Jack Welch's Three Metrics of Business Success, and Most Business Owners or CEOs Neglect One of Them
Wednesday, 05 October 2022
Employee engagement, customer satisfaction, and cash flow are the only three metrics that, in Jack Welch's words, "Inform you practically everything you need to know about your organization's total performance."
No business, no matter how big or small can succeed in the long run without motivated personnel who are more than willing to fight to accomplish business goals.
Unfortunately, based on my small samples of surveys I did back in mid-2020 to business owners, CEOs, and HR Leaders, only a tiny percentage of business organizations in Indonesia focus on creating a high level of employee engagement, which is the outcome of happiness, dedication, energy, and passion at work from their workforce.
Since people want to feel appreciated and recognized for their efforts, how they think about their daily work significantly influences engagement.
It has become more accurate than ever because many people work longer hours than the typical 40 hours per week and want to know that their employers value their time away from their families.
Employees that are engaged work harder to achieve the expected results because they feel a personal connection to the company, believe they are making a difference, and are developing personally and professionally.
In short, they have a higher sense of belonging to their employer.
A higher employee engagement score is a more significant predictor of talent retention, satisfaction with corporate culture and its branding, and positive perception of their leaders.
However, it became a problem when Jack Welch said three metrics determine business success. Still, most business owners or CEOs nowadays only focus on customer satisfaction and cash flow while neglecting employee engagement.
The cost of employee disengagement is more than $7,8 trillion in productivity loss, according to Gallup's State of The Global Workplace (2022).
Therefore, developing new work environments where people could be the best version of themselves, and allowing them to grow, both personally and professionally, to make a difference in the workplace is now the responsibility of the business owners and all leaders within the organization.
Forget about customer satisfaction when business owners or leaders neglect employee engagement. Only engaged employees will go above and beyond to satisfy clients or customers and accept personal accountability.
In other words, only engaged employees could produce outstanding customer experiences. They create "Wow!" moments that encourage people to buy more often, spend more money, return frequently, and happily promote to others.
You're mistaken when you think employee engagement is only a domain of the 'big boys' -- giant multinational companies, conglomerate subsidiaries, or state-owned enterprises.
I've helped several small and medium-sized companies increase employee engagement, even when almost all their team members don't have university diplomas.
Because increasing employee engagement is not about how highly educated your team members are but about how much they care about your organization, so they are willing to build an internal motivation to contribute to achieving the business goals.
And as I mentioned so many times before, the intention to change must come from the top leader, followed by permitting to get external assistance, full attention to accommodate the ongoing transformation, and also a personal commitment from the leader to make continuous improvements throughout the organization.
The video below is an excellent example of one of the SMEs that focuses on customer satisfaction, cash flow, and the importance of creating a positive workplace culture for higher employee engagement.