Business owners and CEOs are often clear on the vision – but the real challenge is execution. Big plans start strong, then lose momentum as priorities shift, teams drift into silos, or the metrics being tracked don’t clearly tie back to outcomes being sought. 

What makes the difference isn’t more planning – it’s building a system that actually sticks. 

At Checkside, we call this an High Performance Operating System – the way leaders set priorities, establish accountability, check in on progress and keep everyone focused on what really moves the business forward. 

Why an Operating System Matters

Without structure, even the best strategies stall. Our expertise has helped support leadership teams where:

• Regular meetings between the senior team weren’t happening
• Meetings were happening, but accountability was weak
• Metrics were being tracked, but they weren’t the right ones
• Energy was high at planning off-sites, but execution fell flat afterwards

In each case, a High Performance Operating System was a pivotal part of the solution – and it wasn’t about adding more noise. It was about embedding the right conversations, at the right time, with the right focus – to ensure exectuon became part of the strategy process, not an adhoc afterthought.

The Three Essential Elements of a High Performance Operating System

From our work with mid-sized organisations, three elements consistently stand out:

1. Clarity of Focus: Agree on the few key priorities that matter most and make them visible. Then spend the time upfront to plan for successful execution. Design casts the biggest shadow.

2. Measure What Matters: Regularly track performance against KPI’s and progress against Objectives and Key Results. Address any issues at the earliest opportunity to get things back on track.

3. Clear Accountability: Ensure each objective has one accountable person assigned. Link rewards and consequences to KPIs and objectives – in a way that fits your business and culture.

 What Good Looks Like

When a High Performance Operating System is working well, you’ll notice:

• Leaders and teams consistently talking about the same priorities
• Meetings that are short, sharp and focused on outcomes
• Teams identifying and addressing issues early
• Progress that builds – and compounds – quarter after quarter
• Less noise, stress, “busy” work and pet projects that don’t really “move the needle”

How Checkside Can Help

Our work with busienss owners, CEOs and leadership teams focuses on embedding strategic thinking and execution into the way your business runs – not just during the annual strategic planning process, but every day.

We help sharpen your focus, design high performance operating systems that stick and create alignment and accountability that lasts well beyond the strategic planning day. 

The result? Leaders who spend less time reacting to noise and more time moving the business forward towards its performance goals and strategic objectives. 

Final Thought

The question isn’t whether your business has a High Performance Operating System – it’s whether that system is helping your team get the stuff done that really matters. 

The post From Strategy to Execution: Why Businesses Need a Rhythm That Works appeared first on Checkside.

Surprisingly, making the connection between how to have success on the track and traction in business is not always so straight forward. Many of the companies Checkside meet are searching for the right “personal trainer” and game plan to unlock the potential of their business and kick it into high gear.

For many companies, the months leading up to a new financial year are devoted to budget planning as they grapple with the uncertainty of the business environment and economy. High-performing companies use this time to refresh their strategy so it can inform their budget and plans.

What is your process to prepare for the new financial year? What role does strategy play? Is strategy a process, a constant state-of-mind, a rhythm and a roadmap that unites your organisation around a common purpose, set of plans and moments to celebrate or re-evaluate progress? Give these points some consideration while you are next out training:

1. Strategic Alignment: investing the time to bring the senior leadership team together to create or refresh the strategy has these benefits:

• use all the brains and experience around the table to identify the issues, threats and opportunities for the new year
• challenge and update the underlying assumptions of the strategy
• learn lessons from the past year and avoid blind spots
• ensure full engagement of your team in the new plans
• agree on objectives and key results with accountability ascribed to develop an actionable plan; and
• motivate the leadership team around the company’s values and purpose so they have the narratives to do the same with their teams.

A study by Bain & Company found that companies with a clear, well-communicated strategy are 300% more likely to outperform their peers. (Source: “What Separates the Best Companies from the Rest,” Bain & Company)

2. Employee Engagement: not all companies have a clearly defined purpose / mission statement and values and those that do often struggle to connect it to their business strategy and the role of every employee in its successful execution. Having a clearly defined strategy unifies a company around a common “why” and “what” needs to be done to achieve it. In the war to attract and retain the best people, success or failure often rests in the way a company can articulate the role the current employees or new hires will play in the achievement of the company’s purpose and mission.

Organisations with a clear, inspiring vision and strategy have significantly higher levels of employee satisfaction and lower turnover rates. (Source: “The Impact of Leadership and Culture on Employee Satisfaction and Turnover,” Harvard Business Review)

3. Resource the Strategy: budgeting is the process of deciding where and where not to allocate financial resources to achieve an agreed financial result. This tension requires a clear strategy to guide the budgeting process so hard decisions can be made where the resources will create the greatest return for the organisation in the coming year or longer. When strategy directs the budget and organisational changes that are often necessary to keep companies competitive in this VUCA (Volatile, Uncertain, Complex, Ambiguous) environment, a logical, cohesive and clear narrative can be communicated to all employees. A good strategy process includes thought around the key objectives, key results and KPIs to align around what is to be achieved, what to measure as lead and lag indicators and with individuals accountable and deadlines defined.

Companies with a clear, engaging strategy experience a 17% increase in employee engagement and a 19% increase in operating income. (Source: “The Power of Engagement,” McKinsey & Company)

If the thought of the next stage for your organisation makes your heart race, it might be time for a business “trainer” – someone who can help you set the pace, provide the right tools and challenge you along the way.

Having a good “business trainer” to guide you, provide the process, tools and support and challenge you along the way is proven to generate a strong ROI and can get your resting heartbeat down to below 80 bpm.

Contact Checkside for a coffee and a conversation (click here)

The post The power of a clear strategy and three great outcomes appeared first on Checkside.

Efficient? Perhaps. Effective? Not really.

Beware the false economy that is ever present when considering value purely through a pricing lens.

This CEO’s senior leadership team considered their strategy planning process to be a waste of their time.  Sure, they could influence the periphery of the strategy but admitted their engagement in executing the “CEO’s strategy” was less than passionate. They were very good at developing and implementing their own business plans but complained that they were struggling to work cohesively as a team and attract and retain good middle managers.

Aligning all the divisional plans back to the strategy and tracking their progress on big initiatives required the CEO to drive it which created decision bottlenecks. They lacked autonomy and accountability, which created unnecessary friction.

Why is it worth investing in an experienced strategy consultant, gathering your senior management team offsite and springing for lunch? Here are 6 points to think about:

1. Brains Trust: The senior leadership team, including the CEO, bring a lot of the company and industry experience to the table. It is the combination of their insights, wisdom and experience that creates valuable creative tension, challenging, probing and bubbling to the surface the core issue, threats and opportunities that the business needs to focus on to succeed. If the CEO or any other senior executive is not fully engaged in the strategy planning process, a suboptimal result is guaranteed.
2. Facilitation Expertise: Experienced strategy consultants have the skills, experience and tools to lead complex discussions, manage group dynamics, and keep the group focused on the task at hand. They know how to ask the right questions, encourage participation, have a large kitbag of business planning and decision-making tools to draw upon and keep the conversation moving forward. This can help ensure that your strategy planning session is productive and efficient.
3. Cross Industry Insights: “Our industry is special” is a phrase every strategy consultant has heard many times. Indeed, every industry is special, but they have more in common than not. Working across industries, with a large number of businesses and leaders, strategy consultants see firsthand the emerging trends and issues and can discover your blind spots, threats and opportunities from other industries.
4. Helicopter View: Senior leaders are focused on their own department or responsibilities and even the CEO has biases and perspectives that inhibit a truly open big picture view of the organisation. A good strategy is coherent, ties together all the important pillars together, supports the company’s purpose/mission and creates a clear narrative that can be communicated to all current and prospective employees. A strategy consultant knows how to maintain a strategic, not operational perspective, keep the conversation out of the weeds and on the issues that matter most.
5. Increased Accountability: A great strategy consultant has mastered the art of distilling down the strategy and turning it into a clearly articulated document with actionable and measurable objectives together with a Strategy on a Page summary – something that everyone in the organisation can understand and can execute on. The strategy facilitator will ensure that strategy has clear objectives, key results and people assigned accountability for delivery with tangible deadlines. They can also provide follow-up support, helping to ensure that your strategy is implemented effectively and efficiently.
6. Improved Decision-Making: Strategy consultants can help improve decision-making by ensuring that all relevant information is considered, and by guiding discussions towards a clear and well-defined strategy. They can also help to manage conflict and build consensus, ensure everyone gets to speak and is heard and pick up on issues that may be important but not particularly eloquently expressed, ensuring that everyone is aligned and committed to the strategy moving forward.

Some sports teams take the approach of having a player-coach role, combining two important roles that require two different skill sets into one. In an environment where there are few options this may be a convenient alternative.

Great strategy development requires the whole team to rock up on the day match fit, ready to give it their all.  Strategy consultants are integral to delivering an optimal outcome and provide good return on investment when considering the cost of implementing a strategy that falls short of the mark and/or has less than 100% buy-in from the senior team.

Thinking about a better solution for your next strategic planning cycle?  Contact Checkside for a coffee and a conversation (click here)

The post The false economy of hosting your own strategic planning sessions appeared first on Checkside.

The Productivity Commission’s recent 5-year Productivity Enquiry report, “Advancing Prosperity”, raised some serious concerns about the leadership, management and technology skills of Australian executives.

The report highlighted that Australian Managers lag the pack through a systemic and sustained underinvestment in management capability, with Australia’s management capability score signficantly behind that of other OECD countries and labour productivity growth at 60 year lows (see charts below).  The Commission warned that this lack of management capability can have a negative impact on the nation’s innovation and productivity, and it’s a problem that businesses need to address.

Source: Productivity Commission

The Solution: Invest in Building Leadership and Management Capability

At Checkside, we understand the importance of developing strong management and leadership capabilities. We’ve been helping business owners and executives to tackle their growth challenges for over two decades, and a key part of this process is ensuring that they have the right skills and knowledge to succeed.

Accessing and retaining talent is becoming increasingly difficult, so it’s essential that businesses invest in developing their own capability. Without the right management and leadership skills, businesses struggle to build a strong employee value proposition, retain valuable employees, and ensure that their workforce is as effective and efficient as possible.

To help businesses achieve this, Checkside offers a range of leadership development solutions incljuding our latest offerign called Leadership Accelerator. We provide a range of training courses, programs and workshops to help business owners and executives become better leaders and managers. Our experienced team of experts have a wealth of experience in developing management capability within businesses, and they understand the importance of investing in management and leadership capability to ensure their long-term success.

We also provide one-on-one advice and guidance to help business owners and executives identify and implement solutions to the unique challenges they face.

If you would like to learn more about our leadership development solutions, please don’t hesitate to get in touch (click here). We would be delighted to discuss how we can help your business to become more productive and innovative. With our expertise and guidance, we can help you develop the right management capabilities to ensure your long-term success.

1: Reference: Productivity Commission Report “Advancing Prosperity” 

The post Boosting Leadership Skills: A Key to Enhancing Productivity appeared first on Checkside.

By putting these three elements together, companies can get the best out of their staff and really benefit from the results.

Here are four key advantages of blending strategy development and execution with leadership development:

1. Improved Alignment:  When leaders have an understanding of the company’s strategy, and have the skills to carry it out, they can get everyone in the organisation working towards the same goals and objectives. This creates a more focused environment where everyone is moving in the same direction.
2. Increased Engagement:  Staff are more likely to be engaged and motivated if they know what the organisation is trying to achieve and have the tools to get there. This leads to better productivity, creativity, and customer satisfaction, as well as less staff turnover.
3. Better Decision Making: When leaders understand the company’s direction, they can make better decisions. This makes the organisation more agile and able to take advantage of new opportunities – which is critical in a constantly changing world.
4. Improved Performance (ROI):  Investing in leadership development increases the chance of having high-performing teams. Leaders are better equipped to motivate and guide their staff which leads to better results. It’s been shown that this can lead to a 20% increase in performance, which is great news for any business.

By combining strategy, execution and leadership development, businesses can unlock potential and achieve results. It can improve alignment, engagement, decision making and performance, helping organisations build truly high performance teams. In the current volatile, uncertain, complex and ambiguous (‘VUCA’) environment, this could provide just the edge you are seeking.

To learn more about our services around strategy development, strategy execution and leadership development see the Services Page on our website.  If you’d like to discuss further in person, please free to reach out directly on (08) 6298 6400 or reach out via email through our Contact Us page….

The post Outsized Returns from the Strategy, Execution and Leadership Development Overlap appeared first on Checkside.

Figure 1: Checkside’s scaling curve

As any experienced mountain climber will tell you, knowing where you are and where you want to be by when is key to survival and having a well-developed and communicated plan is the key to success.

Having located your company on the Scaling Curve and looked with nervous excitement at the next highest peak, you can now map out an appropriate ascent. CEOs who plan to ascend the scaling curve whilst also investing in the maturation of their Management Operating System are the best prepared, most aware of the challenges and with the supporting internal machinery to emerge into the next scale-up stage with industry leading profitability, robust systems and high performing executive team.

Start-Up

“An organisation formed to search for a repeatable and scalable business model” [1]

Start-up CEOs thrive in organised chaos, dynamically building a product or service. The excitement of hiring and building a team that they trust and bond closely with compensates for the lack of structure, Management Operating System and policies and procedures. They know every employee, maybe even every customer and moving fast is adrenaline for the team. When success strikes how well prepared is the organisation to meet the demands of the more sophisticated customers, a larger workforce and how will the culture survive?

Scale-Up

“A transitional organisation built to develop the ability to execute growth and attract capital” [2].

Scale-ups have moved beyond the Start-up phase as they grow rapidly due to having found product-market fit and are creating economies and efficiencies through their scale.

Moving to Scale-up stage has its risks – crossing the ice crevasses from base camp to the next level is the valley of death for most Start-ups, so how do you survive? Having one foot in Start-up and one foot in Scale-up territory is a start and then slowly shifting the weight as the business and Management Operating System matures.

• A professional sales team and system is created
• Experienced employees are recruited to create processes and procedures
• Roles are more clearly defined, and accountability ascribed
• Strategy becomes an annual event, reviewed quarterly
• Management and finance systems and leadership skills are starting to be developed

 Professionalise

As companies mature their Management Operating System, its complexity and robustness increases, enabling them to weather more storms. CEOs of professionalised businesses have achieved this stage by developing and communicating a clear Scale-up and growth plan. Everyone in the organisation is engaged climbing the mountain.

At this stage the organisation has fallen into a rhythm of monthly, quarterly and annual meetings with a leadership team striving for accountability for their own outcomes and to each other.

• Sales channels are expanding
• Divisions and departments have their own aligned strategic plans and Objectives and Key Results (OKRs)
• Reporting dashboards and profit centre results are in place
• Policies and procedures are maintained and have consequence
• Poor performance is addressed, and positive achievements rewarded with bonuses supported by further investment in leadership skills and culture is ongoing

Enterprise

Of the very small number of companies which reach the Enterprise stage, most have a broader ownership structure, are operated by a professional leadership team (often independent from the owners/founders) and have the reporting, management and financial systems to support it as part of their advanced Management Operating System. From the Board down to shop floor, everyone is aligned on the strategy and their role in achieving the goals.

• Leaders understand the value of 1:1 coaching as they tackle new challenges and complexity
• Documented processes exist on an ERP platform
• Sophisticated reporting functionality and a rhythm of meetings to keep aligned and focused on the OKRs is in place
• Strategy is reviewed quarterly, and planning cascaded down to divisions/functions
• Culture is embedded and supports expansion to multiple geographies and business areas

No two companies’ journey is the same and moving up each stage of the curve can take 5-10 years or more. Checkside has guided hundreds of our clients over the years up many mountains, navigated treacherous valleys and helped those who have lost way get their back on track.  Planning the evolution of your Management Operating System is the key to successfully growing your business and maximising your shareholder value.

Helping our clients navigate the Scale-up Curve is part of our value proposition as trusted advisors and partners in success.

Contact us to talk about where you want to be on the Scale-up journey.
The Checkside Team

[1] https://www.imd.org/ibyimd/innovation/how-to-scale-seven-qualities-of-successful-scale-up-ceos/

[2] https://www.imd.org/ibyimd/innovation/how-to-scale-seven-qualities-of-successful-scale-up-ceos/

The post Climbing the Scaling Curve – A Map for Success appeared first on Checkside.

Talk about this unfolding scenario has been playing like a broken record since it first emerged… but many businesses still haven’t developed sufficient tactics to deal with its implications.

Leadership development could be a key part of the solution…

Unpacking the cliché

So, what’s really behind the cliché that is the Great Resignation?

Well, there’s been a fundamental shift in the talent market and people have adjusted their sights around what’s important.  No longer is remuneration the only primary driver – sure, it’s a key part of the equation but it’s only one part of the complex matrix that comprises what people now value in the employment relationship.

Employee engagement is a massive element behind individuals seeking a change:

Source: https://ergoncmictrends.com/great-resignation-statistics/

An Australian Context

Although the trend began earlier in the US and Europe, Australia has followed suit. The drivers behind the Great Resignation are firmly in play:

• Unemployment is low, creating intense competition for talent

• Wage pressures are building

• Immigration has been restricted in recent years, tightening the talent pool

• Baby Boomers continue to exit the workforce through retirement

• Employees are increasingly open to changing jobs

The combination of these factors creates a challenging equation for mid-market businesses seeking to attract and retain quality talent.

What to do?

To attract and retain talent, business owners and CEOs must act now. A strong employee value proposition needs to go beyond base salary and bonuses to include factors that foster engagement and retention.

It’s no longer enough to simply meet the market on pay — understanding what people value and what motivates them is essential. That’s where employee engagement becomes critical.

What drives employee engagement?

The chart below illustrates that whilst remuneration is important, other non-cash components have a higher impact on employee engagement in the short term and also provide long lasting impacts over an 18-24 month period:

Source: CLC HR Engagement Research Survey; 2009 Employment Value Proposition Survey

Best-selling author, Dan Pink, takes this further in his book “Drive: The Surprising Truth About What Motivates Us”¹ where he summarises findings of studies that have repeatedly proven that there are three factors that lead to better performance:

1. Autonomy – the desire to be self-directed
2. Mastery – the urge to get better at doing, underpinning the ability to contribute
3. Purpose – the reason behind why the work exists

Pink goes further in stating that, when you are dealing with higher order jobs that involve greater complexity, simply paying employees more as the primary or sole motivator often leads to poorer performance.

The underlined section above sounds like all leadership roles, right?

Given this, there must be a focus on autonomy, mastery and purpose for all employees – particularly those in leadership and other key roles.  This requires investment from businesses to ensure the capability and competency levels are sufficient for individuals to operate autonomously and develop mastery over their roles.

Leadership development is a critical solution

From a business owner and CEO’s perspective, leadership development programs provide a valuable lever to enhance the opportunity for autonomy and mastery in the workplace.  As a result, it provides a mechanism to increase employee engagement and provide a non-monetary reward that supplements base salary and differentiates the employee value proposition.

This in turn provides a powerful engagement tool that leads to stronger employee retention results and importantly, drives better performance helping deliver tangible business outcomes.

The equation is simple:  Invest in leadership development as part of the solution to engage your talent, drive performance and generate return on investment (ROI).  Further to this, the ROI for leadership development will be greatly magnified for those companies where strategy and purpose are clearly articulated, communicated and understood by the team.

To learn more about how an effective well-structured and run leadership development program can benefit your business, take a look at our Leadership Development Services page or download our Leadership Development Framework.

Alternatively, feel free to drop us an email, give us a call, or book a consultation with our MD.

 Notes:

1. Dan Pink has taken this further in his material around “The Surprising Truth About What Motivates Us”. https://www.youtube.com/watch?v=u6XAPnuFjJc

The post Driving Employee Engagement Through Leadership Development appeared first on Checkside.

In addition to being cost-effective and more accessible for individuals or smaller groups, we have summarised four key benefits below that peer group leadership development can offer:

1. Diverse perspectives: When leaders participate in a peer group, they are exposed to a range of diverse perspectives and experiences. This can help broaden their understanding of their own leadership style, as well as give them new ideas and approaches for managing their team or business. It can also help them gain a deeper understanding of the challenges and opportunities faced by leaders in different industries and businesses of different scale and/or operating model.
2. Collaboration and networking: Peer group leadership development can help managers and emerging leaders build relationships with their peers from different organisations. This collaboration can lead to partnerships, new business opportunities, and the sharing of best practices. Additionally, it can provide a support system for leaders to discuss challenges and receive advice from others who understand their position.
3. Enhanced leadership skills: Participating in a peer group can help leaders hone their leadership skills and develop new ones. Peer group leadership development often includes training and coaching sessions that focus on specific areas of leadership, such as communication, decision-making, and conflict resolution. These skills can be applied within their peer group sessions and immediately in their own workplace, leading to more effective leadership and better business results.
4. Improved employee engagement: When leaders participate in peer group leadership development, they often return to their workplace with new ideas and strategies for engaging their employees and team members. This can lead to a more engaged workforce, which can result in increased productivity, better customer service, and higher employee retention rates.

In summary, leadership development in a peer group setting can offer business owners a range of benefits – with a primary driver being it results in a flexible and cost-effective solution. By exposing managers and emerging leaders to diverse perspectives, facilitating collaboration and networking, enhancing leadership skills, and improving employee engagement, peer group leadership development can help businesses grow and thrive.

To learn more about our peer group leadership development program, click here for more information on our Leadership Accelerator program.  If you’d like to discuss further in person, please free to reach out directly on (08) 6298 6400 or reach out via email through our Contact Us page….

The post The Benefits of Peer Group Leadership Development appeared first on Checkside.

In January 2022, world No. 1 tennis champion Novak Djokovic deported from Australia following a high-profile legal case regarding his COVID-19 vaccination status, preventing his participation in the 2022 Australian Open.

• Lesson: No matter how high-performing a team member may be – you must ensure they are engaged and aligned with your core cultural and strategic intent.
• Question: Are your organisation’s core cultural and strategic intentions clear to all of your people?

In February 2022, Russian President Vladimir Putin signs a decree declaring the regions of Luhansk and Donetsk independent from Ukraine, and begins a full-scale invasion of Ukraine despite international condemnation and sanctions.

• Lesson: Disruption and competitive threats can appear at any time – often with little warning. Ensure you conduct regular competitor and risk analysis, contingency planning and have sufficient reserves on hand to withstand unexpected events.
• Question: What are your competitors and alternatives REALLY up to? How could this impact you?  How would you potentially disrupt yourself?

In May 2022, the Australian Labor Party, led by Anthony Albanese, wins the Australian federal election and forms a majority government for the first time since 2007.

• Lesson: Product-market fit matters! Organisations must know whether they have a product with market appeal before they dive into the delivery phase to avoid wasting time, effort and money.
• Question: Where have you achieved product-market fit? Where haven’t you?

In July 2022, the first operational image from the James Webb Space Telescope, is revealed to the public. Webb will study every phase in the history of our universe, ranging from the first luminous glows after the big bang, to the formation of solar systems (including ours).

• Lesson: Mark Twain once said that “History never repeats itself, but it does often rhyme.” The better and clearer your organisation’s visibility on historical data and results – the better equipped you are to identify trends, issues and opportunities to be investigated, solved and capitalised on.
• Question: How effective is your monthly reporting? Is it clear how you are tracking towards the achievement of your most important operational KPIs and strategic objectives?

In September 2022, Liz Truss is appointed Prime Minister of the United Kingdom. In October 2022, Liz Truss resigned from her post after just 44 days in office, making her the shortest-serving leader in UK history.

• Lesson: Leadership is defined by the presence of followers, those in your team that actively choose to follow the direction you set – even when they have a choice not to.
• Question: Which of your leaders REALLY have follow? Which don’t?

In November 2022, the world population reached 8 billion.  Australia’s unemployment rate remains at 3.5% – its lowest since 1974.

• Lesson: The talent pool is tight and your employer brand and value proposition matters!
• Question: How will you attract and retain the brightest and best in 2023 and beyond?  What can you do to enhance your employee value proposition?

Personal Reflections

The Christmas break is the perfect time to reflect and plan. To help, we’ve included a link to our Personal Development Roadmap – a practical exercise to help you reflect, reset, and set yourself up for continued success in the year ahead.

PERSONAL DEVELOPMENT ROADMAP: download IT HERE   

As James Clear famously said, “You will never find time for anything.  If you want time, you must make it.”  Use the Xmas break to think and plan, and you will reap the rewards in the new year.

We wish you all the best for a safe and healthy Xmas break.
The Checkside Team

The post The Value of Reflecting appeared first on Checkside.

The most powerful drivers centre around purpose – both organisational and personal – and the ability of leaders to help connect employees to these elements in your business.

Unsurprisingly, leadership capability is a critical part of the solution…

Understanding the importance of purpose at work

Nearly two-thirds of employees surveyed by McKinsey indicated that the upheaval caused by COVID-19 has caused them to reflect on their purpose in life.  Nearly 50% of them said they are reconsidering the kind of work they do, with Millennials 3x more likely to say they were re-evaluating work.

These shifting sands identified in 2021 are now playing out in the market with the often referred to “Great Resignation” or “Great Re-alignment” well underway globally.  Australia is not immune to this, and business owners are currently facing large challenges around attracting and retaining talent.

Maturing your Employee Value Proposition is key to success in this regard, with a significant element of success being tied to purpose.  People who live their purpose at work are more productive than those that don’t.  They are also healthier, more resilient and more likely to stay at the company.

Furthermore, when employees feel that their personal purpose is aligned with the organisation’s purpose, the benefits expand to include stronger employee engagement, heightened loyalty and a greater willingness to recommend the company to others.

This sounds like a good start to helping attract and retain talent right?

Mind the Gap

The McKinsey findings also demonstrated that employees want more purpose from work than they are getting.  Over 70% of employees surveyed said that their sense of purpose is largely defined by work but only 15% of frontline managers and employees agreed they are living their purpose at work.  This is in stark contrast to 85% of Senior Executives and upper management who say their purpose is being fulfilled at work.

Major gap identified. The question is how to close it.

What to do?

The choices that leaders and senior managers make are the X-factor in helping bridge the gap and assist people fulfil their purpose at work.  Leaders making better choices can make a positive different to help employees align purpose at work.

The good news for business owners and MDs/CEOs is that this also drives performance and ultimately results, delivering a major multiplier effect.  Engage your talent more effectively and deliver better results.  Sounds like a no-brainer.

McKinsey suggest three ways to focus efforts on this:

1. Start with your organisation’s purpose. It’s the only thing you control directly and underpins engagement at work.  Be careful though – if you talk about purpose and don’t follow it through the results can be devastatingly bad.  On the other hand, when done well, employees are 5x more likely to be excited and engaged at work
2. Reflect, connect, repeat. When employees have a chance to reflect on their own sense of purpose and how it connects to the company’s purpose, good things happen. When this opportunity is afforded, employees are 3x more likely to feel that their purpose is fulfilled at work.  Leaders and managers play a crucial role here in ensuring they lead their team in manner that fosters the ability for this to thrive
3. Help people live their purpose at work. 63% of employees surveyed said they want their employer to provide more opportunities for purpose in their day-to-day work.  Whatever that means in your business, you need to find ways to deliver

For example, make town halls and group forums engaging and interactive.  Consider connecting employees with client success stories and experiences rather than sterile, one way conversations around periodic results.

Leadership capability is essential

From a business owner and CEO’s perspective, the capability of your leaders and leadership team is essential to help ensure this can be successfully delivered.

Your leaders and managers need clear visibility and understanding of strategy, including a clearly articulated company purpose for employees to engage with and align to.  Leaders also need to be well equipped in terms of capability to manage their teams and help them connect to the strategy and company purpose.

They also need to be able to lead their teams in a manner that fosters an environment that is conducive to purpose being fulfilled.  This requires a complex set of capabilities that don’t always come naturally to all, and that often require honing and improving.

Investment in leadership development can form part of the solution to help engage your talent, drive performance and generate return on investment (ROI) for business owners.  To extend this further, the return on investment will be greatly magnified for those companies where strategy and purpose are clearly articulated, communicated and understood by the team.

To learn more about how an effective well-structured and run leadership development program can benefit your business, take a look at our Leadership Development Services page or download our Leadership Development Framework.

Alternatively, feel free to drop us an email, give us a call, or book a consultation with our MD.

Notes:

This blog has been based on the article “Help your employees find purpose – or watch them leave” authored by Naina Dhingra, Andrew Samo, Bill Schaninger and Matt Schrimper of McKinsey & Company, April 5, 2021

https://www.mckinsey.com/business-functions/people-and-organizational-performance/our-insights/help-your-employees-find-purpose-or-watch-them-leave?cid=app#print

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