In 2004, Harding & Yorke launched a groundbreaking benchmark named ERIC (Empathy Rating Index Company). Semi-annual measures were carried out on 200 companies from 12 different industry sectors:
Life Insurance; Home Insurance; Loans; Health Insurance; Telephone Banking; Catalogue Clothing; Mortgages; Mobile phones; Motor Insurance; Credit Cards; Savings & Water Companies
H&Y trained researchers analysed interactions with the companies and their customers and measured them on two parameters: How did they make their Customers feel and how dis customers feel by the way they were processed.
After 4 years and millions of captured data points the findings were examined by Jamie Lywood and Professors Merlin Stone and Yuksel Ekinci to establish if there was any link between the empathy measures and profitability.
In 2008/9 we were able to declare strong reliability and a very high correlation with Profit (as measured by Return On Capital Employed). The subsequent Whitepaper was examined by a peer group and published as an Academic Journal by Palgrave Macmillan.
You can view or download this Journal by clicking below on Academic Journal.
Chicken Soup is a Whitepaper written by Jamie Lywood that examines the influence of empathy and HR Elements of OPEX (Operational Expenditure)
Jamie Lywood writes:
"Many of the organisations I talked with in 2009 were focusing on OPEX (Operational Expenditure) efficiencies, rather than CAPEX (Capital Expenditure) programmes during Q1/2 of 2009. People, Process & Technology programmes were being reviewed for opportunities to impact OPEX for cost efficiencies and to drive revenue improvement.
In this article I focus on the issues and concerns these discussions raise about the “People” part of the OPEX equation and discuss the impact of Empathy on HR. My team, at the time, were working with leading suppliers of technology like Cisco, Verint, SAP and others to look at the process & technology impacts of change on OPEX and these subjects will be discussed in due course.
The link between the ERIC measures and bottom‐line results has been well documented and still represents the only measure of its type in the world to show an academically proven correlation with profit. However, whilst this is still a highly influential and relevant finding, major concerns exist about the current economic conditions and the appetite for significant CAPEX Programmes".
You can view or download this paper by clicking below on Using ERIC to influence HR elements of OPEX Spring 2009.
Scales, Samples and Theoretical Tolerances
, written by Jamie Lywood examines the pros and cons of measurement techniques and scales used for measuring the Customer Experience.
Jamie Lywood writes:
'Over the years I have come across every conceivable measurement technique, numerous scales as well as the most horrendous and blatant misinterpretation of quite simple data. It is no surprise then that we are often asked about the H&Y Absolute Scale; where it came from? Is it valid? And, how can we interpret it? In this Whitepaper I offer some explanation and examination of scales, sample sets and theoretical tolerance used in the H&Y methodologies'.
You can view or download this paper by clicking below on Scales, Samples and Theoretical Tolerances