The Power of Core Values

In the past, I was never a believer in committing core values to paper. I always knew they were important, and while we certainly abided by a set of core values in our heads and hearts before, I chalked up the actual "writing of them down" as corporate schlock and rhetoric. Did anyone really care? If any of you have seen Office Space, you know what I mean (i.e., big, grey company asking its people "Is this Good for the Company"?)

I have since parked my skepticism as I found the process of committing tried and true values to paper to be liberating. Someone once told me that you know you have nailed a core value when writing it down gives you goose bumps. I mean, it actually has to mean something in order for it to be that powerful. That changed my perspective immediately. What was it that was so exciting about this place when it was just an idea, 1 phone/desk and no clients? Why did the founder wake up one day and declare "I want to start a company". This is the magic that needs to be encapsulated in your value system (the magic elixir, as it were).

For a look at what guides us at Right Sleeve, click here.

I also found that as a business grows, the founder does not have the time they had before to manage individual staff and guide them through every process, customer issue, sales call etc. It is so much easier if everyone is on the same page from day one. The values of a company end up replacing the boss in many ways. If you ever have a question about how something should be done, don't ask the boss ... consult the values. This is so much more empowering for everyone. No one wants to hear the boss drone on more than he/she already does (I speak from experience)!

This also makes your recruiting process much easier. Not everyone is going to agree with your value structure. Fair enough - pass on these candidates, regardless of their skill set. We ask everyone of our job applicants to study our core values so they can draw upon experiences that show they will be the right fit. We have made many interview mistakes in the past ("can you tell me your greatest weakness?"), but we have found that the whole conversation shifts into reality when you hold up your value system to a candidate and ask them to respond. If they lied in the job interview, you will know within 1 week of them starting on the job (at which point they should be shown the door - for everyone's sake).

The same can be said when you pitch clients. While we always want new business, we make a conscious effort to evaluate our clients and measure them against our set of values. No one wants to work with a client that does not value what you stand for. The same goes for partnering with vendors as well.

All great teams have one thing in common - alignment around a common cause. Committing values to paper is a great process to go through (and I sheepishly apologize to anyone with whom I debated this subject in the past).

Winterlicious - a squandered marketing opportunity

Winterlicious is a great idea gone wrong.

For the uninitiated, Winterlicious is a restaurant promotion organized by the City of Toronto to encourage people to try new restaurants. Participating establishments will prepare a special prix fixe menu at a substantially reduced price from their regular menu cost.

This is a cool concept as it encourages people to try restaurants they normally would not try, principally due to cost. High end restaurants like Biff's, Canoe, Monsoon open their doors to Winterlicious fans for a select period of time. People come in throngs to enjoy the savings as well as the (supposedly) great food.

Here is the problem. The restaurant often offers a substandard menu so as not to lose money on the Winterlicious promotion. They also reduce the service levels and some will even seat you in a "special" section when you announce that you have a Winterlicious reservation. In one outing, the host looked down his nose at us and said curtly "right this way, we have a wonderful table for you" (it was right by the kitchen door).

The menu is typically the light version of what you would normally get at the restaurant. Cheaper ingredients, smaller portions, slower service, sitting in the kitchen, etc all contribute to the underwhelming experience.

Why do some of the restaurants take these short cuts? I am still a paying customer ... but most importantly, I am a new customer (and like most Winterlicious types, an enthusiastic restaurant goer). I also have 1000 choices in Toronto and I have now selected your restaurant. And now you cheapen the experience for me? My expectations were so high, especially after reading the reviews from the pundits. I was excited!

Here is what I think when I leave:

1. I received poor value for my money, even at the reduced rate (I still dropped $100 incl tax/tip/booze on my meal for two .... not exactly a screaming bargain).

2. I was made to feel like a pauper as a Winterlicious customer (maybe they should hand out dunce hats and special T-shirts - NOT made by rightsleeve.com! - at the door).

3. Service was poor, and even worse if I did not order alcohol with my meal

4. A higher end restaurant like Biff's is not so high end anymore in my mind.

5. I have 1000 choices. The next time I will certainly not go to a place where I received mediocre value for my money, even if I paid a little less. A bad experience is still a bad experience, regardless of what it cost.

If I was a restaurant owner, here is how I would work the math.

1. Recognize that the cost to be an official Winterlicious restaurant is a marketing investment, not a cost.

2. Recognize that the reduced meal cost offered to patrons is also a marketing investment (I mean how much am I really losing? I doubt I am selling the food for less than cost, even at Winterlicious rates).

3. Ratchet up the service levels for my Winterlicious patrons. Give them the best seats, make the food extra special, do something to wow my new clients ... roll out the red carpet in a big way. This is my ONE chance to impress them and keep them interested.

After they leave, are my new clients raving about the experience? When people have an superb experience, especially when they get a deal, people TALK about it to EVERYONE. Conversely, when people have a poor experience, they also TALK about it to EVERYONE - often more so and certainly with more venom. Some people will even go so far as to blog about the poor experience - imagine that! :)

btw - the only restaurant that has impressed me with their great food and service at Winterlicious is the Rosedale Diner (just so you don't think I am excessively crusty)!

Conclusion - businesses that offer coupons, discounts, special promotions to bring new clients in the door have one chance to impress. Why put the B team on when you can really do something amazing to earn a client for the long term? A client who saves 20% off their meal on their first visit will more than make up for this loss in subsequent visits. It all comes down to the lifetime value of a client.

A client who saves 20% and has a bad experience will just spread the word about how underwhelming you are. What a squandered opportunity.