Usually, you think of capital and P&L as the most valuable asset in your company and most often the only part your Board and Investors look at. In today’s economy that interest rates are at an incredible low, close to inflation,” According to Bain’s Macro Trends Group, the global supply of capital stands at nearly ten times global GDP. As a result of capital superabundance, global quantitative easing and relatively low demand for investments in R&D and capital projects, the after-tax cost of borrowing for many companies is at or near inflation, making the real cost of borrowing close to zero” making it easier to come by than real difference making team members or great investment ideas.
According to Eric Garton author of Leadership & Managing People Book “The average company considers only about 15% of its employees to be difference makers” meaning that there is a huge competition for recruiting and maintaining the best Talents. Managing their fatigue and keeping them at top performance is an ever growing challenge for today’s companies, starting at the team leader level and going all the way up to the CEO. The author states that “Based on our research, inspired employees are three times more productive than unhappy employees, but they are rare. For most organizations, only one out of eight employees is inspired.”
To keep your team at peak performance, Eric Garton suggests four strategies that can help:
We know that in management whatever is not measured doesn’t happen and if you can’t measure it, you will never be able to know if you achieved your goals and objectives. To measure your team’s performance, you can use many tools that look at “the cost of organizational drag and the benefits of effective talent and energy management on your overall productive power” but it is very hard to measure the real difference a rested and motivated team makes. Usually, most measuring methods include cost and benefit represented by absenteeism and production metrics. Something that can be quite important is the measure of pattern changes in a way that your team doesn’t feel like Big Brother is watching you. These can be early warnings of bigger problems on the way.
2- Invest it
Eric Garton refers that the usage of capital metrics can be applied to your team. One of such concepts is the cost of opportunity. How much does a meeting costs? It is not new to evaluate the direct costs of a meeting, but most times it is almost imperceptible the total cost in staff and support departments. It can amount to quite an investment reaching 25 to 50% of staff’s time.
Unlike money, if people feel that the company is not investing in them they feel demotivated and become less productive.
3- Monitor it
Investment, expenditure and investment performance is always closely monitored by expert teems and comities that evaluate, decide and review all capital investments and expenses.
The tools made available are highly evolved using technologies such as AI and Big Data that provide detailed reviews. To do the same with your team, you need specialized tools that will have to monitor activity, interactions, time application and so on. To know the mental state of your team is essential to keep them in top performance capability.
4- Reward it
Good investments bring strong rewards either in capital or more so in your team. Leaders should be measured for how brilliant their teams are and how many high-potential individuals they have recruited, developed, and retained.
Not only to develop the team but to keep them at the top of their game. Using tools like Performetric team leaders can manage rest and fatigue to promote peak performance.
As Eric Garton says: Time is finite. Talent is scarce and worth fighting for.
These are only a few of the possibilities available to team leaders, and they should be adapted to the particular context of each team.
Let us know what you are doing to yours.