The Cost of Transactional Leadership is Losing an employee
These calculations will easily reach 250% of the employee's annual compensation figure.
To put this into perspective, for the mid-sized company of 1,000 employees who has a 10% annual rate of turnover, the annual cost of turnover is $7.5 million! What about the company with 10,000 employees? The cost of turnover equals $75 million!
Pride in and recognition of their workmanship is a better incentive than gifts in motivating people, even though money does have its place in any incentive program. There are many people dedicated to dangerous and relatively low-paying jobs, like soldiers, which makes it hard to believe that money is the number one factor in getting people motivated. With that in mind, set up the right work processes and closely follow up on the progress to achieve change.
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Professional organizations need their position coaches to be professionals who have walked in the same shoes of the leaders they are coaching. Russell Wilson, Tom Brady, and Joe Montana were all late-round draft picks. They worked their way up through the ranks, guided by coaches who were themselves quarterbacks. Imagine if they had been guided by someone from the front office, support staff, or if it was assumed they were good in college (their existing role) so they were thrown into the professional ranks without coaching. Matt Leinart, Johnny Manziel, and Tim Tebow all won the Heisman Trophy for their ability as a college quarterback, but failed when promoted to the pro ranks largely because they were not given the coaching time they needed to make the next level. They were tossed into their new position and because they were good college quarterbacks it was expected they would figure it out on the fly. Most people learn by seeing things, touching things, running into things and tasting things and then turning all those experiences into general principles. While the most effective sequence is from specific point or experience to general principle, it can be painful. Without someone to help them interpret the learning, they can put it to good practice or it can lead to bad habits. Effective coaching requires real world experience, actually doing the job that those you are coaching are doing. Nathan understands the demands and pressures of the position, not in theory, not from a support desk, but in actual performance because he has led in the very same environment. Leadership development is a journey to various degrees and distinct points in time. Some have begun their journey, while others have yet to ponder the direction to take, or to even consider that a direction should be considered.
Following this line of reasoning, what transformational characteristics leaders develop in themselves will surely have a bearing on their teams. You have a vast impact by what you do, what you fail to do, who you are, what you believe and how you communicate these beliefs to the team. Your teammates have needs, desires and goals that, once uncovered, can be used to encourage them to higher levels of individual potential. The best teammates are capable of doing their own job and doing it better, and they are able to persuade their leaders as needed. It is not a one way process—at its best over time, it is give-and-take.
No collection of talented professionals wants their Senior Leadership Team coaching the skill positions. Simply put, it is not what they should be focused on. Having the right person, doing the right thing, at the right time is critical to organizational success and that is the approach Nathan is offering.