Sue Mackenzie

‘NOT JUST ANOTHER DAY’

The Role of Employee Engagement in Delivering the Commercial Strategy

P&O Ferries is the leading UK ferry operatorP&O Ferries is the leading UK ferry operator

More than just a Ferry Operator!More than just a Ferry Operator!

HOTELRESTAURANTS

BARS & COFFEE SHOPSRETAIL OUTLETS

CLUB LOUNGES

PORT OPERATOR

BUREAU DE CHANGE

ENTERTAINMENT

WAREHOUSE

ChallengesChallenges

…. so why focus on Employee Engagement?

Research from around the worldResearch from around the world

Only 31% of employees are actively engaged in their jobs. - BlessingWhite

About 50% of employees are not engaged – meaning they go through each day putting time but no passion into their work. - Ivey Business Journal

Engaged employees are up to 43% more productive. - Hay

‘Disengaged’ employees cost the American economy up to $350 billion per year in lost productivity. Gallup

High - engagement firms had total shareholder return that was 19% higher than average in 2009. In low-engagement organisations, total shareholder return was actually 44% below average. - Hewitt Associates

Engaged employees plan to stay for what they give; the Disengaged stay for what they get. - BlessingWhite

Engaged employees, provide superior service, leading to increased customer loyalty and financial performance. - Heskett, Sasser & Schlesinger

8

The ‘Service Profit Chain’The ‘Service Profit Chain’

Employees

Customers

Profitability

The Service Profit Chain (Heskett, Sasser, Schlesinger, 1997)

THE SERVICE PROFIT CHAIN

CustomerSatisfaction

CustomerLoyalty

Profitability

RevenueGrowth

The Service Profit Chain (Heskett, Sasser, Schlesinger, 1997)

Zones of Customer Satisfaction

Zone of Defection(Terrorists)(Terrorists)

Zone of Indifference Zone of

Affection(Apostle)(Apostle)

8%

Unhappy Happy

50% of these customers are not loyal!50% of these customers are not loyal!The Service Profit Chain (Heskett, Sasser,

Schlesinger, 1997)

THE SERVICE PROFIT CHAIN

InternalService Quality

EmployeeSatisfaction

EmployeeProductivity

EmployeeLoyalty

ExternalServiceValue

CustomerSatisfaction

CustomerLoyalty

Profitability

RevenueGrowth

EMPLOYEEEMPLOYEEENGAGEMENTENGAGEMENT

The Service Profit Chain (Heskett, Sasser, Schlesinger, 1997)

The ‘Not Just Another Day’ Programme

The Customer Journey

Prioritise – Where would you spend your money?

The results

Focus and Measurement

What our Customers thought of…Early Embarkation in Hull:

“It was easy to arrive & embark simultaneously. Especially when travelling with a child”

Really great to get on early, especially travelling with motorcycles on a wet day”

“Brilliant idea to board early makes the trip far more enjoyable and relaxing”

“Excellent, no delay, boarded straight away”

“Well done on exceeding customer service”

Communication and Feedback

What’s next ….

Lessons learnt

• Commitment from the top.

• Keep your leadership team involved.

• Respect and listen to your people.

• Can’t be a one off must be a way of doing things.

• It’s hard work but very rewarding!

QUESTIONS