In the most current Fortune Best Company issue, the editors provide some “linkage” information explaining the relationship between happy employees and business success.

There were numerous “blue ribbon” companies who showed up on several annual lists with two organizations showing up on seven “best of” lists:  P&G and Microsoft.  Each company was on the Fortune and Global 500, each on the Fortune Best Companies to Work For list, and assorted “great/admired/best” lists based on their industry.  Not shabby companies by any means. 

Both lead in their market.  Both are known for innovation and stability.  Both have consistently made money in up and down markets.  Both are known for strong employee-centric programs, including training and development and opportunities for advancement.  Market leaders in gross margin, EBITDA, revenue per employee, profit, operating margin and other stuff.

There are another group of companies on six lists:

• Apple
• Cisco Systems
• Citigroup
• Eli Lilly
• General Electric
• IBM
• Intel
• Valero Energy

Not a bad portfolio.  Some pretty well-known and highly-respected organizations.  What some people might call “leaders in their industry…  across time.”  That longevity is important, it’s what employees rely on and shareholders demand.  It’s what separates the great from the good.

However both groups of companies are biased, if only based on their reliance on company size as an indicator of being “blue ribbon”.  Companies like Boston Consulting Group, Nugget Markets, and Griffin Hospital are best of companies with 1500 or less employees.  These companies, like their much larger cousins still do the best they can for their employees and their customers and patients.  And it shows on their bottom line too.

There may be an interesting Chicken and Egg Question here.  Which comes first? 

Do great companies start with great employees who engender customer loyalty and retention?  Or do loyal customers of an organization create a desire among prospective employees to work there and continue the tradition of providing excellent service?  Do employees work harder at companies where customers are treated better?  Or do customers appreciate companies who provide an ethical environment for their staff?  Do employees value the importance of having excellent companies on their resume?  Are customers willing to travel farther and spend more based on the relationship they have with employees at a company?

OK, here goes my empirical answer, based on nearly 30 years of customer and employee research experience…

Ready?

IT DOESN’T MATTER.  IT JUST DOESN’T MATTER.  NOT AT ALL.  NONE.  NOT EVEN A LITTLE BIT. 

Why should it.  Facts are facts. 

Engaged employees make for loyal customers who buy more products and services.  Whichever one comes first doesn’t matter, as you can’t have engaged employees or loyal customers without working on the issues important to both groups.

You have to have a chicken to have an egg to grow up to become a chicken to have another egg to become another chicken, etc…  I’m pretty sure that is how that whole chicken/egg thing really works.  Each depends on the other to grow and prosper. 

One of those two by itself is the start of a tasty omelet, the other is a great companion with waffles.