According to a recent study by McKinsey, one of the keys to improving customer satisfaction is hiring "emotionally intelligent" staff for frontline service.

Quoting the disastrous results of banks which repeatedly issued aggressive sales targets, the study says the problem of customers being turned away by branch staff trying to meet targets unrelated to customer desires was partially overcome when commission structures, pay formulas and training encouraged a less-pressured buying environment.

But the shock result over-all was a fall in sales and customer defections - which led to a new crisis in management circles as sales directors endeavoured to retain customers while still meeting sales targets.

One leading financial institution tried hiring frontline staff with "the right emotional instincts".

The new staff came from retailers and not from banks. As one manager says, "They already have the retail mindset and we get them to understanding banking. They like being up on their feet and don't want to sit behind a desk."

The McKinsey study, The Moment of Truth in Customer Service, by Marc Beaujean, Jonathan Davidson and Stacey Madge, says that recruiting the right people is only part of the challenge.

If sales directors understand four key environmental levers - "carrots and sticks" - that influence staff behaviour, they can make significant progress. These four levers are:

• Creating meaning and clarity of purpose for people in frontline work - thereby addressing their thoughts, feelings, values, beliefs, and emotional needs.
• Improving the capabilities of employees - and influencing their mindsets - so that they acquire the right emotional skills.
• Putting structures, reward systems, and processes in place to back up these changes.
• Enlisting frontline leaders to serve as role models and to teach emotionally intelligent behaviour "Employees deliver exceptional customer service - and perform well at moments of truth - but only if they know clearly what they are supposed to do and why," according to the McKinsey study.

The Weekend Australian, February 24, 2007.