approaching, many men will soon be celebrating the joys of parenting. But just how joyful do they really feel about the amount of time they spend with their children?

Certainly, men have made great strides since the days of the demeaning “Mr. Mom” stereotype. The number of stay-at-home dads has mushroomed—154,000 last year, double the total in 1994, according to the U.S. Census Bureau’s count. Some men also take short-term paternity leaves now, while others manage to do part of their work remotely to reduce hours spent in the office.

Yet despite such progress, many men still fear negative repercussions if they cut back on face time at work. In a new global study titled Men and Work-Life Integration, WorldatWork and WFD Consulting found that men feel more challenged than women in finding enough time for their families, even though they crave it just as much and often enjoy access to flexible workplace arrangements.

The study uncovered some troubling disconnects. More than 80 percent of the business leaders in the survey said they consider work-life programs important to talent recruitment and retention, as well as employee satisfaction and productivity. Even so, the majority also believe “the ideal employee is available to meet business needs regardless of business hours.”

Among all of the workers surveyed, there were conflicting results, too. More than 20 percent of the men and women in developed countries worried about being penalized if they used flexible work programs, but a smaller percentage said they actually experienced retaliation or other negative consequences. Employees in both developed and emerging countries rated their companies as fairly supportive of work-life integration, but at the same time, they felt they must be somewhat secretive when they adjust their work schedules for personal activities.

Although both men and women sometimes resort to such stealth behavior, Kathleen Lingle, the head of WorldatWork’s Alliance for Work-Life Progress, told me, “Men are more likely to go to their kids’ games and not say why they left the office early.”

I can understand the fears and secrecy. I was stationed in a corporate office in New York when my son was an infant and toddler, and I sensed hostility from some colleagues when I left in time to catch the 6:50 p.m. express train home and see him before bedtime. Part of the problem was that my supervisor and most others in my group didn’t have children. But there also seemed to be less tolerance in general for flexibility for fathers than for mothers.

Fortunately, I worked primarily from a home office as my son was growing up. I shared many extra hours with him, including attendance at nearly all of his baseball games, from third grade through most of high school. It was an experience I wouldn’t trade for anything.

But I’m the exception. Most men need greater support from their employers to feel comfortable about reshaping their work lives so they can enjoy fuller personal lives. A good first step: Provide a forum for more honest discussion. WorldatWork convened a group of men at a retreat in New Orleans this year, and some of the participants felt relieved to have a safe place to express concerns about work-life issues after keeping such thoughts bottled up at work.

To spur further conversation, WorldatWork and WFD Consulting are urging men to share their experiences in a men’s study dialogue on LinkedIn. The organizations also wish more corporate executives and human resources departments would encourage men to form their own employee resource groups where they could vent their feelings and trade information. Thus far, however, only a handful of companies, including Accenture and State Farm Insurance, have offered support groups specifically for men.

Corporate leaders also can affirm the importance of work-life balance through example. For instance, Cathy Benko, chief talent officer at Deloitte, tried to encourage the accounting firm’s executives to be more transparent by revealing her own little secret—the time she skipped a high-level meeting to shop at a big Nordstrom sale.

“We can send a huge signal,” she told me, “by our example, by not making excuses when we fit life into work.” Now let’s see some courageous male executives stand up and share their stories about ducking out early for a daughter’s dance recital or a round of golf. Greater candor just might go a long way toward giving men the confidence to take advantage of flexible workplace options.

Workforce Management, June 2011, p. 50 — Subscri be Now!

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The Last Word: Tapping Social Workers

Ford must be a good company because my neighbor likes working there.” That comment about Ford Motor Co. came from a respondent to a corporate reputation study I was the editor of a few years ago. Though it was simply put, the statement impressed upon me just how powerful employee word-of-mouth can be in forming favorable—or negative—perceptions. Indeed in a later reputation study, my colleagues and I found that 84 percent of respondents considered word-of-mouth messages from employees credible, compared with 75 percent for media coverage of a company and 70 percent for PR and advertising spiels. Only an individual’s own personal experiences with a company carried more weight than the words of its workers.

As this month’s story on employee “brand ambassadors” shows, companies can try to shape word-of-mouth messages to work to their advantage. They can encourage workers to become ambassadors of sorts to burnish their reputation as a good employer and corporate citizen, and to tout products and services. Of course, employers can’t be heavy-handed and dictate what people say.

But like PepsiCo Inc. and IBM Corp. in our article, companies can provide communication tools and suggested messages to enable employees to spread positive information to friends and family. And these days, employees’ reach can extend well beyond their inner circle as their tweets and posts ripple through the blogosphere and social media networks.

Yet, because of the untamed nature of social media, companies increasingly view employee communication to the outside world with more wariness than eagerness. They worry that workers are more apt to gripe about them than glorify them on Facebook, Twitter or YouTube.

A recent study by Forrester Research Inc. indicates that, unfortunately, employers’ fears appear to be well-founded. The survey of 5,519 workers in North America and Europe found that critics far outnumber cheerleaders. When asked whether they would recommend a job at their employer to a friend or family member, 27 percent were classified as promoters; 29 percent, neutrals; and 43 percent, detractors. As for touting their company’s products and services, 27 percent were promoters; 24 percent, neutrals; and 49 percent, detractors. Forrester observed that, “It’s entirely possible that the struggling economy has kept disgruntled workers in their jobs longer than normal, artificially depressing scores.”

Which employees are most likely to sing the praises of their company? North American workers, senior managers, and employees in sales account management, retail sales, finance and human resources, according to the Forrester study. And in North America, technology mavens tend to be among the most ardent employee advocates. For example, nearly half of respondents who use social media tools for work were promoters, compared with only 31 percent of nonusers.

But it takes much more than technology to create employee evangelists. A vibrant culture is what truly inspires workers to crow about their companies. When I wrote my book The 18 Immutable Laws of Corporate Reputation: Creating, Protecting and Repairing Your Most Valuable Asset, I found that the most revered companies understood the value of a distinctive culture and clearly defined mission in engaging employees and making them their reputation champions.

At FedEx Corp., committed workers proudly brag about the “purple blood” in their veins (a reference to the color of the corporate logo) and their dedication to customer service. Similarly, enthusiastic employees helped make Ben & Jerry’s Homemade Inc. world famous for its culture of social and environmental activism and a playful workplace atmosphere.

While researching my book, I also discovered that some companies tried to promote positive word-of-mouth long before corporate intranets and social media existed. In fact, a century ago Goodyear Tire & Rubber Co. posted signs throughout its offices and factories with the simple dictum: “Protect our good name.”

In an advertisement in the Saturday Evening Post in 1915, F.A. Seiberling, then president of the tire maker, vividly described how the company’s reputation was linked with that of its workers: “Stripped to the waist, his huge torso streaming with sweat, a workman swings the heavy iron core to an iron table, and wrenches off a tire, which has just come steaming from the heater. His eye falls on the legend over his head, and he smiles. Our good name is also his good name. The two are intertwined. He will protect the one, while he subserves the other.”

Workforce Management, May 2011, p. 50 — Subscribe Now!

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The Last Word: The New College Try

As I write this column, I am caught up in the annual March Madness. No, not the nail-biting thrill of college basketball games. I mean the nail-biting anxiety of the college admissions game.

Like most high school seniors right now, my son is closely monitoring his email inbox for admission decisions. By the time you read this, he and most of America’s Class of 2015 will have learned their fates.

Nervous applicants are well-aware that the competition to get into top-rated colleges couldn’t be fiercer. Many schools say they are screening more high-caliber applications than ever before and are feeling a bit overwhelmed by the volume—as many as 30,000 candidates for 1,500 or fewer spots. Stellar SAT scores and near-perfect grades no longer guarantee access to a prestigious university; thousands of students can claim those credentials.

Admission decisions may hinge instead on the cleverness of an application essay, high school leadership experiences or a particularly glowing letter of recommendation. Oh, and it doesn’t hurt if there’s an alum in the family. Brown University even acknowledges the value of legacies on its website: “Brown takes into account the natural affinity for the university that often emerges among family members of our graduates. In particular, we will note when an applicant has a parent who has attended Brown.”

I realized just how cutthroat the admission process had become when my son and I attended a college information session last summer in Massachusetts. It’s all about “the strategic packaging of yourself,” the admissions official said. “This is no time for humility.”

All of which got me thinking: How much does your alma mater really matter to employers—and to your career?

Quite a lot, it seems. Studies by economics professors have shown that prestige pays. Graduates of Ivy League and other elite colleges tend to command premium salaries throughout their careers compared with their counterparts from other schools. What’s more, they form valuable lifelong connections with their classmates and the school’s powerful alumni network.

Alumni relationships and college reputations can strongly influence talent recruitment. I once interviewed a frustrated recruiter at Johnson & Johnson who faithfully interviewed students each year at the University of Pennsylvania’s Wharton School. Although she usually returned to J&J with few, if any, hires, the company’s senior executives, some of whom were Wharton alumni, insisted she continue to visit the Ivy League school. No matter the waste of time and money. J&J simply couldn’t resist the allure of Wharton’s reputation.

When I was editor of the Wall Street Journal‘s MBA rankings, I was fascinated by the mixed feelings that recruiters harbored toward Harvard Business School. While most Harvard MBAs land in the top echelon of companies with enviable salaries and signing bonuses, many of the recruiters we surveyed complained about their arrogance and excessive expectations. “Eat some humble pie,” one recruiter advised Harvard students, while another called them “poor team players.” But in the end, the Harvard name usually trumps such sour feelings.

Some schools play down the significance of a brand-name diploma. Robert Clagett, dean of admissions at Middlebury College in Vermont, sent emails in March to applicants’ parents, just a few days before announcing the winners and losers in the competition for its 690 coveted freshman-year slots. He wanted to prepare parents for possible bad news by trying to put things in perspective.

“Ours is a culture that attaches enormous significance to where we go to college,” he wrote. “In this country we are blessed with hundreds, even thousands, of first-rate institutions of higher learning which provide wonderful opportunities for our children to expand their intellectual horizons. Sadly, too often there is a perception that only a small fraction of those institutions are ‘good enough,’ as if they alone have some kind of a magic formula about how to educate young adults.” But he concluded on an upbeat note: “The fortunate reality is that almost all students end up attending a college where they are happy and where they thrive.”

I completely agree. My four years at Indiana University were among the very best of my life. I feel confident that my son’s college years will be richly rewarding, too, and that he will end up in a satisfying career—no matter which school he chooses. Still, I can’t help but share his anxiety as he waits to find out which schools chose him.

Workforce Management, April 2011, p. 34 — Subscribe Now!

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The Last Word: Pride vs. Prejudice

Little League Baseball obeys a court ruling and admits girls for the first time. The first black model graces the cover of Vogue. Amid much controversy, the first women are ordained as Episcopal priests. And the first bill to protect gay individuals from employment discrimination is introduced in Congress.

That was America in 1974—a time when barriers to equal opportunity were falling fast. Unfortunately, one of them didn’t fall—and still hasn’t. More than 35 years later, gays cannot count on federal protection from discriminatory employment practices. Indeed, gays who were just beginning their careers back in 1974 are still vulnerable to workplace homophobia—even as they now near retirement age.

This month’s lead Outfront article explores how, once again, gay advocacy groups plan to push for passage of the Employment Non-Discrimination Act, or ENDA. Given the more conservative makeup of the current Congress, this still might not be ENDA’s year. But gay employees can take some comfort in the fact that corporate America has proven to be more enlightened and progressive than many lawmakers.

The vast majority of Fortune 500 corporations have added sexual orientation to their nondiscrimination policies, and a growing number are including gender identity, as well. What’s more, roughly 80 major employers have publicly pledged their support for ENDA. Aside from the basic issues of equality and fairness, many companies realize that a diverse workforce is critical to success both in attracting talent and marketing their products.

As Rick Moran, executive sponsor of Cisco Systems’ gay and transgender employee network, told Workforce Management: “We know that when we’re going out recruiting, a lot of employees, especially our younger employees, are looking for what our policies are on inclusion and diversity. So, we are pretty forward with that. We also know that a lot of our customers have very strong diversity practices, as well. They often come to us and ask what our inclusion and diversity policy is, so it’s very important from a business perspective.”

Some companies specifically target potential gay recruits. A few years ago, I attended the annual Reaching Out MBA conference at Columbia University, where representatives of such blue-chip companies as Citigroup, Ford, IBM, and McKinsey networked with gay students from across the country. S.C. Johnson & Son, the household products-maker, even invited students to interview for brand management jobs during the conference.

More companies also aim advertising at the gay community, but it isn’t enough simply to create a rainbow campaign featuring same-sex couples. Savvy marketers realize many gay consumers check out corporate workplace ratings before buying. The Human Rights Campaign, for example, compiles Corporate Equality Index scores and lists them in its Buying for Workplace Equality guide. The scores are largely based on employment practices, including nondiscrimination policies, partner benefits and diversity training. Deloitte, Subaru, DuPont and other companies issue news releases when they rate a perfect 100 in the equality index; a few big brand names, including Starbucks and Coors, have even touted their diversity policies in advertising targeted to gay consumers.

Gay-inclusive employment policies can influence not only consumers, but also business customers. In a recent survey of 1,400 gay business managers by the research firm Community Marketing, 70 percent said they would likely give preference to gay-owned or gay-friendly vendors when making purchasing decisions. It isn’t surprising then that companies sometimes enlist members of their gay employee resource groups to help with their business-to-business marketing.

To be sure, some companies remain skittish about being too visible in their outreach efforts. There’s always the risk of a boycott. I once wrote an article about Subaru’s gay-themed ad campaign. The same day the story was published, a right-wing group threatened to boycott the automaker, but the protest never gained any steam. Just last year, the American Family Association announced a boycott of Home Depot because of its support of gay pride festivals. The conservative organization took to calling the retailer “The Homosexual Depot,” but the company didn’t cave to the cheap shots.

Regardless of ENDA’s fate, it’s the corporate trailblazers who will continue to have the greatest impact in making gays feel welcome and safe at work and in expanding their career opportunities. Employers can’t necessarily change people’s deep-seated prejudices, but senior executives can make it clear that there is zero tolerance for bias and bullying within their workplaces. Meanwhile, let’s hope that ENDA becomes law before yet another generation of gays retires from the workforce.

Workforce Management, March 2011, p. 42 — Subscribe Now!

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The Last Word: Youth and Consequences

Some cynics have taken to calling today’s teenagers and 20-somethings “the lost generation.” They believe unemployed and underemployed members of the millennial generation will never recover—financially or emotionally—from the deep recession.

It’s a pessimistic view that I don’t share. I will acknowledge that some scarred millennials have retreated back home to their parents, and those young people spend more time on social networks chatting with friends than using the same social media to reach out to potential employers. But I believe many other millennials can be highly resourceful. They will keep banging on employers’ doors and may eventually try starting their own enterprises if companies continue to reject them.

Although millennials may not possess the same intense work ethic as baby boomers, they have set very high expectations for themselves. That’s why the abysmal job market came as such a shock. Used to succeeding by doing all the right things, millennials assumed attending a good college and achieving a high GPA would just naturally result in a fabulous job. Unemployment was unthinkable.

Unfortunately, it has turned out to be quite real and far-reaching. Last December, the U.S. unemployment rate for 16- to 19-year-olds was a stunning 25.4 percent, and for 20- to 24-year-olds, the rate stood at 15.3 percent. In some countries, the jobless rate for millennials is even higher. Spain’s youth unemployment rate topped 40 percent last year, and it exceeded 30 percent in Greece, according to a report by the Organisation for Economic Co-operation and Development. Addressing the urgency of global youth unemployment last month, Manpower Inc. chairman and CEO Jeffrey Joerres recommended more training programs, more incentives for entrepreneurship and more aggressive promotion of skilled trade careers.

At least for well-educated millennials, the job market is starting to loosen up. Our story this month about the MBA recruiting rebound offers hope, but many recruiters are only in hot pursuit of the best and brightest at the top tier universities. Students at many colleges and business schools still struggle to find any job; too often they wind up in positions that don’t match their qualifications. What a dramatic change from little more than a decade ago. When I was writing about business education at the tail end of the dot-com boom, recruiters were showering MBA students with rich signing bonuses, stock options, tuition reimbursement, mortgage assistance, luxury car leases and other goodies.

I understand why many cautious companies remain reluctant to hire anyone of any age until the economic recovery really takes hold. Yet, such thinking is shortsighted. Employers should realize how much is at stake if their future talent becomes discouraged and feels disenfranchised. Ultimately, companies will desperately need millennials to fill the void left by retiring baby boomers. They can’t afford to let this generation drift and delay the professional seasoning they will need to thrive and mature into strong leaders.

At the very least, employers should consider creating more internships for high school and college students as well as recent graduates. It’s an inexpensive, risk-free test-drive that lets both employer and prospective employee check each other out and decide whether they’re a good fit before considering a more permanent arrangement. Some smart companies have continued to make internships the focus of their recruiting strategy because they know it’s a terrific matchmaking tool. Steve Canale, a recruiting manager at General Electric Co., declared to Workforce Management: “If I had my budget slashed and only had $100 to spend, I’d spend it all on my internship program.”

The winner of the Workforce Management 2010 Optimas Award for financial impact also clearly believes in the value of a well-crafted internship strategy. To attract technology superstars, Ultimate Software Group Inc. offers students challenging internships in software development and maintenance. The program is so successful that the company boasts a 100 percent rate for converting its best interns into full-time hires.

For most students, intern recruiting is just getting under way, but I welcomed an intern to Workforce Management last month. James Walsh, who joined the editorial staff as part of the journalism residency program at Northwestern University’s Medill School of Journalism, will write and edit stories for the magazine, website and newsletters this winter. I look forward to his contributions and the chance to help him gain valuable experience in today’s turbulent media business. Indeed, for me, it was an internship that launched my career in business journalism a few decades ago when the summer job turned into a full-time reporting position at The Wall Street Journal.

Workforce Management, February 2011, p. 42 — Subscribe Now!

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The Last Word: Stewing in Silence

Nearly 35 years ago in the satirical movie Network, television newsman Howard Beale exhorted his viewers to open their windows and yell the now-famous line: “I’m as mad as hell, and I’m not going to take this anymore.” Today, I’m sure many workers would love to bellow those same words to their bosses. Trouble is, they’re too afraid to speak up in this still shaky job market.

Overworked and overstressed, many employees are frustrated and frightened. They feel they have little control over their work lives and, even worse, little hope that things will get better anytime soon. Moreover, they worry about reprisals and job loss should they vent their feelings. Certainly, the employee-employer bond has been fraying for many years, but it seems more tenuous than ever.

The opening two feature stories in this month’s magazine illustrate the plight of fatigued, disgruntled employees and the risks of spouting off about workplace grievances, even on personal social networking sites. It’s noteworthy that two employees quoted in the stories requested anonymity to avoid any flak from supervisors.

In a widely watched National Labor Relations Board case about an employee who was fired for bad-mouthing her boss on her Facebook page, an administrative law judge should soon clarify how far workers can go in letting off steam. But no matter what the decision, companies understandably don’t want employees trashing them—especially in public. Research has shown that employees can be extremely influential in shaping the public perception and reputation of the companies where they work. One way to discourage negative word-of-mouth is to assure employees that they can speak frankly to managers about their workload and other stressors without negative consequences.

Clearly, there are plenty of workplace stressors these days. Many of the employee surveys that cross my desk repeat the increasingly familiar themes of feeling overworked, unappreciated or underappreciated, disengaged, depressed and restless. In two surveys earlier this year by Manpower Inc.’s Right Management talent development business and LinkedIn, 79 percent of employees reported heavier workloads because of layoffs, and three-quarters said they almost always put in more than 40 hours a week. The rank and file aren’t the only ones with bigger burdens: In surveying supervisors, Robert Half International Inc.’s OfficeTeam staffing division found that nearly one-third of them are not taking extra time off between Thanksgiving and New Year’s Day.

How long will restive workers put up with the fatigue and fear? It’s unlikely that many will bolt soon because, as this month’s Data Bank feature shows, landing a new job today often means accepting lower wages. But as the economy strengthens, companies will likely see some of their top talent depart. In its Global Workforce Study this year, the consulting firm Towers Watson & Co. found that half of the workers didn’t see any career advancement opportunities in their current jobs, and 43 percent said they believe that they must change employers to move to a higher-level position. Even so, 81 percent said they weren’t actively seeking a new job—at least not now.

To prevent a talent drain, farsighted managers will no doubt figure out ways to relieve the stress and motivate their best performers to stay put. Some employers are trying to prevent burnout by limiting the number of work hours and even requiring that lunchtime be spent outside the office. Others are helping employees set reasonable goals and priorities to avoid feeling overwhelmed. Perhaps the most valuable strategy is to make employees feel valued and help them see opportunities ahead.

In choosing the winners of this year’s Workforce Management Optimas Awards, I noted that several entries demonstrated the powerful impact of employee engagement efforts on morale and retention. IBM Corp., for example, won the award for Global Outlook because of its worldwide Blue Opportunities initiative that enables employees to explore new roles in different parts of the company. Before instituting the program, IBM had been disturbed to learn that workers were leaving because of a perceived lack of career growth options.

The much smaller Planned Cos. received the Optimas Award for Vision in recognition of its online School of Professional Development that has helped reduce turnover among its employees in janitorial, concierge and building security services. President and CEO Robert Francis says that the school sends the message to workers that, “We value you. We’re proud of you.” That’s exactly the sort of sentiment that could comfort tired, tense workers at many companies right now.

Workforce Management, December 2010, p. 42 — Subscribe Now!

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The Last Word: Where’s the Customer Service?

Are companies trying to drive away their best customers? That may sound absurd at a time when many marketers are struggling to survive. But that’s what I wondered after having endured some of my most horrendous customer service—or rather disservice—experiences ever.

Relocation really exposes you to the good, the bad and the ugly side of customer service. Unfortunately, in my move to Chicago from New Jersey, I have mostly seen the ugly side these past few months—interminable delays caused by back-ordered merchandise and delivery scheduling snafus, shipment of damaged goods or products I didn’t order, false promises and even outright lies. The culprits include some of America’s biggest retailers and a telecommunications giant.

Managers, it seems, have taken their eyes off their most important employees—front-line folks who can either be their best brand ambassadors or worst nightmares. Clearly, companies have responded to the recession by cutting costs in ways that damage customer relationships. Many have pared call-center staffs, reduced training and failed to empower employees to make customer-friendly decisions on the spot.

I wasted hours in the telephone hell of electronic prompts, not knowing whether I would ever end up speaking to a real employee. When I did finally connect with consumer-relations representatives, they usually communicated poorly because they were following a script or were outsourced workers with little command of the English language. After one particularly vexing experience with an electronics retailer, I really cringed when the employee wished me “a wonderful evening.”

Making matters worse, marketers also have trimmed inventories so much that merchandise may be on eternal backorder. And as for product delivery, companies have cut their own teams of drivers or outsourced the job to vendors with no vested interest in their brands’ reputations.

Recently, I talked with some customer-service experts to glean their insights about recession-related problems. With layoffs, a heavier workload and fewer financial incentives, salespeople and shipping clerks may feel less motivated to deliver top-notch service and may be prone to make more mistakes. That’s the opinion of Robert Dewar, associate professor of management and organizations at Northwestern University’s Kellogg School of Management. “You also might put in the wrong product code because of stress and anger,” he says. “You can’t hit your boss, but you can take it out on customers.”

David Koehler, a clinical assistant professor of managerial studies at the University of Illinois at Chicago, blames inadequate training. “Companies are being penny wise, dollars foolish,” he says, “by not training employees properly and not teaching them to offer dissatisfied customers an appealing compromise, like something of better quality at the same price.” Companies mistakenly believe a bit of green can mend relationship rifts. Because of the inconveniences they caused, one company mailed me a $25 gift card while another provided a $25 credit on my wireless bill. Of course, the cost of losing a loyal customer is far higher than a puny $25 penance. The rule of thumb: It costs at least five times as much to attract a new customer as to keep an existing one. That doesn’t include the cost of losing additional customers and potential prospects because of the reputation damage from negative word-of-mouth communications.

The one bright light in my season of wretched service was Apple. Not once but twice the company delighted me with impressive service. First, the tech experts at the Genius Bar at Apple’s Short Hills, New Jersey, store salvaged my teenage son’s ailing laptop. Then during a telephone consultation, technical advisers resolved a stubborn problem I had created in moving my Time Capsule data backup device to a new Internet connection. What’s more, Apple was one of only two companies that followed up with a customer satisfaction survey.

“It isn’t enough to have nice people on the phone,” human resources consultant Jay Weiss of Rochelle Park, New Jersey-based JGI Inc., told me. “Apple hires smart people and gets its money back in customer retention.”

I already was a fan of most Apple products; now my customer loyalty is rock solid. My one beef with Apple: lack of choice in the wireless service provider for my iPhone. Apple could at least teach AT&T a thing or two about training customer and technical service staffs.

Please share your customer service experiences with Ron Alsop, ralsop@workforce.com. He will post the best comments online.

Workforce Management, November 2010, p. 50 — Subscribe Now!

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The Last Word All Work and No Play ..

Playforce Management. That would be our magazine’s title in the kind of world that people like Josh Linkner envision.


“ ‘Work’ is such a negative-sounding word,” Linkner said at a presentation I attended last month about innovation. The founder and CEO of the promotions company ePrize, Linkner also writes a blog about creativity on his website, www.thecreativitygeneration.com. “As kids, we go out to ‘play.’ Later in life, we ‘play’ sports or ‘play’ music,” he writes in one posting. “But then in sharp contrast, we leave our homes each day and go to ‘work.’ The term implies doing uninspired, often boring and generally yucky things.”


Linkner thinks it would be much nicer to say you are “running off to play” and to hear your spouse respond: “Have a nice day at the playground.” Consider “playing” out a conflict, he suggests, or “playing” through your next tough business challenge.


His message certainly would resonate with members of the millennial generation, some of whom expect the freedom to shop online, listen to iPods and even take naps at the office. But it also makes me wonder whether all generations might appreciate mixing some play and relaxation into the workday. Indeed, for many people, “work” is the antithesis of the fun, freedom and creativity they experienced as children. So why don’t we try to make work feel more like play?


The notion of play in the workplace may sound zany, but it’s really just one perspective in the long-standing debate over how to achieve balance in our lives. While some people think of balance as flexibility in managing both their personal and career demands, advocates of mixing work and play want something more holistic. They don’t want to segregate their personal and professional worlds; they hope to meld those worlds so they don’t have to leave part of themselves behind when they walk through the office door. What they seek is a blended life.


Companies ranging from online retailer Zappos.com (“create fun and a little weirdness”) to Southwest Airlines Co. (“fun-luving attitude”) have made playfulness part of their corporate cultures. But Google Inc. is perhaps the paradigm for blending work and play. It has received abundant attention for letting employees at its Mountain View, California-based headquarters get a massage, take yoga or dance classes, and play a tune on the piano or a game of pingpong. Employees also can take care of personal chores such as getting oil changes for their cars or dropping off their dry cleaning at the Googleplex. That environment has helped make Google the dream employer for many college students. Understandably so. I must say that it was fun dining on gourmet goodies and taking a spin on a scooter when I made a presentation last year at Google’s New York City office.


While Google may have taken fun in the workplace to greater lengths than other companies, it actually followed the lead of earlier pioneering efforts. For example, the software company SAS Institute Inc. has long offered personal perks at its North Carolina campus. In profiling the company in this month’s issue, Janet Wiscombe describes the company’s on-site child-care center, medical-care facility and beauty salon. Employees can play water polo at the fitness center and natatorium, take time to view the extensive SAS art collection or meander along the 1.8-mile “bluebird trail” with its 25 birdhouses. Such leisure activities have helped foster enduring loyalty and very low turnover at SAS.


It’s critical that corporate play be spontaneous, not forced fun. I’m not sure forming “happiness committees” to plan social events and team-building activities is the right strategy. Employees don’t want to feel pressured to wear silly hats or form a conga line and dance through a maze of cubicles. What many would relish is the freedom to take a break when they need to recharge and enjoy their employer’s recreational amenities.


There’s certainly plenty of talk these days about employee engagement in an era of frozen salaries, furloughs and frenzied workloads. Play may be the most engaging approach of all in this stressful period of job insecurity and burnout. If companies would lighten up a bit, everyone might just be happier and more productive. Play isn’t meant to distract from job responsibilities, but rather to rejuvenate. After all, if we’re more playful and laugh a little more, isn’t it likely we’ll be more creative and innovative as well?


Workforce Management, October 2010, p. 50 — Subscribe Now!

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The Last Word Our Mission

Welcome to the start of a new journey for Workforce Management.


I am just settling into my position as Editor, so this issue of the magazine was well under way before I arrived. But even in these pages, I have worked with my staff to shape and fine-tune stories to ensure that they are sharply focused, descriptive and insightful. I plan to build on Workforce Management’s heritage by bringing even more depth, creativity and discipline to the magazine, website and e-newsletters. I want our writers to be enterprising and to report richly detailed, timely stories about trends and innovations that will help you manage your workforce.


In this issue, Ed Frauenheim’s vivid piece on American Express reflects the kind of storytelling you can expect to see regularly. We will show you how companies are managing their workforces, not simply tell you. Ed takes you inside the company’s customer call center in Phoenix and shows how new talent management practices are changing the culture and motivating employees to deliver outstanding customer service.


We also plan to conduct more original research and enhance our website both in content and design. Although I grew up in the newspaper business, I am enthusiastic about new ways to communicate and have avidly participated in podcasts, online videos and webinars, as well as created my own website. Yet even as the publishing world evolves in new directions, I believe content will remain king—whether the medium is print, digital or some as yet unknown technologies. People will always be hungry for illuminating information that puts their world in perspective and provides solutions and best practices.


Now that the economy is slowly reviving, executives and managers face immense challenges in attracting and retaining talent. Among the pressing issues we will regularly address in Workforce Management: how to recruit and manage demanding Millennials as baby boomers walk out the door—or get pushed out; how to groom top performers for leadership roles; how to accelerate the drive toward greater diversity, especially in the upper management ranks; how to re-engage disaffected employees and cultivate at least some degree of loyalty after this bruising recession; how to help employees achieve balance in their work and personal lives, while still minding the store; how new technologies and outsourcing could make HR operations leaner and more agile.


I have been closely following workplace issues since my days at The Wall Street Journal when I interviewed dozens of HR professionals and senior executives about such topics as the challenge of finding candidates with strong communication skills and transforming managers into leaders. While writing my book The 18 Immutable Laws of Corporate Reputation, I learned about the critical role employees play in reputation management and the galvanizing effect of a stellar reputation on workers’ performance. I became even more immersed in workforce issues when I researched my book The Trophy Kids Grow Up: How the Millennial Generation Is Shaking Up the Workplace. I discovered just how daunting the mix of four generations is proving to be and how some companies are creating more harmony between the Millennials and their elders. You will notice that several articles in this issue touch on the Millennial Generation—your future workforce.


Soon after I became editor of Workforce Management, I had dinner at an Asian restaurant in Chicago and found this message in my fortune cookie: “You have a great ability to focus on the big picture and not get lost in the details.” I will indeed keep my eye on the big picture, but in journalism details matter too. So I will also be vigilant about the content of every article and will always strive for accuracy, fairness and balance. We will provide expert interpretation and analysis backed by thorough reporting and will never let personal opinions seep into articles. Finally, I want to hear from you in letters, e-mails and comments on our increasingly interactive website. Throughout my career, I have valued readers’ reactions to my work. In fact, it was the strong reader response to a newspaper column I wrote about the Millennial Generation that inspired me to undertake The Trophy Kids Grow Up. So get in touch—and consider meeting me virtually on September 15 for a webcast about managing the Millennial Generation.


Workforce Management, August 2010, p. 34 — Subscribe Now!