This was not an idea that Jungkiu had even imagined. These experiments paid off in terms of company performance. Complaints from customers were reduced by 29 percent during the same period. The employee attrition ratio, which had been the highest among all of the foreign banks in China, was reduced to the lowest among all foreign banks in China.
But when leaders are humble, show respect, and ask how they can serve employees as they improve the organization, the outcomes can be outstanding. And perhaps even more important than better company results, servant leaders get to act like better human beings. You have 1 free article s left this month.
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Dan Cable is professor of organizational behavior at London Business School. His newest book Exceptional helps you build a personal highlight reel to unlock your potential, and Alive at Work helps you understand the neuroscience of why people love what they do.
This helps that employee get motivated and excited, and shows that the leader is interested in their potential and development. A servant leader makes sure everyone knows their job is important. A great example of this is in the medical field, where a doctor relies heavily on their nurse and assistants to get everything done.
A great example of this is Southwest Airlines. Employees know that the organization focuses on them first, and then the customers. This leads to high retention rates and extremely high job satisfaction in the organization. Servant leaders show employees consistently that they care about them, that they want them to be successful and happy, and that leads to better outcomes for everyone. There are many important advantages to using this kind of leadership in business.
Some of these advantages include:. Higher profits. Good leaders help empower everyone to do their best in the organization, which can lead to making more money. Lower turnover. Servant leaders attract and keep good employees. Servant leadership sees much lower turnover rates because employees are happy at work, and enjoy working with their manager. Better company culture. Overall, your company culture will thrive under servant leadership. Everyone will start to focus on how they can help each other, making the work environment a healthy, happy, and thriving place.
Everyone wants the best for each other. Higher productivity. When everyone in an organization gets along and wants to help each other, higher productivity is the result. While servant leaders are great at setting clear goals that leads to high team performance, the teams that did not have a servant leader had lower performance the clearer their goals! Employees of servant leaders are more helping and creative than those working with leaders who scored lower on servant leadership.
In , the Cleveland Clinic significantly increased employee engagement and overall patient satisfaction by "hardwiring" servant leadership into the culture. In a study at a five-hospital system with 17 departments, nurses who perceived that their nurse managers had a higher servant leadership orientation demonstrated significantly greater job satisfaction. University of Illinois at Chicago recently conducted a Servant Leadership study of employees at 71 Jason's Deli restaurants in 10 metropolitan areas in the U.
The research reveals when bosses act as servants to their employees, it's good for business. Measurable increases in key business metrics like job performance 6 percent , customer service 8 percent and employee retention 50 percent were observed. Research co-author Sandy Wayne, Ph. Source: Washington Post, Popeye's Louisiana Kitchen, a global restaurant chain, has an incredible story documented in their CEO's latest book, Dare to Serve , where Cheryl Bachelder talks about how they went from being a company on the brink of disaster to one experiencing tremendous growth by every measure including profitability, expansion and customer satisfaction, all because the leaders decided to flip a switch, and become intentional servant-leaders.
Here's Bachelder at the Servant Leadership Institute Winter Conference Panel explaining, rather humorously, how financial performance stems from a servant leadership culture. In this video clip you'll want to fast forward to for the hard numbers , Ben Lichtenwalner , editor of Modern Servant Leader interviews Barter about Datron's incredible transformation. Researchers compared the companies made famous by Jim Collin's seminal classic, Good to Great , with companies that have been applying servant leadership principles.
The research was based on the metrics Collins used to evaluate the financial performance of his eleven publicly traded "good to great" companies.
Those companies were compared with eleven publicly-traded companies that are frequently cited in the literature as having servant leadership cultures:. While it can be tricky to understand, servant leadership makes a lot of sense depending on appropriate application of concepts. Servant leadership means that the leader puts the followers first in an attempt to empower them and build them up to achieve the best that they personally can Northouse, Servant leadership highlights important characteristics that leaders need to have as well.
These competencies include placing followers before their own self-interests and developing them to reach their full capacity as a valued employee Northouse, Furthermore, a servant leader will have a strong moral compass when interacting with followers, stakeholders, and shareholders within an organization in order to bring the most good and minimize the most harm Northouse, Most of these need no introduction as they are commonly known, so let us just look at the two that could use a definition, conceptualization and stewardship.
Conceptualization involves the leader having vision for their followers and their organization by communicating clear ideals of goals and direction for the company and all involved Northouse, Stewardship refers to leaders who take responsibility for their roles and also take care in their leadership position to direct their followers and the organization in such a way that reflects trust Northouse, I can recall an example of servant leadership with a department manager I used to work for.
He hardly seemed like leadership material at the time, but in looking back, I just failed to see the type of leadership he was using and why it was so effective.
Many people liked him and no one ever had any ill feelings towards him. We always met our goals and repeatedly had all our affairs in order when we were going to be inspected by higher management. We never really questioned why we all liked him, why we did whatever he said without hesitation, or why we were always so successful. We just thought we happened to have the best team by chance I would assume. This manager was the type that would repeatedly remove obstacles from our paths in order for us to grow and in turn, serve better ourselves.
For example, he would help us clean our areas, which he did not need to, in order for us to have more time to learn our computer ordering system which was important for us to be proficient in so we could better serve clients.
He would also take over our desk positions and allow us to step into different leadership roles ourselves. An example being that we could work in other departments while he held down the fort in our own department, allowing us to experience new and interesting responsibilities. The outcome was that we were learning new valuable skills that benefitted us as well as the company.
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