How do you reduce costs and improve productivity as the ‘economy tightens’?
Saturday, March 1st, 2008Having the appropriate employee survey ensures you engage your teams and that you leverage their collective brain power. Using this approach to help you reduce costs and improve productivity as margins erode is one of the safest ways to protect profitability.
There is significant evidence that validates the exciting concept labeled “The Wisdom of crowds”. In his book James Surowiecki, explains the notion of solving problems or identifying opportunities using ‘the wisdom of crowds’. He argues and demonstrates through various examples that “the collective input of a group of people” is much more powerful than the view of one or two specialists.
In the business environment, often CEO’s and a Managers’ management style (and habit) ignores the valuable input of their teams especially and importantly ‘at the front’ line. Combine this with the management fear “As the boss, I’m supposed to know everything” often ensures that the collective opinion is ignored.
Many companies use the information collected from their people to help steer and drive business objectives, but as importantly, identify challenges and opportunities overlooked by senior management. As the economy tightens and shareholders look to protect their investments, business leaders are under increased pressure to deliver reduced costs and improved productivity.
Two key management questions and opportunities arise when business is under increased pressure to perform!;
1) Do you really understand how people feel about working for you? Their perceptions, views and opinions of the company, the brand and management in general.
2) What are your strategies to fully engage your people in the current business challenge? Have you used the principle of “The wisdom of Crowds”?
Significant success with the above two points is experienced by those companies who regularly measure and act on employee feedback. In addition, many Australian companies are using other principles of Harvard’s Service Profit Chain (Heskett etal) to create a culture that ensures their people are engaged in the vision, goals and business challenges of the day.
My clients and network of CEO’s who we have helped with practical approaches to implement these sound business processes are reaping significant business benefits. Most people think employee surveys are focused on the ‘warm and fuzzies’ … think again! It could be the single best investment you make this year in driving business performance.