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The importance of Management


At the start of a management training workshop, I typically ask the question “Why is Management important?” followed by “Why is GOOD Management important?”. So, if you are in a management role, try to answer this question – why is what you are doing important? Important to the people you lead, important to the company, important to the company’s customers, etc.


By and large people resign from their manager not from their employer, and if you look at the Gallup Q12 it will become evident why. I have explained the background of the Gallup Q12 in the Gold-Nugget and blog post about Engagement”. The responses to 11 out of the 12 questions are heavily influenced by the manager-employee relationship.


This answers the question why good management is important to the people you lead but how does good management of your area affect overall company results? Well, a flippant answer could be “good vibes are contagious”, meaning your motivated and engaged team will positively influence the rest of the company. Another soft measure translating into serious implications is that people who feel highly engaged are less likely to experience burn-out.


Looking at “hard currency”, results of good management can be directly measured by what the resignation of an employee costs a company. A rule of thumb is that replacing an employee carries an average price of an annual salary. This includes the direct cost for recruitment (headhunting, advertising campaign, time for interviewing) time for covering a vacant role, time for onboarding, the effect on the remaining staff, etc..


Additionally, ask yourself how likely it is that your team members will recommend the company as a good place to work and how they talk about your company and its products outside of work.


Another argument is the cost of internal or mental resignation to the overall economy. In Germany in 2021 the impact is estimated at around 100 billion Euros (between 92,9 and 115,1 billion Euros) according to the latest Gallup report. The same report shows that the number of employees who are looking for a new job has increased significantly in 2021. Companies already feel the shortage of available talent on the labour market and it is therefore of pivotal importance to be the best manager you can be for your team , to ensure they feel appreciated, valued and challenged at the same time.


How can you make sure that you are the best you can be for your people?



Find my “Management Gold – Nuggets” useful? Then let me know and share with others.


If you find this inspiring and you would like to explore further how we could work together, I am delighted to meet with you for a 30-minute-free-of-charge-info-session