As the reality of flat world, global competition begins to set in, many entrepreneurial managers are scrambling to adapt. Recognizing the need for expertise in relatively new areas such as exporting, sourcing, distribution, etc., they sometimes feel almost overwhelmed by the perceived quantity of knowledge they suddenly feel they have to have.

The good news is that this knowledge and information is not that difficult to locate nor is it that expensive to acquire.

What is often overlooked, however, is the need to also develop the employees to compete in a global economy. While many articles and conversations address this need or the “why,” significantly less input and guidance is given to the “how.”

But in reality, the fundamental of customer satisfaction and its effect on profitability, growth, and job security is the same. The problem: Few managers stress the connection resulting in fewer employees understanding the connection.

If you assume for a moment that customer satisfaction is the catalyst for sustainable success, then you understand the requirement and opportunity for profitability. Simply put, companies that deliver customer satisfaction better and more often than the competition earn more money.

It is important to note here that the term “customer satisfaction” does not refer to a rating; rather it refers to a total package of value.

Profitability fuels growth. Growth is the result of a company being able to deliver the value package more frequently than the competition and allows financial developments and enhancements to occur. Sadly, many employees and perhaps even a few managers do not realize that without growth, any discussion of job security is nothing more than a cruel illusion.

Companies cannot deliver value; dedicated employees of companies are the only ones who can convert a specified feature into a superior value and benefit. People are the critical bridge or connection between any program and any customer. If you accept this, then regardless of size, a company must invest in training time both in performance of specific duties and in making and reinforcing this connection.

This connection can only take place when the specifics of a job are directly related and understood in financial terms.

This takes managerial time and energy but employees simply cannot be allowed to see their activity as an isolated parochial event in some disconnected process. Hiring the right type of employee will ensure that you have individuals who conscientiously want to participate in such a venture.

Managerial leadership in establishing and reinforcing this process allows the desire for participation to evolve into an extremely powerful requirement for participation.

In addition to the right hiring formula, two components are required for success in such an approach. The first is an attitude adjustment by many managers that says that it is critical to share financial/performance information with employees. A subset of this adjustment is the willingness to put in place a program that ensures that they understand the information and, equally important, how their individual tasks affect the results.

The second component is a compensation program that rewards correct decisions and overall improvements.

The old “parent/child” model of management and manufacturing is no longer viable. Only entrepreneurial managers who seize upon the opportunity to employ conscientious adults who are supportively focused on customer satisfaction will prosper in this competitive global economy.

John F. Riddell Jr., director of the Center for Entrepreneurial Growth-Hamilton County, writes each Tuesday about entrepreneurs and their impact on companies and the marketplace. Submit comments to his attention by writing to Business Editor John Vass Jr., Chattanooga Times Free Press, P.O. Box 1447, Chattanooga, TN 37401-1447, or by e-mailing him at business@timesfreepress.com

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