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Net Promoter Community > Fred Reichheld's Blog > 2006 > April > 19
 
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GE Joins the War Against Bad Profits

Posted by FredReichheld on Apr 19, 2006 2:36:19 PM

There is good news to report from the battlefront.  GE has joined the growing list of companies that have embraced NPS as the weapon of choice in the struggle to eliminate bad profits and re-energize profitable growth. GE Healthcare piloted NPS during 2005, and the results were so promising that this year GE is deploying NPS across all of its businesses worldwide.

 

 

In GE's 2005 Annual Report, CEO Jeff Immelt indicated his personal commitment to the Net Promoter initiative, devoting a full paragraph of his letter to stakeholders explaining the NPS rollout):

 

 

"Lastly, we are using a simple metric called Net Promoter Score (NPS) to measure how customers view GE. NPS creates a view of customer loyalty. The absolute score is less important than the trend. We learn from both promoters and detractors. Most importantly, we have been able to associate NPS improvement with growth. NPS is simple and we can use it across the Company. Our ultimate goal is to use improvements in NPS as a measure in how leaders get compensated."

 

 

Why is this such good news? When a widely admired firm such as GE announces a public commitment to NPS, people notice. Moreover, few organizations can equal GE's capacity to deploy initiatives to generate superior results. Remember what GE accomplished with Six Sigma over the past decade. GE is likely to serve as the de facto best-practice model for many other organizations aspiring to deploy NPS.

 

 

In fact, GE execs are already comparing NPS to Six Sigma. Both involve much more than simply a measurement process; they embody a full set of tools and disciplines that must be learned and incorporated into daily business practices, all the way from senior execs at headquarters to employees on the front lines. When Business Week recently asked GE Healthcare's Chief Quality Officer, Pete McCabe, about his expectations for NPS, he replied: "I have little doubt that this will be as big and long-lasting for GE as Six Sigma was."

 

 

Beginning in 2006, all of GE's businesses will begin reporting NPS.  They join a growing list of companies, including SAP, American Express, Intuit, Fireman's Fund, eBay, and MSN, all of which have begun to systematically measure and manage NPS.



May 4, 2006 5:11 AM Guest Guest  says:

I am driving NPS at my business unit in GE. It is definitely the hottest thing here right now... Six sigma projects are being chosen on the basis of NPS results.

 

May 14, 2006 10:37 AM Guest alan chen  says:

Hi Fred,

 

I bought one copy of your book "the Ultimate Question" in mid April.  I quickly fell in love with this book as I read more and more.  In about 20 days, I read it twice.  I am very happy that the book provides me with a realistic and tangible direction to guide my company.  My company is a bakery chain in Chengdu city, Sichuan Province, China.  We currently have 15 shops and are expanding.  We are very small and new company in comparison with those industrial giants mentioned in your book.  I have developed a three-steps methodology to practice the NPS management.  The first step is training.  We have set up a symbolic "Five-stars Service Training College" within the company.  We have already started the one-month training course for our store sales staff.  The course focuses on all aspects of a store management and is being well received.  The second step will be practice.  As the training is going on, we will encourage practice of the serivce training.  And finally, we will start calculate and research our company's NPS and introduce this concept to our management and stores.  In a word, we will first promote the awareness of good customer service among our staff by training, then we practice the good customer service, and finally or naturally, we bring the system of NPS.  We confidently have a hope to significantly improve our customer service and to enhance our brand by following the NPS direction.  During the whole process of practicing the NPS management, I hope to discuss with you and your colleagues.  And I also hope that I can bring the NPS concept to the business world in China.  --Alan Chen, Joyfoods, China

 

May 25, 2006 5:12 AM Guest stone  says:

Dear Fred:

 

This is Stone from BSM(Shanghai), we are designing a workshop program focused on: Customer Loyalty Management.It's a trans-industry workshop program on end-users, FMCG,manufacturers,Service, etc.

 

 

I've learnt that You're a world-renowned customer loyalty management consultant, hereby BSM is officially inviting you to be the workshop coach for two days.

 

Our delegates mostly come from the world's top 500, and it's a very good opportunity to new establish business relationship with them.

 

What do you think about that?

 

Thank you very much, I am looking forward to your reply.Details will be talked about later on.

 

Best regards!

 

Stone