Human-capital
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How to boost your productivity
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The Road to Be TakenWhat about customers? "Similarly, customer data included purchase information: Volume, dollar amounts spent, repurchase intentions and behavior, brand ratings, product evaluations, opinions, and other complementary patterns of attitudes and behavior were all covered in detail." Who wants to step forward to challenge the validity of Coffman and Gonzalez-Molina's assertions? Not I.
The subtitle of this book, "How the World's Greatest Organizations Drive Growth by Unleashing Human Potential," is somewhat misleading. In fact, according to Coffman and Gonzalez-Molina, cultures -- not organizations -- unleash human potential which, in turn, drives organizations. More specifically, emotion-driven, highly engaged employees ("associates" at Wal-Mart and J.C. Penney) continuously nourish and thereby sustain profitable relationships with (yes) emotion-driven, highly-engaged customers. Contrary to conventional wisdom, "Superior performance is not the exclusive product of the rational mind. no matter how appealing it is to business to believe this is so. Talent does intelligence one better, because it combines and utilizes the full circuitry (rational and emotional) of the brain's neural connections in the endless pursuit of productive outcome."
What about knowledge and skills? Coffman and Gonzalez-Molina duly acknowledge that they are required by quality performance. However, "In essence, talent and engagement are emotionally driven. In tough economic times, talent and emotional engagement are the only natural competitive advantages." Emotional engagement is thus the "fuel" that drives the most productive employees (approximately 20% of any workforce) and the most profitable customers. Coffman and Gonzalez-Molina seem almost surprised by the fact that there is an unlimited supply. "The most amazing thing about it is that it never runs out."
The word "path" in this book's title refers to a sequence of "steps" to be taken:
1. Acknowledge the role that emotion plays in driving business outcomes.
Comment: Keep in mind that emotions can be either positive (e.g. appreciation) or negative (e.g. resentment).
2. Acknowledge that all employees possess innate talents that can be emotionally engaged.
Comment: Workers generally do best what they enjoy doing most.
3. Understand that unique talent combinations lead to increased profits and growth.
Comment: Because needs change, different talents may be needed and in different combinations.
4. Understand and appreciate the power of the Q12 and accept what it can do for an organization.
Comment: Coffman and Gonzalez-Molina focus on the Q12 in Chapter 4 and explain how to manage the Q12 in Chapter 5.
5. Understand what it means to manage to develop and sustain engaged employees.
6. Understand the economic implications of engaged, not-engaged, and actively disengaged employees.
7. Acknowledge the role which emotions play in customer engagement.
8. Understand the eleven indicators of customer engagement and how they will impact on your brand, product, or organization.
9. Accept what managing to enhance and sustain customer engagement means.
10. Understand the economic implications of fully engaged, engaged, not-engaged, and actively disengaged customers.
NOTE: The chapter in which this step is examined, Chapter 10 ("Emotional Economics, Part 2") develops in much greater depth the material provided in Chapter 6, "Emotional Economics, Part 1."
Coffman and Gonzalez-Molina devote a separate chapter to each of the ten steps of The Gallup Path, explaining precisely how it can enable any organization (regardless of size or nature) to "drive growth by unleashing human potential." Taking each of these steps will fail, however, unless and until when doing so supervisors REALLY DO understand (a) that talent drives performance and supervisors are totally committed to engaging the talent of every employee, (b) that emotionally engaged employees are invariably the most productive employees, and finally (c) that emotionally engaged customers "always come back for more" and thus are the bedrock of any organization's sustainable profitably.
In their concluding remarks, Coffman and Gonzalez-Molina observe that "It's time to see your world in a different way." In fact, by the end of this book, they have urged their reader to see the world in dozens of different ways. It is important to supervisors to know that, once embarked on The Gallup Path, they will be guided and informed by Coffman and Gonzalez-Molina every step of the way.
Those who share my high regard for this book are urged to check out First, Break All the Rules which Coffman co-authored with Marcus Buckingham. Also, Hammer's The Agenda: What Every Business Must Do to Dominate the Decade; Bossidy and Charan's Execution: the Discipline of Getting Things Done; O'Toole's Leading Change: The Argument for Value-Based Leadership; Collins' Good to Great: Why Some Companies Make the Leap and Others Don't; and Connors and Smith's The Oz Principle: Getting Results Through Individual & Organizational Accountability.
Manifesto for a RevolutionThe central thesis of this valuable and highly readable work can be summed up in three words: Feelings drive actions.
This book from The Gallup Organization focuses on applying that briefest but most fundamental truth to business success. The authors' conclusion can be simply stated: The feelings of your employees influence the feelings of your customers, and that drives their buying behavior and your profits.
It works like this: Understand your employees so that they are assigned to do work for which they're really best suited at the deepest personal level ('cuz they'll do that work better than any other). And treat your employees in ways that encourage them to be fully engaged in their work ('cuz that gets you more loyalty and productivity at no extra cost). And then, in turn, your employees will treat your customers in a way that makes your customers feel good about your company ('cuz that leads them to spend more with your firm for a longer time). And, voila!, your company makes more money with less effort.
At this point you might feel compelled to release a loud exclamation of, "Well, duh!"
But hold on.
The premise of "Follow This Path" seems deceptively simple for two reasons:
1) It contrasts markedly with the "rational" model that still shapes most interactions with both employees and customers in most organizations; and
2) It stands in direct opposition to the assumptions underlying most business initiatives that are supposed to improve quality, productivity, or even customer satisfaction. Most, if not all, of those projects are aimed at mechanistically tweaking operational processes. And they don't positively affect the people on either side of the transaction: employees or customers. And so they have little to no effect on fundamentally improving the business. (But they sure do suck up a lot of time, create many distractions, and generate healthy fees for consultants.)
MORE THAN A REHASH
While tempting, it is misguided to characterize this book as a mere rehash of its predecessors from the Gallup Organization, "First, Break All the Rules" and "Now, Discover Your Strengths." Candidly, when first flipping through the book, "rehash" was my impression, too.
However, "Follow This Path" is a significant contribution in its own right. It integrates and extends Gallup's two previous works. This book's insights derive from an expanded data set supplied by Gallup's massive survey-based research, and the book also (as is all the rage in business tomes these days) draws on much of the historical and current research into the origins of behavior from both psychological and biological underpinnings. A smattering of readable anecdotes from real people help to bring the principles to life. (The end notes also are worth reading as the text there is written as a narrative and adds worthwhile insights. In addition, this work contains an appendix of what likely will strike most readers as mind-numbing statistical mumbo-jumbo, aimed, no doubt, at quieting critics who question the validity of the data underpinning Gallup's claims and conclusions.)
The effect is to validate sound, albeit somewhat non-traditional, perspectives on what really lies behind the elusive, mercantile holy grail of successfully competing in today's crazy, cut-throat marketplace.
THE UPSHOT
The good news is that these principles are easy to grasp and make intuitive sense (after reconsidering traditional biases).
The bad news is that for organizations to take advantage of these simple truths, they must unlearn much of what their managers "know" about how business works. The challenge is to move managers from the realm of the rational, definable, and controllable --- the hallmark characteristic of virtually every manager in virtually every corporation (perhaps with the exception of those strange and intrepid folks populating the marketing communications department).
The new reality: To compete effectively, managers must migrate to the still largely uncharted domain of the emotional, psychological, and personal in order to affect both employees and customers. In a gross understatement, this imperative represents a frighteningly major shift and no easy undertaking.
Making such a dramatic and fundamental change in both mindset and behaviors implies considerable adaptations at two levels: In the minds and hearts of individual managers, and in the policies and systems of their employing organizations.
All exaggeration aside, we're talking social revolution here. Undoubtedly, it will keep Gallup's consulting organization, and firms such as my own, very busy for many years to come.
But what if your boss or CEO is a Neanderthal and "doesn't get it"? Press on. Start with yourself and your very own work group. As the research from Gallup and many others makes clear, that's the only level at which real change actually occurs anyway.
Get the book and read it with a scientific mind, skeptical but open. Then get busy charting your own course through the new frontier of what Gallup aptly terms The Emotional Economy.
Chances are, you'll feel better...with rising productivity and profits...because customers feel better...because your employees feel better.
I agree, it's a great bookThe premise of the book is simple. In an age where prices have been cut to razor thin margins, and businesses have become commodities, the only way to profitably survive is to unleash the human potential among your employees and customers. The authors ask this simple, but profound question: Why would a customer drive past your competition and pay a higher price to purchase your product? The answer: You have an emotionally engaged customer.
The authors demonstrate the world's greatest organizations connect with their customers on an emotional level. When this happens customers return because of the way they feel- they become emotional engaged. The businesses manta for the last century has been based on reason- if you build a better mousetrap, offer it at the lowest price, people will buy. Studies have shown that people are more driven by their emotions when it comes to purchase and repurchase than they are by reason. The same holds true for employees. The Gallop organization also has shown that emotionally engaged employees produce more, stay longer, have less accidents, etc.
Any problems? Maybe one. When hiring, the authors tell us again and again to commit to talent above education, experience, willingness to work hard, and the usual resume items. Inborn talent produces engaged employees; but what they did not address was the integrity issue. Jack Welch points out that the most dangerous employee is not the rude, insensitive, actively disengaged employee; but the one with the talent who does not hold to the values of the corporation. The actively disengaged employee will hurt the company, and yes, if you have enough of them they will destroy the company, but the real danger lies with talented, engaged employees who love their work but who do not hold to the company's values. These are the ones Welch would immediately get rid of.
All in all, it's a valuable book. For a pastor of a small church, or a midlevel manager, the Q-12 (Questions developed by the Gallop organization which identify the conditions of a great work space) are invaluable. By unleashing the human potential in staff, volunteers and members the leader of a nonprofit can build a great organization.

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Good numbers, weak adviceThen things fall apart quickly. The reason is because the authors over-reach by offering their suggestions for implementing the HR practices they identify as creating market value. That scope is simply much too large for a book of this size, resulting in shallow solutions. As an example, the authors show that "linking rewards to performance" is associated with a nine percent higher market value. They then share all of nine pages on how to implement pay-for-performance systems. That's hardly adequate, given there are a multitude of full-length books on that subject alone.
Some vexing findings are given short shrift, like the counterintuitive results that training and 360 degree feedback actually reduce market value. The authors waffle on the findings by suggesting the negative impact can be explained simply because these programs typically are ineffective. That kind of logic doesn't work since executing the other HR practices poorly would also have a negative impact on value creation.
In sum, this book does an excellent job demonstrating the relationship between human capital practices and market value. However, if you need help implementing those practices, you should look elsewhere.
One of the Best Books Ever Written on Strategic HR...
Finally!"The Human Capital Edge" shows the measurable value of implementing solid HR practices! Great stuff!!

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Engaging book, sometimes lacking focus
brilliant ideas - and the man can write!- Chris Locke, author of Gonzo Marketing: Winning Through Worst Practices, and co-author of The Cluetrain Manifesto.
Good read, provocative ideas
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Old Schoolers will cringe at some of the suggestionsI just resgined from a firm to start my own practice. While there, I was discussing this book with one of the firm's Partners. When I suggested the radical idea of no timesheets, he replied, "how will you know the people are working." As this book effectively points out and analyzes, firms just aren't hiring the right people!
The book does get a bit redundant at times, and does put forth some ideas that seem a bit crazy (such as 100% money back gaurantees in your engagement letters if the client doesn't like the service). However, I think that overall the book does make some very excellent points. Firms that are courageous enough to make changes based on ideas generated from this book may be the "firms of the future"
Finally, despite the title, this book is for CPAs and CPA firms. Lawyers and other service providers will not get as much out of it. For those starting firms, or for those looking for ideas to improve their current firms, this book should help.
Must reading for the professional service provider!After reading the first two editions of Ron's book, I didn't think he would be able to improve much on the message of switching to Value Pricing. Boy, was I wrong! He and Paul Dunn have done an amazing job of getting the reader to think differently. As with the radical theme of trashing the timesheet in "The Professional's Guide to Value Pricing", they do a masterful job of convincing you why the old "Revenue Equation" must be replaced with the forward-thinking "Profit Equation". They go on to introduce other new topics not found amongst professional services firms such as developing your Intellectual, Structural and Social Capital, emphasizing effectiveness over efficiency and of course Value Pricing. As is typical of Ron's writing style, and complemented by Paul, their reasoning for making this paradigm shift is well supported and well reasoned.
I've been using practicing Value Pricing for about 5 1/2 years now and I can tell you that it works. In my own firm, I've slowly begun implementing some of their new concepts but with a new perception. I'm convinced these principles will work for me and they can for you as well.
After reading this book, you'll definitely want to keep it handy as a useful reference guide!
challenges the old paradigmsAlthough aimed at the professional firm, the book is relevant to all service businesses.
If you attended Paul Dunn's seminars and read Ronald J Baker's books, then this will be a useful refresher. If you haven't - then oh boy what a ride! Let the journey begin.
In addition this book introduced to me the concept of Intellectual Capital, a framework that I'll certainly use in the future.

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Good on fixing the symptoms
Keeping Corporate Knowledge in the Corporation"Continuity Management" ensures continued customer satisfaction during times of high employee turnover.
What The New Economy Has Missed.Boenisch, Harden and Beazley have presented a look at the magnitude of this problem plus a well thought out plan to resolve it. It won't be easy and just reading the book won't make it happen. It will require resources and corporate drive to implement. Knowledge is potentially power and money. The efforts expended to conserve it will be felt in a new competitive edge and in the bottom line.
The book should be required reading for anyone that manages people or resources. The ideas and methods can be successfully implemented corporate wide or in any first level management department. Highly recommended and a milestone book.

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Insightful!
BOOK CLUB SELECTION
A very practical guide to carrying out research!
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free mumia
Opens up your mind
Attests to the reactionary nature of the American popuationNot only would I recommend Abu-Jamal's book, I would recommend that you join Refuse and Resist and other organizations that support Mumia Abu-Jamal's, and fellow political prisoner Leonard Peltier, immediate acquittal.

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Insightful!
Excellent summary of critical human capital investor issues
A Solid Analysis
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Do you want to be Beyond World ClassOne interesting aspect of this book is the author's personal perspective on decisions that he made to protect and strengthen his integrity. The decisions were incredibly difficult and the future of the company hung in the balance. Each time the author followed through with integrity he was rewarded and in retrospect making the easy decision (not exercising integrity) would have been disastrous.
Beyond World Class is about integrity in relationships with employees, suppliers (partners) distributors, and customers. This book goes further then many that talk about building relationships with customers. Beyond World Class shows that employees, suppliers, and distributors each have a significant hand in the ultimate satisfaction of customers. Beyond World Class highlights that beyond world class organization understand the value leading to the customer involves employees, suppliers, distributors and ultimately the customer themselves.
Beyond World Class emphasis that customer selection is an essential piece of building a beyond world-class organization. Customer selection goes beyond targeting a customer segment to selecting customers that align with your company's vision, offering, and margin guidelines. In essence you partner with your customers. Part of this partnering is seeking to find solutions to customer problems and continually increase your value to your customer. These concepts in this section alone make the book worth the price!
Beyond World Class challenges you to build the following character culture with the following characteristics:
Humility Sponsoring champions Integrity and modeling Fairness and caring
Are you up to the challenge of being Beyond World Class?
The Single Most Impacting Book Ever
If you want your business to flourish and truly believe your staff are your company you wont be able to put it down