The Profit Leak Blog

SKOR, the trusted culture measurement platform, helping organizations unlock profitability by fostering environments where individuals and teams can thrive, is excited to announce the appointments of Gogi Anand and Dr. Moses Altsech to its Board of Advisors. Both bring a wealth of experience in culture, people science and organizational transformation and will provide valuable strategic guidance as the company continues to grow and innovate. Widely regarded as a visionary leader at the intersection of AI, technology, culture and people science, Gogi’s superpower is uncovering insights from sentiment and usage data and making practical recommendations to business leaders to positively influence business outcomes. His leadership at Microsoft, LinkedIn and Deloitte and his work with C-Suite leaders to streamline processes, enhance productivity, and deliver results, has led to organizational transformation around the world. With over 30 years of experience, and more than twenty academic and professional awards, Moses has helped organizations in more than two dozen industries engage in strategic planning, conduct cutting-edge research in customer satisfaction, brand perception, and employee engagement, enhance staff recruitment and leadership development, manage change, and aggressively explore new opportunities for growth. Both a professor in the Top 10-Ranked Marketing Department of the Wisconsin School of Business at the University of Wisconsin-Madison and consultant, Moses works with clients domestically and abroad. We are thrilled to welcome Gogi and Moses to our advisory board. Gogi’s ability to uncover insights from sentiment data and Moses’ decades of experience in organizational psychology will directly support SKOR’s mission to become the standard measurement for workplace culture, helping organizations unlock profitability through data-driven insights. “I'm thrilled to join SKOR's Board of Advisors and help organizations harness the power of culture and data to drive business success via people success.” said Gogi. “SKOR’s innovative approach to culture measurement aligns perfectly with my passion for transforming workplaces and teams through research and strategic insights,” said Moses. “I am honored to join the Board of Advisors.” Please join us in welcoming Gogi and Moses to SKOR. And stay tuned for more updates on how Gogi and Moses will help shape the future of workplace culture measurement. Follow us on LinkedIn for all the latest news and to join the conversation!

Running a company is not a marathon. It's not even a sprint. It's more like a Spartan Race and if you don't know what that is, it's an intense obstacle course races ranging from 3 miles plus plus. Let me explain... When you're building a company, you can't just put your head down and pound the pavement for 26 miles like a marathon. You have to navigate unexpected challenges and tests of skill, strength, and endurance around every turn. One minute, you're scrambling up a rope or climbing over a giant wall. The next, you're crawling under barbed wire through mud or throwing a spear at a target. At every obstacle, you have to tap into your power, agility, mental toughness and heart to make it through. Just like in a Spartan race, you never know what you'll encounter next as a leader. How do you handle this? Competitors, changing market conditions, cash flow issues, hiring challenges, product issues. There's always another wall to scale or pit of fire to jump through. But that's where the glory lies - in the overcoming . In finding creative solutions, unearthing new reserves of determination and partnering with your team to help each other make it across the finish line. The terrain may be treacherous at times, but the reward of victory is sweet. How do you help your team with the training muscles to overcome such obstacles? So keep your focus . Commit to disciplined training, just as Spartan warriors once did. Build your endurance, skill and grit through practice. Support those running the course alongside you. And no matter how grueling it gets, keep your eyes fixed on the peaks you're headed towards, not the obstacles you're facing. Stay nimble and keep innovating. Be ready to get scraped up and dirty along the way - it's part of the ride. And dig deep for that next burst of energy when you need it most. If you adopt the heart, mindset and agility of a Spartan racer, you can overcome any challenge on your path. The obstacles along the way will only make you and your team stronger and more prepared for future tests of will and skill. Keep charging ahead. What kind of race are you running with your company? What kind of company are you building? How do you empower your team and prepare them for the unexpected obstacles?

In a recent commencement speech that resonated deeply with me, Gary Vee , shared some compelling messages on the value of adversity and the joy found in losing. His message, aimed at the next generation of leaders (but really all humans in the world), is a powerful reminder that success is often paved with failures and rejections. Gary Vee's speech is a call for CEOs and leaders to embrace the "No's," the rejections, and the losses. He explains that these experiences are not setbacks but opportunities for growth. "Losing is fun," he declares, challenging the conventional wisdom that success is the only desirable outcome. As we know but often forget, the lessons learned from failures are invaluable and far outweigh the fleeting pleasure of winning. For leaders, this perspective is transformative. Embracing adversity requires a shift in mindset from viewing failures as defeats to seeing them as critical learning experiences. This approach encourages resilience and a relentless pursuit of improvement. When leaders face rejection, they have the chance to analyze what went wrong, adjust their strategies, and come back stronger. Each "No" becomes a steppingstone to a more refined and effective approach. Gary Vee's philosophy aligns with the core principles of effective leadership. Great leaders understand that their journey is not a straight path to success, but a winding road filled with obstacles. They know that every rejection and failure is a test of their resolve and a chance to demonstrate their commitment to their vision. By leaning into these challenges, leaders build the resilience necessary to weather any storm. Moreover, this approach fosters a culture of continuous improvement within organizations. When leaders openly embrace failures, they set a powerful example for their teams. It creates an environment where employees feel safe to take risks, innovate, and learn from their mistakes. This culture of learning and growth is essential for long-term success and adaptability in an ever-changing business landscape. Winning, as Gary Vee points out, is often quick and gratifying but rarely provides the depth of insight that failure does. Success can sometimes breed complacency, while failure ignites a drive for growth. Leaders who understand this dynamic can harness the power of adversity to fuel their growth and the growth of their organizations. In conclusion, Gary Vee's recent commencement speech is a powerful reminder that losing is not the end but a beginning. Leaders who embrace the "No's," rejections, and losses with enthusiasm are the ones who ultimately succeed. They learn, adapt, and emerge stronger. As he eloquently puts it, "Losing is fun," because it is in the depths of adversity that the seeds of greatness are sown.

A Four-Part Blog Series for CEOs and Leadership Teams Most companies rely on employee engagement surveys to measure culture. But let’s be honest — they’re a blunt instrument. They tell you how employees feel today, but they don’t tell you whether your culture is driving long-term success. And often, leaders don’t have the time to really review them, let alone action the findings. Consider Google’s Project Aristotle. When Google set out to understand what made their teams successful, they discovered that psychological safety was the number one factor. Employees needed to feel safe to take risks and speak their minds. Traditional engagement surveys don’t measure this. They don’t tell you if employees feel safe to innovate, if leaders are fostering growth, or if teams are aligned on purpose. Culture is more than engagement. It’s about: 1. Cohesion — Shared purpose and values. 2. Clarity — Goals, metrics, and accountability. 3. Courage — Psychological safety and continuous improvement. These are the metrics leaders should be tracking. In next week’s article, we’ll dig deeper into what leaders should be measuring to get a true Culture SKOR. 👉 Challenge for the week: Ask your leadership team what metrics they use to track culture. If they don’t know, it’s time to fix that. REMINDER: Don’t Miss Out On Our Exclusive Webinar! Join us on January 16th for an insightful session with Eddie Geller , CEO of SKOR , and Una Japundza , CRO of HeyTaco . Together, they’ll explore three key drivers to help you earn your employees’ presence and productivity in 2025. This is your chance to gain actionable strategies for creating a thriving workplace! Reserve your spot now !

Speaking to various managers out there about what they are doing to drive high performance with their teams, is not surprisingly mixed. Often the simple question is answered and then augmented with a range of complaints. “If they only knew how much I worked when I was in their shoes.”, “They don’t know how easy they have it. And my personal favorite, “They should be grateful they have a job.” As a manager, you have a fundamental role to play in motivating your team. While competitive salaries and benefits are important, day-to-day recognition is by far the single most impactful thing a manager can do to drive inspiring engagement and performance. When employees feel genuinely acknowledged, their satisfaction and productivity increases. Recognition demonstrates to employees that their effort and contributions matter. But beyond the obligatory, thank you, if the manager would share a story of how the way their employee has had an impact on the team and the company and how valued the manager is for their contributions, you’ll likely get the employee to goose bump territory. Make them feel connected to their work, and the company’s mission/goals – there is the opportunity. Meanwhile, failing to acknowledge achievements and milestones leaves employees feeling invisible, like their work doesn’t matter. This gradually erodes engagement as people don’t feel inspired to invest time and energy. Lack of recognition is in the top 3 reasons employees become dissatisfied and leave jobs. Recognition should be frequent and specific, highlighting what the employee did well. Generic praise like “good job” doesn’t have the same effect. Sincere, personalized acknowledgement resonates more. Peer recognition can also amplify the impact by creating a culture where teammates regularly validate each other’s contributions. Public acknowledgement in team meetings or company newsletters boosts impact by making employees feel proud. However, every employee has different preferences, so it’s important to utilize a range of recognition styles. In some companies, a peer-based recognition program can see work. Giving people, “taco’s” as a means to recognize, and then in turn the employee can redeem these taco’s for gifts, etc… Cultivating a recognition-rich environment starts from the top. Leadership sets the tone. Managers should model acknowledging contributions from their own boss and peers. This demonstrates recognition’s importance and gives employees permission to do the same. While implementing formal reward programs has its place, impromptu acknowledgement during daily work makes the biggest difference in making employees feel their efforts are valued. Purposeful recognition significantly enhances job satisfaction, loyalty and performance. Make recognition a consistent priority, and you’ll motivate a thriving team. So go do the simple stuff. Recognize and acknowledge your people, their work and how their work has an impact on the team and company performance. You’ll be amazed just how far people will go when they see this woven into the culture.

Over the past week, I’ve had several discussions with CEOs struggling to adapt to remote and hybrid work models. Many feel that if employees aren’t in the office 9-5 under watchful eyes, productivity will slide. I wonder if the CEOs that want people in the office are the ones that suffer the insecurities that if they worked from home, they wouldn't work much. And if they wouldn't work well remotely, they fear others won't either. As someone who once held similar beliefs (all pre covid), I can appreciate this mindset. However, we must challenge assumptions about how, when, and where work gets done. While this attitude is understandable, it severely underestimates the capabilities of employees and stems from a lack of trust. Now is the best time ever to measure on outcomes, metrics and results, rather than effort. Software and systems are the best they are ever been to engage, collaborate and drive results all remotely. And I don't buy the BS that CEOs want their employees in the office to deliver the goals and as they wouldn't at home. And if they do deliver them in the office, the CEOs would expect them to do even more. Huh? If your employees are NOT self motivated already, get different employees. Working in an office or at home. Trust between leadership and employees underpins engagement, innovation, and performance. Rather than dictate rigid in-office schedules, CEOs would better inspire high achievement by clearly conveying expectations, providing autonomy balanced with accountability, clear goal setting and championing work-life balance. Delineate responsibilities and objectives, supply the tools and resources to excel, then give people the space to determine their optimal working rhythms. Not everyone peaks from 9-5. Establish check-ins based on deliverables, not office face time. Judge performance on outcomes achieved, not minutes focused on a computer screen. Additionally, showcase trust and care for employees as humans with lives, families, and interests beyond office walls. Flexibility and empathy around personal needs cultivate loyalty, fuel creativity, and unlock discretionary effort. When people feel respected and cared for, they extend more passion and dedication to their roles. Engage distributed employees through unifying vision, rituals, and culture. Regular virtual meetings, digital watercooler channels, all-hands video calls, and offline team building (if it can be arranged and paid for) maintain bonds. Transparency around company goals and vision aligns everyone. Emphasizing shared values and purpose, not physical proximity, rallies people to pull together. The workplace has irrevocably changed. Clinging to antiquated notions about supervision and productivity will only widen the disconnect between executives hungry to regain control and talent demanding trust and flexibility. The CEOs better positioned for success will reinvent what it means to manage, engage, and inspire distributed workers in a digital age. The potential rewards for their companies are immense.

After decades of proven ROI, CEOs still aren't getting it!!! So here's some more proof that this stuff actually works! We all know that a company's values (ideally only 3 - and none of the standard ones like "integrity", etc... ) serve as the foundation for its culture. But simply defining values is not enough - organizations must actively weave them into day-to-day operations to drive results. It's concluded (again and again), values-driven leadership boosts performance. I get that this stuff is hard, but the returns are huge. A 2022 McKinsey survey of 1,000 companies found that those ranking in the top quartile for adherence to their stated values achieved on average 25% higher workforce productivity than those in the bottom quartile. They also experienced 20% higher customer satisfaction scores and 30% higher profit margins over a 5 year period. This data shows that walking the talk on values directly impacts the bottom line for small and mid-sized businesses. That is HUGE. Case closed!!! But here's some more data in case... Another study by HR advisory firm Energage in 2021 looked specifically at organizations with 100-500 employees. They found a strong correlation between values alignment and growth - companies that exceeded industry benchmarks for values integration grew revenue nearly 2x as fast as those lagging behind over a 3 year period. Values-driven firms also averaged 18% higher employee retention rates. The key is integrating values into day-to-day operations, not just posting them on the wall. As leadership expert Patrick Lencioni writes, “Values can set a company apart in a positive way if - and only if - they are lived.” One classic mistake many leaders make is that they don't detail the behaviors expected when it comes to a value. If we say "Be accountable" as an example, asking 3 people will provide 3 definitions - so what happens? Everyone gets confused. Hop tip: Detail each headline value and their expected behaviors so there is no doubt on expectations. To weave values into the fabric of your culture: Align values to every existing team member and ensure/support their behaviors to endeavor to live them every day. Assess all hiring decisions based on the values. Culture first, skills and experience second. Incorporate values criteria into performance reviews and promotion decisions. Recognize those modeling the values. Address behaviors inconsistent with core values through coaching or discipline if needed. Values only stick if bad behavior have consequences. Celebrate and share stories of employees demonstrating the values. Make it part of the company narrative. Keep values front and center in internal communications and training. Continual reinforcement is key. With intentional, consistent effort, your company's values can shape an empowered and high-performance culture. Employees will be intrinsically motivated to uphold standards that allows the organization to achieve its mission but also be very motivating for themselves. The research shows this pays dividend across the board - when values truly come to life for your team, the sky is the limit. Go on... There are no excuses now...

The buzz around Artificial Intelligence (AI) is inescapable, and its potential to revolutionize our world is undeniable. Like many, you might think, "AI sounds great, but I'm swamped with other priorities." It's a common sentiment, but one that could mean missing out on transformative opportunities. Indeed, many software companies are weaving AI into their products, allowing users to experience its benefits indirectly. However, if you're a CEO or a key decision-maker not leveraging AI internally, you're overlooking a significant competitive edge. My journey with AI tools like ChatGPT, Claude, and various others began about 9 months ago. Given the rapid advancements in this field, I've quickly become deeply immersed, in understanding their capabilities. Just last Friday, I attended my second AI workshop for CEOs, and once again, I was astounded. My first eye-opening experience was at a similar event in July 2023. The pace at which AI is being adopted and integrated into software platforms is staggering. Even the most forward-thinking software companies are struggling to keep up with these advancements. I understand that fully diving into AI might seem daunting amidst your busy schedules. However, there are three straightforward, essential steps you can take today that will yield immediate benefits: Cultivate AI Literacy : Start by educating yourself and your team about AI. Understanding its potential and limitations is crucial for strategic implementation. Consider organizing workshops or inviting AI ambassadors (too early to call many an expert here) to share insights. This foundational knowledge will empower your team to make informed decisions about AI and its usage. Pinpoint High-Impact Opportunities : AI doesn't fit a one-size-fits-all model. Identify areas in your business where AI can make a significant impact, such as enhancing human resources, employee self-service, marketing, communications, customer service, or improving data analysis. Begin with small-scale pilot projects to test and learn from these initiatives. Encourage a Culture of Innovation : Adopting AI is as much about technology as it is about mindset. Promote a culture where innovation is celebrated, and learning from failures is encouraged. This environment is vital for a smooth transition to AI, fostering adaptability and a forward-thinking approach. Incorporating AI into your business strategy isn't just a futuristic concept; it's a present-day necessity. By focusing on these three key areas, you can start your journey towards leveraging AI's full potential, leading your company to new heights of efficiency and innovation. Remember, the path to AI mastery begins with small, decisive steps, and these actions are your gateway to an empowered future. I love this stuff, so if you're up for a chat about all thing AI, drop me a line here .

March Madness, Workplace Magic: A 4-part series (Article 4 of 4) A tied game. Ten seconds left. The crowd is on its feet. The ball swings to a player standing behind the arc. They hesitate—just for a second. The defense closes in. The shot never goes up. Hesitation kills momentum. It costs teams championships and as they say in business “time kills all deals”. The best players—and the best teams—don’t freeze when the pressure is on. They trust their preparation, take the shot, and live with the outcome. In business, hesitation costs just as much. A leader avoids a tough decision, a team delays a bold move, and suddenly, the competition pulls ahead. The best teams—on the court and in the office—win because they have courage. Courage: The X-Factor in Business Success Every leader wants innovation, bold thinking, and smart risk-taking. But too often, companies create cultures that punish mistakes rather than reward initiative. Without courage, teams and the players on them: Play it safe: They avoid risk, which means they avoid opportunity. Fear failure: They don’t take the shot unless they know it will go in. Move too slowly: Decisions get caught in endless loops of approval and second-guessing. Meanwhile, high-performing teams trust their instincts, act decisively, and embrace the unknown.  They don’t succeed every time—but they know that not taking the shot is the surest way to lose. How Do You Measure—and Build—Courage? Most businesses claim they encourage bold thinking. However, few actually measure whether they actually are. Psychological Safety:  Managers who make their team feel safe taking risks and voiding ideas without fear of backlash and empowering their people to do their best work Decision-Making Speed:  The best teams act with confidence, making informed decisions quickly rather than getting stuck in approval loops. Calculated Risk-Taking:  Bold organizations empower employees to propose and execute innovative ideas and reward them accordingly Courage isn’t about reckless decision-making. It’s about creating an environment where teams feel empowered to make bold, smart moves —even if there’s a chance they’ll fail. Winning Play: Make Courage a Habit Just like elite athletes train for high-pressure moments, organizations must build courage into their culture every day. That means: Rewarding initiative, not just success: Celebrate bold ideas, even when they don’t pan out. Make risk-taking a muscle, not a gamble. Encouraging fast, informed decisions: Remove red tape that slows progress and dampens innovation. Making bold action worth it: In sports, winners play for the glory but also the trophy. In business, winning outcomes should have an objective reward all people can play for. The teams that win March Madness don’t just take shots—they take the right shots at the right time. The same goes for business. So ask yourself: Is your team playing to win—or just trying not to lose? Bold moves and smart risks set winning teams apart. But how do you know if your organization truly embraces courage? Winning teams don’t hesitate—they trust their instincts and take decisive action. Discover where your team stands. Check your SKOR   now.

April isn’t just tax season for the IRS (U.S. Tax Authority)—it’s also a wake-up call for leaders facing a silent but devastating drain on their organizations: the Disengagement Tax. Unlike financial taxes, this one isn’t neatly filed away on April 15th. It compounds daily, eroding productivity, morale, and profits. Gallup research estimates that employee disengagement costs the global economy a staggering $8.8 trillion annually. Can your organization afford to pay it? Every leader expects to pay their fair share in taxes, but what about the tax they don’t see—the one that drains energy, productivity, and profits right under their noses? The Disengagement Tax isn’t a line item on your P&L, but make no mistake: it’s eroding your bottom line every single day. Unchecked disengagement is a financial liability, hitting companies with absenteeism, turnover, and lost innovation. What Is the Disengagement Tax? It’s the cumulative cost of employees who are physically present but mentally checked out. It shows up in missed deadlines, lackluster performance, customer dissatisfaction, and increased turnover. And unlike the IRS, disengagement doesn’t wait until April 15th—it is paid out every day, sapping the strength and balance sheets of teams and organizations alike. The Bad News: The Disengagement Tax is Expensive According to Gallup, disengaged employees cost companies up to 34% of their salary in lost productivity–that’s nearly $23,000 out of $66,622 (the average U.S. salary). Now multiply that across an organization, and the financial hit is staggering. Lost Productivity: Disengaged employees are more likely to call in sick and arrive late, impacting team productivity and momentum. Stalled Innovation: Disengaged employees aren’t motivated to contribute new ideas or solve problems proactively. Turnover: Employees who don’t feel connected to their work leave, costing companies an average of one-third of their salary to replace them. The Good News: You Don’t Have to Pay It! Unlike Federal taxes, the Disengagement Tax isn’t inevitable. Leaders who prioritize engagement can reclaim these lost dollars and unlock untapped potential within their teams. Over the next 4 weeks, we’ll explore how to lower the Disengagement Tax by measuring culture using theSKOR’s 3C’s: Cohesion: A strong, aligned team creates energy, engagement, and collaboration. Clarity: Clear expectations, accountability and goals eliminate confusion and wasted effort. Courage: Leaders who empower employees to take initiative, innovate, and commit fully to doing their best work. If you’re serious about lowering costs and increasing performance, it’s time to audit your workforce performance by using SKOR, starting with the SKOR Preview. The IRS may not care about disengagement, but your business can’t afford to ignore it. Throughout April, we’ll dive into the Disengagement Tax and apply SKOR’s 3C’s of culture measurement to help leaders identify, reduce, and prevent this costly burden. Stay tuned as we break down actionable strategies each week to eliminate this hidden tax through increased Cohesion, Clarity and Courage. (Article 1 of a 5-part series)