Continuing from the piece yesterday, What does it mean to be trustworthy? Why are these companies trusted? Part 1.
Transparency is intentionally baring your soul to the world by showing your true self to others.
Here’s the problem, though: When a company makes its operations transparent, it reveals them not only to its customers but also to its competitors. And since very few companies have cornered the market for raw materials or talent, making processes transparent means making the business easy to copy. That is why so many businesses stop short of revealing everything customers might like to know. And it’s why ideas like trustability, likeonomics, and face-to-face are needed to keep potential buyers from bolting.
Truth be told, customers won’t really trust you unless you’re transparent. But if you become transparent, your competitive advantage proves transient. Margins plummet, and you’re forced to innovate.
--Julie Kirby, Trust in the Age of Transparency, Harvard Business Review
During the 4-hour meeting, Hsieh talked about how Zappos’ traditional organizational structure is being replaced with Holacracy, a radical “self-governing” operating system where there are no job titles and no managers. The term Holacracy is derived from the Greek word holon, which means a whole that’s part of a greater whole. Instead of a top-down hierarchy, there’s a flatter “holarchy” that distributes power more evenly. The company will be made up of different circles—there will be around 400 circles at Zappos once the rollout is complete in December 2014—and employees can have any number of roles within those circles. This way, there’s no hiding under titles; radical transparency is the goal.
Hsieh told the crowd on that rainy November afternoon, “Darwin said that it’s not the fastest or strongest that survive. It’s the ones most adaptive to change.”
“We’re classically trained to think of ‘work’ in the traditional paradigm,” says John Bunch, who, along with Alexis Gonzales-Black, is leading the transition to Holacracy at Zappos. “One of the core principles is people taking personal accountability for their work. It’s not leaderless. There are certainly people who hold a bigger scope of purpose for the organization than others. What it does do is distribute leadership into each role. Everybody is expected to lead and be an entrepreneur in their own roles, and Holacracy empowers them to do so.”In its highest-functioning form, he says, the system is “politics-free, quickly evolving to define and operate the purpose of the organization, responding to market and real-world conditions in real time. It’s creating a structure in which people have flexibility to pursue what they’re passionate about.”--Aimee Groth, Zappos is going holacratic: no job titles, no managers, no hierarchy, Quartz
Virgin America was the first domestic airline to list its carbon footprint according to internationally accepted standards on The Climate Registry. Virgin America established its baseline footprint in its first full year of operations, as a first step in ensuring its operations were transparent to the traveling public. The airline is committed to finding new ways to reduce its footprint per guest, even as it experiences substantial growth both in traffic and fleet.--Virgin America Web site, Transparency
Being loyal means being true to yourself, first, and then you are true to others and offer them the right assistance that they need.
Sure, reward systems improve loyalty, but giving gifts is like giving someone a bribe to work with you - it's not being truly loyal.
How are these companies truly loyal to their customers? They all take their responsibility seriously. Being authentic, responsible and transparent makes them automatically loyal to their customers. I could tell countless stories about loyalty for these brands - and I'm sure you could too.
Engaged employees are the ones that believe in the brand philosophy and are committed to upholding it on behalf of the company. They have been compared to volunteers who give their time to a cause they are passionate about. They are passionate about the company mission and goals and are willing to put in the extra effort to make sure they are met. When they are faced with obstacles, the think out of the box and come up with creative solutions to overcome the challenges. They are what Lowenstein refers to as Employee Ambassadors.--Colin Shaw, New Generation of Business: Connecting Employee Loyalty with Customer Loyalty, LinkedIn
They are committed to the customers. Ambassadors understand the customers’ needs and does everything they can in their performance at the company to meet those needs, while delivering the highest values in both product and service.
--Colin Shaw, New Generation of Business: Connecting Employee Loyalty with Customer Loyalty, LinkedIn