Idea in Brief
The Problem
According to Gallup, only 30% of employees actively apply their talent and energy to move their organizations forward. Fifty percent are just putting their time in, while the remaining 20% act out their discontent in counterproductive ways. Gallup estimates that the 20% group alone costs the US economy around half a trillion dollars each year. A main cause of employee disengagement is poor leadership, Gallup says.
A new approach called blue ocean leadership can release the sea of unexploited talent and energy in organizations. It involves a four-step process that allows leaders to gain a clear understanding of just what changes it would take to bring out the best in their people, while conserving their most precious resource: time. An analytic tool, the Leadership Canvas, shows leaders what activities they need to eliminate, reduce, raise, and create to convert disengaged employees into engaged ones.
Case in Point
A British retail group applied blue ocean leadership to redefine what effectiveness meant for frontline, midlevel, and senior leaders. The impact was significant. On the front line, for example, employee turnover dropped from about 40% to 11% in the first year, reducing recruitment and training costs by 50%. Factoring in reduced absenteeism, the group saved more than $50 million in the first year, while customer satisfaction scores climbed by over 30%.