9 Ways Managers Cost Companies Sales, Customers and Profit, and How to Fix It!

© 2013 WCW Partners



Doug Watsabaugh and Rick Conlow Co-Founders of WCW Partners, Inc. a global management consulting and training

company and Co-Authors of SuperSTAR Leadership


Daniel Goleman Ken Blanchard/ Paul Hershey

Marcus Buckingham

Kouzes and Posner

Steven Covey Frederick Reichheld

John Maxwell Jack Welch

Tom Peters Jim Collins







There’s a face and the word liar.



Do you see a musician or a

girl’s face?



Are you sure?




1. 50% of managers fail in their jobs. An analysis of 12 studies found the failure rate 30-67%.

2. 50% of managers didn’t know improving service/quality would reduce operating cost.

3. 50% of manager didn’t understand people repeat behavior that is rewarded.

4. 60% of managers didn’t think it is right to brag about an employee in front of others.

5. 2/3 of managers don’t set goals with their employees.


6. 70% of managers didn’t believe the best way to solve an employee problem is through a mutual decision making process.

7. 80% of managers don’t know that observations in performance feedback should focus on specifics not generalities.

8. 80-95% of service/quality problems are management related.

9. 91% of employees want more recognition and only 50% say they get any at all.


A?

B?

C?

D?

F?


A?

B?

C?

D?

F? Most people say D or F. This

is an opportunity for a forward thinking leader.


1. Bad judgment in making decisions

2. Inability to lead teams

3. Problems in their relationships

4. Inability to lead themselves

5. Inability to learn from their mistakes

6. Deals with conflict poorly

7. Poor administrative skills

8. Lack of business sense

9. Lack of strategic thinking

10. Can’t delegate Bentz 1990, Echinger & Lombardo 2003, and Hogan, Hogan and Kaiser 2009



1. 50% of employees say that their managers fail to make them feel valued and important.

2. 50% of employee time is idle and they do not work.

3. 55% of employees are unsatisfied with their jobs.

4. 61% of employees felt they weren’t treated as professionals and wanted more respect.

5. 65% of employees in North America say they weren’t recognized at all in the last year.


6. 77% of employees say they are looking for another job.

7. 80% of employees say they get no respect at work.

8. 75-80% of the workforce are disengaged and not committed to the company’s goals.

9. 88% of employees say they don’t get enough recognition or acknowledgement at work.


• The #1 reason employees say they quit is because of unhappiness with their boss.

• Employees with bad bosses are 4 times more likely to leave than employees who consider they have good bosses.

• Interviews in 700 companies of 2 million employees suggest that the productivity of employees depends on their relationship to their direct supervisor or manager.

• Employee dissatisfaction leads to lower productivity and customer dissatisfaction. According to ACSI, the national customer satisfaction rate is 76.5-average!





1. Clear Goals and Expectations- Locke and Latham-16% improvement!

2. Training- ASTD Study- Companies in top quarter of training expense ($1500 per year or more) average 24% higher profit margins.

3. Communication- Wyatt Study- 30% increase in market value!

4. Coaching- Personnel Management Association-88% impact!

5. Leadership Flexibility- Blanchard, Hershey, Goleman- 15-20% more results.


6. Recognition- Jackson ROI Study-triple return on equity for companies with more recognition than those companies who do less.

7. Promotions/Incentives- Performance Improvement Institute-22% impact on results!

8. Customer Loyalty- Bain Research, 5% improvement in customer retention improves profit 25% or more!

9. Hiring- Personnel Policy Service-the wrong hire cost 3X the annual salary.


Recognition

Coaching

Leadership Flexibility

Communication

Clear Goals Expectations Recruit

& Hire Winners

Continuous Improvement

Promotions Incentives

Training


“There is at least one point in the history of any company when you have to change dramatically to rise to the next level of performance. Miss that moment - - and you start to decline.”

- Andrew S. Grove


Daniel Goleman Ken Blanchard/ Paul Hershey

Marcus Buckingham

Kouzes and Posner

Steven Covey Frederick Reichheld

John Maxwell Jack Welch

Tom Peters Jim Collins

Rick Conlow Doug Watsabaugh “There is no excuse for leaders not to know what to do or how to do it.”

WCW Partners has synthesized the best from management leaders for you in our book, SuperSTAR Leadership, A 31 Day Plan to Motivate People, Communicate

Positively and Get Everyone On Your Side


• Retail Company- Customer loyalty focus achieved dramatic gains of 15 points in customer surveys, 8% improvement in same store sales, 5% gain in transaction counts and a 60% decrease in complaints.

• Services Company- With a customer driven SuperSTAR Sales process, increased sales to existing customers 75% the first year while improving retention. Achieved five record years in a row!

• Medical Manufacturer- Sales Strategic Planning, BEST Sales training, coaching, and client satisfaction development increased growth over 30% in a down market!

• Technical Company- BEST Sales training, Leadership development and Customer Loyalty Planning moved the business from $4M to $40M in four years!

• Recognition: 33 service quality awards, Ford’s President’s Awards and the JD Power Award.


Watsabaugh Conlow Worldwide is a performance improvement company. Based in Minneapolis/Saint Paul, Minnesota, we work with clients in a variety of industries worldwide to help them excel in sales, service and leadership.

To learn more visit us online:

www.wcwpartners.com

www.wcwpublishing.com

Toll free: 1-888-313-0514

http://www.wcwpartners.com/

http://www.wcwpublishing.com/

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9 Ways Managers Cost Companies Sales, Customers and Profit, and How to Fix It!