Most businesses operate on the principle that the customer comes first. This philosophy has been challenged by Vineet Nayar in his book β€œEmployees First – Customers Second.” The concept of putting your employees first has been accepted and adopted by large companies like Virgin and Starbucks.

According to Nayar, this is a management approach not a human resources benefit. If your employees are empowered and passionate about what they do, the customer experience will be exceptional.

Nayar states that while employee satisfaction is important, it is not something the company should strive for. Satisfaction is a stagnant state that is not conducive to change or innovation. Increasing employee engagement should not be the goal of the company. Any employee who is alert and paying attention should be engaged in their job. It is all about creating passion and excitement in your employees.

Nayar says the interface between the company and the customer is the β€œvalue zone.” Any employee who works in the value zone must be empowered and challenged to create as much value for the customer as possible.

To implement the employees first concept, a cultural transformation needs to occur. The transformation begins with frequent, open and honest conversations between employees and management. The purpose of the meetings is to create the need for change.

Management needs to trust the employees to do what needs to be done. Managers are just as accountable to the employees as the employees are to management. Management’s role shifts into a more supportive one, giving the employees the tools they need to create maximum value for the customer. Ongoing transparent communications create the necessary element of trust everyone needs in an organization.

Companies who have adopted the strategy see it is a competitive advantage. The results are increased customer retention, growth and profitability. In addition, they are able to recruit and retain the top talent in their industry.

Who comes first in your organization?


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Bill Nordbrock is vice president of community relations for SCORE Southern Arizona, a nonprofit group that offers free small-business counseling and mentoring by appointment. For information, go to southernarizona.score.org, send an email to mentoring@scoresouthernaz.org or call 505-3636.