The Profit Leak Blog

Have you ever felt like you're running at full speed, but not sure exactly where you're headed? Well, you're not alone. A surprising study tells us that only 7% of employees really get their company's big picture. That's right – a whopping 93% might be missing out on understanding their company's main goals. And, guess what? Global CEOs think this gap is the main reason why brilliant plans don’t always turn into brilliant results. A company that grows sustainably is one where everyone knows the game plan. But it's not just about giving orders from the top. It’s about chatting, understanding each other, and knowing why every decision matters. It’s like being part of a band; everyone needs to know the tune to make great music. There’s magic when everyone chips in with their ideas. A sound strategy can only come to life when everyone, from tech wizards to creative geniuses, has a say. The best insights? They usually come from those who are in the thick of things every day. Doing what you say you’ll do? That's gold. It's not about blindly following a plan but delivering consistently, keeping promises, and making sure every step counts. Imagine a relay race – every teammate needs to do their part for the win (and can see the scoreboard) And here’s the fun part – getting fired up! Leaders, this one's for you. Paint a picture of the future that gets everyone excited. When teams are pumped about the goal, they'll leap over hurdles to get there. So, this strategy-to-action gap? We can totally bridge it. By growing together, teaming up, being those reliable rockstars, and staying inspired, we're all set for success. Let's get your teams on the same page and empower their success!

When it comes to evaluating candidates, many hiring managers rely on outdated myths and ineffective practices. To build a strong team, it's crucial to move beyond these misconceptions and adopt a more effective approach to candidate evaluation. Let's explore three common myths and provide best practices, along with insightful questions, to help you select better talent for your team. Myth 1: The Resume Tells the Whole Story Reality:  While a resume provides a snapshot of a candidate's experience and qualifications, it doesn't capture the full picture of their skills, personality, and experience. Resumes can be embellished, and important qualities like cultural fit and soft skills are often not reflected. Best Practice:  Use resumes as a starting point but delve deeper with comprehensive interviews and assessments. Look for evidence of problem-solving abilities, adaptability, and critical thinking. Myth 2: Technical Skills Are the Most Important Factor Reality:  While technical skills are essential, they are not the only factor that determines a candidate's success. Soft skills such as communication, empathy, and leadership are equally important and often overlooked. Best Practice:  Balance your evaluation between technical proficiency and soft skills. Consider using behavioral interviews and situational questions to gauge these qualities. Myth 3: A Bachelor's Degree Is Essential Reality:  While a degree can indicate a certain level of knowledge and commitment, it’s not the only path to acquiring skills and expertise. Many talented individuals have succeeded through alternative education, work experience, or self-learning. Best Practice:  Focus on the candidate’s actual skills, experiences, and achievements rather than just their formal education. Consider applicants who demonstrate proficiency through practical experience, certifications, and a portfolio of work. Three Steps to Selecting Better Talent Step 1: Ask Insightful Questions and Align to Core Values Move beyond common interview questions to uncover deeper insights and assess alignment with your company's core values. Here are three questions to get you started: "What is a misconception people have when they meet you?"  - This question helps reveal self-awareness and how candidates perceive their interactions with others. "Can you tell me about a time you faced a significant challenge at work and how you overcame it?"  - This question assesses problem-solving skills and resilience. "Who was your favorite boss/manager, and why?"  - This question provides insight into how the candidate likes to be managed. Follow up with: "If they were in the room, what would they say your strengths were? How about your weaknesses?"  - This further explores self-awareness and how the candidate perceives their own performance and areas for improvement. "How do you demonstrate [insert core value] in your work?"  - Tailor this question to each of your company's core values to ensure the candidate's values align with your organization's culture. Step 2: Implement Behavioral and Situational Interviews Behavioral and situational interviews are effective for understanding how candidates have handled past experiences and how they might approach future challenges. Instead of simply asking hypothetical questions, focus on real-life scenarios the candidate has faced. Ask them to describe specific situations, the actions they took, and the outcomes. This approach helps you understand their problem-solving abilities, decision-making process, and how they handle pressure. Step 3: Have the Candidate Do a Presentation on a Brief To evaluate a candidate's ability to communicate, organize their thoughts, and present information clearly, ask them to prepare and deliver a presentation on a brief relevant to the role. This exercise can be tailored to assess various skills, such as strategic thinking, problem-solving, and domain expertise. Providing a brief in advance allows candidates to demonstrate their preparedness and presentation skills. This can be replaced with an assessment or practical task depending on the specific role. Conclusion Evaluating and selecting the right talent requires moving beyond common myths and adopting a more holistic approach. By asking insightful questions, using behavioral interviews, and considering practical assessments where appropriate, you can better understand your candidates' true potential. Remember, the goal is to find individuals who not only have the right skills but also align with your company's culture and core values.

Well, I can’t believe it’s been one year since founding SKOR! The ideas and concepts of what I thought SKOR might be a year ago has certainly evolved. I always had this concept around performance with respect to teams and alignment. I was reflecting a lot about how people inside companies worked in teams, and how teams collaborated with other teams, and in turn supported the companies’ goals/strategy. This focused-on alignment and the “cascade”. I originally thought SKOR may become a platform that supports teams/companies delivering high-performance but then after doing a ton of research, realized that there are dozens of systems that help organizations align on goals and performance. But then after doing further research and speaking to over 75 CEOs, I came to realize that when I was asking questions that related to alignment and performance, the responses always came back to people. And when I asked about priorities with these CEOs, their people would rarely, if ever, come up. It was always something else like sales, marketing, distribution, etc… So, this got me thinking even more. How can these leaders not prioritize their people as the number one priority? Why wouldn’t their ability to achieve greatness be their number one? If their people were their number one priority and they were succeeding, wouldn’t in turn their companies also flourish? When I dug deep into the elements of culture, which is really what connects people within organizations, I realized that so many leaders had it wrong. The challenge, how do I convince leaders to prioritize their people over anything else? I also realized that to change thousands and hopefully one day millions of workplaces, I wouldn’t be able to do it one project at a time. I would need to create a value proposition that persuades and has impact. And the only way to convince anyone to do anything is with data. Plus, if that data was able to measure my company and compare it to others, it would be a huge motivator. So, there it was, SKOR was born. A platform for measuring culture where all organizations get a Culture SKOR (out of 100) and within that platform they could see how they compared to their industry, and whether or not they are a leader or a lagger. On top of this, you then realize that there is no universal definition for culture and if you ask anyone about their corporate culture, you’re likely hearing things like, “oh it’s awesome”, or “Our holiday parties are fantastic”, or “our people have unlimited time off”, etc… And not only is there no standard, but there is also no universal measure for it. And no, eNPS or employee engagement surveys are not a measure of culture. Based on my 25 year's experience in building teams and driving successful cultures and outcomes, culture can be broken down into 3 ingredients. COHESION - People are connected with the organization's mission, vision, and core values, sharing common beliefs in their approach to work. CLARITY - People understand the organization's strategy and goals, align as a team, and focus their energies on achieving them. COURAGE - People aren't afraid to fail and are inspired by the organization’s leaders to do their best, with rewards given accordingly + objectively. We won Best Place to Work at Unique World (my first company) and Tinybeans (my second company), not because we were trying to win, but because we created the environment where people could do their best work through these 3 ingredients. Fast forward to today, we’ve had more than 200 leaders take our Culture SKOR Snapshot assessment and recently built out a small team  to take the company forward. We’re also hiring more in the coming months. Plus, companies (and their people leaders) committed to our Culture SKOR Subscription product , where they will get their verified SKOR, benchmarked and ability to invest in improving it. We’ve also signed up partners who believe we need an independent measure for culture that can provide benchmarks too. I’m beyond excited about our future.  Our vision is for SKOR to become the standard for culture measurement, where organizations from all over the world measure their culture using SKOR, and through that lens create an opportunity to be benchmarked against other companies in their industry. And not only determine where they are against the benchmark, but then commit to the roadmap of projects internally to then elevate their people through the culture and in turn their financial results. A huge thanks goes out to all my amazing close friends that I’ve annoyed and challenged in this area, who not only were candid and curious, but did whatever they could to support my vision. Special thanks go to my YPO mates inside NY Liberty, they have been incredible.  I am so excited about the future and if the last 12 months were anything to go by, the next will be so much more. I can’t wait for people to be using SKOR as their barometer for culture to determine whether they want to work at a company, want to do business with a company or invest in them. What is your Culture SKOR ?

Accountability is a cornerstone of high-performing organizations. Many CEOs and leaders yearn for it, often turning to structured systems like EOS (Entrepreneurial Operating System) to instill this vital trait. However, while such systems can effectively cultivate accountability within the leadership team, they frequently fall short of permeating the entire organization. For true accountability to flourish, it must be woven into the very fabric of your company’s values and nurtured from the bottom up. The Limits of Top-Down Accountability Implementing systems like EOS can indeed set the stage for a culture of accountability. These frameworks provide clear structures, responsibilities, and metrics for the leadership team. However, the challenge arises when these principles fail to cascade effectively throughout the organization. The leadership team may be aligned and accountable, but without extending this culture to all levels, the broader organization can remain disengaged and misaligned. The Great Game of Business: A Bottom-Up Approach The Great Game of Business (GGOB) methodology offers a compelling blueprint for creating a culture of accountability that spans the entire organization. This approach not only teaches employees how businesses operate but also instills a sense of ownership and responsibility across all levels. Here’s how GGOB can transform your culture: Financial Literacy for All : GGOB educates every employee on the financial workings of the business. By demystifying financial metrics, employees understand how their actions impact the company’s success. Company-Wide Metrics : Each employee is given a specific metric that aligns with the company’s overall goals. These individual metrics create a direct line of sight from personal performance to company performance. Shared Rewards : GGOB answers the “What’s in it for me?” question by tying rewards to company performance. When the company wins, everyone wins, fostering a collective drive towards shared goals. We implemented GGOB at my first company, Unique World with tremendous results. 50% increase in Net profit after 2 years. Then sold the company! Embedding Accountability into Values For a culture of accountability to thrive, it must be deeply embedded in the company’s values. Here are actionable steps to ensure this: Define Clear Values : Ensure your values explicitly promote accountability. Values like transparency, ownership, and integrity should be highlighted and celebrated. Communicate Consistently : Regularly communicate the importance of accountability through various channels—meetings, newsletters, and one-on-one interactions. Make it a topic of ongoing dialogue. Lead by Example : Leaders must model the behavior they wish to see. Demonstrate accountability in your actions and decisions to inspire your team to follow suit. Empower Employees : Encourage employees to take ownership of their roles. Provide the necessary resources and support to enable them to meet their responsibilities effectively. Recognize and Reward : Celebrate individuals and teams who exemplify accountability. Recognition and rewards reinforce the desired behavior and motivate others to strive for the same standard. Conclusion Creating a culture of accountability is not an overnight task, nor is it achieved solely through top-down directives. It requires a concerted effort to embed accountability into the company’s values and cultivate it from the bottom up. By leveraging methodologies like The Great Game of Business and ensuring that every employee has a stake in the company’s success, leaders can foster a truly accountable culture where people are motivated to excel not because they have to, but because they want to. This bottom-up approach not only enhances performance but also drives engagement and ownership across the organization, setting the stage for sustained success. Want to learn more through an experience share, reach out to us to arrange a call.

Zappos is celebrated not only for its legendary customer service but for how it built an extraordinary culture that fueled its success. Tony Hsieh, the visionary CEO, placed culture at the core of Zappos’ strategy, making it a differentiator in a competitive e-commerce landscape. The company’s ethos of delivering happiness resonated internally and externally, creating a loyal customer base and a high-performing team. Hsieh’s approach to culture was innovative. As an example, Zappos was known for offering $2,000 to new employees to quit during training, ensuring only those committed to the company’s values stayed. This practice exemplified how deeply they valued cultural alignment over short-term costs. The results spoke for themselves: strong employee engagement, unparalleled customer loyalty, and profitability. However, Hsieh’s famous quote— “Just because you can't measure the ROI of something doesn't mean you shouldn't do it. What's the ROI of hugging your mom?” —raises an important debate. While his analogy underscores the intangible value of certain human experiences, it presents a fallacy when applied to organizational culture today. In Hsieh’s time, culture often felt abstract and immeasurable. Today, this no longer holds true. Modern tools, like SKOR , now enable organizations to objectively measure the ROI of culture. By assessing critical areas such as leadership effectiveness, communication, and recognition, we can identify actionable insights that drive performance. Ignoring the measurement of culture is no longer a matter of philosophy—it’s a missed opportunity. Zappos’ cultural legacy remains a benchmark for high-performing organizations. However, the future of culture lies in pairing Hsieh’s visionary ethos with the power of modern measurement. By making culture tangible, leaders can not only embrace its value but strategically leverage it to achieve extraordinary outcomes. The tools are here—it's time to use them.

A Four-Part Blog Series for CEOs and Leadership Teams Peter Drucker said it best: “What gets measured, gets managed.” Yet, when it comes to culture, most leaders rely on gut feelings and anecdotes rather than hard data. Leaders track revenue, customer churn, and productivity. But ask them for their culture score, and you’ll get blank stares. Here’s the uncomfortable truth: If culture isn’t on the scorecard and being tracked/measured regularly, it’s not a priority. Consider Microsoft under Satya Nadella. When Nadella became CEO, he didn’t just talk about changing the culture — he measured it. Microsoft tracks collaboration, innovation, and leadership effectiveness across the organization, making culture metrics as important as financial KPIs. In contrast, most companies barely measure engagement, let alone deeper culture dynamics like purpose alignment or leadership trust. Engagement surveys are a good start, but they’re the bare minimum and many companies won’t take time to review and even more often, don’t take action as a result of the feedback given.. What message does this send to employees? That culture is all talk. Want to know if your culture initiatives are working? Start by asking your leadership team: What’s our Culture SKOR? In next week’s article, we’ll explore why traditional engagement surveys fall short and what leaders should measure instead. 👉 Challenge for the week: Add “Culture” as a standing agenda item on your leadership meetings.

March Madness, Workplace Magic: A 4-part series (Article 3 of 4) Ever watched a team crumble under pressure? The talent is there, the effort is undeniable—but without a clear strategy, the players fall apart when it matters most. This happens in March Madness every year. The teams that make deep tournament runs don’t just rely on star players or raw hustle. They have clarity across all levels and all facets of what they do—a well-defined game plan where everyone knows their role, the mission is crystal clear, and execution is second nature. The same holds true in business. If your team is struggling, ask yourself: Are they lacking skill and/or effort—or just direction and a game plan? Clarity: The Game Changer in Business A lack of clarity isn’t just frustrating—it’s expensive. Misaligned teams lead to reduced productivity due to: Wasted time: Employees guessing instead of executing. Missed opportunities: Confusion slows decision-making. Lower engagement: Unclear expectations lead to frustration and burnout. Championship teams in sports and in business don’t tolerate confusion. They define their goals, communicate them relentlessly, and ensure every player—every employee—understands their role. Clarity makes it easier for everyone to just get to work winning. How Do You Measure—and Reinforce—Clarity? If you can’t measure it, you can’t improve it. Here’s how elite leaders and coaches ensure clarity isn’t just assumed—it’s tracked and reinforced. Strategic Alignment: Do employees see how their work connects to the company’s goals? Tracking alignment helps identify whether teams are working with purpose or just going through the motions. Communication Flow: Are expectations being communicated clearly or is important information getting lost? Assessing and identifying communication gaps ensures that teams aren’t making decisions in the dark. Decision-Making Efficiency: Are projects moving forward with confidence or are delays caused by uncertainty? Evaluating how quickly and effectively teams make decisions reveals where clarity needs to be reinforced. Pinpoints where clarity is lacking and how to fix it. When leaders measure the right inputs—not just engagement scores—they gain real insight into whether their team has the clarity to execute. Once you measure clarity, build habits that reinforce it. Winning Play: Make Clarity a Non-Negotiable The best coaches don’t just set a strategy—they over-communicate it until it becomes instinct. In business, that means: Setting crystal-clear goals: Every team member should know what winning looks like and how their goals and roles contribute to victory. Reinforcing expectations daily: Alignment isn’t a one-time meeting; it’s a continuous process involving weekly 1:1’s with managers, department meetings and company-wide Town Halls. Ensuring transparency across strategy and decision-making: When employees understand how their performance impacts metrics on the scorecard, they execute with confidence. Are You Coaching Clarity—or Just Hoping for It? A leader’s job isn’t just to set the vision—it’s to ensure everyone understands it. The teams that win March Madness don’t leave strategy up to chance. The same applies to high-performing businesses. If your team is unclear on what success looks like, you’re setting them up to fail. This March, take a timeout. Are you driving clarity in your organization, or just assuming everyone gets it?

March Madness, Workplace Magic: A 4-part series (Article 2 of 4) No team wins a championship on the back of one star player. Not Michael Jordan. Not Stephen Curry. Not even Caitlin Clark. The best teams—on the court and in the workplace—win because they play together. March Madness proves it year after year. The teams that pull the upsets and make it to Final Four weekend aren’t just talented; they’re cohesive.  They trust each other. They communicate seamlessly. They know when to take the shot and when to pass the ball. If you’re a CEO leading a fast-moving organization, ask yourself: Is your team playing as one—or are they just a group of individuals on the same payroll? Cohesion: The Secret to Scalable Success A well-oiled team isn’t just a feel-good concept—it’s a business imperative. Research shows that highly collaborative teams: Deliver projects faster : Streamlined teamwork with clear processes and goals prevents bottlenecks and inefficiencies. Innovate more effectively : Trust breeds creative risk-taking and smarter problem-solving. Retain top talent : People stay where they feel valued and connected. The best leaders—whether in sports or business—don’t just expect cohesion, they build it  deliberately. How Do You Measure—and Build—Cohesion? You can’t improve what you don’t measure. So, how do you track something as intangible as team cohesion? Most companies rely on Employee Net Promoter Scores (eNPS), engagement surveys, and collaboration metrics to gauge team effectiveness. But here’s the problem— those are measuring the outputs and outcomes rather than finding the root cause. A high eNPS might tell you employees feel good (or bad) about their workplace. Engagement surveys might show enthusiasm after a really great quarter or skepticism after their best work friend got let go. Cross-team collaboration metrics might highlight project success or a communication breakdown between sales and marketing. But none of these actually measure cohesion. Cohesion isn’t about how happy or engaged your employees seem—it’s about how well they work together under pressure, how seamlessly they communicate, and how instinctively they trust one another. Forget engagement scores—measure what truly drives cohesion: shared mission, aligned values, and seamless teamwork. Here’s how winning teams do it: Alignment:  Ensure that everyone embodies the core values and uses them to guide their work, especially when facing challenging situations that require resolution. Trust:  All players move as one toward the company’s mission, putting aside personal agendas to achieve collective goals. Communication:  Winning teams maintain clear and timely conversations, ensuring that the right information is shared and nothing gets lost. Accountability:  Everyone takes ownership of their tasks and responsibilities, working collaboratively rather than in silos. Once you have the framework, the next step is reinforcing cohesion daily —just like a championship team drills fundamentals at every practice. Values-based recognition: Go beyond “great work” and recognize specific behaviors and achievements that demonstrate core values Daily huddles: A quick 10-minute sync keeps everyone aligned and in rhythm while creating space for honest feedback and alignment across teams Post-project debriefs: Celebrate collective wins and acknowledge challenges without blaming, use the outcome to refine future actions and strategies together. If cohesion isn’t an intentional part of your leadership playbook, don’t be surprised if your team struggles in high-pressure moments. The best teams—on and off the court— train for trust, build habits around teamwork, and measure what matters. This March, take a timeout. Assess your workplace cohesion. The best leaders don’t just expect teamwork—they create it. But even the most cohesive team can’t win without  clarity.  Next week, we’ll break down how to eliminate confusion and ensure everyone knows the game plan.

This past weekend I listened to the latest podcast by Adam Grant where he spoke with Bob Sutton on his new book, The Friction Project. No surprises, it was awesome. A lot stood out to me, but one key nugget was the sign of a great leader are about the questions they pose and not their statements. I used to think that of just the chairman of a board of directors, but no its for everyone. (NOTE: Every human in the world is a leader. The definition of a leader is one who inspires others to follow. It has nothing to do with your role title.) We often think great leadership means having all the answers. The opposite is true. The best leaders are ones that ask the questions - not the answers they offer. Telling stifles creativity. Asking unleashes it. When leaders are curious and ask open-ended questions, they encourage fresh thinking and new ideas. People feel safe to brainstorm solutions versus just following orders. So spend less time advocating for your existing views. And spend more time asking "How might we...?" or "What if we tried...?" Encourage thinking through inquiry. Asking questions builds buy-in. When leaders dig into team members' perspectives through inquiry, everyone feels heard. This builds alignment around organizational goals and strategies. Ask your people "What do you think about this approach?" "What else could there be" "Why wouldn't this work?" Telling people what to do keeps them dependent on you. Asking people probing questions causes them to stretch and grow. When leaders inquire, they mentor. Ask team members about current challenges and how they are tackling them. Dig into their thinking on decisions. This builds critical thinking skills. So shift your ratio of questions to statements. Turn brainstorming sessions into questionstorming. Uncover ideas and talent through inquiry. Empower people through curiosity. The days of directive, answer-driven leadership are waning. The future belongs to the curious leaders - those who extract excellence from people through the power of great questions. How to Implement a Question-First Leadership Style Embrace Curiosity:  Encourage yourself and your team to embrace a growth mindset. See every challenge as an opportunity to learn and grow. Practice Active Listening:  Asking questions is only effective if leaders are genuinely interested in the answers. Active listening demonstrates respect and openness to new ideas. Encourage Questionstorming Sessions:  Allocate time for sessions dedicated to generating questions around challenges or projects. This will encourage a deeper understanding and exploration of potential solutions. What questions will you ask today?

In the heart of every football game lies the huddle—a moment of strategy, unity, and focus. It's not just a pause in the action; it's a critical connection of people to align on the next play, adjust strategies based on the current scoreboard, and move forward with a set of actions. This powerful ritual in football offers a profound lesson for companies striving towards high performance and engagement: the indispensable value of regular team huddles. NY Jets Huddle (my 13-year-old loves the Jets) Imagine if a football team never huddled. Players might have a general sense of the game plan, but without communication, the chances of misunderstanding the play, not knowing what your teammates are doing and missing opportunities increase exponentially. The same holds true for companies. Many teams operate without regular "huddles," leaving employees unclear about their goals, how their work impacts the overall company performance, or what adjustments need to be made to ensure success. In business, just as in football, the scoreboard is crucial. It's not just about tracking performance but understanding where we stand in relation to our goals. Yet, shockingly, many companies keep their scoreboards hidden (or only shared with a select few), leaving team members guessing about their progress and unsure of their contributions towards the team's objectives. A company's "huddle" should be an essential part of its rhythm—be it daily or weekly—where teams come together to review key metrics and performance indicators. This is the time to celebrate wins, address challenges, and adjust strategies to ensure the team is moving in the right direction. It's about creating transparency, fostering a growth mindset, and encouraging collaboration. In these huddles, every member should have clarity on the numbers they influence. Sharing metrics democratizes success and accountability, making it clear what each person can do to contribute to the team's victory. It's about moving beyond siloed efforts to a cohesive strategy where everyone understands their role and how it fits into the larger game plan. Transforming your company culture to include regular huddles can have a profound impact. It aligns teams, boosts morale, and significantly improves performance. The key is not just to gather but to communicate effectively, setting clear goals, and fostering an environment where every team member feels empowered to contribute to the company's success. Just as a football team huddles to plan their next play towards victory, companies should adopt this practice to align efforts, strategize, and propel their teams towards achieving their goals. It's a simple yet transformative approach that can shift the dynamics of team performance and engagement, leading to unprecedented levels of success. Let's take a page from the NFL playbook and bring the power of the huddle into our companies. It's time to align and execute as one team, with one vision. The question isn't just "What's the next play?" but how we can work together to make sure it's a winning one.