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Survey: A Customer-Focused Workforce Leads to Higher Business Performance

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4/12/2010

What’s the key to creating a customer-focused organization? Here’s one of the answers from the trenches of a high-performance company: “A culture of accountability makes a good organization great and a great organization unstoppable.”

A new major study on customer focus conducted by the Institute for Corporate Productivity (i4cp), in conjunction with American Management Association (AMA), found that accountability that starts at the top is critical to customer focus. Sixty-seven percent of respondents from high-market-performing companies that are good at focusing on customers say their organizations hold at least one corporate officer responsible for the customer experience. By contrast, 3% of lower-market-performing firms that are poor in this area hold an officer accountable.

Companies that excel in overall performance do something else about customer focus differently, too. They make sure that a commitment to customer service doesn’t stop with senior leaders—or even with customer-facing employees. Leaders of top-notch firms create customer-focused cultures that suffuse their organizations, reaching from sales professionals with daily customer contact to production-line employees who may never have a conversation with a consumer, but whose efforts are just as vital to company success. Nearly seven out of 10 high-performing organizations say they work to build such a power culture. Lower performers? Fewer than half.

“Alignment of the corporate mission, vision and goals with customer satisfaction” is viewed as a critical practice, according to one study participant from a high-performing company. “Bringing these concepts to the employee level and creating secondary visions that align their actions with the overall vision has increased [our] focus on exceeding customer expectations.”

Four out of five respondents from high-performing companies say that financial growth is the key driving force behind their focus on customers. Certainly, i4cp research has shown that market focus—which revolves around a focus on customers—is one of the five core attributes of high market performance. So it makes sense that a corporate culture centered on customers is likely to yield positive bottom-line results. But how does an organization seeking better performance bring about that kind of culture shift?

Along with accountability, communication and training are among the most vital components in culture-building approaches, the study found. “We are more actively sharing competitive data with lower levels of the organization,” one business leader revealed. In addition, the company is “instilling a culture of innovation and customer obsession to drive behavior focused on the customer.”

Multiple respondents from high-performing companies described their firms’ educational efforts. Customer-focused training “is part of our onboarding and new employee orientation,” said one. Another cited “continuous training on customer care practices” and a third explained, “We run training on a different customer service topic every month.”

Companies that achieve high levels of performance in today’s volatile marketplace demonstrate not only a dedication to customer service but also a commitment to anticipating customer needs and being proactive in meeting those needs. This type of forward-thinking mindset is one of the hallmarks of a culture that is truly customer focused.

About the Institute for Corporate Productivity ( i4cp)

The Institute for Corporate Productivity is the world's largest vendor-free network of corporations focused on building and sustaining highly productive, high-performance organizations. Through a combination of peer networking, human capital research, tools and technology, we enable high performance by:

 

· Revealing what high-performance organizations are doing differently
· Identifying best and next practices for all levels of management
· Providing the resources to show how workforce improvements have bottom-line impact

 

With more than 40 years of experience and the industry's largest team of human capital analysts, i4cp is the definitive destination for organizations seeking innovative ways to improve workforce productivity. For more information, visit http://www.i4cp.com/

 

About AMA

American Management Association (www.amanet.org) is a world leader in talent development, advancing the skills of individuals to drive business success. AMA’s approach to improving performance combines experiential learning—learning through doing—with opportunities for ongoing professional growth at every step of one’s career journey. AMA supports the goals of individuals and organizations through a complete range of products and services, including classroom and live online seminars, webcasts, webinars, podcasts, conferences, corporate and government solutions, business books and research. Organizations worldwide, including the majority of the Fortune 500, turn to AMA as their trusted partner in professional development and draw upon its experience to enhance skills, abilities and knowledge with noticeable results from day one.