Category Archives: Airlines

Internal Marketing may be the key to post recession survival, but its tougher for ex-public sector organisations.

First it was the Post Office, then British Airways and now it appears that British Gas front-line employees are in revolt.  When your customer-facing staff are slagging of the organisation and/or it’s management you are well and truly buggered, but when is the penny going to drop here?  This isn’t about the evil hand of capitalism trying to squeeze the life out of dwindling customer base or white-knight customer service operatives standing ground on behalf of their customers.  Its  about one thing, pure and simple.  The failure of management to get employees behind the brand.  Brand Building is the fundamental of business today and it all starts with internal marketing – that’s where all of these organisations are failing.

I don’t want to make light of this.  For these organisations, each of which have among the worst industrial relations records in Britain, it’s a tough challenge.  Why these three in particular?  Well, there’s a clear common denominator here – they are all old public companies.  People who joined public sector organisations in the past and probably to some extent today, are motivated differently from those in the commercial sector.  They rarely think so, but it’s true however you cut it.  Order, rules that protect them from having to do absolutely anything that isn’t in their buttoned-down contracts of employment, endless holiday entitlement and decent money that turns up every month, regardless of how hard they work and how much they care – this is the world of the public sector employee.  Unless employees have a sense of belonging, commitment and shared responsibility, these organisations will never transform themselves into the lean commercial machines they simply have to be to survive, yet the employees who are at the centre of these rows are those with contracts that date from the pre-privatisation era and the self-interest that goes with them.

The reality is that while the world has moved on these organisations struggle to keep pace with a millstone around their necks.  That millstone being employees who are determined to stay right where they are.  It’s no coincidence that this is exactly what is happening in the former Communist countries.  Twenty years on from the Velvet Revolution it’s still a challenge to motivate Czech workers who spent fifty years just going through the motions while collecting the same money every month and commentators are now coming to the conclusion that it will take a few more generations before Czechs are attuned to commercial reality.

Once an organisation knows the scope of its resources, has a strategy and has defined their brand and its “promise”, the task is to get every stakeholder (and this isn’t just employees) fully committed to playing their part in the delivery of that promise.  That means telling them what that promise is, explaining why it has to be that way and helping every one of them understand what they can uniquely do on a day-by-day basis to help ensure the promise is delivered and, just as importantly, helping them fill the gaps in their skills base so that they can do it even better.  If you get this right there’s no argument and it will happen.  In the rare cases where a minority feel that they have some right to override the strategy that everyone else has signed up to, they’ll be neutralised by the commitment of the majority.  Apart from anything else, that’s one of the principles of change management.

It’s not surprising that businesses are only now waking up to what internal marketing is really about.  For years a remit of HR managers, internal marketing has only recently been handed to the people equipped to do the job – marketers – and we still have a lot of catching up to do.  One group who need to catch up most are marketing services organisations but this awakening could be the salvation of many, who, as we all know, are desperate for new ways to bond with clients and new sources of revenue.

A modern internal marketing campaign demands high levels of skills in all areas of communication.  I devised an internal marketing initiative for a retailer that involved teams of employees from each store competing in a national product and process knowledge quiz with regional heats, national finals and a grand finale in the capital.  Among other things, it involved event production, logistics, building a supporting web site and streaming videos of the contests, so we needed multimedia production skills and it also required that we bussed supporters to each event.  That’s what modern internal marketing looks like and if you want to get your employees on-side you need to start thinking about initiatives like this.

It may come as a surprise to the folks at the Post Office, BA and British Gas, but there are workforces in Britain and elsewhere who are taking wage cuts, accepting shorter working weeks, introducing new work practices and taking on extra responsibility because of their commitment to the brand community.  Internal marketing has always been the key to success.  In the new economy its the key to survival.

Getting public sector efficiency off the ground.

soutwest-landingI’ve been in the UK recently, among other things dabbling in the Public Sector and with never before seen pressure on public spending it should be a particularly interesting time to be hanging around the black hole into which our hard-earned is pitched, but is it – interesting that is?

A recruiter friend of mine told me this week that his firm is busier than ever right now handling briefs from the public sector, which he assures me is falling over itself to adopt a private sector mindset.  Discounting for a moment the fact that we have heard this before and putting aside the obvious need for the struggling recruitment sector to give a positive spin on recruitment opportunities, as a UK taxpayer, I find this news encouraging, but if the public sector is to undergo the kind of culture change it must, there is a long way to go.  The dilemma is, where to start.

I know that there are success stories, but there’s no doubt about it, the public sector generally really does need to get down to business.  Among other things it seems they have been slow to realise that the difference between success and failure in any sector is efficiency, but even when the penny drops, there’s confusion in the ranks between efficiency and bureaucracy or systematisation which, as any private sector chappy knows, are different things entirely.

Without fundamental efficiency, little else counts, but in order to measure efficiency, you have to start with a clearly-defined objective to aim “efficiently” for.  And in my experience its right here, at the very first step that things usually go wrong.

Despite the progress that has already been made in some areas, the public sector’s greatest impediment to what we private sector jocks would consider best practice, is its own culture.  Like all big organisations, the sector discovered early on that the easiest way to make things happen consistently on a large scale was to bureaucratise and, in a short-term sort of way, it worked for a while, but as commercial organisations worldwide realised pretty quickly, long term, bureaucracy is a recipe for disaster.

The Communists in Central and Eastern Europe, kept things running for a while by giving people in every area of life step-by-step instructions on the minutiae of their life (A bit like Labour have done in the UK, come to think of it), leaving nothing to chance and preventing anybody from using initiative.  Its an idea that might fly provided the dictators are smart enough to predict every possible eventuality and legislate for it, but the reality is, nobody’s that smart and we couldn’t possible hope to envisage every eventuality, so ultimately the system breaks down at the first sign of something unexpected.

However, even that doesn’t necessarily spell curtains, provided the people at the sharp-end have the initiative to respond to the situation in a way consistent with the overall objective.  But there’s the rub.  Having created a community where you could leave your brain at home when you leave for work each morning and not realise until you came home and had to turn the video on, it stands to reason that the people who make it their home and settle in for the long term are those who aren’t really that good at the initiative thing.  I could expand on this thought, but it would take for ages and I think we are probably on the same page already.

I’m not suggesting that there’s no place in a modern business for processes.  Of course we need them, but we equally can’t afford to be totally reliant upon them.  To achieve efficiency these days requires that operators at every level of the organisation are smart, have the initiative and are empowered to apply what they know, equally to both predictable and unforeseen situations.  Migrating to this point from a bureaucracy doesn’t happen over night for any organisation, but the (some might argue unnecessary) scale of most public sector organisations makes it a daunting task for them.

If you get the opportunity, as I have, to talk to the people who are supposed to be making strategy and setting objectives – our MPs and senior civil servants – you would find that intentions are as admirable and awareness of issues is as high as you will find in the best-run commercial organisations. The initiatives that they launch however, because of the weakness of the bureaucratic process, become ineffective and inefficient at the point of delivery.  That’s why we get situations such as that which I heard of where a guy responsible for the web site intended to drive private sector involvement in a government scheme was adamant that it was inappropriate to have a proposition on the home page because it ” … commercialised the subject …” and in his world (wherever that was) social isues should not be sullied by the “C” word.

I have also recently come across a public sector new business leader and a sales team actively chasing sign-up targtes for a programme that there was no resource to deliver and another where targets for a three-man “sales” team required no more than one sign-up between them every two days when more than that were already walking in the door every day!  I have also just seen a business plan that by its own analysis was fundamentally un-executable. Room for efficiency improvement I think!

The problem is everyone is working to different objectives.  For example, the web guy sees the role of his organisation as being to enrich people’s lives rather than to drive business growth.  The new business guys see their task as being to get as many meetings with potential clients as possible and the sales guys are chasing a sign-up target with no thought to resourcing or what happens when they achieve it.  The bottom line is that programmes fail on every level, leaving disillusioned stakeholders in their wake and wasting sheds-loads of taxpayers cash.

There are two things missing from this picture.  One is a Brand Model that clearly defines the organisation’s philosophy, character and what they are there to do, neatly summed up in what I call the Brand Promise.  The second is an internal marketing programme designed to ensure that everyone in the organisation understands and is on-board with the objectives, equipped and fully committed to playing their part in the delivery of the Brand Promise.

One of the founding principles of Full Effect Marketing is that an organisation will only maximise ROI when a proportion of their marketing investment is diverted from making a Brand Promise towards the task of delivering it.  That’s an internal marketing strategy and I have created more of them than I care to remember.  Its not particularly difficult and, because my approach involves key employees in the process, just going through the strategy development starts the paradigm shift.

Organisations that do this well are people like Southwest Airlines, who prove that its not just a marketer’s latest plaything by succeeding dramatically on just about every measurable commercial parameter.  Happily, we now have consensus that its the only way to go, so, as a UK taxpayer I’d like to see our public sector jump on this particular band-waggon post haste.

If anybody from the public sector is listening (yes, I know, but I’m an optimist!), I’d be happy to help out with this particular cause.

The measure of a marketer.

I have absolutely no doubt of two things.  Firstly that “marketing” means leveraging the resources of an organisation to satisfy the needs of end users and, secondly, that as marketers it is our fundamental responsibility to go places and do things that nobody had gone to or done before. These are the two basic truths upon which I base my work.  I’m happy to debate this with you, but I will win! However, I have come across a few illustrations recently of  woolly, cop-out thinking by marketers around the world that makes me fear for our future.

Firstly I became involved a few weeks ago in a discussion on LinkedIn, that might become its biggest yet, which started with a member asking if anybody was interested in setting up a “consultants’ group”.  The responses that followed were horrendous and I quickly came to the realisation that the relationships between a lot of consultants and their clients must be a bit like the blind leading the blind.  I was simply staggered by the narrow thinking of many of those consultants who contributed.

Then came the response on SimpliFlying.com to a report on the BBC interview last week with RyanAir’s Michael O’Leary.  SimpiFlying is a knowledgeable and highly respected blog that focuses on marketing within the airline sector, so you would expect that the majority visitors would be airline marketers.  That being the case, many of the contributions served only to underline O’Leary’s premise that airline managers are a bunch of sad, uninspired old gits (My words, his sentiment).  I’ve never been a particular supporter of O’Leary, but that might change after this interview.  I have, however, always admired his business and brand development nous, and I’m delighted to hear that his inspiration was Southwest Airlines in the US who are a case study that I use in many of my seminars and workshops.  O’Learly clearly understands branding far better than most of the contributors to this discussion.

The final nail in the marketer’s coffin was a recent campaign by Naked in Australia, an agency that I have always thought was quite OK, for their mens’ fashion client Witchery.  Appropriately, this was drawn to my attention by Adam Broitman on iMedia.com under the heading “Interactive’s Most Offensive Campaigns”, but the offense I took wasn’t that it was rude or in bad taste, but the fact that the production of such utter dross was sure to have incurred some level of carbon footprint.  Naked seem to have totally forgotten that for a viral campaign to work at all the material that’s seeded has to be interesting enough for someone to care enough to forward it.  I am used to clients thinking that a viral campaign is a solution in itself and forgetting, like any other medium, that its only as good as the content, but for any marketing specialist, let alone an agency of this standing to completely miss the point like this is unforgivable.  I fought to stay awake through the movie, only because I wanted to see why it was supposed to be so offensive.

As I said in my opening, we marketers are supposed to be taking our organisations or those of our clients, to places and getting them to do things that they would never dream of.  That’s our primary responsibility and when times are tough, as they are now and we all really need to be brave, its our job to save them from their natural tendency to dig a pit and wait for the flak to pass.  Our clients and colleagues should be beating a path to our door just to recharge at our power-point of creativity, innovation and entrepreurialism.  If they aren’t its our fault not theirs.  It means we are just too boring and that’s something a marketer should never be.

Thanks to Michael O’Leary for calling time on the old farts of aviation and talking up his ambition to pay us for travelling with him rather than the other way around and shame on those like the people who, whether RyanAir is their cup of tea or not as a carrier, aren’t smart enough marketers to recognise that this is how you build a brand (and the world’s biggest carrier).