Improving Business Performance

It is generally accepted that changes in employee engagement drive business change. Since the early 1990s service-profit chain models have aimed to capture the impact of specific employee perceptions on organisational performance. Intuitively these are built around the impact that satisfied, committed or engaged employees have on customers, their satisfaction and in turn a subsequent relationship with the organisation’s business performance.

We have worked with many clients in this field, enabling us to develop a business model that is proven in practice. The ORC business model builds on this simple relationship between employee perceptions and customer satisfaction. In particular we have discovered a clear relationship between employee engagement and efficiency, leading to improved business performance without significant impact on customers.

As well as employee engagement, our model can be expanded to include HR metrics such as turnover, sickness and profile of part-time workers.

The value in building a model such as this is that one is able to identify the business impact from potential changes in individual attributes. If the cost of change can be assessed then return on investment from actions can be calculated.