The Cost of Unshared Vision
Leaders who make ill-advised decisions risk losing customers and alienating workers. Once Lew realized that his key supervisors knew the goals but not the priorities, he enrolled 20 key people in the Strategic Goal Planning process. Then he established regular reviews with senior leaders and employees, to be sure that everyone stays on target.
By reducing turnover by 10%, the company retained seven people it would otherwise have lost. Sales increased from $8 million to $9.6 million. At 15% gross profit margin, that's $240,000 increase in profit.
|
Process |
Cost |
|
Profits up 20% and Employee Turnover reduced by 10%
|
$310 K |
|

|
Strategic Goal Planning Investment Participant Productivity Time Investment |
$ 37.5 K $ 12.5 K |
Run the numbers --
|
(Profit and Turnover Changes- Rx Cost) |
* 100 |
= |
ESTIMATED |
|
Rx Cost |
|
|
ROI |
|
|
|
|
|
$310K- $50K |
* 100 |
= |
520% |
|
$50K |
|
|
|
Read the Case Study: When a Manager Makes a Decision, But it's Wrong.
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