When a company’s value dips below desired levels, executives often fail to consider the underperformance of their workforce as a possible cause.  Yet this oversight is costing businesses billions annually.
 
“It’s amazing that even the most engaged executives have people problems in their organizations,” says Seth Leibler, CEO of CEP, the industry leader in solving performance problems.  “People problems translate into performance problems that result in lost dollars and decreased value.”
 
With the rapidly changing business environment of today, performance problems are more frequent than ever.  They remain the primary reason more than 70% of strategic initiatives (like M&As) fail to meet their financial objectives.
 
There are countless examples of failed initiatives.  The dissolution of Pan Am and Trans World Airlines (TWA).  The near-disappearance of Lucent Technologies.  McDonnell Douglas’ journey to extinction.  All are evidence of the threat of underperformance and other problems resulting from organizational change.
 
“You would think that most Fortune 500 companies, with all their collective management wisdom, would have already mastered solving – and even preventing – performance problems,” states Leibler.  “The fact is that it’s a skill that must be learned – not simply acquired on the job – but many organizations don’t recognize that.”
 
For your organization to be successful, you need a strategy and tactics for improving underperformance of critical business units.  Leibler recommends beginning with a Performance Analysis, a proven and powerful method of diagnosing performance problems and skill gaps. 
 
“Performance Analysis is based on behavioral science research and it’s a concept that seems obvious and pure common sense,” says Leibler.  “It’s anything but.  Performance Analysis is the most powerful tool we have to solve performance problems in any organization.”
 
Conducting a Performance Analysis enables you to determine critical factors affecting performance, such as what people are doing versus what they should be doing, and the reasons for the disparities.  Once you know what the problems are and why they exist – lack of skill, not enough time, lack of proper equipment – you can develop appropriate solutions. 
 
CEP can quickly assess the true causes for underperformance.  “It’s impossible to solve a problem if you don’t know what the problem really is,” concludes Leibler.  “Performance Analysis is a seemingly simple concept that can have a tremendous financial impact on an organization.”
 
To learn more about how CEP can conduct a Performance Analysis for your organization, call Paula Alsher at 800.558.4237.