The Staggering Cost of Bad Management

 
Bill Eckstrom Teaching
 
 

At work, we either have bosses, we are a boss, or both.

They are also called managers, directors, executives, regionals, assistant VPs, VPs, and many more titles; however, whenever someone outside of work is hired to help us develop we refer to them as a “coach”. Why is it that in athletics they are exclusively referred to as a coach?

Experience, research, and common sense tell us that a “coach” brings differentiated talents and skills, assistance, understanding, and more overall development than a “boss” is able to deliver. So, if that is the case, why do we even have bosses at work? Wouldn’t we all be better off with coaches instead?

According to Gallup, over 70% of bosses don’t have the talent to maximize the performance of their team. When looking specifically at sales bosses, EcSell Institute research shows that the bottom 80% of them deliver an average of $4.1M less per team when compared to the top 20% (read the research here).

A good boss who behaves like a high performance coach is worth his or her weight in gold.  (Tweet this!)

Bad bosses also demotivate. Demotivating bosses deliver an average of $2.1M less per team, and we show approximately one in three bosses deliver no motivation. If we want to break down the $2,100,000 cost each month, week, and day it would be: 

  • $175,000 per month

  • $43,750 per week

  • $5,753 per day

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