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Friday, April 8, 2011

Strategic Speed: Post #10-- Manage the Climate

Manage Climate: Climate is all about what it feels like to work in a place. It’s not the culture—the imbedded values and vision that the founders set in motion years ago. Rather what’s it like on a day-in and day-out basis to work there. And leaders who monitor the climate and work at creating a positive one will reap the benefits—more profitable (33% in one study), drops in employee turnover (19.6% in another study), and an increase in customer retention (32%in a third study). Worth noting: 70% of the climate difference between units is attributed to the behavior of direct managers. And climate determines the motivation, individual execution and organizational execution speed. Thus, climate starts with the leader and ends with the followers, who are either motivated or de-motivated by the climate the leader creates.

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