December 2011
Don’t underestimate the high cost of poor leadership

The average organization is losing an amount equal to 7% of their annual sales because of poor leadership practices. The three main side effects of poor leadership practices are increased employee turnover, decreased customer satisfaction, and reduced employee productivity, according to David Witt, Program Director at The Ken Blanchard Companies.

Drawing from an initial look at organizations that have completed the Blanchard Cost-of-Doing-Nothing online calculator, Witt reports that organizations both small (under 100 employees) and large (over 10,000 employees) are all reporting a similar loss ratio.

"Considering that this percentage represents more than $1 million dollars in the average organization, it’s surprising that companies aren’t addressing the leadership gap more aggressively," says Witt.
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