From: John Yost [john.yost@procompass-ms.com]
Sent: Tuesday, October 07, 2003 5:35 AM
To: Business Leader
Subject: ProCompass Newsletter - Issue 11

 

Issue 11                                                                                    October 7, 2003

 

The ProCompass Newsletter is a publication of ProCompass Management Services shared with over 200 subscribers on the first and third Tuesday of each month.  Please share this information with your friends and associates.

 

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In this Issue:

 

Do Customers Care if Your Employees are Satisfied?

 

Customer Satisfaction is one area of business performance that is receiving a lot of attention nowadays.  According to management gurus such as Peter Drucker, the only real purpose of business is to attain and retain loyal customers.  It only makes sense to focus efforts on improving customer satisfaction.

Another area that is receiving a lot of attention is employee satisfaction.  Here again, it makes sense.  Loyal, satisfied employees are a crucial element to effectively achieving a company’s plans, goals and mission.

Customer satisfaction and Employee satisfaction are both areas of improvement that many companies strive for.  But, do we have to trade off one of these elements against the other?  Do we have to give up a little employee satisfaction in order to gain in the area of customer satisfaction?

It may not seem readily clear, but organizational studies have found that there is a strong linkage between employee satisfaction and customer satisfaction.  Simply stated, happy employees are better equipped to provide customer satisfaction than are unhappy employees, and greater customer satisfaction leads to greater profitability.

Organizational surveys have found that following areas contribute most significantly to employee satisfaction:

Many companies put a lot of effort into developing these areas to achieve greater levels of employee satisfaction; when they can afford it!  But what happens when the business climate does not allow for this?  What happens when companies have to cut back expenses, reorganize, and lay off valuable employees.  You might have guessed it; all these areas of employee satisfaction suffer significantly.  In other words, companies that have to downsize are left with employees who are less satisfied, less able to meet customer satisfaction requirements, less able to contribute to the companies vision, mission and goals, and this means the a company often loses track of its vision, mission and goals.

So, I guess the best thing is not to lay off any employees and suffer the staggering losses imposed by a downward spiraling economy.  Well, forgive me for a utopian mind lapse, but this won’t work either!  Dramatic economical changes often require dramatic organizational changes.  No company; no CEO, no HR manager relishes the idea of dismissing valuable employees, but company survival is of paramount importance to all stakeholders

So, we’re caught between a rock and a hard place!  We need to cut back on expenses, which includes employees.  But, how do we do that and still maintain a level of employee satisfaction that provides the level of customer satisfaction and mission fulfillment necessary to keep the company going.  As you guessed, it is no easy matter.  Some of the processes that companies should go through when they are faced with this process are:

Strategic Alignment:  Are you still able to target your original vision, mission and goals?  Are some changes required to keep the company going in a sustainable direction?

Anticipate Change:  No one has a crystal ball (at least not one that really works).  However, it is necessary to anticipate the future and to understand what changes in the economy, market conditions, customers and technology might necessitate changes in the business.  It is much easier to deal with change if it is known in advance.

Communicate:  Just having a clear vision and a good sense of the future is not very helpful if you keep this to yourself.  The company’s vision, mission, goals and future scenarios must be strategically communicated to all levels or the organization so that everyone can align their plans and objectives to that of the overall business.

Involve everyone:  Nothing is more alienating than having something thrust upon you for which you had no input or alternative.  No one likes seeing their associates leave the company due to downsizing, but people are much less resistant if they understand the necessity and feel that they are an important part of securing the company’s future.

 

Well …  Maybe I drove around the block just to get next door. But the fact is, customers do care if your employees are satisfied, even if they don’t come right out and say it, and employee satisfaction may hinge on things that are often difficult to deliver.  But don’t fall into the trap of thinking that it is OK to give up a little employee satisfaction without hurting customer satisfaction.  It’s a difficult job, but that’s what we’re here for/

 

 

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