ABSTRACT

Some organizations are driven by the needs of the shareholders to maximize shareholder value. In this situation, top management communicates the organization's goals and the lower levels respond by adopting practices that enhance financial performance. The customer-focused organization continually aligns its people, its processes, its products and services, in fact all aspects of the organization towards satisfying customer needs and expectations. This chapter examines the three ways by which top management are required to demonstrate leadership and commitment with respect to customer focus in clause 5.1.2 namely: demonstrating leadership regarding customer and applicable legal requirements; demonstrating leadership regarding risks and opportunities; maintaining focus on enhancing customer satisfaction. Employee satisfaction drives loyalty, which in turn drives productivity, because replacing experienced workers is costly. Productivity drives value, value drives customer satisfaction, customer satisfaction drives customer loyalty and, ultimately, customer loyalty drives profitability and growth.