Tag Archives: performance

Nobody is Happy

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“Reggie, when you are barking all the orders, and telling people, if they will just perform to this standard or that standard, they will get an extra bump in their paycheck, where does that place accountability?”

Reggie looked at me for a minute, shook his head, “I’m not sure what you mean, where does that place accountability?”

“Reggie, the reason this is a difficult concept, is that most managers rarely talk about accountability. Back to the question. Where does a bonus system place accountability for performance?”

“I still don’t know what you mean?”

“The manager says, if you perform to this standard, you get an extra $100 in your paycheck this week. What happens to accountability for performance to the standard?”

Reggie was working through this in his head. “Well, the manager has done his job. He defined the performance standard and calculated the bonus, so it’s now on the team member?”

“Not quite,” I said. “The team member now has the choice to perform, or not perform and understands the consequences. If the team member underperforms, $100 of their promised pay will be withheld.

“So, the team member underperforms and does not receive the bonus. They’re okay with it, because, in the end, they didn’t have to work that hard after all. And the manager must be okay with it, because he doesn’t have to pay the $100.

“So the performance standard is not achieved. Who is accountable for the underperformance? Is everybody happy?”

Who Do You Have in Mind?

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The ball lifted off the tee with a wobble before moving sideways from right to left, arching into moderate grass off the fairway. Harvey’s next shot went vertical, over his head, then smack into the turf at his feet.

“Who were you thinking of?” I asked.

“No one. What do you mean? It was just a lousy shot.”

“I mean your second swing. Who were you thinking of?”

“I was just letting off steam. Wasn’t thinking of anyone.”

“If you were thinking of someone, who would it be?”

“I don’t know. I was thinking about the guy who taught me how to play. He would have been a little disappointed.”

“Who is this guy? Do I know him?”

“No, he was a pretty old guy when I learned. And I was only nine years old.”

“I was just curious.”

Kurt Lewin tells us that individual action is a myth. Our behavior is always influenced by groups or individuals, even if they are not physically present. To gain insight into a person’s behavior, all you have to do is find out what group or person the individual has in mind.

Who do you have in mind, that is affecting your swing?

The Difference in Performance

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How many of your team members, do you suppose, drove to work this morning, thinking, “I will come to work today and do a really crappy job?”

Wipe that smirk off of your face, you know it is not true.

What makes the difference in the performance of your team members? Each morning they arrive at work, ready for the day. They could perform well, or they could perform poorly. What makes the difference?

Managers will most often agree on this management challenge: How do I motivate my people? My team seems to suffer from a lack of motivation. If I could just figure out how to motivate my people, everything else would fall in line.

The difference between poor performance, good performance and superior performance is the simple result of a choice. Managers cannot motivate their teams into high performance. Individual team members choose high performance. For every manager, the challenge is to create the circumstances where people most often choose the high road.

The Myth of Results Based Performance

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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)

Judging Effectiveness

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Question:
You often talk about effectiveness. In our company, we measure results. How do you measure effectiveness?

Response:
Effectiveness is a matter of judgment. Effectiveness is a matter of managerial judgment. How well does the team member perform in the achievement of the desired goal? Given all the ins and outs, the difficulties faced, the unanticipated, unplanned monkey wrenches that get in the way, how well does the team member perform?

This is a matter of managerial judgment.

Two assumptions:
1. Any task (or role) requires a certain capability.
2. The person assigned to the task or role has the appropriate capability.

The judgment is whether the person is committing full capability to the task (or role).

This is NOT a “matter of counting outputs, super credits for super outputs, or penalties for lateness or sub-standard quality.” * This is about bringing full capability to the completion of the task.

It is the job of the manager to observe and account for all the surrounding circumstances and make this most important judgment. And it is precisely this judgment that most managers avoid.

*Elliott Jaques, Requisite Organization, 1989.

Getting the Team to Take Accountability

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“So, Reggie, here is my challenge to you. In what way can you get your managers to talk about those behaviors instead of you?”

“But I’m the manager,” Reggie protested. “I thought I was the one to set the direction. I thought I was the one to give the marching orders. I thought it was my responsibility to tell them what to do. It’s my responsibility to manage them.”

“Reggie, people don’t want to be managed. People want to be lead. It is your responsibility to set the direction, but from there, your role becomes leadership. How do you get people to think? How do you get people to consider different alternatives? How do you get people talking?”

Reggie was quick to respond, “That’s easy. You just ask them questions. But I have tried that before and most times, I don’t get any response.”

“And why don’t you get a response. What’s the problem? What’s going on the mind of your team member?”

“Well,” Reggie started, “sometimes they just don’t have anything to say, and sometimes they are afraid to say anything.”

“Where does that fear come from?” I continued.

Reggie stopped. “I guess they don’t want to be wrong.”

“How could you change that? How could you create an environment of trust, where no matter the contribution, it was accepted and valued?”

First, Define the Behavior

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“So, you tell me. What could we do differently to get the behaviors we want that drive the results that we want?” Reggie insisted.

“You already have the first two steps,” I began. “The first thing you did was define the purpose for the program. You said the purpose to keep your managers focused on the company’s goals and to engage in behaviors to create those results.” Reggie nodded his head in agreement.

“Your second step was to communicate those behaviors you identified to drive the results you wanted, right? You did that in your individual KRA meetings.” Reggie continued to nod his head.

“So, if you didn’t have the bonus program, in two cases you would have achieved the results you wanted anyway, three of your managers would not have spent counterproductive time trying to game your gross margin system, and your other two more of your managers would not have become discouraged halfway through the quarter?”

“Okay, I’m with you,” Reggie interrupted. “But, what can I do differently, to make sure I get the behaviors I want?”

“Every week, you sat down with each manager and reviewed the behaviors you wanted, right? And each week, each manager promised to try very hard to do what you talked about, yes?”

“Yes.”

“So, stop talking about it. You stop talking about those behaviors.” Reggie looked puzzled. I continued, “The wrong person is doing all the talking. You stop talking. Your management team need to be talking about this stuff, not you. The first thing that needs to change is who is doing the talking.

“So, Reggie, here is my challenge to you. In what way can you get your management team to talk about those behaviors instead of you?”

Does Bonus Drive Performance?

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“So, tell me Reggie, what exactly were you trying to accomplish with the bonus system? Because that is where we have start our discussion. What was the purpose?” I asked.

“The purpose, well, you know. I want my managers to stay focused, to have the company’s best interest at heart, to take that one more phone call before going home,” Reggie replied.

“And how did you communicate this to each of your managers?”

“Well, once a year, we sit down and look at their job. We break it down into Key Result Areas, then create a goal in each area, for the year. We attach dollars to each of the goals, to be paid quarterly. We are doing it just the way our consultant told us to do it.”

“And what are the results?”

“It’s all over the board. Two managers made most of their KRAs, but I don’t think they did anything special, it just happened. Three other managers did some suspect things to manipulate the numbers into the last quarter, so they got their bonus, but, they didn’t really achieve the goal, it just looked like it. And two other managers, well, they missed their targets, in fact, they quit trying about halfway through the quarter.” Reggie stopped. He didn’t like his own expert opinion on this.

“So, by your assessment, the bonus program achieved results in two cases, but you figure those results would have occurred with or without a bonus program. And in five other cases, the bonus program created manipulation or became a disincentive to performance,” I restated.

“Yes, that’s it. So, you tell me. What could we do differently to get the behaviors we want that drive the results that we want?”

Only Measure of Performance

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“I have a dilemma,” Sylvia explained. “I have a team member who consistently underperforms. And, every time I ask what happened, to try to find out what went wrong, the cause of the project failure, I always get a plausible reason. I understand why the project failed and it’s not this person’s fault. My dilemma is, I have a make or break project that needs to go to this person, but I hesitate to assign it.”

“Is this person competent in completing assigned projects?” I asked.

“Not in completing them,” she defended, “but, there is always a plausible explanation.”

“Do you need the project completed, or do you need an explanation?” I pressed, not waiting for an answer. “It sounds like your team member doesn’t get better at performing. Your team member gets better at explaining why the underperformance is never their fault. Your team member gets better at an explanation that you actually believe. The measure of performance is not an explanation. The only measure of performance is performance.”

Short bow to Lee Thayer, Leadership, Thinking, Being, Doing.

What Were They Thinking?

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“I don’t understand,” Geoff began. “We had a meeting. I explained the new way things were going to be done. A couple of people asked questions. Everyone on the team agreed.”

“And?” I asked.

“And when I took a look at the work today, nothing was changed. It was done the same as before without the changes,” he replied. “I don’t know what they are thinking.”

“If you want to know what someone is thinking, watch what they do. People say and agree to all kinds of things. As a manager, never mistake what someone says for what they can do or will do. Don’t listen for their agreement, watch what they do.”