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Archive for the ‘Performance Standards’ Category

Six Key Benefits of Performance Management

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evaluation

Managers are inundated with a high volume of information and required to make multiple decisions daily. It is often difficult to be fair and consistent in decisions when the manager is operating on a reactive rather than proactive basis.

Performance management gives managers a specific set of parameters to make decisions and act in an active rather than passive mode. This allows them to take the initiative by making quick and effective decisions that positively impact their unit’s efficiency, profitability and overall performance.

Managers who utilize an effective performance management process and program will find that rather than complicate their lives, their jobs are made much easier. Decision-making is greatly simplified by performance management, as it provides a specific set of established parameters with which to make consistent and focused decisions that move the unit forward to the achievement of its goals. These parameters include:

Alignment of Goals and Objectives

The overall purpose of performance management is the alignment of unit/department goals and activities with the overall goals and objectives of the company.

The role of the manager is to ensure that all goals and activities of his or her individual employees directly contribute to the overall success of the unit. In this capacity, the manager establishes the individual goals and targets to assure that the overall objectives are obtained. Once this has been accomplished, any decisions to be made regarding the performance of individual employees must be made with each of their goals in mind. Managers are able to make decisions to ensure that every action and activity an employee makes advances him or her toward the accomplishment of their unit’s goals.

This decision-making parameter prevents individual employees from becoming “loose cannons,” ignoring their unit and company goals and performing in a way they view as expedient. It keeps the employees in line and focused. It also allows managers to fairly and consistently manage and evaluate individual performance against overall team goals.

Focus on the Target Market

Most corporate goals and objectives are designed to move a company forward, while maximizing the utilization of human and physical resources to enhance productivity, efficiency and profitability. In this pursuit, companies are increasingly gearing specific products and services to profitable niche markets where they can gain a competitive advantage.

The use of performance management techniques allows managers to redefine or refine the target market so that it is aligned with the objectives established by senior management. As a decision-making parameter, managers can guide and direct employees through plans to better focus their efforts on these intended niche markets.

As markets are increasingly more competitive, rapid changes and shifts in marketing strategies are often required. The use of performance management criteria allows managers to shift their people’s focus and ensure all decisions they make are consistent with this impetus.

Guidance

The company’s mission statement, goals and objectives provide guidance to the manager and the basis for their performance management program. Additionally, these provide managers with specific parameters with which to guide and direct their own actions and those of their employees, while also giving them the guidance they need when making decisions. There will be times when senior management may need to clarify issues and concerns, but the progression of goals and objectives should flow smoothly from senior management to the individual employee.

Benchmarks for Performance

One of the keystones of performance management is the ability to benchmark the individual work of each employee. These provide managers with the tools to monitor and evaluate performance as well as the basis for any decisions and actions that must be made.

The specific performance of an employee influences all decisions a manager makes concerning that individual. An employee performing at a high level will be given more leeway in the decisions made about him or her since results are being produced. A poorly performing individual will have more stringent decisions made about him or her.

Pinpointing Performance Problems

The use of specific metrics in a performance management program allows managers to make decisions regarding performance breakdowns. Initially, it allows the manager to pinpoint problems and take the proper corrective actions to immediately rectify them before they become a major issue.

Providing Focused Feedback

Performance management allows managers to make decisions and focus their feedback on issues directly related to the achievement of the individual employees goals and objectives. Any other issues distracting the employee that don’t contribute to the unit or department’s performance can be quickly and effectively handled and eliminated.

Excerpt: Performance Management: Pinpoint Management Skill Development Training Series (Majorium Business Press, Stevens Point, WI 2011)

Related:

Five Critical Steps to Maximize Performance

Execution: Six Action Steps

Performance Plans Create Results and Maximizes Performance

Objectives Allow Managers to Focus on Obtaining Results

For Additional Information the Author Recommends the Following Books:

Planning to Maximize Performance: Pinpoint Leadership Skill Development Training Series

Maximizing Financial Performance: Pinpoint Leadership Skill Development Training Series

Improving Workplace Interaction: Pinpoint Leadership Skill Development Training Series

Timothy F. Bednarz, Ph.D. | Author | Publisher | Majorium Business Press
Author of Great! What Makes Leaders Great: What They Did, How They Did It and What You Can Learn From It (Finalist – 2011 Foreword Reviews‘ Book of the Year)
Linkedin | Facebook | Twitter | Web| Blog | Catalog |800.654.4935 | 715.342.1018

Copyright © 2013 Timothy F. Bednarz, All Rights Reserved

Anticipating and Handling Employee Fears of Change

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fearfulman

Before managers can successfully lead their organizational units through a transformational change, they must overcome existing general fears and negative attitudes. Most of these fears and attitudes have been formed over the past two decades by actions and decisions organizations have made that have detrimentally affected individual employees.

From the 1980s on, businesses have faced the greatest overall restructuring since the Industrial Revolution. The depth and scope of this restructuring has been painful. Many employees have experienced downsizing, layoffs and a host of management fads, including the chaos, uncertainty and heightened frustration of reengineering. The methods used often resulted in covering and masking a number of management actions and mistakes.

Pain was further increased by the visible unfairness and callousness of many employee layoffs. The result left for managers to deal with is an employee mindset that translates into a lack of willingness to contribute personal initiative and productive work. This reflects itself in less effective teaming efforts and a lower output of quality decisions and products, as well as decreasing the loyalty leaders require from their unit members to lead their organization through the ongoing transformational process.

This is important for managers to grasp because organizations competing in the twenty-first century need the willing help and assistance of intelligent, motivated, collaborative and enterprising employees. This presents leaders with a real challenge: they must first work with their employees to overcome the problems and sentiments of past organizational actions before moving forward into an active transformation. Organizational stakeholders and investors who want to see increased results and overall improvement further complicate the process.

The International Survey Research Corporation, which tracks employee satisfaction for Fortune 1000 companies, reported that since 1989 employees:

  • Feel that management fails to provide clear direction.
  • Do not believe what management says.
  • Are less sure about keeping their jobs.
  • Worry about their company’s future.
  • Fear being laid off.
  • Feel overall morale is lower.

These facts frame the starting point defining where many leaders find themselves in the face of transformational change in their organizations. While time heals all wounds, most managers do not have this luxury in the face of the chaotic events and issues.

The most practical answer to overcoming these fears and attitudes is increasing employee empowerment. However, this is not likely to work without the total commitment of everyone holding a leadership position. Leadership can come from the ranks of senior managers or from organizational unit and team leaders. Any major transition will not work without a commitment from each level.

In addition to employee empowerment, managers need to establish working teams to tackle ongoing problems and concerns. It is better to establish multiple teams than to create one involving every employee in the organizational unit; the best workable size is between five and six members. In many instances, teams can work on the same problems. This furnishes a method of developing multiple solutions and alternatives. A collaborative team can be established to select the best solution and then assign specific aspects of it to each team to address and implement.

Employing a team approach demands specific leadership skills, including:

  • Goal setting
  • Planning
  • Effective follow up procedures

If managers fail to develop one of these three skills or eliminate them from their leadership contributions, the team will break down.

Managers furthermore cannot assume that if they simply form a team, participants will decipher what needs to be done and how things need to be accomplished. They must train unit members in working together in teams, focusing on the important issues, dealing with other teammates, and getting results.

In order for this training to be successful, managers must make sure the following team elements are adhered to, including:

  • Clarity of goals
  • Good communications
  • Effective dissemination of business objectives so the team understands how it fits into the general business plan
  • An effective process to guide and direct the actions of the team

While empowerment and an effective team approach will not immediately resolve many of the nagging employee problems and attitudes a manager must actively deal with, it does establish a foundation for improved performance and participation. As leaders initially start the process, they will need to develop strategies to cope with and address the emotional baggage issues brought to the table by their employees. They must allow the venting of frustrations and criticisms, then eliminate each of these issues in turn until full participation is achieved.

Excerpt: Facilitating Change: Pinpoint Leadership Skill Development Training Series (Majorium Business Press, Stevens Point, WI 2011) $ 17.95 USD

Related:

Managing Change: The Transition From Chaos to Order

Barriers to Integrating Change

When the Process of Change Spins Out of Control

Managers as Facilitators of Change

Timothy F. Bednarz, Ph.D. | Author | Publisher | Majorium Business Press
Author of Great! What Makes Leaders Great: What They Did, How They Did It and What You Can Learn From It (Finalist – 2011 Foreword Reviews‘ Book of the Year)
Linkedin | Facebook | Twitter | Web| Blog | Catalog |800.654.4935 | 715.342.1018

Copyright © 2013 Timothy F. Bednarz, All Rights Reserved

Leadership Removes Barriers to Performance

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peoplemeeting

An effective performance management platform has specific overall outcomes that leaders need to achieve if they are to be successful. In the traditional bureaucratic organization, these programs are often meaningless. However, within the empowered organization, an effective performance management program efficiently moves the organization forward.

As a performance management program is developed and implemented, the role of the leader becomes increasingly important as they grow in their personal abilities. This means that true leadership capabilities must emerge in crafting clear and understandable goals for employees as well as developing simple but effective plans for the organization to follow.

This is important for leaders to understand because true leadership that removes barriers to performance, demands proactive involvement and interaction. As leaders mature in their responsibilities, they take their roles more seriously, and develop the self-confidence to stretch both themselves and their employees to higher levels of productivity and success. By challenging the old political bureaucracies that hinder performance and overall success they become leaders in the truest sense of the word.

The essence of performance standard development within the empowered organization is to reach the point where employees direct and evaluate their own performance. The role of the leader is to help the employee reach mutually agreeable goals and standards to measure progress toward those goals. Once this is achieved the leader provides them the direction and information the employee needs to assess their individual performance against their goals.

Once this state is reached within the organization, several positive outcomes are created that assist both the organization and its leaders. These are:

Simplicity

Simplicity is the ally of the true leader and complexity the favorite tool of traditional bureaucratic organizations. Leaders must take the responsibility of simplifying their organizations. The more straightforward an organizational structure they can create, the more effective it will be.

As performance standards are established for individual employees, an understanding should be reached as to how their work and contributions fit into the organization. Employees should know they are not performing a mindless task, but one that adds value to the overall output and outcomes of the entire organization. When employees see that what they do counts and the clear connection between their job and organizational success, it removes much of the clutter and interference that hampers decision making. This simplifies the process the organization must undergo to enhance performance and productivity.

Self-Confidence

For the leader, the process allows them to create simple plans with clear targets and objectives. It allows them to communicate more easily with their employees because they understand the connection between their contributions and the organization’s success.

When levels of simplicity are achieved within the organization, many barriers are removed and cooperation between leaders and employees is enhanced. All understand the results that must be achieved and why they are important. Additionally, when the entire process is simplified, plans are easily implemented and are more effective. The barriers of complexity traditionally in place within a bureaucratic organization are removed. The more success attained by leaders, employees and the organization, the more self-confidence is established that allows all to reach for more ambitious goals and objectives.

As in a cohesive organizational unit, everyone is accountable to everyone else within the unit, the performance of all leaders and employees is clear to all parties. This minimizes excuses and wastes less time, financial and operational resources.

Speed

The impact of both simplicity and self-confidence has an overall impact on the speed in which the organization operates. Within the empowered organization, leaders and employees have an established and mutually agreeable clear purpose. All understand the ramifications of hesitancy in today’s competitive global markets.

The overarching goal of performance planning and implementation within the empowered organization is to increase the speed of all internal processes from production to marketing to overall management. When leaders are successful in establishing clear and understandable goals, simple plans and self-directing evaluation, the barriers to decision making and overall output are effectively removed. This allows the organization to react more quickly and nimbly to the forces of change as well as ongoing competitive pressures.

Excerpt: Strengthening Leadership Performance: Pinpoint Leadership Skill Development Training Series (Majorium Business Press, Stevens Point, WI 2011) $ 18.95 USD

Related:

Five Critical Steps to Maximize Performance

Execution: Six Action Steps

Performance Plans Create Results and Maximizes Performance

Objectives Allow Managers to Focus on Obtaining Results

For Additional Information the Author Recommends the Following Books:

Performance Management: The Pinpoint Management Skill Development Training Series

Planning to Maximize Performance: Pinpoint Leadership Skill Development Training Series

Maximizing Financial Performance: Pinpoint Leadership Skill Development Training Series

Improving Workplace Interaction: Pinpoint Leadership Skill Development Training Series

Timothy F. Bednarz, Ph.D. | Author | Publisher | Majorium Business Press
Author of Great! What Makes Leaders Great: What They Did, How They Did It and What You Can Learn From It (Finalist – 2011 Foreword Reviews‘ Book of the Year)
Linkedin | Facebook | Twitter | Web| Blog | Catalog |800.654.4935 | 715.342.1018

Copyright © 2013 Timothy F. Bednarz, All Rights Reserved

Performance Management Must Begin With the Manager

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The concept of performance management allows managers to align the actions and activities of their employees with the goals and objectives of senior management in order to achieve the stated outcomes of the company.

It is this linkage that allows each individual employee to work toward the accomplishment of mutual goals and objectives.

Many managers make the common mistake of assuming that because they understand the goals and objectives assigned to them, everyone else does as well. This is often where many performance problems occur, as in terms of thinking and action there is a gap between what was planned as an overall company goal and what the unit or department is actually doing. The company might have established a specific goal while employees are working in a fashion wholly unrelated to that goal, which will assure that it is not met.

Managers are the liaison between senior leadership and their people. Often there is no sense of connection between a company’s goals and the actions of individual employees. They continue to perform in their usual fashion without achieving the desired outcomes stated by upper management. The role of the manager is to align the actions of his or her employees with the goals and objectives of the company.

Effective performance management must begin with the manager. Before they can communicate the goals and objectives of management, he or she must clearly understand both what is desired and the means to achieve it. Unless this information is clearly communicated to the manager and he or she comprehends and understands what is desired, there will be a gap in the system that will result in deficient results.

The problem is that in many organizations there is too great a disparity between plans and results. Many employees and managers develop annual plans and then ignore them during the course of the year; there is no actual implementation. They are instead an exercise that management requires, without any real utility or connection to day-to-day work.

Before managers can manage the performance of their people, they must personally commit to it and the results they wish to achieve. Once they have done so, they can then focus their efforts in the following areas:

Clarifying Goals

Managers must take the time to create a two-way dialogue with their people and clearly communicate the company’s goals to them. Employees should be encouraged to question, challenge, interpret and clarify these goals in their minds. This process gives them ownership of the goals, which makes them more concrete and meaningful and increases the likelihood they will be accomplished.

Discussing Ways to Meet Goals

Once employees understand the individual company goals and objectives, managers should discuss the specific ways they can meet them.

These discussions should be detailed and explicit in order to align employees’ strategies and plans with the company goals. Managers should specify the precise changes employees have to make to align their individual behaviors and activities with the company goals.

Employees should be informed of what is now expected of them and how they are expected to meet those expectations. As goals were clarified through encouraging questioning, challenging and interpreting, similar brainstorming should be encouraged to determine the best ways to achieve company goals and objectives.

Following Through to Align Behaviors with Outcomes

The critical link in performance management is the manager’s commitment to follow through with each individual employee to ensure that their work is aligned with the stated outcomes outlined in the company’s goals and objectives. This is where many performance management programs fall short: goals and methodologies are discussed with the unit or department, but individual employees are allowed to backslide into old habits that hinder achieving the company’s goals.

Managers follow through by first observing each individual employee’s professional behavior, discussing the results he or she is achieving, and supporting their efforts with additional training and coaching to keep them on focus.

Excerpt: Performance Management: The Pinpoint Management Skill Development Training Series (Majorium Business Press, Stevens Point, WI 2011) $ 18.95 USD

Related:

Five Critical Steps to Maximize Performance

Focusing Employees on Common Goals

Plans Must Be Rooted in Past Performance

Focusing Your Employees on Future Performance

For Additional Information the Author Recommends the Following Books:

Strengthening Performance: Pinpoint Management Skill Development Training Series

Planning to Maximize Performance: Pinpoint Management Skill Development Training Series

Maximizing Financial Performance: Pinpoint Leadership Skill Development Training Series

Timothy F. Bednarz, Ph.D. | Author | Publisher | Majorium Business Press
Author of Great! What Makes Leaders Great: What They Did, How They Did It and What You Can Learn From It (Finalist – 2011 Foreword Reviews‘ Book of the Year)
Linkedin | Facebook | Twitter | Web| Blog | Catalog |800.654.4935 | 715.342.1018

Copyright © 2013 Timothy F. Bednarz, All Rights Reserved

Leaders focus on enhancing the customer’s ‘experience’

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Across the broad spectrum of products, services and industries, and the span of over 200 years, the great leaders shared a mutual focus to greatly enhance their customer’s “experience.” This incorporated the concept of “ruthless efficiency” to drive down costs, improve quality and increase efficiencies through innovation and continuous improvement. This resulted in better products at lower costs. This generated their record of growth and success through the practice of overwhelming and eliminating their competition, who couldn’t match their performance.

Edward Harriman (Union Pacific) illustrated this attitude.

“Walking some Southern Pacific track one day with one of his finest officers, Julius Kruttschnitt, Harriman’s restless eye seized on one of the bolts holding a rail in place. ‘Why does so much of that bolt protrude beyond the nut?’ he asked abruptly.

‘It is the size that is generally used,’ replied Kruttschnitt.

‘Why should we use a bolt of such a length that a part of it is useless?’ persisted Harriman.

‘Well,’ admitted Kruttschnitt, ‘When you come right down to it, there is no reason.’

After walking a bit farther, Harriman stopped suddenly and asked, ‘How many track bolts are there in a mile of track?’

Kruttschnitt did a quick calculation and ventured a figure. ‘Well,’ snapped Harriman, ‘in the Union Pacific and Southern Pacific we have about eighteen thousand miles of track and there must be some fifty million bolts in our system. If you can cut an ounce off from every bolt, you will save fifty million ounces of iron, and that is something worthwhile.

Change your bolt standard.’” [1]

Contrary to today’s focus on shareholder value, the great leaders attributed their success to the maintenance of a fanatical focus on the well being of their customers. The customer is the key constituency and is placed first, even at the expense of the stockholders.

Common sense told them that before profits there needed to be sales. And happy customers generated sales. Any actions that diminished the customer experience would be detrimental to the health of their businesses. Jeff Bezos (Amazon) stated,

“Customers want three things; the best selection, the lowest prices, and the cheapest and most-convenient delivery. At Amazon, all decisions flow from those fundamentals.”

When leaders lose their focus on building their business, and maintain a balance with their constituencies, their professional credibility suffers. Many who attain prominent positions are faced with numerous temptations, which come with the trappings of power. These can become the impetus that destroys their credibility and in certain instances, their careers.

Focusing on the attainment of their personal agenda, including prominence, personal notoriety, and popularity often tops the list of problematic behaviors. Some leaders are enamored with politics and the possibility of political office, while others are consumed with personal interests and activities.

Carly Fiorina (Hewlett-Packard) fell into this trap as she was accused of acting like a rock star during her tenure as CEO. “Some critics said she became caught up in high-level strategy and high-profile marketing events to create buzz (such as appearing on stage at a trade show with pop singer Gwen Stefani a month before her firing), rather than homing in on the nitty-gritty operational issues…” [2]

James Cayne (Bear Stearns) was participating at a championship bridge tournament as his company faced imminent financial collapse in 2007. He was later accused of being more focused on his bridge activities than his company in the critical period leading up to the financial disaster.

“On July 12, chatting with visitors over lunch, Mr. Cayne seemed less interested in discussing the markets than in talking about a breakfast-cereal allergy and his stash of unlabeled Cuban cigars. On another occasion, he told a visitor he pays $140 apiece for the cigars, keeping them in a humidor under his desk. Five days later managers of both funds informed investors their holdings were virtually worthless.” [3]

Undoubtedly, many problematic leaders feel if their companies are performing well, they are free to pursue their own interests. In the case of Carly Fiorina, her personal focus was transparent and she was severely criticized in the press and in the company. This undermined her credibility, which ultimately led to the loss of her validity, and authority to lead. Her actions alienated her constituencies, who ultimately abandoned her when she needed them. She lost her professional credibility.

“CEOs can grow arrogant. They stop listening to trusted advisors and begin to breed negative energy, reflecting that back on the company. ‘Roger Smith became shorthand for a generation of managerial puppetry,’ says Jeffrey Sonnenfeld, president of the Chief Executive Leadership Institute and an associate dean at the Yale School of Management.

To be sure, when highly visible CEOs make bad decisions or fail entirely, their companies suffer as well. ‘Personal actions, such as political decisions, take on more weight,’ says Peter H. Coors (Coors) ‘What we might do personally would have an impact on the company.’” [4]

P.T. Barnum (Barnum & Bailey Circus) offered sound advice, which is just as applicable today as it was then, when he said,

“Engage in one kind of business only, and stick to it faithfully until you succeed… When a man’s undivided attention is centered on one object, his mind will constantly be suggesting improvements of value… There is good sense in the old caution against having too many irons in the fire at once.”

References:

  1. Klein, Maury, The Change Makers (Henry Holt and Company, New York, 2003) p 128-129
  2. Zapler Mike, Analysts: Carly Fiorina Long on Vision, Fell Short on Execution at HP (Oakland Tribune) April 21, 2010
  3. Kelly, Kate, Bear CEO’s Handling of Crisis Raises Issues (The Wall Street Journal) November 1, 2007
  4. Benezra, Karen and Gilbert, Jennifer, The CEO as Brand — Their Names Are Synonymous With Their Companies’ Products — And That Presents A Slew of Unique Challenges (Chief Executive) January 1. 2002

For more information on this topic, refer to Great! What Makes Leaders Great: What They Did, How They Did It and What You Can Learn From It by Timothy F. Bednarz (Majorium Business Press, Stevens Point, WI 2011).

Timothy F. Bednarz, Ph.D. | Author | Publisher | Majorium Business Press
Author of Great! What Makes Leaders Great: What They Did, How They Did It and What You Can Learn From It (Finalist – 2011 Foreword Reviews‘ Book of the Year)
Linkedin | Facebook | Twitter | Web| Blog | Catalog |800.654.4935 | 715.342.1018

Copyright © 2012 Timothy F. Bednarz, All Rights Reserved

Focusing Employees on Common Goals

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The overarching principle behind organizational development is that all employees have a wealth of knowledge and experience that can be harnessed and tapped into to enable the organization to grow. Managers are the organization’s primary facilitators of knowledge and experience at their specific level. Growth can only be successfully accomplished when employees are focused upon a shared vision and common goals.

With the increasing intensity of global competition, organizations must move forward or be bypassed. With this in mind, organizations wishing to experience growth must ensure that their employees change. Individuals must continue to grow, develop and improve themselves as employees. Organizations are comprised of people; therefore if they are to progress, so must their people.

It is important for managers to understand that they play an important role in the development of the employees they direct. They must create an environment that fosters a learning atmosphere. When they do this, they satisfy the basic human need to continue learning. Most people don’t want to stagnate, but seek opportunities to continue their personal development, whether on the job or with hobbies and other areas of interest. Research has shown that most individuals will seek new ways to learn whenever they have the opportunity.

As managers begin to focus their employees on common goals, there are a number of basic assumptions behind this task. Before managers begin to establish common objectives, they should take the time to review these assumptions with their employees. By doing so, they lay the groundwork of specific expectations that employees can use as a foundation for their goals. These assumptions include:

Related: You Keep Innovating if You Want to Keep Leading

There Is a Better Way

Many organizations echo the sentiment, “We’ve been doing it this way for years—why change if it isn’t broken?” If this feeling permeates the organization, it signals a level of stagnation in the face of constant change.

There is always a better way of doing things. Research has shown that every time employees review their goals and functions in a group setting they do a superior job of stating them, measuring them and achieving them. This synergy is a clear sign that the organizational unit is growing in terms of its individual members and as a working unit.

Related: Why New Ideas Trigger a Competitive Advantage?

Working Capacity

A common complaint is that employees are overworked and have too many demands placed upon them. The truth is that no one is ever working at 100% capacity. Research indicates that even the best performers are only working at a fraction of their true capacity.

There are a number of factors at work here. Some individuals make a conscious choice not to provide the organization with the best of their abilities, for whatever reason. Additionally, many managers are placed in a position where they are applying new leadership principles to old bureaucratic methods with internal resistance present. This resistance often stands in the way of desired levels of effectiveness. In other cases, the speed of change and pace of demands are so overwhelming that managers find it difficult to stop and reorganize effectively.

Motivation

Employees are not strongly motivated to accomplish the goals and objectives established for them by others within the organization. Resistance to authority goes back to childhood, when many resisted their parents and teachers. Most employees feel that the goals established by others underutilize their skills. This resistance is very common in most, if not all, organizations.

However, employees will work hard to achieve goals they set for themselves. They feel empowered and assume ownership of their ideas and concepts. When employees assume ownership, they are motivated to succeed, if only because they have been given an opportunity and do not want to fail. They feel bureaucratic constraints are lifted and they are enthusiastic and challenged by the opportunities presented to them.

Related: When Motivating Employees, Expectations Are Everything

Sense of Accomplishment

Employees are happier when they are given the opportunity to accomplish more. Many bridle under older, more bureaucratic rules and procedures that limit their personal ability to perform, grow and develop. Once these constraints are removed, employees have the opportunity to do more than they were allowed in the past. They develop a sense of accomplishment that brings most people pleasure and a feeling of importance.

Most individuals have a need to accomplish something worthwhile in their lives, and managers can use this psychological need to their advantage. If managers are successful in this goal, they will see their employees more interested and enthusiastic than before. The challenge lies in increasing the frequency of these opportunities.

Related: Motivation Is More Than Money

Excerpt: Strengthening Performance: Pinpoint Management Skill Development Training Series (Majorium Business Press, Stevens Point, WI 2011)

Timothy F. Bednarz, Ph.D. | Author | Publisher | Majorium Business Press
Author of Great! What Makes Leaders Great: What They Did, How They Did It and What You Can Learn From It (Finalist – 2011 Foreword Reviews‘ Book of the Year)
Linkedin | Facebook | Twitter | Web| Blog | Catalog |800.654.4935 | 715.342.1018

Copyright © 2012 Timothy F. Bednarz, All Rights Reserved

Written by Timothy F. Bednarz, Ph.D.

September 25, 2012 at 11:29 am

Plans Must Be Rooted in Past Performance

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Performance planning is not developed in a void, nor is it based upon unsubstantiated estimates of budgets, performance and plans. Effective leadership demands plans be based upon past performance and results. By successfully implementing such plans, leaders can stimulate their subordinates to exceed normal performance expectations.

It is surprising how many managers develop annual plans and budgets without accounting for previous years’ performance and the realistic capabilities of their operational unit. Plans that lack these important elements are typically ineffective as roadmaps for achieving high output from an organizational unit.

Related: Six Key Benefits of Performance Management

Effective leaders understand that in order to move their unit forward, they must look at what has worked in the past and then build upon those successes. They also take proactive measures to eliminate any apparent failures and weaknesses.

This process is important for leaders to understand if they wish to motivate their subordinates to reach higher levels of achievement. Plans are not a worthless set of documents to be viewed only once or twice a year: they outline significant milestones and detail what the unit needs to do to effectively operate throughout the year. Leaders understand that performance plans lay out the path for attaining their goals and objectives.

The importance of proper planning cannot be emphasized enough: if it is to be effective and realistic, it must be focused upon prior performance of the leader’s organizational unit. Therefore, a formal review must be conducted in the following three critical areas:

Operational Performance

A formal review in this area is normally conducted on two levels simultaneously: operational and leadership. The operational review compares the organizational unit’s performance with the stated goals and objectives passed down by senior management. The leadership review compares the organizational unit’s performance with the leader’s expectations. While both levels review the same information, the leadership review is conducted from the leader’s perspective of how he or she can motivate the unit to exceed expectations.

The process of a formal review begins with a superficial selection of areas that need further examination. Particular attention needs to be paid to what did and did not work during the past year. This is where leaders can begin to develop strategies to build upon their unit’s successes and eliminate or correct any failures/weaknesses.

Leaders next need to rate the actual performance of all aspects of their organizational unit, including personnel, tasks, assignments, roles, resources and so forth. At this point, any required changes and adjustments should be noted for inclusion in future performance plans.

A final review of operational performance needs to explore the impact and affect of new trends, changes in economic conditions, and uncontrollable events on the operational unit. A thorough examination should note exactly what occurred, how it impacted the leader’s unit and how the unit responded. Any lessons learned from these experiences should also be included in future plans.

Related: Measure What Needs to Be Measured

Resource Utilization

A formal resource utilization review should be conducted to determine if the leader and the organizational unit maximized their use of available resources. Typically, this review determines if the unit effectually used personnel, machinery, equipment, time, schedules and financial resources.

Leaders need to analyze the operational or production capacity of their organizational unit. This can be conducted from several perspectives, such as production, operations or administration, depending upon the responsibilities of the unit. A resource utilization review pinpoints any bottlenecks or problems that occurred in these areas.

Next, leaders must determine the causes of bottlenecks and problems, which can include inadequate scheduling or insufficient human or financial resources. The findings should be detailed and included in future planning activities.

Related: Five Critical Steps to Maximize Performance

Financial Performance

The last step in this review analyzes the unit’s financial performance. First, leaders determine how well their organizational unit worked within its budget. They will often discover problem areas that can be more deeply examined during the performance planning process.

An additional review should be conducted to look at the profitability of the organizational unit, including potential ways for it to cut costs and improve productivity. These findings should also be detailed and noted for further examination as well as inclusion in future performance plans.

If you are seeking proven expertise and best practices in performance planning to train or educate your employees to solve problems and improve their performance in this area, refer to Planning to Maximize Performance: Pinpoint Leadership Skill Development Training Series. Click here to learn more.

Timothy F. Bednarz, Ph.D. | Author | Publisher | Majorium Business Press
Author of Great! What Makes Leaders Great: What They Did, How They Did It and What You Can Learn From It (Finalist – 2011 Foreward Reviews‘ Book of the Year)
Linkedin | Facebook | Twitter | Web | Blog | Catalog | 800.654.4935 | 715.342.1018

Copyright © 2012 Timothy F. Bednarz, All Rights Reserved

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