Change Selection
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RESULTS BASED LEADERSHIP
Ulrich, Zenger and Smallwood
Results based leadership argues that good leaders don’t just improve profits,they also improve results for organisations through improving results and for employees, investors and customers.
THE SEARS EMPLOYER-CUSTOMER-PROFIT MODEL
Sears suggest that in an organisation outcomes are a direct result of the behaviour of customers and employees. They developed the profit model to explain and chart the processes of cause and effect from employee through to customer and also investment.
Employee Results
The human capital of the organisation. Good leaders improve the human capital. of organisations by improving employee knowledge, skills and productivity. This results in improved employee performance and commitment.
Investor Results
Investors need to be kept happy. Effective leaders balance investor need with organisational need for growth and development.
Sears knew that simply having a model of change wasn’t enough, they also needed a way of supporting the model and measuring it, that can take into account not only what is happening now but what may happen in the future. Sears do this through their ‘Total Performance Indicators’.
The Customer
Improving customer experience is a core part of effective leadership. But, customers are also an organisation’s biggest problem. They aren’t right all of the time. Leadership needs to balance customer need with organisational need.
Sears: Employee-Customer-Profit Chain
