Morningstar Communications Luminary Blog

I recently read a terrific article by Bruna Matinuzzi called The Pursuit of Flow on the American Express OPEN Forum. In this article she shares Mihali Csikszentmihalyi's prescription for getting into the flow in a business environment. Getting into the flow happens when you are so engrossed in a project that you lose your sense of time and it seems as if your skills almost magically rise to the level of the challenge. In order to get into this elevated state you need to feel both challenged and that your work is meaningful. As business leaders we are responsible for cultivating a work environment that allows our employees to experience flow in the workplace:

1. Provide work that is just challenging enough to avoid both boredom and anxiety.
2. Give people an opportunity to do work that is important. People need to feel like they are making a difference.
   
3. Establish clear short-term goals and expectations.
4. Give people control over their tasks.
5. Provide regular specific feedback.
   

In the long-run it will lead to happier, more dedicated and more effective employees.

That’s what the sign said, held by a young girl from her driveway on a cul-de-sac, in our very quiet neighborhood. As you would expect, there’s not much drive-by traffic.

Eric is an absolute pushover for a kid selling anything. He loves to nurture the entrepreneurial spirit. Knowing that we really don’t need any more stuff, he said, “I’m going to give her a dollar for her effort.”

As we pulled up next to the driveway, she ran to our car. That’s when we noticed her older brother arranging the merchandise on the card table. (There was truth in labeling…the table was covered in “stuff” you know, action figures, small games, etc…) Mom waved to us from inside the garage as our conversation began.

Eric said to her, “We really don’t want anything, but here’s a dollar for your effort.” She turned and ran to her Mom and shrieked, “We got a dollar!”

“You’re our first sale!” chirped in big brother. And capitalizing on the moment, he added, “We’re open every Friday.”

By now, Mom had joined the conversation next to our car and said, “You can’t just give my kids a buck,” and made her son bring us an unopened bottle of water.

As we drove off we were left with three key observations, all of which apply to Morningstar Communications and any other business:

• Hang a sign – let people know that you’re open for business. Who knows, the next person to come by might be your first – or biggest – new client. It’s not enough to just build a better mousetrap; you have to let your key audiences know about your business.
• Respond to the market – If Friday is the best day for a sale, then use this market feedback to drive your business. Successful businesses must continually adapt their product offering to market conditions.
• Give something unexpected – We really didn’t want a bottle of water, and we certainly didn’t expect anything for our dollar, but it honestly felt good to get something a little extra.
  

Are your signs out? Do you respond to market conditions? Are you giving more than expected?

Now that I think about it, we did get some pretty good stuff.

Heck of a value for a buck.
 

For me, as COO of Morningstar Communications, it always starts with the numbers, and then you add the creativity and analysis. A well-designed strategic communications program must drive business performance.

Recently The Measurement Working Group of the Public Relations Society of America presented key ways to document the impact of your public relations activities.

Traditionally public relations has been measured using terms such as “buzz” and “clips.” I believe a much better approach is to link public relations effectiveness to specific business objectives.

These goals should be relevant, realistic, specific, measurable and timely.

Effective strategic integrated communications can (and should):

• Increase customer loyalty, renewals or satisfaction
• Increase revenue, sales or profit
• Change employee behavior
• Minimize negative impact of a crisis
• Increase likelihood for a customer to purchase your brand
• Ease market entry
• Improve talent acquisition or retention
• Reduce legal expenses
• Impact voter behavior
• Change public policy
• Generate a premium on your stock price
• Increase donations or memberships

Before beginning a strategic communications initiative it’s important to establish effective benchmarks in order to measure changes in behavior or attitude.

The best benchmarks should be tied to whoever and whatever keeps your C-suite up at night.

And I can assure you, there are very few C-suite executives who wake up in the middle of the night worried about how many clips their company has been getting.

It is about the numbers.
 

6 Lessons Learned in the Downturn in Harvard Business Publishing by Anthony Tjan is chock-full of great advice for succeeding in the tough times ahead.

1.     Cash is king.

2.     Innovation and creativity matter.

3.     The customer buys first and foremost on price.

4.     For better and for worse, information moves at lightening speed.

5.     We don't know how the government stimulus will play out.

6.     Focus, focus, and focus.

As I was reading Hyatt's Random Acts of Generosity by Rob Walker with the New York Times I compared Hyatt's new policy to my customer service experience at Walmart. In both instances the customer might feel pleased and grateful for the way they were treated, but is it better to have random acts of generosity or consistent exceptional customer service? In a random scenario, there is a pretty good chance that the customer who doesn't get the extra gift will feel like they are being treated unfairly. On the other hand, if the reward or gift is consistent, it could lose the benefit of being a surprise. The best way to provide the surprise is to anticipate what your customer wants and give it to them before they ask. On a hot summer day, greet your guests with a cold water. Hold the door open for a person carrying packages. Call your customer and ask if they received the package you sent and if everything is in working order.

Surprising your customers with exceptional customer service will payoff with long-term loyalty.

I have two not-so-secret vices; I love to read romance novels, and I'm addicted to chocolate. In fact, I read so many novels that I have, on occasion, purchased a book I already own. However, if I happened to order the book online it could cost me half as much as the book is worth to send it back for a credit. So I thought I would be able to go to the Borders just down the street from our office and exchange the brand new, still on the the New York Times bestseller list book, for another one, or three, that I haven't read yet.

Borders policy is clear; they will not exchange any books without a receipt. I have no complaint with their policy; but I do think it's a foolish one. Here's what happened. I went to Borders, which is like walking into a kitchen with fresh baked chocolate chip cookies for me, and headed for the sales counter. The cashier said that I could not exchange the book, and then I walked out of the store without spending a penny.

At the same time, I asked one of my colleagues, Tricia, who is also an avid romance reader, if she knew of a place where I could exchange a book without a receipt. She directed me to Walmart. I don't typically shop at Walmart, but I thought it was worth a shot. I walked up to the customer service counter. The cashier asked for my receipt. I said I didn't have one. She apologized and said that she could only give me store credit for the current value of the book. Walmart gave me a $5.74 credit and I turned around and spent $145 that night. But more than that, I was impressed with the quality and quantity of books that Walmart offers, and the next time I need my fix, I'll shop at the store that gave me exceptional customer service, Walmart.

In the last 24 hours I have read and heard many different stories about how businesses need to adapt to suceed in our current economy. Here are some of the best tips I have heard:

1.    Reevaluate your product offering. Customers are buying different products and services today than they did a year ago. Today's consumer is more focused on value, customer service and finding a happy ending.

2.    Steal market share from competitors that are having serious financial difficulties. Keep your ears open for unhappy suppliers, this could be an advance warning that your competitors are nearing bankruptcy.

3.    Invest in long-term sustainability projects.

And of course, use integrated marketing communications to let all of your key publics know what you are doing, because in today's world it really isn't enough to build a better mousetrap.

If you want additional information please check out these reports:

As Manufacturers Buckle, Winners Emerge From Havoc by Timothy Aeppel of the Wall Street Journal

Companies still keen on green despite economy by Candace Lombardi on cnet

Economic Downturn Signals A New Normal by Robert Siegel on All Things Considered on NPR

Recession Fuels Readers' Escapist Urges by Motoko Rich of the New York Times