There is lots of researcher indicating that social cohesion (the result of highly effective relationships) accounts for roughly one quarter of a team’s performance. Think about this in terms of productivity. Consider a department with target revenue of $100 million dollars. If there is dysfunctional behaviour and ineffective relationships they lose $28 million. With high functioning relationships they garner $128 million. This creates a variability factor of $56 million.
In his article “Building a Vision Guided, Values – Driven Organization,” Richard Barrett cited research indicating that as much as 39 percent of the variability in corporate performance is directly related to the level of employee engagement. Most noteworthy in this article are not just the impact of individual behaviour and the impact on performance, but leadership behaviour in particular.
Barrett notes that 69 percent of the variability in employee engagement and work fulfillment is attributable to the capability of the immediate leader. If you do not have clearly established standards and behaviour expectations for leaders, and an ongoing program to teach, confirm and monitor behaviour performance, you can be guaranteed your organization is not performing at optimum. The extent to which organization members can rationally and emotionally connect behaviour with the organization’s mission and vision, fuels higher levels of engagement that drives performance by any measurable criteria on the organization’s dashboard.
CORPORATE HARMONY is grateful to Dr. Michael E. Frisina for his contributions to this entry.
