The Profit Leak Blog

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.

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.