Over a five-year period, the financial performance of organizations whose senior leaders were highly engaged with their personnel was significantly stronger than those companies who followed a different model. Net income growth was almost 18 times higher, and stock price was nearly 3 times higher.
While their high level of engagement isn’t the only reason for this exceptional performance, it is clear that leadership behaviors focused on key engagement practices consistently deliver better results.
Here are 5 questions about engaged leadership behaviors:
- People choose to follow leaders they judge to be credible. Credibility is grounded in authenticity. Authentic leaders act in accordance with their values. Are your actions aligned with your and your organization’s core values? Are you leading by example? Do you walk the talk?
- You can’t command commitment; you have to inspire it. Your people are your most sustainable competitive advantage. How are you stimulating the great energy and talents of your people to invest discretionary effort towards making a difference and achieving goals?
- Organizations with sustained profitability create a culture of experimentation that challenges the status quo. They look outward to identify new growth opportunities, remain alert for innovative ideas, and pursue continuous improvement. What forum do you provide that enables the evaluation and implementation of new ideas?
- Markets are increasingly dynamic and change is ever present. You need all hands on deck. How are you fostering cross-functional collaboration to meet this challenge? How do you empower others, encourage their mastery and strengthen their determination to act?
- People are energized and organizations are bonded when their contributions are appreciated. Celebrating victories and acknowledging excellence motivates and builds community. How do you recognize the contributions of your people?
James Heskett of Harvard Business School states that: “Culture can account for up to half of the difference in operating profit between two organizations in the same business. Shaping a culture is one of a leader’s most important jobs; it can be ignored, but only for so long and at one’s peril.”
How do your answers to these questions describe your culture?
If you want to change your culture, what first steps are necessary?
