According to GALLUP there are three types of employees: Engaged, Disengaged and Actively Disengaged. The bad news is that only 13% of employees are engaged in their jobs. These are the employees most likely to make positive contributions to their companies, whether by attracting and retaining new customers, driving innovation, or simply spreading their positivity to coworkers.
The bulk of employees worldwide — 63% — are “not engaged,” meaning they lack motivation and are less likely to invest discretionary effort in organizational goals or outcomes.
And, an extremely costly 24% are “actively disengaged,” indicating they are unhappy and counter-productive at work and liable to spread negativity to coworkers.
To the CEO, what are the logical solutions?Â 1. Strengthen the EngagedÂ 2. Don’t Hire the Actively Disengaged. And, 3. Engage the Not (yet) Engaged.
Return On Payroll
Return On Payroll (ROP) is a new metric for measuring the level of cognitive engagement of the enterprise.
Return On Payroll (ROP) is equal to Total Engaged Employees (TEE) divided by TotalÂ Shareholder Return (TSR), or ROP = TEE Ã· TSR
X10 THINKING raises the cognitive engagement of the enterprise and impacts directly on the creation of shareholder value. The payroll is one of the company’s most strategic capital investments and is the cost of total enterprise decision-making.
Total Shareholder Return (TSR), especially over the long-term, is arguably the single best indicator of comparative investment success because it reflects how well a CEO has created value for shareholders in highly competitive capital, labor, and product markets. The labor component of TSR is a function of employee engagement which sets both the quality and quantity of enterprise decision-making.
Every business day, the company’s most valuable output across the enterprise is decisions. Each and every one of these decisions has immediate and long term consequences which directly impacts on the minute-by-minute performance of the share price. Each decision either costs the company a dollar or makes a dollar.
The critical business problem facing the CEO is how to create value from this investment by engaging employees–paid thinkers–to increase their productivity and create value. This means directors and shareholders can get a much better return on payroll. This also means shareholders can make a much greater reinvestment back into the payroll for the growth of the company and the benefit of the employees. x10 can be a win-win for ALL the stakeholders.
Clever CEOs like Larry Page of Google and Jack Welch of GE have shown that bottom-up innovation can lead to higher and sustained productivity and a much better return on payroll. And, much better job security for employees.
| Enterprise Solutions
What are SOT Enterprise Solutions? SOT has had many years of successfully implementing the bottom-up strategy to small and big clients alike. SOT Enterprise Solutions are self-funding and offer clients a much better return on payroll. They are bespoke bottom-up innovation and thought-leadership projects designed for creating x10 results from bottom-up participation of all the stakeholders across our client’s enterprise. An SOT enterprise solution offers a Return On Payroll by raising the quality and quantity of enterprise decision-making by upgrading to x10 THINKING.
– Historically, the Santa Barbara Learn To Think Project was the first SOT enterprise solution in the early 80s. In California, the City of Santa Barbara became the first community in the history of the world to formally teach itself and all its stakeholders how to think for themselves. It became the world’s first cognocracy and was published in Reason Magazine. It attracted the public support of the ultra prestigious MacArthur Foundation. Even the Reagan Western White House got involved! As a result the School of Thinking’s famous Learn-To-Think Coursebook became the cover story of all April 1983 Readers Digest international editions to 68 million readers worldwide. This viral spread of SOT lessons in the 80s has never since been equalled by any competitor of SOT in the field of teaching thinking skills.
– The second enterprise solution became internationally famous and was featured in The Wall Street Journal, prime time TV news in the US, and in the UK and Australian press. It was a bottom-up solution for the hospitals of New York City and involved over 50,000 hospital employees. It was replicated around the world.
– The third enterprise solution was to get THINKING on the school curriculum, as a school subject in its own right. This has been the biggest success of all and has taken off virally around the world since we did the first major city, starting with all the school principals of the San Francisco Unified School District in the middle 80s and more recently at Melbourne Grammar School and Latrobe University.