Thursday 8 February 2018

What Is More Important: Employee Experience or Customer Experience


Organizations are faced with an eternal dilemma:

(1)What is more important – Customer experience or Employee experience?

(2)Is there a cause- effect relationship between the two; will one – better employee experience – lead to the other – better customer experience? Is Vineet Nayyar the former head honcho of HCL right when he says 'Employees First, Customers Second"? or

(3)Should both be pursued simultaneously?

Experience shows that happier employees make an extra effort to boost customer experience; employees of Taj Mumbai risking their lives, in 2008 - when attacked by Kasab & gang - for the sake of their embattled patrons has become an international case study. Generally, when an employee loves his organization he would be keen to make his customers too have similar feelings; the trick therefore, is to make an employee fall in love with the organization vide recognition & leave him with a lasting impression that his company will take care of him & if possible his family too in case of any unexpected eventuality. The Japanese mastery of the art of lifetime employment & loyalty - without dishing out huge compensations like the Americans - is brought out in minutiae by Akio Morita in “Made in Japan”.

Unfortunately, our US driven business school MBA programs tutor us on "Customer First" & train us to see employees as "cost" elements alone, leading to the current mess. During a downturn managements sack employees to save costs even while there are other cost elements that are in greater need for pruning. Many a times despite a flawed strategy executed by top management being the prime reason for the mess, they successfully retain their positions even while the frontline is served with pink slips. Paradoxically, the top management in US banks during the 2008 financial crisis retained their position & bonuses while others down the ranks got sacked enhancing employee angst. Would it not be better to disclose the firm’s position to the employees – the “Internal customers” - & call for a proportionate cut in the salaries of all personnel to achieve “cost” aims rather than use the knife on select employees?

Employee loyalty to organizations, today, is fickle; employees jump ship with abandon when the going is right & get sacked with impunity when the penny drops. If companies carry their employees during a business downturn after appraising them, will it not enhance employee loyalty? Likewise, is it not prudish on the part of employees to shift to competition, even without serving their notice period in full, when offered higher compensation but complain, gherao management – like the Tiny Owl food delivery start up case -or seek govt. intervention – like the IT employees case - when sacked? Loyalty begets loyalty, it is prudent, therefore, that commitment gets enhanced on both sides.
 
Loyalty to the organization can be further enhanced if the employee’s family loves the organization. How to achieve that in an era where better halves complain of no “work life” balance ruining their family lives’ is a ponderable question. Family get togethers’ inculcate a feeling of shared solidarity, eve’s organizations – like in HUL - helping a new recruit’s family/transferred family settle down is helpful in fostering goodwill. Organizations stepping in to take care of health & education needs of the family impart greater bonding.

There is a persisting myth that employees leave bosses & not organizations; it is not necessarily completely true. If the appraisal process is biased, & employee not treated without empathy by the immediate superior, the boss is definitely to blame; but if organization culture promotes ruthlessness & politicking then blaming the boss alone is wrong. The "Bell curve" & force fit driven as part of organization strategy & normalization thereof has annoyed many. IBM, Accenture & TCS have moved away from the “Bell curve” system & replaced it with a process of continuous feedback – rather than an annual appraisal - & employees are now appraised on individual performance; perhaps, real time feedback is the way forward which clarifies expectations - unlike an annual shocker of a process currently underway – ensuring a win–win for both sides. The bottom 10% shall either quit early or have sufficient time to improve making the process of separation – if inevitable - sans heartache; the employees leaving the organization should be made to depart with a feeling that the organization was not unjust in its dealings.  Thus the onus is on top management to build the appropriate culture & prod all "bosses" to become its willing ambassadors. Wonderful customer experience is then only waiting to happen.