Focus on Employees Before Customers

April 25, 2014

In my experience, the best companies put their employees ahead of their customers. This may seem counter to what most companies want to convey to the marketplace, but the ultimate value of products and services shine through if the people designing, producing and delivering them are served well.

Think of Google, Zappos , Netflix, Costco and, at least until recently, Southwest Airlines who continually focus on the relationships with their employees.

“Everybody talks about building a relationship with your customer,” says Angela Ahrendts, CEO of Burberry and soon to take on Apple’s retail business. “I think you build one with your employees first.”

Employees who feel cared for are far more likely to serve customers well than those who are not. This is because employees are the most important element when it comes to improving productivity and increasing profitability.

In The Executive Checklist: A Guide for Setting Direction and Managing Change by James M. Kerr, the author provides a framework to reach enterprise-wide transformation.

All the expected items are in this checklist, but my focus is on the people side, which he discusses in two sections: Chapter 4 Engage Staff—The way to gain support and accelerate success, and Chapter 8 Transform Staff—The people part of enterprise-wide change.

Staff Engagement Checklist:

  • Decide to Engage – This is a continuous program and includes executive sponsorship, engagement strategy, communication framework and program administration.
  • Promote the New Culture – Outreach and promotion are essential with messaging that is consistent and on-point for both internal and external audiences.
  • Inspire Early Adopters – Reaching out and empowering those who clearly adopt the proposed changes will help engage other employees. This can encourage change from the bottom up as well as top down.
  • Plan for Generation Y – These workers can be more difficult to engage and not easily managed through conventional means. Consider ideas such as redefining job titles, enable a free agent market, promote location independence, and provide lifestyle benefits.
  • Include Inclusion – Embrace diversity to ensure everyone feels their ideas and input are welcome. Ensure that your management team and board of directors exemplify your commitment to this.
  • Tie Engagements to Measurement & Reward Programs – Incentivize the commitment people make to the engagement. Develop an awards program that can reward them for their efforts.

Employee engagement is vital to increasing trust and building better relationships that can increase productivity. It can inspire employees to bring their best selves to the workplace and result in more positive customer interactions.

Staff transformation is another area that can leverage the employee focus into organization-wide results.

Staff Transformation Checklist:

  • Shape the Program for Continuous Execution – This means training on skills and behaviors consistent with the vision and business strategy. It includes what Kerr calls the pillars of training, measurement and reward.
  • Place Emphasis on Softer Skills and Bigger Pictures – Enhancing communication, building trust, and encouraging teamwork can greatly influence cooperation and collaboration. A greater understanding of the vision and strategy can stir creativity and innovation.
  • Commit to Shared Training – The employee and employer should jointly take part in determining what training is needed as well as where and how it can be obtained. Both should have skin in the game for this training to be effective.
  • Weave Measurement into the Execution Environment – When performance metrics are produced as a byproduct of doing the work, the process can be adjusted in real time and not wait until after completion.
  • Measure for Desired Outcomes – Aligning performance measurement with desired objectives is more likely to bring about higher quality changes faster.
  • Reward Results – Reward and compensation packages should track directly with results and not merely effort made or hours invested.
  • Reimagine Incentives – Extrinsic nonmonetary rewards such as tickets to theatre or sporting events, gift cards, preferred parking spots, etc. go a long way to motivating your staff.
  • Build a Creative Team of Personnel – Encourage your staff to be more creative through cross-functional work teams, out-of-the-box thinking, and a visually stimulating workplace environment.

This staff transformation is all about a management structure that trains, measures and rewards people for delivering results. When you directly tie your people’s efforts to the outcomes desired, you can transform your staff.

These transformation efforts need to be deliberate, well planned and guided by the strategy of the organization.

“It is vital part of rejuvenating the current execution culture, while enabling the achievement of desired outcomes,” Kerr writes. “Organizations change as people change.”

When organizations put their employees ahead of their customers not just in words but in actions, this will translate into higher productivity and profitability. Customers will follow.