This is about issues and opportunities around people and performance.
Maximum organizational effectiveness comes from aligning people to work together on shared common goals and providing them with the information and resources to get things done. In most cases, organizations function reasonably well within departments, with managers meeting goals and expectations. There are issues, but they are not departmental because shared goals and measurements as well as group expectations by management tend to give reasonably good levels of performance and innovation. People tend to be good problem solvers and will work together fairly well.
There are a variety of statistics clearly demonstrating that team-based behavior can offer a wide range of positive impacts on organizations of all kinds:
- Globally, only 1 of 5 workers is giving full discretionary effort on the job. We often call these “exemplary performers” but they are simply engaged
- Almost 4 of 10 workers are disenchanted or disengaged – they are not performing to their capability
- In the US, only 3 in 10 feel engaged and the same number feel disenchanted or disengaged – they are not contributing much nor getting satisfaction in their jobs
- Only 1 in 10 respondents agreed that senior leaders in their companies actually treat employees as vital corporate assets
- The more engaged employees are more likely to stay with an organization, but 40% are “passive job seekers.”
- Fully half of the disengaged have NO plans to leave the company nor are they even passively looking for other employment! (scary!)
There are strong connections of engagement to company results:
- Companies with high employee engagement had a 19% increase in operating income and a 28% growth in earnings per share
- Companies with low levels of engagement saw a drop in operating income of 32% and a decline of 11% in earnings per share (from a TP one-year study of 50 companies)
- Companies with high engagement had a 3.74% increase in operating margin and a 2.06 net profit margin
- Companies with low engagement had a -2.01% decline in operating margin and a -1.38% net profit margin (from a TP study of 40 companies)
Can we hear a Thump Thump? Are we really making progress?
There are lots of statistics around clearly demonstrating why we need to improve. In other posts, I will share some ideas for making things improve. There are many things we can do.
Dr. Scott Simmerman is a designer of team building games and organization improvement tools. Managing Partner of Performance Management Company since 1984, he is an experienced presenter and consultant. Connect with Scott on Google+ – you can reach Scott at firstname.lastname@example.org
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