Performance

The Paul Hertz Group has brought PRINT® to a variety of global and domestic industries. Among them are restaurant and food service, travel and leisure, appliance and electronics, software, communications and media, health care, retail, consulting, pharmaceutical, risk management and insurance, hotel and hospitality, automotive, home construction, financial services, technology, pharmacy services, and universities.

Significant performance improvements have resulted from PRINT®. Below are performance improvement ranges, followed by concrete example(s) for each performance category.

  • Top Line Growth as result of PRINT: 5%-15%
  • Margin Enhancement as a result of PRINT: 30%-50%
  • Bottom Line Savings as a result of PRINT: 15% -50%

Top Line Growth

Margin Enhancement

Bottom Line Savings

Top Line Growth

 

12% increase in annual revenue attributed to PRINT®

  • A technology driven analytics company touted its “ability to innovate” to distinguish its services from the competition
  • Unfortunately, a substantial segment of its target market was comprised of PRINTS® who are more comfortable with the status quo than they are with innovation, which they interpret as being new and untested
  • Once this information was known, the company revamped its sales presentation and positioning, allowing it to beat out major competitors and improve top line growth by 12% in a one year period

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Business unit of Fortune 25 company salvages multimillion dollar contract, and does 180 degree turnaround as a result of PRINT®

  • Repeated problems plagued the business unit’s relationship with its customer
  • Performance issues were being cited by the customer, and penalties were about to be imposed
  • Ten previous meetings took place without resolution
  • About a year and a half into the contract, the business unit leaders invited the customer’s leadership team to a PRINT® session
  • During the Trigger module, it became evident that most of the issues were not performance issues; they were communication issues
  • Once in the same room, employing PRINT® language to clarify expectations, fixes were implemented and common ground was achieved
  • The $600 million project, which had been in serious jeopardy, was not only brought to completion in the allotted timeframe, but all noncompliance penalties were averted

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A global restaurant corporation improves same store sales 5% while using PRINT®

  • The marketing team of a global restaurant conglomerate wanted to tap into customer needs more successfully to increase draw
  • Market research identified that greater “human connection” was needed in their advertising
  • 84% of the marketing team was not naturally “people oriented” • 16% had an intuitive feel for the “emotional/human connection,” but because they were a minority, they did not have a voice
  • The current advertising campaign was a reflection of the dominant PRINT® bias: emphasis on product features, quality, speed, and efficiency – not the most important touch points for the market they were seeking to reach
  • As a result of PRINT® working sessions, team diversity was leveraged, the more “people oriented” PRINTS® increased their value, “thinking traps” were identified and eliminated, and advertising focus shifted direction, including signing with a new agency
  • Same store sales, which had been declining at a rate of 3% per year before the PRINT sessions, increased 2%

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PRINT®, which increases employee satisfaction, yields a 2.6% increase in revenue and a 6.7% increase in customer satisfaction

EMPLOYEE SATISFACTION IMPACT ON REVENUE Employee Satisfaction Improvement – WES Employee Satisfaction Improvement – MES Employee Satisfaction Improvement – average IMPROVEMENT IN FINANCIAL PERFORMANCE
9.9% 41.9% 25.9% 2.6%
EMPLOYEE SATISFACTION IMPACT ON CUSTOMER SATISFACTION Employee Satisfaction Improvement – WES Employee Satisfaction Improvement – MES Employee Satisfaction Improvement – average INCREASE IN CUSTOMER SATISFACTION
9.9% 41.9% 25.9% 6.7%
  • The Paul Hertz Group measures Employee Satisfaction in two ways: comparison of baseline and progress Work Environment Survey (WES) data, and comparison of baseline and progress Management Excellence Survey (MES) scores
  • The Work Environment Survey (validated and used with tens of thousands of employees in hundreds of companies) captures perceptions on: working conditions, training, safety, communication, adequate resources, job expectations, teamwork, organizational structure, compensation, evaluation, benefits, advancement/growth, job security, equal access to employment, and general view of the organization (i.e. given a choice of the same job at another organization, I would still choose to work here)
  • The Management Excellence Survey (also validated and used with tens of thousands of employees in hundreds of companies) measures perceptions on: adequate and timely communication and information sharing, constructive and timely feedback, proactive problem solving, perceptions about respect, bias toward over-managing and under-managing, decision making style, use of positive reinforcement, and commitment toward improvement and building a successful team
  • Through PRINT®, Employee Satisfaction increased 9.9%, as measured by the Work Environment Survey, and 41.9%, as measured by the Management Excellence Survey, an average of 25.9%
  • Studies have proven that a 5% percent increase in employee attitude drives a 1.3 % increase in customer satisfaction and a 0.5 % increase in revenues (Harvard Business Review, January, 1998)
  • A 25.9% increase in employee attitude associated with PRINT® drives a 5.2% increase in revenue
  • A 25.9% increase in employee attitude associated with PRINT® drives a 13.5% increase in customer satisfaction

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Margin Enhancement

 

30% improvement in team engagement scores at a Fortune 500 company correlate 1:1 with 30% increase in profit 

  • The sales team experienced a 30% increase in its team engagement rating over 3-year period
  • During this same 3-year period, the sales team used PRINT® extensively
  • Team engagement measures included faster and better decision making, improved communication, reduced conflict, greater trust, and tapping into other’s strengths
  • The sales team had the lowest team engagement rating company-wide (60,000 people) before PRINT®, and the highest rating after PRINT®
  • The sales team also had the lowest profitability rating company-wide before PRINT®, and catapulted to most profitable after PRINT® – a 30% profitability improvement was achieved during the 3-year time period
  • PRINT® was quickly adopted into other areas of the company as a result

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PRINT® at the negotiating table yields 50% addition ($70 million) to bottom line – ROI 699

  • The brand leadership team of a Fortune 50 company invited the leadership team of its largest customer to attend a PRINT® working session
  • A multibillion-dollar negotiation subsequently took place with the customer
  • All members of the brand team participated in the negotiation
  • During negotiation, brand team members were able to play off one another’s strengths, both parties understood who they were negotiating with (triggers/hot buttons and world views were known), ulterior motives were not assumed, tension was diffused, and common language was adopted
  • 100% of the AVAILABLE business was won by the brand team – $2B to top line because they knew how to effectively “get to yes”
  • These results are in stark contrast with another brand team at the same company who had not yet adopted PRINT®
  • This team did not PRINT® the customer, the complete brand team was not invited to participate in the negotiation, those present did not communicate effectively with the customer or among themselves, the team was ineffectual at making decisions, and unresolved antagonism permeated the entire negotiation process
  • There was a huge disconnect: the second brand team believed they would win substantial business, but it turned out that NO business was signed in the second team’s negotiation – a LOST OPPORTUNITY of $600M
  • The outcome differences with and without PRINT® were dramatic; it was concluded that PRINT® strongly accounted for the difference between success and failure
  • Investment in PRINT® by the successful brand team – $100,000; ROI – 699

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Division of Fortune 50 company has their most profitable year after using PRINT® to improve team performance and accomplish strategic goals

  • A division of a multibillion-dollar global Fortune 50 corporation was highly focused on short-term results and profitability
  • Although sales were strong, future growth required embracing “Aspirational Thinking & Longer Term Focus,” to be balanced with short-term strategy execution
  • The new longer-term orientation did not come naturally to many of the members of the Leadership Team (predictable, knowing their PRINT®)
  • The Paul Hertz Group was invited to conduct a PRINT® working session
  • During the session, strategies were developed to help each PRINT® focus more successfully on the long term – this was not a “one size fits all” approach to the problem
  • Largely due to what transpired during this special PRINT® working session, and the follow-up work that occurred after the session, the division had their most profitable year, which is especially significant because the company is over 100 years old – “most profitable” was a major accomplishment
  • In addition to profitability gains, another significant outcome was attributed to PRINT®
  • The strategies to achieve “Aspirational Thinking & Longer Term Focus” positioned the division as the most attractive partner to a 1000 person technology firm that many of the division’s competitors were seeking to purchase. The division beat out the competition, the tech firm accepted its bid, and the division gained a substantial edge in the homeland security space

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Financial Performance improves 54% from PRINT®

EMPLOYEE SATISFACTION IMPACT ON FINANCIAL PERFORMANCE Employee Satisfaction Improvement – WES Employee Satisfaction Improvement – MES Employee Satisfaction Improvement – average IMPROVEMENT IN FINANCIAL PERFORMANCE
9.9% 41.9% 25.9% 54%
  • The Paul Hertz Group measures Employee Satisfaction in two ways: comparison of baseline and progress Work Environment Survey (WES) data, and comparison of baseline and progress Management Excellence Survey (MES) scores
  • Through PRINT®, Employee Satisfaction increased 9.9% as measured by the Work Environment Survey, and 41.9% as measured by the Management Excellence Survey, an average of 25.9%
  • When employee satisfaction is raised 20%, a company boosts its financial performance by more than 42%, according to research conducted by David Maister, a former professor at the Harvard Business School who surveyed more than 5,500 people from 139 offices in 29 firms in 15 countries
  • When employee satisfaction is raised 25.9% on average, as is the case companies who adopt PRINT®, financial performance improves by 54%

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Bottom Line Savings

 

15% of $100 million deal is saved due to PRINT®

  • A VP of a well known manufacturer was ready to cut a sizeable deal with the company’s biggest customer
  • The natural inclination of the VP (consistent with her PRINT®) would have been to cut and run – making the deal on the spot
  • Prior to PRINT® sessions, she believed her finance lead took too long to come to “obvious answers,” and decisions would often be made without his input – after learning that his PRINT® necessitated the extra time, she felt better about giving it
  • Appreciating the finance head’s wisdom and contribution, she allocated 15 minutes for analysis
  • By waiting a few minutes and valuing PRINT®, the outcome was improved by 15%
  • $15M on a $100M deal was saved – this went directly to the bottom line
  • Investment in PRINT® – $70,000, ROI – 213

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A global tech firm cuts recruiting costs by 50% using PRINT®

  • Before PRINT®, the president and VP of HR focused exclusively on skills, qualifications, and attributes to guide hiring, placement, and promotion decisions
  • More often then they cared to remember, new employees under-performed
  • After adopting PRINT®, a person’s motivations became the highest weighted factor in recruitment decisions – this turned out to be a much more reliable predictor of success
  • By knowing PRINT® and a person’s motivations, the VP and president could accurately anticipate how a person would behave in critical situations
  • $1.125M was saved over a 3-year period by trimming the cost of bad hires (under-performers) and bad fit (putting a person in the wrong job) – this was the direct result of using PRINT® to guide recruitment decisions • As a bonus, retention was improved by 8% after PRINT® was adopted, translating into a $650,000 reduction in turnover costs
  • Investment in PRINT® – $45,000, ROI – 38.4

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Government agency averts 10% budget cut and reduces customer dissatisfaction

  • A high profile, high impact service was provided by the agency for 15 years
  • After being promoted, the program manager was replaced by someone who exhibited similar characteristics and strengths – conscientiousness, detail orientation, personable nature, etc.
  • Within one year of the personnel change, the program imploded and the program budget was in jeopardy – customers were disgruntled
  • Even though the new program manager possessed many of the same qualifications as her predecessor, her motivations could not have been more different (motivations only known through PRINT®)
  • The original program manager was motivated to follow the rules and was comfortable with routine tasks (characteristic of her PRINT®)
  • The new program manager was driven by uniqueness, which made inheriting someone else’s program unworkable. Although she developed a website that enhanced visibility, the uninteresting tasks that made up 95% of the job lacked variety and got her unglued (this would be expected given her PRINT®), so she began ignoring the protocols. This was missed entirely during assignment discussions, as PRINT® had not yet been adopted
  • After PRINT® was introduced, the situation was understood and the original manager was reassigned to the program
  • Further customer ill will and internal damage was avoided, and the program’s budget remained intact

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Reduction of Shadow Behavior saves between $2M and $27M annually depending on company size

VOLUNTARY TURNOVER Annual Cost of Voluntary Turnover 50% of Voluntary Turnover is the result of Shadow Behavior PRINT Reduces Shadow Behavior by: Annual PRINT® DRIVEN COST SAVINGS PER COMPANY
Firms with 100 to 498 employees $2,187,293 $1,093,647 55.3% $604,787
Firms with 500 employees or more $28,543,703 14,271,852 55.3% $7,892,334
INVOLUNTARY TURNOVER Annual Cost of Involuntary Turnover Employee Satisfaction Improvement – MES PRINT Reduces Shadow Behavior by: Annual PRINT® DRIVEN COST SAVINGS PER COMPANY
Firms with 100 to 498 employees $1,592,920 $1,433,628 55.3% $792,796
Firms with 500 employees or more $20,787,262 $18,708,536 55.3% $10,345,820
MANAGER LOST TIME Annual Manager Compensation Employee Satisfaction Improvement – MES PRINT Reduces Shadow Behavior by: Annual PRINT® DRIVEN COST SAVINGS PER COMPANY
Firms with 100 to 498 employees $3,588,000 $1,506,960 55.3% $833,349
Firms with 500 employees or more $39,770,140 $16,603,459 55.3% $9,237,013
TOTAL ANNUAL PRINT® DRIVEN SAVINGS
$40,260 and 299 employees (100 to 499 employee category) $2,230,932
$47,400 and 3314 employees (500 employee or more category) $27,475,167
  • Research studies establish average voluntary turnover at 9.2% per year
  • Annual compensation and average number of employees (from published US census studies)
  • Additional research states that executive turnover cost is 400% of total compensation, and non-executive turnover cost is 175% of total compensation (Keep Employees, Inc., 2000)

Voluntary Turnover

  • 50% of voluntary turnover is the result of Shadow Behavior (Dan Dana, Managing Differences, 1999)
  • PRINT® program reduces Shadow Behavior by 55.3%, as determined by two Paul Hertz Group measures – comparison of baseline and progress Best Self Survey indices, and comparison of baseline and progress Management Excellence Survey scores
  • Annual PRINT® driven cost savings, assuming executives make up 10% of the employee base, are:

– $604,787 (100 to 499 employee category)

– $7,892,334 (500 employee or more category)

Involuntary Turnover

  • 90% of involuntary turnover is the result of Shadow Behavior (Dan Dana, Managing Differences, 1999)
  • PRINT® program reduces Shadow Behavior by 55.3%, as determined by two Paul Hertz Group measures – comparison of baseline and progress Best Self Survey indices, and comparison of baseline and progress Management Excellence Survey scores
  • Annual PRINT® driven cost savings, assuming executives make up 10% of the employee base, are:

– $792,796 (100 to 499 employee category)

– $10,345,820 (500 employee or more category)

Manager Lost Time

  • Research has established that 42% of a manager’s time is spent addressing Shadow Behavior in the workplace (Watson, C & Hoffman, R; Managers as Negotiators, Leadership Quarterly 7(1), 1996)
  • PRINT® program reduces Shadow Behavior by 55.3%, as determined by two Paul Hertz Group measures – comparison of baseline and progress Best Self Survey indices, and comparison of baseline and progress Management Excellence Survey scores
  • Annual PRINT® driven cost savings, assuming managers (including supervisors) make up 20% of the employee base, are:

– $833,349 (100 to 499 employee category)

– $9,237,013 (500 employee or more category)

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