The Society for Knowledge Economics (SKE) today announced the release of a 2 year study into leadership and management capability which finds a strong correlation between progressive leadership practices and business performance, including productivity and profitability.
The report Leadership, Culture and Management Practices of High Performing Workplaces: The High Performing Workplace Index, produced by a team of researchers from University of New South Wales (UNSW), Australian National University, Macquarie University and the Copenhagen Business School, involved collaboration with 78 Australian companies and over 5,600 employees in the services sector.
The lead researcher, Dr Christina Boedker, from the Australia School of Business at UNSW said, "High performing workplaces are up to 12 per cent more productive, and three times more profitable than their peers. Leaders of high performing workplaces prioritise people management, involve their people in decision making processes, are more responsive to customer and stakeholder needs, enable their staff to fully utilise their skills, and instil a sense of pride and feelings of being valued throughout their workforce".
The research has been funded by the Department of Education, Employment and Workplace Relations as part of the Workforce Innovation Program.
The report was launched today at the Prime Minister’ Future Jobs Forum in Canberra.
Steve Vamos, President of the Society for Knowledge Economics, said, "This report provides clear evidence that improving Australia’s productivity and effectiveness at work is largely a function of our commitment to develop leadership and management capabilities across our economy."
"The workplace is at the heart of the productivity debate because it is the performance of people at work that determines much of the productivity performance and output rates of the Australian economy. High performing workplaces are not just much more profitable and productive, they also perform better in many important 'intangible attributes', such as encouraging innovation, leadership of their people, and creating a fair workplace environment”, said Dr Boedker.
The next phase of the research involves a smaller group of participating companies working on intervention strategies over a 12 month period to help boost productivity and performance.
More information and a copy of the research report can be found at:
Department of Education, Employment and Workplace Relations
Society for Knowledge Economics
About the Society for Knowledge Economics
The Society for Knowledge Economics (SKE) is a not-for-profit organisation founded in 2005. Members include Microsoft, Westpac Banking Corporation, CPA Australia, PricewaterhouseCoopers, Hewlett Packard, KPMG, and the University of New South Wales. The SKE’ vision is to make Australian workplaces the most innovative, productive and fulfilling places in the world to work. Visit www.ske.org.au for more information.