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Flat Army: Creating a Connected and Engaged Organization by Dan Pontefract

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Chapter Five

Being a Connected Leader

I'd like to open this chapter with a reference to “Management Practice & Productivity: Why They Matter,” a report produced by Nicholas Bloom of Stanford University and a few of his colleagues that researched the performance of more than 4,000 manufacturing operations in the U.S., Asia and Europe. In this landmark study, the researchers found that

[i]mproving management practice is associated with large increases in productivity and output. Across all the firms in the research, a single point improvement in management practice score is associated with the same increase in output as a 25 per cent increase in the labour force or a 65 per cent increase in invested capital.1

That is, if leaders do a better job of being leaders, every single percentage point of improvement is equal to vast amounts of other operating or capital expenditure investments. The authors of the report went on to further assert that

the majority of firms are making no attempt to compare their own management behavior with accepted practices or even with that of other firms in their sector. As a consequence, many organizations are probably missing out on an opportunity for significant improvement because they simply do not recognize that their own management practices are so poor.2

Talk about the blind leading the blind.

If a leader within the Flat Army is paying attention, the next level to aim for and achieve is being a connected leader. Being a connected leader is about ...

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