Persuasion

Don’t Overemphasize Hitting Financial Targets

August 24, 2023 By Nagesh Belludi Leave a Comment

Research shows placing too much focus on hitting financial targets can have negative effects on employee morale. It can even lead to unethical behavior, such as cutting corners or falsifying data, which can ultimately harm the company’s reputation and financial performance.

When conversations constantly revolve around financial metrics, employees may feel like they’re reduced to mere cogs in the company machine, solely responsible for driving up profits to satisfy shareholders. Instead, foster a connection between employees and the organization’s purpose. Emphasize the intrinsic value of their work and remind them that it’s not just about monetary rewards. Personal growth, meaningful experiences, and recognition are equally important.

Let one message resonate throughout the organization: Your work holds significance beyond financial targets.

How to … Strengthen The ‘Asking Muscle’

August 23, 2023 By Nagesh Belludi Leave a Comment

Many people are afraid to ask—even negotiate—for what they want. Just because you ask for something doesn’t mean you’ll get it, but you must keep trying. In the same way that your body’s muscles need regular exercise to stay strong and flexible, the voices in your head do too. The more you practice asking (rehearse with a friend if needed,) the more comfortable it becomes.

Idea for Impact: Don’t wait for good things, as you may have been taught. Ask for what you want. With each triumph, you’ll gain confidence; with each disappointment, you’ll learn something. You’ll overcome the dread of asking for too much. You’ll conquer the fear of rejection or reprisal. Besides, you’ll be less deprived of what you’re reasonably entitled to.

Expanding the Narrative: Servant Leadership beyond Christianity

August 21, 2023 By Nagesh Belludi Leave a Comment

During the 1970s, Robert Greenleaf, an executive at AT&T, began popularizing a concept that challenged the idea of a heroic leader. He advocated for leaders who embraced humility and empowered their followers to lead.

According to Greenleaf, great leaders see themselves as servants first, and this fundamental understanding sets them apart. He taught, “Servant leadership begins with the natural feeling that one wants to serve, to serve first. Then conscious choice brings one to aspire to lead. That person is sharply different from one who is leader first, perhaps because of the need to assuage an unusual power drive or to acquire material possessions.”

Interestingly, this notion of “leader as a servant” aligns closely with the principles and teachings found in Christian scriptures, where Jesus Christ is often regarded as the ultimate example of a servant leader. Jesus exemplified humility, compassion, and selflessness in his interactions with others. In the Gospel of Mark, he declared, “For even the Son of Man did not come to be served, but to serve, and to give his life as a ransom for many” (Mark 10:45, NIV.)

While Christianity inspires its leaders to emulate the servant leadership model by prioritizing people, valuing service, and fulfilling their role as stewards, it is essential to note that servant leadership is not exclusive to Christianity. The concept can be found in other religious traditions as well. For instance, even the Śvētāmbara Jain Jñātādharmakathāḥ Sūtra (“Stories of Knowledge and Righteousness”) monastic texts contain elements of servant leadership.

In a past life, the monk Megha was an elephant. Frightened by a forest fire, he created a clearing to provide refuge when the fire next hit. He rushed to the clearing with all the other animals during a future fire. At one stage, he lifted his foot to scratch himself, and when he came to put it down again, he saw that a hare had squeezed into the space. So he stood on three legs for the entire duration of the fire — several days — and as a result, he fell over and died. This exceptionally compassionate act resulted in a human rebirth.

The Mahākapi Jātaka relates Buddha-to-be on his Bodhisattva path:

The story runs that the Bodhisattva was born as a monkey, ruler of over 80,000 monkeys. They lived near the Ganges and ate the fruit of a great mango tree. King Brahmadatta of Benares, desiring to possess the mangoes, surrounded the tree with his soldiers to kill the animals, but the Bodhisattva formed a bridge over the stream with his own body and, by this means, enabled the whole tribe to escape into safety.

Devadatta, the jealous and wicked cousin of the Buddha, was one of the monkeys in that life and, thinking it was a good chance to destroy his enemy, jumped on the Bodhisattva’s back and broke his heart.

The king, seeing the good deed of the Bodhisattva and repenting of his own attempt to kill him, tended to him with great care when he was dying and afterward gave him royal obsequies.

Servant leadership goes beyond any specific faith and encompasses a broader philosophy of putting others and organizations before oneself. It emphasizes the importance of valuing and prioritizing the interests and well-being of others. As the apostle Paul wrote in his letter to the Philippians, “Do nothing out of selfish ambition or vain conceit. Rather, in humility value others above yourselves, not looking to your own interests but each of you to the interests of the others” (Philippians 2:3-4, NIV.)

Thirteen Phrases Your Customers Don’t Want to Hear

August 14, 2023 By Nagesh Belludi Leave a Comment

When spoken with a particular tone, specific phrases can instantly infuriate and frustrate customers. Here are some alternatives to consider:

Avoid: “I don’t know.” Instead, try “That’s a good question. Let me check and find out.”
Avoid: “Just a second.” Instead, try “It could take me a few minutes to get that information. Could you hold while I check, or should I call you back in ten minutes?”
Avoid: “Wait.” Instead, try “I haven’t gotten to that yet.”
Avoid: “We can’t do that for you.” Instead, try “That’s a tough one. Let me see what I can do.”
Avoid: “You’ll have to…” Instead, try “Here’s how we can help you.”
Avoid: “That’s not my job.” Instead, try “I usually don’t handle that area, but I know who can help you. Let me see if he’s available.”
Avoid: “It’s your fault.” Instead, try “The way this process works is…
Avoid: “Why didn’t you do…?” Instead, try “Our process expects you to…”
Avoid: “How’s that my concern?” Instead, try, “I understand how upset you are.”
Avoid: “I know!” Instead, try “Yes, you’re right.”
Avoid: “As I explained earlier… Instead, try “Let’s review the steps again.”
Avoid: “Don’t you understand?” Instead, try, “Am I understandable thus far?”
Avoid: “Are you done?” Instead, try, “Will there be anything else?”

Master the art of words and deliver customer service messages with a confident, sympathetic tone. Create a personalized list of “Do Say” and “Don’t Say” phrases, drawing from your own experiences.

Reflect on the pain points and communication barriers that specifically frustrated you as a customer during customer service calls, as well as the instances where representatives provided positive interactions. Identify effective approaches and avoid pitfalls when engaging with customers.

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.

The Emotional Edge: Elevating Your Marketing Messaging

July 20, 2023 By Nagesh Belludi Leave a Comment

The Emotional Edge: Elevating Your Marketing Messaging

Messaging isn’t only about the product.

It isn’t solely about the problem.

It isn’t even just about the consequences of not solving that problem.

It’s about the emotional pain that you alleviate.

Good marketers highlight the benefits, value, or solutions that their product or service can offer. The best marketers often leverage emotional triggers to establish a deeper connection with consumers.

Three Questions to Ensure Alignment

July 17, 2023 By Nagesh Belludi Leave a Comment

When engaging in conversations with your partner, boss, or team, utilizing the following discussion framework can significantly contribute to productive discussions, cultivate shared understanding, and foster harmonious relationships:

Where am I headed? What are my expectations for you?
Where are you headed? What are your expectations for me?
Where are we headed? How can we bring about positive change?

Before initiating the conversation, it is beneficial to reflect on your thoughts and emotions. Gain a clear understanding of what you wish to discuss and consider how to communicate your expectations while demonstrating respect and empathy effectively. This self-awareness will greatly assist you in expressing yourself with clarity.

The overlap of these three questions is where friction will come from. What’s at odds with each others’ expectations?

Identify tension points. Plan around them. Push through with open-mindedness and a willingness to find common ground.

Why Incentives Backfire and How to Make Them Work: Summary of Uri Gneezy’s Mixed Signals

June 20, 2023 By Nagesh Belludi Leave a Comment

Misguided Motivations: The Folly of Incentives in the Great Hanoi Rat Massacre

In the late 18th century, Governor Paul Doumer of the French colonial government had a vision to modernize Hanoi. His plan included the introduction of toilets, which unfortunately attracted disease-spreading rats. As time passed, the rat population became a growing concern. In a desperate attempt to control the vermin invasion, the government launched a program that rewarded citizens for every rat tail they brought in, hoping to reduce the rat numbers. However, this seemingly brilliant solution turned into a catastrophic event.

Unbeknownst to the government, the citizens of Hanoi discovered a loophole in the system. Instead of exterminating the rats, they started amputating the rats’ tails without killing them. This allowed the rats to continue to breed more rats with tails, as these would become a future source of income.

The situation quickly descended into utter madness. Driven by insatiable greed, some individuals established rat-breeding farms to maximize their rewards, while others resorted to importing rat tails from distant regions. The unintended consequence of this perverse incentive scheme was a massive explosion in the rat population, exacerbating the very problem it was meant to solve.

This ill-fated event, known as the “Great Hanoi Rat Massacre,” is a notorious example of the dangers of perverse incentives.

The Unintended Consequences of Incentive-driven Actions

In his insightful book, Mixed Signals: How Incentives Really Work (2023,) Uri Gneezy, a distinguished behavioral economist from the University of California-San Diego, masterfully presents compelling examples that highlight the profound disparity between the intended behaviors incentives aim to promote and the unforeseen behaviors they unintentionally trigger. Gneezy’s astute analysis illuminates the perplexing nature of these gaps, offering invaluable insights into the actual workings of incentive systems. Another example of this point is the situation with many doctors operating under Fee for Service (FFS) payment models. In these models, doctors are incentivized to perform additional tests and procedures to increase their own payment. As a result, their focus may shift from promoting overall health to simply recommending more procedures.

To avoid sending confusing messages through incentives, Gneezy emphasizes the importance of carefully considering such initiatives’ potential outcomes and unintended effects. Gneezy strongly advocates for the use of prototype incentive programs.

Consider the case of the Wells Fargo cross-selling scandal, which was caused by aggressive sales practices. To increase the number of accounts held by existing customers, the company decided to motivate bank employees to promote additional services, like credit cards and savings accounts, to customers with checking accounts. However, due to a lack of proper oversight, employees resorted to fraudulent practices by creating over three million unauthorized credit card accounts without customers’ knowledge or consent. These unethical practices harmed customers who ended up with unwanted and unnecessary accounts, violated their trust, and exposed them to fees and penalties. In order to prevent such a scandal, Wells Fargo could have implemented prototype techniques and established an auditing system to verify the legitimacy of accounts randomly.

The Irony of Fines as Deterrents in Action

Gneezy brilliantly dissects the flawed notion that imposing fines is a universal remedy. He highlights how fines, often intended as deterrents, can backfire by diverting people’s focus from deterring behavior to merely avoiding punishment. For instance, when drivers are warned about the perils of texting while driving, they may genuinely reflect on the risks involved and the value of their own lives. However, the introduction of a $500 fine shifts their mindset. Now, their attention shifts from personal safety to the likelihood of encountering law enforcement. If they perceive a lack of police presence, the thought process changes to “No police around, no risk of getting caught—time to text!” In this way, the imposition of fines skews individuals’ attention from contemplating potential hazards to the probability of facing the consequences.

Recommendation: Fast-read Mixed Signals: How Incentives Really Work (2023.) Greezly’s work serves as a resounding reminder that designing an incentive system to encourage desired behavior while minimizing unintended consequences is no easy feat. Greezly’s advice on balancing multiple metrics to avoid the pitfalls of fixating on a single metric at the expense of others and the importance of regularly reviewing and updating the system while keeping a vigilant eye on unintended consequences is undeniably accurate.

Numbers Games: Summary of The Tyranny of Metrics by Jerry Muller

June 19, 2023 By Nagesh Belludi Leave a Comment

The Tyranny of Metrics (2018) by Jerry Muller, a historian at The Catholic University of America, is a poignant reflection on our society’s obsession with measurement. Muller’s eloquent arguments shed light on the dual nature of metrics—they can be valuable diagnostic tools, yet their misuse as the sole measure of success and tied to rewards poses significant problems. Drawing upon many empirical examples across various fields, Muller skillfully reveals the inherent pitfalls of our reliance on metrics.

Consider the initial allure of measuring and publicly disclosing the success rates of surgeons performing specific procedures. At first glance, this transparency appears beneficial, empowering patients to make informed decisions. However, a disheartening trend emerged once these performance scorecards entered the public domain. Surgeons, fearing a decline in their reported success rates, started avoiding the most complex cases. Shockingly, even cardiac surgeons refused to operate on critically ill patients, jeopardizing lives to protect their perceived success.

Muller further elucidates the case of hospital emergency rooms, where the pursuit of improving the metric for timely patient admission became paramount. In a tragic turn of events, the desire for statistical accolades overshadowed the urgent needs of the suffering. Ambulances formed a distressing queue outside the facility as the metric was manipulated, leaving genuine care and compassion languishing in the background.

In 2009, when Medicare implemented public reporting and penalties for hospitals with higher-than-average 30-day readmission rates, hospitals resorted to manipulating the metric. They cleverly distorted the numbers by categorizing many readmitted patients as outpatient services, concealing them and evading penalties.

Education, too, falls victim to the obsession with metrics. The relentless focus on using metrics to influence teacher retention or determine school closures has given rise to a phenomenon known as “teaching to the test.” Educators find themselves trapped, compelled to prioritize teaching subjects aligned with standardized exams, such as math and English while neglecting crucial skills like critical reading or crafting extended essays. Pursuing metric-driven success inadvertently sacrifices holistic education on the altar of narrow measurement.

During the Vietnam War, the US Defense Secretary introduced the “body count” metric. This idea, advocated by US Defense Secretary Robert McNamara, suggested that a higher number of enemy casualties indicated greater success and brought the US closer to victory. However, an unintended consequence emerged when the body count became an informal measure for ranking military units and determining promotions. In this dangerous pursuit of numbers, the metric lost touch with reality, often inflated to fulfill the desire for perceived success. Counting bodies became a precarious military objective in and of itself, overshadowing the true essence of the conflict.

Muller’s perspective does not advocate completely disregarding metrics as a management tool. Instead, he emphasizes the importance of utilizing meaningful and comprehensive metrics that contribute to informed decision-making. He distinguishes between measurable aspects and measurements that hold true significance.

To achieve this, Muller discourages starting with the metric itself. Instead of asking, “What metrics should we use?” he suggests a more practical approach: “What are we trying to accomplish?” This approach involves establishing goals and metrics that evaluate achieving desired outcomes and customer satisfaction (effectiveness) while efficiently utilizing available resources.

In a compelling concluding chapter, Muller encapsulates his central thesis with a resounding declaration: “Measurement is not an alternative to judgment; measurement demands judgment.” This statement emphasizes the need to make informed decisions regarding whether to measure, what to measure, how to interpret the significance of measurements, whether to assign rewards or penalties based on results and who should have access to the measurements.

Recommendation: Skim Tyranny of Metrics. This tome serves as an authoritative guide for comprehending the profound influence of numerical indicators on the very foundation of modern society. It should be considered essential reading for anyone seeking to understand why organizations often operate below their full potential.

The Streisand Effect: When Trying to Hide Only Makes it Shine

May 25, 2023 By Nagesh Belludi Leave a Comment

In a famous episode of the beloved British sitcom Father Ted, the main character and his fellow priests embark on a protest against the airing of a film titled “The Passion of Saint Tibulus.” The movie portrays a Catholic saint disrespectfully, causing outrage among the Vatican and local bishops. However, despite the priests’ efforts, their parishioners do not heed to the boycott. To their dismay, media coverage of the priests’ pickets only amplifies the controversy, inadvertently making the film even more popular.

This comical scenario perfectly exemplifies the Streisand Effect, a phenomenon wherein attempts to suppress something end up drawing more attention to it.

The term “Streisand Effect” originated in 2003 when singer and actress Barbra Streisand sued a photographer for including an aerial photo of her Malibu home in a collection of images documenting coastal erosion. The lawsuit garnered significant attention to the photo, which had only been downloaded six times before the legal action. Suddenly, the photo went viral, accumulating millions of views and symbolizing the Streisand Effect.

A more recent example of this phenomenon occurred in 2017 when then-White House press secretary Sean Spicer attempted to quash a story about his meeting with reporters. Spicer had requested that the reporters keep the meeting private, hoping to prevent it from being reported. However, his efforts backfired spectacularly when the journalists went ahead and wrote about the meeting. During a press briefing, Spicer scolded the journalists for disregarding his wishes, inadvertently bringing even more attention to the original story. Had Spicer ignored the reporting, the story might have fizzled out quietly. Instead, it became a viral sensation, sparking numerous memes and jokes.

These examples serve as a powerful reminder to carefully consider the potential consequences before attempting to suppress or control information.

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Persuasion

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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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Misguided Motivations: The Folly of Incentives in the Great Hanoi Rat Massacre

The Unintended Consequences of Incentive-driven Actions

The Irony of Fines as Deterrents in Action

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