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
For 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, 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 financial impact.
The Human Sigma Connection for Better Results
If you’re wondering why the linkage matters, let’s 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 areas of the human sigma to achieve better results overall.
Great News for 4 Main Reasons
- 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.
- 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.
- 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.
- In conclusion, the location or department manager is the driver not the corporate office. How well managers relate to their teams and customers determines the success. Therefore, leadership development and training are crucial to improving results.