It has been said that “the only way for any organization to ensure its financial security is by creating satisfied, loyal customers.” To the extent that the organization is at all labor-dependent, we propose that the principal requirement for operationalizing that aim is the creation of a satisfied, fully engaged workforce. In the main, our products and services, technology, methods, tools, and strategies can all be copied. But it’s not as easy to duplicate a focused, caring workforce. In the final analysis, “people factors” are frequently the key source of competitive advantage—the factor least visible to the naked eye and most difficult to emulate. Sooner or later, we must come to grips with the fact that most businesses aren’t so much capital- or expertise- or even product-driven as they are PEOPLE-driven.

Bill Calette and Richard Hadden, Contented Cows Give Better Milk: The Plain Truth about Employee Relations and Your Bottom Line, 1998, p. 7.

Billions are spent every year on internal corporate communications, including $50 million. Even so, most organizations still do a miserable job of helping their folks understand the direction, goals, and priorities of the business (let alone securing their Commitment to them). If you doubt the magnitude of this “failure to communicate” claim, take five minutes and go do some field research of your own. Ask a sample of your people to jot down what they believe to be the organization’s three highest priorities and where they think it is headed. When the answers come back without any degree of consistency, the question is obvious: If they don’t know where you’re going, how can they possibly help you get there?

Bill Calette and Richard Hadden, Contented Cows Give Better Milk: The Plain Truth about Employee Relations and Your Bottom Line, 1998, p. 56.

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