Try This: Shine a Light

In leadership, few metaphors are as powerful and resonant as “Leaders create the weather,” a phrase eloquently expressed by Dr. Jonathan Reams. This quote beautifully captures a core activity of leaders—they set the tone, the mood, and the overall climate of an organization. This concept is particularly crucial for leaders in accountancy firms as they guide their teams through the complexities of a shifting industry, client demands, and evolving regulatory landscapes.

In fact, a growing body of research suggests that shining a light on the positives, small wins, and everyday successes can transform organizational culture. Recognizing and celebrating success doesn't just boost morale; it enhances performance and increases employee engagement – which has a very real impact on your firm’s success.

Improving Organizational Performance

According to Kim Cameron (2012), a scholar on Positive Organizational Scholarship, creating a culture that emphasizes the positive aspects of work can significantly improve organizational performance, particularly in high-stakes environments like accountancy firms. His work highlights that positive reinforcement leads to higher employee satisfaction and fosters creativity, innovation, and resilience in facing challenges. Cameron’s studies suggest that organizations that focus on cultivating positive relationships and recognizing individual contributions tend to perform better and have higher retention rates.

Improving Employee Engagement

Moreover, a Harvard Business School professor, Teresa Amabile, emphasizes the impact of “small wins.” Her research shows that when leaders highlight progress, even on a small scale, employees experience greater motivation, improved problem-solving abilities, and overall well-being. In an accounting context, where the work can often feel repetitive or highly technical, celebrating small wins—whether completing a complex audit or securing a new client—keeps the team engaged and driven.

Improving Employee Retention

In his book Big Potential, Shawn Achor reinforces the importance of recognition by stating, “[When an employee] received four or more touchpoints of praise or recognition in a quarter, the retention rate increased to 96 percent over the next year. New hires have an 80 percent retention rate, but nothing happens if they get one more touchpoint of praise. If they get two, the retention rate stays about the same. At three or four touchpoints of praise, the retention rate is 94 percent. That’s stunning. Given that the cost of replacing an average employee could be around $40,000, if we do the math, we see that every short touchpoint of praise was worth $10,000!” This data underlines the financial and cultural benefits of consistently highlighting the good.

Creating New Weather Patterns – Try This…

In the bustle of a busy day (or season), it can be difficult to see all the good. Our attention is naturally pulled elsewhere. However, leaders are responsible for ensuring that the good within their organization is pulled into focus authentically and consistently. But how do you do it? How do you ensure you cast those rays of light through the natural clouds in organizational life?

Try this: place a Post-it note on your computer with the words “rays” written on it. Then, provide 4-5 rays of light each day. Five simple expressions of gratitude to let others know you appreciate their excellent work.

How do you know it’s working? You will receive feedback from individuals or the team. You will observe more smiles and laughter. You will hear stories of people going above and beyond. You will feel better and more naturally see all of the good happening right before you. You will more easily notice the good yourself.

Leaders who consistently create “good weather” over time aren’t just influencing the day-to-day mood—they are shaping the long-term culture or what can be seen as the organizational climate. They are attuned to the tone of their communication, and over time, the positive tone set by leaders becomes embedded in the firm’s DNA. This can have long-lasting effects on employee retention, recruitment, and overall performance. As James Kouzes and Barry Posner (2017) highlight, it’s critical to “encourage the heart” as a way of being.

Suggested Reading and References:

• Kim Cameron (2012). Positive Leadership: Strategies for Extraordinary Performance.
• Teresa Amabile & Steven Kramer (2011). The Progress Principle: Using Small Wins to Ignite Joy, Engagement, and Creativity at Work
• Shawn Achor (2018). Big Potential: How Transforming the Pursuit of Success Raises Our Achievement, Happiness, and Well-Being.
• James Kouzes & Barry Posner (2017). The Leadership Challenge: How to Make Extraordinary Things Happen in Organizations.