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Manage your Human Sigma

The article briefs “it takes months to find a customer but seconds to lose one” Six sigma
processes are data driven, rational, and analytic. Widespread use of six sigma and TQM
methodologies has resulted in vastly improved product quality over the past two decades.
Inspired by these improvements, businesses have tried to apply Sig Sigma principles in both
sales and service settings. But nothing human is ever that simple, people may link that their
behavior is purely rational, but it rarely is. Twenty years of research in two very different fields-
neuroscience and behavior economics- has established quite clearly that people base their
decisions on a complicated mixture of emotion and reason. Indeed, recent work suggests that
emotions may play a larger role that analysis.
Customer Engagement

Six Sigma approach to measuring and managing the quality of the employee-customer
interaction need to take customers emotions into account.
Measures of customer engagement;
1. The first dimension it looks at is confidence
2. The second is integrity
3. The next element is pride
4. Th fourth dimension is passion
Fully engaged customers deliver a 23% premium over the average customer in terms of share
of wallet, profitability, revenue and relationship growth.
Employee Engagement
Every interaction an employee has with a customer represents an opportunity to build that
customers emotional connection or to diminish it.
There are three types of employees.
1. Engaged employees- Are those (29%) employees who work with passion and feel a
profound connection to their company. they drive innovation and move the organization
forward.
2. Not-Engaged - Are those (56%) employees who are essentially “checked out”. They are
sleep walking through their workday, putting time—but not energy or passion into their
work.
3. Actively Disengaged- Are those (15%) employees who are not just unhappy at work; they
are busy acting out their unhappiness. Every day, these workers undermine what their
engaged coworkers accomplish.
Emotions Frame the Encounter
Performance metrics that acknowledge the importance of emotional engagement on the part
of both customers and employees provide much links to desired financial and operational
outcomes. But deciding which metrics to use is just the first step toward effective
management of the employee-customer encounter. Deciding how to deploy them is equally
important. Unfortunately, in many companies, metrics designed with the right intention are
often deployed in the wrong ways.
The Encounter must be Measured Locally
For sales and service organizations unmanaged variability in the quality of the customer
experience represents a significant threat to the enterprise sustainability, because customers
experience variation not averages. The only way to improve local performance is to provide
feedback at the level where the variability originates. When the employees-customer
encounter is assessed at the level of the local work group, executives can learn a lot of
organizations that aspire to high performance.
The Link to Financial Vitality
Employee Attitudes Customer Attitudes Financial Performance
Human sigma Employee + Customer Engagement = single measurement.
A survey was conducted, they identified ten top performing stores. There assumption was
wrong regarding their survey. Only one store appeared in top list following customer and
employee engagement. $32 million in additional annual profits for the entire chain.
Two levels are need for improvement

1. Those who engage employees without engaging customers.


2. Those who engage customers without engaging employees.

How to Get There


To manage and reduce variability at the local level, here are the three quick points;
1. Responsibility for human sigma must be centralized.
2. Local manager is important factor in local group performance
3. Some companies need overhaul their HR practices

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