- 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.
