The Coaching Effect Blog

The Staggering Cost of Bad Management

Posted by Bill Eckstrom

December 5, 2018

20170830-D55B4991At work we have bosses. They are also called managers, directors, executives, regionals, assistant VPs, VPs, and many more titles; however, whenever someone outside of work is hired to help us develop we refer to them as a “coach”. Why is it in athletics they are ALWAYS referred to as a coach?

Experience, research and common sense tell us a “coach” brings differentiated talents and skills, assistance, understanding, more overall development than a “boss” is able to deliver. So, if that is the case why do we even have bosses at work? Wouldn’t we all be better off with coaches?

According to Gallup, over 70% of bosses don’t have the talent to maximize the performance of their team, and when looking specifically at sales bosses, EcSell Institute research shows the bottom 80% of them deliver an average of $4.1M less per team when compared to the top 20% (read the research here).

A good boss who behaves like a high performance coach is worth his or her weight in gold. (Tweet this)

Bad bosses also demotivate. Demotivating bosses deliver an average of $2.1M less/team, and we show approximately one in three bosses deliver no motivation.If we want to break down the $2,100,000 cost each month, week and day it would be: 

  • $175,000 per month
  • $43,750 per week 
  • $5,753 per day 

I’ve said this before, but in sales, without a boss in place, sales people will still sellSo, the economic value a boss brings is the difference in the amount sold with them in the role versus having no boss. 

EcSell data also shows that while most bosses deliver some positive results there are still those that, without knowing it, inhibit sales performance. Said another way, the concept of the demotivating boss means their team would sell more if they had no boss.

My point of the “coach versus boss” is that anyone who has people reporting to them is accountable for making sure their team performs at a higher level. So, if it takes a coach to drive better results, why doesn’t a company put a person with coaching talents and skills in that role to begin with? Or, why don’t organizations educate, develop and measure coaching effectiveness (like EcSell does) for all “bosses”?

We break this down even more in this white paper where we analyze over 100,000 documented coaching interactions in the workplace. Enjoy!  

Demotivating Managers

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