Leadership Coaching: Trust Is The Key To Customer And Employee Engagement
By Mike Krutza
Diminishing Customers and Financial Collapse
“Customer is first” is the constant exhortations of businesses that thrive and want to survive. But there are many leaderships that failed to heed that call. There is no business when there’s no customers, therefore customer loyalty is a foremost concern. However, buying customers are not so easy to find amid the recession. In fact, consumers, regardless of socioeconomic lines are reluctant to open their wallets- even if price slash offs and discounts have been ceded across the retail industry. “Discounted” items from food to clothing are not that alluring at a time when even the affluent and wealthiest in America are increasing their savings by 16%. Seventy- seven percent of these well-to-do respondents are purchasing fewer big- ticket items.
Financial crisis cause a lot of noise in an organization. There’s panic and pressure that results to pain. When there’s pain, people are hurting and complaining, and they get noisy. “Too big to fail” does not hold true anymore with astounding companies such as Citi Group, Bear Stearns, Enron and Lehman, among others having experienced financial collapse.
What Is the Best Framework for a Financial Make- Over?
Where there is diminishing customers and susceptibility to financial collapse, companies typically resort to continued borrowing to manage their personal and corporate debt. Then again, such a measure proves to be counter- intuitive. If debt development isn’t the best solution to sustain a company’s financial make- over, what is?
A business that wants to play their cards right knows that trust is trump. At the onset of the global economic crisis in 2008, a gory corporate economic scenario ensued. Trust has evaporated. The resultant economic situation called for a new “normal” in business function to emerge, and it is that of leadership that builds trust. Such kind of leadership needs to have courage, insight and clarity.
The first step is to obtain customer confidence by producing healthy brands. A recent Gallup study cites that engaged customer relationships are developed and nurtured by healthy brands. Enduring business relationships find their bedrock in customer confidence.
Engaged Employees = Healthy Work Culture = Bigger Profits
Above customer loyalty, however, is employee loyalty. Unengaged employees cost companies one in every three payroll dollars, along with decreased effectiveness and productivity. A study done by Dr. Karen Ho, a University of Minnesota author and assistant professor of anthropology, cites that many American workers feel liquidated, dismissed and disrespected by their employers. A nomadic, disconnected workforce has been produced by a business culture that predominantly focused on profits and critical mass.
An effective and highly profitable company has a healthy work culture. Engaged employees play a major role in cultivating a healthy work culture.
Leadership coaching that is insightful, wise and intuitive can guide you in the process of evolving or improving your organizational culture- the human aspect of your business. The time might be right for changed leadership in your organization and take your business to the next level.
Mike Krutza specializes in executive coaching with individuals and teams. Visit Mike’s website here.