The corporate energy diagram depicts the process of conversion through three lenses of corporate functioning – direction, organization and people. In a high performance company, the efficiency of energy transmission and conversion involves minimum energy wastage and dissipation. In addition, the very process of transmission magnifies the energy entering each lens, which is exactly what happens when inspired leadership, good strategic planning, smooth running systems, freedom for innovation and initiative, open communications, and excellent training programs generate and release additional energy. In this case new ideas and initiatives gain energy and momentum as they move through the organization, the way a great new product gains popularity as more and more people purchase and use it and word of mouth spreads lightning fast through the marketplace.

The corporate energy conversion diagram depicts the ideal state. It looks great on paper but I have never found that it matches the reality found within a company. The actual situation is usually quite messy. Even in companies with high energy, clear goals, well-defined values, elaborate plans, well-developed structures, finely-tuned systems, continuous training and high morale, the actual level of energy conversion is far from optimal. In companies that are rapidly growing the spillover and wastage of energy arising from the inadequacy of standards, structures, systems and skills can be visibly perceived. In older companies that have lost their youthful inspiration, clear identity and direction, where organization has become bureaucratic and lethargic, and people have become complacent or disenchanted, the latent energy that is dissipated will be equally great but less easily perceived on the surface, because it never gets released in the first place. Either way the scope for dramatic improvements in performance is very great.