12 Aug, 2018

Adding 10% to your bottom line
Every business is looking for the edge on how to be more profitable. The amazing thing is that there is one thing which has been shown again and again to improve the financial performance of businesses by at least 10%. Yet the vast majority of organisations don’t do it.

What is it?

Engagement

We have traditionally tried to get the best from people using the so-called motivational techniques of ‘carrot and stick.’

“We pay people (carrot) so they should do what we tell them.”

“If you don’t do as you are told, you face disciplinary measures (stick).” 

Now, I’m not saying that clarity over acceptable levels of conduct in your organisation shouldn’t be there. But what this will get you is a minimum standard of behaviour. It is not going to get the best out of people.

Telling people what to do – in other words, dictatorship – never works.

What does get the best out of people is autonomy mastery and purpose. 

Leadership expert Chris Roebuck recently told me that, from his research, only around 30% of people in organisations are fully engaged. 

Engagement, he explains, is where they release discretionary effort – committing fully to helping the organisation achieve its goals and going above and beyond when necessary.

What’s more, he told me, when a business does the simple things which build engagement, the results are clear to see.

Better results don’t come from costly projects and complex software (of which only about 30% are ever fully implemented, let alone see results – but more of that another time). No, better results come from simple things. Simple things like:

  • Sharing the vision with your team
  • Appreciation of what people are doing
  • Listening to people and their ideas
  • Delegation and the autonomy for people to do it their way
  • Freedom to make mistakes and learn
  • Giving people challenging work to do

It isn’t even hard. Most of it is common sense – even if it isn’t common practice.

Four steps to help you add 10% to your bottom line

  1. Watch this short excerpt from an interview with Chris Roebuck

2. Consider ways in which you can show your team that you value them every single day.

Hint: telling them is a good place to start. You’d be amazed the effect it has when you just say, “I really appreciate the effort you are putting into that.”

3. Write out your own elevator pitch which explains where your business is going.

If that seems hard, it means you really need to do it. Share it with your team and ask them to help you refine it until it makes sense.

4. Ask the team, “How can we get better?” and listen to the answers.

Then ask for their help and ideas on how to take things forward.

1 Comment

  1. Johne435

    A big thank you for your article.Thanks Again. Great.

    Reply

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