How Business and Employees Can Both Win: Chrysler and AT&T
by Dr. David I. Levine
A number of companies are creating new systems to measure nonfinancial performance such as quality and investment in human resources. Chrysler, for example, links its chief executive
officer's pay to customer satisfaction ratings. American Telephone & Telegraph (AT&T) has begun tying lower-level executives' pay not only to financial measures such as economic value added (EVA, profits minus the cost of
capital) but also to customer value added (CVA, measured with customer satisfaction) and people value added (PVA, measured with employee satisfaction). AT&T, as with many other companies, also assesses each department on its
progress toward achieving a high-involvement workplace in AT&T's case, using the Malcolm Baldrige National Quality Award's criteria to evaluate its total quality program.(1)
1. John J. Kendrick, "AT&T Universal Card Services," Quality, vol. 32 (January 1993), pp. 27-28.
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