Three out of the five practices considered to be the most important for improving company performance are linked to people management. The others relate to customer satisfaction and technological advances, according to an analysis by McKinsey&Company based on two surveys.

The first study surveyed 1,000 employees from companies in North America, Europe, Asia-Pacific and Latin America. The group was divided equally between senior leaders. The second survey involved 1,225 employees in 15 corporations – 12 in North America and three in Latin America. Around 20% of the professionals hold leadership positions.

According to the survey, in actions related to human capital, the policy least used by managers is feedback linked to professional performance, which is ignored by 42% of the companies. At the other end of the spectrum, the most widely adopted guideline is recognition of employees’ achievements, which is not practiced by just 5% of companies.

The five main actions suggested are:

1. Recognize team achievements
2. Reinforce the relationship between work and purpose
3. Understand customer needs
4. Use tools to make performance transparent
5. Redouble feedback

Erik Schaefer, a partner in McKinsey’s Toronto office, Joris Wijpkema, a partner in the Chicago office, and Richard Sellschop, a senior partner in the Connecticut office, point out that together these types of investments can yield great results. 

According to them, the top executives of the companies that have made the most progress in terms of operational excellence often say that one of the most difficult steps is precisely the first: getting started. The second step is to set a bold ambition. And the third step is to get the whole organization committed to performance. “Operational excellence requires the involvement of everyone, so that entire processes are reinvented, from suppliers to customers,” they conclude.

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Source: McKinsey | Valor Econômico