Can a company really “measure its heart”?
As more human leaders, we instinctively know that there’s a strong correlation between a caring, connected and happy team and successful financial performance, but we also know that finding a way to measure and confirm that correlation is an essential part of sustaining (and even tightening) it over the long haul.
In my quest for those measurements, I’ve found 3 in particular that not only provide insights as to overall company health, but also put a “virtual stethoscope” over its heart.
The first is the customer Net Promoter Score. I’ve written a lot about this metric and its strong and proven correlation to profit, but the side benefit is that the score functions as quick answers to three critical questions:
“Do our customers love us?”
“Do our customers know we care about them?“, and
“Do our employees really care about the customers?”
The second is what I call the Customer Pain Number. Put simply, this is a count of all the things that have gone wrong, and causes pain for a customer. When I was in the cable TV business we came up with what we called a “customer fault rate”, which tallied every time a customer called in (or came to our retail locations) with a problem – of any kind (I graded on a pretty high curve).
Exactly how this number is derived will differ from business to business – for a retail business, for example, product returns, exchanges and general complaints about service and quality would be a prime candidates for counting – but it’s well worth the time to experiment with different formulas until you find one that fits.
Where does the heart come in here? It once again hits the “do we care about them?” button. And certainly, this metric can serve as a key operational measurement that can reduce expenses and improve profit.
The third metric is the most important to the more human leader, and it’s the employee Net Promoter Score. That is, we ask this question to our teammates: “On a scale of 0-10, how likely would you be to recommend _____ company as an employer to a friend or relative?”. That answer measures SO much of the heart of the company, because it gives us a clear indication of the well-being of the team. Are they happy? Do they know we care?
I call this metric “my higher cause bottom line”, because it tells me how I’m doing against my overarching goal of employee happiness and fulfillment. And I can tell you from my experience that it indeed also correlates to financial performance.
Three indicators of a company’s health, that also connect to the company’s heart. Measure them, lead with them, grow with them, teach with them, and put YOUR heart into it, and you’ll be headed on a direct path to the More Human trifecta – A great company, a happy team, and a fulfilled you.
Go for it, and lead well!