"The Employee-Customer-Profit Chain at Sears"
Anthony J. Rucci, Steven P. Kirn, and Richard T. Quinn
Harvard Business Review, January 1998.
Available Online
This is an article by three current and former Sears executives who explain
how Sears accomplished a major performance turnaround and developed a metrics
systems known as Total Performance Indicators, or TPI. TPI is a set of measures
that shows how well the company is doing with customers, employees and investors.
Through the inspiration of CEO Arthur Martinez, Sears set out to revamp
its business and developed a business model and measurement system called
the “employee-customer-profit model.” The company took three
years to develop this new system, which is based on financial analysis as
well as research and information gathered from surveys and focus groups
with employees, customers. In the end, they claim that they understand the
several layers of factors that drive employee attitudes, and they know how
employee retention affects customer satisfaction, how customer satisfaction
affects financials, and a great deal more. They set out to prove causation
and they came up with dependable metrics that make sense.
Price: $8.50 / Product Number: 98109 / Length: 16 pages
