View All Articles

Employee Engagement: Key to Your Company’s Profitability – A Case Study

Chris_web2

Christopher Anbari

By Christopher Anbari, President / CEO, Result Global

“Employee disengagement costs American business $350 billion annually.” Gallup Organization

Repeated studies have shown that improving employee engagement enables companies to be more profitable.  In this case, Result Global, a leading consulting firm which specializes in solving critical problems for companies with poor employee engagement, was brought into a well-established computer products company located in Michigan.  This company produces scanners, printers, Auto ID and labeling systems. The company has 350 full-time employees.

Challenges:                The company faced multiple challenges including decreasing sales from $64 million to $48 million over 4 years, with no expectation of improvement for the near future.  There were complex inefficiencies in sales, pricing problems caused by high costs of manufacturing and other services, plus a dysfunctional management team, made worse by constant disagreement among the executive team about how to address short and long-term business challenges.

Actions: To reveal and address the causes of the problems, we used STAR™, our proprietary assessment program with smart logic. It provides both business and employee engagement analysis and, most importantly, a strategy to address the identified areas needing improvement.

Using STAR™, we assessed employees, management and leadership groups to define the root causes of the problems in the company.  First, we performed an on-line survey of all employees on an anonymous basis to ensure confidentiality and to get the best input from everyone.

After analysis of the assessments, Result Global delivered a detailed, highly specific Business Strategy Report (by location, group, and employee type) to define immediate initiatives for operations and human resources.  We worked with senior staff and management to develop key performance measures and strategic indicators and to select a group of change leaders from within the company.  We also prepared a process for engaging employees at all levels of the organization and developed indicators to signal improvements in operational and HR performance.

Strategic Objectives: The recommendations included:

  • Sales improvements:  Adjusted hourly billing rates to be equal to their regional competitors, expanded billing per customer, increased weekly billing per technician, and initiated premium emergency service billing rates and policies, standard customer equipment safety inspections, and planned preventive maintenance service of client equipment service, initiated premium emergency service and billing.
  • Cost of services: Instituted strategic M/P assignment planning and distribution, Annual Just-in-time purchase planning, inventory turnover management, replaced their aged, and high fuel, high maintenance transportation fleets, with smaller, fuel efficient fleets.
  • Management accountability: Introduced new qualitative, quantitative performance scorecards for key leadership team and new KPR (Key Performance Requirements) for business unit’s leaders. Setup monthly progress reporting and facilitated performance GAP session, which initiated transparency and accountability.
  • Recognizing employee contributions: created EVAP(Economic Value-Added Performance based) incentives for field, technicians and support personnel, included commission for add-on service, tied to expanded sales, gross revenue and customer service.
  • Repositioning the company in its marketplace: Introduced world- class verifiable customer service, efficient and on time customer responses. Improved field dress code, personal hygiene, to improve image in community and position in the market.

Results: Within 8 months of implementation, Client’s position in the market was strengthened; in addition Client realized a net gain of 25% in sales, improved customer satisfaction, 15% reduction in the cost of services. These improvements resulted in sustainable additional annual net earnings (EBITDA) of $1,280,000.

Our unique delivery of the processes with progress audits every 90 days assured the company that the improved results trajectory would continue into the future.  As a final check, our improvement results were verified by the company’s own CPA Firm.

If you are interested in learning more about how you can enhance your company’s profitability through the use of these assessment tools and recommendations please click here.