CEOs can Increase Profit by Connecting with Employees

In Our “Connected” World we have a Disconnect Problem

In today’s post-pandemic business landscape, CEOs face a critical challenge: staying connected with the day-to-day realities of their organizations. The Harvard Business Review article, “CEOs: Step Into the Front Lines or Risk Losing Touch”, highlights this issue by emphasizing the importance of direct engagement with front-line employees.

The Power of Front-Line Engagement

History has shown that listening to the entire workforce well is a key differentiator in the CEOs successful strategic planning, revenue growth strategies, and achieving a competitive advantage. Understand what life is like to be an employee.

It fosters trust, enables better communication, and helps identify potential issues early, ultimately leading to increased organizational success.

Take Mary Barra, CEO of General Motors, has been known for her hands-on approach. Before becoming CEO, Barra spent time on the factory floor, gaining a deep understanding of the manufacturing processes and challenges faced by workers. This experience was instrumental when she later had to make decisions about product development and operational efficiencies. Her time spent in the trenches provided invaluable insights into the nuances of automotive manufacturing and informed her leadership during critical innovation moments.

Another notable example is Jeff Weiner, former CEO of LinkedIn. Weiner regularly participated in customer service calls to better understand the user experience and the challenges faced by LinkedIn’s support team. This direct engagement with front-line operations allowed him to identify pain points and opportunities for improvement that were not getting to him through traditional paths,, leading to an improved customer experience .

At t McDonald’s, former CEO Steve Easterbrook spent time working in McDonald’s restaurants to experience the daily operations. This immersion helped streamline processes and improve customer service. By listening to Employees directly, Easterbrook gained a better grasp of the operational challenges and identified waysto simplify procedures.

Unfortunately, these examples of listening from the top are rare as most business leaders remain in their proverbial ivory towers, thinking the C-Suite is telling them everything they need to know. CEOs who rely on management, “open door policies” or HR to keep them informed risk becoming disconnected, potentially leading to decisions that are out of touch with on-the-ground realities.

Leveraging Technology for CEO-Employee Connection

Mary, Jeff and Steve can only be in one place at one time. The traditional way to address employee feedback is through the annual survey, which has numerous shortcomings. Organizations are hungry for solutions that offer real-time insight mechanisms, which are crucial in today’s fast-paced business environment. With technology advancements accelerating in business, particularly artificial intelligence, new tools are emerging to facilitate direct CEO-employee communication.

Spotlight on Lyssin: Transforming Employee Feedback

The solution to this challenge is clear: remove the barriers in the employee-to-CEO communication path and officially crown the CEO as CPP (Chief People Person) again. Lyssin.com, for example, uses AI to gather, organize and prioritize employee insights, delivering vital intelligence directly from the workforce to the CEO in real-time. Such tools help executives inform the decision-making that can boost profits and re-engage frontline workers.

Direct engagement with employees also allows CEOs to identify potential issues early, providing valuable insulation when forming risk management strategies.

An open employee insight conduit is something today’s top talent is looking for. An engaged leadership approach is crucial for attracting and retaining top talent.

A study by Stanford University on the impact of executive visibility found that companies where Leaders were open to listening to employees had higher levels of trust and morale. The study emphasized that they were more likely to understand and address the real challenges faced by their teams. This understanding can lead to more realistic and effective strategies, as leaders are better equipped to identify potential roadblocks and opportunities for innovation.

Satya Nadella, CEO of Microsoft has done just that, transforming Microsoft’s corporate culture by focusing on employee empathy. He frequently engages with employees across various departments and levels, encouraging open dialogue Along the way. This inclusive approach has not only revitalized Microsoft’s internal culture but also aligned the company’s digital transformation & innovation efforts with the needs and aspirations of its employees and customers, delivering exceptional leadership values.

Conclusion: Balancing Vision with Ground-Level Insights

The role of a CEO extends beyond setting strategic direction. It requires ensuring that this direction is informed by a deep understanding of the company’s operational and customer needs. By combining high-level strategic thinking with ground-level practical insights, CEOs can lead their organizations more effectively, fostering a culture of empathy, innovation, and continuous improvement.

By staying directly connected to the front lines through platforms like Lyssin, CEOs can ensure that their companies remain agile, responsive, and aligned with the realities of the marketplace.

If you are interested in a conversation regarding employee engagement and how it impacts a businesses financial performance metrics, please reach out.

Josh Frantz

CEO, Lyssin Josh.frantz@lyssin.com