Increase in profit 30%. Increase in staff engagement 50%.
Managed IT Service provider uses MyBig5 software and achieves amazing results.
Greg Sharp, Managing Director, wonders : “Why has Base2, a young MSP supporting SMBs in New Zealand’s tiny cut-throat market, achieved such rapid growth and profitability when so many in our industry perform below their potential? Through years of work running businesses and consulting to MSPs who use Base 2 software to run their businesses, I’ve come to realise that employee engagement is one of the most powerful levers on business success.”
Greg continues: “I’ve witnessed remarkable changes in employee productivity and business momentum when workers know what’s expected of them – when they know the rules of the game, and how to play to win for themselves and their organisation. When employees are engaged, staff turnover drops, productivity and efficiency improve, customers notice, and profits spike. More important, perhaps, engaged employees are happier, both at work and in their lives, reaching a higher state US psychologist Abraham Maslow termed self-actualisation – a purpose-driven existence that motivates people to fulfil their potential in life.”
Truly engaged workers understand and embrace their organisation’s values and objectives; they’re motivated to go above and beyond to ensure the business achieves its goals. Research conducted by US-based experience management company Qualtrics found that highly-engaged employees are more likely to exceed performance expectations, contributing to 40 per cent less churn and 2.5 times revenue growth.
Greg is convinced that employees determine their own level of engagement – not managers. The psychology means employees must feel like active participants in individual goalsetting. Further, how their goals map ‘upstream’ to direct reports and business mission must be abundantly clear. Joint development gets everyone on the same field, playing by same the rules, and produces the extra effort that crystallises purpose and drives productivity, and profit.
In Greg’s experience, too many SMBs leave performance management to chance, at its worst convened as an annual review largely devoid of usable data, but rich in generalised assessments of “how things have gone” over the previous 12 months. Ninety-day reviews place employee performance on the radar more regularly, though unless employees are tracked against a set of goals that align with their manager’s KPIs and, in turn, the broader business mission, you’re no further ahead.
Such drawbacks are brought into sharper focus as the world looks down the barrel of a pandemic and the mass migration of workers to home office environments, where distractions, absent management controls, and a creeping sense of isolation put cracks in employee engagement.
Good theory remains just that without tools for the job. Base 2 set about filling the void, developing an App, called MyBig5, which aims to empower individual employees to define and measure their top-level tasks within a system that connects the dots between business vision and employee focus and effort. We call it directional alignment.