The Art of Targeted Listening
Unlocking Success
by Carina Christian-Kradischnig
The Costly Negligence of Ignoring Voices
Organizations monitor the success of change processes or transformation projects by making a variety of reports and by achieving key performance indicators. Listening to feedback – both from employees and customers – is often overlooked in this process. After all, the art of listening is one of the most important pillars in successful transformation projects.
Why it "pays" to listen
McDonald's billion-dollar mistake with its "Made for You" initiative shows how serious it can be to make decisions based solely on an analysis of performance numbers without involving the people affected. It shows why listening is essential, especially in change projects.
To respond to megatrends such as customization, McDonald's overhauled the company's entire food-preparation system in 1998. Convinced that customers wanted more customized orders, a concept called "Made for You" was introduced. The concept's goal: to increase product quality and order efficiency by preparing each burger immediately after it is ordered. "Made for You" failed because McDonald's management failed to recognize how the change in preparation would affect what had been the most important selling point for McDonald's customers: keeping speed high and costs low. As a result, "Made for You" was a billion-dollar mistake that actually hurt the company's stock price. If McDonald's executives had taken the time to gather customer feedback and/or test the prototype before launching the concept, they probably would have realized that the venture was a bad investment.
Does this mean that companies should seek extensive feedback before starting every change project and making every decision? Different phases of a change process require different intensities and different methods and tools of obtaining feedback. It all comes down to the right dose.
Differentiated forms of "listening" along the ICG transformation process
The ICG structures transformation projects into five process phases (Initiate, Awareness & Directing, Prototyping, Scaling, Anchoring) and two cross-cutting themes (Communicating and Leading). Depending on the existing knowledge about customers, employees and/or competitors, the use of different tools and methods can be more or less intensive. The ICG Listening Journey (see graphic below) shows how we gather feedback along the transformation journey with various methods of listening. Depending on the existing knowledge about customers, employees, and/or competitors, the use and intensity of the different tools and methods varies.
1. Initiate
Where does the shoe pinch?
In Phase 1 of the transformation process, it is important clearly state why such a process is needed in the first place. Internal and external feedback does not only provide facts, but also creates emotional concern. Listening means, above all, identifying which aspects are relevant from the customer and/or employee perspective and how they are rated. Customer and employee satisfaction surveys, provide a reliable basis for the transformation process.
Where are we going?
Once the problem has been identified, the question in Phase 2 is what direction the change should take. This can be done by involving top management, managers, employees, and process partners and listening to their needs and ideas in feedback sessions. Stakeholder dialogues and conferences, co-creation workshops, or future workshops are useful settings for this. In addition, you can use statistical methods such as segmentation and associated market potential calculations to identify relevant groups that should be targeted during the transformation process.
2. Awareness and direction
3. Prototyping
How are initial changes received?
Once the goal is clear, it's time to get going. Whether you are addressing product innovation, new organizational concepts, or cultural change, try new behaviors, ideas, products, and/or patterns.
In this phase, we recommend that you engage intensively with the individuals who will be undergoing the transformation by applying both quantitative and qualitative listening methods, such as concept testing, in-depth interviews, or even diary analysis. Positive feedback helps you and your organization to celebrate initial successes in the transformation process. Critical feedback helps you learn and adjust as needed.
In the McDonald's example, a concept store, a test store, or a simple prototype might have been enough to avoid the bad investment or to develop the concept further.
Optimization through continuous feedback
In the scaling phase, listening takes on a different meaning. This phase is where new concepts, behaviors, and patterns become embedded. The organization is in the "learning" phase. Turn inward. Listen to the team/implementers and provide them with methods and tools so that what is "new" becomes routine. The focus is now directed toward team building by analyzing "lessons learned" or conducting a "team retrospective".
4. Scaling
5. Anchoring
What impact are we having?
The final phase emphasizes embedding the changes. "Listening" here is primarily a "reality check”: Is the transformation process already bearing fruit? In the private sector, this will often be demonstrated by customers who notice a (positive) change in employee behavior. In the public sector, it is conceivable that services and offerings will be more effectively utilized by the respective target group.
In order to be able to "measure" the anchoring of the transformation, we recommend e.g. image analyses.
Speech is silver, listening is gold
When leaders and change managers actively listen, they can begin to understand the different perspectives held by the individuals and teams affected by change initiatives. Communication and change activities can then be designed with these perspectives in mind to help people feel that they matter, that they are being listened to and not just talked about, and that they are an important part of the change process. However, the continuous solicitation of feedback helps to reduce mistakes, shorten learning loops, and increase the organization's confidence, providing evidence that it that it is on the right track.
Two examples show how successful the often-underestimated skill of listening can be:
Create an external reference point
Several years ago, before megatrends such as individualization and customization had begun, the insurance company Sun Life Financial was already convinced that a good UX (user experience) is a key determinant of a company's success.
For this reason, Sun Life Financial began asking its target audiences what they wanted even before a change process began, and before a new product had been introduced or developed. The feedback gathered ranged from input for a new product design, to testing of existing prototypes, and on to post-sale feedback and input for ongoing research. The result was an impetus for a comprehensive change process that was fed with key results gathered through the repeated collection of customer feedback.
The result of the transformation: Sun Life Finance has been the market leader in life insurance for over 50 years, has a market capitalization of €23.91 billion, and is one of the most valuable companies in the world. In addition, brand awareness has increased by 5% in recent years. Sun Life customer satisfaction is one of the highest in the industry at 97%.
Make your team the protagonist of its own transformation
Feedback not only helps employees cope with change; it can also drive the design of a change program.
When e-mail marketing platform SendGrid went through a leadership transition a few years ago, the company launched an employee survey just before the new CEO took office. The new leader listened to what employees wanted to focus on, added his own experiences, and then shared his priorities for the change effort.
The feedback not only made the change program successful; it drove the change. It also ensured rapid and sustained buy-in for the new CEO.
Our conclusion
Active listening by leaders and change managers not only makes change processes smoother, it also makes them more accurate. This is true in profit-oriented companies as well as in the public sector and NGOs. The latter, in particular, can gain information that would otherwise remain hidden due to a lack of market corrections. Regardless of the sector, listening means:
Appreciation
More effective action
Better communication
More efficient learning
More self-confidence