From the Ask Tom mailbag –
In reference to Judging Effectiveness –

Question:
Lets assume in a given role, the Key Result Areas (KRAs) have been defined. The person is producing the target results in these areas, then, I would say they are capable … what am i missing?

Response:
If I ask a hundred managers if they believe in results-based-performance, they would all raise their hands. They would be wrong. Results are only part of the story.

Effectiveness is NOT a “matter of counting outputs, super credits for super outputs, or penalties for lateness or sub-standard quality.” (Elliott Jaques)

If a salesperson has a target sales quota of 100 units, and brings home an order for 110 units, do we say that salesperson was 110 percent effective? Could it have been that the company has a stellar reputation in the market, on-time delivery through logistics, impeccable customer service (resolved a service problem for that same customer two weeks ago)? Could it be the design of a rebate that put the account into a new discount tier?

Effectiveness is not a matter of counting outputs. Effectiveness is a managerial judgement that takes into account all of the circumstances around the team member’s behavior. Blinders looking only at measured output may lead the manager astray. Output is a clue, but only a clue. The only measure of performance is performance. (Lee Thayer)