By Peter DiMario CEO and Phyllis Mikolaitis EVP

A New Results-Oriented Lens for Modern Leadership

Why So Many Companies Are Struggling… Quietly???

If you talk to executives across all industries, you’ll hear the same concern:

• “Why aren’t we seeing consistent, predictable monthly performance from our managers and their team members?”

We’re not dealing with a motivation problem. We’re dealing with a workforce visibility problem.

Here’s what the data tells us:

• U.S. productivity in 2025 is projected at 2.75–3%, nowhere near the level companies need to stay competitive
• Employee engagement has plateaued at 32%
• Only 20% of employees are performing at the A+, A, or B level
• Half of the workforce now falls into a “quiet quitting” mode supported by 10 years of Gallup research

These numbers aren’t simply discouraging.

They reveal millions of dollars in unrealized and unreported profit that companies never see on their financial statements.

A Real-World Example of Hidden Value

In 2024, Kroger unintentionally left $1.3 billion in unreported net earnings on the table.
If captured, that profit would have increased net earnings by 42%.

This isn’t about Kroger.

This is about the way nearly every executive team and its organization measures (or doesn’t measure) the performance capability of its people, empowering leaders to make informed, confident decisions.

Simply:

It means that there is a very low Return on Kroger’s Mammoth Human Capital Investments.

When a company’s Return on Human Capital Investment is below 85%, it fails every major financial performance standard.

Most companies and their organizations are operating far below that threshold (data analytics – demonstrates it is less than 49%)—and they don’t even know it.

This is a Leadership Blind Spot … That Holds Companies Back Every Month

For decades, leaders have relied on KPI dashboards and financial results to understand performance.

But KPIs and Financial Results alone only tell part of the story—they tell you the outcome, not the workforce capability that produced it.

What gets hidden?

• Team proficiency gaps
• Individual efficiency and effectiveness levels – Research indicates it is less than 40%
• Behavioral strengths and derailers
• Trust barriers between managers and each of their team members
• Skill fit – misalignment
• Underdeveloped leadership behaviors – Management at all levels acting like transactional managers versus leaders

When leaders can’t see the drivers of performance, they can’t fix performance.

What is the Answer … It is not Training, which is also a $98 Billion Problem.

Spending $98 Billion+ Has Become The Problem – Because There Have Been No Measurable Results.

Why Training Alone Isn’t Enough

In 2024, organizations spent $98 billion on training

Yet!!!!       

• Engagement is flat
• Productivity is flat
• Performance ratios aren’t improving
• Too many average or poor performers

The reason has been at the forefront for decades:
Traditional training is not built to measure or close the specific proficiency gaps that prevent monthly high performance.

Training treats everyone the same.

Your workforce team members at all management levels are not the same.

A New Patented Workforce Lens That Changes Everything

This is where Innovation finally catches up with the Outdated Leadership Results Lens

A patented, AI-powered Human Capital Lens now gives leaders a clear view of the efficiency, effectiveness, and proficiency of every manager and their team members.

In less than 45 minutes, leaders receive:

• A measurement of 175 Human Capital Behavior Parameters
• A detailed proficiency analysis for the entire team
• Actionable insights on how to significantly elevate A+, A, and B performer ratios
• Predictive analytics for overachievement
• A roadmap that builds trust—because people trust leaders who truly trust them

This is not a training class.
It is a Leadership Intelligence System designed to make leaders feel proactive and in control, lifting monthly performance and behavior capability, trust, and overachievement results consistently.

Results include:

• Tripling the number of A+ A and B performers
• Productivity increases of 25%
• Engagement Rate Improvement from 32% to 80%
• A leaner, more capable, higher-output workforce
• Consistent monthly overachievement
• Increase current Human Capital – ROI  200% – From 40% to 80%

The Competitive Advantage of Tomorrow

Human Capital is the most significant investment on your income statement.
For every company, it is also the most significant source of untapped profit.

The leaders who outperform in 2026 and beyond will be those who:

• Understand the financial importance of Human Capital ROI
• Replace outdated KPI – only lenses
• Measure the true drivers of Human Capital performance
• Use AI to elevate workforce capability
• Strengthen trust across the organization
• Focus on monthly overachievement—not annual surprises

Leadership Must Change

Performance Expectations are becoming – Human Capital Focused

The Tools Available to Leaders are finally Catching Up.

The Question is no longer, – “Do We Need To Improve?”

The Question should be

“CAN WE AFFORD NOT TO?”

By Peter DiMario CEO and Phyllis Mikolaitis EVP

Research from multiple IDC centers estimated that executives and managers spend 9.6 million hours per week addressing issues that their direct reports should handle, at a cost of more than $385 million annually in lost productivity and misaligned focus.

It is not easy to maintain the team’s focus on executing the Most Valuable Goals, which are the strategic objectives that hold the highest potential for driving business growth, amid the daily work and numerous distractions that get in the way. 

Many teams create impressive strategies and goals on paper, but fail to execute them properly. Our research found the failure is due to a variety of factors, including day-to-day activity choices, bad habits, poor performance behaviors, a lack of knowledge, a lack of accountability, a lack of discipline, and a lack of dedication to the goal.

It is not that they do not want to achieve their goals, but they get pulled in so many different directions, and each item tugging at them appears urgent.

With this new research being uncovered … What is the Root Cause of The Execution Gap?

It is Leadership Focusing Only on Strategy versus Focusing on People … The lack of People focus is the Root Cause of the Execution Gap.

• Leadership Effectiveness: Skills and Knowledge Gap
  • Lack of Leadership Skills – Leadership at every level of management requires a different and mastered people skill set than the skills they acquired in their previous position.
  • This skill set deficiency and lack of knowledge proficiency significantly impact the Leader’s ability to lead the team in execution harmony, leaving team members feeling unsupported, and is one of the main reasons for not achieving planned monthly and quarterly results
  • Failure to be a Role Model – Leadership is not just a position; it’s a responsibility. As a results-driven Leader and steward of your team members’ success, you play a crucial role in shaping their professional business and performance behaviors. You are not just a manager, but a role model. Your ability to be a role model can inspire your team members to be their best every day, which will earn their respect and commitment, ultimately creating a team of engaged, top-performing A+ and A team members.
  • Lack of Ability to Motivate Team Members – A Leader must inspire and motivate the team and each member of the team. Without continually demonstrating this skill, team members miss deadlines, fail to produce quality results, and become disengaged.

Leaders must not only be role models; they are also required to create and maintain a culture of team member passion for the work they produce.

The foundation for this work passion is developing an ongoing positive work environment that delivers monthly overachievement results.  This type of work environment ensures every team member is fully engaged and willing to give their discretionary time to ensure the team exceeds its monthly business objectives

• Lack of High Levels of Trust – When trust is low, teams are not able to engage in business conflict effectively. They will avoid conflict altogether, which results in resentment, unacceptable levels of engagement, low productivity, and higher-than-planned turnover.

You don’t want to impose so many rules that they stifle individuality, personal judgment, innovation, or creativity. You must create and demonstrate high levels of trust while providing responsible freedom to team members in a meaningful way to ensure they are 100% accountable for their actions and overachievement results

• The Destructive Nature of Micromanagement. If the manager directs every detail of how the employee should perform their work, it destroys creativity, erodes trust, and creates disengagement and a desire to leave the company. This destructive practice also demonstrates that the manager does not trust the team member to complete the job as required. Trust, empowerment, and accountability are the keys to a successful team.

Closing the execution gap isn’t about working harder—it’s about working smarter.

Leaders must create the right environment, develop and maintain the precise Human Capital Performance and interpersonal proficiencies, while removing the barriers that pull teams off course.

Summary: It is the Leader’s responsibility to foster a culture of trust and 100% engagement, which are the ingredients for achieving monthly and quarterly overachievement.

Being an overachieving Leader is synonymous with being a Servant Leader who prioritizes the needs of their team members and the organization’s stakeholders.

A Servant Leader focuses on each team member’s continued growth and development, rather than their personal and professional gain. This type of Leadership also creates a people-centered environment that fosters sustained peak performance and monthly overachievement, which underscores the profound impact of effective leadership.

By Peter DiMario and Phyllis Mikolaitis

Every CEO knows that Human Capital is no longer just a line item—it’s the driver of sustained business growth, agility, and profit. But here’s the hard truth: most companies are falling short in unlocking the true power of their people.

According to Gallup’s 2023 Global Workplace Report, only 23% of employees are actively engaged. That translates to $8.8 trillion in lost productivity worldwide—a staggering number that no executive can afford to ignore.

However, this gap in engagement is not all doom and gloom. In fact, it represents one of the greatest untapped opportunities for return on investment.

Why Engagement Is the Game-Changer

Companies with highly engaged teams consistently outperform their competitors. Multiple studies—including research by Gallup and McKinsey—reveal that engaged employees deliver:

• 18% higher productivity
• 23% higher profitability
• 18% increase in sales
• 10% boost in customer satisfaction
• Lower turnover and absenteeism

What are the attributes of an engaged environment? Innovation, connection, enthusiasm, well-being, job mastery, and achievement. Engaged employees bring energy, creativity, and a focused approach to their work. They are aligned with company goals, emotionally invested in outcomes, and committed to excellence.  They don’t just show up – they grow and thrive.

The Leadership and Engagement Connection

So, where does engagement begin? It starts with leadership.

Transformational leaders don’t just make decisions; they develop and shape the organization’s culture and build team connections. Their words and actions influence team member engagement. When leaders communicate clearly, recognize contributions, and connect team members’ work to the organization’s vision and goals, team members become more engaged. It is the responsibility of leadership to develop and promote team member engagement.

At Pinnacle Solutions, we work with executives and leadership teams to build these exact capabilities—ensuring that managers evolve into transformational leaders who inspire, align, and activate their teams.

The Formula for Engagement-Driven ROI

Maintaining team member engagement requires more than just providing recreational activities and free coffee. It’s about building a culture of respect, purpose, and shared accountability. Here are the proven levers we help organizations implement:

1. Strategic Leadership Development
   Train managers to lead with empathy, vision, and behavioral clarity—transforming them into “leadership lightning rods” who elevate team performance.
2. Clear Role Alignment
   Employees must see how their work directly contributes to company goals. Purpose drives performance.
3. Skills & Capability Growth
   Encourage cross-functional collaboration, professional learning, and coaching to boost confidence, competence, and connection.
4. Envisioning Outcomes & Inspiring Overachievement
   Help leaders generate fresh insights, challenge assumptions, and capitalize on emerging trends—creating teams that reach new levels of innovation and execution.
5. Building Trust & Cultivating Responsible Freedom
   Develop a culture where employees are empowered to grow, trusted to act, and accountable for results.
6. Work-Life Integration
   Support balanced workloads and flexible policies that reduce burnout and enhance focus, well-being, and employee retention.
7. Recognition & Reward Systems
   Implement authentic, meaningful, and personalized recognition that motivates, inspires, and reinforces peak performance. This makes employees feel appreciated and valued, which in turn boosts engagement and performance.
8. Creating a Culture of Overachievement
   Build an environment where healthy communication, strong compensation, purposeful work, and strategic direction allow ordinary people to deliver extraordinary results.

 Final Thought

Human Capital Engagement is a strategic asset and essential to the organization’s overall achievement of performance, productivity, and profits.

Organizations that engage their human capital—by developing emotionally connected, high-performing leaders—will thrive in any market. Those who don’t will continue leaking profit, performance, and potential.

Most employees are only productive 60% of the time, and office workers are 31%.
AI—paired with transformational leadership AI technology, and a high-performance culture shift—will drive dramatic gains in productivity, efficiency, and augmented profits.

Productivity is a crucial performance indicator that directly affects a company’s profit levels and the workforce’s monthly output, which is an enormous concern for all organizations.

The 2025 First Quarter report from the U.S. Bureau of Labor Statistics reveals that non-farm productivity increased by only 1.4% from the previous quarter a year ago. Sadly, the average employee in all workforce categories is only productive 60% of the time, and office workers are only productive 31% of the time. The average employee wastes a full workday every week on personal tasks and mobile devices. Work time lost to frequent distractions costs U.S. businesses an estimated $650 billion per year.  This has a negative financial impact on your Human Capital’s Return on Investment (ROI), which is the largest expense on a company’s income statement. This alarming trend underscores the urgent need for a solution.

With these dismal numbers in mind, companies are eagerly exploring AI (Artificial Intelligence) because it holds the potential to revolutionize productivity and efficiency. However, AI requires a leadership team with a clear strategy and communication of an implementation plan that includes comprehensive training.

Organizations must analyze and identify the most effective tools and areas for incorporating AI into their business processes. Research has shown that comprehensive training on AI tools and their use is not just crucial but a key factor in ensuring success. This training is essential for dispelling any employee hesitancy or confusion about AI tools and addressing any fears of job obsolescence. Therefore, it is vital to provide comprehensive training on the capabilities and limitations of AI tools to ensure a smooth transition and successful implementation.

AI implementation also requires a culture change. It is a necessary shift as employees will continue with the same beliefs and actions unless there is a culture change. This change involves providing experiences that alter behaviors, ultimately leading to changes in beliefs and actions that will achieve the desired results.

As artificial intelligence continues to transform the way people work, employees will increasingly need to know how to leverage this technology in their current and future roles. That is why it is crucial to change the culture and ensure that all necessary tools, training, processes, and policies are in place before rushing into implementation.  Research has found that success eludes organizations that enter the AI world unprepared.

Organizations must ensure they have the right AI policies and training in place, as well as the correct software and sufficient computing power, before implementing AI technologies

However, only about six in ten workers (59%) whose employers permit the use of AI feel prepared to use it at work. And about one in four workers (26%)  have employers that do not allow the use of AI or do not have clear AI policies.

An AI Implementation requires leaders with the skill and proficiency to guide each team member as they transform their daily performance behaviors against five ‘Critical Success Factors’ – a customer centric attitude (treat every customer like a guest in your home), strategy alignment, excellence in execution, ongoing personal performance improvement and monthly overachievement. However, it’s not just about AI technology. Organizational leaders must also create a people-centered culture. This cultural shift is crucial as it ensures that management and employees are equipped with the necessary tools and are motivated and engaged to use them effectively.

The Pinnacle Solutions AI-Patented Overachievement Performance Technology is a “Beacon of Hope” in pursuing significant productivity increases. It is a unique system that combines the latest patented performance technology with AI, leadership knowledge, team member competencies, and the human element necessary for a successful implementation. This technology is designed to measure and improve the current state of management and their team members’ competency levels, proficiency, and effectiveness at all levels, comparing them to Pinnacle’s customer-tailored patented science-based leadership and overachievement models. This process leads to significant productivity gains.

Pinnacle Solutions enables your workforce, at all levels of management and their team members, to transition from the ’80/20 Human Capital Performance Rule’ (where only 20% of top performers are present) to the ’20/80 Overachievement Principle’ (where 80% of your managers and team members become top performers).

For example, as you transition from 20% to 30% of top performers, you enter a state of monthly overachievement. When you achieve 40% top performers, the result will be a 25% productivity increase with monthly augmented profit growth of 15% to 25% of a company’s current profit run rate. With this shift in culture, beliefs, and activities, you will be well-prepared to initiate your AI implementation and achieve even greater productivity and efficiency.

The Outcome:

The Pinnacle Solutions AI-Patented Overachievement Performance Technology will substantially impact and improve the positive trajectory of a company’s current profit run rates, supporting significant increases in the value and price of a company’s stock.

Follow us on LinkedIn, and X.com

Do you know what the ROI is on your Human Capital?

If the Answer is No … Why Not?
Do you think your Human Capital is your most important asset?

If you do, understanding how your investment in your employees translates into financial returns is crucial. This is what we refer to as Human Capital ROI.

Human Capital ROI, is a measure that enables you to comprehend the financial impact of your workforce. In simpler terms, it’s a way to determine the financial contributions your employees are contributing to your business every month.

Do you know how your Human Capital’s efficiency and effectiveness rates impact your quarterly profit levels?

Did you know that every company’s quarterly profits are understated and not realized by 30+% due to the low ROI on their Human Capital expenditures?

This significant financial loss should create a sense of urgency to address this crucial issue as soon as possible, since it directly impacts your company’s monthly and quarterly bottom line. However, today, it is a back-burner concern.

Do you know how many profit dollars your company does not realize every month and every quarter? If you Don’t … Why not?

If you consider your Human Capital to be the most important asset in the company, and the largest expenditure on your income statement. What plans are you considering to ensure you do not leave any unrealized quarterly profits on the cutting room floor?

Simply put, your Human Capital is underperforming every month and quarter. This underperformance also causes a negative effect on the customers you serve.

The untold truth is that the ROI on Human Capital in every organization and its teams is currently less than 50%. However, this also means there’s a significant potential for improvement. This potential should inspire hope and optimism in your business’s future growth rate, as it signifies that there are untapped opportunities for your company’s financial performance.

 For example, if you gave the bank a million dollars to invest, you would expect an increase in that investment. If your million dollars were invested in fixed income at a 5% return, the result would be $1,050,000 after one year.

However, if you invested the same million dollars in your Human Capital, your most important asset. In this case, your return on investment for the $1,000,000 is $495,000; in other words, you have lost $505,000 in performance effectiveness, efficiency, and results.

There is no logical business or financial justification for this type of investment. Unfortunately, this is the financial investment you’re experiencing today. For example, Kroger spent $26.3 billion on their Human Capital investments. Kroger’s full-year 2023 ROI on this $26.3 billion investment was only $13.1 billion. This massive investment resulted in a $13.2 billion loss of performance, efficiency, productivity, and financial results.

Understanding the ROI on your Human-Capital is a journey of discovery; that is, understanding what you don’t know and you, as a leader, play a crucial role in it.

The first step is realizing that there are factors you don’t know or understand. Once you acknowledge this lack of understanding, you can now begin to take the appropriate steps to improve and increase the ROI on your Human Capital.           

For example, if Kroger increased their ROI on their Human Capital by a minimum of 5%, it would represent $1.3 billion of incremental profit for FY2023 or a 42% increase in their reported profits.

Lastly, this 42% improvement in profit will substantially impact the company’s earnings per share for its shareholders. By increasing your workforce’s efficiency, effectiveness, and performance capability, you boost your profits and significantly enhance your company’s shareholder value.

REMEMBER …  YOUR HUMAN CAPITAL DEFINES WHO YOU ARE AND      YOUR MONTHLY AND QUARTERLY PERFORMANCE LEVELS!!!

How do you discover what you don’t know? Continue to follow our blogs.

Are You Satisfied with the Monthly Performance of All Your Managers and Their Team Members?

If the Answer is No … Why Not?

By Transitioning Managers into a Unique Performance State, You Will Ensure Ongoing Monthly Overachievement of Your Business Objectives

At Pinnacle Solutions, we know that leadership success isn’t just about having a vision—it’s about executing it with precision, agility, and a deep understanding of a company’s Human Capital Return on Investment – ROI.

Introducing the Pinnacle Solutions Blog, your exclusive gateway to ‘Lightning in a Bottle’ and Cutting-Edge Insights into Leadership, management, and team-member monthly performance excellence. With its unique features and a wealth of knowledge and experience, it’s your go-to resource for leadership execution proficiency and ongoing monthly overachievement.

Over the past two years, Pinnacle Solutions has dedicated extensive resources to researching and thoroughly understanding today’s most pressing leadership performance challenges, and, more importantly, what can be done to address them. This unwavering dedication ensures our expertise and your confidence in our solutions. You can trust that we are committed to providing the best solutions for your leadership challenges.

This effort has led us to refine and perfect our Patented Human Capital — Leadership  Proficiency Quotient (PQ) — AI Performance Technology.

This game-changing approach provides unique Human Capital Intelligence and Predictive Data Analytics, enabling you to significantly augment your monthly and quarterly profits while driving exceptional business outcomes. Our PQ Performance Technology’s unparalleled benefits will not only capture your interest but also leave you excited to learn more. This technology is not just innovative, it’s transformative, and it will change the way you approach leadership performance.

What Makes the AI-Driven Performance PQ Technology a Leadership Breakthrough?

A Transformed Leadership Mindset and Culture of what really can be achieved
 Built for excellence in execution and sustainable, exceptional results.

High-Performance Culture and Mindset Redefined
Is the missing link to ongoing monthly performance overachievement, Leadership excellence at all management levels, ongoing high levels of employee morale, and a customer-centric organization from the CEO to the customer.

Strategic Growth & Market Share Expansion
Aligning all levels of leadership and their team members’ daily behaviors and competencies with a monthly overachievement mindset with your unique and tailored – “Critical Success Factors” (they are not a company’s KPIs, which are lag performance indicators)

At the heart of Pinnacle Solutions is its performance team and executives, Peter Di Mario and Phyllis Mikolaitis, who bring over 25 years of experience in leadership, management, performance capability, call centers. operations, and sales. Their wealth of knowledge and expertise, honed over years of successful leadership roles, ensures the content of our blog is of the highest quality and will provide you with the tools you need to overachieve every month.

Their expertise has shaped and invented the Performance Quotient (PQ) – AI-driven technology, ensuring leaders have the required tools to forge emotional connections with their workforce and achieve high levels of trust, while driving consistent monthly overachievement at every management level.

Follow us on LinkedIn, X, and TikTok