In a Measurement-Managed Organization, employee surveys have a clear purpose: to measure the people drivers essential to the strategy, and to enable managers and employees at all levels to take action on those drivers.
Survey findings are also used to refine the business model, through statistical linkage analysis. If the business model assumes that employee retention drives customer retention, which drives profit, linkage can show whether this is the case, and how strong the relationship is. That helps to drive home the point among managers and employees. In addition, driver analysis can isolate the key drivers of (for example) employee and customer retention, so people can take action on the issues which have the most strategic importance.
| Strategy-Aligned Employee Surveys | Traditional Employee Surveys |
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Analysis is a critical element of Strategic Assessment. At this step in the process, Metrus:
- Performs linkage analyses to identify the relationships between the modules on your new custom-tailored questionnaire and your performance in key areas such as customer satisfaction, productivity, employee retention, and financial performance. These analyses will identify the people issues that have the greatest impact on your performance. The result is a People Performance Index that predicts performance in your organization.
- Calculates the gain you can expect from your investment in people management by telling you how much improvement you can realize in profitability, customer satisfaction, or other outcomes from targeted levels of improvement on people measures.
- Compares the performance of your organization with industry leaders using Metrus Group's data bases and benchmarking capabilities. These comparisons will help you set targets by giving you an indication of what the leaders have achieved.
Sample Driver Analysis: Predicting Customer Retention and Financial Performance
In this client's case, a 2 percentage point increase in customer retention will increase net income by $1.5 million annually. All other things being equal, a 10 percentage point increase in customer focus will yield a 2 percentage point increase in customer retention. A 10 percentage point increase in customer focus can be achieved by 10 percentage point increases in ratings of leadership and values.
Metrus provides easy-to-read survey reports to decision makers that display the findings for the business and their individual units, and provide a road map for identifying key strengths and performance gaps.
An in-person presentation to senior management that identifies the key drivers of strengths and gaps on key people issues, and implications for action. This presentation closes the loop from measurement back to strategy, and sets the stage for implementation.
With Metrus guidance, one client installed a set of strategic performance measures and began to track improvement with surveys. The results were dramatic. In just over a year, the company:
- Increased customer retention by more than 50%
- Achieved 15% revenue growth in a zero-growth industry
- Eliminated over 20% of payroll time in low value activities
- Reduced cycle time by 15-25% in 5-6 key process areas
- Realized a 20% increase in clients' willingness to recommend them to others
- Saw dramatic improvements on its strategic employee survey, including:
- Clarity of performance goals (+51%)
- Effective implementation of new ideas (+33%)
- Understanding how individual performance contributes to business success (+32%)
- Teamwork and cooperation (+27%)
- Understanding business strategy (+21%)
- Confidence in senior leadership (+19%)
Click here to contact us regarding strategy-aligned employee surveys, or call Jerry Seibert at (908) 231-1900 for more details.
Learn more about the Metrus Survey Suite
Click here for articles on strategic surveys; or click here for our premium content, an annotated strategic survey workshop by Brian Morgan, Metrus Group's Director of Assessment.