Herman Manson’s Blog

Entries from November 2008

Lead with care

November 25, 2008 · Leave a Comment

markp22Can an elaborate employment branding strategy be successful if managers suck? Probably not, which is why leadership is closely linked to successful employment branding and employee relationships. The implications for any business are potentially far-reaching.

Talent, says HR Future Publisher Alan Hosking, resides in the top 20% of a company’s employees who, by their skills, knowledge, experience and attitude, generate 80% of the company’s revenue.

“They want to work in companies that enjoy good standing in the community, in the marketplace and in the eyes of its employees, so that they can talk about their employer with pride,” says Hosking. “Consequently, they are not attracted to companies which do not have a strong employer brand.”

While South African business are slowly waking up and implementing employment branding strategies, these are still centred on how managers view the business (and their own management skills) rather than how current and future employees view it. The first step towards effective employee branding seems to be assessing the people management skills of management.

Hosking agrees, saying there’s no way incompetent management can create a reputable employer brand. “Essentially, while management creates the strategy to strengthen the employer brand, its success is in the eye of the employee. The employer brand has to be seen to be good by the employees, not the employers,” says Hosking. “Unfortunately, incompetent employers believe their own lies. The employees have a better chance of seeing the true state of things.”

Sadly, the human resources function in many companies today seems to have very little to do with building people up and a lot to do with controlling them. Etsko Schuitema, author of Leadership – The Care and Growth Model, suggests the mechanical metaphors we use to describe business (’If all parts of the system work, then the machine makes money’) make us overlook the fact that people are more than just parts of the system.

“We can nurse a mechanistic view of an organisation as much as we like,” writes Schuitema. “The simple fact of the matter is that if the people are not committed to the business, and therefore willing to go the extra mile, we do not have a sustainable enterprise.”

Some companies are getting it right. Hosking says Investec has such a good employer brand that they don’t have to advertise positions – they have quality candidates approaching them for work and they can afford to pick the best. Mark Gray, of marketing and human resources firm Graylink, also points to Outsurance and RMB as positive examples. “They’ve successfully integrated their corporate and employer branding efforts, linking their people directly to the success of their businesses and saying to the market ‘we respect those that work for us’,” says Gray.

What are people looking for in a company when they seek a new employer? Gray believes needs change from audience to audience. Often age (and generation) has a large part to play. “When you’re just out of college looking for your first job, things like travel and experience are top of your agenda,” says Gray. “For those with families and a large mortgage, security might be of greater importance. The trick for any employer is to map what attractive things (value propositions) they can authentically offer with those things the target audience actually values/ wants/ needs.”

Leadership, or the lack thereof, helps define every aspect of a business. Schuitema argues for the importance of leadership in empowering employees through genuine care (about them, not just the stock price) and the creation of growth opportunities and empowerment (less control, not more).

Companies that understand that employees are not simply a cost but a credit to the business are better positioned to release the full value their people bring. This ultimately is what makes or break an employment brand and a business.

– Herman Manson is the editor of Mark and marklives.com This story first ran in Mark magazine Volume 1 Issue 1.

EXTRA:
For more information on how other companies are finding a path to meaning, purpose and self-motivation, contact Johan of Facilitating Hope at http://www.facilitatinghope.co.za

Categories: Society
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Seeing is believing?

November 11, 2008 · 1 Comment

Online product videos are influencing consumer behaviour, but local online retailers won’t bite just yet, never mind the popularity of video services like YouTube.

It’s no secret that consumers use the Internet to do product research. Before making important product-buying decisions, more and more people are going online to research products, prices – and alternatives. Even though word-of-mouth and recommendations from friends remain the most important methods for deciding on future purchases, even these are moving online with the help of e-mail or services like Twitter and social networks like Facebook.

Recent research suggests that even offline sales are being influenced by online research. Accenture last year released a survey showing that while a majority of respondents in the US still preferred to shop in physical stores, 69% researched product features online and 68% used the Net to compare prices.

Instead of replacing bricks-and-mortar stores, the Internet is an extension of consumers’ in-store shopping experience. “Retailers and manufacturers must understand this consumer behaviour trend in order to reach shoppers, educate them, serve them and earn their loyalty,” the Accenture research noted.

It has become critical for businesses to pull out all the stops online on their own Web sites and on the commerce sites that sell their products. With access to broadband increasing rapidly, video has become an important method of highlighting product features. This isn’t only true of International audiences – think how popular YouTube is among South African Internet users.

So, how exactly does an online video presentation influence customer behaviour? “Firstly, we know that shoppers choose to spend an average of almost three minutes viewing each product tour,” says Rick Martin, CEO of SellPoint, a US-based provider of on-demand video product tours. “Secondly, third-party analytics have verified that shoppers who choose to watch video product tours are 12% to 30% more likely to complete a purchase of the product. And, lastly, we believe that buyers who watch product tours are more informed and, therefore, less likely to return online purchases.” SellPoint claims use of online video resulted in an up to 35% increase in the conversion rate of e-commerce sales for some of its clients.

As part of its video offering, SellPoint also creates a one-stop space that includes printable material such as user guides and owner’s manuals. Over half of the shoppers who view the video tours choose to also view the printable collateral content, according to Martin. “Can you imagine the response a shopper might receive walking into a typical retail store and asking to read the owner’s manual for a complex product?” Martin asks. “Product tours make it easy for shoppers to find and navigate through the information that’s important to them.”

Jacques Nel, MD of digital marketing agency Stonewall+, agrees that online video is great marketing format, especially when you need to explain complex features/functions of products. “It comes in really handy where products are rather technical in nature, and a one-minute video can inform the viewer in far richer format, adding detailed moving video and audio,” says Nel.

Video also allows you to feature a product in a completely different way. Nel points to the incredible amount of product and brand exposure that Blendtec received through its ‘Will it Blend?’ online video campaign. Blendtec created a viral marketing campaign and a Web site called WillItBlend.com that featured video takes of Blendtec founder Tom Dickson blending anything from golf balls, marbles and Thanksgiving dinner to mobile phones using his blenders. So popular is the site that it even has its own entry into Wikipedia, and the phrase “Will it blend?” has become an Internet meme, not to mention putting a smallish company on the map overnight.

It’s not all plain sailing, though. Last year MTN caused some controversy when it posted videos on YouTube that some online users felt was “recycled and uncredited” because it was based on original material posted by other YouTube users.

For the most part, South Africa’s online retailers do not seem to have adopted video to drive product sales. It seems it’s up to distributors to take their sales strategy into their own hands.

Yaron Assabi, CEO of Digital Solutions Group (which runs digitalmall.com), highlights poor bandwidth availability and quality as the reason video doesn’t feature on his site. “What is promised to be broadband is very narrowband,” says Assabi. Keeping an eye on the near future, he notes: “We are all waiting for Seacom to launch next year when bandwidth availability and pricing will hopefully become more reasonable.”

YouTube, the popular video-sharing site, recently announced it will start experimenting with new advertising formats to grow revenue. This should boost awareness among marketers even further.

The global credit crunch and the resultant economic slowdown also means consumers are spending even more time researching before making a purchase. Micro product sites that contain lots of printable information such as product manuals as well as video seem an obvious way of helping customer decision-making. Making these accessible from both the corporate and e-commerce sites as SellPoint does means you go where the consumer is.

It sounds like a pretty smart move to me.

LINKS:
SellPoint http://www.sellpoint.net
Blendtec http://www.blendtec.com
WillItBlend.com http://www.willitblend.com
DigitalMall http://www.digitalmall.com

See the original story as printed on ITWeb here.

Categories: Technology
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Mark launches!

November 3, 2008 · Leave a Comment

The first issue of Mark, the business magazine about people, has just been released at http://mark.marklives.com. Its launch issue explores the many facets of business identity, including the impact the emerging market is having on defining business identity, what influences people’s perception of your CI and issues around employee branding.

The new title is launched on the back of my popular marketing blog MarkLives.com.

Categories: Media
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