All business strategies and visions need to be aligned with that of their employees, unless they may come unstuck.
According to a study of 200 companies in The Times 100, 80% of directors said they had the right strategies but only 14% thought they were implementing it well.
Business owners may be confident they have a business vision in mind but are often less clear about how they will achieve it and set their employees on the right path.
What follows may help business owners align their employees to their strategy.
Effective structure
Once the strategy has been set, there needs to be a clear organisational structure in place that ensures job functions match strategic objectives. People must be employed to fill those positions, not the other way round.
Each job role should have a position agreement that clearly articulates the role’s function and purpose in meeting the strategic objective.
Any agreement should lay out the employee’s accountabilities. The employee agrees to them and the manager consents to support the employee.
It isn’t a job description but rather a statement of results, linking objectives to strategy in order to help employees understand how their job functions within the company.
Many people believe a more practical approach, rather than a traditional HR one, helps provide employees with greater clarity and focus.
Effective people management isn’t easy. There is no one size fits all but when it goes wrong, it can lead to an ineffective workforce and failing business.
Positive culture
Business owners are key to creating the right culture within an organisation, which rewards and encourages positive behaviour from employees.
For example, rewarding persistency and regular client reviews, rather than just new business, may shift behaviour to focus more on customer service and value, rather than perpetuating a sales culture.
Employees need to be supported through change, provided with the right tools and training. Change doesn’t happen overnight and employees need to feel involved and valued in the process.
Advisory firms are, in the main, service-led businesses, so the level of employee engagement is even more important to ensure a high level of service is provided to clients. Engaged employees are more productive and positive in their approach, taking an active interest in the success of the business.
A study by Dale Carnegie Training details how organisations with engaged employees outperform by 202% those with low engagement. This demonstrates how, if done correctly, good employee engagement can lead to a return on investment.
Encourage change
Key steps business owners can take to improve engagement levels can often be as simple as listening to employees, addressing concerns, keeping lines of communication open, and recognising and thanking employees for positive contributions.
Adviser businesses looking to transition and evolve are reliant on their employees’ willingness and desire to change. Inertia is a powerful thing; it can drive the same behaviours and attitudes within a firm despite a new direction being set.
Change can be encouraged from the top. Business leaders must demonstrate change and this needs to filter down. If there is any doubt as to whether management is fully embracing change, momentum could be lost.
When employees are engaged and aligned to the business strategy, the business is more likely to succeed. A study by Business Health in 2013 showed that effective people management could increase profits by 244%.
Effective people management may seem low on the list of priorities but its importance should not be underestimated, especially when it could lead to a significant increase in profit.
