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12_ The Elements of Great Managing

In a sentence

Drawing on Gallup's massive employee-opinion database, the book identifies twelve measurable elements of work life that great managers cultivate to drive engagement, performance, and profitability.

What separates thriving teams from struggling ones is not strategy, technology, or even pay—it is the everyday behavior of front-line managers who satisfy twelve fundamental human needs at work. Built on more than ten million employee responses across 114 countries and matched against hard business metrics like productivity, turnover, safety, theft, and profit, '12: The Elements of Great Managing' translates rigorous research into vivid stories of real managers who turned around hotels, call centers, factories, hospitals, and stores. Weaving together neuroscience, evolutionary psychology, behavioral economics, and Gallup's proprietary findings, the book shows that humans were shaped by tribal life and respond to clear expectations, the right tools, the chance to use their strengths, recognition, care, development, a voice, mission, committed coworkers, friendship, feedback on progress, and growth. The payoff is concrete: engaged teams are more profitable, safer, more loyal, and more creative. The book is both a science-backed argument and a practical, humane guide for anyone responsible for getting the best from people.

The four lenses

  • Science
  • Statistics
  • Systems
  • Strategy

Tags

behavioral-sciencestrategy

The model

A causal framework in which front-line manager behaviors create twelve psychological states of employee engagement, which in turn drive behavioral patterns and business outcomes such as profitability, productivity, retention, safety, and customer loyalty.

Front-Line Manager Behaviordesign lever

The deliberate actions, judgment, talents, and care that an immediate supervisor applies to clarify roles, supply tools, match talents, recognize, care for, develop, listen to, and grow their team members.

Knowing What Is Expectedpsychological state

The employee's detailed understanding of how their responsibilities fit with everyone else's and how expectations change as circumstances change, constituting true integrated teamwork rather than a mere job description.

Materials and Equipmentpsychological state

The employee's perception that they have the tools, information, support, and resources needed to do their work right, which is the strongest driver of job stress when lacking and a powerful psychological motivator when present.

Opportunity to Do What I Do Bestpsychological state

The employee's sense that their job allows them to apply their innate talents and strengths every day, producing optimal 'flow' experiences and higher productivity through proper talent-to-task matching.

Recognition and Praisepsychological state

The employee's experience of having received recognition or praise for good work within the last seven days, which triggers dopamine reward circuitry and reinforces desired behavior.

Someone Cares About Me as a Personpsychological state

The employee's perception that their supervisor or someone at work cares about them as a person, building the tribal social bond and trust that unlocks discretionary effort and reduces cheating and turnover.

Someone Encourages My Developmentpsychological state

The employee's sense that someone at work, often a mentor, actively encourages their development, leveraging the power of role-modeling and personal guidance to navigate the organization successfully.

My Opinions Seem to Countpsychological state

The employee's belief that their opinions are valued at work, creating psychological ownership and commitment to decisions they help shape, contrasting with Taylorist top-down dictation.

Connection With Company Missionpsychological state

The employee's feeling that the mission or purpose of the company makes their job important, satisfying the human search for meaning and a higher purpose beyond a paycheck.

Coworkers Committed to Quality Workpsychological state

The employee's perception that fellow employees are committed to doing quality work, which is highly sensitive to the presence of free-riders and drives reciprocity, trust, and team cooperation.

A Best Friend at Workpsychological state

The employee's having a best friend at work, a measure of deep social affiliation and social capital that predicts profitability, safety, theft reduction, and customer loyalty despite seeming unbusinesslike.

Talking About Progresspsychological state

The employee's experience that someone at work has talked to them about their progress in the last six months, encompassing informal ongoing feedback more than the formal annual appraisal.

Opportunities to Learn and Growpsychological state

The employee's sense that within the last year they have had opportunities at work to learn and grow, satisfying the innate human drive for progress and mastery.

Employee Engagementpsychological state

The overall emotional and psychological commitment of an employee to their team and organization, aggregated from the twelve elements, that energizes discretionary effort directed at company needs.

Discretionary Employee Behaviorbehavioral pattern

The many small voluntary actions employees take—showing up, helping coworkers, vigilance for safety, refraining from theft, extra effort, and creative ideas—that statistically accumulate to affect business outcomes.

Pay Fairness and Transparencycontextual condition

The employee's perception of being paid appropriately and the fairness and transparency of compensation criteria, a status-laden contextual condition that interacts with engagement but does not by itself produce it.

Business Unit Performance Outcomesoutcome metric

Measurable enterprise results including profitability, productivity, employee turnover, absenteeism, accidents, inventory shrinkage, customer engagement scores, and earnings per share.

How they connect

  • manager behavior influences knowing whats expected
  • manager behavior influences materials equipment
  • manager behavior influences do what i do best
  • manager behavior influences recognition praise
  • manager behavior influences cares about me
  • manager behavior influences encourages development
  • manager behavior influences opinions count
  • manager behavior influences mission connection
  • manager behavior influences coworkers committed quality
  • manager behavior influences best friend at work
  • manager behavior influences talking about progress
  • manager behavior influences learn and grow
  • knowing whats expected predicts employee engagement
  • materials equipment predicts employee engagement
  • do what i do best predicts employee engagement
  • recognition praise predicts employee engagement
  • cares about me predicts employee engagement
  • encourages development predicts employee engagement
  • opinions count predicts employee engagement
  • mission connection predicts employee engagement
  • coworkers committed quality predicts employee engagement
  • best friend at work predicts employee engagement
  • talking about progress predicts employee engagement
  • learn and grow predicts employee engagement
  • employee engagement predicts discretionary behavior
  • discretionary behavior predicts business outcomes
  • employee engagement predicts business outcomes
  • pay perception moderates employee engagement
  • manager behavior mediates employee engagement

A candidate measure

12_ The Elements of Great Managing — derived measurement candidates

Front-Line Manager Behavior

Frequency of one-on-ones; Proportion of employee ideas implemented; Manager presence on different shifts

self-report suitability: medium

Knowing What Is Expected

Q12 item agreement; Ability to link job to company goals

self-report suitability: high

Materials and Equipment

Q12 item agreement; Self-reported job stress; Attrition rates

self-report suitability: high

Opportunity to Do What I Do Best

Q12 item agreement; Sales and absence differentials for aligned roles

self-report suitability: high

Recognition and Praise

Q12 item agreement; Intent-to-quit measures

self-report suitability: high

Someone Cares About Me as a Person

Q12 item agreement; Turnover rates; Cheating rates under incentive

self-report suitability: high

Someone Encourages My Development

Q12 item agreement; Engagement classification

self-report suitability: high

My Opinions Seem to Count

Q12 item agreement; Accident rates; Fairness perceptions

self-report suitability: high

Connection With Company Mission

Q12 item agreement; Turnover and accident rates

self-report suitability: high

Coworkers Committed to Quality Work

Q12 item agreement; Profitability and accident variance

self-report suitability: high

A Best Friend at Work

Q12 item agreement; Accident, theft, and customer-score correlations

self-report suitability: medium

Talking About Progress

Q12 item agreement; Productivity and accident rates

self-report suitability: high

Opportunities to Learn and Grow

Q12 item agreement; Intent to stay; Idea generation

self-report suitability: high

Employee Engagement

Q12 composite; Ratio of engaged to actively disengaged

self-report suitability: high

Discretionary Employee Behavior

Absenteeism days; Shrink percentages; Accident counts; Ideas submitted and savings

self-report suitability: low

Pay Fairness and Transparency

Oblique pay-appropriateness item; Archival pay-criteria transparency; Turnover linked to pay events

self-report suitability: low

Business Unit Performance Outcomes

Profitability; Productivity; Turnover percentage; EPS vs competitors

self-report suitability: none

Run the assessment

The story

The reader A front-line manager or executive who wants to get the best performance from their team while improving employees' work lives.

External problem

Teams underperform—high turnover, low productivity, accidents, theft, and weak customer scores—despite good products and strategy.

Internal problem

The manager feels uncertain how to motivate people, frustrated that effort and incentives aren't translating into engagement.

Philosophical problem

Treating people as interchangeable 'pairs of hands' and fighting human nature is both ineffective and just plain wrong.

The plan

  1. Measure engagement using the twelve validated elements.
  2. Diagnose which elements your team is weak on.
  3. Address each element through deliberate managerial action—clarity, tools, talent-matching, recognition, care, development, voice, mission, accountability, friendship, progress talks, and growth.
  4. Hold managers accountable for engagement over time.
  5. Treat pay fairly and transparently while relying on the twelve elements for motivation.

Success

  • Higher profitability, productivity, and customer loyalty.
  • Lower turnover, absenteeism, accidents, and theft.
  • Employees who are committed, creative, and proud to stay.
  • A manager who finds deep satisfaction in improving people's whole lives.

At stake

  • Disengaged teams that cost the business billions in lost productivity.
  • High turnover, accidents, theft, and poor customer service.
  • Talented people leaving and managerial neglect eroding profitability.
  • Employees who feel like 'just a number' and quietly withdraw effort.

Chapter by chapter

  1. ch01Introduction: The Value of Employee Engagement

    This chapter introduces the critical connection between employee engagement and organizational performance, highlighting how effective management can transform not only workplace environments but also profitability.

    • Employee engagement is not merely a management trend; it is a critical driver of organizational performance.
    • Front-line managers like Lou significantly impact employee motivation and overall engagement.
    • The twelve elements that contribute to employee engagement are foundational to a productive work environment.
    • Disengaged employees can cost organizations significantly in terms of turnover and absenteeism.
  2. ch02The First Element: Knowing What’s Expected

    In this chapter, the vital need for clarity in expectations within a team is examined through the transformative experience of a hotel manager tasked with reversing poor performance.

    • Clarity in job expectations is the cornerstone of organizational success and team performance, as evidenced by the DFW Marriott South's turnaround.
    • Engaged employees are empowered to produce innovative solutions, as highlighted by examples of higher cost-saving ideas from committed staff.
    • Focusing on outcomes rather than processes transforms an organization's culture, facilitating higher overall motivation and morale among team members.
    • Effective teamwork requires not just individual proficiency but also an understanding of how roles interconnect, akin to an orchestra performing in harmony.
  3. ch03The Second Element: Materials and Equipment

    In an industrial setting where safety and efficiency hinge on the proper equipment, this chapter examines how empowering employees with the right tools fosters productivity and morale, while neglecting these needs can lead to frustration and disengagement.

    • Providing employees with the right tools and materials is crucial for both safety and efficiency, as demonstrated in the Owens Corning fiberglass plant in Brazil.
    • Observations from the plant show that a culture of safety and comfort directly correlates to employee engagement and productivity.
    • The failure of Jay Chiat's virtual office experiment serves as a reminder of the need for personal workspaces and adequate equipment.
    • A lack of proper materials leads not only to practical challenges but also to emotional turmoil for workers, impacting their job satisfaction.
  4. ch04The Third Element: The Opportunity to Do What I Do Best

    This chapter explores the critical importance of matching individual talents to roles within teams, highlighting how this alignment can drive innovation and performance in high-stakes environments.

    • The Third Element states that individuals perform best when allowed to do what they do best every day.
    • High-performing teams leverage the distinct talents of their members to enhance collaboration and drive results.
    • A culture that recognizes and utilizes individual strengths leads to enhanced engagement and productivity.
    • Selection and management practices should prioritize psychological insights into employee strengths for better outcomes.
  5. ch05The Fourth Element: Recognition and Praise

    This chapter examines the transformative power of recognition and praise in the workplace, detailing Elżbieta Górska-Kołodziejczyk’s efforts to uplift employee morale in a challenging environment.

    • Employees who receive regular recognition are significantly less likely to leave their organizations, with studies indicating they are twice as prone to stay.
    • A lack of recognition leads to decreased employee morale, engagement, and ultimately, productivity.
    • Effective praise should be immediate and specific, capitalizing on the very human neurological craving for positive reinforcement.
    • Cultural biases can inhibit the delivery and reception of praise; a manager must adapt their strategy to foster acceptance of positive feedback.
  6. ch06The Fifth Element: Someone at Work Cares About Me as a Person

    This chapter argues that the psychological connection employees feel toward their managers and colleagues—summed up by the statement, "Someone at work cares about me as a person"—is critical for boosting morale and improving organizational performance.

    • Genuine caring from management is a catalyst for employee engagement and can transform organizational performance.
    • Personal connections at work can revitalize morale and reduce turnover rates, as evident from Qwest's turnaround story.
    • A supportive managerial attitude can act as a differentiator in performance outcomes, tying employee well-being to productivity metrics.
    • Employees who feel valued participate more meaningfully and ethically in the workplace, leading to better results and reduced grievances.
  7. ch07The Sixth Element: Someone at Work Encourages My Development

    The chapter argues that having a mentor in the workplace is essential for personal and professional development, influencing employee engagement significantly. It illustrates how mentorship fosters growth through personal interaction, illustrated with compelling anecdotes and scientific insights.

    • Mentorship is essential for personal growth, evidenced by the correlation between having a mentor and higher employee engagement levels.
    • The concept of mirror neurons sheds light on the biological basis for why mentorship is effective, driving home the importance of learning through observation.
    • Engaged mentors are a fundamental component of the workplace, serving not just as advisors but as critical supporters in navigating career paths.
    • Formal mentoring programs often fail to replicate the organic nature of successful mentor-mentee relationships, emphasizing the need for flexibility in how these connections form.
  8. ch08The Seventh Element: My Opinions Seem to Count

    The chapter emphasizes the critical role that employee opinions play in reducing wait times and improving operational efficiency within the healthcare environment, particularly in pediatric diagnostic imaging.

    • “At work, my opinions seem to count” is a cornerstone belief that correlates with increased employee engagement and better outcomes.
    • Reductions in wait times at Sick Kids demonstrate that engaged employees can significantly enhance patient care efficiency.
    • Collaboration and mutual respect among diverse healthcare professionals are essential for operational success.
    • Empowering staff to share their ideas fosters a sense of ownership and creativity that can lead to practical, innovative solutions.
  9. ch09The Eighth Element: A Connection With the Mission of the Company

    This chapter argues that a strong connection to a company's mission significantly enhances employee engagement, performance, and job satisfaction, which ultimately drives organizational success.

  10. ch10Coworkers Committed to Doing Quality Work

    In a high-turnover retail environment, Best Buy manager Eric Taverna faces the challenge of enhancing employee engagement and commitment to quality work amid perceptions of disengagement and a lack of accountability among his team.

  11. ch11A Best Friend at Work

    Success in the workplace significantly hinges on interpersonal connections, especially the presence of friendships that foster collaboration and enhance overall employee performance.

    • Having a best friend at work directly correlates with improved team performance and emotional engagement.
    • Managers play a vital role in facilitating friendships by creating environments that nurture connections among employees.
    • Research indicates that teams with strong interpersonal relationships report higher levels of job satisfaction and lower turnover rates.
    • Friendship impacts safety and accountability in the workplace, leading to fewer accidents and negligence.
  12. ch12Talking About Progress

    Philippe Lescornez transforms the traditional performance evaluation process into a continuous dialogue that prioritizes genuine, ongoing feedback, fostering high employee engagement and motivation.

    • The most effective performances emerge from consistent, meaningful feedback rather than solely relying on formal evaluations.
    • Employees who receive regular check-ins about their performance are more engaged and feel valued in their roles.
    • The disconnect between annual appraisals and employee perception can lead to disengagement and dissatisfaction.
    • Managers must adapt feedback styles to meet the diverse needs of their team members to cultivate a supportive work environment.
  13. ch13Opportunities to Learn and Grow

    This chapter highlights the critical importance of providing employees with opportunities for learning and growth and demonstrates how managerial support can transform their career trajectories, as seen through the experiences of Colleen Saul and her colleagues at B&Q.

    • Employees who perceive opportunities for learning and growth are more likely to commit to their organization long-term.
    • Effective management not only requires tactical skill but also a deep understanding of each employee's aspirations and potential.
    • Organizations with top quartile employee engagement outperform bottom quartiles in customer satisfaction and profitability.
    • Regular feedback and communication can resolve feelings of stagnation and enhance job satisfaction among employees.
  14. ch14The Problem of Pay

    This chapter delves into the complexities surrounding employee compensation, arguing that pay is not merely a function of market value but is deeply intertwined with psychological and social factors that affect worker motivation and engagement.

    • Transparency in compensation criteria can mitigate feelings of inequity among employees.
    • Pay is not merely a monetary transaction but a reflection of status and societal norms.
    • Historical cases demonstrate that publicizing pay can exacerbate disparities rather than resolve them.
    • Employees motivated by intrinsic rewards may produce better outcomes than those incentivized solely by financial gain.
  15. ch15What Great Managers Need

    This chapter examines how the effectiveness of great managers relies on their own engagement and support as employees, challenging the misconception that they are impervious to the same needs as their teams.

    • Great managers are not impervious to the same needs for recognition and support that their teams require.
    • A manager’s engagement level is deeply intertwined with the performance and morale of their team.
    • The disengagement of managers can have a cascading negative effect on overall organizational performance.
    • Organizations must prioritize the support of their managers to create thriving work environments.
  16. ch16The Heart of Great Managing

    The chapter argues that while many leaders claim "Our people are our greatest asset," the disconnect between said belief and actual managerial practice underlies significant employee disengagement and organizational dysfunction.

    • The phrase “Our people are our greatest asset” has become meaningless rhetoric in many organizations, masking severe managerial inadequacies.
    • Employee disengagement costs U.S. organizations an estimated $300 billion annually, dwarfing losses from theft or other forms of malfeasance.
    • Successful management relies not solely on profits but on fostering genuine human connections and caring for individual employees.
    • Executives must understand that the presence of both engaged and disengaged teams within the same company is a symptom of inadequate management.

Related in the library

Related in the literature

The measurement literature behind this signal — sourced, so you can defend it.

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Resources: Twelve Elements Great Managing · First Break All the Rules