This blog is about improving the relationship between organizations and the people who work for them. And, it’s dedicated to the millions of people around the world who go to work every day wanting to do a great job.
Making the case for employees first
When Richard Branson said he would run Virgin from the inside out – employees first, customers next and then shareholders – his logic was clear, compelling and pretty radical. His logic: “If your employees are happy, they will do a better job. If they do a better job, the customers will be happy, and thus business will be good and the shareholders will be rewarded.”
Over the years, Virgin’s success would seem to prove his point. And yet, I continue to be astonished by the number of CEOs who haven’t got it.
This is especially surprising given that in the 20 years from 1975 to 2005 the big drivers of company value have shifted from tangible [73%] to intangible [80%] assets. [Thanks to David Martin, Interbrand]
And what are intangible assets? “They are non-monetary assets that cannot be seen, touched or physically measured, which are created through time and/or effort and that are identifiable as a separate asset.” According to Arthur D. Little, Inc. “reputation is critical to corporate success, topping the intangible asset list of most CEOs.”
What builds reputation? A consistent experience. Whether you’re an employee, a customer or an investor. Whether you have a direct relationship with the organization or not.
Who builds reputation? The people who design, build and/or deliver your products and services and serve your customers. The people who get the work done every day. Your employees.
So, I’m curious, when you sit down with your senior executive where do your employees and health of that relationship figure in the conversation?