People think that the financial target of any organization is the responsibility of the sales team, the general management and the finance team, however in reality, if the whole organization is not involved, this goal attainment will be very stressful.
Research shows that there is a direct correlation between employee engagement, customer engagement and business performance. This kind of employee engagement can be generated when the organization makes the economics of the business come to life by sharing key financial numbers. When people monitor these indicators, it becomes easier to move in the right direction.
Here is a guide to how we do this at ighcc:
- Gamify the approach
Company targets activate the threat response in the brain, therefore, making it fun through “gamification” leads to highly successful results while decreasing the amount of stress during the process. It’s not just that employees are owning the process. It’s that they’re players in the game; they take action, and they monitor the numbers to assess their actions and decide on whether they were on track or misguided. If they win the game, they know that it will payoff in various ways.
- Show the link between indirect function and revenue
There are several steps to achieving this:
- Training Employees
The main elements of a successful project execution include: quality, speed, and budget. Quality happens through commitment to delivering the promised results. Speed is possible through a high sense of urgency, responsiveness, and agility. And finally, budget management happens when communication, commitment to quality, and agility come together. Training leaders and employees on identifying a financial problem, visualizing its impact, and taking ownership for solving it can help them proactively develop solutions to stay on budget and meet targets.
- Encouraging Transparent Communication
Open sharing of information helps employees see the impact of their roles on the company’s strategy, creating a culture in which they are partners in a business’s success. When employees know “how they’re doing” as an organization on a macro level, they can more easily see on their level how they can contribute toward better and better results. It gives them more reason to want their company to succeed because they have a clearer part in it. But it’s hard for employees to pitch in effectively if they lack the underlying data that drives decisions. If you give workers the vague outline of a problem, don’t expect more than the vague outline of a solution. But if you give them hard numbers — a set of disappointing sales figures, say — you may prompt them to start tracking these metrics and brainstorm ways to make them move in the right direction.
- Building a culture of accountability
Getting employee buy-in through a culture of accountability is key to the successful accomplishment of your budgetary and financial goals. Teams that constantly demonstrate high levels of accountability deliver results with high quality and cost-efficiency. They are capable of anticipating potential areas of cost overrun early. And of remaining within the 3-5% of the budget that experts recommend.
- Set celebration milestones
The response from our clients to this is usually extremely positive. As employees start to feel more involved in the company’s financials and take steps in the right direction, the benefits will be evident on an organizational and individual level. Setting celebration milestones helps employees and leaders to pause, look at the impact of their performance, and feel empowered enough to maintain and push further.
Making financial transparency a priority is a challenge for any organization that requires both leaders and employees to step outside their comfort zones. However, based on research and on our experience, providing regular and clear data and educating all functions about the direct and indirect financial impacts of their roles will provide a high return on investment, whether through employee engagement or business performance.