Measuring customer satisfaction is a critical first step toward business success. CFI Group's measurement and "cause and effect" analysis show where improvements should be directed to generate optimum returns. But unless employees are given appropriate direction and incentives to make these improvements, positive change may not take place. Selecting measures, setting targets and measuring progress towards those targets are all essential to realizing the return on any customer satisfaction program.

There are two aspects that must be considered for implementing change: a) selection of appropriate measures, and b) setting appropriate target levels for these measures. The following are guiding principles for selecting targets, and some pitfalls to avoid.

Principles for Selecting Measures

Target Selection	Implications
Accuracy of measurement	Accuracy is essential for senior management to believe in and support satisfaction improvement initiatives. Accuracy is also critical to reliably identifying true improvements, for aligning resources based on an optimal mix of financial results, and for using targets as a basis for compensation.
Within individual or team control	Employees should be empowered to meet their goals and rewarded on the basis of their individual or team performance. If external factors significantly influence the measure, employees may be compensated based on luck with the external influence, or compensation may be unjustly withheld despite having done an excellent job. In either case, motivation is devalued.
Identifiable and understandable drivers	Employees must understand how to achieve their targets. Depending on the measure, this may require assessment of teams and their training needs. If employees don't understand what drives performance or they don't have the necessary skills, they can't make the improvements that need to be made. This greatly reduces the value of having targets.
Linked to strategy	Ultimately, every measure - individual or team - should tie back to the strategic goals of the business. If the measure(s) covers only a small subset of the customer base, or too narrow customer perception, then overall performance improvements aren't likely to be achieved.

It isn't enough just to have the right measures selected and in place. It is also important that these targeted measures encourage the right employee behaviors. The right measures with the wrong settings may be as bad as having no measures at all. The following are some guides for setting targets that motivate positive employee and team behavior.

Principles of Target Setting

Target Setting	Implications
Stretch targets, not easy targets	Targets are intended to motivate improved performance - to take a significant step towards the strategic goal. If the stretch can't be achieved, employees may not try because they'll believe they're going to fail anyway. If the targets are too easy, employees won't need to try very hard, and potential improvement will be diminished.
Supported with appropriate resources	Targets need to take into account the resources available, and other factors that may influence performance over the year. Even reasonable targets won't be attained if the necessary resources aren't committed and available. Setting targets without committing resources will simply cause employees to ignore them.
Strive for continuous improvement	Target setting should always be an improvement on current performance. While mitigating factors may be considered, using current performance measures will result in getting the improvements you asked for... none at all.

A major and often neglected contributor to the success of a customer satisfaction initiative is effective communications and ongoing monitoring of progress. The most meaningful targets with perfect settings are unlikely to be accomplished if they aren't communicated broadly across the organization. While individuals can do great things, most initiatives depend on team contribution, support and commitment. Communication is the most certain way to ensure that everyone works together toward strategic goals and success.

Finally, every initiative benefits from monitoring progress against targets. By measuring progress, management can make sure that the necessary resources are available, and ensuring corrective actions are identified and promptly acted upon. Anything less will diminish the value of your satisfaction initiatives.

These high-level principles are just the beginning of the target selection, setting and monitoring process. Wouldn't it be nice if you could simply turn the crank and have the optimum measurements and settings come out? Of course, it's never going to be that easy but if you want to get closer to this ideal, don't miss the Winter Issue of CFI Group Insights!