As a leadership consultant, I speak to companies every day about the impact strong leadership has on the bottom-line of the organization. We sort of know that great leaders produce great results, but why?
To answer this, I want to share some research conducted by ZengerFolkman which demonstrated that:
Good leaders create more economic value than poor leaders and extraordinary leaders create significantly more economic value than the rest.
While we intuitively know that this makes sense, how do strong leaders achieve such results?
Ultimately it boils down to their affect on the bottom line – things such as retention, turnover, employee commitment and morale, customer satisfaction and ultimately, productivity.
In fact, their research shows that if the "people costs" to a company are 50%, a productivity improvement of only 5% can result in a 50% increase in pre-tax profit!! In that same scenario, a 10% increase in productivity increases pre-tax profit by 100%!!! And on and on and on.
The bottom line: Leaders who inspire people to perform at higher levels increase organizational productivity and thereby increase (substantially) pre-tax profit.
Now, can you imagine the organizational impact if you had a building full of inspiring leaders and not just the one's with titles?
You were born to be great.
YES, you can!