Good leaders bring out the best in their people. Bad leaders diminish performance. When you add up the costs over an entire organization, the bottom line impact can be staggering—an amount equal to 7% of a company’s sales according to responses from people at 200+ companies who have used The Ken Blanchard Companies Cost-of-Doing-Nothing Calculator.
That analysis found a 14-point customer satisfaction gap, a 16-point employee productivity gap, and a 45-point employee retention gap which translates into over $1 million dollars for the average organization.
In looking at the ways that leadership impacts each of these three areas, separate Blanchard research into the Leadership-Profit Chain and Employee Work Passion has found that better day-to-day operational leadership practices—including those that promote autonomy, collaboration, connectedness, and growth can significantly improve employee intentions to stay with a company, perform at a high level, and apply discretionary effort in service of company…
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