(Abstract) 100 Great Business philosophy: Concept 24: employee-customer interest chain

Concept 24 employee-customer interest chain

Sears directly associates employee performance with company performance, which provides an excellent example. The employee-customer interest chain (a variant of the service interest chain) makes the causal relationship extremely clear. By letting employees understand what their actions mean, they can change their way of thinking and how they view their results.

Concept

The traditional approach of managers is to focus only on results. However, this measurement method has passed. Today, the demand for market management is to emphasize the value-driven factors (the huge difference shown in business activities, to provide customers with the best interests of all aspects) management. Among these value-driven factors, employee turnover, employee satisfaction, and employee productivity greatly affect customer satisfaction, revenue growth, and profit margins. This is emphasized in the following service profit chain.

At the beginning of 1990s, senior executives of the US-based westles department store realized that their future performance will not only be achieved by introducing different strategies or adjusting market plans. After suffering huge losses, they began to pay attention to the following three issues:

§ How do employees feel when they work at westles department store?

§ How employees' behaviors affect customers' shopping experiences

§ How the customer's purchase experience affects the company's profit.

They looked at 10% of employees to see how much profit they thought would be made for each $1 sale. The average answer is 48 cents, but actually only 1 cent. In this case, we need to emphasize that employees, especially front-line employees, should better understand the factors that determine profits. Siles's practice is to develop an employee-customer interest model (ecpm) to clarify the causal relationship. In this way, employees can better understand the meaning of their behaviors, which changes their thinking and behavior patterns. This is also reflected in the bottom line performance.

Falls's approach is to develop a set of measures based on three goals to create an employee-customer interest model (which is a special version of the service interest chain ). The three goals are to make Siles an excellent workplace, shopping place, and investment place.

For the 200 senior executives of Siles, the incentives for employees are based on the overall performance indicators (TPI)-including economic and non-economic measures.

§ 1/3 is the measure given to employees-attitude towards work and Company

Market Management is a value-driven factor

Active management. Although it is difficult to define,

But they are direct to your future.

.

Chart: Service interest chain (SPC)

§ 1/3 is the measure for the customer-the customer's impression and customer retention

§ 1/3 is an economic measure-asset yields, gross profit and revenue growth.

Based on the employee-customer interest chain, the management staff of Siles hired, promoted, and assessed the employees according to 12 criteria:

§ Customer service orientation

§ Initiative and sense of urgency

§ Commercial knowledge and cultural level

§ Problem solving capability

§ Developers should pay attention to their ideas

§ Teamwork skills

§ Two-way communication skills

§ Pay attention to diversity

§ Authorized skills

§ Interpersonal skills

§ Ability to lead changes

§ Integrity or not.

These standards can be summarized into three aspects: enthusiasm for customers, leadership level, and value-added services.

Practical application highlights

§ Ask managers and market professionals to share customer information. The information of the human resources department can stimulate people's role, and gain insight into the needs of external customers in the market. Find the causal link between various factors.

§ Integrates intuition-aware knowledge and common sense through reasonable data analysis.

Superior workplace superior shopping place superior investment place

An employee's attitude increases the customer's impression by 1.3 for every 5 more units, thus increasing the income by 0.5%.

Note: The content in the rectangle is the survey information, the data in the elliptical shape is the statistical data, and the shadow part is the overall performance indicator of the falls.

Chart: employee-customer interest chain

§ Understand the success of employees-what makes them highly profitable, efficient, and actively strive to achieve the company's goals. Understanding these factors and how they can be used can make the human resources department play a very important role in the company's success process.

§ Ensure that measures are not too complex and require practical, sound, and rational methods.

(Abstract) 100 Great Business philosophy: Concept 24: employee-customer interest chain