We call that smart management. People management is business management - no other way around it.
And with that, one of our biggest frustrations is business leaders who are not able to make that connection. I've experienced this is the #1 reason why - they do not see, understand the financial impact to not having great people management and therefore the need to train and develop managers.
Do you know there is more money on average spent on acquiring employees than training the folks who will then be managing them? Does that make sense...fiscal sense?
So, to help awaken the senses of decision-makers and their HR partners, I've created a list of questions ... call it a cost analysis exercise to help them think more about the financial impact of not offering effective management training - note the word effective.
Here's the thing - you cannot change things you cannot see. Seeing...building awareness of what's happening financially in your business is crucial and is a key characteristic of business acumen.
When it comes to how employee performance (including managers) impacts your business financially it's tough to see unless you have a trained eye. We'd like to help you see what we see...everyday! If your business is wasting money ....would you want someone to tell you?
If you're answer is yes, I've created some resources to help you..and here's one. I've listed a series of questions based on the format of our 3 stage / 9 block smart management blueprint to prompt your thinking. I've also created a worksheet you can download to use as an guesstimate exercise for you and your leadership team (or if you're an HR partner as an internal consultant to make the case).
To get the most out of this cost analysis, you can preface each question with:
>What is the financial cost? > What are other costs? ...there are a variety of costs beyond financial to consider.
Cost Analysis | Questions to Cultivate Business Acumen
Learning how to financially quantify people performance to improve business outcomes.
Stage 1 : Me & My Team - Our Performance
What's the impact when a manager is not able to influence or have a good working rapport with members of their team?
What's the financial impact when a leader/manager is not an effective time manager?
What’s the productivity impact?
Does not delegate appropriately? (financial impact / productivity impact)
What's the impact when allowing employees to perform below expected w/o expectation and plan of improvement?
Stage 2: My Ability to Achieve Targeted, Strategic Results Through Leading My Team
What financial impact does confusion or foggy thinking have, lack of clarity have?
What does a manager's inability to facilitate needed team outcomes cost?
What financial impact does the lack of effective team time management have?
Are you able to demonstrate ability to impact P/L / strategic goals in a timely fashion
Stage 3: My Ability to Develop my Team, Process Improve & Generate Growth
What's the impact when there is little if any consistent efforts to improve?
What's the impact when employee performance improvement is not tied directly to operational improvement?
what's the impact when employee performance improvement is not attempted in timely way?
What's the impact when there are attempts to grow a company without growing the capacity of employees to handle the growth?
What's the impact of not activity helping employees expand their contribution/ capabilities?
What's the impact when employees aren't acknowledged, appreciated, valued? - not given opportunity/ resources to refuel?
What's the impact when there is not planned, thoughtful, growth?
The Important Conclusion
Many decision-makers I work with initially have something called "fos" - fear of spending. That fear comes from a lack of understanding of the positive financial impact of management training and development and how to quantify the value and ROI of the investment. So, I've put together some resources to help learn how.
Note: Financially measuring and quantifying people performance is a core, embedded component of our smart management blueprint (and as mentioned earlier of business acumen) - it's built into each stage and building block. Learn about our blueprint here.
Your Resources
=> Action: Download your copy of the Simple Cost Analysis Worksheet
- do a guesstimate exercise - total up your numbers and let me know what you come up with.
Em: joann@manageglobal.solutions
=> View: our short mini-course How to Calculate the Financial Loss of an Underperforming Manager. - click here
=> Grab a copy of Show Me the Money - Solving the Mystery of ROI to Unlock Profits & Increase Company Value. It's one of many topics in our Executive Briefing series. You can get it on Amazon or just email me and I'll send you a complimentary pdf version.
Exciting News! // We're excited to launch our new digital arm - Manage Global. To compliment our global reach with our LinkedIn Learning courses, we're offering a compelling resource - The Smart Management Blueprint that can be accessed and implemented in any business environment, world-wide. It provides a step-by-step roadmap to simultaneously improve business and people management while developing competent managers. If you feel a need for improvement in any of these areas you'll want to learn more. Check it out here! => https://manageglobal.solutions
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