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Satisfied and Engaged Employees Lead to Satisfied Customers

  
  
  
 

employee engagement before customer satisfaction (1) resized 600In a recent blog article published by Harvard Business Review, Kenneth Freeman presents the case for focusing on long-term shareholder value through an engaged workforce. He boldly states that the way to approach this goal is to first create employee satisfaction before customer satisfaction.

For many of us who have always been taught that the customer comes first, Freeman’s point seems counterintuitive. In fact, the notion to put employees before the customer reminds me the preflight instructions from airline attendants to “place your own oxygen mask on before helping children or others.” While the natural instinct is to help your kids and others before yourself, flight safety experts want you to help yourself now so that you could be of long-term assistance to others. Hmm.

Freeman uses his own experience as a case study of how he righted a sinking ship. In his situation, his employees’ poor attitudes were putting people’s lives at risk. Not all companies provide life or death services, but the end result could indicate a healthy or fatal bottom line for your business.

What’s your culture forecast: positive sunshine, negative gloom, or apathetic gray?

We’ve all dealt with enough businesses in our lives, whether retail or other, to have experienced the happy and contented employees as well as those comically apathetic and disengaged clock watchers. Both sets of employees likely stem from environments that encourages either behavior – they are both infectious, but one is positive while the other negative.

If you already have a staff of employees with shining, customer service-oriented attitudes, then you’ll not likely hire an obvious malcontent to join your team. If you’re unsure, pre-hire assessments can generally weed out behavioral tendencies that won’t fit your culture. And for businesses whose environment (and therefore its culture) is as gloomy as the Addams’ Family’s, worthy potential employees will decide for themselves not to bother applying.

Those scenarios are pretty clear cut, but there’s a very large gray area in which most companies likely function. Over time, what was once a bright and positive culture can give way to an unintended malaise. As Freeman points out, when leaders detect that their company has fallen victim to this, they need to reengage their employees to escape that funk before it ruins the business.

Many companies, such as Woodmen of the World, conduct internal employee surveys to measure employee attitudes among their staff. But as the executives mention in the video, you have to be willing to follow through on the feedback you receive; if you don't, the survey will be perceived as an empty gesture and attitudes will likely sink lower.

Employee Engagement at Woodmen of the World

Beyond trying to fix obvious issues with working conditions, employees need to be reminded that what they do is important and valued. No matter where they are in your operations, your workforce needs to know how their efforts contribute to the end result. From R&D to manufacturing, marketing and sales, distribution, and customer-facing staff as well as HR, IT, and accounting, each person plays an important role in how your business performs to serve its clients and constituents.

For some functions, this is easier said than done. While telling a back-office employee how she contributes to the success of the company, find a way to help them appreciate how your business serves its buyers and constituents.

For parts of your workforce that aren’t exposed to the critical or customer-facing aspects of what you do, perhaps you should consider periodic job rotations to those critical areas. I recall several years ago when senior executives from AMC Theatres would spend time working alongside their ticket takers, cashiers, and concession clerks to be reminded of what the majority of their staff do, the importance of staying connected to their customers, and looking for new ways to improve their business.

I always respected that initiative and think that it can be applied to any business to engage employees. Think of it as an exchange program where workers trade roles for what could be a few hours or a few days. They will likely come away with more respect for what goes on in other parts of the business and perhaps be reinvigorated in their own work. It can also spark ideas for how they can better contribute to your operations, and they will most likely be thankful for the opportunity that you have created for them.

Freeman walked the halls of his company and could see the demoralized attitudes among his staff. I applaud him for touring his operations and not managing from his corner office as many executives do. It’s important for employees to know that their bosses (all the way to the very top) care enough about the company and their workers to tour the plants, meet the people, and engage in the business rather. It shouldn’t be a fearful or foreboding visit either – just like the annual performance review, there shouldn’t be any surprises when the boss pays a visit. An operation with engaged employees would already be doing what’s necessary and should have nothing to fear. If they do, then something’s wrong.

Include talent management in your long-term plans

A business and its leaders who can’t see beyond the short term will be more tolerant of bad behavior and attitudes. Successful organizations that are in it for the long haul have a long-term goals and a strategy to get there, which includes strategic talent management.

Conventional wisdom dictates that the customer comes first, but I tend to agree with Freeman. If employees are disengaged, unhappy, or malcontent, then they’re unlikely to delight your buyers and encourage them to “come again” for their future purchases. However, fully engaged, motivated, and committed employees will be friendly and outgoing with customers and colleagues and are likely to perform at their best.

Image credit: http://www.flickr.com/photos/dacran/2596478381/sizes/z/in/photostream

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Comments

I could not agree more. It is common sense but I get common sense is not so common. So many organizations still see employees as expenses, instead of assets.  
 
On my blog I posted an interview with Colleen Barrett of Southwest Airlines, which has always operated with this principle and has reaped the benefits over the past 30 years, in an industry which has been in a nosedive. 
 
Check out this amazing interview athttp://www.benlowensohn.com/2011/11/01/step-3-to-a-better-you-happy-employees-happy-customers/
Posted @ Tuesday, November 08, 2011 9:06 PM by Ben Lowensohn
Thanks for your comment, Ben, and for sharing the interview link. The companies viewed as "progressive" are usually the ones that place a higher value on their employees. Why does it have to be novel? When employees feel valued and respected, they're happier workers and provide better service to their customers. It's a win for everyone!
Posted @ Wednesday, November 09, 2011 12:02 PM by Jeff Meyers
I couldn't agree more. It is possible to create a "disengaging" environment as well. Focusing on engagement, versus satisfaction, can make a huge difference for the team members and residents we serve.
Posted @ Thursday, November 17, 2011 4:31 PM by Kellie Gundling
========================================== 
 
Knowledge Workers Categories (Rule of PaProFa) by Sajjad H Khan 
 
========================================== 
 
 
 
While talking about the businesses that are totally depending on knowledge workforce especially the IT business, it was very difficult for me to define a formula to gauge attitude of workers towards work. During my study, I found knowledge workers (employees) with different attitudes. The attitudes were reflecting some social values hence a difficult angle to gauge employees’ performance.  
 
 
 
I always think of to solve this complex problem and never find any solid solution. After many tries I came across a formula which I derived after a very detailed study of human behaviors, social impact and classification on the basis of fortune they already have. I concluded that there are three basic ingredients to gauge the success or failure of a business totally based on knowledge workers. I derived a simple Rule called "Rule of PaProFa". 
 
 
 
================================ 
 
Knowledge Workers Categories (Rule of PaProFa) 
 
================================ 
 
 
 
I have divided knowledge workers into three main categories: 
 
 
 
• Passion Workers 
 
• Profession Workers 
 
• Fashion Workers 
 
 
 
I took the first sonic of each single word and came up with a name “PaProFa” (Passion, Profession and Fashion) that also have some meanings in itself. PaProFa should be in a certain or balanced proportion to achieve the desired goals and success otherwise sometime increase in one factor could cause a major disaster or vice versa.  
 
 
 
• Pa = Salves to Promises (Spiritual), Exceeding 
 
• Pro = Professionals or Specialists (Materialistic)  
 
• Fa = Fun Lovers (Careless).  
 
 
 
I find “Pa” kind of workers who were seemed always busy and enjoying their work. They always put their heart and soul to their work and their output also was double than a standard or “Pro” type of worker. “Pro” type of workers gesture a professionalism and never spending less or more but balance and within limits efforts. Whereas “Fa” kind of workers are totally against the “Pa” workers, they indulge the entire environment and not only they were wasting their time but also involved the other workers from “Pa” and “Pro” types and doubling the losses in terms of time, money and moral. Due to this behavior some workers start jumping in to their category which is highly dangerous and need to be monitored before time if one company really needs to retain the pool of good workers at par. 
 
 
 
Below is a simple calculation to check the performance of each type of workers and in a nutshell the performance of the department overall: 
 
 
 
A: Effort Factors 
 
• Pa = +2 
 
• Pro = +1 
 
• Fa = - 2 
 
 
 
Pool Sharing Ratio = ( Workers in each Type / Total Workers in a Pool ) X 100 
 
 
 
Performance = PaProFa Effort Factor X Pool Sharing Ratio 
 
 
 
A-1: Business Performance Example # 1 
 
------------------------------------------------------------ 
 
Description Pa Pro Fa Result Excellent 
 
Workers 30 160 10 200  
 
Pool Sharing Ratio 15 80 5 100  
 
Effort Factor 2 1 -2 1  
 
Performance 30 80 -10 100  
 
 
 
A-2: Business Performance Example # 2 
 
------------------------------------------------------------ 
 
Description Pa Pro Fa Result Good 
 
Workers 20 150 30 200  
 
Pool Sharing Ratio 10 75 15 100  
 
Effort Factor 2 1 -2 1  
 
Performance 20 75 -30 65  
 
 
 
A-3: Business Performance Example # 3 
 
----------------------------------------------------------- 
 
Description Pa Pro Fa Result Very Poor 
 
Workers 25 125 50 200  
 
Pool Sharing Ratio 13 63 25 100  
 
Effort Factor 2 1 -2 1  
 
Performance 25 63 -50 38  
 
 
 
B: Performance Results Legneds 
 
----------------------------------------  
 
Between 81 and above = Excellent 
 
Between 71-80 = Very good 
 
Between 61-70 = Good 
 
Between 51-60 = Poor 
 
Below 50 = Very Poor 
 
 
 
By looking at the above examples and calculations, we need to decide which area is required to be enhanced.
Posted @ Wednesday, December 21, 2011 2:06 PM by Sajjad H Khan
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