If you missed the Intro to the series, click here

How does the culture of the Patriots organization contribute to the Patriots brand?  When you think of the Patriots, what is the first thing that pops into your mind?  Super Bowls, Brady, Belichick, Dynasty, Winning.  Winning, that is the culture of the Patriots organization.  Other teams and players in the NFL know this.  Players sign with the Patriots because they want to win and they know that they will win when the play for the Patriots.  Refer back to the part in this series on Employees, the culture of the Patriots feeds the need for top talent.

How does the culture of your organization contribute to your brand?  When people think of your company, what is the first thing that pops into their mind?  Implementing the right culture can be challenging, changing the culture is often difficult. 

As a small business grows, changing the culture is often part of the company’s growing pains.  I think of a scene from the movie The Social Network when Facebook is hiring new employees to come out to California and Zuckerberg oversees a hacking challenge/drinking contest to see who gets the job.  Do you think they still do that at Facebook today?  Probably not and that is an example of the shift in the culture at Facebook.

As a small business coach and consultant, I help owners conceptualize the culture they want for their business and help them explore the internal and external impacts that their culture has. 

The Patriots culture revolves around winning, how about yours?

 Tim Kaelin - ProfitDriver

If you missed the Intro to the series, click here

I remember going to my first Patriots game when I was around 10 years old.  Back then the Pats didn’t play in Gillette Stadium, they played in Sullivan Stadium and the experience was quite a bit different than it is now. 

My first game was against Miami and it was in December, so we go into the concrete bowl that was Sullivan Stadium and take our seats on one of the long, frozen metal benches that filled the stadium (same as the field at my High School).  At the end of  the FIRST QUARTER the two guys sitting in front of us  get in a drunken brawl, but no security comes and the guys fight for a good 5 to 10 minutes. 

When they were done pounding on each other, they sit back down and continue drinking the giant bottle of Jack Daniels that they had brought into the stadium.  This was accepted and expected behavior when you went to a game.  It wasn’t the best experience for your paying customers and attendance was pathetic.

The players had to deal with the same debilitated facilities and resources.  The Pats had no practice facility, the weight room was non-existent and the medical staff was a joke.  It was so bad that players wouldn’t play for the Patriots.

How are you supposed to attract both customers and employees when your resources and facilities are so far below average that it is a risk to their health?

Look at what Kraft did to change that.  Gillette Stadium is a state of the art facility that caters to the customers and the experience they have during the game.  The players also have state of the art facilities, equipment, medical professionals, etc so that the players can deliver the best possible product on the field.  Because of this there is a long, long waiting list for season tickets and players now take LESS MONEY to come play for the Patriots.  It really is an unbelievable transformation in a relatively short amount of time. 

As I mentioned in the intro to this series, Kraft paid 175 million dollars for the Patriots, today the Patriots are valued over 1 billion.  Do you think this transformation has anything to do with the almost 500% increase in value?

How are you using your resources?  Do you use your resources to improve the experience that your customers have with your company?  Do you use them to attract the absolute best talent?  If not, why?  How can you use your resources as a competitive advantage in the market place, like the Pats do with free agents?  What is more important than the experience your customers have with your company?

During coaching sessions I discuss these with clients, help them develop answers that best fit their business and then work with them to implement the solutions.  In the end what you get is a more satisfied customer, a strong team of employees and a more valuable business.

I’ll give you a simple example.  A recent article in the Investor’s Business Daily was about customer service and how “many businesses have slashed human interaction…to reduce cost”.  How did they do this?  Offshore call centers.  These offshore call centers are one of the drivers for customer complaints, yet companies still use them.  The companies that have listened to their customers, invested their resources in US based call centers, have seen a steep decline in complaints and use their customer service as a competitive advantage.

They listened to their customers, use their resources to address a major complaint, developed a competitive advantage and now these companies are more valuable to customers, employees and investors.  Now, ask yourself, “Where are my resources being used?”

 Tim Kaelin - ProfitDriver

If you missed the Intro to the series, click here

One of the most repeated phrases you’ll hear when people talk about quarterbacks is “the face of the franchise”.  Tom Brady is clearly the face of the Patriots franchise.  While Tom Brady is an employee of the Patriots (the most valuable employee, but still just an employee), he clearly encapsulates the values that Kraft has set for the entire organization.  Because Brady perfectly represents the Patriots, each time he goes to work, whether it is on the field, in interviews, or public appearances, Brady always adds value to the Patriots brand because fans (customers) and advertisers see the Patriots values in action.  Many of the Patriots players fit this mold and those that do not are usually not with the team very long. 

Who’s the face of your franchise?  The face of your franchise is each employee who interacts with people outside your organization, whether it is customers, vendors or competitors.  If your customers have a difficult time dealing with one of your employees, that is what your customers will associate with your brand.  But the reverse is also true.  Let me give you an example.  One of the companies that I was fortunate to help build was a brewery called Tremont.  A large portion of our customers were restaurants and pubs in Boston that were either owned or managed by people from Ireland.  What we did at Tremont was have interns from Irish universities come and work as customer service reps so each time a pub owner called they heard an Irish accent on the other end of the phone.  Was our brand Irish? No, but our customers were and “the face of our franchise” was too. By enhancing the experience that our customers had when they called the brewery greatly increased the value of our brand to our customers.  How can you improve the experience that customers have with your brand?

One of the best pieces of advice I’ve read about matching employees to company values was about the rules that companies have in place to control employee’s behavior.  If you have rigid rules that dictate how employees are to behave, then you are hiring the wrong people for your company. If you hire the right people, you won’t need rigid rules, you’ll need loose guidelines which help employees make good decisions.  When you hire the right employees, you trust them to make the best decision for the company. If you don’t trust them, why did you hire them?

Employees are an integral part of your brand image and they are the face of your franchise.

 Tim Kaelin - ProfitDriver

If you missed the Intro to the series, click here

How do you implement your vision and values throughout your company? By hiring and promoting the correct management team who share and can implement your vision and values.

Kraft found the people who would give his brand credibility and the people who would best implement his vision.  Kraft also let go the people who didn’t fit his vision.  It started with Bill Parcells.  Parcells is a Hall of Fame coach who brought instant credibility to the organization.  Parcells began implementing Kraft’s vision of the Patriots being looked at as the hardest working football organization in the NFL.  After Parcells, Kraft hired Pete Carroll.  Carroll did not live up to “the Patriot way” and after 4 seasons Kraft recognized the misstep and let go of Carroll. This opened the door for Kraft’s most successful hire, Bill Belichick.  Belichick is considered a lock for the Hall of Fame, but not so when Kraft hired him.

When Kraft hired Belichick, Kraft was widely criticized.  Belichick’s only other head coaching experience was in Cleveland and it was a disaster ending with Belichick being fired.  Kraft looked beyond this, had confidence that Belichick would learn from his experience in Cleveland and named Belichick head coach in 2000.  Belichick’s success on the field is well known, but off the field, from a brand/business standpoint, Belichick’s role has been equally important.

Belichick’s philosophy of “just do your job” mirror’s Kraft’s vision of the Patriots being the hardest working organization in the NFL.  Even more important is Kraft has given Belichick the authority to run the team and the organization on a day to day basis.  In other words, Kraft does not micro-manage, he hires the right people for the right jobs and then lets them do their jobs.

Let’s translate this to your business.  First, what is your vision for your business?  What do you want people to think when they hear your company’s name?  This first step is critical, without it is like trying to drive a car without a steering wheel.  This is an area that I spend a good amount of time on with clients because a clear vision will help guide your strategic decisions. 

Second, hire leaders who embrace your vision and will take your company to the next level.  I know, I know, simpler said than done. Two ways to find leaders is through internal promotions or external hiring.

The Patriots hired externally, first with Parcells.  This is one possibility for your business, hire someone who is a well respected in your industry and adds value through his or her reputation.  However, if this person is not a fit, you should act quickly and make a change. 

Another avenue is to promote from within.    Some businesses prefer this route because you can train employees on how your business operates and develop them into leaders.  Belichick prefers this method.  He promotes coaches up the ranks because those coaches have been trained on how to do things “the Patriot way”.

Both methods are effective, just be thorough in your hiring process and hire the person who is the best fit for your organization.

Next segment on Employees will be available on Monday 4/25

Tim Kaelin - ProfitDriver

I’m a football fan and my favorite football day of the year is quickly approaching, the NFL Draft.  What does this have to do with your brand? I was watching some draft coverage this weekend and the draft analysts (what a job!) kept referring to “the Patriot way”, even when they were talking about other teams.  When the analysts said “the Patriot way” football fans, coaches, players, etc. all know what they mean because of the way the Patriots organization has built the Patriot brand.  In this 5 part series we will look at what Robert Kraft, owner of the Patriots, did to build the Patriots brand and how you can apply those strategies to your business.

If you do not know about the history of the Patriots, here is a quick synopsis.  Robert Kraft bought the Patriots in 1994 for $175 million, at the time the most ever paid for an NFL franchise.  When Kraft bought the Patriots, the Patriots were not only the worst team in the NFL, but they were an embarrassment off the field, with drug troubles and allegations of sexual misconduct towards female reporters.  All of these contributed to the Patriots being the least valuable franchise in the NFL.  So why did Kraft purchase the team for a record sum?

As an outsider looking in I would argue that Kraft had a passion and a vision for the Patriots and he was extremely confident in his abilities to turn his passion and vision into reality.

At the core of the Patriots success has been the Patriots brand and what that brand means.  Let’s look at 5 ways that Kraft built the Patriots brand to align with his vision and passion and how these can be applied to YOUR business.

Part 1 on 4/21/11

Tim Kaelin - ProfitDriver

On a scale of 1 (worst) to 10 (best), how do you rank your company’s customer service?  How many of you answered 10?  How many of you know, deep in your gut, that it is not a 10?  How many of you exceed your customer’s expectations?

On a scale of 1 to 10, your minimum customer service goal should start at 11 and go up from there.  Most customers EXPECT a 10 when it comes to customer service, you need to exceed that.  Meeting your customer’s expectations cannot be your goal, exceeding your customers expectations is necessary.

How do you know what your customer’s expectations are?  One simple way to find out is to simply ask them.  If I walked into the coffee shop next to my office and they asked me what my expectations are when I get my coffee, it would be simple, smile, ask me how I’m doing, and keep the line moving so I can get in and out quickly.  Those are my base expectations, or a 10 on the customer service scale.  What can they do to exceed that?

I’d like to share a recent terrific customer service experience I had.  I needed to have a couple diplomas plaqued so I called a trophy shop, Embassy Trophy, that I’ve been to a few times before.  I called on a Thursday around 2 and talked to Larry, the owner.  I couldn’t make it to the shop when they were open, so Larry asked if I could drop the diplomas off at his house on Saturday (shop is only open M-F) and he gave me his HOME address.  Saturday morning I went over to Larry’s house, rang his door bell, he answered and APOLOGIZED for the inconvenience (he lives 2 minutes from the shop).   It gets better.  2 weeks later when the diplomas were ready to be picked up, Larry called me and told me that he would leave the diplomas on his front porch so that I could pick them up on Saturday and for me to leave my business card in his mail box so he could send me an invoice.  He remembered that I couldn’t make it during the week and took it upon himself to fix this before I even brought it up.

This, to me, is a 15 on the customer service scale.  Here’s the power of customer service that exceeds expectations, I will go to Embassy Trophy every time and I will not shop for a better deal.  To me, Larry showed me he values me as a customer by exceeding my expectations, and now, I like giving Larry business.   

What can you and your business do to exceed your customer’s expectations so that they enjoy the experience of doing business with you?

I recently read a blog post from Seth Godin (author of The Purple Cow) titled On Pricing Power .  In his post, he talks about pricing, specifically not being paid what you are worth. 

Godin makes a few good points.  He says

“Cheaper is the last refuge of the marketer unable to invent a better product or tell a better story.”

Yes!  I have had this conversation with clients many times.  If the only way you and your business can compete is on price, close your doors because it is a battle you cannot win.  There will always be someone willing to do it cheaper, and even some who are willing to do it free. H&R Block will do your taxes for free…you get what you pay for, but it shows that you can get almost anything for free.

Godin also says

“The goal, no matter what you sell, is to be seen as irreplaceable, essential and priceless.”

I agree, but I think the most important thing about your price is it needs to reflect the VALUE that your product or service adds.  For example, you are putting an addition onto your home, you get two quotes from General Contractors you have never met, one quote is for $15,000 the other is for $800, which are you going to accept? 

The part of Godin’s post that I REALLY disagree with is:

“A cheaper substitute might mean buying nothing.  Personal coaches, for example, usually sell against this alternative.  It’s not a matter of finding a cheaper coach, it’s more about having no coach at all.  Same with live music.  People don’t go to cheaper concerts, they just don’t value the concert enough to go at all.”

A cheaper substitute is ALWAYS to buy nothing, no matter what you are thinking of buying.  If I wanted to buy a book, say one titled after a colored farm animal, my choices are to buy that book or to buy nothing.  I don’t find a cheaper book titled after colored farm animals, I just don’t value books about colored farm animals enough to buy them. 

Everyone sells against the buy nothing alternative.  You could buy a Ferrari and drive or you could buy nothing and walk.  You could hire an accountant or you could do your own taxes.  In the insurance industry, the buy nothing alternative is known as “self-insured”. Buying nothing is an option in every single purchase that every single person has made and ever will make. 

Price based on the value that your service and/or product provides to the customer.  Now, the hard part is finding what that value is.

Tim Kaelin - ProfitDriver

How often do you negotiate?  I bet it is more often than you think.  Negotiating happens every day and in every facet of life.  Most people associate negotiating with price.  How much can I get the other party to come down on price (or how much can I get the other party to pay)? While getting a good deal in your eyes may make you feel good, this type of negotiating can leave a better deal for both parties on the table.

Instead of negotiating price, negotiate VALUE.  Look at the negotiations as if you have already agreed on a price. What else of value can each party add?  Maybe price is very important to one party, but delivery time is important to the other.  In this scenario, negotiations can be based on “I can sell you this for $2, but I can’t deliver it for 3 weeks, but at $2.50, I can special order it and rush ship it for $3”.  One party gets price, the other party gets quick turnaround.

In order to negotiate value it is critical to understand your opponent’s needs.  Do not assume you know what their needs are, do some research.  How has their business been performing?  Are they strapped for cash?  Who is the decision maker?  What is the decision maker’s reputation? 

Another effective way to gain an insight into the needs of the other party is to role-play with a partner.  Have the partner play devil’s advocate and have them focus on the other side’s possible interests.

Also consider this when you are negotiating inside your business with employees.   I think most people assume that salary in the most important thing to employees.  What if it isn’t?  What if education, or career advancement, or benefits, or 401(k) matching, etc are just as important as salary to an employee?  Think of the employee’s needs and negotiate on meeting those needs.

Helping people prepare and improve their negotiating skills is part of my consulting and coaching services.  In a small business, effective negotiating skills can be an enormously beneficial tool that can help business owners not only add value to their business, but also add value to their clients businesses.

Are you negotiating value?

Tim Kaelin - ProfitDriver

I’ve mentioned before that I am not the biggest fan of Groupon.  As a consumer, I love them. Why should I ever pay full price for anything ever again?  For business owners, I think Groupon is a terrible idea. 

Quick example – I got a Groupon email that Redbones was offering 50% off your check – to 10,000 people!  I love Redbones, some of the best BBQ I’ve had, they have an outstanding beer selection, and the restaurant has a cool atmosphere.  Every time I’ve been to Redbones there has been a line.  Why are they giving 50% coupons to 10,000 people when their restaurant is packed almost all the time?  And who is going to use the Groupon?  I’m guessing people (like me) who already go and love Redbones.  Groupon makes me angry.  Why would you do this Redbones??

But karma has a way of coming back and it came back hard on Groupon. In case you missed it, Groupon aired a few commercials during the Super Bowl that have caused quite a bit of outrage out there on the internet.  The Groupon ad below makes fun of saving whales (Do you think Cuba was screaming “Show me the money!” when he filmed this?).  They had another one that made fun of the atrocities taking place in Tibet.

Are they offensive?  That’s up to you.  Are they funny?  Not in the least.   Are people angry?  Absolutely.  You would think that a company that was just valued at $10 Billion would have a shred of common sense.  Or a couple of focus groups to test the ads on. 

While the Groupon ads weren’t funny, Conan’s spoofs were.