By Guest Author Melissa Russell
Today’s business leaders face myriad challenges as they look for ways to improve return on investment (ROI) while managing resources effectively. The greatest resource of any organization is its workforce, and balancing employee morale with productivity is the key to creating an environment and culture where collaboration governs and success thrives.
As a starting point for the discussion of how best to manage morale and productivity in a corporate setting, it’s useful to go back more than a century.
In the early 1900s, Italian economist Vilfredo Pareto developed a mathematical formula that proposed that 80% of his nation’s wealth was concentrated in the hands of just 20% of its population. This idea came to be known as the “Pareto Principle,” or the “80/20 Rule.”
When applied to a business model, the ratio can be used to illustrate several theories, including the idea that 80% of an organization’s output is generated by 20% of its employees. With that in mind, business leaders would be wise to ask themselves how they can better manage their staff in an effort to ramp up productivity as well as morale.
Managing Productivity and Morale
Management that provides training for all staff members will help create a team that is versatile and independent. This will not only improve efficiencies but also cultivate new thought leaders whose innovations should bring about future process solutions.
The adoption of newer communication tools, as well as the promotion of a climate of open discussion, will keep misunderstandings to a minimum and shorten the time between task and feedback.
Establishing goals, both long- and short-term, in collaboration with staff members will encourage full commitment and participation by the team. It will also keep efforts on track and processes as streamlined as possible.
The greatest morale boosting efforts are those that build relationships, trust, loyalty and a desire for success. Simple activities such as greeting individuals every morning, checking in with staff to discuss problems or concerns, helping team players reach goals and addressing negative feelings in a positive manner only take a few minutes, but they offer tremendous benefits.
As a business leader, you’re constantly seeking ways to boost ROI. A century after it was developed, the 80/20 Rule still holds promise as a guideline for improving productivity and morale.
Melissa Russell writes on marketing and business management. She also writes on topics such as military education and liberal arts for a number of universities through the University Alliance.