Human Sigma: The Lucrative Link to Company Performance

 In Business Success, Customer Engagement, Customer Loyalty & Retention, Customer Service & Satisfaction, Employee engagement, Rick Conlow

Human Sigma involves the connection between employee engagement and the customer experience. Each undoubtedly linked in influencing a company’s financial results. Yet, it’s important to clarify that this connection isn’t always linear. In other words, companies can inaccurately assume that by improving one, they’ll automatically improve both ingredients to a positive human sigma. Consequently, they start with the easier option. Most often they just work on the customer experience. This is the wrong way to go about it.

It Isn’t That Easy

Human Sigma: The Lucrative Link to Company PerformanceFor example, just as exercising and eating healthy are two factors to losing weight. Treating employees well and satisfying customers are two factors to driving business success. That being said, if you just do one, the other won’t automatically change for the better. If you eat well that’s good. Yet, if never move your body, you won’t necessarily lose weight or be healthy. And similarly so, if you just strive to satisfy your customers, your employees might not feel any different. Unfortunately, companies often sabotage their efforts because of a poor culture. Doing both parts of human sigma well substantially increases your likelihood of achieving financial impact.

The Human Sigma Connection

Human Sigma: The Lucrative Link to Company PerformanceIf you’re wondering why the linkage matters, let’s look at the research. Fleming and Asplund published Human Sigma: Managing the Employee-Customer Encounter. Through their research, they discovered that “Business units that performed well in employee and customer engagement tended to deliver considerably better financial results (3.4 times better than others) than those that scored poorly on the two measures. Interestingly, they didn’t have to be the best in these areas.  You just need to be making good strides in each areas of the human sigma to achieve better results overall.

Great News for 3 Main Reasons

  1. It provides a focus. Companies can spin their wheels when deciding where to begin when they know they need to change. This human sigma evidence provides companies the direction they might be lacking.
  2. It produces a realistic approach to reaching results. Knowing how these two things work in tandem can spread the responsibilities around. Nobody has to do it all. It needs to be a team approach.
  3. It proves that everyone matters. If just employees mattered – your customers wouldn’t want to return for more. And if just your customers mattered – your employees might feel severely shunned. But with this news, both factors matter. Ultimately this means more people will be pleased with your company.

Human Sigma: The Lucrative Link to Company PerformanceFinally, this lucrative link simply makes common sense. How can you expect exceptional customer service if employees don’t like their boss? Or they hate the company? Or, how can you deliver subpar service with employees that love their boss and the company?  In either case it is a leadership challenge. Steve Jobs said it well, “That’s been one of my mantras – focus and simplicity. Simple can be harder than complex. You have to work hard to get your thinking clean to make it simple. But it’s worth it in the end because once you get there, you can move mountains.” 

Also, do you want more ideas on how to inspire your team? Check thisHuman Sigma: The Lucrative Link to Company Performance out this eBook-How to Motivate-NO-Inspire People.

In addition, go here for our RealTime Learning & Training leadership and personal development website. Micro-learning and career advancement at your fingertips!

Finally, do you want to accelerate your leadership success? Go here for Rick’s Superstar Leadership eBook.

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  • […] The answer to both of these questions has to be an emphatic, “No!” Great service requires you to move from self-concern to a concern for others. Superstars in customer service deliver exceptional service in five key moments of truth. Moments of truth are where you have the opportunity to create happy or unhappy customers. It is your responsibility (employee, manager, CEO- to manage them). By doing so, you can overcome internal or external stresses that don’t matter to the customer. You can create moments of magnificence – not mediocrity or misery for your customers. The truth is a company’s culture greatly influences how well employees and managers perform. See my post: The Lucrative Link Between Employee and Customer Loyalty. […]

  • […] perception. While on on hand this is bad news. On the other hand, for companies that know the lucrative link between employee engagement and customer engagement, it is superb news! It means more market gains for […]

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