The Fifth Rockefeller Habit - Knowledge is Power
In the high-stakes world of business leadership, knowledge is power, and one of the most valuable sources of knowledge is right under your nose: your employees. The fifth Rockefeller Habit underscores a simple yet often underutilized truth—your employees are the eyes and ears of the organization. They are in the trenches, facing daily challenges and opportunities that leaders may be blind to. If you fail to collect their input regularly, you are operating without crucial intelligence, and the consequences can be disastrous.
Feedback loops are not just a "nice to have" process; they are essential to identifying obstacles and unlocking opportunities. Leaders who establish a robust system for gathering and acting on employee input are those who stay ahead of the curve, consistently improving performance and driving the company forward.
The Power of Employee Feedback Loops
At its core, a feedback loop is a process through which the organization gathers insights from its employees and acts upon them. This ensures that issues are identified and resolved in real-time while opportunities are captured and pursued before they pass by. Without this loop, you are operating in a vacuum, relying solely on top-down directives that may miss the mark.
In fact, research from Gallup shows that employees who feel heard are 4.6 times more likely to feel empowered to perform their best work. Regular feedback loops build a culture of trust and continuous improvement, where employees are motivated to contribute their ideas and solutions.
Leaders who fail to establish these feedback systems not only miss out on valuable input but also risk disengagement from their teams. In the absence of a voice, employees may feel that their insights do not matter, leading to a loss of motivation and a decline in overall performance. The message is clear: if you want your company to thrive, you must give your employees a voice.
The Start/Stop/Keep Framework
A highly effective way to collect ongoing employee feedback is the Start/Stop/Keep framework. This method asks employees to regularly share:
- Start: What should we start doing to improve processes, increase efficiency, or seize new opportunities?
- Stop: What should we stop doing that is hindering progress or wasting resources?
- Keep: What should we continue doing because it is working well and driving success?
This framework provides structure to the feedback process, making it easier for employees to contribute actionable ideas and for leaders to understand recurring themes. The feedback is then funneled into weekly executive meetings, where insights are shared and reviewed by leadership, ensuring that actionable steps are taken based on employee input.
Closing the Loop: Why Accountability Matters
Collecting feedback is only the first step. The real value comes from closing the loop—ensuring that the feedback is not only heard but acted upon. A mid-management team should be explicitly accountable for reviewing the feedback, addressing obstacles, and capturing opportunities. This team is responsible for making sure that employee input is more than just a checkbox; it is integrated into decision-making and followed up with tangible actions.
According to a report from Harvard Business Review, companies that excel in acting on employee feedback experience a 14.9% lower turnover rate and a 17% higher productivity rate. The evidence is irrefutable: when feedback loops are closed, employees feel valued, and the organization becomes more agile and responsive.
Accountability at this level also fosters a culture of ownership. When managers and leaders know they will be held responsible for addressing feedback, they are far more likely to engage in the process proactively and ensure that real changes are made.
Examples of Companies Utilizing Feedback Loops Effectively
Some of the most successful companies in the world have embraced the power of feedback loops and built cultures where employee input is not just encouraged but acted upon.
Google is one example. Google’s “20% time” program, where employees are encouraged to spend 20% of their work time on side projects, is a form of ongoing feedback collection. This allows the company to identify untapped opportunities, and many of Google’s most innovative products—such as Gmail and AdSense—have come from this initiative. Google has mastered the art of turning employee insights into opportunities for growth and innovation.
Netflix is another organization that places high importance on employee input. The company’s culture of radical transparency ensures that employees at all levels can contribute feedback that is discussed openly at the highest levels. Netflix collects input on everything from internal processes to content creation strategies, giving the company a competitive edge in an industry where consumer preferences shift rapidly.
The lesson from these companies is clear: feedback loops are not a passive exercise—they are a powerful tool for continuous improvement, innovation, and competitive advantage.
Tangible Steps to Implement a Feedback Loop
Now that we have discussed the importance of collecting employee feedback and closing the loop, let us focus on the action steps leaders can take to implement this system effectively.
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Establish a Structured Feedback Process: Use the Start/Stop/Keep framework to collect structured feedback on a weekly basis. Make it a part of your company’s DNA—this should not be an ad-hoc initiative but a formal, regular process.
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Integrate Feedback into Executive Meetings: Ensure that feedback collected from employees is reviewed at weekly executive team meetings. Do not let feedback sit in a vacuum; it must be funneled to leadership where decisions can be made.
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Assign Accountability: Hold mid-management accountable for closing the loop on feedback. They must be responsible for reviewing and addressing employee input and reporting back on the progress.
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Take Immediate Action on Obstacles: When an obstacle is identified through feedback, address it immediately. Waiting too long to act sends a message that employee feedback is not a priority.
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Capture and Leverage Opportunities: Feedback should not only be about solving problems but about seizing opportunities. When employees suggest new ideas or initiatives, leadership should move quickly to assess and implement them.
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Celebrate and Communicate Wins: When changes are made based on employee feedback, celebrate those wins publicly. Recognize the employees who contributed valuable insights, and show the entire company that their voices matter.
The Risks of Failing to Act
The cost of failing to implement effective feedback loops is high. Without employee input, you are blind to the realities of your organization. Problems will fester and worsen, and opportunities will pass by unnoticed. More importantly, you risk losing the trust and engagement of your employees. A survey by TinyPulse revealed that employees who feel their feedback is ignored are 16 times more likely to be disengaged than those who feel heard.
The choice is clear: either implement a robust system for gathering and acting on employee feedback, or allow your organization to drift into mediocrity. There is no room for indecision. Leaders who fail to act on this habit are choosing a slower, less responsive organization, one that is ill-prepared to face the inevitable challenges ahead.
Take Action: Establish Feedback Loops Today
The time to act is now. Establish feedback loops that gather employee input on a regular basis, ensure that this feedback reaches the leadership team, and hold mid-managers accountable for closing the loop. Implementing a system like the Start/Stop/Keep framework will provide the structure needed to turn employee insights into actionable opportunities.
If you fail to take this step, you are choosing to operate with blinders on, missing valuable opportunities for improvement, growth, and innovation. The companies that win are those that listen to their people and act swiftly.
The future of your business depends on it. Choose wisely, act decisively, and lead your organization into a future of continuous improvement and success.
Chris Young is a Trusted Advisor To Founders / CEOs | Certified Scaling Up Coach | Builder of People, Leaders, Teams & Economic Moats | Strategist and proud founder of The Rainmaker Group.
