As organisations scrambled to respond to the unexpected, and competing priorities and drastically altered budgets meant tough decisions that impacted the livelihoods ...
Employee and customer engagement specialists Insync has revealed the 5 key people drivers of profitable growth. Experience from conducting over 1,000 employee and customer surveys, together with an extensive review of other published research, has uncovered five drivers that are imperative if organisations are to achieve profitable growth, even in times of low economic growth.
Nicholas Barnett, CEO Insync , said: “In the current low growth environment, very few organisations are succeeding in consistently growing both revenue and profit. ASIC reported that the number of companies being placed in administration was more than 12% higher in March this year than during the GFC. Our paper explores why achieving profitable growth is such a challenge and what organisations need to do to get back on the path of consistently achieving the profitable growth they desire.”
The framework, Insync “Profitable Growth Cycle”™, illustrates how five interrelated factors build on each other and contribute to profitable growth:
- Employee empowerment and support
- Employee engagement and retention
- Customer focus and engagement
- Productivity and innovation
- Customer loyalty and advocacy
“High growth organisations understand that achieving profitable growth starts with investment in their employees. Providing employees with clear direction and expectations, and empowering them to do their jobs well will lead to greater employee engagement and retention”, Mr Barnett explained.
The cycle continues with engaged employees leading to stronger customer relationships, which creates greater customer loyalty and advocacy. “Add to the mix an increase in productivity and innovation based on input from both engaged employees and engaged customers and you start creating a virtuous cycle of profitable growth”, Mr Barnett said.
“Not enough leaders understand that their employees won’t look after their customers until they look after their employees”.
“The need for authentic leadership can never be underestimated. The organisation’s CEO and leadership team must be united in their commitment to achieving profitable growth. They must embed all elements of the profitable growth cycle into their culture and DNA until it becomes a way of life. Momentum will build and profitable growth will become a reality”, Mr Barnett said.