The Profit Leak Blog

In most organizations, the manager is the difference between a team that thrives and one that quietly underperforms. And yet, most leadership teams have no real system for measuring how managers lead. We track revenue. We track customer churn. We track NPS. But when it comes to the effectiveness of the people who directly shape day-to-day culture, clarity, and execution — we mostly rely on anecdote. According to Gallup’s 2025 State of the Global Workplace Report, global manager engagement has dropped to 27%. That’s a problem on its own. But it gets worse: Gallup also found that 70% of the variance in team engagement is directly tied to the manager. Which means when a manager checks out, the team almost always follows. Think about the ripple effect — lower productivity, rising turnover, disengagement, missed goals, even safety and compliance issues in some industries. If managers are disengaged, misaligned, or ineffective, your strategy stalls in execution. Culture degrades. Momentum dies slowly. It’s not that organizations don’t care about leadership — most do. The issue is that leadership performance is rarely measured with the same rigor as other business-critical functions. Instead, it’s often inferred from lagging indicators (retention, team morale) or loosely gathered through annual surveys. That’s not enough. Especially now. At SKOR, we’ve seen firsthand how culture and performance are deeply intertwined — and how much of that comes down to the manager. That’s why we built a framework to assess culture through the lens of leadership. Not just whether people are “engaged,” but whether leaders are building environments where people can thrive. Our approach uses a 50-question assessment — one version for People Leaders, another for Individual Contributors. This lets us measure how leaders lead, and how their teams experience that leadership. The goal isn’t to point fingers — it’s to bring clarity, so leaders know exactly where they’re doing well, and where they need to grow. We break it down into three core ingredients of workplace culture: Cohesion – Is the team aligned on purpose and values? Clarity – Are expectations and goals clearly defined? Courage – Do people feel safe to speak up, take risks, and learn from failure? Beneath that are seven critical indicators of team performance — like accountability, adaptability, recognition, and growth mindset — all measurable and benchmarked across teams, departments, and even industries. Clients are increasingly using this data as part of manager performance reviews and team scorecards. Because if you can measure how a team is functioning, you can coach toward better outcomes. You don’t need more opinions about your culture. You need better visibility into how your leaders are shaping it. That’s what SKOR provides — a standardized, data-driven way to measure culture at the team level. If NPS is the benchmark for customer experience, SKOR is becoming the benchmark for workplace culture — with one key difference: it doesn’t just reflect sentiment. It reveals leadership impact. So ask yourself: Do you know which managers are creating high-performing teams? Can you spot early signs of leadership breakdown? And do you have a system to track it over time? If not, it may be time to treat leadership like the strategic asset it is — and make it measurable. 🔵 Start with a free SKOR Preview and see how your leaders stack up.

As kids, we saw our parents wear confidence like armor—solving problems in silence, never showing cracks. Strength meant never admitting struggle. But today? Courage has a new face. It's not about hiding the hard stuff—it’s about owning it. True leadership now means showing vulnerability, sharing challenges, and inviting others in. That’s the kind of bravery that builds trust and drives teams forward. Disengagement thrives in workplaces where employees fear failure, don’t feel safe speaking up, or believe their contributions don’t matter. Courageous leadership changes that. Employees need the courage to take risks, challenge ideas, and bring their best selves to work, however the willingness to do that is dependent on the leaders modeling this first. Managers must model courage by leading with vulnerability, empowering decision-making, and fostering a culture of curiosity. A disengaged workforce is expensive, but a courageous, committed one? That’s an investment that pays dividends. Courage – The Leadership Multiplier You Can’t Afford to Miss If Clarity sets the course, and Cohesion gets the team moving, Courage is what keeps the engine running—especially when the road gets bumpy. Disengagement thrives in environments where fear rules the day. When employees feel like speaking up, making mistakes, or taking risks will be punished, they don’t lean in—they check out. And when that happens, you don’t just lose creativity—you lose momentum, morale, and money. The Fear Factor: What It’s Costing You According to Gallup, fewer than 3 in 10 employees strongly agree they can take risks at work without fear of negative consequences. That’s not just a psychological safety issue—it’s a performance issue. Without courage, innovation stalls, engagement flatlines, and trust in leadership erodes. Courage Starts at the Top Courage isn’t a soft skill—it’s a leadership discipline. It shows up when a leader admits a mistake, opens space for feedback, or empowers someone else to take the lead. When leaders model courage, it becomes contagious. When they don’t, fear sets in. In our SKOR Assessment, we measure Courage as one of the 3 C’s of workplace culture. One of the questions we ask: “In my team, it’s safe to challenge ideas, ask questions, and take risks.” If your people don’t feel safe to speak up, your culture is quietly taxing your results. Courage in Action: What It Looks Like Create Psychological Safety: Encourage respectful dissent and feedback without punishment. Normalize Risk and Failure: Innovation demands mistakes. Reward learning and progress, not just outcomes. Lead with Vulnerability: When leaders admit they don’t have all the answers, trust grows and empowers others to step up. Empower Decision-Making: Equip your team to act autonomously. Courageous Cultures Win Disengaged teams cost you. Courageous teams pay you back—in innovation, ownership, and long-term retention. So the real question is: are you building a culture of fear, or a culture of courage? Want to see how courage shows up in your workplace? Start with the SKOR Preview. Next week, we wrap up the series with the final word on your Disengagement Tax refund—and how to get it.

Thanksgiving is a perfect opportunity to reflect on gratitude and consider how its values can influence workplace culture. Beyond the turkey and pumpkin pie, the holiday reminds us of the importance of cohesion, clarity, and courage—values that can drive growth, accountability, and engagement in the workplace. During a recent roundtable with Bruce Eckfeldt on November 6th, we explored the key elements of cultivating a company culture that not only fosters growth but also drives accountability at all levels. A strong culture begins with aligning your team to shared core values, setting clear and meaningful goals, and creating an environment where individuals feel empowered to take ownership of their roles. We dug deeper into how organizations can move beyond the superficial fixes offered by traditional engagement surveys mentioned in a recent Gut + Science podcast from the PeopleForward Network. These tools often miss the mark by addressing surface-level symptoms instead of uncovering the root causes of cultural challenges. True transformation comes from measuring employees’ day-to-day experiences and creating spaces where people feel valued, supported, and motivated to do their best work. This approach aligns perfectly with the spirit of Thanksgiving—a time to focus on what truly matters, express gratitude, and strengthen the bonds that unite us. Much like gathering with loved ones for a holiday meal, fostering a workplace culture grounded in appreciation and purpose can inspire individuals to contribute more meaningfully and connect with the broader vision of the organization. The team on the Amazing Teams podcast talked about in a recent Taco Byte episode , this is about more than just addressing issues reactively; it's about taking proactive steps to ensure that employees are not only heard but also understood. By focusing on the small, everyday moments that shape the employee experience, companies can cultivate a culture of gratitude and accountability that drives lasting growth and success. This Thanksgiving, let’s embrace the opportunity to reflect on how gratitude can transform both our personal and professional lives. Let’s create workplaces where people feel not just appreciated but empowered to thrive.

Too often, HR is viewed as a necessary but expensive department that focuses on compliance, payroll, benefits, and evaluations—a “cost center” in the eyes of many business leaders. This view is outdated and fails to recognize the true potential of HR as a strategic partner  in driving organizational success. When done right, HR should be treated as a profit center , playing a key role in empowering and developing employees, improving culture, and delivering a solid return on investment (ROI). The Cost Center Mentality: A Limited View of HR Historically, HR has been seen as a cost center because its activities—compliance, payroll, benefits administration, and employee evaluations—are necessary but don’t directly generate revenue. Many organizations look at HR as a department that must exist to reduce legal risk and ensure operational efficiency. This limited view sidelines HR, restricting its ability to shape and drive the strategic goals of the business. While functions like payroll and benefits are essential, reducing HR to these tasks is like viewing marketing solely as a department that creates brochures. HR has the potential to do much more than its traditional responsibilities, and organizations that see HR as a strategic partner instead of a cost burden can unlock significant value. HR as a Strategic Profit Center When HR is aligned with business strategy, its impact on profit and growth can be transformative. Here’s how HR can be repositioned as a profit center : Developing Talent for Business Growth HR’s ability to attract, retain, and develop top talent is one of the most powerful ways it contributes to profitability. Talented employees are the engine of innovation, productivity, and customer satisfaction. When HR invests in leadership development, mentorship programs, and continuous training, it builds a workforce that delivers better business outcomes. A study by the World Economic Forum shows that companies with highly developed HR practices experience 3.5 times the revenue growth and twice the profit margins compared to those with less strategic HR. Transforming Culture into a Competitive Advantage A strong organizational culture is a key driver of both employee engagement and customer satisfaction. HR plays a vital role in shaping and sustaining that culture. Rather than just enforcing policies, HR should focus on creating a culture of innovation, collaboration, and accountability . According to research from Gallup, highly engaged teams show 21% greater profitability, and companies with strong cultures experience higher customer satisfaction. By fostering a winning culture, HR can significantly boost both employee performance and overall business results. Reducing Turnover and Associated Costs Employee turnover is one of the biggest hidden costs for companies. Recruiting, onboarding, and training new hires can be expensive, but the real cost comes from lost productivity, disengagement, and the impact on team morale. Strategic HR can reduce turnover by creating career development opportunities , recognizing and rewarding employee contributions, and addressing issues before they escalate. Reducing turnover even slightly can lead to significant savings and greater continuity in business operations. Studies show that a 10% reduction in turnover can lead to millions of dollars to the bottom line. Maximizing Productivity HR can directly impact productivity through workforce planning and optimization. By aligning the right talent with the right roles, HR ensures that employees are working efficiently and effectively. HR also plays a critical role in helping employees navigate challenges, whether through training or conflict resolution. Maximizing productivity can have a direct impact on the company’s bottom line. How HR Can Deliver ROI HR departments need to demonstrate their ability to deliver ROI just like any other business function. Here’s how HR can focus on quantifiable metrics to show its profitability: Tracking Employee Performance Improvements : Measure the increase in productivity from employee training programs and leadership development initiatives. Employee Retention Rates : Show how reducing turnover saves the company money by calculating the cost of recruitment and onboarding versus the savings from retaining high-performing employees. Engagement and Profit Metrics : Use employee engagement surveys to correlate improvements in culture with higher customer satisfaction scores and profitability. Time-to-Hire Metrics : Speeding up the time it takes to fill critical roles can reduce downtime and productivity losses. Moving Forward: HR as a Strategic Business Partner Leaders need to shift their thinking to view HR as a profit generator , not just a department that handles administrative tasks. HR should be involved in strategic decisions , playing an active role in shaping the direction of the company by maximizing talent, fostering culture, and ensuring that the workforce is aligned with business goals. To fully realize HR’s potential, business leaders should: Integrate HR into the C-Suite : Make HR an integral part of the executive team (and not reporting to the CFO), ensuring they have a seat at the table for key strategic discussions. Invest in Technology : Tools like predictive analytics, workforce planning software, and employee engagement platforms can help HR provide data-driven insights that improve decision-making. Expand HR’s Role Beyond Compliance : Encourage HR to focus on long-term employee development, leadership training, and culture building. Conclusion: HR is a Profit Center, Not a Cost Center The perception of HR as a cost center is outdated and inaccurate. HR has the potential to drive growth, increase profitability, and create a strong, competitive culture when empowered to focus on strategic initiatives. By shifting its role from an administrative function to a strategic partner, HR can directly contribute to the bottom line and help organizations thrive in today’s competitive landscape. It’s time for leaders to recognize HR as a profit center  and unlock its full potential.

For those familiar with my journey, my passion for fostering high performance is evident. Whether it's undertaking challenging Spartan races with mates, steering teams towards success, or fostering robust conversations in my YPO forum, my ethos has consistently been to inspire and elevate those around me. In recent months, as I pondered my next venture, my long-standing commitment to organizational goal-setting and driving performance became a focal point. With over two decades of experience in creating and growing companies like Unique World and Tinybeans , I've come to understand the intricate challenges CEOs face. I've spoken to 48+ CEO's in recent months (to validate this) and they all agree - this part of their job is a struggle. And on top of that, there is no transparent measure to drive high performance - it's all subjective with no benchmarking in place. Image: Teams working in alignment win more. It's at this crossroads of my passion for challenges, innate motivation, and my desire to improve workplace performance universally, that SKOR is born. My mission with SKOR isn't just to advise CEOs on strategies to amplify their teams' potential but to establish a clear industry standard for gauging workplace performance. According to Gallop Research , the cost of disengaged employees to the tech industry exceeds $19 billion annually. Beyond the loss incurred from disengagement, employee turnover is monumental, with recruitment costs often surpassing 150% of an individual's salary. Despite significant investments in systems aimed at aligning employees with organizational goals, the prevalent frameworks often fall short, marred by ambiguity and lengthy implementation timelines. With SKOR , our ambition is clear: to enable High Performance in the Workplace! Think of us as your “Chief Performance Officer”. We envision a future where SKOR becomes the universal metric for performance, prompting questions of organizations like: "What's your SKOR ? How does it stand against peers in your sector? Or against companies at a similar growth stage?" To the trailblazing CEOs of the tech industry (other industries will be launched later): I invite you to discover your SKOR . Dive into our platform here and embark on this journey towards improved team performance. We are committed to elevating workplace performance, enriching employee engagement, and aligning individuals with the broader organizational vision. Our aspiration? For future Gallup reports to highlight the transformation SKOR has ushered in, reflecting enhanced workplace motivation and performance. I'm beyond excited!! Eddie Geller Founder

I was listening to another wonderful podcast on the weekend by Robert Glazer, where this time he spoke with Marshall Goldsmith, who many believe is the best leadership coach in the world. Everyone should have a listen here and make their own conclusions. There is no doubt that he is impressive and there is much to learn about him and his philosophies. There was so much to unpack, but one area struck a chord with me, and I believe isn't spoken about, nor utilized in the life or the workplace is the concept of Feedforward. In our search to improve performance, most organizations rely heavily on feedback. Reviewing what has already occurred is crucial for identifying strengths, analyzing failures, and enhancing skills. However, exclusively focusing on the past has its limitations. To unlock growth, we must balance feedback with an often overlooked counterpart: feedforward . What is the difference? Feedback evaluates past and current performance, while feedforward provides suggestions for the future. Feedback often centers on critique and correction, whereas feedforward emphasizes possibilities and solutions. Both play vital yet distinct roles. Feedback is invaluable for: Pinpointing areas for improvement based on actual experience and results Affirming positive progress made toward goals Fostering accountability for work completed Determining development needs through performance reviews However, excessive criticism in feedback can lead to demotivation. And a rigid focus on “what is” may hinder imagining “what could be.” Feedforward enables: Envisioning aspirational futures versus reflecting on current states Building confidence by focusing on potential versus shortcomings Suggesting solutions tailored to individuals’ strengths Exploring new approaches without judgement With feedback, we look in the rearview mirror; with feedforward, the windshield. Both perspectives are imperative. Feedback offers wisdom from experience that informs high performance. Meanwhile, feedforward fuels what if scenarios, puts the feedback into context with suggestions for improvement and in turn levels up performance. Best practice is to integrate both throughout the employee lifecycle. Provide regular informal feedback to support progress. Conduct formal performance reviews to measure achievements. Then use feedforward to propel each person forward. Offer feedforward that is motivational and meaningful. Getting this combination right unlocks individual, team and organizational excellence. Feedback and feedforward together enable continuous improvement fueled by lessons learned and guided by inspiring visions of what could be. With both lenses, we gain wisdom and clarity to level up our people and drive increased motivation and in turn performance.

I'm re-reading Dale Carnegie's timeless classic "How to Win Friends and Influence People", for the 3rd time and it keeps getting better. Amazing for a book that was written in 1936. What is interesting is that as our world gets more complicated and challenging, the simplicity offered in the book has never been so relevant. I could write many blogs on all the principles (which I may) but let's start with the first one: Don't criticize, condemn or complain. Yes! I never said it was easy to do - but it is simple to understand. So rather than criticize, try to understand the other person's perspective and give sincere appreciation. While it sounds simple, not criticizing others is extremely difficult to put into practice consistently. Our natural tendency is to point out faults and mistakes, whether to others or just in our own minds. However, Carnegie's advice rings as true today as when he first wrote it in 1936. When we criticize others, even if we think we're being helpful or constrictive, it puts them on the defensive. Their natural reaction is to justify themselves and resist the criticism. As Carnegie wrote, "Criticisms are like homing pigeons. They always return home." The more we criticize others, the more likely they'll turn around and criticize us right back. It becomes a vicious, toxic cycle that only breeds further resentment and defensiveness on both sides. Instead of immediately judging and criticizing, we need to step into the other person's shoes. What are their motivations? What context or perspectives might we be missing? Carnegie noted, "Instead of condemning people, let's try to understand them. Let's try to figure out why they do what they do." When we make even a basic attempt at empathy, it opens the door to more effective communication and conflict resolution. At the same time, Carnegie advised being "lavish in our praise and hearty in our approbation" towards others. Who doesn't appreciate receiving sincere compliments and approval? When we look for things to genuinely appreciate and praise in others, it disarms them and makes them far more receptive to us. As he shared with us in the book, "you catch more flies with honey than vinegar." Changing our critical, judgmental behavior towards appreciation and understanding isn't easy. It takes constant personal vigilance and effort. But by applying this first fundamental principle from Dale Carnegie, our relationships and overall influence over others will improve dramatically. In a world of conflict, negativity and egocentric criticism, extending a hand of empathy and appreciation can be transformative. Start looking for what to appreciate, not what to criticize.

In any organization, scoreboards are a critical tool for tracking metrics (KPIs), accountability and tracking what matters. A well-crafted scorecard not only tracks progress but also motivates the team and aligns efforts towards strategic goals. However, far too many leaders fall into common pitfalls when designing these scoreboard systems, rendering them ineffective or even counterproductive. Here are three mistakes to avoid at all costs – along with three easy-to-follow best practices for crafting high-impact scoreboards. In Celebration of the NY Knicks making the play-offs! 3 Mistakes Nearly All Leaders Make: Overcomplication of the Metrics: Complex scoreboards with a dizzying array of metrics and KPIs are a surefire way to confuse and demotivate your team. When everything is a priority, nothing is a priority. Avoid overwhelming employees with too many disparate numbers and goals. Prioritizing Lagging Indicators: Scoreboards that solely focus on outcomes or lagging indicators (revenue, profitability, etc.) don't provide clear lines of sight into the critical behaviors that ultimately drive results. Leading indicators revealing team effort and activities are essential for influencing performance. Just like in sports - focus on people can control. Dwelling on the Negative: No one is inspired by constant negativity and criticism. Scoreboards overly fixated on gaps to goals, missed targets, and failures inadvertently discourage teams and foster a culture of fear versus proactive empowerment. 3 Winning Scoreboard Best Practices: Simplify and Clarify: The best scoreboards are elegant, focused, and overwhelmingly clear. Home in on just 3-5 key leading and lagging indicators that are well-defined and unambiguous. Simplicity breeds understanding and accountability. Make it a Team Sport: Effective scoreboards should emphasize team-oriented metrics over strict individual goals. This promotes transparency, shared ownership, cross-functional collaboration and the smooth passing of handoffs. Rallying together as a united front yields dramatically better results. Inspire with Victories: While you can't ignore misses completely, scoreboards highlighting achieved goals, wins, and successes motivate better than a constant negative focus. Celebrate breakthroughs, rally cries for improvement come better from a place of positivity than criticism. By avoiding the three deadly mistakes and implementing the trio of best practices, you'll be equipped with scoreboards that drive high-performing behaviors. These visual management tools can powerfully inspire teams – but only when designed in a way that provides clarity, promotes collective ownership, and favors high performance with the spirit of recognition over negativity.

As a CEO/leader, you've likely heard the term "accountability" thrown around in countless leadership seminars, books, and articles. However, true accountability goes beyond mere buzzwords and requires a deep understanding of its core principles. In my 25 years' experience in building teams (and companies), I've discovered that genuine accountability occurs when an individual takes full ownership of the outcome and has complete control over the inputs. We have seen too often that "accountability" is given to someone however they are constrained to truly own the outcome. They own the result but really don't control all the inputs. If that is the case, they are not accountable. Consider the story of Sarah, the Head of Professional Services of a mid-sized technology firm facing a crucial project launch. With deadlines looming and the team behind schedule, the atmosphere was thick with anxiety. Rather than assigning blame or deflecting responsibility, Sarah stepped forward, involving herself deeply in recalibrating the project's timeline and replacing and re-allocating resources where they were most needed. She held daily check-ins and provided clear, consistent communication across departments. When the project launched successfully, it was not just a win for the company but a testament to what accountability in leadership looks like: ownership, initiative, and hands-on problem-solving. So, how can you, as a leader, cultivate true accountability within your organization? Here are three tips to get you started: Lead by example: Demonstrate accountability in your own actions and decisions. Admit when you've made mistakes and take responsibility for the outcomes. Empower your team: Give your employees the tools, resources, and authority they need to take ownership of their work. Trust them to make decisions and support them along the way. Create a culture of ownership: Encourage a mindset shift from "It's not my job" to "How can I contribute to the solution?" Celebrate individuals who take initiative and own their outcomes. Remember, true accountability is not about assigning blame or punishing failure. It's about creating an environment where individuals feel empowered to take ownership, learn from their experiences, and drive positive results. By embracing the true meaning of accountability, you'll not only become a more effective leader but also inspire your team to reach new heights of success.

Here are some key insights from SKOR CEO, Eddie Geller, after attending CultureCon… I was at CultureCon last week and at one of the keynotes, there was a slide that caught my attention. It was a powerful visual of runners in motion, accompanied by the words: "THINK big, START small, MOVE fast." These three simple phrases shared by Orlando Ashford resonated with me, encapsulating a philosophy that has shaped successful leadership and organizational transformation over the years. As CEOs, we are constantly pressured to deliver results and build companies that can adapt and thrive in a competitive landscape. Yet, the sheer scale of what we aim to accomplish can feel overwhelming. “Thinking big”  is essential because it defines the vision — the beacon that guides our teams. However, too many leaders get bogged down in the immensity of their goals and never get off the starting block. They over-plan, overthink, and become paralyzed by the fear of imperfection. This is where “starting small”  becomes the pivotal step. Leaders who win don’t wait for the perfect conditions. They know that momentum begins with action, however modest. One small, well-executed step leads to the next, and the path forward becomes clearer. In fact, as I reflected on this slide, I realized how many groundbreaking companies and ideas started as something small — an experiment, a prototype, or even a conversation — before evolving into what we admire today. The last part of the mantra — “moving fast”  — is the heartbeat of competitive advantage. In today’s world, speed matters. Not in the sense of reckless execution but in fostering a culture of agility. Teams that are empowered to move quickly, make decisions, and iterate on their learnings will always outpace those who linger in analysis paralysis. As a CEO, creating a space where it's okay to fail fast but learn even faster can be your most effective strategy. If this idea resonates with you, ask yourself: What are your organization’s big dreams? Have you articulated them clearly? More importantly, what small, tangible actions can you take today to start? Then, challenge your team to move fast. Adapt. Iterate. Adjust course if necessary, but always keep moving forward. That’s the way to win the race. This one slide reminded me of a simple truth: success doesn’t always come from the grand, sweeping gestures. It’s often the result of bold thinking, small steps, and relentless forward motion.