Think Discretionary Effort Doesn’t Matter? Think Again.
Thursday, I spoke to clients and guests of Russell Montgomery Associates, a Tennessee-based talent management and leadership services firm. Based largely on our new book, Contented Cows MOOve Faster, my remarks centered on the effects of discretionary effort in the workplace, and the leadership practices that inspire people to offer it up.
The business case for pursuing an engaged workforce that’s bringing its “A game” to work every day is well made in the Towers Perrin Global Workforce Study that was released on Monday. Comparing business results for those organizations with the most and least “engaged” workforces over a three year span, the study suggests that those places with the higher levels of Oomph generate 57% higher operating income, 39% greater EPS, and about 5.7% greater operating margin growth. Consistent with our firm’s research, the study finds that less than 25% of the workforce is, by its own admission, going all out. In other words, there is a lot of improvement to be had here.
One of the absolute drivers of an individual’s decision about whether or not to commit, really commit their effort to an organization is the degree to which they find the leadership of that organization to be worthy. To be sure, leaders are measured by a number of yardsticks, but one of the main ones has to do with authenticity. Is this person really who he says he is? Is she the real deal? Are they comfortable in their own skin, or is there a petty tyrant trying to get out? Are they as concerned with being real as they are being right? How often (if ever) do the words, “I don’t know” or “my fault” cross their lips? Do they spend more time building up those around them, or buffing their own image? Are they as considerate to the coffee shop waitress or shoeshine guy as their golf partner? Do they know what they stand for? Are you sure? The answers to these questions matter a lot if you’re hoping to earn the benefit (and that’s really what it is) of a person’s discretionary effort.
In a US News and World Report piece about a year ago, former Medtronic Chairman and CEO, Bill George wrote an excellent piece entitled, Truly Authentic Leadership. I would strongly suggest you read it before you hire another manager, or, for that matter, before you vote and hire another President or other elected official.
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