Why You Should Measure HOW You Perform

Measuring Performance Doesn‘t Help! Measuring How You Perform Does!!

It is not what you do that matters, but how you do it that does!

by Andrew Cooke, Growth & Profit Solutions

Significant effort, time and resources are spent by companies in assessing the Managing Performance 2current level of performance in order to be able to determine what we need to do to perform at the right level.  This focuses on the result.  This is backward thinking.  This is like managing for profit by measuring your profit.  Profit cannot be improved by managing profit, rather but by improving your revenues and costs.  So it is with performance.

To improve performance you need to understand what the three drivers of performance. Once we do so we can then start to analyse what we need to do to sustain or improve our performance

Andrew’s 3 Drivers of Performance

  1. Right People
  2. Right Tools
  3. Access to the Development of the Skills (Aptitudes) and Behaviours (Attitudes) Needed 3 Drivers of Performance

Right People

You want people who want to work for you, who are able to use their talents in the right role and find gratification and recognition in their work. Their values and approach match those of your business.

Right Tools

People need to have the necessary tools to enable them to do their work and to support them in doing so. For example, an architect needs to have the right software to design and develop buildings, the necessary space

Access to the Development of the Rights Skills & Behaviours

These are probably the most important drivers.  You may have the right people and the right tools, but it is the skills they bring to bear in doing the work, and their attitude they have to how they do their work, that will differentiate how they individually and collectively perform.

  • Skills – people have the necessary skills to do the work, or ability to learn the skills they need to be a high-performer.  This is the what of the work done.
  • Behaviours – this is the how of the work done.

You want people who have high-performing behaviours, that is the way they do their work creates synergies, opportunities and virtuous cycles – for example, they hold themselves accountable for their work, and look to remedy their own mistakes without being told and share lessons learnt with others.. You also want to ensure you don’t have people whose behaviours are those of low-performers (for example, they always find fault in others but never themselves, they are unable or unwilling to learn and develop (especially from their mistakes), they put their self-interests above those of the team etcetera).

Here you need to be able to provide access to the means by which people can develop the right skills for their job as their role and business conditions change, and to have the rights systems in place for recruiting, managing and developing the right behaviours – the high-performing behaviours which drive higher performance.

Next Steps

So stop measuring your performance in terms of what you have done – this is an end-result.  Rather, start measuring how you perform – look at how you have performed (or  failed to) in terms of each of these three factors, and how you can improve each factor both individually and in their interaction with each other.  Only by focusing on how you perform can you improve your performance.’

Look at your performance in terms of each of these three factors in term.  In doing so look at where you are performing now, and determine where you need to perform, and identify several strategies to help you bridge the gap. Look at how each factor interacts with the others, assess the gap in performance, and again identify several ways to bridge the gap. Once you have done this then identify the top three actions from the list you have created which, if you address first, will have the greatest impact on improving your performance.

Good luck and share your experiences here!

Click here to find out more about Andrew Cooke and Growth & Profit Solutions.

3 Ways to Help Change the Perceptions of Others

Perceptions of Business Growth – What is REALLY happening?

by  Andrew Cooke, Growth & Profit Solutions

Is your business growing or not? Do you share the same view as your staff, your manager or your leaders?  How do you know if you do?  This article highlights the differences that exist, examines why they exist, and suggests ways to create a common understanding of the business’ growth potential and opportunity.

ImageA recent Australian study by Leadership Management Australia (June 2012) of over 2000 participants including Leaders, Managers and Non-Managerial Employees highlighted a major problem and disconnect facing business.  The perception as to whether their businesses were growing or not.

The Non-Managerial Employees firmly believed that their businesses were growing (71%) whereas Leaders and Managers have a considerably different outlook – with the belief that growth is declining. Only 47% of Leaders perceived their businesses as growing and 45% of Managers.  So what does this mean for business in dealing with the future?

An individual’s perception of a situation is their reality, no matter what you think.  It is how they ascribe meaning to a situation and is based on their beliefs, feelings, ideas and experience.  As such we are looking at how to overcome a clear difference of opinion and belief. Failure to do so can cause major problems between these groups.

So what can we do?

Firstly, the differences may be due to the time-scale that the respective groups look at the work of the business – employees focusing more on the immediate and short-term, managers for the mid- and short-term, and leaders for the mid- and long-term.  The longer the time-scale that you are working to the greater the level of uncertainty that you need to incorporate into your forecasts and plans.  We need to understand this.

Uncertainty comes from a variety of sources.  Externally to Australia there is growing uncertainty in relation to economic, environmental and even political conditions in a number of countries, whose ripples are being felt on Australia’s shores.  Within Australia there are internal uncertainties including the carbon tax and the mining tax which is exacerbated by a government suffering in the polls.

Secondly, employees need to understand the perspective of managers and leaders.  To do this the leaders and managers need to clearly and consistently communicate what the issues, opportunities and risks are and in doing so create trust.

Trust creates high-performing organisations (HPOs) and helps the business to achieve high revenues, profits and market share than low-performing organisations where trust is low.  These HPOs are also more effective at accomplishing their goals in critical areas including customer loyalty and retention; achieving predictable results; business agility and practicing innovation and creativity.

Thirdly, the business needs to actively engage employees in coping and dealing with these changes and engendering trust.  Key to this is establishing clear priorities and being able to cascade them to people so that they are meaningful, relevant and measurable; and building these priorities into their work creates alignment, traction and results.

To enable the business to grow requires more than leadership and good management.  It requires good communication, developing trust across and throughout the business, and the establishment of a commonly shared and understood perception of the business and its future growth. Creating this enables the business, holistically and at all levels, to engage proactively and develop opportunities and options for business growth.

Do you know how perceptions vary across your business and why?  What perception do you want to create for your business and how will you do it?  Share your ideas, experiences and examples of what has worked and what has not – ask your questions and let’s see what answers we can come up with.

If you found this article of use please Like it (Linked-In), become a Friend (Facebook), Retweet it (Twitter) or RSS it (so you can be notified when new articles appear).  Don’t forget to send it on to your friends, clients or colleagues who might find it of use.

Share

Click here to find out more about Andrew Cooke and Growth & Profit Solutions.

Risks of Conforming, The

Doing things with rigor takes effort, but not everything you put effort into is done with rigor. 

We often look at how hard we work as a measure of the quality of our work. But this is wrong. When you are looking at the quality of the outcomes you or your team produce you need to consider two elements:

  • Effort – how hard you work at getting the work done.
  • Rigor – how well you adhere to the process of getting the work done.

To be efficient and effective in your work you need to be high in terms of both the effort and the rigor which you apply.

An effort is focused on doing the best with the inputs (the tasks), it is about being efficient. Rigour is about focusing on the process of getting the work done, doing it consistently in the manner which has already been determined – this is about being effective.  You need to do both to produce long-term quality work outputs. As you can see in the matrix below the level of rigor and effort you make will largely affect your work outcomes.

The Rigor/Effort Matrix

 

 

 

 

 

 

 

  • Low Effort/Low Rigor – this is the worst situation where people, make little effort in getting the work done and when they do, they tend to do it in an ad hoc manner.  Processes and/or guidelines tend to be ignored, or not followed properly, and the work produced is poor quality, substandard, and costly (especially as work will need to be either redone or people in this quadrant will need a higher level of management oversight).
  • Low Effort/High Rigor – here people, make little effort in getting the work done, however, they do tend to follow the processes/guidelines that are in place.  So, although the work produced is of a suitable quality or standard, the work completed or produced does not meet expectations in terms of what need to be done or which has been planned.  Again this can result in further costs to the business as either more people are required to produce the necessary volumes, or those who are high producers are put under greater pressure as they pick up the slack.  This can lead to them being overworked, stressed and potentially more likely to want to leave for a less stressful job.  This can result in a business losing its best people and retaining the worst.
  • High Effort/Low Rigor – people make a lot of effort but do it in an ad hoc manner.  This can result in a lot of substandard or poor quality work being produced as they do not follow processes or guidelines. This can lead to a lot of waste, rework and may necessitate a lot of investment in quality control to try and manage the symptoms of low rigor.
  • High Effort/High Rigor – here people make a considerable effort, are engaged, and do good work on a consistent basis.  This produces great work for customers, improving customer retention, reducing costs, and improving revenue and profits.

Use this tool to assess where the individuals in your team are.  Assess their level of effort (1=very low, 10-very high), and the level of rigor they demonstrate (1=very low, 10-very high). From this plot them on the chart.

For each individual then determine where you want them to be and identify three actions that they can take that will help them bridge the gap.

So make the effort and be rigorous in doing it! Remember, doing things with rigor takes effort, but not everything you put effort into is done with rigor.

To view or download a PDF version of this blog click here

Share your thoughts and ideas here, or email me at andrew.cooke@business-gps.com.au

If you found this article of use or interest please don’t hesitate to share it with others.

Click here to find out more about Andrew Cooke and Growth & Profit Solutions.

3 Steps to Develop Your Team

Stop-Start-Continue – 3 Steps for Individual & Team Growth

by Andrew Cooke, Growth & Profit Solutions

3 Steps to Develop You and Your Team – Raise Performance, Achieve Outcomes.

Stop-Start-ContinueHow often do you take the time to stop, look at what you are doing and carry out a “self-audit”?  To reach our potential, or to help others to reach theirs, we need to do this periodically.  This can be used in your business, social or personal life.

Stop-Start-Continue 

There are three parts to this process:.

1.   Stop.

What are you doing that you can stop doing or need to stop doing? 

These might be things that you stop doing yourself, delegate to others, or is no longer required. This frees up time which you can utilise in the next two parts.  Time is limited, so make sure you use it on those things that matter, have priority and help you (or others) to grow and develop.

2.   Start.

What do you need to start doing that you are not currently doing? 

What are those things which will help you (or others) to grow, develop and achieve those things that they are looking for.  You can begin to do these things with the time you have freed up in the first step of Stop.

3.   Continue.

What are those things you need to continue doing?

Identify those things which are currently working for you, and which you can improve that will help you realise what you are looking to achieve. How can you leverage these things and the time to do more of them?

What to Do Next?

For yourself, think of three things for each of the three parts – STOP, START and CONTINUE.  Using the template below, especially if you are a leader or a manager in your business then try this to help your team and reports:

  1. Identify what each person should STOP, START and CONTINUE as regards their role and contribution.
  2. Get each person to do the same for themselves.
  3. Meet with each person and get them to share their ideas with you, and share your ideas with them.  This will create engagement, ownership and commitment for team members who are looking to grow and develop successfully.

Stop-Save-Continue Template

Share

Click here to find out more about Andrew Cooke and Growth & Profit Solutions.

3 Steps for Taking Responsibility

Take Responsibility to Gain Momentum

Freeing yourself and others to gain traction and action.

by Andrew Cooke, Growth & Profit Solutions

Take Responsibility

How often have you waited for work or input from someone else in order to get your work done, or to actually start the process.  It’s not your fault you are delayed, but what can you do about it?

In short, the answer is to grow up and take the initiative!

We are inculcated into a culture of blame which, in turn we use to abrogate responsibility and for blaming others – this creates a vicious cycle.  Furthermore, we are afraid of taking the initiative in case we fail, and then how will we look to others.  So we stay there, sitting on our hands, not wanting to take the risk of trying and failing, and worried that we might not look good if we do so; and we are happy to do so, because if we don’t move we can’t do anything wrong.  For some reason we assume that because we have not made a decision, then no decision has been made; we forget that no decision is a decision in itself and has its own set of consequences.

Breaking the Cycle – Taking Responsibility

If you want to things to improve, to overcome inertia and to gain momentum then the responsibility for doing so starts with you.  There is no cavalry charging over the hill to rescue you – they are too busy sitting on their own hands.  You have to take action and be the catalyst regardless of your position or role – you are taking on responsibility and accountability for what needs to be done and yourself.

We all want to work with people who are energized, take the initiative and have drive.  Yet we are surprised when they don’t exhibit these qualities – simply because we fail to exemplify it in what we do and how we behave, and people follow our example.

3 Key Actions To Take

To liberate yourself and others do three things:p

  1. Recognize the difference between fault and responsibility – there is a significant difference between them.  As a leader you may be responsible for a situation, even if you are not at fault – the blame is irrelevant and counter-productive. Fault is backward-looking, and responsibility is forward-looking.
  2. Take ownership – this frees us to take action and drive results.
  3. Own the problem and take action – this helps both ourselves and others; we create a virtuous cycle by providing the necessary avatar for others, and help to unblock their blockages.

So what are you going to do and how will you help your people – your reports, your peers and your bosses? The responsibility for this lies with you.

Share

Click here to find out more about Andrew Cooke and Growth & Profit Solutions.

How to Assess Potential High-Flyers

How to determine and assess future leaders, and where and how to focus your efforts in their development.

You are looking to develop future leaders for your business. How can you do this so that you can consistently evaluate them across the board? What is more important when you evaluate them – their past performance or their future potential? It isn’t an either/or question. You need to understand both their past performance, and to identify their future potential. This is where the Performance/Potential Matrix comes to hand.

Performance/Potential Matrix Overview

This consists of a 3×3 matrix contrasting the two elements:

  • Performance – this is the extent to which the person achieved their objectives (“the What”) and the extent to which they demonstrated the appropriate leadership behaviors. (“the How”).
  • Potential – this is a person’s capacity to be a top performer in a more senior role.

By assessing where an individual sits on each of these two axes you are able to determine two factors:

  • Where they currently sit as you and/or others perceive each individual;
  • With whom to focus your efforts and where (performance and/or potential)

An example of how each of the 9 grids can be labelled is shown below. In doing this the matrix provides a simple and effective tool by which to calibrate criteria and expectations, and acts as a diagnostic tool for development. As such its real value is in being a catalyst for robust dialogue and it facilitates shared ownership rather than one person’s opinion.

Headings

  • Red Headings – people in these grids are likely not to be retained
  • Grey Headings – these people are unlikely to progress futher, but given their level of performance may be best suited in develping further in their existing field
  • Yellow Headings – these people may develop further, but need attention and resources to help them develop. If they do not develop further, or sufficiently, they may slip into a red or grey box.
  • Green Headings – people with real potential who should be in the firs tier for leadership development.

Common Pitfalls to Using the Performance-Potential Matrix

  • Misunderstanding high-potentials – there are misconceptions about the term “high- potential.” People use the term to talk about all top talent, as opposed to talent with the potential to become leaders. It can be difficult for managers to assess “promotability”. Often most managers are subconsciously thinking, ‘Do they remind me of me?’ “
  • Using the tool for individual assessment. – the matrix is not designed for individual assessment, you need to be able to compare different people. Without comparison, it enables neither valid assessment nor career decisions about an individual.
  • Expecting too much. – the matrix is only one tool. You need to ensure that you use other mechanism with more data e.g. 360-degree reviews.
  • Using quotas for each box don’t try to allocate people by quote, you need to reach a common understanding and agreement where each person should be realistically placed.
  • Failing to include change management – when using it you need to engage peope so they understand it and buy-in to the approach and understand what the benefits are for employees and the organization.
  • Overcomplicating the process – don’t try to make the matrix more complex, the effort will usually not add significant insight or value.
  • Failing to differentiate between employees – once you have identified the stars and top performers, you need to direct resources towards developing them—higher salaries, plum work assignments, mentorships with executives, exceptional training opportunities and coveted job rotations—to retain them and develop their talent.

Benefits of the Performance-Potential Matrix

  • It allows managers to use the matrix to assess their people and calibrate them between the leaders.
  • Assists in the creation of meaningful, accountable development plans.
  • Allows you to aggregate relative comparisons between talent.
  • Stimulates discussion and constructive debate, and creating a shared and common understanding.
  • The accuracy of assessing performance and potential improves with multiple perspectives. Managers often have blind spots with their own employees, and are

unaware of how they are perceived by others. These discussions can help shine a light on superstars and poor performers.

  • Creates collective responsibility for the team in building a stronger organization. It encourages everyone to be candid, to listen to each other, and to develop each other’s employees.
  • It uncovers both individual and organizational strengths and weaknesses. As such the matrix serves as a needs assessment for development actions that need to be taken
  • Helps managers and leaders to assess potential which they normally struggle to do.

Next Steps

Work with your peers and use this tool to review your employees to identify your prospective leaders. Try looking at the people by yourself, then share your ideas, insights and reasonings with your peers to create insights, ideas and a common perspective. Use this to stimulate debate, and look to use other tools and means by which to identify the prospective leaders.

To view or download a PDF version of this blog click here.

Share your thoughts and ideas here, or email me at andrew.cooke@business-gps.com.au

If you found this article of use or interest please don’t hesitate to share it with others.

Click here to find out more about Andrew Cooke and Growth & Profit Solutions.

How to Motivate Your Team More Effectively

A different approach that produced results

Do you struggle to motivate your team? Could your team be more productive and more effective? Do you have people who are not performing to their potential? If so, then you are not alone. Like many other leaders, great and small, you are making the same mistake: assuming that the answer to these questions lies with others (your team), when in fact it lies with you (the leader).

The problem is that our normal reaction is to see this as a problem. Firstly, the way we are biologically geared to think is that we look out for potential threats and to move away from them strongly. At the same time, we are less prone to looking for the rewards or upside, and we are also naturally less likely to move towards them.

This underpins our natural tendency to be loss-averse – we would rather avoid a loss than making an equivalent gain.

Secondly, the problem is that we tend to judge ourselves by our actions and to judge others by their behavior. So, if the team is not performing we attribute the poor performance to their behavior and attitude.

Thirdly, what you focus on expands – this is important as it affects your confidence, and confidence is the number one variable affecting a person’s performance. Think about it – if a person focuses on her shortcomings, her confidence will naturally be low. Whereas if she can get herself more focused on what she is doing well, her confidence will improve, thus leading to increased ability and potential on other tasks and activities. People with high confidence are much more coachable, and they make improvements much more efficiently.

Let me share a story about a sales manager; let’s call him David, who lead a team of ten salespeople.  He was suffering a two-pronged problem: firstly, he was struggling to find ways to motivate his team and, secondly, he was receiving complaints that he wasn’t recognizing his team’s contribution (both on an individual and a collective basis) to the company.

When asked how often he was recognizing things that the individuals on his team were doing well, he responded, “Whenever they do something well, I give them positive feedback. The problem is that they don’t often do what I need them to do.” He went on to say, “If they were performing better, I would recognize it. There are still so many problems with the way they are doing things.”

Obviously there is a disconnect between the expectations of David and his team. His team feels they should be recognized more, and David feels they should be doing more to earn the recognition. The reality is that both sides are probably correct. Being correct in this situation, unfortunately, does nothing for the productivity of the team.

David is reacting like any normal, rational human by expecting that his team actually do great work to be recognized for doing great work. The problem is that promoting the maximum effectiveness of his team requires him to think abnormally. Expectancy theory states, that which you focus on expands. If David continues to do what is normal and focus on the negative, there will be more negative. However, if he can re-focus himself and his team onto what is being done well, the positive will expand.

Expectancy theory is powerful because of the role it plays on confidence. Research confirms that confidence is the number one variable affecting a person’s performance. Think about it – if a person allows his mind to focus on the shortcomings, confidence will naturally be low. Whereas if he can get himself more focused on what he is doing well, confidence will improve, thus leading to increased ability and potential on other tasks and activities. People with high confidence are much more coachable, and they make improvements much more efficiently.

“Normal” Thought Processes

People have a problem-centric approach, which is we tend to recognize the problems in a situation first. Again, this is the normal course of thought for people. When faced with good and bad aspects of a situation, the bad aspects stand out like a sore thumb, while the good are harder to identify. This comes in handy when we need to identify the speeding car plowing through a red light or the bear running at us through the trees, but when it comes to leadership, this norm can be devastating to a team’s productivity.

David sees his team as having a lot of work to do to earn more recognition. He sees where they are falling short, which, in his mind, does not warrant much positive feedback. In his mind, the focus of his team needs to be on where they should be making improvements. He naturally sees and focuses on what is not working well.

“Abnormal” Thought Processes

With David, he started making a conscious effort to recognize at least one “done-well” for a member of his team every day. Instead of waiting for something to stand out to him, he would need to put in the effort to look for it in order to reach his daily quota. At first he was reluctant because he felt that he would be “celebrating mediocrity,” but what he found was that his team started to gradually perform better and better. Eventually, they were doing things that David actually found worthy of recognizing. It became easier for him to find things to celebrate.

Set a reminder either in your phone or in your calendar to recognize one “done-well” per day. It is important to schedule these recognitions because, again, they will not come naturally to you. It is abnormal to have a constant radar for “what is working well” because your radar is naturally set to “what is not working well.” It will take conscious effort to overcome this tendency. Your team will feel valued, and their work will start to reflect this.

A focus on what people are doing well results in people doing even more things well. This is a snowball effect that great leaders absolutely use to their advantage.

We grow best by building on our strengths, not by constantly trying to correct our “weaknesses.” That’s the essence of positive psychology. Yet the overwhelming feedback we receive – even when solicited – is about correcting some failing. Often we take the feedback to heart, and we spend a lot of time and effort trying to figure where we went wrong. But should we? Do you really have a problem?

So what can we learn from this?  There are three things.  Firstly, good performance by a leader requires good performance by the team; however, the reverse – good team performance means you have a good leader – is not necessarily true.Secondly, a leader cannot motivate anyone else but himself or herself. All the leader can do is create an environment in which people can easily motivate and align themselves in achieving the goals. Finally, the more time we spend trying to get our team to “correct” what we deem inadequate, the less time they have to invest in exploiting their own significant potential.

To view or download a PDF version of this blog click here.

Share your thoughts and ideas here, or email me at andrew.cooke@business-gps.com.au

If you found this article of use or interest please don’t hesitate to share it with others.

Click here to find out more about Andrew Cooke and Growth & Profit Solutions.