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Monday, October 03, 2005

Perception of Leadership Leads to Customer Retention

According to results of new ISR employee opinion study, U.S. companies that place an emphasis on nurturing strong leaders are reaping benefits through improved customer retention and an improved bottom line.

These findings support an earlier ISR study which revealed the relationship between improved business results and employee engagement. Employee engagement is defined as the extent to which employees believe in the values of a company, feel pride in working for the company, are motivated to go the extra mile and are committed.

The study of 41 companies revealed that high engagement companies realized a difference in operating margin and a difference in net profit margin versus low engagement companies, offering further proof that companies that are able to strengthen the engagement of their employees will realize a direct or indirect influence on business performance.

BOTTOMLINE: From Six Disciplines' Discipline II-D, Engage the Team, "...the ultimate core competency for any organization is realized when 'all individuals make strategy (execution) their everyday job."

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