Think INSIDE The Box - Invest in Your Employees, Sell More Stuff.

Many companies spend an awful lot of time thinking "outside the box," and spend a lot of money doing it. In this case, outside the box means outside your business. In other words spending gobs of money in a quest to reach prospects and turn them into new customers. 

Obviously there is nothing inherently wrong with doing everything you can to sustain business and get more.

But with sales down, and in an effort to move the needle, many marketing budgets are being spread too thin with money being spent on "bandwagon" (mostly web) tactics (often without clear strategy, or clear metrics for ROI).

Taking the attitude, "Everybody's doing it, so let's try it and see what happens," is a bad tactic (it's certainly not a strategy). Especially in this economy when quantified return on investment is much more critical.

It's not that experimenting on the Internet is a bad thing. We're as dazzled by social media and other Internet opportunities as you are and consider them vital in the future of marketing.

It's just that, right now in a down economy, maybe there is a better way to use that "experimental" spend to get more measurable results by thinking "inside the box"... inside your company.

What if you spent it on your employees?

A recent article in Business Week shows how, "The link between a company's employee engagement and its bottom line is real: the more engaged the workers, the higher the sales and profit."

It presents case studies which describe how investing in employees to create "employee optimism" - an enthusiastic culture of belief and understanding of the mission and vision of your company - can lead to big payoffs.

One of the companies showcased is Campbell Soup. When their stock was in the toilet, employee pessimism was pervasive and takeover rumors were circulating everywhere, new Chief Executive Douglas R. Conant realized that winning in the marketplace meant first winning in the workplace. Read the article to see how it did it. Now Campbell employees are full of optimism and the company's earnings growth is far ahead of its competitors. Best Buy is another company discussed and there are others.

As the article nutshells it, "Put simply, workplace optimism, if nurtured properly, can be a competitive advantage:"

It's worth reading. It's worth thinking about.

One more thing. If you want to really be on the cutting edge,  you can indeed use social media to engage the troops. Read how here, and here, and here.

For more info on revolutionary workplace thinking:

Best buy changes everything! "Smashing The Clock."

Employees: The Direct Route To Customers' Hearts

Tata - How to Build a Culture of Innovation

How P&G Finds and Keeps a Prized Workforce

Changing Your Corporate Culture

Employee Engagement: What It Is and Why You Need It

Employee Engagement - It Takes Two to Tango

2008 Employee Engagement Report - Study

http://www.flickr.com/photos/fncll/ / CC BY 2.0

Comments

[Russ]

Thanks to all for the thoughtful replies. Sometimes it definitely pays to look in your own backyard for buried treasure you might have overlooked.

[Rick]

Russ -- the concept of employee empowerment and satisfaction leading to a more successful company is not new news. Unfortunately it is something that is all too often forgotten and ignored. Your post is timely in that in today's market where companies are trying to improve their bottom line they are looking to cut costs and reduce head count. This is not good for the internal culture of a company. The post is a great reminder for everyone. Also, it should be noted that with Social Media and other forms of communication available to organizations, it should be easier to empower employees and improve workplace satisfaction.

This needs to be given equal weight and importance with consumer communication and external marketing efforts.

Thanks for the realization and discussion.

[Greg]

Great post, Russ. I wish more companies would invest in their employees. Companies show no loyalty to their people yet somehow expect their people to be loyal to the company and it's goals (increased sales).

[freshmenz]

Great post Russ. I was going to say something extremely smart but I realized that Shannon Paul already said something smarter here (...a few weeks ago…) http://veryofficialblog.com/2009/08/05/is-social-media-a-strategy-or-a-tactic/

I believe that Shannon supports what you claim when you specifically refer to how (mostly web) tactics should not be a “bandwagon thing.” Alternatively, as Shannon puts it, “you’re only fooling yourself.” Here are two very clear reasons from Shannons post...

The intent of social media should always do two things:

1. bring down the barriers to communication inside and outside the organization; and
2. encourage participation in a dialogue with stakeholders

Smart. Simple. Well-stated. Important - worth saying twice.

Recently, I have had a few meetings with CMO's of a large global law firms to discuss social media tactics and strategy development. I shared some specific information (found with some basic research) about how one firm had some employee’s representing the brand like misbehaving middle schoolers…. Not only did this particular CMO blush but I also had 100% of his attention for over an hour and a half. Yet, it was made clear in the beginning that I was only allotted an hour.

In my post from April of this year (http://freshmenz.wordpress.com/2009/04/22/547/) I do explain how even middle school soccer players can act respectfully... What if your employees saying:

I work for law firm X and it is (expletive removed) but it pays okay, I am a legal (expletive removed).

Hmmm... Well, not every social situation is going to be negative… but as Shannon says, putting the two things (mentioned above) in alignment with business goals is far more important than just choosing to get involved with discharging meaningless social media tactics.

My free advice to this legal CMO… let your employees know you are starting to listen to all social media mentions about their brand, including internal and external communications. Break down these barriers to communication. Heck, I have two young daughters…. is not that the most primitive parenting tactic there is – “I have eyes in the back of my head.” You had better behave! No, I really mean, please know that I do listen and you can talk with me.