“The most important determinant of profit and growth are customer loyalty and satisfaction, factors that directly relate to employee satisfaction and the loyalty and productivity that go with it. Companies that focus on the way they hire, train and treat employees are more profitable,” according to Harvard Professor Leonard Schlesinger, His research found that these organizations experienced:
• 50% increases in service quality and customer satisfaction
• Growth rates of 60% greater than competitors
• Return on sales of 200% greater than their competitors
• Return on assets 150% greater than their competitors
Good-Hearted Leadership, as I’ve come to define people-oriented business traits, provides the intangible that generates extraordinary tangible results. The leaders of high performing companies that Schelsinger studied valued the following characteristics that were different from traditional management models.
• Encouraging use of language using words that encouraged, dignified and respected their employees.
• More time listening than telling Listened to everyone in the organization by going to the front line or requiring other leaders to spend time on the frontline.
• Clarification of values. Defined shaped and used core values internally and demonstrated what they believed in what they said and did on the job.
• Propagation of values. The values that were the means to an end result for the business vision and mission. Ultimately it leads to the companies’ success in the marketplace.
• Empowered their employees with the authority and responsibility to satisfy the customer by giving them the latitude to do their job effectively
• Assurance of dignity Their power to lead came from the “dignity” they fostered for all the people around them.
By Ray Anderson