Business Motivation: In The News

Thanks to the work of the Forum for People Performance Management and Measurement at Northwestern University, corporations are recognizing the financial benefit of aligning traditional internal management disciplines - organizational design, communications, incentive programs, and training - with external marketing activities such as advertising and promotion, channel relationships, and distribution.  As Simon Barrow of People in Business states, “Tomorrow’s CEOs will spend more time on their organization's reputation as an employer than with the investment community, and fund managers will worry if they don't.” 

If your organization hasn’t yet jumped on the PPMM bandwagon, the Forum has published a white paper on how organizations can incorporate PPMM principles as part of their overall corporate strategy.  The paper details the seven key elements of the PPMM model:

• Organization-customer interface.
• Customer loyalty and attitudes.
• Behavior of channel partners.
• Constituent attitude/behavior.
• People performance practices.
• Leadership/strategic objectives.
• Organizational culture.

To review a copy of the Forum white paper, click here.

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Marketing executives plan to increase their use of experiential marketing in 2008, according to a recent survey conducted by Jack Morton Worldwide.  Of those planning an increase (75% of respondents), half plan to spend 5%-10% more than in previous years, while 12% will increase spending by 11%-25%.  Just under one in ten say they will increase spending by more than 25%.

Here’s how the Experiential Marketing Forum describes experiential marketing:  “The term ‘experiential marketing’ refers to actual customer experiences with the brand/product/service that drive sales and increase brand image and awareness.  It’s the difference between telling people about features of a product or service and letting them experience the benefits for themselves. When done right, it’s the most powerful tool out there to win brand loyalty.”

Experiential marketing’s unique ability to reach, engage and make relevant connections with audiences has contributed to its growth.  The Jack Morton survey reinforced the need for brands to “do more and talk less.”  An overwhelming 98% of respondents agreed that “brand experiences that deliver on brand promises are central to building commitment and loyalty.”  They also agreed that demonstrating ROI on experiential marketing is a key area of interest and opportunity.  For more information on the survey, go to: www.jackmorton.com.

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Does the way people are treated at work make a difference to the performance of the organizations that employ them?  According to a new report from two UK institutions, the answer is “yes.”

A two-year effort by the Work Foundation and the Institute for Employment Studies tested a range of people performance management practices at nearly 3,000 companies, and found that businesses with strong employee engagement programs and skill training enjoyed higher profit margins and productivity than those without.  It also found that a 10% increase in the human resources budget results in an increase in gross profits per full-time employee of between $2,000 and $3,000.  The authors suggest companies focus on what they term the 4 A's:

• Access: Make sure you’re putting effort into attracting good quality candidates and have policies and practices to move the best people upward through the organization.
  
  
• Ability: Put plans in place to ensure people are effectively developed once employed, and that this development is focused on the needs of the individual and the business, taking a long-term approach.
  
  
• Attitudes: Align staff with the objectives of the organization.  One-to-one appraisals and reward strategies that give employees a share in the organization’s performance seem to be particularly important.
  
  
• Application: Encourage and reinforce autonomy among employees so they’re empowered to apply their skills and energy at work.  Look for ways to engage employees in determining how work is done and encourage their comments and ideas for improvement.

The report, “People and the Bottom Line,” is available at: www.employment-studies.co.uk/pdflibrary/448.pdf.

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North American businesses spend more than $46 billion dollars a year to motivate and reward employees and customers, according to the latest Incentive Federation survey. And the Incentive Marketing Association (IMA) offers a simple tool that will assist these organizations in maximizing their incentive dollar spend.

IMA’s Principles of Results-Based Incentive Program Design, the most comprehensive curriculum available on designing and implementing incentive programs and measuring their effectiveness, is now available in an expanded, online version. Originally a textbook, the online Principles has been expanded with new research, new case studies, and a series of executive white papers focusing on award selection and measurement. Interactive, detailed directories at the beginning of each chapter make accessing specific sections fast and easy.

The curriculum is also the foundation of IMA’s Certified Professional of Incentive Management program and exam and CPIM candidates will find the online self-check tests at the end of every Principles chapter especially helpful. You can find it on the IMA Web site at www.incentivemarketing.org.

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Most executives anticipate the volume of domestic and international incentive travel to increase or remain stable over the next two years, according to an Incentive Research Federation survey. “The Effect of World Affairs on Incentive Travel” was conducted in late 2007 and polled incentive travel providers, corporate incentive travel buyers and suppliers of lodging and transportation. In addition to gleaning information about the attitudes of incentive travel professionals, respondents were queried about their perceptions of their clients’ incentive travel concerns. The top concerns are:

• Security/safety
• Exchange rate of U.S. dollar
• Fear of terrorism
• Deterioration of U.S. reputation abroad
• Lack of trust in airline security

These concerns don’t appear to have had a negative effect on incentive travel planning, however, since over 75% of respondents think their volume of domestic incentive travel will increase or remain unchanged over the next two years, and two-thirds think their volume of international incentive travel will increase or remain unchanged in the same time period. More information on the study is available from the IRF, at www.TheIRF.org.

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A study released by recruitment firm Bernard Hodes Group (www.hodes.com) says the top two reasons employees search out new employment are: 1) limited career path (51%), and 2) compensation that’s not in line with skill sets (50%).  According to the Hodes study, workers will seek employers who have a cohesive workplace culture and who offer benefit packages that include options such as work/life balance and flexible scheduling options.

What to do about it?  “While we’re still experiencing low unemployment rates and a shortage of top talent, it’s imperative that companies focus on quality of hires and finding long term talent, as opposed to just filling open seats,” says Alan V. Schwartz, Hodes Group president and CEO.  “Fifty-three percent of those responding to our survey are passive job seekers, so engaging these employees to determine their needs can help shape a company’s retention efforts and keep valuable employees with the company.”

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In an industry facing tremendous pressure, how do real estate agents market themselves to gain an edge?  The results of a recent survey by the Promotional Products Association International (PPAI) of attendees at the most recent National Association of Realtors Expo in Las Vegas suggest that nine out of ten realtors use promotional products as part of their marketing efforts.

As many as 95% of real estate agents say that promotional products are included in their agency budgets right from the beginning and purchased as needed.  And 70% of the survey participants rate promotional products as “effective” or “extremely effective.”

The top five purposes for the use of promotional products by real estate agents include:

• To increase name recognition (62%)
• To get new customers (57%)
• To generate goodwill (53%)
• To get referrals (52%)
• To increase sales (47%)

The overall result: “When you add the high-touch element of promotional products to the marketing mix,” says Stan Breckenridge, PPAI chairman and vice president of marketing for Moderne Glass Inc., “it is possible to reach each customer on an individual basis.  And that personal touch is extremely important when you’re helping people make the most important decision of lives.”

For more details on the study, contact Anne Lardner at 972-258-3031 or annel@ppai.org.

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