BLOG

The Future of Work Demands a New Approach to Learning and Development

Our research shows that learning and development can slow the Great Resignation.

Much has been written about the new capabilities required for companies to thrive in the future of work. These needs add to the already significant demands on organizations to upskill their employees in the face of ongoing technological shifts related to digital transformation

Prophet’s 2021 global research study “Fit for Change: Driving Growth and Transformation in the New Future of Work” showed that companies recognize the importance of equipping employees with the skills demanded by an ever-changing landscape. In our global survey, 81% of leaders noted that “our organization has increased investments in upskilling and reskilling our employees to thrive in the future of work.” Additionally, Fast Company recently reported that companies spent $165 billion on learning and development in 2020, yet 70% of employees say that they aren’t taught the skills needed to do their jobs.  

“High-quality, relevant learning and development help reconnect employees to their organizations by creating visibility and access to the skills needed to succeed.”

So, how might organizations ensure that learning investments pay off in terms of achieving their business ambition and engaging and empowering employees? The answer: by taking an intentional, modern approach to designing, delivering and governing learning and development experiences that go beyond transactional training to continuous skills-building and growth.  

Learning and Development is at a Tipping Point

Learning and development opportunities have increasingly been a key factor in employment decisions – and even more so now in this period of the Great Resignation of 2021. High-quality, relevant learning and development help reconnect employees to their organizations by creating visibility and access to the skills needed to succeed. It also allows employees to demonstrate commitment to long-term career paths.  

Meeting the accelerated demand for modern skills development and relevant learning experiences has elevated the important role played by learning functions and departments. The time is now to ensure that employees receive real value through engaging learning and development content that can be applied and translated to day-to-day work and drive measurable business impact. 

Four Steps To an Enhanced Learning Model

At Prophet, we’ve synthesized adult and transformative learning theory to develop our AR2 model for designing and delivering compelling learning and development experiences. The four steps of this model (Absorb-Recall-Apply-Reinforce) are designed to ensure learning experiences support both thinking (synthesis) and doing (application).

Below we walk through each of these four steps, to help you on your way to enabling transformation in the “Mind” of your organization:

1. Absorb

Initially, what is being communicated is still just information, not knowledge; the key is making the information something that the recipients will want to convert to knowledge. First, define clear learning objectives to ensure the information presented is targeted and relevant. Then, consider varying how recipients will consume the information to sustain engagement and stimulate different mental muscles. How might you deliver information in a way that requires recipients to alternately read, see, listen to and feel this content? 

For example, Prophet worked with a large global appliance manufacturer, which needed to broadly upskill its marketing organization to enable digital transformation. We designed a full learning curriculum, in which one key module was focused on helping marketers truly understand and embrace their target consumer segments. The segmentation data was translated in a way that brought these consumers to life, versus treating them as data points on a page. 

Also, an immersive exhibit allowed the marketers to “choose their own adventure” in terms of when and how they consumed information. Rich material within the exhibit included visuals that invited participants into the kitchens of these individuals and they were actively engaged through the use of an augmented reality app, which allowed them to hear the voice of the consumer first-hand through the unlocking of quotes and videos.  

2. Recall

The Recall step is where learners “try” the content in preparation for its application in context. Studies show that every time a memory is retrieved, that memory becomes more accessible in the future. So, Recall focuses on retrieval and continual practice. Today’s virtual learning platforms offer plenty of functionality to find creative ways to aid recall. Real-time quizzes and visualization of results through tools like Mentimeter help drive instant engagement, while the breakout function offered within Zoom enables small groups to consider a thought-provoking question and how it links to what they’ve learned.

For example, with this global appliance manufacturer, our learning curriculum included designing two-week gamified online “Expeditions” around key topics related to digital transformation. After first absorbing the information, participants were engaged through quick quizzes, with points awarded for correct answers. Participants could also earn points and badges for posing questions, commenting and sharing related information, all ways of driving recall as well as a sense of community and competitive spirit. 

3. Apply

Within the Apply step, learners must be guided to do something with the knowledge they’ve gained in the context of their job. Adult learning is most successful when knowledge is made clearly relevant to the learners and their lives. In fact, organizations can’t afford to not drive toward application within their learning and development programs.

The Apply step is where knowledge is connected to meeting key business objectives. Applying knowledge in a simulated and supported environment ensures individuals are equipped to apply this knowledge again when they’re faced with a similar situation in their day-to-day work. Tools such as templates, action plans and job aids (like checklists) both support and drive successful applications.  

For example, a capstone of the learning curriculum for the global appliance manufacturer was a three-day summit for their top marketing leaders. Action planning often gets crammed into the final module of a session, but an “apply as we go” approach was taken instead. Time was carved out each day to iteratively build action plans, applying the knowledge gained each day to build and refine the thinking. Teams for action planning were carefully constructed to mirror typical working teams. This was, to ensure the action plan was relevant to real objectives, versus a theoretical learning exercise. Finally, the summit incorporated mechanisms to drive accountability, such as sharing action plans with peers and inviting feedback. 

4. Reinforce

The fourth and final step is to Reinforce. This means both creating incentives to sustain new behaviors related to the knowledge gained, as well as developing long-term opportunities for reinforcement (to ensure knowledge is not forgotten over time). Simple incentives, such as social kudos or visible symbols (e.g., a custom notebook, with a checklist insert), are fun and effective. The most powerful incentives, however, are ultimately those that are incorporated into development objectives and performance management, to help embed the learning within day-to-day work and expectations. 

For example, the learning curriculum for the global appliance manufacturer paved the way for a more expansive effort to transform and embed digital capability within the marketing function. The skills taught throughout the learning curriculum became core to job expectations for the company’s marketers and each marketer was expected to apply the knowledge gained to help the company evolve toward world-class, consumer-led marketing. 


FINAL THOUGHTS

Relevant, compelling learning experiences – designed through approaches such as the AR2 model – are necessary to help companies make the leap in leveling up their workforces around critical new skills. Executed as part of a comprehensive learning and development curriculum, these learning experiences create greater employee capability, engagement and ownership in the new future of work. 

If you’re looking to pursue an upskilling/reskilling agenda and want to understand how to adapt employees’ skills and roles to the future of work, then our Organization & Culture experts can help – get in touch today.  

BLOG

Is Your Employee Value Proposition Ready for the Future of Work?

Serving diverse audiences requires multiple perspectives, harnessing the contribution of many voices.

Every employer has a value proposition to deliver on to its people, which includes looking after both personal and professional growth and wellbeing.  That has taken on new dimensions in 2020, as employers find themselves needing to be their employees’ friend, therapist, safety supervisor, community builder and megaphone for social justice. That’s a lot of hats to wear, and yet it’s clear these and more will be part of the new baseline expectations employees have. 

The pressure mounts to craft the right employee value proposition. 

Companies are finding they must make sometimes large transitions to play these roles, and are doing so amidst a background of significant tensions. The current economic climate is forcing a contraction of the workforce at the exact moment employers are being called on to deepen their commitment to their employee base. Financial concerns are ever more urgent but are often at odds with being a good world citizen. And digital transformation is accelerating faster than ever before, at a moment when people are desperately seeking more humanity. Let’s take a closer look at what to keep in mind as your organization begins developing an employee value proposition for the future. 

The facts of developing an employee value proposition for the future

The pressure to be on the right side of history in such a cataclysmic moment is very intense, and historic efforts haven’t always threaded the needle of these tensions successfully. We’ve all seen companies that have made big statements on purpose, culture, social responsibility and diversity—but in an effort to prioritize customers and shareholders, many have not delivered on them. 2020 has served as a fresh reminder that businesses can’t pick and choose amongst stakeholders anymore—the survivors of this crisis will prioritize customers, shareholders and employees, as well as communities and society, to truly be good corporate citizens. 

“The survivors of this crisis will prioritize customers, shareholders and employees, as well as communities and society, to truly be good corporate citizens.”

This moment demands that employers strike a new deal with their employees.

  • Serving customers means serving teams. Customer centricity is critical, but your teams can’t be customer-centric if they are themselves drowning. Taking care of employees’ health, wellbeing and work-life balance need to be an explicit part of any go-forward plan. In fact, 64% of employers believe that COVID will have an outsized impact on employee wellbeing and many are already expanding their efforts to respond. 
  • Serving diverse audiences requires having multiple perspectives in the conversationSupporting a diverse network starts by harnessing the contribution of all voices within an organization. A business that makes diversity and inclusivity part of its business strategy now will see this investment pay off when it acquires better, more relevant work and when its position is elevated as a desirable place for top talent to build careers. Interesting that in our own recent research into successfully managing transformation, “harnessing many voices” was seen at the top attribute required by leaders at global organizations.  
  • Serving employees’ hearts and minds means serving the world. Corporate Social Responsibility is fast becoming a thing of the past as companies are being called into Corporate Social Justice. The calls for social justice made in 2020 are only solidifying the existing trend toward employee-employer shared values. The workforce of tomorrow will only work where they see their employer not only aligning with their values but also making non-optical external commitments to advancing a better world.  

Deals go both ways – employers also need new things from their teams: 

  • Flexibility and agility. Agile is not a new concept. Events of 2020 have demonstrated the need for workforces that are able to “embrace the unknown” and pivot on a dime.  
  • Learning at the speed of change. With the increased acceleration to automation, companies are imagining fewer and new types of roles. The moment of “meet your new colleagues, they’re robots” is coming to us all. Not just keeping pace but learning ahead of and outside of one’s current job will be critical to success.  
  • Resilience. If this year has taught us anything, it’s to expect the unexpected. Employers will value team members that are not just able to change, but willing to lean into what’s next—even when the future is still shrouded in ambiguity. 

3 Steps to Future Proof Your Employee-Employer Relationship

To successfully achieve this new contract, employers will need to go beyond standing up one-off efforts to the side of their central business strategy. Serving employees and the world cannot be done with an “initiative,” because it needs to show up at many levels every day and must include many voices to be relevant. The annual planning season is upon us! So what can your company be doing right now to future-proof your employee relationship? 

1) Take stock of your entire employee value proposition.

Identify the current deal you offer to your employees and set a vision for what you will offer and expect from your workforce tomorrow. Go well beyond traditional mechanisms like salary and benefits to think about long-term progression, social impact, education and community.  

2) Prioritize building an employee data strategy.

Data will be central to this story. You’ve likely spent years building up your customer data strategy, but most companies either have poor workforce data or are not set up to use it well.  Workforce data will be crucial for responding to real-time dynamics and quantifying your impact on people. 

3) Seek an active relationship with your employees.

Look to move from a passive relationship with employees to more active, dynamic participation. Just as companies have now practiced maintaining ongoing relevance with customers in a changing world, they must look to build their employee relationships in the same way. They must truly get to know them as individuals not just numbers. 


FINAL THOUGHTS

Successfully setting this new deal will bring us closer to hiring, retaining and building the workforce we desire to achieve our business and social goals. And we’ll probably see happier and more productive employees too. 

If you need help future-proofing your employee value proposition, our organization & culture experts are ready. Reach out today. 

BLOG

Customer-Centricity: Closing the Gap Between Digital and Human

As bots get better, brands are challenging their assumptions about effective machine communication.

The past few months have made it more apparent than ever that shifting to more virtual offerings and seamless interfaces are now the main way for businesses to survive and thrive in our online post-COVID world. These changes – accelerated but not triggered by the pandemic – have fundamentally validated one of Prophet’s core convictions: customer-centricity shouldn’t be determined by what companies think is technically feasible. It has to start with us human beings, putting the real needs of people at the center of every decision. It is clearly digitally driven, but at the core, customer-centricity is always a deeply human endeavor.

For too many companies for too long, the strategy has followed what is technically feasible instead of the other way around. But for the few that have been focused on a people-first approach, having their strategy informed from what humans need first before shifting to what is possible on the back end, the success is apparent.

“It is clearly digitally driven, but at the core, customer-centricity is always a deeply human endeavor.”

Companies like Amazon or Netflix – two highly relevant brands and businesses everyone would agree – are heralded as paragons of the digital age but these brands have become the powerhouses they are because they are human-focused. While there are billions of dollars of tech investments behind each, their unwavering focus on their customer and delivering an experience for them that is fast, simple and incredibly gratifying drives what they do and their bottom line.

Of course, for companies in manufacturing, life sciences or financial services, reinventing themselves as digital entities is more complicated than for say a company with a digitally native business model and their failures often show a similar pattern – namely that their strategies demonstrate a lack of clear thinking from the customer’s standpoint. They’re preoccupied with their products, their sales and their success. But now it’s time to look at everything through the lens of the customer, this is where it should start. Success starts with knowing the buyer. What is then required is a holistic view of the digital landscape with technical feasibilities assessed early on. That is how you bridge the often missed gap between a customer-centric digital strategy and a human-focused one.

Faux humans: The rise of bots

The reason we have opened our doors in such large numbers to tools like Siri and Alexa comes down to convenience, ease of use and the fact you speak to them as you would a human. They are customizable, often adapt to your preferences and deliver an experience you can consistently count on. And companies are eager to take advantage.

One of our favorite examples of the successful use of artificial-intelligence-driven empathy comes from the global insurance company, AXA. To help it successfully grow its business in Asia, AXA had the desire to develop a new digital customer engagement proposition, one that humanized the experience and provided a consistent customer journey and brand experience across the region. Emma was born – AXA’s first humanized user interface, which has become the core of the brand’s new digital customer experience, handling everything from claims to servicing, health content to symptom checks and helping individuals find the solutions and content most relevant to their needs. She’s not just efficient and accurate. She’s a friendly embodiment of a brand committed to assisting people as they strive for financial wellness, whilst successfully bridging the gap between digital engagement and financial advisor partners.

And recognizing the massive gap in helping people deal with the mental-health challenges posed by the pandemic, AXA expanded Emma’s skills to deftly field calls about mental-health questions. That’s a high-risk undertaking, but initial tests show customers don’t just appreciate the effort, they’re using the service extensively.

Challenge definitions: What does it mean to be human?

It’s easy to make assumptions, and companies often mistakenly believe they know everything there is to know about their customers. That’s seldom true, especially in a period of such massive upheaval. It’s critical that companies take this time to go deep as they gather insights, with an entirely rededicated sense of empathy and rigorous analytics. For us, that typically means finding out which drivers are the most essential, right now, for customers and prospects. What makes one brand relevant to them and another forgettable? Are they looking for inspiration or efficiency? Do they feel the brand is available to them when and where they need it? Do they sense it meshes with their own values?

With each new wave of technological development, the digital age shifts shapes and speeds up. And it’s vital that leaders focus on the potential of emerging technology. It’s critical that companies do not let themselves fall behind in efforts to continue to be as connected, nimble and data-driven as can be. They need to continually ask: What tools do we have? How digital is our go-to-market approach? How automated is our production?

But too often, we have seen companies spend tens of millions – and sometimes hundreds of millions – in tech investments before understanding how these initiatives might help customers and eventually drive growth. The critical decisions must always balance both: What do your customers need most right now and what is your company capable of providing?


FINAL THOUGHTS

Digital investments, like any other use of capital, should only be made when companies are clear on how they will serve the largest purpose. Addressing just the digital possibilities in a siloed view is a surefire way for a business to fall short in today’s reality. It is the combination of instilling a human-focused process with digital capabilities and prowess that sets up a business for customer-centric success.

If you’d like to learn more about how a customer-centric strategy can improve the growth of your business then reach out today. 

INFOGRAPHIC

Shaping Your Brand Around the Future of Next-Gen Gaming

As the metaverse gets closer, there are more ways than ever to dive in. Is it time for your brand to play?

Shaping Your Brand Around the Future of Next-Gen Gaming

As gaming companies, technology giants and entertainment conglomerates fight for engaged consumers, it’s become a new race to own the engagement platform – and gaming is the momentum behind the acceleration.

Take a closer look at our infographic below to learn more about how cross-publishers and platforms are building towards the future of content engagement, how the gaming experience has evolved, and how brands can engage in this direct-to-consumer ecosystem.

Prophet is obsessed with helping our clients win with their customers. We are a global consulting firm, helping our clients unlock uncommon growth in this digital age. Contact us to learn more about what we are doing in all things direct-to-consumer.

Follow Eunice Shin on LinkedIn & Twitter or send her an email.

BLOG

Examples of Brand Purpose in Action: When It’s Needed Most

Stakeholders are calling brands out on hypocrisy, mixed messages and failed efforts. Not all will survive.

Sixty-two percent of global consumers say their country will not make it through the current crises if companies don’t step up. Customers and employees are looking to their favorite brands to help solve problems, creating an enormous opportunity for companies that are purpose-driven.

But while purpose is essential for any brand today, just having one is not enough: Brands are on trial. Stakeholders are calling brands out on hypocrisy, mixed messages and failed initiatives. Even companies that thought they had a clear purpose need to prove they are investing in substantial change and not just “woke washing.”

Defining and living your organization’s purpose is hard. It’s messy. And it’s never-ending. But the most successful companies in these trying times will derive their purpose from shared human values, stay true to what they do and be relevant to what their stakeholders need. And they’ll act on it every day.

“Make sure your purpose is grounded in shared human values–including employees–and take responsibility when things go wrong.”

These four companies are using purpose in powerful ways, and working hard to live it in challenging times:

Citi: Inspiring growth and progress

Citi’s purpose–to provide financial services that “enable growth and progress”–took on electrifying new meaning as the economic impact of the pandemic shook its employees, customers and neighborhoods. Citi went beyond what most banks did – loan forgiveness and mortgage relief– to not just delay devastation but truly deliver on that purpose. “Citi’s mission and purpose have long been rooted in enabling growth and progress. As the world continues to search for solutions to address the global pandemic, racism, and more, at Citi we know that our role is to identify issues to stand for and influence in order to enable relevant and meaningful progress for our clients, colleagues and communities,” said Mary Ann Villanueva, Director of Citi’s Brand Culture and Engagement.

Efforts included committing $100 million in support aimed directly at that promise of progress, launching Restarting Together to encourage startups supporting society through the crisis, helping customers secure PPP loans, and helping those most impacted by the pandemic including the World Central Kitchen and National Disability Institute and many more. Citi has also expanded beyond financial progress to support racial equality through recent campaigns and commitments to the Black Lives Matter movement, including investing in Community Development Financial Institutions, which play a vital role in low-income communities and communities of color.

Airbnb: Deepening authenticity

When a company’s purpose ties directly to what it does, brands feel more authentic. This becomes even more important during times of change. Airbnb exists to “create a world where you can belong anywhere.” With sweeping travel restrictions and lockdowns, the company had to pivot quickly to find new ways to express hospitality. Open Homes for COVID-19 frontline workers gave hosts an immediate way to help. And it began creating online experiences that allow guests to learn new activities and meet people from around the world. By enabling people to connect, even while stuck at home, Airbnb is finding new ways to stay relevant.

Glossier: Listening builds a shared community

Shared purposes are not just relevant to one audience, they are felt deeply by each–employees, customers and communities. That calls for genuine listening to make sure that actions, products and services align with the values and beliefs of those stakeholders. Glossier’s purpose is “to give voice through beauty” by “leveraging the power of the personal narrative.” Throughout the COVID-19 crisis, Glossier’s most frequent request was for a product to help with increased irritated skin from repeated handwashing. Inspired by stories and comments, Glossier quickly developed a hand cream, donating thousands of units to first responders.

The company is also recognizing that obsession with that external community has a downside, leading it to prioritize the needs of customers over that of its own workers, especially people of color. When shoppers engage in racist behavior, for example, the company’s “the customer is always right” stance gets toxic. Glossier isn’t running away from that dissonance but trying to learn. The lesson? Make sure your purpose is grounded in shared human values–including employees–and take responsibility when things go wrong.

Walmart: So actionable, it’s indispensable

The final dimension emerges when companies demonstrate that purpose is not just an empty promise. If companies can’t deliver, it doesn’t matter how inspiring or authentic they are. People pay attention to what brands do, not what they say. Walmart has long struggled with negative perceptions. But it continues to make progress through finding new ways to act on “saving people money so they can live better.”

Because of its vast size, it pays great attention to subtleties and the importance of multiple actions. Among the steady drumbeats that help all people “live better”? In addition to cash bonuses for employees, it’s closing all locations this Thanksgiving to show gratitude. It introduced Express delivery so customers can avoid crowds. It turned parking lots into drive-in theaters, showing movies for free. And in requiring all employees and shoppers to wear masks and supporting expanded testing efforts, it’s helping everyone.

Just as people look to friends, family, and government during hard times, they are holding a magnifying glass up to businesses. Customers expect companies to treat people well, engage the community and evolve to meet a changing world. Workers are questioning employee value propositions. They want businesses to put people over profit. Words and actions matter.

Does your purpose…

  • Make the world better? Even companies with a pragmatic purpose can inspire others.
  • Create believers? When businesses connect purpose to the way they earn money, it’s authentic and makes perfect sense.
  • Apply to all audiences? The right purpose resonates with employees, customers, communities and investors.
  • Translate into action? If an organization can’t deliver on promises, everything else is pointless. Enabled by leaders, companies constantly need to bring their purpose to life.

REPORT

2021 Growth Acceleration Playbook

To achieve uncommon growth, double down on cultural changes to equip your teams for the future.

For most business leaders, this is a pivotal time. The decisions being made are dictating whether you survive or thrive in these uncertain times and there is enormous pressure on leaders to step up and provide the structure, guidance and clear communication that people are looking for.

This playbook brings together some of the latest thinking from our experts to help with those decisions, from how to double down on your company culture and equip your teams for the future way of working, to understanding the new needs of your customer and making the digital go-to-market shift. It provides some actionable ideas to get your business back on track now as we move out of this crisis and for the growth opportunities beyond.

Download A Playbook to Get Your Business Back on Track

*Fill in all required fields

Thank you for your interest in Prophet’s research!

BLOG

David Aaker on COVID-19 & Its Implications for Brands

As consumers value the basics more, companies promising simplicity and reliability have a new advantage.

Branding expert David Aaker recently launched his 17th book, Owning Game-Changing Subcategories: Uncommon Growth in a Digital Age. Associate Partner Bernhard Schaar from Prophet’s Berlin office spoke to Prophet Vice Chairman David Aaker to discuss the background of his new book, his perspectives on COVID-19 and its implications for brands and branding.

Bernhard Schaar: Your latest book, “Owning Game-Changing Subcategories: Uncommon Growth in the Digital Age,” explores why growth is so important for companies. Could you explain briefly why that is and what you mean by the term “uncommon growth”?

David Aaker: Growth is healthy because it brings benefits to different stakeholders. For customers, it generates reassurance and credibility and often energy and excitement as well. For organizations, it represents momentum—growth creates growth. For employees, it represents opportunity, pride in the organization and even meaning in work-life—the absence of growth can be discouraging or even depressing and job-threatening.

Uncommon growth is growth that is substantially higher than the expected growth year-to-year. It is out of the ordinary.

BS: What are the key learnings you would like readers to get from your book?

DA: I would highlight four main learnings.

  • First, real growth comes from new subcategory creation defined by attributes that customers view as “must haves”, not from a “my brand is better than your brand” strategy. Competing only on incremental improvements is no longer enough.
  • Second, to grow you need to become the exemplar brand of the subcategory, to position, scale and build barriers.
  • Third, brand communities are an important way for customers to become involved in the subcategory and bond with the brand and others who share a common interest and/or activity.
  • Fourth, digital has put subcategory creation on steroids, with the rapid acceleration of e-commerce, social media, live streaming, O2O and Internet of Things (IoT).

BS: Let’s talk about each of these to better understand your perspective. What do you mean with subcategories and why are they important for growth?

DA: A key element to successful subcategory competition that is ignored in most innovation and strategy books is branding. I wanted to introduce brand into the arena of strategic innovation and market disruption. An exemplar brand has three jobs in addition to refining and testing the “must haves”:

  1. It needs to position the subcategory, making the “must haves” visible.
  2. It needs to be scaled to create the momentum of fast growth,
  3. It needs to create barriers, one way of doing that is storytelling – which, by the way, was treated in my previous book “Signature Stories” in great detail.

BS: You mentioned branded communities as one of the key insights of your book. What role do they play in helping brands to own a subcategory?

DA: Branded communities are groups of people that bond because of shared involvement in some activity or interest area connected to a brand. Brand communities create or enhance brand relationships, add energy and involvement, provide credibility and build barriers to competitors. It is hard to draw a customer away from a brand community they are engaged in to another. Nike, for example, has built a strong brand community of sports lovers who share the same passion and aspirations. It has been built in part by integrating its digital platforms to connect and engage. Its agility and creativity was shown when it rapidly launched its virtual workout classes via their Nike Training Club app.

BS: What has been the impact of digital on the creation of new subcategories?

DA: Creating new subcategories has always been, with rare exceptions, the only path to real growth. But the arrival of digital in the last two decades has put subcategory creation on steroids. They are now more frequent, they grow much faster and they have more upside, by a big margin. In the digital era, a huge number of subcategories have been generated or enabled by:

  • The Internet of Things (IoT) has created smart homes with products like the NEXT thermostat and forced manufacturers like Bosch to adapt by adding digital features to their product portfolio. Other technological advances such as GPS, which has enabled Uber and the expanded Internet, made the iPhone and thousands more products possible.
  • E-commerce. Entrepreneurs no longer face the barrier of getting into retail or creating a salesforce. Brands like AirBnB globally, or fashion brands like Zalando, or digital pioneers like eBay and online automotive retailer Mobile Dealer have enjoyed almost instant distribution and access to markets.
  • Social media. For some that are skilled and lucky in using social media and websites it can replace months of planning and a huge media budget with fast and sometimes very inexpensive communication. Dollar Shave Club started with a video that cost $5000 and attracted 12,000 members in two days starting a firm that was sold four years later for one billion dollars.

BS: What recommendations do you have for brand executives to achieve uncommon growth through owning game-changing subcategories?

DA: In the start-up world, this thinking is fundamental to their business – they are doing exactly that already. But large established firms need to prepare for this new reality by keeping up with technological development, adapting their distribution to include e-commerce and becoming good at communication in the digital age. Strategically, there needs to be a realization that the best path to growth is now owning new subcategories that change the customer experience or brand relationship.

BS: Your book was written pre-COVID-19 but as we are moving towards a New Normal, we can see changes happening and priorities shifting both on the consumer and brand side. What is your point of view on this? How have consumers and their expectations changed?

DAa: There are a host of changes in behavior caused by the crisis – among others, people are valuing the basics more. The search for simplicity and reliability is more pronounced. More fundamentally, peoples’ values and acknowledging what is really important to them have changed. Social contacts, trust, authenticity, higher purpose and keeping safe have all been dialed up. Some of these changes will represent opportunities for new ways of serving customers.

BS: What is keeping brands from doing this? What can, for example, companies do to create and own more of these game-changing subcategories you highlight?

DA: This is probably an organizational issue. Much of what we, at Prophet, talk about in management culture and digital transformation applies. The basic problem is that established businesses within big firms are generating strong profits and have financial and political control over budgets and strategies. They are really adept at operations, making incremental improvements in offerings and marketing and showing positive return for those improvements. They are also good at pointing out flaws in strategies that have not been fully developed and tested. As a result, moonshots get killed or starved.

“Uncommon growth is growth that is substantially higher than the expected growth year-to-year. It is out of the ordinary.”

A good way to move ahead is to protect the future efforts by creating a new subcategory and giving a separate budget, and perhaps even a separate organization, that physically is separated from the core organization. A flat organizational structure can also help. Additionally, a firm can work on its culture and decision-making process to allow the innovation around new subcategories to live or even thrive. The measurement of people needs to reflect a risky mission and should not be mainly geared to running the existing business well. Game-changing subcategories don’t create themselves; you need to find and promote them.

BS: Do you have any final thoughts you would like to share?

DA: In regular times, and even more so in challenging times such as today, those brands that disrupt the marketplace by creating new subcategories that are anchored on a set of “must haves” and effective exemplar brands are the ones that will continue to achieve uncommon growth. If a loyal brand community can be developed, then success will be assured.


FINAL THOUGHTS

In the future, the successful brands, in my view, will often be those that are agile and flexible, have employed digital effectively, are truly empathic and have a higher purpose and find ways to connect with customers in a meaningful and involving way.

Want to interview Dave or feature him on your next podcast? Please connect with David Aaker directly.

Explore how David Aaker and Prophet can help your business create game-changing brands that resonate with both your customers and employees.

BLOG

Putting Purpose-Driven Strategies to the Test

Our diagnostic helps companies find a North Star that inspires loyalty and growth.

Businesses have been leaning into purpose-driven strategies for years, but recent events have tested them as never before. Whether responding to the worldwide pandemic, new ways of working, racial protests or political polarization, we’ve seen that companies with a purpose centered on shared human values rather than business goals are the ones more capable of acting swiftly and effectively. Purpose doesn’t just help these businesses decide what to do, it guides them in the best ways to do it.

This purpose is the North Star that steers actions and decision-making on a day-to-day basis. And it guides all elements of the company’s DNA, including its brands, strategy and employee value proposition.

And those without a well-articulated and actionable purpose? They’re struggling. When companies shout out hollow words on social media, customers abandon them, and brands lose their relevance. When we surveyed consumers in April, 58 percent said that in order to earn or keep their trust, it was very-to-extremely important for a brand to offer a relevant set of beliefs and values. By June, this number had jumped to 69 percent.

“When companies shout out hollow words on social media, customers abandon them, and brands lose their relevance.”

Prophet developed a diagnostic to assess how durable your company’s purpose is across four key dimensions (authentic, inspiring, shared, actionable). The custom analysis produces results that let you know where you may have a weak spot and where you might take your purpose next.

Our diagnostic will help you make brand purpose more powerful and tell you what to do if your company’s purpose isn’t…

Inspiring

It’s likely your mission isn’t ambitious enough or has been defined too narrowly. Brands like Disney, NPR and Spotify are endlessly uplifting because their purpose speaks to shared human values; they know how their products and services make a difference in the world and in people’s lives. But even companies with a fairly pragmatic purpose can be more aspirational.

To be more inspiring:

  • Look for cultural symbols and rituals among stakeholder groups
  • Find signature stories that are so compelling they make people question, reflect and want to share them with others

Authentic

When companies connect their purpose to the way they earn money, it makes perfect sense. Google, for instance, exists to “organize the world’s information,” which clicks with anyone who’s ever used a search engine. But when an oil and gas company misses the mark completely by saying its focus is protecting the environment, or a soft-drink brand claims to be committed to health, there’s an immediate disconnect.

To be more authentic:

  • Realign the business model, or find a purpose that fits
  • Isolate the organization’s unique assets to solve a challenge, not easily copied by a competitor

Shared

The right purpose feels true and important with every audience–employees, customers and communities. It must be understood and pervasive, felt by every stakeholder. And it contributes to the overall betterment of society. For Patagonia, nothing matters more than fiercely protecting the environment. At Nike, the commitment to racial injustice, which connects so deeply with its customers and athlete spokespeople, is more believable. If your company’s purpose doesn’t feel urgent to each group you’re targeting, it’s likely the wrong ambition.

To find a genuinely shared purpose:

  • Sharpen listening skills. What are customers and employees really saying?
  • Explore the intersections of our stakeholder groups, finding new ways to ask, “What shared human value is most relevant?”

Actionable

Of the four traits, this is the last mile. If your organization can’t deliver on its purpose–no matter how inspiring or authentic–everything else is pointless. Purpose needs to be enabled by leaders: Their actions and decisions serves as the role-model to the entire organization.

Recent months have shown what happens when purpose is just an empty promise. Those include companies parroting “We’re in this together” messages, only to be called out for endangering employees, or jumping on “Black Lives Matters” platforms, even while actively discriminating against employees and customers.


FINAL THOUGHTS

To bring purpose-driven strategies to life:

  • Find new ways to measure and improve employee behaviors. Everyone who works for the company should understand the purpose, and how they help it show up in the world
  • Implement and audit performance metrics throughout stakeholder groups
  • Take action in-market that brings the purpose to life

Take our diagnostic today to see how your purpose is and isn’t working for your brand today.

At Prophet, we help brands unlock growth– beginning with the “DNA” and purpose of their businesses. Let’s connect to learn more about how we can strengthen yours.

BLOG

Why Purpose-Led Brands are Winning with Consumers

There’s a new contract, and people expect companies they buy from to protect employees, society and the planet.

For years, companies told consumers what their brand stood for, shouting it from four-story billboards. Whether the company lived up to that purpose didn’t really matter – there wasn’t an easy way for consumers to see behind closed doors nor engage in dialogue. Then, technology transformed consumer expectations. Consumers demanded two-way interactions, constant sharing and ubiquitous connectivity. They were no longer willing to be talked at but rather wanted to be talked to. So, brands built long-term strategies around the voice of the consumer – ensuring their purpose and what they put into the market reflected what target consumers had told them. For a while, that was enough. But now, we are at another inflection point.

“Brands today must not only be vocal in tough conversations but also take action to push the causes they support forward.”

As the world, and more specifically, the United States grapples with the causes and effects of COVID-19, the #MeToo movement, Black Lives Matter, political unrest, climate change, the wealth gap, and more, brands are now being asked to take a stance. Brands today must not only be vocal in tough conversations but also take action to push the causes they support forward.

Human Values are at the Core of Purpose-Led Brands

The Business Roundtable, a non-profit association of CEOs from major U.S. companies, recently asserted that “each of our stakeholders is essential” – including customers, employees, suppliers, communities, and shareholders and “we commit to deliver value for all of them.”

And yet, this idea of shared value will not be enough moving forward. Shared value implies something insular – engaging with and providing value to those already inside a brand’s bubble. At Prophet, we believe brands need, at their core, to have the shared human values that many global societies are striving toward in the twenty-first century: freedom, equality, solidarity, tolerance, respect for nature, and shared responsibility.

A recent Prophet survey asked business leaders about how they define trust in times of crisis. Results demonstrate that consumers are at a tipping point – it is no longer acceptable for brands to only focus on shared value. Now successful brands must demonstrate a focus on these shared human values.

When asked in April, 58 percent of consumers said to earn or keep their trust, it was very-to-extremely important for a brand to offer a relevant set of beliefs and values. By June, this number had jumped to 69 percent. Consumers are no longer willing to trust brands that have fallen out of touch with society’s progress; in fact, 78 percent of consumers believe companies have a larger role to play in society than just looking after their self-interests. Employees feel similarly; in a McKinsey survey, employees said that contributing to society should be a top priority of their companies.

While a brand purpose is critical in providing a ‘North Star’ for an organization’s strategy and culture, it is not sufficient. Companies must ensure their purpose is broad-based and bold, not myopic or near-sighted. They must then authentically and holistically act against this purpose. Today, companies struggle to complete both, equally important, tasks. McKinsey’s study demonstrated that only 21 percent of purpose statements focus on contributing to society and only 42 percent of employees at US companies believe their company’s stated “purpose” had much effect.

Those that do not boldly demonstrate action related to their purpose are penalized– 53 percent of consumers who are disappointed with a brand’s words or actions on a societal issue complain about it, 47 percent walk away from the brand in frustration, and 17 percent never come back. On the other hand, those brands that demonstrate a continued focus through action are rewarded. Unilever’s “Sustainable Living” brands are growing 50 percent faster than the company’s other brands and delivering more than 60 percent of the company’s growth.

Four Ways to Rethink Brand Purpose

We believe brands that are willing to actively demonstrate their brand purpose can push society forward by:

  1. Defining a human value(s) they stand behind. Brands must consider the societal context in which they exist and the human needs present in this context; they must define which of these needs they are willing to support and push forward.
  2. Ensuring their brand purpose is based on that human value(s). Brands must use this understanding of societal context and human values to ensure their purpose encompasses them. Rather than focusing on what they believe they should deliver, companies must focus more holistically on what society needs them to deliver.
  3. Continuously messaging and providing action to demonstrate commitment to their purpose. Brands must put their purpose into action, continuously speaking out and delivering relevant products, services, experiences, charitable giving, campaigns and events to market the human value they are trying to push forward.
  4. Maintaining focus on this purpose internally. Business leaders must demonstrate to their employees and key stakeholders that a consistent focus on brand purpose is not only rewarded but required. Building an organization and culture around the brand purpose will empower employees to hold the organization accountable to its words.

FINAL THOUGHTS

The wariness of brands to take action – whether because they fear losing profit or stickiness with target consumers – is misplaced. Brands that have a well-defined and bold purpose often attract and retain the best talent. In sum, brands that define a bold purpose and truly deliver on it don’t lose profitability, they gain it. Furthermore, brands concerned that their actions will alienate consumers forget that the shared human values their purpose was built on were those that were relevant to core, target consumers. Though brands that act on their purpose may lose business in the short-term, they bolster their relationship with their core consumers, leading to longer-term gains.

Brands that take these steps have a chance to not only win with consumers and grow faster than their competitors, but also positively influence society in a long-lasting way. Interested in learning more about how Prophet helps our clients create actionable purpose-led brands?

BLOG

Why a Transformation Management Office is the Secret to Accelerating Enterprise Transformation

Without a designated team to manage transformation, true change is close to impossible.

“Thanks for the tasty breakfast.”

– Your culture

The recent COVID-19 crisis has accelerated the need for companies to transform themselves. But the fundamental challenge remains: it’s hard to become something different than what you are today.

The reason transformation is hard – whether digital transformation or some other kind – is that companies inevitably run into significant cultural barriers where old mindsets, behaviors and a lack of skill eventually bring things to a halt. Hence, the famous adage attributed to Peter Drucker: “culture eats strategy for breakfast.”

So how can today’s organizations address the complex and amorphous barriers to the transformation that we call “culture” while keeping their breakfast? The answer is to establish an effective Transformation Management Office (TMO).

The Missing Piece of Your Transformation Puzzle

At Prophet, we believe the core failure of most approaches to transformation is that they are not holistic enough to ensure either speed or success. We developed our Human-Centered Transformation Model to help see the range of efforts and the necessary interconnections across the DNA, Body, Mind and Soul of the organization. For instance, failed transformations frequently overemphasize technological changes (Body) without buy-in from business stakeholders around how new technologies will enable the strategy (DNA). Or they focus on training up new skills (Mind), without considering the mindsets and cultural behaviors (Soul) that match will with skill, ensuring new capabilities are actually applied in the real world.

Even with a holistic approach, aligning new behaviors, new skills, and new processes also require new ways of making decisions. And this is – to put it plainly – extremely hard without a team devoted to addressing that challenge head-on. We believe a team must actively manage and align those efforts, otherwise, there will be no change and no true transformation. And in our experience, this team cannot live within the rules of the existing organizational structure.

Where Does That Piece Fit Best?

We believe there are two models for this kind of structure for transformation management – federated or centralized. Many companies have (by default) adopted a form of federated management, which assumes that individual business units or functions can be accountable for managing their own transformation as a subset of the whole (see Figure 1). The challenge with this assumption and the federated approach is that you end up with lots of disconnected local work. Most frequently, these local efforts set themselves achievable goals with lengthy timelines and result in very little transformation. Occasionally, companies also set up Program Management Offices, to coordinate communications and track progress. But adding a PMO frequently adds centralized bureaucracy that is divorced from business value – you might get more done, but with less business impact (see Figure 2). The challenge is that these companies are working backward: the federated model is a destination, but it’s not at all the place where you need to start.

Figure 1: Centralized vs. Federated Approaches to Transformation Management

Figure 2: PMO vs. TMO

Prophet’s experience managing transformations of all stripes leads us to believe that you must start with a centralized model. And our research over the last two years has validated that those companies who set up a TMO with a clear roadmap and rituals around decision-making can overcome cultural roadblocks as they emerge. In fact, in our estimation, too few respondents in our recent Catalysts in Action research have stood up a TMO yet. However, 100 percent of those who have reported that it has had a positive impact on their transformation. And a whopping 83 percent reported its impact as “very positive.”

The DNA, Body, Mind and Soul of an Ideal TMO

To be successful, a TMO needs to address cultural challenges holistically across the DNA, Body, Mind and Soul of the organization. A critical first step is strong DNA:

  1. A clear vision about how the DNA of the organization is changing. Who do you want or need to become?
  2. A specific timeframe for achieving that ambition. When do we want to achieve our goals?
  3. Real metrics to serve as signposts. How will we know we’re making appropriate progress?

A TMO must also have a strong Body – an operating model for its core processes and functions that covers five key domains:

  1. Goals & Investments – Defining the transformation, setting goals, and overseeing ongoing investments.
  2. Portfolio & Governance – Overseeing work intake, classification, prioritization and resourcing.
  3. Education & Mobilization – Supporting in-flight projects by enabling teams to improve how they deliver on their goals and assisting with roadblocks.
  4. Reporting & Forecasting – Reporting and actively providing visibility and accountability for the value being delivered.
  5. Change Management & Communications – Providing an organization-wide point of view and air traffic control for change impacts across portfolios.

An operating model for the TMO outlines clear processes for each of these five areas, as well as interaction models defining how key stakeholder groups work together. Done well, TMO processes are not an added layer of bureaucracy; they help streamline effort across a wide range of leaders, teams, and individuals, giving them the clarity they need to take unambiguous action each and every day.

As part of standing up a new TMO for a major US insurer, our team worked together with key leaders to develop a “TMO Handbook.” The Handbook codified specifically how and where the new TMO would integrate with existing business planning processes, but also helped leaders across the business understand how and where to plug in and contribute to decisions about the company’s transformation.

The skills and competencies – the Mind – of a great TMO core team include strong EQ and communication skills to provide visual, verbal and written demonstrations of empathy to stakeholders struggling with rapid change; strong process facilitation skills to apply an Appreciative Inquiry-driven approach to collective problem solving; and strong analytical skills to be able to manage and measure progress. In building its TMO, a US financial institution was intentional about selecting resources with strong EQ and communication skills to staff it, given the level of executive interaction the small TMO team would need to support its charter.

Finally, in their Soul the TMO team must adopt a product ownership mindset, viewing the enterprise as a whole, demonstrating the behaviors and rituals common with the best product managers, including creativity, design, an agile methodology, and data-driven decision making. In this context, their product is the organization. As one of the first steps in managing its transformation, a leading quick-serve restaurant-trained key leaders of transformational initiatives in Agile ways of working, defining the responsibilities, decision-making and behaviors for portfolio and project leadership roles.

The TMO Lifecycle

Ultimately, a TMO is not something that should last forever. Like the transformations they empower, TMOs have a natural end date. The TMO team should know they have a role to play for a period of time, but that all the new capabilities they create should ultimately migrate into other parts of the business. Over the course of its lifecycle, a TMO should eventually move from a centralized to a federated model so that business leaders can go back to managing their individual parts of the business with a shared enterprise mindset and a new set of global and local capabilities. And as with many things in transformation, “timing is everything.”


FINAL THOUGHTS

Thinking about your own organization, consider where it stands in its own transformation journey – are you just getting started? Have you already made good progress? Or perhaps you’re well down the path to a transformed organization? If your organization is one of the 45 percent of companies who have already established a TMO, try to identify where it might be more effective across its DNA, Mind, Body and Soul. If not, consider where a TMO might be able to help accelerate progress with a more centralized approach.

If you’d like to establish an effective Transformation Management Office to propel your company forward at a new speed and instill a new culture of delivery then contact our expert team today

PODCAST

Reimagining Communications Podcast with Mat Zucker

22 min

In the 35th edition of the Reimagining Communications Podcast with Matt Swain “Leading with Your Heart and Your Head” Prophet Partner and Marketing Practice Leader Mat Zucker illustrates how effective communications shape a company’s brand, reputation, and culture by drawing upon his career at creative agencies and consultancy firms.

Listen here

You can also tune in to Mat’s Podcast Series “Rising” and follow him on LinkedIn & Twitter.


BLOG

Where Did the Watercooler Go? Keeping Your Culture Connected

Companies need to create virtual spaces that are casual, comfortable and safe.

Glug glug. The proverbial watercooler.

It’s where employees take a pause and engage in small talk. It’s where employees keep up to date on the latest developments. And it’s where many of the most innovative ideas first get floated. When employees can casually congregate at the watercooler, cafeteria or ping pong table, it breaks down formal barriers and encourages employees to bond with co-workers outside of their immediate working team. These personal connections not only build comradery but also enable trust and open communications, which are cornerstones to a healthy culture.

But with so many of us now working remotely, interactions with co-workers have become more transactional and largely only with those on our team or within our department or function. Save the occasional Zoom cocktail hour, serendipitous conversations are becoming virtually non-existent. A recent report found that virtual work now accounts for 62% of the workforce, and for many, work-from-home is here to stay. Although the world has adapted almost overnight to working remotely, organizations are now asking what impact this is having on their culture. Case in point: how can organizations recreate unplanned watercooler moments in a virtual work environment?

Creating the Right Environment

Remote work has forced us to think about new ways to support our people as they try to remain productive while feeling isolated and overwhelmed. Ensuring teams have the right digital tools, technology and access to the information they need to do their jobs are table stakes in virtual work. Preserving informal conversations and informal networking takes a bit more thought, especially without physical spaces like the coffee counter, lunchroom or Vinnie’s Pizzeria around the corner.

In a physical environment, the culture encourages watercooler moments through symbols, rituals and artifacts – naming the snack area, choosing unique furniture styles, and allowing personalization of meeting spaces. In a virtual environment, we have to be more overt about the watercooler moment to encourage organic interactions and fight the tendency to easily disconnect. Before looking at solutions to the problem, let’s define the qualities of a great watercooler moment:

  • It’s a safe space. Trust is pervasive to the experience. Employees need to feel they can ask questions, share ideas and be “wrong” without repercussion. Employees will avoid the company’s intranet for informal communications if it leaves a trail.
  • It’s casual and organic. Informal moments happen in the normal course of the day, on the way between tasks, or in scheduled breaks (i.e. lunch). It shouldn’t feel like another item on the “to-do” list.  Make it fun and easy to slip in and out of.
  • It’s acknowledged. While rarely explicit, unplanned interactions are acknowledged as essential to the culture. Successful leaders model desired behaviors by seeking out casual conversations, and encouraging their teams to do the same.
  • It’s iterative. Watercooler moments are just one step in a consensus-building process, that builds on and carries forward a continuing conversation. They don’t require hard inputs and don’t expect hard outcomes. It’s about the journey, not the destination.

“Personal connections not only build comradery but also enable trust and open communications, which are cornerstones to a healthy culture.”

Simple Ideas to Get Started

In some ways, virtual work has already begun to break down traditional organizational norms. Despite the lack of a corporate campus, decisions are being made and operations are proceeding, in some cases faster than ever before. The pandemic has created a rapid test-and-learn environment for new ways of working, and is a great opportunity to help your employees connect in new, more meaningful and personal ways despite the distance:

Leverage Technology:

  • Consider tools like the Slack app Donut that automate virtual coffee chats by pairing co-workers from different parts of the organization at regular intervals.
  • Encourage employees to stay logged into their virtual meeting apps (i.e. Zoom) during the workday and “drop in” for a quick conversation or brainstorm.
  • Conduct informal polls for favorite summer cocktails, recipes or outings; enable a comment feature to allow for additional interaction about the poll topic.
  • Create an #aboutme hashtag on the intranet where employees can share their hobbies, interests and passions and build affinity groups.

Create Collaboration Moments:

  • Form cross-functional working teams from different geographies, levels and skill sets to address social issues (i.e. community outreach, LGBQT, BLM).
  • Set up group chats on a messaging platform to discuss non-business topics like trending pop culture, parenting, fashion or music.
  • Host virtual brown-bag lunches to cook, share, eat and chat informally.

Have Fun:

  • Host a virtual concert where employees and their families can perform a song, play an instrument or do karaoke.
  • Encourage book or movie clubs where employees can share and discuss their latest Netflix binges.
  • Run a virtual game night where teams play a board game or on-line video game.

FINAL THOUGHTS

While we are all working remotely these days, it doesn’t mean our watercoolers need to run dry. Informal, unplanned interactions are essential to your company’s culture; they just need to be re-configured for this new world. Don’t overthink it.  Ask employees to make suggestions. Encourage perfectly imperfect solutions – they don’t have to be measurable – they just have to quench the thirst for the culture that already makes your organization great.

Are you interested in engaging your employees and transforming the way they work? Reach out to our Organization and Culture experts today and hear how we are helping clients just like you.

Your network connection is offline.

caret-downcloseexternal-iconfacebook-logohamburgerinstagramlinkedinpauseplaythreads-icontwitterwechat-qrcodesina-weibowechatxing