One of my favourite workshops to deliver is called Fundamentals First. It’s focused on getting the basics right for managing people. It’s hard work to manage people. Especially top talent.
I came across an article that expands on this idea that getting the basics right is important. Turns out it’s harder than it looks. And because of that, most organizations don’t bother.
Which gives a huge advantage to those that do.
In a decade’s long research project, data from 12,000 firms was gathered on 18 core management practices.
There were vast differences between countries. Between companies within a country. And in larger companies, between departments within a company.
And the competitive advantage?
“........moving a firm from the worst 10% to the best 10% of management practices is associated with a $15 million increase in profits, 25% faster annual growth, and 75% higher productivity”
This research is done with large manufacturing companies using lean processes. So not directly applicable to your world. But if talent and operations are in your purview, this article is worth a look.
Instead of looking for the next great innovation or strategy, you could find your advantage by getting the basics right. And with those in place, you’ll have the foundation to innovate or execute strategy in a way few competitors can.
Fundamentals First!
Why do we Undervalue Competent Management?
By Raffaella Sadun, Nicholas Bloom, John Van Reenen
If you prefer a podcast, here’s a 20 minute HBR interview with one of the authors.
And if just want the highlights, here’s a 2 minute video.
