Sitting is NEW Smoking then What is NEW Solvency Ratio ?

" Sitting is NEW Smoking. " Rujuta Diwekar leading diet consultant writes in her new book - 'Dont Lose Out, Work Out'.  

We all know and believe that smoking can cause serious diseases to the smoker likewise if you remain seated for longer , poorer  your health & you may die earlier, no matter how fit you are. This is a new scientific research. Physical activities through out the day is necessary to remain fitter and avoid many modern day diseases.  

Applying this research to our topic of Customer Experience (CX);

Customer Experience Index is NEW Solvency Ratio. Yes this is also true.  You may have very good EBIDTA margin , Current ratio , DSCR , ROCE, and PAT but if your CX Index if not healthy, all these robust ratios are just temporary. CX Index will indicate whether these health will be maintained , is improving or deteriorating. 

Problem is , like we don't measure how many hours we sit during the day, we even don't measure CX index of our enterprise.  Things we don't measure , we don't focus upon. But the fact remains , all our critical financial ratios are ultimately dependent upon our Customer Experience Index. 

Better CX enables more sales, quick sales TAT, lower marketing cost, better margins, better cash flow, lower debt, higher margins means better stock valuation, attracts more capital. CX Index is really critical measure of enterprise health. It can also be used as preventive measures to stop deterioration of financial health. In can tell in advance state of financial health to expect. 

You can measure CX Index by NPS , CES or combination of the two or define your own CX scorecard. You can do it in more detailed way by measuring experiences at all the touch points, different customer segments/persona, different product wise. More intense the scorecard ,  more it will be actionable. 

Before your CFO tells you state of your enterprise's health your Chief Experience Officer (CExO) {Of-course if you have one} must tell you that.

Next time before you think of smoking , think of sitting and before you think of financial solvency ratios , think of CX Index. 

Financial Ratios - Outdated to measure SUCCESS

ROI, ROCE, EPS, PE, EBIDTA  all these words have assumed so much importance in business world that what it takes to achieve is completely ignored. Cost of achieving better and better these figures is so huge that it consumes humanity , environment , ethics and every other things. 

Capitalist society we are in has attached extreme importance to the figures/ratios stated above. All our business actions are only measured on these parameters.  There is no measurement of corrupt practices indulged , environment polluted , stress generated among people working for the organisation , customers fooled , under-served and even cheated to achieve these ratios. 

Single minded focus on financial ratios is killing the ethical and human factors in business. Growth at all cost is doing harm to the society and benefits handful of shareholders. We are talking about sustainable business practices  keeping environment in focus however what about sustainability of ethical norms human sustainability ?  

We have seen in the movie Guru , one company takes on the Govt rules by breaking and indulging in unethical practices. Who has authorised them?  What if every company start doing that? Just for personal gain ethical standards have been broken and justified for business & share holders wealth creation. We live by quoting that as an illustrious example. It is nothing but collapse of value system and unethical conduct for personal gain of a few. 

Just focus on financial success is the cause of all these nonsense prevailing in business world these days. There are a few companies like Zappos.com which make DELIVERING HAPPINESS as their business mission and not only financial ratios. We need more and more of such companies and rest assured in times to come these are the kind of companies which will be valued more than just financial ratio focused companies. Non manipulative and socially sustainable measures will be in demand, 

Any one of the Indian companies dare to do things differently ?