Category Archives: Books

5 ways money can buy you happiness

Most of us work to earn money to fund a lifestyle. We often think that if we just had more money we’d be happier. Well, that depends on what you do with it.

An interesting challenge for banks right now is how they provide us with advice and services that help us manage our money better; rather than simply spend it.

Michael Norton, a professor at Harvard, has conducted some interesting research on how we can use money more wisely and increase our happiness. Here are his five principles:

  1. Buy experiences; not stuff. The anticipation and looking forward to the experience usually provides longer lasting gratification than the purchase of an item. And having the experience is interesting and enjoyable. Plus, looking back on an experience usually provides a better memory than the time when we bought a bigger TV.
  2. Buy time. It might be your dream to get out of the city and buy a big house in the country. But have you considered you might be buying yourself a two-hour commute? Perhaps a job move might require a drop in salary, but it gives you more time with family or less time travelling – which more than offsets the reduction in income.
  3. Pay now, consume later. Credit cards, of course, do the opposite – the instant hit with the bill that follows afterwards. Have you ever paid for a holiday when you’ve booked it and then when it comes time to go it almost feels like it’s free? When you’ve got money, use it to pay for things (or experiences!) you’ll make use of later.
  4. Make it a treat. We’ve all got into spending habits – coffee, wine, clothes – but these regular transactions become mundane. They lose the thrill they once provided. The way to get excited about them again is to give them up for a while. Take a week off from coffee and treat yourself next Monday morning. It will taste so good! Making things a treat involves spending less money and you’ll get more happiness out of it when you do go back to it!
  5. Spend it on someone else. Spending money on someone else reliably increases the spender’s happiness. And it can be quite a small amount to get a big reaction from the recipient, whether that’s a loved one, a donation to charity or some other altruistic expenditure.

These ideas come from Michael Norton’s book with Elizabeth Dunn, ‘Happy Money‘. He’s now focused on working with companies to help them educate and encourage their employees how to get more out of their money. As an employer, creating happier employees will have a direct impact on retention, engagement and customer service.

For some organisations – banks in particular – doing the same with customers could have huge benefits. Helping customers become better with their finances helps make them better, lower risk customers, more likely to take out higher margin products in future.

So it turns out money can buy us happiness, just not in the way we expected.

Wally Olins on Employer Brand

I was searching for something on Amazon when Wally Olins’ ‘Brand New’ popped up in my ‘You might also like…’ list. At work we’d just had a debate about whether Employer Brand and Corporate Brand were distinctly separate things or just one and the same. So I thought I would read the latest musings of this master of Corporate Brand – made all the more poignant by his passing last month just after it was published.

Whilst Olins doesn’t mention the concept of Employer Brand per se, a lot of what he talks about is highly relevant for those involved in attracting and engaging workers with a brand. Here’s my summary of his insights in that context:

Wally Olins’ take on brand is absolutely aligned with others currently looking specifically at the power of your organisation’s identity in relation to your employees. He starts off with his articulation of the concept of ‘Brand’ – making it clear that it is so much more than just a logo. Trust and authenticity are central. Creating an authentic ‘Talent Brand’ is a core component of Kevin Keohane’s model in ‘Brand and Talent’.

He then discusses the importance of how we consume a brand – largely through our experience of interacting with the people who represent it. This is the central idea in Ian Buckingham’s ‘Brand Champions’.

He then moves on to look at the level of scrutiny consumers are putting companies under. The sheer volume of data and behind the scenes insight available now makes it easy for customers to learn far more about a company than what the PR and Marketing departments put out. He cautions that the ease with which disgruntled customers can mobilise a mass movement online should act as an incentive to be more trustworthy and authentic. The same is true for employees. LinkedIn and Glassdoor make it easy for potential employees to connect with real employees and find out what the employment experience is really like – not just what the recruitment advertising promises.

Of course, companies can dig up similar insights or potential customers or employees – credit checks, social media following, etc. “Mutual exposure” is how he sums it up – “There’s just no point in hiding anymore.”

Despite how much employers and customers/employees can get to know about each other, he laments the fact that we seem to have less and less personal contact. The drive to automate, outsource and increase efficiency has put more distance between the ability of organisations to have meaningful social exchanges with people – a point which is just as relevant to a candidate wading through an impersonal online application process as it is to a customer trying to print a return label from a self-service help and support portal.

Having summed up his views on the current state on branding, Olins then comes to what is, for me, a great call to action for what we should strive for. Five short points that can help you do a superior job with your (employer) brand:

  1. Knowing who you are
  2. Talking, listening and being engaged
  3. Showing who you are
  4. Embracing everything you do
  5. Managing it and making it work

His ideas for how we can get better at these five points are worth reading. It’s largely common sense – clearly not common practice – but expressed by someone with experience of what really works in branding and identity that few can match.

He brings these points to life with wit, insight and engaging stories that often reveal the ridiculousness of what branding has become. Everything from the automated text messages his mobile provider sends to pilots’ pre-flight announcements helps you see how lost many companies have become in their attempts to make us engage with their brands. The parallels in recruitment marketing, candidate experience and employment value propositions are all too easy to draw!

There’s inspiration here too for how we can become more imaginative in how we talk and how we act when trying to attract and engage customers or employees.

Olins then deals with two extremes – both of which are relevant from an employer’s perspective. He highlights how the errors big brands are making and the direction of travel for social media and online tools create incredible opportunities for new brands or challenger brands. They can exploit these opportunities to steal a march on their bigger competitors and occupy a space in the branding world that gives them a competitive edge.

The other extreme  is how lessons from Olins’ work on country and place branding can be applied to big companies. He was well known, and often derided, for his work for national and local Governments, helping them to brand their ‘place’. But if you think managing a brand for a large, complex organisation is difficult, imagine trying to do it for a whole country!

His ideas for how to engage disparate stakeholders, get everyone communicating the same messages and how to align behaviours and experiences behind what the brand stands for will make interesting reading for anyone trying to do the same in a big corporate environment.

The book then closes with his own thoughts on his career, and you have to wonder if he had a feeling that it would be the last book he would write.

He very humbly describes an illustrious career that pretty much set the standard for what good work on branding and corporate identify should be like. Wally Olins was one of the first people to just get what branding was about. His relevance to those of us focused on the employment side of corporate identity is summed up neatly in his description of what he realised after visiting different clients’ steel plants in India in the sixties. He was fascinated by how the environment and how employees behaved gave him a sense of what each organisation stood for, even though they all produced exactly the same thing:

 

“That is, looking back on it, when I began for the first time to sense that a corporation communicates what it is through everything that it does.”

Wally Olins

Re-thinking careers education

I stumbled across this:

“More than 20 years ago a generation of schoolchildren sat down to complete a questionnaire they were told would predict their future.”

Which is a BBC Scotland story about the Jiig-Cal computer in Edinburgh that reported back to an estimated four million pupils across the UK in the eighties about which career paths they should follow. I have vague memories of doing this questionnaire, although I can’t remember what my results were.

The article says that 70% of people went into jobs suggested for them by the computer – that doesn’t mean that they were the right jobs! It just shows how influential careers education or advice can be.

Fortunately, careers education has moved on a great deal since then. Unfortunately, I think it’s still hampered by an education system that is schooling people in ‘old world’ ways that are wholly inappropriate for our current reality. This is best articulated by Sir Ken Robinson in his TED Talk ‘Schools kill creativity’. If you have school-aged children, you have got to listen to this 18-minute talk. It could change the way you view their selection of subjects, which could have profound outcomes on their career success.

Some of Sir Ken’s ideas are explored further in Dan Pink’s book ‘A Whole New Mind’. If you are not the classic left-brain, MBA touting whizz-kid – fear not! The future for us in the west belongs to those who recognise and develop their right-brain (and, ultimately, whole-brain) capabilities.

So, if you’re in any form of career education at present, I would urge you to take account of some of this thinking that our current system is somewhat off the mark in terms of preparing people for happy and productive careers over the next 20-30 years.

And if you remember what the Jiig-Cal computer predicted for you, post it here!

Dig your well before you’re thirsty

I was speaking to two job searchers recently who both found out fairly suddenly that they were about to be back in the job market. Both were networking extensively – networking being well established as the means through which most professionals find their next role.

For one of them, who had maintained and nurtured her network, things were moving quickly. She was down to a final stage interview for one role and had two other opportunities on the go, all within four weeks of leaving her last post.

The other person was re-establishing key relationships. His contacts were responsive, but he was in the process of ‘activating’ them after not having had much contact over the last year or so.

This reminds me of Harvey Mackay’s book ‘Dig Your Well Before You’re Thirsty’. Networking is a great job search tool, but it shouldn’t be a reactive thing – tapping into network contacts when you need them. You should proactively build and develop your network all the time, so that it’s there – ready – when you need it.