GE Joins the War Against Bad Profits

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.”