Through the decades of the 60’s, 70’s, 80’s, and 90’s, leaders in industry, frequently through articles published in the Harvard Business Review, were teaching a new paradigm for business success. This paradigm was: Well trained, developed, and equipped team members who love doing what they do with quality, executing processes and using technologies designed to enhance what customers value, will create and retain very satisfied, loyal, frequent user, promoter customers, who will drive the profit and growth of a Brand.
The new paradigm emulated the work done by Juran, Deming, ISO, [International Organization Standardization] TQM, [Total Quality Management] Six Sigma, [A set of techniques and tools for process improvement.] Today, it is used in many industrial sectors.] They also created Human Sigma. The Experience-Profit Chain paradigm is illustrated this way:
The Balanced Scorecard
Since as Joel Barker, futurist, author, and paradigm expert, has taught us; once a paradigm shifts everything goes back to zero. In business this means, when you ask a CFO, with the new paradigm; “If you could only have one metric to tell you the health of the organization, what would it be?” He will respond, “I need two, but if I could only have one, it would be Customer Retention. If I could have a second, it would be frequency of purchase. A third would the lifetime value of the customer, and so on. This new paradigm takes metrics that previously belonged to HR and made them the new Predictive Analytics of Customer-Centric Brands. But the past financial metrics were not abandoned. The result was what Harvard called the BSC, or the Balanced ScoreCard. Below is an illustration of a Balanced ScoreCard. These kinds of metrics are the new normal of financial indicators.
Comparison of Performance Measures, Fortune 100’s Best Places To Work, Versus Companies in the Standard and Poor’s Fortune 500
Jan Carlzon, the CEO of Scandinavian Airlines, in his book, Moments of Truth, talked about the real assets of his company being his team members who engaged millions of customers every day in small 15 second “moments of truth,” which would be “memorable moments” and determine the future success of the airline. He encouraged and trusted his team members to do the right thing but take care of the customers.
Carl Sewel, a very successful Cadillac dealer in Dallas, in his book, Customers for Life, implemented one of Peter Drucker’s business principles; “Ask customers what they want and give it to them again and again.” As more and braver business people implemented this paradigm its success became well known as not just isolated phenomena, but a tried and true new way of doing business. One of the measurements of its success when implemented over a period of years is illustrated below for the years 2009-2012.
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