The Profit Leak Blog

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.

Employee Net Promoter Score (eNPS) has gained popularity in recent years as a quick and easy way for companies to gauge employee engagement. While it offers a snapshot of how employees feel about their workplace, the metric has some serious flaws that prevent it from being an effective tool for driving real cultural improvements. In fact, eNPS often leads to surface-level fixes that address symptoms rather than root causes. Here’s why relying on eNPS might be doing more harm than good, and what leaders should do instead. The Fundamental Flaws of eNPS It Excludes Passives – A Critical Blind Spot One of the biggest flaws of eNPS is that it completely disregards "passives"—those who give a score between 7 and 8. These employees are neither detractors nor promoters, and yet they make up a significant portion of the workforce. Ignoring their feedback means that companies are missing out on a wealth of insights from people who are likely still engaged, but not fully committed or enthusiastic. Passives can give you vital clues about the areas of culture that need attention to prevent disengagement. eNPS Is a Lagging Indicator eNPS measures the symptoms  of deeper cultural problems, not the root causes. It’s a lagging indicator, meaning it only tells you how employees are feeling after  they’ve become dissatisfied. Leaders might scramble to boost scores, offering perks or superficial benefits that fail to address underlying issues such as poor leadership, unclear communication, or lack of growth opportunities. Oversimplification of Complex Issues Employees’ feelings about their workplace are complex and multi-faceted. Asking them a single question—“Would you recommend this workplace to a friend?”—oversimplifies their experiences. This reductionist approach limits deeper exploration into areas that need improvement. Moreover, employees may give high scores out of fear of retaliation or due to loyalty that doesn’t necessarily reflect the workplace’s actual health. Lack of Actionable Insights While eNPS provides a number that is easy to track and compare, it lacks the depth needed for real cultural transformation. It doesn’t tell leaders why  people are detractors or promoters. Instead, it prompts quick fixes that address surface-level complaints but fail to touch the deeper cultural issues. R Recommendations for a Better Approach Shift to Leading Indicators Instead of focusing on lagging indicators like eNPS, leaders should shift to leading indicators  that provide more actionable insights. Metrics like team alignment, clarity of role, leadership trust, and opportunities for growth are much more telling about the health of an organization. These inputs allow companies to predict potential issues before they manifest as disengagement. Include All Employees—Promoters, Detractors, and Passives Employee feedback should be inclusive of all groups, not just the most satisfied and least satisfied. Gathering insights from passives—those who may feel neutral or ambivalent—can give leadership a clearer picture of where things might be slipping. Passives can often point out areas that are underdeveloped, offering valuable input for improvement. Dig Deeper with Qualitative Data In addition to quantitative metrics, it’s crucial to gather qualitative data that gives context to employee feelings. Surveys should ask why  employees feel the way they do, exploring their perspectives on leadership, communication, work-life balance, and opportunities for personal development. This allows leaders to understand the root causes of dissatisfaction rather than just focusing on boosting a score. Focus on Data-Driven Culture Assessments A data-driven approach that evaluates key aspects of culture—such as cohesion , clarity , and courage —offers a much clearer roadmap for improvement. By measuring whether employees are aligned with the organization’s mission, understand their roles, and feel empowered to take risks, leaders can address the real drivers of engagement and performance​. Conclusion: Rethink the Value of eNPS eNPS is a shallow metric leading to shallow fixes, and while it can offer a snapshot of employee sentiment, it is not a comprehensive tool for evaluating and driving a high-performance culture. Its focus on symptoms rather than root causes and its exclusion of a significant portion of the workforce (passives) make it a flawed metric. Leaders should instead focus on data-driven, inclusive, and proactive measures that dive deeper into the heart of organizational culture. By identifying the root causes of dissatisfaction and investing in solutions that foster alignment, trust, and growth, companies will see far more meaningful and long-lasting improvements in employee engagement.

As an entrepreneur navigating the intricate landscape of life, I've come to appreciate the profound impact of giving versus taking in both my professional and personal life. In my journey, I've encountered people who get immense satisfaction from extending a helping hand, sharing experiences, and fostering connections. We are the givers – the ones who find fulfillment in offering support, guidance, and resources to those in need, regardless of our own schedules. What's intriguing, however, is the prevalence of takers among us. These individuals are quick to request assistance, yet rarely reciprocate or consider the concept of giving back. What drives this behavior? What psychological mechanisms are at play that predispose some to take without giving in return? In my view, the essence of a fulfilling life lies in embracing a philosophy of giving without expectation. It starts with a mindset shift – recognizing that true fulfillment stems not from what we receive, but from what we give. By prioritizing acts of generosity, whether it's offering mentorship, making introductions, or simply lending a listening ear, we 're creating an environment of givers. Moreover, the act of giving transcends mere altruism; it's a profound learning experience. Each time we extend ourselves to help others, we glean insights, perspectives, and wisdom that enrich our own journey. It's a symbiotic relationship where both giver and receiver stand to gain invaluable lessons and connections. By giving freely and without expectation, we create a ripple effect that enriches not only our own lives but also the lives of those around us. And if you're not sure who you are, take the test!! You're at work, and a colleague is struggling to meet a deadline. What do you do? A) Offer to help them with their tasks to ensure the deadline is met. B) Politely acknowledge their struggle but focus on your own work, as you have deadlines to meet as well. C) Suggest they ask someone else for assistance, as you're too busy with your own responsibilities. D) Ignore their situation entirely and continue with your own tasks without offering any help or support. So... if you answered A, you're a clear Giver - you rock! Answering B suggests you have empathy but not a Giver . C or D, well you're a Taker - it's not too late to change!

In our endeavor for workplace excellence, it's easy to focus solely on the end goal of flawless execution. However, the reality is that the road to high performance is always filled with failures, mistakes, and imperfections. Companies that don't embrace a culture of failures, reflection of those mistakes and learning from them to improve, are likely to never achieve high growth results. When Eddie Geller was the CEO at Tinybeans , he set up a weekly Friday meeting with all staff called, "Wins & Fails". It encouraged people to share their wins for the week and also their fails (personally and/or professionally), in an environment where they would be supported and celebrated. Failures are HUGE learning opportunities, not just for the individual but also the team. Perfectionism kills creativity. When employees believe they will be harshly judged for any minor slip-up, they become risk-averse, only willing to take safe, incremental steps forward. People thinking creatively and pushing boundaries will frequently stumble and fall. If they fear retribution for honest mistakes, they will stick to their comfort zones, severely limiting their ability to innovate breakthrough solutions. On the other hand, a workplace where people feel psychologically safe to try new approaches will spark game-changing ideas. Mistakes reveal blind spots. Errors often expose flaws in company processes, training gaps among the team, or weaknesses in strategies. Rather than placing blame, organizations can mine mistakes for crucial insights on how to continuously improve. Open dialogue around what went wrong and how it can be fixed leads to improvements everywhere. Failures build resilience. Experiencing setbacks and bouncing back from adversity breeds grit and tenacity. Employees who overcome challenging situations gain confidence in their ability to handle whatever comes next. Organizations that support people through trials and tribulations end up with a resilient workforce, able to adapt and thrive amidst uncertainty. Celebrating progress creates momentum. Highlighting small wins and milestones - even when goals aren't fully achieved - fosters positive momentum. Recognizing efforts generates enthusiasm to keep striving. Employees feel their work has purpose when contributions are acknowledged, even if targets aren’t yet achieved. A high-performance culture develops gradually, as people build on lessons from prior results. Trying to be perfect from the outset causes frustration, whereas embracing growth and evolution leads ultimately to excellence. The bottom line is that sustainable success stems from learning together through roadblocks and mistakes. Organizations must move past punitive mindsets to create psychologically safe environments where people can take risks, gain insights, build resilience, celebrate progress, and achieve greatness over time. The imperfect path often leads to sustained success. When was the last time you celebrated a mistake or a failure?

In the era of digital transformation, where tech-based solutions are everywhere, it's disappointing to see many things are still not working. Despite the proliferation of performance management software designed to enhance employee performance and drive organizational improvements, many companies are still struggling. Even more concerning, as reported in recent workplace studies by Gallop and Slack , employee engagement is at an all-time low. So, what's the missing link here? The Illusion of Automation The "tool" solves our problems, right? Wrong! One of the primary reasons companies continue to grapple with performance issues lies in the illusion that software can automate the human aspects of management. Performance management is not a mechanical process; it's a nuanced, human one. While software can certainly assist in data collection and analysis, it cannot replace the essential element of human interaction. Neglecting the 'Why' Another common pitfall is the fixation on 'how' to measure and manage performance rather than addressing the 'why' behind it. Performance isn't merely about achieving goals; it's about understanding the purpose behind those goals. When companies neglect to align their employees' work with a greater sense of purpose and meaning, disengagement follows. Everyone must know the WHY! And sharing it once to an employee isn't good enough. It must be shared and repeated almost weekly, if not monthly. Data Overload Data can be a double-edged sword. While performance management software provides a wealth of data, it's often overwhelming. Companies find themselves drowning in metrics and Key Performance Indicators (KPIs) without a clear strategy for interpretation and action. Instead of empowering decision-making, data overload can paralyze it. The other day, a CEO shared he had over 20 metrics/goals that his management team were looking at every day. Why so many? Think less is more and the classic 80/20 rule. 80% of a company's performance will be in 20% of the metrics. What are the 20%? Ask your people! Change Management: A Critical Missing Piece One of the key elements missing in all this is embracing the "change". Introducing new software or methodologies without considering the impact on your organization's culture and processes can lead to resistance and, ultimately, failure. It must be woven into the culture and cadence of the organization. For example, in weekly 1 on 1's, performance and the metrics MUST be discussed. And how that person's performance is driving the team and the company's performance should be part of every week's conversation. And now my favorite one... Not industry and stage optimized. There is a lot of software out there around the area of performance management, particularly around goals/metrics, however few if any consider it from an industry or a stage perspective. So nearly all software albeit useful starts from a blank canvas. Software should make things easier, not harder. Companies shouldn't need months of consulting just to configure the software and get started. The ideal platform would simplify setup through guided workflows for specific industries and stages. With a conversational interface, the software could ask smart questions and generate customized frameworks tailored to a company's needs. This would enable quick implementation in hours or days rather than months. In conclusion, while performance management software can be a valuable asset, it's not a panacea for all performance-related challenges. By combining the efficiency of technology with effective change management, companies can bridge the gap between their software's potential and the actual realization of high employee engagement and performance. Start with your people from the bottom up. They know and want to succeed more than you might realize.

It’s just past 5am in Denver, CO, and I’ve been awake since 2:30am, thanks to a heavy Mexican meal and a restless mind full of thoughts. I’m here on a trip to catch a NY Knicks vs. Denver Nuggets game with my 13-year-old, which is pretty cool. Lying awake made me think about the balance of work, life, and those occasional sleepless nights. They’re not all bad, really. If you're mostly hitting around 6 hours of sleep a night, you're doing okay. But sometimes, the brain just kicks into overdrive. There are the classic reasons for being up at night, family worries, kids, health, finances, work, etc... And clearly where you are at in terms your life stage has a huge bearing on this however, I think the reasons we stay up or can't sleep fall into 3 buckets, Here’s what keeps me up at night, and maybe you can relate: Too Much To Do : This happens to me every few months. When it does, I jot down everything that’s on my mind. Getting it all out helps. If I’m still wired, a quick meditation session might do the trick. Family Concerns : The saying goes, "you're only as happy as your least happy child." It’s true, and it’s not just about kids but anyone close to you. Worrying is part of the deal. The trick is to acknowledge these feelings but also realize you can’t control everything. Support them, yes, but also let yourself rest. Business/Finances : There are certainly times when I worry about the finances. Especially now as I am in this transition phase of getting SKOR off the ground. The financial model and the actual product that is the business is critical. How will it become financially viable? How will it solve problems for CEOs? Will they pay for it? Exciting and daunting all at the same time. One personal experience share from building companies was, share your realities with your teams. The finances and the business. The more people that care and "lose sleep" over the numbers the better the business will become. Get back to bed now and here's to a better night sleep tomorrow.

Once upon a time, there was a large and prosperous kingdom ruled by a powerful Emperor who was admired by people far and wide for his charming wit and bold vision. He led a skilled team of advisors called the C-Suits, who helped him make decisions for the kingdom. Unlike other Emperors who never cared what people thought of him, this Emperor cared a great deal. He wanted to be liked and admired not for his title but for who he was a person. One day he asked his team of C-Suits to go find out what people thought of him. He summoned his Minister of Citizenship to ask “What do our people think of me? What do they think of my leadership, our values and vision for the future?” The next month the Minister returned with a sobering report: while the people could recite the poster values which were everywhere as part of the kingdom, they perceived the lived values were actually self-interest, strictness, cronyism, greed and deception. They saw the C-Suits ruthlessly pursuing status and wealth without compassion for the struggling everyday people. The Emperor was shaken to realize the enormous gap between what values were touted versus practiced. He saw that noble words alone were meaningless unless backed by aligned actions - especially from leaders whose everyday behavior sets the tone. With newfound commitment, he assembled his C-Suits and announced “We will restructure our policies and connect more personally with all sectors of our society. By living our stated values rather than just decreeing them, we will earn back the kingdom's trust.” To ensure the people believed him, he changed the laws of the royal court and decreed that if any person is his government did not uphold the behaviors of the values, they would be replaced. Months later, he ended up changing 20% of the C-Suits as they didn't live up to the values. And not surprisingly, the peoples trust of their Emperor grew and so did their admiration of him. The moral: values must be woven into an organization’s daily fabric. Ultimately people judge leaders not by the values they profess, but by the values they practice.

After being recommended it a few weeks ago (Thank you Eduardo), I've been reading Bill Campbell's Trillion Dollar Coach , and boy is it powerful!! This book is a must-read for everyone. Why? Because in one way or another, each of us plays the role of a coach. Whether it's guiding our children, leading a sports team, managing a team at work, or steering the entire company, the insights, stories, and principles shared in this book have the potential to significantly impact your life and leadership approach. Trust me on this. Despite only recently diving into it, the essence of focusing on the "team" has always been at the forefront of my approach. The internet is awash with articles on Campbell's coaching methodologies and principles, and it's likely that many of you are already practicing some of these fundamentals. However, a few concepts really struck a chord with me, presenting ideas I hadn't encountered before. And believe me when I say, I'm perpetually a student of leadership, always eager to absorb more. 1. Rather than worrying what your boss things, what do your peers think? One of the standout ideas is shifting the focus from what your boss thinks to valuing the opinions of your peers. In the workplace, there's often a rush to have a "manager" review and approve work, but if you're part of a team, whether it's 5 or 50 members, striving to manage up isn't always conducive to achieving the best team outcomes. Instead, seeking feedback from peers before heading to your manager can not only improve the quality of your work but also demonstrate your commitment to collaborative success. This approach is likely to impress your boss and lead to superior results, as it emphasizes the power of the team over individual efforts. So rather than think in silo's, perhaps consider thinking in small teams, which are all part of a bigger team. ONE team always! 2. Rather than solve the problem for a team, ensure the right people are on the team. The concept of ensuring the right people are in place to address challenges, rather than solving problems for the team, really resonated with me. Many managers feel compelled to step in and fix issues for their teams. However, Bill Campbell advocates for empowering the team to find solutions, emphasizing the importance of having the right team members tackle the problem. This might mean reassessing team composition if issues persist but resist the urge to solve the problems yourself. This method fosters growth, confidence, and the ability to achieve greatness within the team, rather than providing a short-term fix that could inhibit development. I'd encourage you all to read it and evaluate it for your every leadership behavior. I guarantee you will level up your leadership and in turn the people around you overnight!

In my 25 years of founding and growing companies, I've witnessed firsthand the transformative power of investing in culture. The return on investment (ROI) in culture is not just a feel-good factor, it's an imperative that drives tangible outcomes, including profitability, employee engagement, and sustained growth. Unlike the quantifiable certainty of things like customer acquisition or advertising, investing in culture offers a profound, often exponential, return that is integral to a company's core success. At the heart of a high-performing culture are core values, goal alignment and workplace engagement. These elements, when integrated, create a fertile ground for achieving remarkable results. A study by Deloitte revealed that organizations with highly engaged workforces outperform their peers by up to whopping 147% in earnings per share . This underscores the critical importance of aligning goals across the organization and embedding core values into every aspect of operations. Measuring the impact of culture on performance requires a thoughtful approach to metrics. Key performance indicators (KPIs) should have owners with clear accountability set. Often companies have metrics with no owners. I have never understood why. the classic adage, when multiple people have a metric, no one does. Add an owner!!! According to Gallup, businesses with highly engaged teams show 21% greater profitability. This data highlights the direct link between investment in culture and financial performance, offering a compelling argument for CEOs to prioritize these areas. A robust recognition and rewards program is pivotal in sustaining a high-performance culture. Such programs not only acknowledge individual and team achievements but also reinforce the behaviors and values that contribute to the company's success. A study by the O.C. Tanner Institute found that 79% of employees who quit their jobs cite a lack of appreciation as a key reason for leaving. Investing in recognition programs, therefore, is not just about retaining talent; it's about amplifying performance and driving ROI. Throughout my career, I've seen companies flourish when they invest in culture as if it were their core product. CEOs should view cultural investment not as an expense but as a foundational element of their business strategy. The ROI of culture is multifaceted, encompassing improved employee morale, higher productivity, and, ultimately, increased profitability. This investment yields a more engaged workforce, innovative solutions, and a competitive edge that far surpasses the returns of traditional advertising spends. The evidence is clear: investing in culture delivers significant returns. By focusing on core values, strategy alignment, and recognition amongst other things, companies can achieve a level of performance that not only meets but exceeds expectations. For CEOs and leaders, the message is unequivocal: prioritize culture as you would your most critical business investments, and the rewards will be both profound and lasting. In my experience, the companies that have thrived are those that have placed culture at the center/top of their strategy, proving time and again that the ROI of culture is not just a promise—it's a reality.