Practice what you preach
Fostering a culture of excellence
Description
A survey involving 139 offices across 29 firms in 15 countries and various business sectors revealed a clear statistical correlation between employee attitudes and a company's financial success. The findings indicate that positive employee attitudes precede financial success, rather than the other way around.
It was also found that the behavior and skills of managers play a crucial role in fostering a motivated workforce that delivers excellent client service, which in turn drives profitability. Effective management, characterized by a consistent alignment between actions and words, significantly impacts employee performance and financial outcomes.
Additionally, the research highlighted certain predictors of financial performance that managers can directly influence, including the importance of a fair and transparent compensation system and the benefits of maintaining high standards without resorting to short-term hiring to meet immediate needs. This study underscores the significance of managerial character, emphasizing trust, respect, and integrity, in achieving business success.
Table of contents
01Survey overview
In an ambitious endeavor to quantify elements typically considered qualitative in nature, a comprehensive survey comprising 74 questions was meticulously distributed to a substantial cohort of over 11,000 employees. Each participant in this extensive survey was an employee earning an annual income of at least $25,000. The employees hailed from a diverse array of 29 distinct companies, each conducting business in a wide variety of sectors across 15 different countries.
The responses garnered from this survey were then subjected to rigorous analysis, juxtaposed against the financial performance metrics of each respective office. The objective was to unearth any causal links and identify the primary drivers of financial success.
To uphold the integrity and reliability of the data collected through this survey, several strategic measures were implemented. Firstly, the 29 companies involved in the survey were all independently operated entities, yet they were united under the ownership of a single publicly traded holding company. This strategic alignment was crucial in mitigating any potential biases that could arise from disparate ownership influences.
The survey reached staff members from 139 different offices, with a significant majority of 68 percent based in the United States, while the remaining 32 percent were spread across Belgium, Brazil, Canada, China, England, France, Germany, Hong Kong, Ireland, Italy, Japan, Mexico, the Netherlands, Scotland, and Spain.
The survey encompassed a broad spectrum of business operations, including but not limited to advertising, public relations, brand identity consulting, healthcare consulting, direct marketing, internet marketing, public affairs consulting, and employee communications. This diversity in business operations was instrumental in ensuring that the survey results could potentially be extrapolated to a wider commercial context.
Each firm maintained its autonomy, allowing for a variety of management styles and approaches to be represented in the data. The firms varied in size, with employee counts ranging from a modest 10 to a more substantial 351 per office, with an average office size of 43 employees.
Every employee earning $25,000 or more was invited to participate in the survey, encompassing a wide range of positions from top managers and partners to mailroom clerks. The survey prompted each employee to evaluate their office on multiple dimensions, including the quality of client services, work quality, market reputation, the strength of long-term client relationships, profitability, growth, work environment, innovativeness, creativity, the extent of collaboration, and opportunities for skill and career development.
02Key survey findings
Companies that have employees who resonate with nine specific predictive statements tend to achieve higher profitability and experience more rapid growth compared to those companies whose employees do not align with these statements.
These statements encompass a wide range of principles, from prioritizing client satisfaction to ensuring high-quality supervision of client projects and maintaining a consistently high standard of professionalism within the office.
Firstly, the paramount importance of client satisfaction cannot be overstated. In the most successful companies, there is a clear and unwavering commitment to dedicating all available resources and efforts towards achieving client satisfaction. This singular focus ensures that there is never any confusion about the company's priorities.
Similarly, the principle of placing client interests above personal agendas emphasizes the effectiveness of a collaborative team effort over individual pursuits. This approach is grounded in common sense and fosters a culture of teamwork and mutual support.
Moreover, the notion that those who contribute the most should receive the highest rewards speaks to the importance of a fair and equitable compensation system. Such a system ensures that individuals are motivated to contribute to their fullest potential, knowing that their efforts will be appropriately rewarded. This is complemented by the idea that management should strive to maximize the potential of every employee, ensuring that each person is fully engaged and contributing meaningfully to the company's goals.
03Survey's four lessons
In the realm of business management, it is imperative for managers to focus their attention diligently on three pivotal areas: the traits that define their character, the beliefs they hold dear, and the actions they undertake.
These elements are foundational to their effectiveness and productivity in steering their organizations towards success.
When delving into the character traits that distinguish effective managers, it becomes evident that their personal attributes significantly influence the success or failure of their businesses. According to survey data, the most successful managers are characterized by their exceptional communication skills, articulating the core values and critical business attributes with clarity. They are attentive listeners, demonstrating sensitivity and thoughtfulness in their interactions.
These managers serve as exemplary role models, embodying the firm's values and attracting top talent by creating a conducive environment. Their accessibility and unwavering honesty, coupled with a non-political, even-tempered demeanor, foster a culture of trust and respect. They are adept at recognizing and utilizing the skills and character traits of their staff, maintaining high standards while being open to understanding the challenges that may prevent these standards from being met. Their enthusiasm and integrity are palpable, inspiring those around them.
The beliefs held by managers of highly successful firms play a crucial role in shaping the organization's achievements. These managers prioritize staff development, understanding that the rest of the business will naturally align as a result. They take a genuine interest in their employees' lives, placing personal development above profits. Their concern for employees extends beyond professional boundaries, valuing character and trust over financial gain. They are meticulous in selecting the right individuals for each role, acting ethically, and living the firm's values daily. By giving respect before expecting it in return, they cultivate a culture of mutual respect and trust, which in turn attracts more business. Their good sense of humor and focus on creating a successful environment underscore their commitment to a balanced and respectful workplace.
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