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Leadership: The Power of Emotional Intelligence by Daniel Goleman

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QUANTIFYING THE “FEEL” OF A COMPANY

 

Common wisdom, of course, holds that employees who feel upbeat will likely go the extra mile to please customers and therefore improve the bottom line. But there’s actually a logarithm that predicts that relationship: For every 1 percent improvement in the service climate, there’s a 2 percent increase in revenue.43

Benjamin Schneider, a professor at the University of Maryland, found in operations as diverse as bank branches, insurance company regional offices, credit card call centers, and hospitals that employees’ ratings of service climate predicted customer satisfaction, which drove business results. Likewise, poor morale among frontline customer service reps at a given point in time predicts high turnover ...

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