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24 SMT007 MAGAZINE I AUGUST 2024 ways you can effectively support them. While there are practical measures to assist someone with physical burnout, the focus here is not on detailing those strategies. Instead, it's vital that you know how to deeply understand and support your team members in whichever way will be most effective for them. Why Should I Care About Empathy? When explaining the current landscape, I oen get this question: "Why would I even care about a culture of thriving?" Especially in envi- ronments where factual and technical skills dominate—such as engineering, supply chain, and finance—integrating empathy might initially seem nonessential. How- ever, the fundamentals of empa- thetic leadership are universally applicable and can significantly enhance how teams in techni- cal fields collaborate, innovate, and resolve issues. A thriving culture leads to increased reten- tion and engagement. When employees feel engaged, they not only remain with the organization but also perform at their best, oen going above and beyond expectations. A Culture of Thriving Is a Differentiator In addition to retention, engagement, and performance, one significant reason why fos- tering a thriving culture matters is that it directly impacts how customers feel about your organization. In discussions with various organizations about why some attract more business than others despite having similar resources—such as access to technology, footprint, and supply- chain capabilities—the consensus points to organizational culture. All things being equal, a dynamic culture both differentiates these organizations and significantly contributes to their market appeal, ultimately affecting the bottom line. According to McKinsey & Com- pany, companies with top-quartile cultures outperform median cultures by 60% and bot- tom-quartile cultures by 200% 1 . A recent Gallup report says an organization is only as strong as its work culture. In fact, 84% of the value of an S&P 500 company comes from talent, skills, knowledge, work ethic, and the health of its employees 2 . Healthy cultures also enable organizations to adapt. In an ever-changing world, the signifi- cance of culture becomes paramount. Organi- zations characterized by high-performing cul- tures excel in adapting to change. Conversely, those with unhealthy cultures struggle to cope with change effectively. Studies indicate that 70% of transformation initiatives fail, with 70% of those failures attributed to culture-related issues 2 . But What Is Empathy? When discussing empathy, I frequently encounter ques- tions such as "What exactly does empathy mean?" and "How do you begin to incor- porate it?" Empathy is about having a deep understanding of the diverse and unique needs of your people by metaphorically "walking in someone else's shoes." is is easy to say but hard to do, and one size doesn't fit all. In all my conversations with our clients, I drive home the idea that "customization is king." In other words, you have to tailor your leadership approach to meet the wide and var- ied needs of your people. e specific require- ments of a chief financial officer in their work environment will differ significantly from those of, say, an engineer. Of course, overarching human resources strategies will continue to address compensa- tion and retention, but here's the kicker: the real secret of successful leadership lies in your ability to lead with empathy and connect with your people. Establishing a thriving organiza- tional culture begins with leadership that is not