This suggests that team members who check in with their leader frequently have an enhanced sense of being able to use their strengths every day, of being recognized for excellent work, and of having opportunities to grow. Although this study did not distinguish between correlation and causation (we could not tell whether the increased frequency of conversation led to increased engagement or vice versa), subsequent research, a portion of which is described in the final section of this appendix, indicated that it was in fact the increased attention, via frequent conversation, that led to the increased levels of engagement.

A 2018 Gallup study found that barely a third of US employees were fully engaged in their work—where engagement is defined as being “involved in, enthusiastic about and committed to work.” The majority of employees, 53 percent, were “not engaged,” while 13 percent—the maliciously compliant—were “actively disengaged.” Globally, the situation is even worse, with 15 percent engaged, 67 percent disengaged, and 18 percent actively disengaged.

A successful management team in a business strikes a balance with which most stakeholders are content. Investors are satisfied with their dividend (or now more usually share price appreciation); employees are happy with their jobs; customers and suppliers believe they are getting a good deal. So staff turn-over is low, customers and suppliers remain loyal and the share price remains buoyant. And so does the business. In a market economy exit may be a more important and effective mechanism of imposing accountability – and expressing one’s opinion of the quality of the decisions of the executives of the business – than voice. But voice and exit operate in parallel. Exit is the remedy of those who feel their ideas or needs are ignored. The voice that matters to most people in organisations is not loud. It is the internal voice that says that people in this organisation care about me, and care about what I do, and about what I think. That sense of engagement does not require, and is often inconsistent with, formal processes of consultation, such as town hall meetings or, particularly, worker representation on the board. A common feature of these

processes is that the people who take an active part in them are unrepresentative by virtue of the very fact of being there. Most people have other things to do, and hesitate to express themselves publicly; participants in consultations are often present simply because they are particularly opinionated.

Think of all the resources you devote to hiring good employees: interviews; background checks; references; tests for ability, motivation, and cultural fit. Now think of the energy you spend on "hiring" the right customers. In most companies, there's no comparison, even though customer behavior can have just as much of an operational impact as employee behavior. Customers can play a defining role in your ability to deliver great service at a sustainable cost. And the greater your expectations for your customer-operators, the more time you need to devote to choosing the right people for the job.

Think of all the resources you devote to hiring good employees: interviews; background checks; references; tests for ability, motivation, and cultural fit. Now think of the energy you spend on "hiring" the right customers. In most companies, there's no comparison, even though customer behavior can have just as much of an operational impact as employee behavior. Customers can play a defining role in your ability to deliver great service at a sustainable cost. And the greater your expectations for your customer-operators, the more time you need to devote to choosing the right people for the job.