Drive Revenue & Reduce Risk with OD & Talent Optimization
Two things coveted by business owners that organizational development can provide.
I had the pleasure of meeting a fellow I-O Psychology practitioner this week. As we discussed careers in I-O, organizational development (OD), change leadership, training, operations, and HR, he challenged me with a question, “What do all business owners need, and how can we help them?”
I found myself rifling through my MBA studies, research in work psychology, and the business coaching I’ve received to find an answer, which seemed complicated. Business owners seem to have many needs. However, my colleague distilled this down to two; every business owner needs:
- Increased Revenue
- Decreased Risk
Honestly, this is not the first time in the recent past my mentors and peers have shared this. As simple as this sounds, it rings true. These stand as two fundamental business objectives.
Here’s how organizational development (OD) and talent optimization can help businesses achieve both:
Increase Revenue:
- Improved Employee Performance: OD and talent optimization practices like training, development programs, and performance management can equip employees with the skills and knowledge they need to gain self-efficacy. This translates to improved performance, better quality work, faster and more efficient completion times, and the ability to take on more projects or clients, leading to increased revenue.
- Enhanced Innovation: By fostering a culture of learning and development, OD encourages employees to think creatively and generate new ideas (Kraus & Ferrell, 2016). This can lead to the development of innovative products, services, or processes that can give the business a competitive edge and generate new revenue streams. Forbes quoted Peter Drucker, a profound influence on the business consulting industry, saying, “Marketing and innovation produce results; all the rest are costs.”
- Stronger Customer Focus: OD programs can help align employee behavior and goals with the overall business strategy, including a strong focus on customer satisfaction. This can lead to improved customer service, higher retention rates, and potentially attracting new customers through reputation and referrals, contributing to revenue growth.
Decrease Risk:
- Reduced Turnover: Investing in talent optimization through training, career development opportunities, and creating a positive work environment can significantly reduce employee turnover. Some experts agree that the total cost to hire a new employee can be three to four times a person’s salary (Navarra, 2022). OD and TO not only save the business the cost of recruitment and onboarding new staff but also ensure continuity of knowledge and expertise within the organization, minimizing disruptions and potential project delays.
- Improved Decision-Making: OD processes can help create a culture of open communication and collaboration. This allows employees to share information and perspectives, leading to better-informed decisions and fewer costly mistakes.
- Enhanced Compliance: Organizations that invest in OD programs can ensure employees have an awareness of and compliance with relevant regulations and policies. This helps mitigate legal and financial risks associated with non-compliance (Stetz & Chmielewski, 2015)
Businesses can create a more skilled, engaged, and efficient workforce by investing in organizational development and talent optimization. This, in turn, leads to increased revenue, improved customer satisfaction, and a reduction in operational risks, all contributing to a stronger and more sustainable business.
Develop and optimize your workforce for a more Harmonious Workplace.
Get Assistance
If you need help with organizational development and talent optimization, contact the I-O Psychology, OD, and strategic HRM professionals at WorkBalance Consulting for a free consultation.
Contact WorkBalance Consulting
Originally posted: https://harmoniousworkplaces.com/drive-revenue-reduce-risk-with-od-talent-optimization/
References
Kraus, A.J. & Ferrell, J.Z. (2016). The effect of top management team performance and cohesion on organizational outcomes. Society for Industrial and Organizational Psychology (SIOP).
Navarra, K. (2022). The real costs of recruitment. Society for Human Resources Management (SHRM). https://www.shrm.org/topics-tools/news/talent-acquisition/real-costs-recruitment
Stetz, T. & Chmielewski, T. L. (2015). Competency Modeling Documentation. SHRM & Society for Industrial and Organizational Psychology (SIOP).
Trout, J. (2006). Peter Drucker on marketing. Forbes. https://www.forbes.com/2006/06/30/jack-trout-on-marketing-cx_jt_0703drucker.html?sh=ac5ddf2555cb
