PARETO, THE ORGANIZATIONAL ENERGY BAROMETER

by | Mar 25, 2024

Recently we came across an article discussing the Pareto Rule as it relates to your team. The gist of the article is as follows:

  • 20 % of your people generate 80% of the energy, positivity, performance and results. They take initiative, go the extra mile and focus primarily on solutions. They create an Ascending Spiral.
  • 20 % of your people generate 80% of the negativity, inefficiency and waste. They create a Downward Spiral. As a leader, you must quickly identify them, let them know you are aware of who they are, and take the necessary steps to reverse this spiral.

In our ever-changing market economy, which demands constant agility and adaptability, leaders are often faced with difficult choices about managing people to drive necessary organizational changes. Allies from the past, who were in the first group of people, are now in the second group. Sometimes for good personal reasons, other times this may be driven by other factors such as changes in the environment meaning they are no longer able to cope with the new normal or cope. identify with the new way of operating the company.

Having the right people, with high levels of drive and energy in the right roles is therefore becoming an increasingly important challenge for leaders. Our job market has also become very tight in terms of talent capable of meeting new challenges as well as the challenges of the future. Add to this the complexity of selection criteria for identifying future talent, diversity and inclusion, and leaders often choose to stay with their current team rather than make bold changes. However, these changes are necessary to ensure your business adapts; the attachment we may have for others or a leader’s own fears are often the main blocking factor.

As a recruitment firm, we face these challenges every day when speaking with our clients. Often, leaders underestimate the time needed to find new talent. Then there are also leaders’ not always informed assumptions about the skills needed for the role. The leader may also have neglected emerging talents within the organization itself, who could meet the challenge with a fresh perspective while also being carriers of the organization’s own culture and values.

Returning to the definition of the Pareto energy parameter, it is important in an ever-changing business environment to have the reliable dynamic 20% of your organization capable of maintaining high levels of energy, resilience and conviction. , while highlighting people who demonstrate their agility and their ability to face turbulence and growth.

At the same time, as a good leader and, like a Japanese bonsai gardener, you must be able to prune certain branches to allow the tree to grow bigger and stronger.

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