“Quality” is easy to measure and manage in some contexts, and
extremely difficult in others. Businesspeople have a pretty good idea
how to judge the manufacturing process that yields a snazzy new handheld
device, for example. But what about the retail employee’s attempts to
sell the gadget? Or the call center employee’s efforts to help the
customer navigate its eccentricities? Businesses aren’t especially good
at measuring and managing the quality of those processes—or indeed of
most work done by non-manufacturing businesses and units.
Yet it’s essential that organizations learn to measure and manage quality in all kinds of business settings. In manufacturing, value is created on the factory floor. In sales and service organizations, and in many professional service firms, value is created when an employee interacts with a customer. Indeed, the employee-customer encounter is the factory floor of sales and services. If these organizations are going to achieve meaningful operational and financial improvements, the employee-customer encounter must be managed with great care.
Quality improvement methodologies such as Six Sigma are extremely useful in manufacturing contexts, where ingredients with predictable properties are repeatedly combined in the same ways, but they’re less useful when it comes to the employee-customer encounter, with its volatile human dimensions. To address this problem of fit, we’ve developed a quality improvement approach that we call Human Sigma. Like Six Sigma, Human Sigma focuses on reducing variability and improving performance. But while Six Sigma applies to processes, systems, and output quality, our approach looks at the quality of the employee-customer encounter, weaving together a consistent method for assessing it and a disciplined process for managing and improving it.
As we developed our thinking about Human Sigma, we arrived at several core principles for measuring and managing interactions between customers and employees:
Yet it’s essential that organizations learn to measure and manage quality in all kinds of business settings. In manufacturing, value is created on the factory floor. In sales and service organizations, and in many professional service firms, value is created when an employee interacts with a customer. Indeed, the employee-customer encounter is the factory floor of sales and services. If these organizations are going to achieve meaningful operational and financial improvements, the employee-customer encounter must be managed with great care.
Quality improvement methodologies such as Six Sigma are extremely useful in manufacturing contexts, where ingredients with predictable properties are repeatedly combined in the same ways, but they’re less useful when it comes to the employee-customer encounter, with its volatile human dimensions. To address this problem of fit, we’ve developed a quality improvement approach that we call Human Sigma. Like Six Sigma, Human Sigma focuses on reducing variability and improving performance. But while Six Sigma applies to processes, systems, and output quality, our approach looks at the quality of the employee-customer encounter, weaving together a consistent method for assessing it and a disciplined process for managing and improving it.
As we developed our thinking about Human Sigma, we arrived at several core principles for measuring and managing interactions between customers and employees:
- It’s important not to think like an economist or an engineer when you’re assessing the employee-customer interaction. Emotions, it turns out, inform both sides’ judgments and behavior even more powerfully than rationality does.
- The employee-customer encounter must be measured and managed locally, because there are enormous variations in quality at the work-group and individual levels.
- It’s possible to arrive at a single measure of effectiveness for the employee-customer encounter; this measure has a high correlation with financial performance.
- To improve the quality of the employee-customer interaction, organizations must conduct both short-term, transactional interventions (such as coaching) and long-term, transformational ones (such as changing the processes for hiring and promotion). In addition, the company’s organizational structure often must be adjusted so that the employee-customer encounter can be managed holistically.


