In research about the cost of “people problems” published in Harvard Business Review in 2016, Tanya Menon and Leigh Thompson report that “executives estimated wasting an average of $7,227.07 per line item per day, for a total of $144,541.30 per day.
“These are perceptions rather than scientific measures, but they reveal significant amount of lost value,” write the authors, who asked leaders to place costs on such people problems as hiring the wrong employees, unproductive meetings and uninspiring leaders.
A speaker at Directors Conference this December, Menon is a professor of management and human resources at the Ohio State University’s Fisher College of Business and co-author of Stop Spending, Start Managing: Strategies to Transform Wasteful Habits. Thompson is the J. Jay Gerber Distinguished Professor of Dispute Resolution and Organizations at the Kellogg School of Management, Northwestern University.
continue reading »