Who Is More Important To A Company: Its Customers Or

Its Employees?
In early 1994, Continental Airlines' culture was toxic. Employee moral was virtually dead and
the company went through ten CEOs in ten years’ time. The low morale translated into being
ranked last in every measurable airline performance category, and the airline was on the verge
of its third bankruptcy. Then Gordon took over as President in October of 1994. (Gordon
changed the culture of Continental by changing the culture starting at the top, the Executive
Floor at the Corporate Headquarters.

With a new “open door” policy, he eliminated company-restricted access to the 20th floor, the
Executive Floor, that could only be accessed by Senior Vice Presidents with a key card.
Security had patrolled the floor to remove any employee who was not a VP. That stopped, and
he removed key-card-only access and invited any employee to access the floor. He fired 39
senior VPs who had trouble adjusting to this new “employees first” mantra. By looking inside,
at the core of Continental’s culture, and starting with themselves, he transformed the airline
from ranking dead last in every customer service ranking to winning more J.D. Powers and
Associates awards for Customer Service than any other airline in the world. The stock price
rose from $2 a share to over $50 a share and the company was ranked as one of the top 100
companies to work for by Fortune.

Yes, there are unhappy employees at companies that generate profits, but this will always be a
short-term gain. If employees are not putting their hearts into their work, service can’t help but
suffer, and innovation is repressed, killing any chance for the product to evolve and satisfy the
customer’s growing needs. This is why every business owner should look at themselves and
ask, “Are my employees feeling good about where they are?” Managers should be asking
themselves the same question. Are your employees happy? Change must come from the inside
if change is to take place and morale is to climb. This is true with all of us. Are you performing
at your best when you are stressed, down and out, or feeling blue inside? Chances are the
answer is no. Controlling how an employee feels is in direct correlation to how happy a
customer feels about their experience and whether they return to you or go to a competitor.
So which is the answer? Your customers are your lifeline. They pay the bills, salaries, and
provide the resource needed for infrastructure, like expansion. Happy employees put their hearts
into their work and can produce innovative ideas, products, and services that benefit both
customer and company. With unhappy customers and unhappy employees or with happy
customers and happy employees, either way you slice it, the answer appears to derive from a
cyclical process. How can we say which is more important? Each has their own unique qualities
that are important, no, critical to the big picture and success or failure of the company.