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Manage Your Human Sigma
by  John H. Fleming, Curt Coffman, and James K. Harter

The Idea in Brief
Companies routinely assess the quality of manufacturing processes. But what about the quality of employees' dealings with customers? Each employee -customer encounter - every sale, every call-center conversation - creates or erodes value for a company.

Yet most businesses don't measure or manage the quality of employee-customer encounters. If they did, they'd discover extreme differences in employee and customer satisfaction across units. For example, some stores operated by the same retail chain are exceptional places to work and shop; others, awful. Unpleasant employee-customer encounters damage revenues and profits.

How to elevate the quality of these shared experiences in every part of your company? Start by measuring employees' and customers' emotional engagement with your organization. Why? Energized and committed employees engage customers and work more productively. Customers who feel strongly connected to your company spend more and stay loyal. When employees and customers are happy, your profits can soar. By measuring employee-customer encounters in each part of your company, you manage them better-spotting and addressing problems before they poison your bottom line.

In one study, companies that applied these practices outperformed peers by 26% in gross margins-and 85% in sales growth.

COPYRIGHT © 2005 HARVARD BUSINESS SCHOOL PUBLISHING CORPORATION. ALL RIGHTS RESERVED.

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