9 Ways Managers Cost Companies Sales, Customers and Profit, and How to Fix It!

Doug Watsabaugh and Rick Conlow
Co-Founders of WCW Partners, Inc. a global management consulting and training
company and Co-Authors of SuperSTAR Leadership

Daniel GolemanKen Blanchard/
Paul Hershey
Marcus
Buckingham
Kouzes and
Posner
Steven Covey Frederick
Reichheld
John Maxwell Jack Welch
Tom PetersJim Collins

There’s a face and the word liar.

Do you see a musician or a
girl’s face?

Are you sure?

1. 50% of managers fail in their
jobs. An analysis of 12 studies
found the failure rate 30-67%.
2. 50% of managers didn’t know
improving service/quality would
reduce operating cost.
3. 50% of manager didn’t
understand people repeat
behavior that is rewarded.
4. 60% of managers didn’t think it
is right to brag about an
employee in front of others.
5. 2/3 of managers don’t set goals
with their employees.

6. 70% of managers didn’t believe
the best way to solve an employee
problem is through a mutual
decision making process.
7. 80% of managers don’t know that
observations in performance
feedback should focus on specifics
not generalities.
8. 80-95% of service/quality
problems are management
related.
9. 91% of employees want more
recognition and only 50% say they
get any at all.

 A?
 B?
 C?
 D?
 F?

 A?
 B?
 C?
 D?
 F?
Most people say D or F. This
is an opportunity for a
forward thinking leader.

1. Bad judgment in making decisions
2. Inability to lead teams
3. Problems in their relationships
4. Inability to lead themselves
5. Inability to learn from their mistakes
6. Deals with conflict poorly
7. Poor administrative skills
8. Lack of business sense
9. Lack of strategic thinking
10. Can’t delegate
Bentz 1990, Echinger & Lombardo 2003, and Hogan, Hogan and Kaiser 2009

1. 50% of employees say that their
managers fail to make them feel
valued and important.
2. 50% of employee time is idle
and they do not work.
3. 55% of employees are
unsatisfied with their jobs.
4. 61% of employees felt they
weren’t treated as professionals
and wanted more respect.
5. 65% of employees in North
America say they weren’t
recognized at all in the last year.

6. 77% of employees say they are
looking for another job.
7. 80% of employees say they get
no respect at work.
8. 75-80% of the workforce are
disengaged and not committed
to the company’s goals.
9. 88% of employees say they
don’t get enough recognition
or acknowledgement at work.

• The #1 reason employees say they quit
is because of unhappiness with their
boss.
• Employees with bad bosses are 4 times
more likely to leave than employees
who consider they have good bosses.
• Interviews in 700 companies of 2
million employees suggest that the
productivity of employees depends on
their relationship to their direct
supervisor or manager.
• Employee dissatisfaction leads to
lower productivity and customer
dissatisfaction. According to ACSI, the
national customer satisfaction rate is
76.5-average!

1. Clear Goals and Expectations- Locke and Latham-16%
improvement!
2. Training- ASTD Study- Companies in top quarter of training
expense ($1500 per year or more) average 24% higher profit
margins.
3. Communication- Wyatt Study- 30% increase in market value!
4. Coaching- Personnel Management Association-88% impact!
5. Leadership Flexibility- Blanchard, Hershey, Goleman- 15-20%
more results.

6. Recognition- Jackson ROI Study-triple return on equity for
companies with more recognition than those companies who
do less.
7. Promotions/Incentives- Performance Improvement Institute-
22% impact on results!
8. Customer Loyalty- Bain Research, 5% improvement in
customer retention improves profit 25% or more!
9. Hiring- Personnel Policy Service-the wrong hire cost 3X the
annual salary.

Recognition
CoachingLeadership
Flexibility
Communication
Clear Goals
ExpectationsRecruit
& Hire
Winners
Continuous
Improvement
Promotions
Incentives
Training

“There is at least one point in the history of any
company when you have to change dramatically to
rise to the next level of performance. Miss that
moment - - and you start to decline.”
- Andrew S. Grove

Daniel GolemanKen Blanchard/
Paul Hershey
Marcus
Buckingham
Kouzes and
Posner
Steven Covey Frederick
Reichheld
John Maxwell Jack Welch
Tom PetersJim Collins
Rick Conlow Doug Watsabaugh
“There is no excuse for leaders not to know what to do or how to do it.”
WCW Partners has synthesized the best from management leaders for you in our
book, SuperSTAR Leadership, A 31 Day Plan to Motivate People, Communicate
Positively and Get Everyone On Your Side

• Retail Company- Customer loyalty focus achieved dramatic gains of 15 points
in customer surveys, 8% improvement in same store sales, 5% gain in
transaction counts and a 60% decrease in complaints.
• Services Company- With a customer driven SuperSTAR Sales process,
increased sales to existing customers 75% the first year while improving
retention. Achieved five record years in a row!
• Medical Manufacturer- Sales Strategic Planning, BEST Sales training, coaching,
and client satisfaction development increased growth over 30% in a down
market!
• Technical Company- BEST Sales training, Leadership development and
Customer Loyalty Planning moved the business from $4M to $40M in four
years!
• Recognition: 33 service quality awards, Ford’s President’s Awards and the
JD Power Award.

Watsabaugh Conlow Worldwide is a performance
improvement company.
Based in Minneapolis/Saint Paul, Minnesota, we
work with clients in a variety of industries
worldwide to help them excel in sales, service and
leadership.
To learn more visit us online:
www.wcwpartners.com
www.wcwpublishing.com
Toll free: 1-888-313-0514

9 Ways Managers Cost Companies Sales, Customers and Profit, and How to Fix It!

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