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Explore the Possibilities2013 HR Service Delivery Forum

Case Study: The Net Promoter Score™(NPS) and Impact on HR Service Delivery Featuring Thermo Fisher Scientific

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Session outline

An overview of Net Promoter™ Metric Case study: Customer allegiance at Thermo Fisher Scientific Employee applications of Net Promoter Metric Questions

1


Net Promoter™ — Captures head and heart

How likely is it that you would recommend XYZ’s products/services to a friend or family?

Loyalty metric AND organizational discipline Simply measuring your score does not lead to success Actions your team takes to improve the score are what generates results

TM: Net Promoter, Net Promoter Score and NPS are trademarks of Satmetrix Systems, Inc., Bain & Company, Inc., and Fred Reichheld.

2


We are the leading provider of analytical instruments, equipment, reagents

and consumables, software and service for

research, analysis, discovery

and specialty diagnostics

Global Scale• 39,000 employees in 40

countries• $12 billion in annual revenues• Unparalleled commercial

reach

We enable our customers to make the world healthier, cleaner and safer

Unmatched Depth• Innovative technologies• Applications expertise• Laboratory productivity

partner

Leading Brands

™

The world leader in serving science

3


Technology Infrastructure

HR Centers of Excellence

Field HRTeam

BusinessLeaders

Strengthening the foundation on which HR services are delivered

High-level overview — HR Service Delivery model

HR resources deployed in a more efficient way to enable us to scale effectively to meet our vision for 2020

Managersand

Employees

4


UtilizationFirst Contact Resolution

Time to Respond

5


What is CAS?

Customer Allegiance Score

Customer satisfaction and loyalty metric

Measures customer perceptions of our performance

Identifies areas for improvement

6


Top 5 reasons why we survey our customers

1. By acting on the feedback, we increase our promoters, which in turn strengthens and grows the HR function

2. Surveys provide timely customer feedback on the areas where we need to focus our resources and investments

3. Surveys illuminate which actions are most important to our customers, and how we are currently performing

4. They identify which employees are most appreciated by our customers5. Offering them shows customers that we care and are listening to them

7


The ultimate question

"On a scale of 0 to 10, how satisfied are you with the service recently

provided by HR1?”

8


Closing the loop

1. Survey2. Action alerts (immediate follow-up)3. Root cause (5 why’s) Quick fix (stand-ups, knowledge base)

4. Measure (CAS)5. Plan (HR1 Steering Committee)6. Do (projects)

9

ContinuousImprovement


Comments

Key Drivers of CAS

Monthly Highlights

Comments

Promoter Themes

Detractor Themes

Monthly Highlights

Aug-12(397)

Sep-12(248)

Oct-12(393)

Nov-12(583)

Dec-12(221)

Jan-13(390)

Feb-13(253)

CAS 55.2% 48.4% 67.7% 69.9% 69.6% 66.0% 73.0%Promoters 72.8% 69.8% 81.4% 80.5% 79.6% 79.0% 84.0%Passives 9.6% 8.9% 4.8% 8.9% 10.4% 8.0% 5.0%Detractors 17.6% 21.4% 13.7% 10.6% 10.0% 13.0% 11.0%

55.2%48.4% 67.7% 69.9% 69.6% 66.0% 73.0%

0%

20%

40%

60%

80%

100%Customer Allegiance Score

Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13Volume 6550 5427 7058 8664 5238 8639 5720Electronic Service 55.9% 55.6% 70.6% 94.6%Phone Service 85.6% 86.1% 77.1% 53.3% 83.5% 95.3% 96.9%First Contact 70.7% 66.9% 68.8% 77.9% 72.9% 73.9% 74.7%

0%

20%

40%

60%

80%

100%

0100020003000400050006000700080009000

10000Service Levels & First Contact Resolution

10


Questions

11


Employee applications of Net Promoter™ measurement

The popularity of NPS in customer experience measurement has led many organizations to explore applications with employee survey measurement

Two main applications:1. cNPS: Asking employees their likelihood to recommend the company’s

products and services2. eNPS: Asking employees their likelihood to recommend the company as a

good place to work or employer of choice Some companies are using both approaches Most companies are embedding the NPS question to employees into

their existing employee survey measurement program How the data is used varies widely

12



Employee applications: cNPS™

The focus of cNPS applications remains external Employees are asked a single question, such as:

0 to 10 response scaling, allowing for the calculation of a cNPS score

How likely is it that you would recommend XYZ’s products to a friend?

Not at all Likely 0 1 2 3 4 5 6 7 8 9 10 Extremely

Likely

Detractors Passives Promoters

13



Employee applications: eNPS™

In contrast, the focus of eNPS applications is internal Employees are asked a single question, such as:

0 to 10 response scaling, allowing for the calculation of a cNPS score

How likely is it that you would recommend XYZ as an employer of choice?

Not at all Likely 0 1 2 3 4 5 6 7 8 9 10 Extremely

Likely

Detractors Passives Promoters

14



Contrasting NPS™ employee applications

cNPS™ eNPS™ Central Purpose

External; Complements an organization’s CEM program and provides mechanism to compare NPS scores from customers to NPS scores from employees.

Internal; Positioned as an alternative way to measure employee engagement.

Primary Use of Data

CEM team uses data to examine gaps between customers and employees, develop strategies to align and target employee groups with low cNPS. Typically not provided to front-line managers.

Data used to track engagement as part of broad employee survey measurement programs. Data is typically provided to front-line managers to drive local employee engagement strategies.

15



Concerns with eNPS™

Whereas cNPS™ can be an effective mechanism for involving employees in the process for assessing the customer experience and driving customer loyalty, there are a number of concerns with eNPS™ applications, including: NPS was developed in customer research, with customer populations in mind Reliance on responses to a single item to measure employee engagement Recommending the company as a place to work is not necessarily the

ultimate question for measuring the employee experience The scoring approach is applied directly from customer surveys to employee

surveys without recognizing how employees typically answer surveys Asking employees if they are energized in their work, enabled in their jobs,

and attached to their employers is a more robust and powerful measure of employee engagement

16



Measuring sustainable engagement Engaged — Feel attachment to the company

and willing to give discretionary effort

Enabled — Operate in a work environment that supports productivity and high performance

Energized — Able to maintain an adequate level of energy and sense of well-being

Companies with low

Traditional Engagement

Companies with high

Traditional Engagement

Companies with high

Sustainable Engagement

9.914.3

27.4

Ope

ratin

g M

argi

n

3x higher

The Power of ThreeResearch shows that companies with high levels of sustainable engagement outperform those with low engagement, and even those with high levels of traditionalengagement

17


Questions

18


Today’s presenters

Dan McCauley, Ph.D.

Americas Practice Leader, Organizational Surveys & Insights

[email protected]

Kevin Kinney

HR Technology, Senior [email protected]

617.638.3663

Mark White

Vice President Human Resource Operations [email protected]

781.622.1269

19

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