If your business is selling retail items, you no doubt have seen the figures that create links between customer satisfaction and loyalty.

But what about employee loyalty? What about the measurements you use to test how loyal your staff are to your company? This interesting quote by Frederick Reichheld compares the relationship between employee loyalty and customer loyalty…

“We found that there was a cause-and-effect relationship between the two; that it was impossible to maintain a loyal customer base without a base of loyal employees; and that the best employees prefer to work for companies that deliver the kind of superior value that builds customer loyalty… building loyalty has in fact become the acid test of leadership.”

Read that last sentence again…he claims that the acid test of leadership is building the loyalty of your staff to your company. Food for thought, eh?

When you think that a “totally satisfied” customer contributes 2.6 times as much revenue as a “somewhat satisfied” customer, it must be worth your while identifying not only what makes people loyal to your business, but also what you can do to build loyalty within your team.

So, how do you keep employees loyal? Real improvements in customer service start with providing superior service and support to the employees themselves. It’s a win/win situation. Treat your employees like royalty, and they’ll treat your customers the same. But treat your employees like dirt, and you can imagine how that message will be passed on to the customer base.

Here are some examples of the research showing the connection between internal and external service:

• The best predictor of customer satisfaction among workplace attributes is what Vanderbilt professor Roland Rust calls service climate: “those attributes of overall workplace climate that characterise how well equipped employees are to deliver customer service, such as the adequacy of resources and equipment and job skills development.”

• For every one percent increase in internal service climate there is a two percent increase in revenue.

• In cardiac care units where nurses’ moods were depressed, patient death rates were four times higher than in comparable units.

• Cornell’s School of Hotel Administration found that employees’ emotional commitment and sense of identity with the company is a key factor in providing excellent service.

• A study of call-centres found that “satisfied call-centre employees make for satisfied and loyal customers… customers decide whether or not to make future purchasing decisions with a company, or to recommend its services to others, as a direct result of their experiences with a call-centre rep… key indicators of call-center representative satisfaction include relationships with co-workers and management, job challenges, and frequency of development or training opportunities… sense of pride with their job and within the overall company.”

Interesting findings. And it all goes to show that a company’s external customer service is only as strong as the company’s internal leadership, and the culture of commitment that this leadership creates. It really is all up to you as leader in retail environments. If you want loyal customers, make sure you have loyal employees.

Thanks again

Sean

Sean McPheat
Managing Director
MTD Management Course

Click below for a:
FREE email course “Improve Your Management Skills”

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An interesting conversation on one of recent management courses revolved around the dilemma of a manager favouring one employee over another in their department. The manager on the course was discussing the impact this was having on another department within his company.

He mentioned that, even though it may have seemed a trivial matter to the manager concerned, the rest of his team members were taking it very seriously and much wailing and gnashing of teeth was surrounding the whole department.

The manager was obviously unaware of the perception that he was giving to the rest of the team by his favouring one team member over the others.

This is a subtle issue that can creep up on many managers, as we are only human, and we often have preferences for the way one team member works, as it complements our values and ways of working. But it can also affect the whole culture of the department.

Resentment can build quickly when favouritism is suspected. Resentment quickly becomes bitterness, and bitterness leads to all sorts of behaviour which can create problems within the department. Productivity can be affected, bitter infighting on a subtle level, divisions between the favoured employee and their team members, absenteeism and higher staff turnover.

So, Should all team members be treated equally?

Don’t get me wrong…I believe good performance should be rewarded. And a single management style won’t work with everyone. Some employees need extra attention to reach their potential, while others are more intrinsically motivated and can achieve great things without much outside influence. What we are talking about here is when an employee receives extra benefits or special treatment resulting from a ‘special relationship’ with their boss, rather than because of their observed and accepted excellent job performance.

And it’s the perception of the favourite employee that causes the damage, and this is just as damaging as the real thing. Don’t think that just because what others are saying about you can be defended by fobbing it off as jealousy or backbiting; perception is reality to team members, so how can you ensure this situation doesn’t raise its head in your department?

Here are some ideas that will keep perceptions going the right way:

1. With everything you do, make sure that rewards, promotions and perks can be measured by objective performance measurements
2.    Although you can’t treat people exactly the same, make sure everyone is treated fairly.
3.    Be open and objective in your communication style – this will build trust within the team
4.    Build a team environment that allows a culture of trust to develop, enabling team members to approach you with any concerns they may have
5.    Be aware of any actions you might be taking that could be misinterpreted as favouring one employee over another, and let team members know the reasons why that employee is being rewarded
6.    Create clear and objective measurements that all team members can recognise as achievable and fair, so all have the same possibilities of achievement.

By carrying out these ideas, you minimise the risks of the perception of favouritism being an issue within the department

Thanks again,
Sean

Sean McPheat
Managing Director
MTD Management Training

Click below for a:
FREE email course “Improve Your Management Skills”

As you grow as a manager you’ll quickly discover that there are not only different levels of management but different levels of authority as well. Several individuals on the same level of management (middle management, for example) may have similar job duties but one may have a higher level of authority than the others.

The three main authority types are as follows:

• Line authority
• Staff authority
• Functional authority

Individuals with line authority are managers who have the ability to supervise employees or, in some cases, other managers. They give direct orders, evaluation performances, reprimand mistakes, and reward positive behaviours.

Those with staff authority are seen as advisors. They don’t necessarily have direct control over their subordinates but will help the managers beneath them to make decisions. They can and do have authority over their subordinates and can exercise that authority if the need arises. For the most part he will simply offer advice or assistance as it is needed in between taking care of his own day to day tasks.

Functional authority is often exercised by managers with staff authority as well. Functional authority gives individuals the ability to make decisions regarding the way a department will be run. They can create, manipulate, or change procedures in order to complete a project. Functional authority applies to the department the manager works in and no other. The marketing manager, for example, can not tell the accounting department that they must change their procedures.

What type of authority do you currently have in your own management position? Are you exercising your authority or are you depending on others because you are unsure of your own position?

Thanks again,

Sean

Sean McPheat
Managing Director
MTD Management Training

Click below for a:
Free email course “Improve your Management Skills”

We talk all the time about what you need to do in order to ensure your organisation stays on the path to success. What we don’t usually do, however, is focus on the reasons organisations fail.

In my experience there are four main reasons an organisation will fold. While it may seem to you, as a lower or middle level manager, that you are responsible for your department ultimately succeeding (and that your department contributes to the overall success of the organisation) there are some critical components you may not have considered.

The main 4 reasons for organisational failure are:

• System and structural failures – the systems you have in place to get the job done are flawed, at best.
• Financial management failure – the accounting department does not properly track expenses and departments are overspending, thus cutting into the organisation’s profit margin.
• Customer and marketing failure – you have a poor marketing plan and you have no idea who your niche client base really is.
• Failure at the top – upper management isn’t making educated decisions (or members of upper management are simply making very bad decisions despite the resources they have available).

These aren’t all things you can necessarily control but they are all things you can be acutely aware of as you progress throughout your day. Take a look at your organisation as it stands now. Are you set up for failure or success?

Thanks again,
Sean

Sean McPheat
Managing Director
MTD Management Training Courses

Click below for a:
Free email course “Improve your Management Skills”

Success is about much more than money. Success is about having an organisation that people love and want to work with – and want to work for. A successful organisation is one in which employees are happy, goals are achieved, and the future is bright.

There are four main factors that indicate the success of an organisation. They include:

• Happiness – Here you have to consider whether or not everyone is happy within the organisation. Are your employees happy to come to work every day? Do your customers enjoy working with your employees?
• Achievement – Has your organisation found solutions to the real problems it aims to solve? Have you created plans to achieve those goals?
• Significance – Do people find your products and services valuable? Do they remember you when they need the type of product or service you offer?
• Legacy – Is everyone who works for your organisation invested in continuing your high levels of innovation, customer service, and high quality development?

Running a successful organisation doesn’t need to be a difficult task. The key is making sure everyone is happy with your products and the way they are delivered. This doesn’t mean compromising to a fault (allowing employees and customers to dictate everything you do) but it does mean allowing the use of innovative ideas and thought processes to find the most effective ways to solve the problems at hand.

Are you part of a truly successful organisation? Are you merely profiting, or are you completely happy with your work and your prospects for the future?

Thanks again,

Sean

Sean McPheat
Managing Director
MTD Management Training Course

Click below for a:
FREE email course “Improve Your Management Skills”