KQ Article

The 2007 Collaborative set out to transform service recovery from a mundane operational necessity to an artful, purposeful experience capable of engendering lasting customer loyalty. We took a systematic approach to the common challenges facing branches and call centers, with the goal of better understanding the nature of problems and their resolutions.

As we dug into the topic, however, the scope of our pilot expanded beyond problem resolution alone to exploring new ways to optimize staff engagement. We made this shift because it became clear that employee performance is a critically important factor in building customer loyalty in the financial services industry. Engaged employees clearly perform the best.

So we began to analyze the roles, attitudes and performance of bank and credit union employees, experimenting with various methods of motivating them to provide better problem resolution. And we were amazed at the profound effect the pilot had on not only employee performance, but on corporate culture as well.

PROMOTING TEAMWORK
Staff members involved in the pilot shared numerous storiesabout improved morale, motivation and internal relationships. Our pilot seemed to provide the tangible proof they needed to feel valued by their organization. By developing the skills to better assist customers and shape their own work environments, front-line employees found a context for their work, also helping to validate the vital role they play in their employer’s success.

Employees also began to speak out in new ways. For example, tellers at one branch felt their retail environment wasn’t sufficiently warm or welcoming. They submitted this opinion in writing to their president, along with a request for a fireplace and comfortable chairs to be added to the lobby. The president agreed.  The branch now basks in theglow of a new hearth — and a group of engaged front-line employees who take personal pride in the experience they provide customers. Other useful recommendations will surely follow.

We were pleased to learn that teamwork improved not only within teams participating in the pilot, but also between them. Departments that historically did not work well together found new common ground in the company’s collective focus on the customer. This camaraderie continued to spread outward, improving relationships in other areas of the organization and between employees as they worked on other initiatives. People everywhere seemed more engaged.

RULES OF ENGAGEMENT
According to the Corporate Executive Board publication, Designing an Effective Engagement Strategy, the term “engagement” describes the extent to which employees commit to their organization,  including how hard they are willing to work and how long they choose to remain employed with an organization. Influences on engagement include how clearly an employee understands the connection between his or her work and the organization’s overall strategy, along with how well management articulates the organization’s goals and vision.

To promote engagement among employees, we created a learning and communication program that connects problem-resolution effectiveness to customer loyalty, which in turn influences both the short- and long-term goals of the organization. All employees were trained to effectively resolve problems, and to recognize that a critical ingredient of the company’s success rests in their hands.

We also trained branch managers on the goal of our pilot, and on effectively coaching a team. We wanted it to be apparent that all employees — including front-line staff and their supervisors — were working toward the same goals. Every success story was shared and celebrated with fellow team members, creating a culture of recognition and reinforcing the fact that staff at all levels are working toward a common objective.

This pilot reinforced an essential point: if you want to create loyal customers in the financial services industry, you must engage your employees first. It won’t happen any other way.