Employee Development

From the Inside Out: How Empowering Your Employees Builds Customer Loyalty

August 7, 2023 By Nagesh Belludi Leave a Comment

At a time when apathy and distrust are so endemic in many organizations, some companies have nurtured employee loyalty to create customer loyalty flourish. The following case studies will substantiate the cultivation of a positive work environment that prioritizes employee recognition and support invariably results in exceptional customer service.

The Nordstrom Way: Enabling Employees to Have the Freedom and Vision to Become Self-Directing

Nordstrom’s founders created a culture that prioritized a “worshipful relationship” with its luxury department store customers and empowered employees to do everything they could to please them. The Nordstrom Handbook emphasizes outstanding customer service and encourages employees to set high personal and professional goals, expressing confidence in their abilities. The company’s Rule 1 reads: “Use good judgment in all situations. There will be no additional rules. Please feel free to ask your department manager, store manager, or division manager any question at any time.” Nordstrom’s success is a testament to empowering employees and supporting policies prioritizing exceptional customer service.

Flying the Fun Skies at Southwest Airlines: Giving Employees the Freedom to Deliver a Great Brand Experience

Southwest Airlines achieved great success early on due to its committed and motivated workforce. Founder Herb Kelleher recognized the importance of prioritizing employee satisfaction to create a culture of caring for one another and providing excellent customer service. Kelleher famously said, “The business of business is people—yesterday, today, and forever. If the employees aren’t satisfied, they won’t provide the product we need.”

To create a positive work environment, Southwest Airlines encouraged fun among its employees, setting it apart from other airlines that were considered dull and unappealing. Celebrating employees and their families is deeply ingrained in Southwest Airlines’ culture, and it is evident in the prominent display of pictures capturing these special moments throughout their office spaces. This people-centric culture helped the company attract and retain talented workers passionate about their jobs and provide top-notch customer service, which made flying with the airline a fun experience. Despite the potential cost savings, Kelleher remained committed to celebrating employees with parties, banquets, gifts, birthday cards, and outings, citing the value of having the fewest customer complaints in the industry.

Beyond the Call of Duty: Ladies and Gentlemen Serving Ladies and Gentlemen at Ritz-Carlton

The Ritz Carlton is renowned for its exceptional customer service, with the empowerment of employees being a critical factor in their approach. The company’s philosophy of “Ladies and Gentlemen Taking Care of Ladies and Gentlemen” highlights the importance of treating customers and employees with respect and dignity. Regardless of their rank and title, employees can spend up to $2,000 per day per guest without seeking supervisor approval to solve problems and deliver personalized and unforgettable guest experiences. This approach may seem costly, but it empowers employees to use their judgment to create memorable and personal experiences for guests. One of my friends enjoyed staying at a Ritz-Carlton hotel a few months ago, where he ordered a burger and a milkshake. Unfortunately, the hotel did not offer milkshakes, so he settled for a glass of water. However, to his amazement, the waitress surprised him with a milkshake to accompany his burger. She went the extra mile without being prompted by scouring the kitchen for milk, ice cream, and cold milk to create the shake.

Idea for Impact: Empowering Employees is a Strategic Approach That Yields Significant Benefits

Empowering employees goes beyond providing the necessary tools and training; it fosters a culture of trust, autonomy, and ownership.

How you treat your employees directly impacts how they treat your customers. When you prioritize making your staff feel appreciated and supported, they are more likely to provide exceptional customer service. A positive work environment can foster innovation and creativity within your organization while attracting and retaining top talent.

What Every Manager Should Know Why Generation Y Quits

January 12, 2023 By Nagesh Belludi Leave a Comment

Millennials, or the Generation Y or Gen Y cohort, are much better educated. They’re tech-savvy, more achievement-oriented, and better problem-solvers than preceding generations.

Millennials also tend to be restless with their career progression, demanding salary and job flexibility. They’re quick to move on if something better beckons. Millennials aren’t interested in the financial success that inspired the Boomers or the independence that characterizes the Gen Xers, but in personalized career paths.

Employers often gripe that millennials seem entitled and overly ambitious. And even if they’re high-maintenance, they’re hungry and willing to do what it takes to prove themselves.

To prevent Gen Y retention problems, create an environment where they have room to make an impact and give them the autonomy, support, and training to get there.

Idea for Impact: Millennials become disengaged quickly in the workplace—they’re impatient with things that do not lead to learning or advancement. They never stop questioning the status quo; they don’t want to be told they must do their time and wait in line. Give them a way to move up promptly, with fun and challenges along the way.

Goal-Setting for Managers: Set Tough but Achievable Challenges

December 15, 2022 By Nagesh Belludi Leave a Comment

Finding the middle ground between setting the bar too low and too high can challenge managers.

Sure, aggressive goals can spark great accomplishments, but they also can induce employees to bend or break the rules in pursuit of those goals, as the Wells Fargo and Volkswagen scandals illustrate.

When employees get comfortable with their usual tasks, it’s time to push them outside their comfort zones. New responsibilities can propel employees to take on new challenges and learn new things.

However, before giving employees new tasks, take away some of the older responsibilities they’ve already mastered. Many people feel they have an unrealistic amount of work to do already. If you aren’t prudent enough to keep your employees’ workloads in check, giving “stretch” assignments can lead to burnout, not growth.

Idea for Impact: Goals that are too high or low can be demotivating. Set goals that are challenging and inspiring but with extra effort, realistically attainable.

Nuts! The Story of Southwest Airlines’ Maverick Culture // Book Summary

May 30, 2022 By Nagesh Belludi Leave a Comment

Kevin & Jackie Freiberg’s Nuts! Southwest Airlines’ Crazy Recipe for Business and Personal Success (1996) is a popular tome about the history and culture of Southwest Airlines and the fun-loving antics of its colorful co-founder and CEO Herb Kelleher (see my tribute.)

Despite its Pollyannaish tone and repetitive narratives, Nuts| is a very enjoyable cheerleaders’ account of how an underdog overcame roadblocks and thrived in a competitive industry.

Nuts| focuses on the people-oriented culture that Herb and his secretary Colleen Barrett established based on Herb’s well-known dictum, “The business of business is not business. The business of business is people.” To Herb, Southwest was a cause—never just a company. The Freibergs write,

If there is an overarching reason for Southwest Airlines’ success, it is that the company has spent far more time since 1971 focused on loving people than on the development of new management techniques. The tragedy of our time is that we’ve got it backwards. We’ve learned to love techniques and use people. This is one of the reasons more and more people feel alienated, empty, and dehumanized at work. Many organizations today would be surprised at how much more people would be willing to give of themselves if only they felt loved.

Nuts| is dreadfully out-of-date. Southwest and the airline industry have changed a lot since the mid-90s. Southwest even stopped handing out peanuts to protect passengers from peanut-related allergies.

The miracle at Southwest Airlines could keep on only so long. As long as Herb was the CEO, employees would go the extra mile for the sake of Herb. Until his retirement in 2001, Herb preserved Southwest’s unique cost structure and work rules. Kelleher’s successor, Jim Parker, presided over mounting labor tensions and quit after just three years. CFO Gary Kelly replaced Parker in 2004. Bob Jordan became CEO in 2022.

The going has not been smooth for Kelly. Southwest has become more like the other carriers regarding employee relationships and cost structure. The rehabilitated legacy airlines and a new breed of ultralow cost carriers have chipped away gradually at many of Southwest’s apparent competitive advantages. Yes, customers still rave about Southwest’s friendly staff, unpretentious service, and flexibility in travel planning. However, Southwest hardly ever has the lowest fares on most routes. In fact, Southwest’s average fares have outpaced the industry by 12% since 2009.

Recommendation: Speed-read Nuts! … it’s full of original insights, upbeat stories, and concrete suggestions for principle-centered leadership and how to inspire people to achieve incredible results. Here are the key takeaway lessons:

Even a little respect goes a long way. Give employees responsibility and entrust them to take that responsibility.
Set the ground rules—and let employees be creative. “Culture is one of the most precious things a company has, so you must work harder at it than at anything else.”
Give your employees some skin in the game, and they’ll go the distance. Southwest claims, “We have credibility because we tell people what we’re going to do and then we do it.”
Empower workers to make decisions at the customer level. Employees who feel they have leeway in their jobs to make the “right decision” depending on circumstances are happier, more confident, and more productive. They’ll even give extra—because they believe their work has special meaning and is not just a job.
Make sure people feel they can be themselves and have opportunities to express individuality.
See yourself as a motivator and a positive force. When things go wrong, accentuate the positive and focus on a path to a solution. It’s an approach that employees will admire and want to emulate.
Build a sense of community. Foster the feeling of a “family” in which employees can count on each other professionally and personally.
Recognize that employees have lives outside of work. Celebrate every milestone to establish and strengthen relationships. The walls of Southwest’s headquarters are covered with pictures and commemorative plaques of picnics, community service awards, customers’ commendation letters, service employee milestones, and tributes to important cultural events.

“Follow Your Passion” Is Terrible Career Advice

April 14, 2022 By Nagesh Belludi 1 Comment

The cliché “follow your passion” is easily the worst career advice you could ever give or get.

My guidance: Don’t do something you love. Do something you’re good at, even if it may not be something you’re passionate about.

Contentment isn’t likely to come from figuring out what you love and doing it for your career. Career success really comes from doing what other people will love you—and ‘compensate’ you—for doing.

Idea for Impact: You don’t have to give up your dreams, but pursue them as a hobby. Don’t try to find a perfect job. Find a good, if not a passion-filled, career and find the gratification of pursuing your passions outside of work.

Besides, people don’t really know what reality is like until they’re doing it. Therefore, perhaps a better way to choose what you do be to follow your effort? Be flexible. Have a broad view of what you wish to achieve, and be prepared to compromise on how you make it happen. Enjoy the work that you do, and discover aspects of it you’d enjoy regardless of being paid or not. True career contentment comes from an appreciative boss, helpful coworkers, the opportunity to learn and grow, a reasonable commute, and a middle-class living.

What To Do If Your New Hire Is Underperforming

March 22, 2022 By Nagesh Belludi 1 Comment

If a recent hire, particularly one brought into the team with high expectations, isn’t delivering, start by asking the following two questions:

Is the employee in an environment that allows her to perform at her best?
Are you clear on what her personal objectives are?

Only after answering both these questions with a ‘yes’ can you move to consider coaching, reassess the employee’s suitability, and examine if you need to terminate the bad hire quickly and cut your losses.

Idea for Impact: Nothing puts wind beneath a manager’s wings more quickly than asking these two questions when dealing with employee underperformance. Ask, don’t guess, how you can accommodate each employee’s strengths and needs and create an environment that works best for each individual.

There’s no one-size-fits-all answer to creating a positive culture, empowering employees, and tackling performance problems. Each employee faces individual challenges and has her own goals and preferences.

How to Start a Hybrid-Remote Work Model

June 19, 2021 By Nagesh Belludi Leave a Comment

As the pandemic subsides (at least for now,) many companies are summoning employees back to the office. Some companies are giving workers a combination of remote and co-located work.

To initiate a hybrid-remote model for your workplace, first reconstruct how your team gets its job done. Ask, “What activities can be remote?” instead of “what roles can be remote?”

Not every activity can be equally performed in a remote setting. Take into account the level of human and physical interaction needed for every task.

Consider breaking down business activities that were formerly bundled into a single job. Mix and match responsibilities and tasks in keeping with employee competencies and individual needs.

Every employee responds to work circumstances differently. Some employees are eager to return to work—especially if they’ve struggled with blurring home and office during the pandemic, or if they fear disadvantages such as a lack of visibility for promotions.

Create a Diversity and Inclusion Policy

April 24, 2021 By Nagesh Belludi Leave a Comment

The moral and business cases for diversity are well known—a diverse and inclusive workplace earns deeper trust and more commitment from their employees.

Having a diversity and inclusion policy is simply the right thing to do—leaders have to make their values and intentions clear.

As a company, you’re not legally required to have a written diversity and inclusion policy. Nevertheless, it’s a good idea to create and actively use one.

Diversity and inclusion are ongoing initiatives—not one-off training. (Sadly, diversity classes are sometimes just a tactic for reducing employee lawsuits.) A policy encourages your employees to treat others equally with civility and decency and helps managers value employees for their strengths.

In many discrimination claims, employers may have a defense if they can show that they took all reasonable steps to deter discrimination. A comprehensive policy and recent appropriate training can help employers distance themselves from liability for acts such as harassment by an individual perpetrator employed by your company.

A policy also demonstrates that your company takes its legal and moral responsibilities towards being a diverse and inclusive employer earnestly.

Idea for Impact: A strong diversity and inclusion policy can help your company embed good practices—not only across your organization but also throughout your supply chains, including the customers and the communities your company serves.

How to Manage Overqualified Employees

September 16, 2020 By Nagesh Belludi Leave a Comment

Some employees are overeducated and overqualified—or think they are—for the jobs they are doing.

Such employees will find their roles not demanding enough to keep them occupied. They may not feel fully engaged in those tasks and responsibilities that they judge “beneath” them.

Toffee-nosed employees can create team tension. They can develop negative attitudes, such as a sense of entitlement about their skills (remember the FedEx “Even an MBA Can Do It” advert?) or resentment through boredom. That frustration and disillusion can ripple out and bring everyone else in the team down.

Here are two guidelines for managing overqualified employees:

To keep overqualified employees engaged, allow more autonomy, and assign them more creative assignments. Delegate longer-term projects or have them collaborate with other teams within the company. Though, be mindful that this may create even more resentment in the team towards the perceived overqualified employees. Discuss with the team why some people have been chosen for those special assignments.
Work together with the human resources staff and help the overqualified employees chart out individualized paths for climbing the corporate ladder and reach their potential. Find ways to help them acquire new skills and get exposure to other parts of the organization. Coach them to apply for roles that possibly do not yet warrant their experience and expertise. Expand their leadership capacity by assigning training and mentoring responsibilities.

Idea for Impact: Nurturing and keeping overqualified employees can create a strong foundation for tomorrow’s management team.

How Can a Manager Get Important Things Done?

January 13, 2020 By Nagesh Belludi Leave a Comment

Distinguish the Variances That Require a Manager’s Attention

When critical care facilities in hospitals monitor patients’ vital signs, staff nurses are notified only when vital signs go beyond each patient’s pre-programmed range. Unless the monitoring devices sound an alarm, nurses take for granted that the patient’s condition is stable enough and will receive only routine medical attention.

The “Management by Exception (MBE)” method is the notion that a manager’s attention must be focused only on those areas in absolute need of his/her engagement.

As a rule, lower-level managers should handle recurring decisions. Only problems concerning extraordinary matters should be referred to higher-level managers.

This “exception principle” emphasizes that executives at the upper levels of an organization have serious restrictions on their time, capacity, and willpower. They should refrain from being caught up in minutiae that can be handled just as effectively by their junior managers.

A case in point: many companies establish protocols that designate the level of authorization required for purchases. Companies delegate authority carefully, prescribing spending limits for each level. For instance, a team leader’s approval is necessary for purchases of over $1,000. A department manager must approve purchases of over $5,000, the divisional leader for purchases of over $10,000, and the CEO for purchases over $50,000.

Managers Just Can’t Do Everything

The exception principle helps managers focus their attention on more worthy matters that justify their attention. Most managers hesitate to manage by exception because of the very human predisposition to focus on the immediate, tangible, and well-defined problems as against the distant, high-priority, challenging, and abstract problems.

In other words, mangers must distinguish programmed decisions from non-programmed decisions. Programmed decisions are routine activities that are well-defined and can be dealt with by using an established protocol. Non-programmed decisions are exceptional or significant endeavors that involve unfamiliar, one-time, and unstructured problems needing higher-level decision-making.

Idea for Impact: Don’t Get Lost in the Thicket of Trivia

As a manager, there are only a few things that you must do. Focus on those and delegate the rest. But keep an eye on how things are going; you are still accountable for any work you delegate.

Decentralize as much decision-making as possible. Establish protocols and standard operating procedures (SOPs) that empower your staff and enable your organization virtually to run itself.

Identify what deviations constitute as an exception and intervene only to solve significant problems.

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Employee Development

The Nordstrom Way: Enabling Employees to Have the Freedom and Vision to Become Self-Directing

Flying the Fun Skies at Southwest Airlines: Giving Employees the Freedom to Deliver a Great Brand Experience

Beyond the Call of Duty: Ladies and Gentlemen Serving Ladies and Gentlemen at Ritz-Carlton

Idea for Impact: Empowering Employees is a Strategic Approach That Yields Significant Benefits

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Distinguish the Variances That Require a Manager’s Attention

Managers Just Can’t Do Everything

Idea for Impact: Don’t Get Lost in the Thicket of Trivia

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