red goldfish - motivating sales and loyalty through shared passion and purpose

RED GOLDFISH Motivating Sales and Loyalty Through Shared Passion and Purpose

B y : S t a n P h e l p s a n d G r a e m e N e w e l l P u r p l e G o l d fi s h . c o m

Red Goldfish is the fifth color in the Goldfish Series of Books

Purple Goldfish was about little things that improve customer experience and drive word of mouth

2012

2014

2013

2016

Green Goldfish was about little things that improve employee engagement and reinforce culture

Golden Goldfish was about your vital few… little things for your top 20% of customers and employees

Blue Goldfish was about technology, data, and analytics… little things to drive profits and prophets

RED GOLDFISH is about motivating sales and loyalty through shared passion and …

Why? Because business is evolving

Version 1.0 Shareholders BUSINESS is solely about maximizing shareholder value & profits

The initial focus of a company was on WHAT:

“There is only one purpose of business and that is to only engage in activities designed to increase profits.”

– Milton Friedman

1.0 Shareholders First

On the face of it, shareholder value is the dumbest idea in the world… Shareholder value is a result, not a strategy... Your main constituencies are your employees, your customers and your products "

- Jack Welch, Former CEO of GE

"

Version 2.0 Customers BUSINESS is about getting and keeping customers

The next version saw profit as a result, a result of focusing on WHO:

2.0 Customers First

“Not so long ago companies assumed the purpose of a business is to make money. But that has proved as vacuous as saying the purpose of life is to

eat...The purpose of a business is to create and keep a customer.” – Ted Levitt

There is only one boss. The customer. And he can fire everybody in the company from the chairman on down, simply by spending his money somewhere else.”

- Sam Walton, Founder of Walmart

“

Version 3.0 Employees BUSINESS starts with understanding how value is created. The value is created by employees.

The next version focused on HOW :

3.0 Employees First

“You can’t have happy enthused customers without happy engaged employees.” – Ted Coine

“I came to see in my time at IBM that ‘culture’ isn’t just one aspect of the game – it is the game.”

- Lou Gerstner, Former CEO of IBM

Employees First, Customers Second is a management approach. It is a philosophy, a set of ideas, a way of looking at strategy and competitive advantage.”

- Vineet Nayar, Former CEO of HCL Technologies

“

Version 4.0 Purpose BUSINESS should start with understanding why it exists

The last and most enlightened version focuses on WHY :

4.0 Purpose First

“People don’t buy what you do, they buy WHY you do it.” – Simon Sinek

Exceptional firms have always been good at aligning their purpose with their execution, and as a result have enjoyed category leadership in sales and profits.”

- John Kotter and James Heskett

“

Purpose is important to employees According to PriceWaterhouseCoopers:

86%6 out of 7 employees would consider leaving an employer whose values no

longer met their expectations

Purpose is important to customers According to Brand Fuel:

86%All things being equal, 6 out of 7 customers will

choose to do business with companies whose values mesh with their own

Purpose will continue to become more and more important in business

In 2020, 51% of the workforce will be millennials

A millennial has a different perspective about business They are shedding the old binary view of business.

They no longer see businesses as either…

F R or

The line between for profit and non profit is blurring

Business is evolving

Smart companies will focus on both profit and purpose. Going forward, companies will only be seen as…

FOR PURPOSE

NOT FOR PURPOSE

or

“Consumers want a better world, not just better widgets.“ – Simon Mainwaring

The New Bullseye

Being Good is Good Business

Raj Sisodia looked at 28 companies in his book Firms of Endearment. The 18 publicly traded companies out of the 28 outperformed the S&P 500 index by a factor of 10.5 over the years 1996-2011. Source: https://hbr.org/2013/04/companies-that-practice-conscious-capitalism-perform

Being Good is Good Business

Purposeful, value-driven companies outperform their counterparts by a factor of 12.

Source: Book - Corporate Culture & Performance, by John Kotter and James Heskett

RED GOLDFISH are the little things your do to bring your purpose to life

Why the color RED and Why a GOLDFISH?

FIRST, WHY A GOLDFISH?

The Goldfish represents something small. It was inspired Kimpton, a chain of boutique hotels, Kimpton embodies the concept of doing the little something extra. Stay at any of the Kimpton properties and you’ll find:

•  free gourmet coffee and fresh fruit in the lobby •  complimentary wine tasting in the afternoon •  pet-friendly accommodations

My favorite perk is something a select number of the properties do for guests. Perhaps you are staying at a Kimpton for a few days, and you are getting lonely…

GIVE A LITTLE UNEXPECTED EXTRA

Guppy Love Kimpton will give you a pet goldfish for your stay. They call it “Guppy Love.”

Average Goldfish = 3 inches

A goldfish also represents something small. But all goldfish are not created equal.

The world’s largest is…

Nearly 20 inches or 50 centimeters

That’s nearly six times larger! How can there be such a difference. It turns out the growth of a goldfish is determined by five factors. The growth of your business is also affected by the same five things.

Five Factors #1. SIZE OF THE BOWL = MARKET #2. NUMBER OF OTHER GOLDFISH = COMPETITION #3. NUTRIENTS/CLOUDINESS OF THE WATER = ECONOMY #4. FIRST 120 DAYS OF LIFE = START-UP #5. GENETIC MAKEUP = DIFFERENTIATION

Assuming you’ve already been in business for four months, what’s the only thing you have control over?

Five Factors #1. MARKET #2. COMPETITION #3. ECONOMY #4. FIRST 120 DAYS #5. DIFFERENTIATION

The only thing you can have control over is how you differentiate.

How you purposely stand out in a sea of sameness?

WHY THE COLORS? The first three colors were an ode to New Orleans and its most famous event…

Purple, Green, and Gold are the three official

Mardi Gras colors

The “additional gift”or “to give more”

LAGNIAPPE It was an ode to New Orleans because of one word… Mark Twain came to appreciate this one word and its meaning during his time in New Orleans. He wrote that it was “a word worth traveling to New Orleans to get.”

That one word is…

LAGNIAPPE

means the “additional gift”or “to give more”

LAGNIAPPE

Why RED? Our inspiration for RED comes from the (RED) movement. (RED) was created by Bono and Bobby Shriver. Launched in 2006, it’s purpose was to engage the private sector to raise funds in the fight against AIDS in Africa.

(RED) helped reinforce the simple idea that doing good is good business for both your customers and employees.

Purpose beyond Profit The branding agency Wolff Olins helped build the platform for (RED). They created a unique brand architecture that united participating businesses by literally multiplying their logos to the power (RED). Companies created select red products. A portion of the sales of those products were donated to (RED) chartiable programs. According to Wolff Olins, “the appeal of (RED) was clear: it connected these corporations with a purpose beyond their own profit.”

Prior to the launch of (RED), businesses had contributed just $5 million to the Global Fund in four years. In a decade since its inception, the private sector, through (RED), has contributed over $350 million. One hundred percent of the funds are invested in HIV/AIDS programs in Africa with a focus on countries with high prevalence of mother-to-child transmission of HIV.

In 2016, we started the Red Goldfish Project. We collected over 250 examples of how companies embrace purpose.

We found 8 Archetypes of RED GOLDFISH

1. The Protector 2. The Liberator 3. The Designer 4. The Guide 5. The Advocate 6. The Challenger 7. The Unifier 8. The Master

MASLOW The eight archetypes were inspired by Abraham Maslow and his hierarchy of needs.

1. The Protector PURPOSE: Those who protect what’s important Type: Safety Category: Product Archetype: The Protector - Those who protect what is important Fiction: Superman, Captain John Miller (Saving Private Ryan) Non-Fiction: Al Gore, Ralph Nader, Gloria Steinem, Jimmy Carter

Superman

1. The Protector PURPOSE: Those who protect what’s important

Patagonia’s purpose is to build the best product, cause no unnecessary harm, use business to inspire and implement solutions to the environmental crisis.

One of the popular red goldfish at Patagonia is a program that allows employees to take 2 months at full pay to work for environmental groups.

2. The Liberator PURPOSE: Shake Off the Old, Reinvent a Broken System

Type: Safety Category: Product Archetype: The Liberator – Reinvent a broken system Fiction: Jason Bourne, Lawrence of Arabia Non-Fiction: Moses, Richard Branson, Henry Ford, MLK

Moses

2. The Liberator

PURPOSE: Shake Off the Old, Reinvent a Broken System

Harley Davidson’s purpose is to fulfill dreams of personal freedom. They help build communities of people who love the freedom of the open road.

Harley has a program called the Riding Academy. As a red goldfish, they offer free rider training for military members and first responders.

3. The Designer PURPOSE: Empowering through the creation of revolutionary products

Type: Safety/Love Category: Product Archetype: The Designer – Empower through revolutionary products Fiction: Doc Brown, MacGyver, Willy Wonka Non-Fiction: Steve Jobs, Thomas Edison, James Dyson

Doc Brown

3. The Designer PURPOSE: Empowering through the creation of revolutionary products

Apple sought to make a contribution to the world by making tools for the mind that advance humankind. To quote Steve Jobs, “a bicycle for the mind.”

A red goldfish that brings Apple’s purpose to life is when they celebrated how autistic children are able to communicate through the use of an iPad.

4. The Guide PURPOSE: Facilitating Individual Progress

Type: Love Category: Product to Purpose Archetype: The Guide – Facilitator of individual progress Fiction: Mr. Miyagi, Glinda Non-Fiction: Salman Kahn, Neil deGrasse Tyson, Seth Godin

Mr. Miyagi

4. The Guide PURPOSE: Facilitating Individual Progress

Google’s purpose is to create technology that improves people’s lives by organizing the world’s information and making it universally useful.

A red goldfish from Google is 20% time. It allows engineers time to work on a personal project to improve or enhance a Google product.

PURPOSE: Those who stand up for a tribe

5. The Advocate

Type: Love Category: Product to Purpose Archetype: The Advocate– Those who stand up for a tribe Fiction: Katniss Everdeen, Atticus Finch, Oskar Schindler Non-Fiction: Susan G. Komen, Sheryl Sandberg, Michelle Obama

Katniss Everdeen

PURPOSE: Those who stand up for a tribe

5. The Advocate

Panera’s purpose is to help its customers consciously and eat deliciously. It aims to put a loaf of bread under every arm.

Panera Cares is an example of a red goldfish. These are community cafes based on shared responsibility and raising awareness of food insecurity.

PURPOSE: Inspiring People to Transformative Action

6. The Challenger

Type: Love/Esteem Category: Product to Purpose Archetype: The Challenger – Inspiring people to tranformative action Fiction: Maximus, Andy Dufresne Non-Fiction: Patton, Winston Churchill, Oprah, Tony Robbins

Maximus

6. The Challenger

PURPOSE: Inspiring People to Transformative Action

Nike’s purpose is to bring innovation and inspiration to every athlete in the world. And if you have a body, you are an athlete.

A red goldfish from Nike is its Nike+App. It allow you learn from professional athletes, get access to events, and support from trainers.

7. The Unifier PURPOSE: Inspiring Individuals to Join a Movement

Type: Esteem/Self Actualization Category: Purpose Archetype: The Commander – Inspire individual to join a movement Fiction: William Wallace Non-Fiction: Bono, Abraham Lincoln, Susan B. Anthony

William Wallace

6. The Heroic

PURPOSE:

7. The Unifier PURPOSE: Inspiring Individuals to Join a Movement

Whole Foods Purpose is to inspire others to help co-create a world where everyone, our communities, and planet can flourish.

A red goldfish is its stance on food labeling. They are requiring all of their products to indicate if they contain bioengineered organisms by 2018.

8. The Master

Type: Self Actualization Category: Purpose Archetype: The Master – Changing Lives and the World Fiction: Yoda, Gandhi Non-Fiction: Nelson Mandela, Elon Musk, Bill Gates

PURPOSE: On a Mission to Change Lives and Improve the World

Yoda

9. The Transcendental

PURPOSE: On a Mission to Change Lives and Improve the World

8. The Master

Warby Parker’s purpose is sell affordable eyewear and give back to developing countries by providing eyewear to those who need it the most.

A red goldfish from Warby is its “Buy a Pair, Give a Pair” program. The program trains men and women to give eye exams and sell glasses.

It is important to differentiate between a mission and a purpose:

“We do not have to be non-profits to make a difference in this world. We can be a for-profit that does things differently.“

– Rebecca Smith, Better Life Bags

What are your RED GOLDFISH?

READY TO THINK OUTSIDE THE BOWL?

on February 14th

Author: Stan Phelps

stan@purplegoldfish.com +1.919.360.4702

Author: Graeme Newell

gnewell@602communications.com +1.919.280.8224

Keynotes and Workshops

+1.919.360.4702 speaking@purplegoldfish.com

LITTLE THINGS CAN MAKE THE BIGGEST DIFFERENCE