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Gallup concludes that the world’s most serious short-term (five-to 10-year) problem is declining economic dynamism and declining productivity (GDP per capita). We also conclude that these problems can be fixed just as surely as lean management and Six Sigma once fixed US and global production quality. This time, the defects that need to be eliminated aren’t failures in processes but failures in maximizing human potential.

One large global professional services company estimated that it was wasting $1 billion of leadership time per year on managers filling out ratings forms rather than developing employees and having ongoing coaching conversations with them. Like so many CEOs and CHROs are discovering, there’s no evidence anywhere in the world, in any institution of management science, that existing massive employee evaluation and rating processes are effective.