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Why focus on customers and employees?...
“Only your people can deliver sustainable advantage” (Michael Porter)
“80% of business re-engineering projects failed due to people issues” (Michael Porter)
It’s a well know fact that over 60% of mergers or acquisitions do not deliver promises, often due to ‘people’ integration issues (KPMG M&A global research project).
In the USA, intangible assets e.g. staff effectiveness, customer relationships, management quality etc. are driving 2/3 of company stock values.
Employee satisfaction leads customer satisfaction and hence predicts profit and growth (Sears case study and others).
BUT: only 17% of UK employees come to work engaged and determined to go the extra mile.
Unmotivated staff cost UK £48 billion pa in lost productivity.
Many studies agree that engaged or ‘loyal+’ customers are more profitable, often by 25 - 100% (Gartner, Gallop & others).
BUT: in the UK only 21% of customers are like this, over half are ‘Mercenaries’
(Gallop)
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