There's a folk saying, "As stable as a three-legged stool." The stability and solidity of a three-legged stool are widely applied not only in folk songs or the Romance of the Three Kingdoms, but also in the field of management science. This article will introduce the 3D (three dimensions) model for business management, as introduced by Professor Kopelman (New York School of Business).
According to Professor Kopelman, business success based on three fundamental factors:
- Customer satisfaction – when purchasing a company's products or services, customers believe they are receiving the best possible value.
- Efficiency in the use of capital and other resources by the business.
- Employee satisfaction – are wages and benefits, career development needs, and personal needs being met?
Kopelman's conclusions are based on research into business models, government and non-governmental organizations. Kopelman chose workers as his survey subjects because, in his view, in the service economy, especially in e-commerce, workers are more important than ever. They are more important than management, customers, or shareholders for the following reasons:
- Employees are the best source of information about a company's business practices.
- Satisfying the needs of employees is the first step in achieving customer satisfaction, based on the principle that a company cannot expect its employees to treat customers the same way it treats customers. better than how they were treated by the company.
- If a company wants to improve business efficiency and satisfy customers, its employees must be satisfied first. Otherwise, this goal of improving business efficiency will "exploit" the energy of its employees and may cause them to leave the company for other jobs.
Kopelman's management model has been highly praised. Gerald Olivero, director of Human Resources Solutions Consulting, a New York-based firm that teaches management to business executives, said: “This research can help managers better understand their jobs. Business managers often try to do what they’re in. Dr. Kopelman’s work helps managers practice their jobs in a ‘complete and simple’ way.”
Large American companies have also adopted the results of Kopelman's 3D business management research. Xerox, a company valued at $20 billion, is a prime example. After unsuccessful attempts to enter fields such as publishing, computer accessories, and others, Xerox shifted its business focus to word processing. Now, Xerox satisfies its customers: from large corporations to small businesses, everyone is pleased with the photocopiers, printers, and fax machines the company provides. In terms of financial management, Xerox is ranked by Fortune as one of the top 100 companies in the US. Xerox has delivered a return on investment for shareholders of up to 62% over the years. Xerox currently has no difficulty attracting investment. In terms of employee relations, Xerox is one of the leading American companies in gaining employee loyalty and dedication. According to a research report by the Center for Advanced Human Resources at Cornell University, in an era where executives typically held positions at a company for only 3 to 5 years, Xerox's longer employee retention was what made it so famous. Part of this success in employee relations stemmed from the company's commitment to empowering employees to exercise their rights.
Since 1995, the company has created self-managed teams and enhanced training to help its workforce operate effectively. The company awards medals and honors those who contribute to improving work processes and developing practical action plans. Furthermore, the company has a system of cash and in-kind rewards, which are continuously upgraded.
In a market where employee loyalty is unpredictable, employee satisfaction plays a huge role in retaining them. Many companies struggle to retain highly skilled workers at times when demand for talent is high. The cost of replacing skilled workers can be a significant financial burden for businesses. According to Professor Kopelman's calculations, companies spend between 1 and 2,5 times the base salary to find a replacement for a skilled worker who has left the organization. In the context of Vietnam's high demand for quality personnel, retaining employees becomes even more difficult as competitors readily offer attractive job opportunities.
According to Kopelman, his model is simply a distillation of practice, as many companies have adopted this 3D management model since their early days. Sam Walton, the founder of Walmart, always strived for customer satisfaction, capital growth, and employee satisfaction. As a result, the company's growth rate doubled every year since 1962. Like many other famous entrepreneurs, Walton believed that: "The way a company manages its employees is what its customers will receive." Walmart's concern for its more than 900.000 employees is considered legendary: the company was the first to offer profit sharing and stock options to its employees. Walmart is also known for sharing information with its employees and respecting their ideas. Every Saturday morning, Walton's office would open to receive employee ideas through a program called: "I have an idea." or "Oh my God! It's Monday!" – meaning, instead of the "second eyes, seventh ears" syndrome among students or the "cutting meals, pumping tires" syndrome among factory workers, Sam Walton wanted his employees to be eager to come to work and be enthusiastic about their jobs every day of the week!
Source: Saga.vn
