Traditional thinking would have you believe financial measurements are the key to determining the success of the organization! And if you are only in it for the money, then that may be true. Don’t get me wrong. Profit is a good thing and here’s WHY.
- It provides a method of financial compensation to the owners and employees.
- You have the ability to reinvest in the company for growth.
- It allows for financial contribution to society – making a difference in your community.
But you say, other than profitability, what and who else could we measure and why?
How about Employee Engagement?
It’s been proven that:
- High Employee Engagement firms have an ROI 19% higher than average
- As levels of employee satisfaction rise, so do customer satisfaction levels rise
- The average cost to the organization of having a disengaged employee is $16,000 per year! An engaged employee makes an average of $32,000 for the company.
And if that isn’t reason enough, then simply consider how much more rewarding it is to have employees who love what they do!
And then there’s Customer Satisfaction Levels. Excited customers improve your retention and drive referrals right to your door.
Don’t forget about your suppliers either. The more successful your relationships with your suppliers, the better product, pricing and service you can obtain for your customer.
Once you have determined what it is you want to measure and how don’t just sit on it! Analyze it and take action steps to improve! Remember the Japanese practice of Kaizen – continuous improvement. It’s a process and many small improvements over time will have a major impact on the success of the organization and the individuals involved.
For those of my followers who happen to be insurance brokers, there is an excellent Continuing Education Credit Course – “Customer Service for the Insurance Professional” that will provide you with some great measurement tools, as well as provide you with 4 CE Credit hours towards your general licence in Alberta.
Stay tuned for the final two Steps from Passion to Profit…..