The Manager Effect: How Good Leadership Drives Business Success

Cathie Leimbach • September 16, 2025

Your manager might be the key to your company's bottom line. Gallup's extensive research shows that quality managers don't just make employees happier—they directly boost financial results.


The Numbers Don't Lie

Gallup studied thousands of business units and found striking patterns. Teams with engaged managers see 23% higher profitability compared to those with disengaged leaders. The research also reveals that companies in the top quartile for employee engagement achieve 10% higher customer ratings and 18% higher productivity.


What Makes the Difference?

Great managers create a ripple effect throughout their teams:

·        Boost employee engagement - Engaged workers are 31% more productive and have 37% better sales performance

·        Reduce turnover costs - Good managers cut voluntary turnover by up to 40%

·        Improve customer satisfaction - Teams with strong leadership see 12% better customer metrics

·        Drive innovation - Engaged employees are 3x more likely to contribute new ideas


The research is clear: investing in manager development isn't just good for morale—it's essential for financial success. Companies that prioritize manager training see measurable improvements in revenue, profit margins, and overall business performance. Check out our visual breakdown to see all the numbers in action.


Ready to transform your bottom line? Schedule a 15-minute meeting with Cathie Leimbach to share your hopes and explore how Agon Leadership might be able to assist you in upskilling your managers so they are equipped to help today's employees excel.

How Managers Drive 70% of Performance

By Cathie Leimbach • February 17, 2026
Most CEOs focus on strategy, systems, and talent. But the biggest driver of performance is already in place: managers. Manager behavior influences about 70% of team engagement and results. What happens in everyday conversations matters more than perks, pay, or policies. Managers either multiply energy or drain it. Clear, supportive managers raise performance. Avoiding, inconsistent managers quietly lower it. The good news? Small habits make a big difference: Clarifying expectations Giving timely feedback Addressing issues early Reinforcing priorities These moments add up. Instead of telling managers to “motivate people,” try asking: Where might expectations be unclear? Where is inconsistency allowed? What conversation is being avoided? When managers improve just a little, results improve a lot. 👉 Join our 60-minute Leadership Conversation to explore how everyday manager habits quietly shape engagement and results.

Why Engagement Isn’t About Perks

By Cathie Leimbach • February 10, 2026
When engagement drops, many organizations reach for perks—rewards, programs, or incentives. These can create a short lift, but they rarely solve the real issue. Engagement starts with expectations. Most people want to do good work. What gets in the way isn’t motivation—it’s uncertainty. When priorities shift, roles feel unclear, or success means different things to different leaders, people disengage quietly. Leaders often don’t realize they’re contributing to this. Vague direction, inconsistent follow-through, or assuming “they already know” leaves teams guessing. Over time, guessing turns into frustration—and frustration turns into disengagement. Strong engagement cultures focus on leadership basics: Clear priorities Shared definitions of success Aligned expectations Consistent reinforcement When expectations are clear, people move with confidence. They take ownership, collaborate better, and stay engaged because they know where they’re headed. Perks can support engagement—but only after clarity is in place. 👉 Read our full article on Why Engagement Starts With Expectations to turn clarity into a real advantage.