Engaged employees create satisfied customers and vice versa. When employees feel their work has meaning and purpose, they are driven to go above and beyond to make customers’ lives better. Then, when customers express that they are satisfied, employees become even more engaged. It’s a virtuous cycle and it positively impacts every part of your business. This is why it’s so important for a company to have a system in place to regularly measure both parts of the equation.

The effort from an engaged employee can take a business from average to great (and the absence of that effort can take it from below average to out of business). Engaged employees think and act like owners; they are emotionally committed to meeting organizational goals. They understand the impact they have on the company’s success. They take care of equipment and supplies as if they were their own. They are deeply invested in the customer’s happiness and success because they understand that these things are directly linked to their own future. All of this leads to better word of mouth, more customers, and better job security and wages.

Ultimately, employee engagement means better financial performance, greater customer satisfaction, higher quality, fewer absences and turnover, better safety, and easier talent recruitment. (See Chapter 19 for tips on creating engaged employees.)

My first experience with the link between employee engagement and customer satisfaction was back in the 1990s. I was the senior vice president of Holy Cross Hospital in Chicago and had been given the assignment to raise patient (customer) satisfaction. When I first received the assignment, I did what I thought would make the difference. After a few months, it was obvious as the measured results came in, my way was not working. If I could not achieve the results my boss expected, my career was not going to go well.

Out of desperation, I turned to Southwest Airlines. Midway Airport, which had an educational center in which employees learned the “Southwest way,” was located nearby.

Keep in mind that this was all happening at a time when a big change was taking place. Customers were getting more vocal about what they wanted and needed. Their expectations were higher than before. Southwest Airlines’ cofounder and CEO Herb Kelleher—who passed away during the writing of this book—was one of the first people to figure out that simply getting people from point A to point B was no longer enough. The experience itself mattered, too.

This echoed what was going on in healthcare. It was becoming obvious that clinical quality, which is where hospitals focus a lot of their time, was just expected and had become the price of entry. Now hospitals also had to get a lot of other things right as well, including the patient experience.

When I got to the airport, I introduced myself and explained my role at the hospital and the fact that we just could not move our customer satisfaction results. I also shared that this was because we were big, we had lots of government rules to follow, we were in a tough neighborhood, we were different from Southwest because we were in healthcare, and so on. Later I learned that I had fallen into the trap of terminal uniqueness—rationalizing how different one is as an excuse not to change.

The bottom line is that Southwest held up a mirror in which I saw myself more clearly. It started with their listening and then asking me questions. They asked me to go over with them what I was doing. I explained that I shared with the employees how important patient satisfaction is, that it is not rocket science, that these are things we learned in kindergarten, and to just treat people like they want to be treated. They asked me how that was working. I said it was not working well, and, in fact, our results had gotten worse rather than better.

In a very nice way, they said, “We think you have things in the wrong order.” I asked, “What do you mean?” They replied that customer satisfaction starts with employee satisfaction. Then they asked me some questions. How do the employees like working at Holy Cross Hospital? Do they feel they have a good supervisor? Do they have the tools, equipment, and systems they need to do a good job? Do they feel recognized for good performance? Do they receive training? How much training does management receive? How are you measuring employee satisfaction?

Very quickly I had entered the arena of conscious incompetence, meaning I was suddenly recognizing my shortcomings. Even though I had somehow been promoted to a top leadership role, it was evident to me that I had much to learn. Keep in mind that prior to coming to Chicago, I had worked in public education and at the only hospital in the city where I lived. At the time, if you wanted to teach in the city or work in healthcare, you had only one choice. We also did not measure taxpayer satisfaction or employee satisfaction. We just assumed it was fine because some people stayed there a long time. In this case, I realized how wrong I had been!

My to-do list when I left that meeting was to measure employee satisfaction, find out what was working and why, identify areas for improvement, and create a development program in which all leaders could acquire the skills needed to be successful. I needed to create conditions where if a leader could not create a great place for the staff to work, they would not be able to stay. The Southwest people also said that this training must be mandatory and that all the other executives and I must be front and center at all sessions. They then offered to let us use their training facilities for these sessions so we could focus on these issues with fewer distractions.

This conversation and the actions taken afterward changed my life.

It was definitely a scary time. I was asked to do things like turn the organizational chart upside down. My job was to make sure everyone who led people had the skills to do so, and it started with me. Southwest shared that when I saw employees, I needed to make sure I asked them whether they had what they needed to do their job that day. In fact, it seemed to me that I was working for the employees rather than having them work for me. “Exactly!” the people at Southwest said. “You’re starting to catch on.”

I got to meet with Kevin and Jackie Freiberg while they were writing their book Nuts! Southwest Airlines’ Crazy Recipe for Business and Personal Success. They even came to Holy Cross to see how we were doing. And it turned out that we did well once we put people first—starting with those closest to the customer.

Soon a magazine came to do a story on us. They interviewed several employees. They asked: What is different? Not too long ago, Holy Cross was not doing well financially. You are still in the same area, and in same facility, so what has changed? Tom Badell, a housekeeper, said, “They used to focus on money and lost it, and now they focus on people and we make it.” Tom said it best.

We also learned that when you get the “people” part right, the other results will happen: better quality, better service, better efficiency, and, yes, much better financial results.

I learned so much in those years. For example, as mentioned earlier, I learned about the dangers of terminal uniqueness, why it’s crucial to measure how employees (leaders included) feel about their work, supervisor, and organization, and why spending resources on leadership training is not only a “must have,” but a reflection of organizational values. I also learned that top leaders, especially the CEO, must not be distant from the organization. Sure, Herb Kelleher had to deal with financing, Wall Street, and politics, but do not think for a minute that he was not engaged in operations. Other insights were that the quickest way to failure is for a CEO or top leader not to be engaged in operations, and that the best part of the job was getting to know the workforce.

Yes, it was painful for me to realize I was not the leader I had thought I was. It was ego deflating to go to Southwest and ask for help. I also had to go back to the employees and let them know I was wrong about it being easy to create a great customer experience. If the boss does not listen, if people don’t have the resources to do the job, if goals aren’t clear, if teamwork is lacking, if there’s no feedback or positive recognition, it is very hard to do a good job. Yes, it was scary saying, “I work for you. What should I be doing today?” But it was a question worth asking.

We talk more about the basics of employee engagement throughout this book. But positive change begins with measurement. Once you know the metrics in both areas—employee engagement and customer satisfaction—you can take steps to improve both. A few tips:

• First, measure customer satisfaction. Not only will measuring help you know where you stand with customers, you’ll end up with metrics that you can build a service goal around. It’s not enough to just say “We want to improve customer satisfaction” or “We want a better customer experience.” Most people are motivated by clarity and specificity, not vagueness. Plus, without a number, how will you know whether you have improved?
• There are many tools for measuring customer satisfaction. The first step is to teach staff how to ask specific questions. This way, items can be addressed immediately. However, it is always good to also measure via a formal feedback system.
• Next, measure employee engagement. Use an outside company that has expertise and experience in surveying. The company I have used for more than two decades uses a 47-question survey. Here are some of the types of questions it includes:

• I am kept informed on matters that affect me.
• I feel comfortable making suggestions to my supervisor.
• I feel safe at work.
• Employees are treated fairly here.
• The organization’s leaders model ethical behavior.
• The organization is effective in retaining valuable employees.
• I am encouraged by the direction of the organization.
• The organization is dedicated to the satisfaction of its customers.

• Those are just a few examples. The questions cover all aspects of a person’s on-the-job experience, and categories cover the range of what is important to the workforce.
• Take time to explain to all employees that their answers will be confidential. This will make it more likely they’ll answer truthfully. Bigger than that, though, make sure you’re taking steps to create a psychologically safe workplace. (See Chapter 21.) This will make it more likely that people will come to you with issues even without a survey.
• Be ready to act when the results come in. Employees at first may doubt the survey results will be used so they will be pleasantly surprised by follow-through. Train all people in supervisory positions on how to share the data and create action plans. Keep the action plans in front of everyone. Make sure everyone knows they are a priority.
• Identify those leaders who have the most engaged staff and learn what they do. Share those learnings with all people in supervisory positions. It starts at the top, with the CEO/top leader rolling out to their direct reports as well as a summary to all staff with the steps that will be followed by each supervisor.
• Measure employee engagement as often as you can. This is a matter of preference. Companies used to measure engagement once a year, but many have moved to every six months or even more frequently. My feeling is that it’s impossible to be too connected to how employees feel about their work. Between one larger survey and the next, it’s a good idea to do a short one with fewer questions to assess concerns and to see if progress is being made.
• Too many companies know their cash position way better than how their employees are doing. Ironically, the better the employees feel, the better cash position there is. The good news is that once the survey has been done and rolled out properly and actions have been taken, leaders cannot imagine not doing one.

Don’t wait for the perfect time to measure how the workforce feels. Run to measurement, not from it. You will end up with a more engaged workforce, better customer satisfaction, and better financial performance.

We live in an age when it’s no longer enough to get the core competencies right. We have to get a lot of other things right, too. Standards are higher than they’ve ever been, which means we have to always be improving. Measurement lets us know where we are now—and only when we know where we are now can we know where we want to be in the future.