So we started asking ourselves: What kind of less obvious metrics could we use to actually evaluate our employees' sense of meaning, or our customers' sense of emotional connection with us? For example, we actually started asking our employees, do they understand the mission of our company, and do they feel like they believe in it, can they actually influence it, and do they feel that their work actually has an impact on it? We started asking our customers, did they feel an emotional connection with us, in one of seven different kinds of ways. Miraculously, as we asked these questions and started giving attention higher up the pyramid, what we found is we created more loyalty. Our customer loyalty skyrocketed. Our employee turnover dropped to one-third of the industry average, and during that five year dotcom bust, we tripled in size.

As I went out and started spending time with other leaders out there and asking them how they were getting through that time, what they told me over and over again was that they just manage what they can measure. What we can measure is that tangible stuff at the bottom of the pyramid. They didn't even see the intangible stuff higher up the pyramid. So I started asking myself the question: How can we get leaders to start valuing the intangible? If we're taught as leaders to just manage what we can measure, and all we can measure is the tangible in life, we're missing a whole lot of things at the top of the pyramid.

So I went out and studied a bunch of things, and I found a survey that showed that 94 percent of business leaders worldwide believe that the intangibles are important in their business, things like intellectual property, their corporate culture, their brand loyalty, and yet, only five percent of those same leaders actually had a means of measuring the intangibles in their business.