Alignment of Key Leaders (a business argument)

I just finished reading a fascinating article that made reference to specific UK based findings relating to organizational leadership.  In summary, the research confirmed that:

• Ineffective management is estimated to cost UK businesses over £19billion per year in lost working hours
• 43% of UK managers rate their own line manager as ineffective – and only one in five are qualified
• Nearly three quarters of organizations in England reported a deficit of management and leadership skills. This deficit is contributing to the productivity gap with countries like Germany and Japan.
• Incompetence or bad management of company directors causes 56 % of corporate failures

From my perspective, the aforementioned summary is reflective of what I witness on a regular basis (throughout North America).   The study also confirms that effective leadership can have a truly significant impact on organizational performance, both in the immediate and longer term.  The research also indicates that:

•   Best-practice management development can result in a 23% increase in organizational performance.
•         Effective management can significantly improve levels of employee engagement
•         A single point improvement in management practices (rated on a five-point scale) is associated with the same increase in output as a 25% increase in the labour force or a 65% percent increase in invested capital.

 What does the above-mentioned summary mean for organizations that are looking for a competitive advantage in a challenging market?   It should be quite evident that when organizations are searching for competitive advantages, the workforce itself represents the largest reservoir of untapped potential.  Specifically, front-line leaders can have a tremendous impact when they provide the appropriate levels of referent leadership. 

It’s evident that it is becoming increasingly difficult to attract and retain competent people.  It’s also (very) evident that levels of employee engagement in many organizations have fallen far below required levels.  Study after study reinforces the fact that levels of employee engagement have a direct impact on organizational performance and ultimately bottom line profits.

My advice to business owners/senior leaders is to give consideration to establishing and introducing practical, best in class practices, procedures and strategies that will create opportunities to realize increases in organizational performance (as outlined in the UK study).     

I was working with a client out of Mexico City; the owner of the business had realized tremendous growth and organizational success.  That said, he wanted to position the organization (50 industrial sector production & retail service centre’s throughout Mexico) for long-term sustainable profitable growth.

Working with the senior leadership team, we developed business plans and strategies that were built on a foundation that fostered an organizational culture that facilitated:

• The Alignment of Key Leaders
• Employees Embracing Change
• Setting Leaders up for Success through Mentoring and Training

The business owner and I met over dinner to finalize the strategy; he clearly stated that he was ‘frightened’ about the initiative.   He went on to clarify that venturing out of his comfort zone, holding key leaders accountable for performance and transitioning to a constructive culture was intimidating to say the least.  I simply responded with asking “what is the cost of not embracing the agreed upon strategies”?  Needless to say, we moved forward with the strategy, the organization has not looked back!

Quite simply, organizations of all sizes can adopt proven strategies that create increased levels of engagement that ultimately lead to improved organizational performance.  That said, the foundation mentioned above can be likened to a three legged stool.  Eliminating one element (or leg) will result in the overall strategy collapsing down. 

Integral HR Solutions Inc. works with organizations of all shapes and sizes.  We work in collaboration with senior leaders to establish a desired (optimal) culture.  We then facilitate leadership training and coaching that creates alignment amongst senior leaders.  Our training and developmental programs assist organizations introduce proven methodologies that allow for the successful introduction of change initiatives.   

Once such an initiative takes traction, organizations become less dependent on our support.  Leaders take accountability for ensuring that all employees are set up for success. 

Additional information about our support and services along with client testimonials are posted on our website at www.integralhrsolutions.ca.