Organizational Performance Secrets Hidden in Plain Sight
Did you ever hear about the mysterious success of the Oakland A’s beginning in 2002? The true story was made famous in the book and movie Moneyball.
Here’s the one sentence version. In 2002, the Oakland A’s, with a payroll 1/3 the size of other teams, outperformed most other major league baseball teams. And, they continued to do so for several years.
How did they do that and what does that have to do with your company? Stay tuned.
How did the Oakland A’s achieve those results? The A’s “discovered” baseball statistics that were far more predictive of winning baseball games than batting average and RBI’s.
You might be wondering why “discovered” is in quotes?
It turns out that these “new” stats were not new at all. In fact, they had been published and available to every major league baseball team for more than 15 years.
The Oakland A’s “discovered” these insights, applied them to how they selected and managed players and built a competitive advantage that left other teams in the dust wondering what happened?
Interesting, but what does that have to do with the organizational performance of your company?
What overlooked opportunities, like those the Oakland A’s “discovered,” does your company have to improve organizational performance and achieve record-setting results?
In this mostly booming economy, I hear some companies say, “Things are going well and we’re making money. We don’t need to improve company performance.” I get it. I’d probably say the same thing if I were in your shoes…until I realized…
When things are going well, the water rises for all ships. When things get challenging, those companies with competitive advantages (think Oakland A’s) outperform their competitors now and into the future.
Your Record-Setting Results?
Record setting results are achievable for your company and for your competitors. Want some examples?
- The top 10% of sales people in your industry sell twice as much as average sales people in your industry1
- “A” player employees produce 4 times more of a return on investment to your company than “C” players.2
- “C” players look and behave like “A” players during the interview process – making it more likely you’ll hire “C” players.
- While every employee is unique, employee performance issues are not unique to each employee. Human behavior is highly predictable.3,4,5,6,7
- There are 5 culture metrics that drive 14-17% higher financial performance.8
Despite things going well at your company now, what is the one area of your company that could be or should be delivering better operational and financial results? What challenges is that area of your company facing?
- Hiring mistakes
- Undesired employee turnover
- Can’t find right people
- Under-performing teams – sales teams, project teams, leadership teams
- Leader performance challenges
- Resistance to organizational change efforts that are necessary to move the company forward
- Building a culture focused on building record-setting and industry-leading performance
Now, since I know how the brain works, while you might be intrigued, you’ll soon start to think of all the reasons why “now is not the right time,” such as:
- “Those results might be possible, but not for us.”
- “We’ve tried improving results and it didn’t work.”
- “We don’t have that in the budget.”
- “I don’t have the energy for a huge change effort.”
- “I don’t want to screw up “good” in order to take a chance on “great.”
Cost of Doing Nothing
Reasonable concerns except when stacked up against the costs of doing nothing.
- What does a hiring mistakes cost your company? Go ahead, Google it. The average cost for a hiring mistake is, on average, 100% of the employee’s total annual compensation.
- And, the cost is much higher if you lose an “A” player.
- In short, every one of the challenges listed above costs your company hundreds of thousands or millions of dollars – every year.
Contact me for a no-cost, no-obligation discussion about that one area of your company that could be or should be delivering better operational and financial results.
We help companies apply specific, proven and overlooked principles/tools from the science of human behavior that improve operational performance and financial results.
Why do we do what we do? Because record setting results (think Oakland A’s) are achievable for your company…and for your competitors.
Lasting Competitive Advantage
Now is your chance to build competitive advantage and then, eventually, lasting competitive advantage. Jerry Rice said it best; ““Today I will do what others won’t, so tomorrow I can accomplish what others can’t”
To your success!
- Goleman, D. (2006). Working with emotional intelligence. New York: Bantam Books.
- O’Boyle, E., Jr., & AGUINIS, H. (2012). The Best and the Rest: Revisiting the Norm of Normality of Individual Performance. Personnel Psychology,65(1), 79-119.
- McGregor, D. The Human Side of Enterprise. New York, NY. McGraw-Hill (1960).
- Duhigg, C. (2012). The power of habit: Why we do what we do in life and business. New York: Random House.
- Sturm, R. R. (2013). Market Efficiency and Technical Analysis Can they Coexist? Research in Applied Economics, 5(3), 1.
- Guidotti, R., Coscia, M., Pedreschi, D., & Pennacchioli, D. (2015, October). Behavioral entropy and profitability in retail. InData Science and Advanced Analytics (DSAA), 2015. 36678 2015. IEEE International Conference on(pp. 1-10). IEEE.
- Williams, D., Burrell, D. N., & Lu, S. (2013, Spring). Employee Engagement Management Approaches Versus Command and Control Management Approaches for Millennials Employees in Public health and Safety Organizations. Journal of Knowledge & Human Resource Management,5(11), 102-113. Retrieved July 1, 2016
- Connecting Organizational Culture to Performance. (2013). Human Capital Institute; research conducted for P.S. Culture Matters
- Lewis, M. (2013). Moneyball: The art of winning an unfair game. New York: W.W. Norton.
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