THE POWER OF EMPOWERING YOUR EMPLOYEES

by Pablo J. Perez, Executive Coach

The term “employee empowerment” has been regarded by critics as an exercise to change the attitudes of workers, so they can work harder rather than giving them any real power. In other words, empowerment was linked to "attitudinal shaping." However, recent research suggests that people empowerment is a key element contributing to employee engagement and well-being.

Empowerment is a global term which includes many ideas regarding employee power and responsibility; but in general, it means giving employees the power to do their job better. It is providing the right motivation at the right moment, giving the employees the necessary alignment to the organizational goals, and make them feel that their work is important.

Does higher employee empowerment improve productivity?

The answer is yes. Empowerment = motivation = action = results!

There are 4 factors that should be considered in order to generate and maintain empowerment among employees:

1. Strong leadership and accountability
This starts with the executive leadership and extends to all management levels, supervisors and people that work for them. If all members of the organization play by the same rules and to achieve aligned goals can only be a positive end result .
2. Trust and communication
Management must develop trust and good communication with employees. High levels of trust and communication are the strongest signs of employee empowerment.
3. Create the right work environment
It is responsibility of the company's management to create the environment for employee empowerment. If employees are in an environment where “joy” is part of the formula, motivation and retention will increase dramatically.
4. Action
It has been said, “that you can lead a horse to water but you cannot make him drink.” The same can be said for employee empowerment. Once leadership takes action to encourage empowerment, it is up to the employees to take the opportunity.

To truly motivate your employees to perform at their peak, you must provide an adequate level of:

• Training
• Communication
• Personal and professional growth
• Ability to be creative
• Recognition and rewards
  

If you want to measure the level of commitment your organization has to develop employee empowerment, just survey employees as to how well they think you are doing in the above 5 areas. If you score poorly in more than two items then you have a lot of opportunity to increase organizational performance.

Remember, management has the obligation to create the environment that fosters employee empowerment and employees have the duty to accept the opportunity.
If you want to create and deploy a strategy to increase employee empowerment, please review our website at www.activategroupinc.com, call Pablo J. Perez at (305)722-7215 or send an e-mail to pjperez@activategroupinc.com.

Positive Marketing Creates Customer Loyalty

By Pablo J. Perez, Executive and Corporate Coach

Nowadays, in order to attract and maintain customers and open new markets, offers must go beyond products and services. People want to add positive things to their lives, buying products and services which will satisfy their needs and bring value to their daily activities.

Communicating positive messages that connect potential customers to their current goals and values furthers the goals of sustainability. Addressing these values connects them to what they care about and provides the impetus for innovative business practices.

During the last decade there has been a positive trend in business: Many companies now address corporate social responsibility (CSR), which is a concept whereby organizations consider the interests of society, taking responsibility for the impact of their activities on customers, suppliers, employees, shareholders, communities, and other stakeholders, as well as the environment. CSR is a voluntary effort to improve the quality of life for employees and their families as well as for the local community.

These positive efforts create a feeling of joy among employees, creating a positive energy which will be translated into more and better customer loyalty.

Recent reports indicate that communicating positive messages of a company’s actions to address environmental, social, and economical issues, favorably affects that company’s bottom line and produces good business opportunities.

More and more consumers want to buy products and services from companies that support their values, care about the environment, and can offer shareholders a solid return. Whole Foods, for example, promotes organic products grown by local farmers by inviting customers to learn about the farm and the farmer through colorful displays positioned near the products. Patagonia connects lifestyle and values by offering customers a recycling option for some of its clothing choices. Whole Foods and Patagonia connect to their customers by using positive messages to address issues of care: values and community. Other companies produce positive messages of sustainability, based on their business goals or mission.

Another example of how a company incorporates corporate social responsibility is Starbucks. Its social responsibilities are part of their mission statement.

A good marketing campaign needs to recognize the importance of communicating positive messages by making offers and developing trust and relationships. By connecting to people's cares, we affect outcomes – especially important when addressing sustainability.

We live in a world where the negative aspect of life and its consequences drive the buying or selling decision-making process. However, companies who not only say they care, but actually demonstrate caring about their employees, customers, and communities have a great competitive advantage.

Consider the saying, "People want to know you care, before they care about what you know." As human beings, we have a natural desire to belong and feel valued. It's the reason why people hate to be sold to ... we don't feel understood or valued for who we are.

Why do people want to hear positive message for their lives?

• They have the desire to do more and be more.
• They are looking for effective ways to make their dreams reality.
• They need motivation and accountability to truly accomplish their goals.

Motivated employees will motivate customers to become loyal to your company. Likewise, motivated customers not only will continue buying from you; they will invite their friends and families to buy your products and services.

Using positive messages in your internal and external marketing campaigns, and caring about your community and its environment, will bring your company a competitive advantage and sustainable growth.

Contact me today to learn how Activate Group helps individuals to increase their success and works with organizations to attain consistent revenue and profit growth rates of at least 20% annually. Call (305) 722-7215 or e-mail me at pjperez@activategroupinc.com.

Customer Retention. The Road to Profitability

By Pablo J. Perez, Executive and Business Coach


The notion that there is no linkage between customer retention and profitability is being proven false. There is a direct linkage between customer retention and profitability.

One survey found that a 5% increase in customer retention consistently resulted in a 25% to 100% increase in profits. These almost unbelievable results would suggest that there must be a powerful force, your emotional connection to your customer, which needs to be understood and effectively managed.

Customer retention is not only a cost effective and profitable strategy, but in today's business world it's necessary. This is especially true when you remember that 80% of your sales come from 20% of your customer and clients. With these statistics in mind, I am wondering why most marketing and sales campaigns are designed for the new customer.

Take for instance the wireless telephone companies; if you sign a new contract you are given a large rebate or even a free cellular telephone. If you are a current customer you have the privilege of paying full price. Can someone please explain that methodology to me. With this type of promotion are we not just pushing current customers and clients to seek services elsewhere when their contract ends?

Creating a new business model that focuses on customer loyalty and retention would show that there is, in fact, a linkage between all elements of a business system: your employees, customers, and investors—and the generation of profits. Providing customer value begins with a management philosophy that supports the cultivation of strong customer relationships and is implemented by having properly trained and motivated employees who know how to deliver value.

Research has shown that customers who have an emotional connection and feel valued will repeatedly be repeat customers as well as provide a strong referral base for new customers. Loyal customers repeatedly purchasing your product or service are what generate sustainable business growth and profit. However, your practices and processes that support loyal customer relationships must be in place first before you will begin to see a profitable impact. This model does not work in reverse, although many organizations seem to think the reverse is possible.


This new business model is important because it initiates a series of steps which cascades through the organization as follows:

1. Revenues and market share grow as your best customers build repeat purchases and recommend you to others who also become loyal.

2. Employee retention increases due to job pride and satisfaction, which in turn creates a loop that reinforces customer retention through familiarity and better service to the customers. Customers like doing business with people they know, and your employees want to do the right things because it makes their job far less stressful.

3. As costs decrease and revenues increase, profits increase. Improved profits provide resources to invest in employee development and compensation (further increasing retention) and in new features and products that enhance customer value. Profits are important not just as an end in themselves. They also allow the organization to improve value and provide additional incentives and reasons for employees, customers, and investors to remain loyal to your organization.

4. Costs begin to shrink as the expense of acquiring and serving new customers and replacing old customers declines. In our experience, it is five times more profitable to spend marketing and advertising dollars to retain current customers than it is to acquire new customers.

So what can you do differently for your business? Perhaps a good place to start would be to find better ways to create and sustain a loyal customer base. While there will be the need for an investment, the advantages will be enormous to your customers, employees, and investors. Strictly from a financial perspective, increased revenue from improved service quality tends to be 10-20 times the costs associated with fixing the problem.
If you want more information or you are interested on increasing your customer retention ratios, please call (305) 722-7215, or you may also send me an e-mail at pjperez@activategroupinc.com.

Reference and excerpts taken with permission from Customer Loyalty published by Resource Associates Corporation, Mohnton, PA.