Gallup and McKinsey have formed the Organizational Science Initiative. Its purpose is to create the most comprehensive analytics ever on the subject of behavioral economics for organizations -- or more simply, the role human nature plays in virtually all organizational outcomes.
Gallup, the analytics firm, is the leading expert on employee engagement, and McKinsey, the management consulting firm, is the best at organizational strategy and health. The combination of these strengths creates unlimited possibilities of breakthroughs and discoveries for corporations, nonprofits, governments and all institutions.
Our purpose is to report findings that change the world -- findings that can boom the global economy and especially the growth of good jobs. And good jobs, along with a growing global middle class, are the most basic drivers of worldwide human development, stability and overall well-being.
Global GDP is running out of gas. This means the world's citizens aren't making and trading enough to support population growth, food and shelter needs, infrastructure development, the creation of good jobs, adequate healthcare, and so on. Global well-being is running out of gas, too. Our mission is to fix these problems and help get the global economy back on track.
Although it may sound simplistic, Gallup's conclusion is that a global economic turnaround will be driven by 10 million leaders around the world running their organizations not just better, but differently. Organizations everywhere have already made process improvements through initiatives such as Six Sigma and lean management. They are already "leaner and meaner." What they haven't done is master the engagement of their workforces.
In fact, there's a crisis in the cultures of organizations worldwide. Gallup has discovered that only 13% of the world's 1.3 billion full-time employees are engaged in their work. Think of how organizations could boom their revenue and growth by doubling that number -- and consider the impact this would have on global GDP growth and good jobs around the world.
What's more, McKinsey's research shows that the healthiest organizations generate nearly three times the returns than less healthy companies -- which means that companies are leaving hundreds of millions -- or even billions -- of dollars on the table.
A significant contribution of the Organizational Science Initiative will be its creation of the first-ever global gold standards around employee engagement and organizational health, so leaders of all types can learn and benchmark from one another's successes. The right dashboard with matching metrics for all to use is a game changer in itself.
Key activities of the initiative will include:
Creation of a joint research agenda: A collaborative research effort leveraging more than 80 years of Gallup analytics on engagement, talent and management, alongside insights drawn from McKinsey's Organizational Health Index of over 900 companies.
Establishment of a global advisory board: Creation of an advisory board representing organizations across the globe. These leaders have the potential to influence significant improvements in how they manage and develop their people.
Hosting of regional executive summits: Executive summits throughout 2015 and 2016 in several major cities worldwide, including New York City, London and Singapore, to brief global advisory board members and key industry executives.
As Chris Gagnon, a McKinsey partner and leader of McKinsey's organization analytics group, says: "There's no shortage of big data on organizational performance. The problem is that no single firm has the ability to take all this data and translate it into a complete picture of organizational health. Combining the world-leading data and knowledge of our two firms means we can look at organizational health in a way that hasn't ever been possible."
Gallup is excited and proud to be a partner in this new research collaboration with McKinsey. We are taking this responsibility very seriously. The whole world needs to be run and led a whole lot better than it is right now. Our goal is to make a significant contribution toward putting the global economy back on track.