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Cordialism 
How the best companies lose their flavour. 
Erik Vermeulen 
Behavioural Economics Strategist 
#cordialism
What we’ll cover today… 
How we lose 
our flavour. 
Getting the 
flavour back. 
The HR / 
Marketing 
Partnership
What do you think when you see…
What do you think when you see…
What do you think when you see…
What does history tells us…?
“The world is changing very 
fast. Big no longer beats small. 
It’s now the fast beating the 
slow.” 
Rupert Murdoch, Chairman and CEO News Corp
Companies today are most worried 
about… 
EXPERIENCE & ENGAGEMENT 
People will judge your organization by the 
experience they or an acquaintance have with 
your brand 90% of the time and only 10% or less 
by the marketing messages they’ve heard.
Companies today are most worried 
about… 
EXPERIENCE & ENGAGEMENT 
Companies who SAY that they’re great at 
customer service often aren’t. The same 
goes for the message “our people are our 
most important asset.”
Companies today are most worried 
about… 
EXPERIENCE & ENGAGEMENT 
This represents the internal and external 
duality of successful companies in the 
experience economy. 
Engaged employees provide the best 
experiences.
No marketing campaign will convince 
someone you’re great at service when 
they’ve had a lousy EXPERIENCE 
from a disengaged employee that 
demonstrates the opposite.
How do 
we lose 
flavour?
Your Company
Your Idea
Your Ideal Mix
Your Growth 
• More people 
• More systems 
• More processes 
• More control(s) 
• Different backgrounds 
• Different behaviours 
• Different goals 
• Different motivation 
• …
Reputation = Experience - Expect
Your diluted Flavour
Why is company culture 
important?
In 1995, the 
average person 
had 27 
connections. 
In 2015, the 
average person 
will have 
415 
connections.
Right now, Gen Y outnumber 
Baby Boomers, 
96% belong to Social Networks
68% of customers 
leave because of poor 
employee attitude
41% of customers are 
loyal because of a good 
employee attitude
70% of customer brand 
perception is determined 
by experiences with people
Your marketing department 
does not own your brand or 
your culture, it belongs to the 
collective behaviour of your 
employees.
Delivering a consistent 
experience 
Training 
People & 
Behaviour 
Business 
principles 
New Product 
Development 
Internal 
communications 
Annual Report 
Website 
Packaging 
look-and-feel 
Special 
promotions 
Customer 
Communications 
Billing 
Experience 
Office design, e.g. 
Experience Centre, 
Call centres 
Product line 
alignment 
Retail outlet 
design 
Signage & Way 
finding 
Collection 
points, pre-paid 
kiosks 
Employer 
Brand 
Leadership 
behaviours 
Service 
standards 
Marketing & 
Communications 
Products 
& Services 
Environments 
Naming 
After sales 
service
The HR - 
Marketing 
Partnership?
Discovery Health 
“When you need us, we're there for you” 
Promise: Consistent support and peace of mind 
Look & feel: Caring, modern, simple 
Why successful? 
Has the highest ratings for claims-paying ability 
Largest and most secure brand – leverage their size to deliver access to quality 
healthcare 
How differentiated? 
Empowers its customers to have a healthier lifestyle by providing them with the 
necessary tools through its trendsetting wellness programme, ‘Vitality’ 
Offers unique products with better benefits and claims lower prices than its 
competitors 
Brand Learning: Discovery maintains consistency throughout the brand, a caring feel, 
and provides more than just ‘healthcare’ to its customers. Their high claims-paying 
rating proves that they make good on their brand promise 
28
Experience Spectrum 
REACH CHOCOLATE HAPPY FAMILIES STANDARDS WINNING 
Tangible 
Intangible 
PHYSICAL 
CHARACTERISTICS 
What it is 
FUNCTIONAL 
CHARACTERISTICS 
How it performs 
BRAND CHARACTER 
How it expresses itself 
EMOTIONAL 
CONNECTION 
How it makes you feel 
EMOTIONAL 
PROJECTION 
What it says about you
Success = Growth = Employees 
Engaged employees work with 
passion and feel a profound 
connection to their company. 
They drive innovation and 
move the organization 
forward. 
Actively 
Disengaged 
employees aren’t 
just unhappy at 
work; they’re busy 
acting out their 
unhappiness. Every 
day, these workers 
undermine what 
their engaged co-workers 
accomplish. 
Not Engaged 
employees are 
essentially “checked 
out.” They’re 
putting in time — 
but not energy or 
passion — into 
their work.
Success = Growth = Employees 
10% of employees 
are poor performers 
10% of employees 
are top performers 
The other 80% are 
fence sitters and 
just get on with 
being “vanilla” 
Who do you want 
influencing your new 
employees?
HCM Performance Drivers 
Internal 
Service 
Quality 
Wellness 
Engageme 
nt 
Strategic Design 
HR Policies and Procedures 
HR Automation: 
• Forecasting 
• Staffing 
• Scheduling 
• Succession 
• Culture / Process 
Alignment 
Employee 
Engagement 
Employee 
Retention External 
Employee 
Productivity 
Service 
Value 
Customer 
Satisfaction 
Customer 
Loyalty 
Revenue 
Growth 
Profit 
Growth 
Market 
Share 
Attitude / Loyalty 
Knowledge / Skills 
Build Relationships 
% Growth 
Customer 
Testimonials 
1 year 
5 Years 
Service concept: 
• Consistent 
• Intentional 
• Different 
Value to customer 
Better than last visit 
Better than competition 
Lifetime Value 
Retention 
Repeat Business 
Referral 
Strategy & Compliance 
Recruit for Talent 
Talent Development 
Talent Retention 
Reward
>Employees = >Diversity
Flavour? What flavour?
“The goal is not to do business with 
everybody who needs what you have. 
The goal is to do business with 
people who believe what you 
believe.” 
Simon Sinek
Brand 
strength 
Challenge 
Building advocacy 
5 Advocacy 
I believe in what we do and I 
recommend our brand 
4 Action 
I know what I can do to 
support our brand 
3 Ability 
I have the skills and 
knowledge I need 
2 Attitude It makes sense to me 
1 Awareness I know what we stand for
“We change behaviour by framing what 
we want people to do into something 
that is relevant to them.”
The ‘new’ culture should not be 
seen as ‘new’. It should be seen 
as a business case that rests on 
doing what’s required to meet 
the future demands of our 
clients.
5 ways to 
get your 
flavour 
back.
1. Get the right people on board 
(achievements are useless without context)
MEN WANTED 
For a hazardous journey. 
Small wages, bitter cold, long 
months of complete darkness, 
constant danger, safe return 
doubtful. 
Honour and recognition in case of 
success.
2. Give people PURPOSE 
(beyond pleasing)
Yesterday, today, tomorrow… 
The way people define themselves has changed. 
Very long ago: Man / Woman 
Long ago: Hunter / Gatherer 
Recent: Skills (industrialisation) 
Today: Career 
Tomorrow: Meaning people add or create.
The Golden Circle 
WHY? 
At Apple we believe in 
challenging the status quo, in 
thinking differently. Making a 
dent in the universe. 
HOW? 
To challenge the status quo, we 
make sure our products are 
beautifully designed and easy 
to use, and user-friendly. 
WHAT? 
We sell computers, laptops, 
cellphones, tablets etc that are 
highly stylised and consumer 
friendly. 
WHY HOW WHAT
3. Get people ENGAGED 
(get them to give a damn)
21% 
Engaged 
41% 
Enrolled 
30% 
Disenchanted 
Significantly lower 
on all three 
components of 
engagement 
High scores on 
rational and 
motivational 
components, but 
low on emotional 
That’s only 1 in 5 
Global Workforce Survey 
8% 
Disengaged 
Completely 
disconnected 
rationally, 
motivationally and 
emotionally 
Global Results (based on rational, emotional, motivational): Based on a global survey of 90,000 employees in 18 
countries and Tower Perrin’s database of 2 million annual responses in 40 countries 
46
“You can’t sell it outside if you can’t sell 
it inside.”
SHEER DRIVING PLEASURE 
BEAT THE BENZ
GLOBALLY CONNECTING 
PEOPLE 
HIP GEEK
Perceived Control 
Perceived Progress 
Connectedness 
Vision / Meaning
The Partnership Model 
Glee 
Fee 
ME 
See 
Flee 
WE
4. Provide the correct 
BEHAVIOURAL FRAMEWORK 
(something to do)
What we allow will continue.
? Company goals determined by EXCO that 
will result from behaviours. 
Life Skills / Values / Motivation / Attitudes 
Vision, Mission and Values that are corporate 
focused, but individually applicable. 
I am / I do 
? 
A set of behaviours / Actions that guide all 
employees at every level of the organisation. 
I am / I do 
? 
Increase in goal-directed Actions 
Strengthening the underlying behaviours lead to positive actions 
towards achieving the company goals. 
In order to achieve high standards of success, you are 
required propel yourself forward towards your goals. 
?
Values
Goals 
Average companies give people 
something to work on, innovative 
organisations give their people 
something to work toward.
BEHAVIOURS 
Reputations are the result of what 
people in the organisation 
consistently do.
“By aligning what we say we do, with 
what we actually do, we positively 
influence what our customers think and 
feel.”
5. RECOGNISE performance 
(something for doing good)
Market 
Norms 
Social 
Norms
Cordialism 
THANK YOU 
Erik Vermeulen 
erik@erikvermeulen.com 
@ErikMVermeulen 
#cordialism

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Cordialism: Africa HR Summit

  • 1. Cordialism How the best companies lose their flavour. Erik Vermeulen Behavioural Economics Strategist #cordialism
  • 2. What we’ll cover today… How we lose our flavour. Getting the flavour back. The HR / Marketing Partnership
  • 3. What do you think when you see…
  • 4. What do you think when you see…
  • 5. What do you think when you see…
  • 6. What does history tells us…?
  • 7. “The world is changing very fast. Big no longer beats small. It’s now the fast beating the slow.” Rupert Murdoch, Chairman and CEO News Corp
  • 8. Companies today are most worried about… EXPERIENCE & ENGAGEMENT People will judge your organization by the experience they or an acquaintance have with your brand 90% of the time and only 10% or less by the marketing messages they’ve heard.
  • 9. Companies today are most worried about… EXPERIENCE & ENGAGEMENT Companies who SAY that they’re great at customer service often aren’t. The same goes for the message “our people are our most important asset.”
  • 10. Companies today are most worried about… EXPERIENCE & ENGAGEMENT This represents the internal and external duality of successful companies in the experience economy. Engaged employees provide the best experiences.
  • 11. No marketing campaign will convince someone you’re great at service when they’ve had a lousy EXPERIENCE from a disengaged employee that demonstrates the opposite.
  • 12. How do we lose flavour?
  • 16. Your Growth • More people • More systems • More processes • More control(s) • Different backgrounds • Different behaviours • Different goals • Different motivation • …
  • 19. Why is company culture important?
  • 20. In 1995, the average person had 27 connections. In 2015, the average person will have 415 connections.
  • 21. Right now, Gen Y outnumber Baby Boomers, 96% belong to Social Networks
  • 22. 68% of customers leave because of poor employee attitude
  • 23. 41% of customers are loyal because of a good employee attitude
  • 24. 70% of customer brand perception is determined by experiences with people
  • 25. Your marketing department does not own your brand or your culture, it belongs to the collective behaviour of your employees.
  • 26. Delivering a consistent experience Training People & Behaviour Business principles New Product Development Internal communications Annual Report Website Packaging look-and-feel Special promotions Customer Communications Billing Experience Office design, e.g. Experience Centre, Call centres Product line alignment Retail outlet design Signage & Way finding Collection points, pre-paid kiosks Employer Brand Leadership behaviours Service standards Marketing & Communications Products & Services Environments Naming After sales service
  • 27. The HR - Marketing Partnership?
  • 28. Discovery Health “When you need us, we're there for you” Promise: Consistent support and peace of mind Look & feel: Caring, modern, simple Why successful? Has the highest ratings for claims-paying ability Largest and most secure brand – leverage their size to deliver access to quality healthcare How differentiated? Empowers its customers to have a healthier lifestyle by providing them with the necessary tools through its trendsetting wellness programme, ‘Vitality’ Offers unique products with better benefits and claims lower prices than its competitors Brand Learning: Discovery maintains consistency throughout the brand, a caring feel, and provides more than just ‘healthcare’ to its customers. Their high claims-paying rating proves that they make good on their brand promise 28
  • 29. Experience Spectrum REACH CHOCOLATE HAPPY FAMILIES STANDARDS WINNING Tangible Intangible PHYSICAL CHARACTERISTICS What it is FUNCTIONAL CHARACTERISTICS How it performs BRAND CHARACTER How it expresses itself EMOTIONAL CONNECTION How it makes you feel EMOTIONAL PROJECTION What it says about you
  • 30. Success = Growth = Employees Engaged employees work with passion and feel a profound connection to their company. They drive innovation and move the organization forward. Actively Disengaged employees aren’t just unhappy at work; they’re busy acting out their unhappiness. Every day, these workers undermine what their engaged co-workers accomplish. Not Engaged employees are essentially “checked out.” They’re putting in time — but not energy or passion — into their work.
  • 31. Success = Growth = Employees 10% of employees are poor performers 10% of employees are top performers The other 80% are fence sitters and just get on with being “vanilla” Who do you want influencing your new employees?
  • 32. HCM Performance Drivers Internal Service Quality Wellness Engageme nt Strategic Design HR Policies and Procedures HR Automation: • Forecasting • Staffing • Scheduling • Succession • Culture / Process Alignment Employee Engagement Employee Retention External Employee Productivity Service Value Customer Satisfaction Customer Loyalty Revenue Growth Profit Growth Market Share Attitude / Loyalty Knowledge / Skills Build Relationships % Growth Customer Testimonials 1 year 5 Years Service concept: • Consistent • Intentional • Different Value to customer Better than last visit Better than competition Lifetime Value Retention Repeat Business Referral Strategy & Compliance Recruit for Talent Talent Development Talent Retention Reward
  • 35. “The goal is not to do business with everybody who needs what you have. The goal is to do business with people who believe what you believe.” Simon Sinek
  • 36. Brand strength Challenge Building advocacy 5 Advocacy I believe in what we do and I recommend our brand 4 Action I know what I can do to support our brand 3 Ability I have the skills and knowledge I need 2 Attitude It makes sense to me 1 Awareness I know what we stand for
  • 37. “We change behaviour by framing what we want people to do into something that is relevant to them.”
  • 38. The ‘new’ culture should not be seen as ‘new’. It should be seen as a business case that rests on doing what’s required to meet the future demands of our clients.
  • 39. 5 ways to get your flavour back.
  • 40. 1. Get the right people on board (achievements are useless without context)
  • 41. MEN WANTED For a hazardous journey. Small wages, bitter cold, long months of complete darkness, constant danger, safe return doubtful. Honour and recognition in case of success.
  • 42. 2. Give people PURPOSE (beyond pleasing)
  • 43. Yesterday, today, tomorrow… The way people define themselves has changed. Very long ago: Man / Woman Long ago: Hunter / Gatherer Recent: Skills (industrialisation) Today: Career Tomorrow: Meaning people add or create.
  • 44. The Golden Circle WHY? At Apple we believe in challenging the status quo, in thinking differently. Making a dent in the universe. HOW? To challenge the status quo, we make sure our products are beautifully designed and easy to use, and user-friendly. WHAT? We sell computers, laptops, cellphones, tablets etc that are highly stylised and consumer friendly. WHY HOW WHAT
  • 45. 3. Get people ENGAGED (get them to give a damn)
  • 46. 21% Engaged 41% Enrolled 30% Disenchanted Significantly lower on all three components of engagement High scores on rational and motivational components, but low on emotional That’s only 1 in 5 Global Workforce Survey 8% Disengaged Completely disconnected rationally, motivationally and emotionally Global Results (based on rational, emotional, motivational): Based on a global survey of 90,000 employees in 18 countries and Tower Perrin’s database of 2 million annual responses in 40 countries 46
  • 47. “You can’t sell it outside if you can’t sell it inside.”
  • 48. SHEER DRIVING PLEASURE BEAT THE BENZ
  • 50. Perceived Control Perceived Progress Connectedness Vision / Meaning
  • 51. The Partnership Model Glee Fee ME See Flee WE
  • 52. 4. Provide the correct BEHAVIOURAL FRAMEWORK (something to do)
  • 53. What we allow will continue.
  • 54. ? Company goals determined by EXCO that will result from behaviours. Life Skills / Values / Motivation / Attitudes Vision, Mission and Values that are corporate focused, but individually applicable. I am / I do ? A set of behaviours / Actions that guide all employees at every level of the organisation. I am / I do ? Increase in goal-directed Actions Strengthening the underlying behaviours lead to positive actions towards achieving the company goals. In order to achieve high standards of success, you are required propel yourself forward towards your goals. ?
  • 56. Goals Average companies give people something to work on, innovative organisations give their people something to work toward.
  • 57. BEHAVIOURS Reputations are the result of what people in the organisation consistently do.
  • 58.
  • 59.
  • 60.
  • 61.
  • 62.
  • 63. “By aligning what we say we do, with what we actually do, we positively influence what our customers think and feel.”
  • 64. 5. RECOGNISE performance (something for doing good)
  • 66. Cordialism THANK YOU Erik Vermeulen erik@erikvermeulen.com @ErikMVermeulen #cordialism