Human Sigma: The Lucrative Link for Better Results

Human Sigma involves the connection between employee engagement and the customer experience. Each undoubtedly influences a company’s financial results. Yet, it is important to clarify that this connection is not always linear. In other words, companies can inaccurately assume that by improving one, they will 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 Is Not That Easy

For example, just as exercising and eating healthy are two factors important for losing weight. Treating employees well and satisfying customers are two factors critical for business success. If you just do one, the other will not automatically change for the better. If you eat well that is good. Yet, if never move your body, you will not necessarily lose weight or be healthy. And similarly, if you just strive to satisfy your customers, your employees might not feel any different. Unfortunately, companies often sabotage their efforts because of neglecting their culture. Doing both parts of human sigma well substantially increases your likelihood of achieving a meaningful fiscal impact.

The Human Sigma Connection for Better Results

If you are wondering why the linkage matters, let us look at the research by Fleming and Asplund. Through their research, they discovered the following:

• “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.
• A follow-up study showed performance of 26% better in gross margins and by 85% in sales growth.

Interestingly, they did not have to be the best in each area.  You just need to be making good strides in each area of the human sigma to achieve better results overall. In addition, research demonstrates Servant Leadership as the best and most sustainable way to achieve top-tier employee engagement and customer service. Why? Because it elevates people-first.

Great News for 4 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 with 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 must do it all. It needs to be a team approach.
3. It proves that everyone matters. If just employees mattered – your customers would not want to return for more. And if just your customers mattered – your employees might feel severely shunned. But with this news, both factors matter. This means more people will be pleased with your company.
4. In conclusion, the location or department manager is the driver not the corporate office. How well managers relate to their teams and customers determines success. Therefore, leadership development and training are crucial to improving results.

Human Sigma: Pulling It All Together

Finally, this lucrative link simply makes common sense. How can you expect exceptional customer service if employees do not like their boss? Or do 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 must 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.”