Engagement has become the new holy grail for satisfied employees and a key issue for business leaders. But what does it mean to be engaged? Bain & Company is redefining the employee experience with a system for building inspiration through productive team discussions, candid frequent feedback and an outer loop for addressing systemic issues. Inspired employees should be everyone’s priority to fuel customer loyalty and organic, sustainable growth. We will share the results from our latest study, describe the mechanisms required and the behaviors to aspire towards – all key ingredients of a customer centered Employee Inspiration system.

1. NET PROMOTER SYSTEMSM:
EMPLOYEE INSPIRATION:
How to Create Energy that Drives Better
Customer Outcomes
November 1st, 2016
Net Promoter®, NPS®, and the NPS-related emoticons are registered service marks, and Net Promoter ScoreSM and Net Promoter SystemSM are service marks,
of Bain & Company, Inc., Satmetrix Systems, Inc. and Fred Reichheld.

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Housekeeping

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This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent
INTRODUCTIONS
• Head of Americas Customer Strategy & Marketing
Practice
• Leader in Financial Services practice with a focus on B2B
lending, commercial insurance and payments
• Expertise in:
- Customer loyalty
- Net Promoter System
- Employee Engagement
- Business unit strategy
• Previously with Dell Computer and Price Waterhouse
Coopers
DARCI DARNELL
PARTNER,
CHICAGO
SARAH DEY
BURTON
SR. DIRECTOR
SAN FRANCISCO
• Sr. Director, Customer Strategy & Marketing Practice Area
• Expertise in:
- Customer loyalty
- Employee Engagement
- Brand and Marketing Strategy
- Design thinking
• Worked in retail industry for 9 years focused on Corporate
Strategy, Marketing and Consumer Insights
• Manage a global team who all work remotely (not in an
office) so am challenged daily with how to inspire my team
with those constraints

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This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent
TOPICS FOR TODAY
•Context for discussion: Bain & Co. thought leadership in customer advocacy
•Definition of engagement and the best ways to build an understanding of levels of
engagement
•Engagement drivers and employee experience
•Engagement system and Bain’s differentiated approach

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This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent
BAIN & COMPANY’S PERSPECTIVE ON LOYALTY IS SHAPED BY YEARS
OF EXPERIENCE
Industries:
• Financial services
• Consumer products
• Retail
• Technology
• Air transportation
• Telecom
• Industrial goods
& services
• Other
Engagement focus:
• Customer segmentation & value
proposition
• Customer acquisition
• Share of wallet
growth
• Customer
experience
re-design
• Loyalty &
retention
• Differentiated IP focused on system vs metric and customer centric
culture transformation
• Bain ‘wrote the book’ on loyalty
• Forum for senior executives from leading
companies to learn from, share, and
enhance best practices
• Sample of current forum members:
• Publish in top business journals
• Net Promoter
• Loyalty economics
• Moments of Truth approach
• Inner/Outer loop processes & mechanisms (closed learning
loops)
• Employee Inspiration
• Results Delivery
• Digital transformation
• Episode/Journey analytics
• Design thinking
• Both Brain customer insights
> 8,900 customer strategy & marketing related projects…
Source: Bain & Company experience center a/o July 2015
CONTEXT
Loyalty &
NPS
perspective
• Dedicated practice/Center of Excellence with global experts
• In-house Advanced Analytics group
• Net promoter system website:
http://www.netpromotersystem.com

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This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent
>2x
CAGR
15%
Lower
LOYALTY LEADERS OUTPERFORM ON BOTH GROWTH AND COST
CONTEXT

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This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent
How likely are you to recommend our product/service to a friend or family?
0-6
7-8
9-10
Extremely
likely
Extremely
unlikely
% Promoters
Net Promoter Score SM (NPS ®)
MINUS
% Detractors
NET PROMOTER BEGAN AS A POWERFUL AND SIMPLE METRIX TO
MEASURE CUSTOMER LOYALTY
CONTEXT

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This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent
RELIABLE, TRUSTED CURRENCY/METRIC
NPS/eNPS; common language; loyalty economics
SUSTAINED LEADERSHIP COMMITMENT
Strategic priority; inspirational behaviors that earn customer and employee advocacy; sponsorship spine
EMPLOYEE/TEAM ENVIRONMENT FOCUSED ON LOYALTY
Safe environment, effective organization, right tools and training, valued fairly
ROBUST OPERATIONAL AND ANALYTIC INFRASTRUCTURE
IT EVOLVED INTO A SYSTEM: MECHANISMS TO SUPPORT A CULTURE OF
CUSTOMER CENTRICITY
FEEDBACK, LEARNING AND IMPROVEMENT
Individual
learning, behavior
change, and
connection with
customers
INNER
LOOP
Root cause analysis, prioritization &
implementation of
structural
improvements
OUTER
LOOP
HUDDLE
Team
problem-solving,
issue escalation,
mutual commitment
OUR
FOCUS
TODAY
CONTEXT

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This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent
THE PROMOTER(SM) FLYWHEEL: EMPLOYEE AND CUSTOMER ADVOCACY
TOGETHER FUEL GROWTH
Note: The Promoter Flywheel is a service mark of Bain & Company, Inc.
You need highly engaged employees to deliver the differentiated experiences required to earn
customer advocacy
STAY HERE!
RECOMMEND!
WORK HERE!
STAY HERE!
PROFITABLE,
SUSTAINABLE
ORGANIC
GROWTH
CONTEXT

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This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent
COMPANIES WITH ENGAGED EMPLOYEES DELIVER SUPERIOR FINANCIAL
RESULTS
… AND IMPROVE PROFITABILITYCOMPANIES WITH HIGHER ENGAGEMENT GROW FASTER …
Source: Hay Group Insight “Engaging and Enabling Employees to Improve Performance Outcomes” (2009 Hay Group global normative database); Russell Investment
Group and Great Place to Work Institute (98-08);
• More customer loyalty
- Higher average revenue per
customer
- More customer referrals
- Lower customer churn
Revenue
Cost
• More efficiency
- Increased productivity
- Lower absenteeism
• Reduced attrition
- Lower hiring and training
- Less on-boarding
• And for some industries:
- Less shrinkage
- Higher quality
- Less safety incidents
CONTEXT

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ENGAGEMENT LEVELS ARE OFTEN LOWEST FOR THOSE WHO INTERACT
WITH CUSTOMERS
*Sample size <600
Source: Netsurvey/Bain analysis, September 2012 (n=27,628); Netsurvey/Bain analysis, September 2012 (n=130,000+)
FUNCTIONS CLOSEST TO THE
CUSTOMER HAVE LOW ENGAGEMENT
FURTHER DOWN IN ORGANIZATION,
LOWER THE ENGAGEMENT
CONTEXT

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This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent
THE RELATIONSHIP BETWEEN CUSTOMERS & EMPLOYEES
CUSTOMER NPS
75%
?
EMPLOYEE NPS
-10%???
CONTEXT

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This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent
YOU KNOW THEM WHEN YOU SEE THEM!
The employees who make the highest impact on
your business exhibit energy, enthusiasm and creativity to
improve the lives of customers and colleagues, supporting the
mission of the company
Benefits:
• Deeper customer loyalty
• Higher productivity
• More innovation
• Better employee recruiting and retention
• Lower costs
• Faster, more profitable growth
DEFNIITION
This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent

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This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent
EMPOWERING AND DRIVING CHANGE AT THE FRONT LINE:
LEADING BY LETTING GO
Source: The Ultimate Question 2.0; Fortune; American Express website
High employee turnover,
stalled customer satisfaction
20,000 employees in 24 countries
• Scripts for consistency, quality, and speed
• Average handling time for unit cost targets
• Call quality monitoring
SITUATION LEADING BY LETTING GO
FOUR LEVERS RESULTS
• “Telephone Service Center Reps” became “Customer Care
Professionals” with increased pay and schedule flexibility
• Call center scripts and average handling time limits eliminated
• Hiring criteria changed
to emphasize hospitality
and values versus technical skills
• Focused Customer Care Professionals on a single metric:
Customer NPS
• Clear, simple goal that resonates
• Freedom within a framework (guardrails)
• Coaching and support
• High-velocity closed-loop feedback
• NPS doubled
• They won the JD Power Award for service 5 years in a row
• Employee attrition cut in half
• Higher profitability:
• Costs came down 10%/year as % of revenue:
- Fewer dial transfers
- Lower average handling time
- Fewer repeat calls – higher first contact resolution

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This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent
DRIVERS
CREATING AN INSPIRED WORKFORCE DEMANDS THAT YOU MEET
MULTIPLE NEEDS “The Job”
“The Team”
“The Company”
LEGEND
Source: Bain & Company
EMPLOYEE SATISFACTION
EMPLOYEE INSPIRATION
Differentiators:
“Inspiring energy,
enthusiasm, and
creativity”
Purpose Fit Autonomy Affiliation
The foundation:
“Meeting basic needs”
Valued and
supported
Growth
Have what
I need
Work
environment
Leadership
Inspiration
Comp/
Promotion

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This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent
BAIN’S NET PROMOTER INSPIRATION SYSTEM EMPLOYS FOUR PRIMARY
MECHANISMS
• Prepare: Launch a short, confidential survey
to employees preceding a team huddle (at
least monthly)
• Feedback: Deliver customized results to
team leaders
• Engage: Conduct team-level dialogues with
survey feedback as key input
• Action: Problem solve and agree on actions
to address local issues
• Escalate: Identify systemic issues to be
escalated
• Tier: Each management level huddles and
addresses issues within authority
• Prioritize: Central team prioritizes systemic
issues for “move the needle” initiatives
based on clear understanding of impact and
value
• Communicate: Actions communicated back
TEAM HUDDLE OUTER LOOP
ANNUAL EMPLOYEE SURVEY
• Gauge “relationship”: Assess progress on employee engagement
• Identify systemic issues: Identify areas of focus for central team initiatives based on aggregate view of the employee experience, as well as trends
across groups
INNER LOOP
SYSTEM

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This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent
HUDDLES SUPPORT AN AT CAUSE COLLABORATIVE CULTURE FOCUSED
ON REALIZING THE MISSION
ISSUES REQUIRING MORE
SUPPORT ARE ESCALATED
INTO THE OUTER LOOP
EMPLOYEES COMMIT TO
INDIVIDUAL AND TEAM ACTIONS
THE TEAM COMES TOGETHER TO DISCUSS
ISSUES AND OPPORTUNITIES
ANONYMOUS INPUT PUTS ISSUES AND
OPPORTUNITIES ON THE TABLE
RESULTS: Enthusiastic employees work together to improve their job effectiveness, team
environment, and personal experience
SYSTEM

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This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent
BEST INDICATOR OF INSPIRATION ‘MY JOB INSPIRES ME’ AND A SAMPLE
OF QUESTIONS TO PROBE
Source: Bain Employee Engagement Survey, November 2015 (n=2482)
BEST INDICATORS OF
ENERGY, ENTHUSIASM & CREATIVITY
OVERALL INSPIRATION
ACTION ORIENTED
TEAM AFFILIATION
• “My job inspires me”
- Why?
• “I would recommend my company as a place to work to
friends or family members”
- Why?
• “I would recommend my company’s products and
services to friends or family members”
- Why?
• What is one thing we could do differently to serve our
customers better?
• What is getting in the way of doing a great job today?
• “We are making progress as a team towards a
meaningful goal”
• What team member contributed most to our team’s
effectiveness this week?
SYSTEM

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This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent
OUR APPROACH IS DIFFERENT: FOCUSED ON CUSTOMER AND BUSINESS
OUTCOMES
ANNUAL EMPLOYEE SURVEY –
administer a large survey once per year
with limited focus on engagement in the interim
CUSTOMER CENTRIC ENGAGEMENT SYSTEM – a process that
drives continuous improvement of employee engagement as a
means to deliver better customer outcomes
ORGANIZATION-FOCUSED – mostly large organizational
initiatives vs. a focus on teams, individuals and their roles
INDIVIDUAL-FOCUSED – combine large initiatives with a parallel
focus on driving inspiration at the individual level
LIMITED ACTIONABILITY – over-emphasis on survey results
vs. specific actions for leaders and teams
INSIGHTS TO DRIVE ACTION – provide clear insights on where
to focus efforts and the support to embed employee engagement
in operating system
FOCUS ON SATISFACTION – measure how happy employees
are with the company and the work environment, with limited
ability to tie to business outcomes
FOCUS ON INSPIRATION – measure the energy, enthusiasm,
and creativity that your employees bring to work, leading to
productivity and innovation
OWNED BY CENTER/HR – attempt to drive top-down change,
making it difficult to empower and instill a sense of ownership in
line leadership
PARTNER HR WITH LINE LEADERSHIP –empower line
leadership and employees to bring bottom-up change, holding
leaders accountable for results they control
COMMON APPROACH BAIN APPROACH

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This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent
HOW EFFECTIVE IS YOUR EMPLOYEE INSPIRATION SYSTEM?
Where does employee inspiration fit in the company’s strategic agenda? Is it a top 5
priority?
1
Does senior management know where the biggest opportunity exists to improve levels of
inspiration, and how to drive it?
2
Who has accountability for increasing employee inspiration?3
Do supervisors have the right training and information to hold regular, productive
dialogues with employees, and act on the learnings?
4
Are there procedures, processes and mechanisms in place for putting employees in
charge of their own work environment?
5
Is inspiration a metric or a system? And is progress tracked?6

21. Sarah.deyburton@bain.comDarci.darnell@bain.com

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THANK YOU!