Employee Opinion, Descartes, and Organizational Success
By Dana Jarvis, Manager of Project Services

How do you measure success?

It seems like an easy question. Common responses might include by growth, revenue, increased market share, and achievement of goals. No one would argue that these are important measures of success. However, there is something that is equally if not more critical than all of these measures and that is PEOPLE. 

People are the fuel that leverage organizational success. This notion is supported by the scientific research, noted below:

Norsworthy and Zabala have found that a 10% improvement in attitude leads to a 5% enhancement in productivity (Industrial and Labor Relations Review, 38(4), July 1985).

Maister (2001) in his book, How Management Can Drive Profitability, documents a cross-industry survey of over 5,000 workers, discovering that successful companies have employees with a positive attitude.

In a massive study by Harter, Schmidt, and Hayes (2002), Business-Unit-Level Relationship Between Employee Satisfaction, Employee Engagement, and Business Outcomes: A Meta-Analysis pro, results indicate that higher levels of employee engagement are linked to above average work group performance in areas like employee retention, customer loyalty, safety records, productivity, and profitability (Journal of Applied Psychology, 87, 2, 268-279).

In a study conducted at Sears, researchers found that a 5 point improvement in employee loyalty lead to a 1.3 point increase in customer loyalty, associated with a 0.5% revenue growth (Rucci, A., Kirn, S., and Quinn, R, 1998, The employee-customer-profit chain at Sears. Harvard Business Review, January - February, 1998).

People are the mechanism by which work is accomplished. So, it logically follows that there would be a link between people and organizational success. Think of a time when you were not happy or had a negative attitude toward work. Ask yourself these simple questions:

Why did you have a negative attitude toward work?

How did it make you feel?

Were there any specific elements that bothered you the most?

Do you believe that you were functioning at an optimal level?

What did you do to make things better?

Organizations that are interested in succeeding would do themselves a favor and walk in the shoes of their employees, asking these types of questions. Simply put, we all have an individual perspective on reality. If our perspective is negatively distorted, it will likely lead to behaviors that are negative in nature. Descartes said it best, "I think, therefore I am." Our outward activity is a direct reflection of our inward activity and vice versa. We can readily see outward activity, measured in observable behavior. However, the inward activity is a bit trickier. The only way to better understand inward activity it is to ask people questions in a systematic and carefully constructed manner. 

So, if people are critical to organizational success, then organizations that understand their people will be positioned for success. It makes sense. The more an organization is aware of the needs, motivations, and attitudes of their employees, the more they will be able to develop customized strategies that more fully integrate employees into the organizational fabric. Once integrated, it is likely that increases in productivity and profitability will follow. Here are some other benefits of developing employee feedback mechanisms (e.g. surveys that assess employee opinion, employee commitment, internal service quality, organizational culture, and 360-degree feedback):

Tool to conduct a self-examination - to identify positive areas as well as areas where improvements can be made

Quantitative measurement that enables benchmarking which is a yardstick or standard for comparison

Involves the people who know the organization best

Systematic process of problem identification, corrective-action planning, and response implementation

Tangible demonstration of the management's interest in listening

Timely summary or snapshot of important issues across the organization

Establishment of an upward communication process that fosters continuous value improvement

Opportunity for employees to express feelings they may have previously kept hidden, which may adversely impact organizational operations

Support and guidance for proactive management

Opportunity for all employees to shape the organization's response to challenging issues

Clarification of priorities for allocating financial and human capital

The underlying philosophy of feedback mechanisms boils down to three basic principals of Investigation, Involvement, and Insight. 

Investigation - taking a critical look at what's going on (diagnostic Persistence!)

Involvement - taking charge, being proactive, and working well with others (genuine Teamwork!)

Insight - learning lessons, creating/implementing strategies for success (innovating the Cutting Edge!)

Dana E. Jarvis specializes in market analysis, policy analysis, and strategic planning. He can be reached at djarvis@hillgroupinc.com or via phone at 412-343-9393.

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These materials have been prepared for educational and information purposes only. They are not consulting advice or opinions on any specific matters. Transmission of the information is not intended to create, and receipt does not constitute, a consultant-client relationship between The Hill Group, Inc. and any recipient of this material. Readers should not act upon this information without seeking professional advice.