Daniel Dutesco DrivingPerformanceThroughEmployeeEngagement-InfopresseRDVRetail2016

ORCHRD
DRIVING PERFORMANCE
THROUGH EMPLOYEE ENGAGEMENT
MAY 25th, 2016
Daniel Dutesco, Chief Strategy Officer, ORCHRD Group
orchrdgroup.com

RETAIL TRANSFORMATION IS ACCELERATING
ORCHRD© ORCHRD Group
orchrdgroup.com

ORCHRD
“CUSTOMER EXPERIENCE
IS A FUNDAMENTAL DIMENSION
OF HOW A COMPANY COMPETES”
IN THIS CONTEXT OF TRANSFORMATION
Joseph Pine, The Experience Economy
© ORCHRD Group
orchrdgroup.com

195 brands /15 industries
30,000 people
CUSTOMER EXPERIENCE INDEX
ORCHRD
“Significant difference between
leaders and laggards”
© ORCHRD Group
orchrdgroup.com

“A number that transforms the way we need
look at building customer experiences”
orchrdgroup.com

The number of Canadian companies that
received an “excellent” score (out of 195):
orchrdgroup.com

The number of Canadian companies that
received an “excellent” score (out of 195):
0
orchrdgroup.com

•  What causes truly outstanding companies to excel?
•  How do successful companies maintain momentum?
•  What makes their teams, methods and their people different?
•  Why do successful market leaders ignore disruptive new entrants?
•  Why do companies with the same leadership, infrastructure and
skillset, deliver such different experiences
across offices/regions?
orchrdgroup.com

3 DISRUPTIVE FORCES THAT ARE SHAPING RETAIL
DIGITAL & MOBILE
Digital is influencing over 60%
of our purchases. Mobile has
transformed purchase habits,
marketing and
the retail experience.
CUSTOMER JOURNEY
The Omni-Channel experience -
Consumers want a connected,
consistent, and customized
experience across devices.
OPERATIONS/TECH
“Amazon Effect”
forced retailers and malls into
accelerating implementation
ecommerce solutions
orchrdgroup.com

FORRESTER CUSTOMER EXPERIENCE INDEX Q3 2015, AT Kearney – WSJ McKinsey
78%
of consumers and
82% of Millennials prefer
to purchase in store
90%
of retail sales are still
occurring in a physical
store
52%
of shoppers believe
shopping has become
too impersonal
orchrdgroup.com

People are still at the core of a
brand’s customer experience
WHAT THIS MEANS
orchrdgroup.com

THE PEOPLE CHALLENGE
orchrdgroup.com

24%
Actively
disengaged
13%
of employees are
engaged
worldwide
63%
Disengaged
“Don’t really care”
Gallup’s 2013 “State of the Workplace
87% OF EMPLOYEES ARE DISENGAGED
orchrdgroup.com

Society for Human Resource Management (SHRM),Hess Jobs
Up to six months in salary to replace a hourly worker
Up to 18 months to replace a manager
7%Overall Employee Turnover
Canada
15-23%Employee Turnover
Retail Sector
65%Turnover of
temp workers in Retail Sector
orchrdgroup.com

WHY THIS MATTERS
$1 BillionEstimated turnover cost for
replacing 60% of Walmart’s entry
level/temp employees
Bloomberg ORCHRD© ORCHRD Group
orchrdgroup.com

2020 – 50%
2025 – 75%
“a new set of expectations”
ORCHRD
TURNOVER WILL CONTINUE TO BE A CHALLENGE
MILLENNIALS AS PERCENTAGE OF GLOBAL WORKFORCE
© ORCHRD Group
orchrdgroup.com

25% of Millennials believe that
staying at a job for seven
months indicates they're loyal.
ORCHRD
EMPLOYEE ENGAGEMENT BECOMES CRITICAL IN A COMPANY’S SUCCESS
The Center for Generational Kinetics© ORCHRD Group
orchrdgroup.com

Temkin Group, Gallup, Most Engaged Employees
48%
Fewer
safety incidents
2.5X
more likely to work
late if something
needs to be
2X
Customer loyalty
2X
Higher Productivity
2X
Lower turnover
41%
Fewer
quality defects
3X
To do something
good for the
company
2X
more likely to help
someone at work
even if not asked
9X
More loyal
2X
Fewer
Sick Days
orchrdgroup.com

IES
1%
Increase in
employee
commitment
9%
increase in sales=
orchrdgroup.com

WHAT IS THE RECIPE FOR
EMPLOYEE ENGAGEMENT
orchrdgroup.com

TYPES OF OPERATIONAL DNA
Ad-hoc initiatives in
response to market or
competitive
pressure
Product-centric
organization. Strategy is
focused on short-term
sales and customer
acquisition
Consumer-focused
organization.
Seek differentiation,
efficiencies and
client retention
REACTIVE
TACTICAL
STRATEGIC
orchrdgroup.com

THESE COMPANIES ARE DIFFERENT
orchrdgroup.com

A 4TH TYPE OF OPERATIONAL DNA
Ad-hoc initiatives in
response to market or
competitive
pressure
Product-centric
organization. Strategy is
focused on short-term
sales and customer
acquisition
Consumer-focused
organization.
Seek differentiation,
efficiencies and
client retention
REACTIVE
TACTICAL
STRATEGIC
CONSCIOUS
ORGANIZATION
orchrdgroup.com

CONSCIOUS ORGANIZATIONS STAND OUT
ORCHRD
con·scious - ˈkän(t)SHəs/
Adjective: An advanced state of awareness. Deliberate; Intentional;
having the mental faculties fully active; having a soul..
© ORCHRD Group
orchrdgroup.com

They stand out
not only through
their capacity to find ideas
but more importantly
THEIR CAPACITY TO IMPLEMENT IDEAS
orchrdgroup.com

THE 10 TRAITS
OF CONSCIOUS
ORGANIZATIONS
orchrdgroup.com

1. THEY ARE DRIVEN
BY PURPOSE
orchrdgroup.com

“To provide a place where everyone
can feel they belong”
orchrdgroup.com

orchrdgroup.com

“Our goal here is to fundamentally
change the way the world uses energy”
orchrdgroup.com

“An ambitious, positive and uncompromising
vision of the future”
AT THEIR CORE, CONSCIOUS ORGANIZATIONS ARE DRIVEN BY
A VISION TO BUILD A BETTER COMPANY and A BETTER WORLD
orchrdgroup.com

“After surveying over 20,000 workers around the world,
analyzing 50 major companies, conducting scores of
experiments, and scouring the landscape of academic
research in a range of disciplines, we came to one
conclusion”:
Why we work
determines
how well we work.
ORCHRD
HARVARD BUSINESS REVIEW
© ORCHRD Group
orchrdgroup.com

6 in 10 Millennials cite a
“sense of purpose,” as part
of the reason they chose to
work for their current
employers
Deloitte ORCHRD© ORCHRD Group
orchrdgroup.com

Purpose Driven Companies
are up to 4X more profitable
MILLWARD BROWN, JIM STENGEL, BUSINESS INSIDER ORCHRD© ORCHRD Group
orchrdgroup.com

Organizations in which employees are primarily motivated by shared values
and a commitment to a mission and purpose are
9X more likely to have high customer satisfaction
LRN Corporation ORCHRD© ORCHRD Group
orchrdgroup.com

What drives our organization?
“What is the element against which we measure
our people and decisions?”

ORCHRD
EVERY COMPANY WANTS TO “MAKE LOTS OF MONEY”
© ORCHRD Group
orchrdgroup.com

2. THEY CREATE
ALIGNMENT
orchrdgroup.com

“How to Think vs. What to Think”
2. Ensure employees understand the levers that drive
the business.
1. Instill frontline workers with purpose, not rules.
CONSCIOUS ORGANIZATIONS CREATE ALIGNMENT
BY SIMPLIFYING DECISION-MAKING AND TEACHING PEOPLE
orchrdgroup.com

EMPOWERMENT
creates
Responsibility & Accountability
orchrdgroup.com

“Alignment to strategy, teams knock out projects successfully 90 percent of the time. Those
that neglect strategic alignment are successful only 34 percent of the time. Alignment between
sales and marketing can result in up to 209% more revenue from marketing.”
ALIGNMENT=
Collaboration + Agility + Consistency
PMI Institute ORCHRD© ORCHRD Group
orchrdgroup.com

3. EXCEL AT
EXPRESSING WHAT
MAKES THEM UNIQUE
orchrdgroup.com

Co-workers
EMPLOYEE
STAFF
PERSONNEL

155,000
LANGUAGE
ORCHRD © ORCHRD Group
orchrdgroup.com

“Our rule of thumb is that nobody
should hear about anything
externally, until we’ve told them
internally,” Mark Levy
Global Head of Employee Experience
COMMUNICATIONS
orchrdgroup.com

UNCOMPROMISING CONSISTENCY
orchrdgroup.com

TRUST
Set your own hours.
Go surfing any time.
The headquarters are locked at
8 p.m. and on weekends
orchrdgroup.com

TRANSPARENCY & EMPOWEREMENT
•  Store sales, team sales & profit margins are
available to every person
•  Access to every employee salary including
management.
•  Only teams though a voting process have the
power to approve new hires for full-time jobs –
store manager has only one vote
"Whole Foods is not a hierarchy. It’s a social system. We don't have lots of rules handed
down from headquarters in Austin. Peer pressure substitutes for bureaucracy. Peer
pressure enlists loyalty in ways that bureaucracy doesn't.” CEO John Mackey
orchrdgroup.com

“How do we create value for our employees?”

orchrdgroup.com

4. THEY HIRE
FOR ATTITUDE
NOT APTITUDE
orchrdgroup.com

89% of people who leave or are
fired because they’re not a good
fit in the company’s culture.
Leadership IQ ORCHRD© ORCHRD Group
orchrdgroup.com

In 2015, Airbnb received 180,000 CVs
for 900 posted positions
orchrdgroup.com

Evaluated not just on results, but how you live the values
orchrdgroup.com

“Do the best you
can to hire for fit .
You can always
train for skill.Kat Cole, President Cinnabon
orchrdgroup.com

5. OBSESSIVE ABOUT
THE CUSTOMER
JOURNEY
orchrdgroup.com

Today research is at the heart of IKEA’s expansion.
“The problem with research is that people lie.”
Michael Ydholm, IKEA Research

orchrdgroup.com

ORCHRD
STORE LAYOUT“At Judith & Charles, we want to override any uncertainty
women feel choosing or wearing clothing. We aim to facilitate
the confidence, strength and comfort women need in the
boardroom, at a first interview, or on a weekend.”
© ORCHRD Group
orchrdgroup.com

ORCHRD
MERCHANDISING
© ORCHRD Group
orchrdgroup.com

ORCHRD
TAILORING
© ORCHRD Group
orchrdgroup.com

“How well do we understand not just the
customer needs or touch-points,
but the Customer Journey?”

orchrdgroup.com

6. THEY EMBRACE
FAILURE

“I’ve missed more than 9,000 shots in my
career; I’ve lost almost 300 games.
Twenty-six times I’ve been trusted to take
the game winning shot and missed.
I’ve failed over and over and over again
in my life. And that is why I succeed.”
Michael Jordan
orchrdgroup.com

“We are world champions in
making mistakes, but we’re
really good at correcting them.”
orchrdgroup.com

“In the corporate world, when someone makes a
mistake, everyone runs for cover,” At Microsoft, I
try to put an end to that kind of thinking. It’s fine
to celebrate success, but it’s more important to
heed the lessons of failure.
How a company deals with mistakes suggests
how well it will bring out the best ideas and
talents of its people, and how effectively it will
respond to change.”

Bill Gates
orchrdgroup.com

“failure is
a critical
ingredient on
the path to
success”
ORCHRD
orchrdgroup.com

Psychological Safety, more than
anything else, was critical to
making a team work.
ORCHRD
PROJECT ARISTOTLE: COMMON INGREDIENT TO SUCCESSFUL TEAMS
© ORCHRD Group
orchrdgroup.com

TRUST
INITIATIVE
INNOVATION
GROWTH
IMPACT
orchrdgroup.com

“Are we building an environment of trust?”

orchrdgroup.com

7.THEY UNDERSTAND
THEIR
REAL COMPETITION
orchrdgroup.com

The challenge of most companies have is that
they play a game called “follow the follower”
COMPANY A COMPANY B
orchrdgroup.com

Consumers do NOT compare you to direct competitors,
THEY COMPARE YOU TO THE BEST IN THE WORLD
orchrdgroup.com

embed their business and their people
with the idea that
THEIR COMPETITOR IS THE “STATUS-QUO”
orchrdgroup.com
CONSCIOUS ORGANIZATIONS

“The advantage you have yesterday, will be replaced by the trends of
tomorrow. You don’t have to do anything wrong, as long as your
competitors catch the wave and do it RIGHT, you can lose out and fail.”
“We didn’t do anything wrong, but somehow, we lost”
NOKIA CEO, Stephen Elop
ORCHRD LinkedIn post by Ziyad Jawabra© ORCHRD Group
orchrdgroup.com

8.THEY THINK LONG TERM
AND FOCUS ON
DISRUPTIVE
INNOVATIONS
orchrdgroup.com

The inherent way profitability is measured (return
on net assets) or how decisions regarding
investment in innovation( internal rate of return)
causes us to focus on profitability and ignore low
end of the market market.
New entrants (Low price/quality/functionality ) enter
market + then improve product + market appeal.
In the long run disrupt traditional businesses,
+ take over market
KEY REASONS WHY SUCCESSFUL COMPANIES FAIL
Clay Christensen, Harvard Business School, Disruptive Innovation
Sound Financial Practices + Sustaining Innovation
orchrdgroup.com

1.  Borders outsourced its online book-selling to Amazon.com
2.  Didn’t foresee the rise of e-books
3.  Added Café
4.  Started investing in CD sales when people were buying iPODS
5.  Cuts = unmotivated staff = operational issues
1.  Variation between best and store - 43X
2.  One in six customers experienced a phantom stock-out
(product in inventory but not at right place – customer/
staff cannot find it) = POTENTIAL +25% PROFITS
“We’ll Create Efficiencies
+ Improve our Offer”
Time, HBR ORCHRD© ORCHRD Group
orchrdgroup.com

Disruptive innovators create
“AN UPHILL AVALANCHE”
orchrdgroup.com

Princess Victoria of Denmark Princess Victoria of Sweden
$250 DRESS
Princess MeLe-Marit of Norway
orchrdgroup.com

“Who are the players and what are the trends
that we can’t ignore.
What are we doing to prevent them capturing market share?
Do we understand their long term strategy & potential?”

orchrdgroup.com

9. THEY ARE
ACTIVE COACHES
orchrdgroup.com

“People don’t join companies,
they join teams”
orchrdgroup.com

51% of employees
report they receive
“no input” from
superiors on how to
perform better in
their roles
Mercer, Gallup
Among teams with
managers who ignore
their employees
engagement plummets
to 2%
orchrdgroup.com

Employees spend on average 13 hours during the workweek
and 6.2 hours on the weekend worried about what their boss
thinks, says or does
Glamour Health ORCHRD© ORCHRD Group
orchrdgroup.com

District managers average time per day
interacting with frontline sales/service staff
PWC
5-10 MIN
ORCHRD
orchrdgroup.com

EXCEL FILES PROVIDE ONLY A PARTIAL VIEW (RESULTS)
Data is key, but it does not tell you
HOW they achieved results, nor the WHY behind the output

Keith Rosen
“Assumptions are the leading cause of lost sales”
orchrdgroup.com

Our “anti-bureaucracy” weeks also give us a taste of reality. Reports direct from the horse’s mouth are far more
convincing than written ones. That’s why we are firm believers in “management by walking around”, which
someone aptly translated into the IKEA expression “management by running around”.
An eye for detail is an important quality in an IKEA manager. RETAIL IS DETAIL.

“RETAIL IS DETAIL”
“Management by walking around”
orchrdgroup.com

10. THEY CELEBRATE
INDIVIDUALITY AND
NON-CONFORMITY
orchrdgroup.com

ORGANIZATIONS LIKE TO PUT PEOPLE IN BOXES
orchrdgroup.com

“It doesn’t make sense to hire
smart people and tell them what
to do; we hire smart people so
they can tell us, what to do”
orchrdgroup.com

WHO IS THE TOP PERFORMING SALES PERSON?
HARD WORKER
•  Always goes the extra
mile
•  Doesn’t give up easily
•  Self Motivated
•  Interested in feedback
and development

RELATIONSHIP
BUILDER
•  Focused on serving
customers
•  Great at building
relationships
•  Generous with their
time
•  Gets along with
everyone

PROBLEM
SOLVER
•  Detailed Oriented
•  Reliable
•  Ensures all
problems are
solved

THE LONE
WOLF
•  Independent
•  Self confident
•  Follows own
instincts
•  Ignores rules

CHALLENGER
•  Always has a different
view of world
•  Understands the
customers business
•  Assertive & loves to
debate
•  Tends to push people
out of their comfort
zones ORCHRDCEB© ORCHRD Group
orchrdgroup.com

WHO IS THE TOP PERFORMING SALES PERSON?
CEB
HARD WORKER
•  Always goes the extra
mile
•  Doesn’t give up easily
•  Self Motivated
•  Interested in feedback
and development

RELATIONSHIP
BUILDER
•  Focused on serving
customers
•  Great at building
relationships
•  Generous with their
time
•  Gets along with
everyone

PROBLEM
SOLVER
•  Detailed Oriented
•  Reliable
•  Ensures all
problems are
solved

THE LONE
WOLF
•  Independent
•  Self confident
•  Follows own
instincts
•  Ignores rules

CHALLENGER
•  Always has a different
view of world
•  Understands the
customers business
•  Assertive & loves to
debate
•  Tends to push people
out of their comfort
zones ORCHRD© ORCHRD Group
orchrdgroup.com

“Are we truly leveraging our people
to their true potential?”

orchrdgroup.com

In conclusion…
*Pepperdine University
“As competition in every industry intensifies,
being good (or even great) at executing your strategy will no longer be good enough.”
ORCHRD
THE SECRET TO SUCCESS & DELIGHTING CUSTOMERS
LIES WITHIN THE PEOPLE THAT ARE AT THE HEART OF
EVERY ORGANIZATION
© ORCHRD Group
orchrdgroup.com

“transformation
starts with a single
conversation”
1. Put purpose at the core of the business
2. Ensure alignment
3. Express what makes you unique
4. Hire for attitude not aptitude
5. Focus on the customer journey
6. Embrace failure
7. Challenge the status-quo
8. Think long term and innovate
9. Coach your people - Retail is detail.
10. Celebrate individuality
orchrdgroup.com

ORCHRD
PERFORMANCE
INDEX
Measure Alignment &
Capacity for Creating a High Performance
Organization
Identify starting point
Email for
FREE ACCESS
FUTURE-PROOF
Register on becomefutureproof.com
for
FREE EBOOK
ORCHRD
10 STEPS TO BUILDING A CONSCIOUS ORGANIZATION
ORCHRDGROUP.COM
© ORCHRD Group

“As much as technology is important,
success is not about technology –
It’s about people”. “The only way to produce
great products or experiences, is for your
people to feel appreciated and happy to
come in every day”. “The beauty of the
products is simply a reflection of the people
who created them.”
Charles Le Pierrès, Judith & Charles
orchrdgroup.com

DANIEL DUTESCO / DANIEL@ORCHRDGROUP.COM / +1.514.975.0477
WE ARE TRANSFORMING THE FUTURE OF WORK
by building Conscious Brands
STRATEGY / BRAND EXPERIENCE / ORGANIZATIONAL DESIGN
ORCHRD
orchrdgroup.com

Daniel Dutesco DrivingPerformanceThroughEmployeeEngagement-InfopresseRDVRetail2016

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