Profitability and leadership

There are proven connections between leadership and profitability, where profitability can increase by 25% if you as a leader focus on working with the described below, in the following order;

1
 Respect
 (to receive respect from my boss for my work)
2 Cooperation
 (that my boss can solve problem and conflicts in a constructive way
3
 Influence (that my boss lets me influence my work) 
4
 Acknowledgement
 (that I receive good feedback, both positive and negative) 
5
 Reward (that I receive some kind of reward for the effort I put into my work) 
6
 Information
 (that I get information about my work and how the company is doing)
7
 Overall view 
 (that I understand how my work is important for the overall result)
8
 Goal
 (that my boss clearly describes relevant goals)
9
 Personal possible developments
 (that there are visible personal development opportunities)
10
 Easy to get things done
 (that my boss creates a working environment where it is easy to get things done)

 (Source: Hessner & Bolinder, www.hessners.se) 

It is important to know that we measure the experiences of the participants, not facts. This means that the participants as an example answer a question whether they feel they have been informed about how the company is doing by their leader – rather than from a more formal, written source.

The Hessner and Bolinder model

This model builds on employee and manager surveys regarding which work climate that exists in successful organizations. The Hessner and Bolinder model has been used for almost 20 years to analyze organizations. It shows that some areas are more important than others when it comes to developing groups and organizations. When comparing the financial data with the data from the from the surveys it shows that if you score high on the ten areas listed above, there is a statistical correlation between successful organizations and profit and productivity.

The first analysis was made in 1982 and since then 1 million people have been questioned in 28 different languages. 10% of the people surveyed had managerial positions.