Rick Ross on Business, Technology and Life

Moving Beyond Performance Reviews

2012-01-29T19:23:43-05:00

Performance reviews have a seductively logical appeal. There's no need to belabor the point by enumerating their obvious positives. And besides, aren't they essential as an "objective" basis for raises?

Despite their merits and ubiquity, there's a pervasive sense that this staple of company life is hopelessly flawed. Is his post, Do You Have a GOOD and SIMPLE Performance Evaluation Form?, bestselling business author Bob Sutton laments: "As many of you know, I have expressed considerable skepticism about whether performance evaluations are even worth using".

The problem is insidiously simple. Four stars and a narrative is a great way to compare and evaluate the latest technological gizmo, but it's an awful way to treat people. Proponents of performance reviews fail to account for the inevitable and very human reactions that negatively impact performance.

For a way forward, consider the sentiments from the following two posts:

1) Transform Your Employees into Passionate Advocates by Rob Markey "We have been studying the links between employee engagement and customer loyalty for a few years now, and we've found that the only route to employee happiness that also benefits shareholders is through a sense of fulfillment resulting from an important job done well."

2) "In 100 Words: Where Do You Start When Your Employee Fails? by Robert Tanner "If you treat people the way they are, they get worse. Treat people the way they might be and they get better."

How can these ideas be sewn together?

Replace the annual performance review with a Contribution Statement. This statement is solely focused on how the employee contributed to those that the company serves. It's a deserved written acknowledgement of how the employee impacted those who depend upon your organization. It's a chance to reinforce the company's mission. It's a chance to say "thank you".

Unless there are serious on-going issues, suggestions about how an employee might improve should be communicated promptly, not as part of a periodic written statement. In cases where an improvement discussion feels appropriate, the Contribution Statement makes it easier for the manager by naturally framing it in a positive manner, e.g. "Here's how you can be even more valuable during the coming year."

At a time when leaders and HR managers are befuddled by the lack of employee engagement, might the replacement of formal reviews with Contribution Statements make a difference? How would this change impact morale? In the evolving world of work, does a Contribution Statement make more sense?

Related

Get Your Employees Engaged

Innovation: Three Concepts You Can Apply Now

2011-11-03T22:10:31-04:00

What follows is an example of how to apply three concepts to drive innovation. It is not intended to comprehensively address the stated objective.

Objective

Reduce fuel consumption

Concepts

Consider the system in which the target of your innovation operates
Look for ways to use or combine existing technologies, preferably ones that are inexpensive and easy to implement.
Address issues as problems to be solved, not dead ends

Applying Concept #1

Attempts to reduce fuel consumption commonly focus on efficiency. While this approach will continue to be important, its application requires decades to achieve meaningful impact. What measures can be applied to complement it?

Applying the first concept, consider the "system" in which cars operate. This includes roads and traffic lights. How can these be optimized so that cars use less fuel?

Recall your own experience. Ever find yourself waiting for a traffic light to change after lanes on the cross street have cleared? Ever had to slow down for a light that's inappropriately still red? Drivers are so accustomed or resigned to the inept behavior of these devices that their inefficiency often goes unnoticed.

Needless idling is only part of the problem, even more fuel is wasted regaining speed after an avoidable slowdown. Imagine the inefficiencies you personally encounter multiplied times the estimated 250 million plus vehicles just on US roadways. Improvements in traffic signal operation would dramatically impact fuel consumption.

The Problem

The core problem is that traffic lights have a shortsighted view of approaching traffic. Currently sensors under the roadway provide only rudimentary information. As a substitute for more comprehensive awareness, engineers time light changes based upon traffic volume predictions for the time of day. By the most generous assessment, this is a crude substitute for data based decision making.

Possible Solutions

The solution to this problem lies in giving lights sufficient information on which to base decisions. One solution, already being tested, proposes installing "short-range wireless transmitters in cars and elements of the road infrastructure". However, this idea underscores the problems associated with applying innovations to system elements instead of the system itself. It requires each car to have a transmitter.

Another solution being tested leverages devices that are already in most cars: smartphones. SignalGuru attempts to use a "collection of mobile phones to detect and predict the traffic signal schedule. ... Based on when the signal ahead will turn green, drivers can then adjust speed so as to avoid coming to a complete halt." The developers claim that in tests "vehicle fuel consumption measurements show savings of 20.3%, on average".

While these results are impressive, this solution is still suboptimal and creates collateral problems. For example, drivers could be distracted by the need to monitor and act on the device's recommendations. More importantly, the device does nothing to reduce time wasted by the outdated traffic control technology.

Applying Concept #2

With the needed information, a traffic light could use computer algorithms to eliminate unnecessary slowdowns and stops. That makes the key question: "What existing technologies can be combined to cost-effectively provide traffic lights with the requisite information to change at optimal times?"

Hint: The crux of the solution may be sitting on your desk.

Requirements:

Detect cars at varying distances on each side of the traffic control device.
Transmit this information to a "smart" traffic light that decides when to change

Many inexpensive off-the-shelf webcams can detect motion (even at night) and with the proper hardware Wi-Fi can securely transmit information to nearby devices. The processor in most smartphones is powerful enough to quickly run the algorithms required to process the incoming information. Together these components (based on existing technologies) provide us with a conceptual framework to dramatically improve traffic light operation.

Applying Concept #3

With a conceptual framework in place, it's time to address the implementation details.

The good news is that even the most blurry eyed camera can detect the motion of a car. The communication that's required between devices shouldn't be much of a problem either. But, of course, there are still problems to solve - lots of them.

As an example, "off-the-shelf webcams" aren't going to endure the temperature extremes they'd experience in most of the world's cities. And how would engineers power the webcams? Can existing traffic lights be retrofitted with "brains" that allow them to process the incoming data? These are only a few of the implementation details that need to be addressed.

This is the moment where innovators need to continually ask, "How can we make this work?" The path from concept to implementation is often a difficult one. Engineers have to iteratively solve each problem until a feasible solution is reached.

Existing Solutions

Smart traffic lights aren't the only way to smooth traffic flow. Several effective low tech solutions already exist. While they limit unnecessary stops, their lack of widespread adoption limits their impact on fuel consumption. These solutions include traffic roundabouts, single-point urban interchanges (SPUI) and the so-called Michigan Left Turn.

The slow adoption of these ideas highlights a more significant problem that all innovators face: acceptance.

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Mistakes New Managers, and Sometimes Experienced Ones, Make and How to Avoid Them

2011-06-30T18:16:07-04:00

Many are thrust into their first management position with great fanfare, but without any idea of how to be effective. From family businesses to major corporations, there's an epidemic of manager's who, instead of enhancing results, leave their team members miserable and disengaged.

Effectiveness starts with an awareness of the most common and damaging problems.

Not understanding how you affect others

Almost everyone assumes that they understand how they affect others, but that's rarely the case. Create an environment where it's safe for your team to express themselves then open your ears and mind. You'll gain a clearer picture over time.

Hiding from missteps

Being just as human as everyone else, you'll make at least as many mistakes. Become a leader by modeling a healthy attitude towards failure: acknowledge, emphasize what you learned and move on.

Trying to be the best at everything

Many new managers are promoted because they're the best at what they do, e.g. the best salesperson or the best software developer. However, running ahead of the pack and leading a team are completely different endeavors.

With additional responsibilities remaining the "best" is unsustainable. Help others learn how to fill the void and let them take over as the "best".

Not knowing when to do nothing

Good managers know what to do. Great managers additionally know when to do nothing.

Believing that your job is about control

There's a dangerous and outdated archetype that often springs into action when any form of the word "manager" appears on an office door's nameplate. It's that industrial age remnant "command and control" and has no place in the modern workplace. Learn to be a leader, not a commander.

Not checking the facts

There's one in every group; someone who'll attempt to use a manager's naïveté as a weapon against others. With feigned innocence they'll pass on information about co-workers with one end in mind - eliminating the competition.

No matter how compelling the story (they always are) don't form an opinion until you've heard directly from the person being targeted.

Focusing only on what's wrong

Business school fixates our attention on finding and fixing problems. But leadership is about people, not problems. Recognize good regularly and wherever you find it.

Don't praise by numbers, i.e., downplay advice that urges you to use some fixed ratio of praise to correction. It's inauthentic.

Failing to regularly review your communications

Research shows that it's not only what you say and how you say it, but how often you say it and that you use multiple media to reinforce the message. Spend a few minutes each day insuring that your two or three most important initiatives are being appropriately reflected in your communications.

Allowing your actions to eclipse your message

Even manager's who've followed good communication practices may still find themselves perplexed that their message still isn't getting through. Clichéd as it may be, the old saw "Your actions speak so loudly that people can't hear what you say" is true.

Tell your staff that an initiative is important and don't follow-up. They'll listen to your actions, not your words.

Failing to provide your team with insight

"Because I said so" might work with four year olds, but it's a terrible way to manage (and raise children). Be prepared to help your team gain insight into the "why" or to learn that your "why" is no longer valid. In the latter case, make the appropriate change and be sure to give credit where credit is due.

Taking credit for everything

Credit where credit is due, no exceptions. Any deviation, willfully or though lack of due diligence, destroys morale and relationships.

Complaining about a team member to everyone but the team member

Venting to others is a dangerous trap built on conflict avoidance. It's disrespectful to the person with whom you have an issue, delays resolution of the problem and leaves an impression with those to whom you speak that you'll do the same thing to them. Put this on your "never do this" list.

What are other common management mistakes?

Declaring Independence in the Workplace

Is Repetitious Communication a Good Idea?

2011-05-31T21:43:07-04:00

As you listen to the workplace conversations, what ideas and phrases are regularly repeated?

Effective leaders can use repetition as a tool to cement organizational culture. Research shows that managers can use it to improve project outcomes too.

In the post, It's Not Nagging: Why Persistent, Redundant Communication Works the author's report, along with other findings, the following conclusions:

"managers who are deliberately redundant as communicators move their projects forward more quickly and smoothly than those who are not." The effect was even more pronounced for managers "without power".
"Clarity in messaging matters less than redundancy. It's not the message; it's the frequency of the message that counts in getting the job done."

Extending these findings to leadership, it's easy to see how they can be applied. But there's a downside that must be accounted for too.

While repetition can be purposefully used for the good of the organization, it can also be used to its detriment. It's commonly (often unknowingly) applied to deter innovation and thwart challenges to the status quo (especially notable since it's effective even in the hands of those "without power").

For example, one organization's manager incessantly advertised how much they were accomplishing given their staff size, but complained that they were struggling - a seemingly reasonable attempt to justify more staff.

However, they'd failed to ask basic questions like:

What are we doing that isn't delivering value to our customers?
How can we leverage technology to deliver more with less?

A closer look look revealed ample opportunity to get much more done with less effort, alleviating the need for additional staff. The repetition had been acting as a wall, successfully hiding opportunities and better alternatives.

Action

Managers - intentionally repeat key communications using multiple media.

Leaders:

Use redundant communication to underpin ideas important to an organization's culture.
Listen. Develop an acute awareness of the messages that are regularly repeated by employees. Look for the opportunities often hidden behind them.

The Right Time for Change

2011-04-28T21:07:49-04:00

Keep in mind that neither success nor failure is ever final - Roger Babson

The company president's unwaveringly optimistic disposition seemed to be failing. He looked worried. "Sales have slowed to a trickle. I can only meet payroll for about 18 months." The technology on which the company's main product was based, and the associated business model, were hopelessly outdated. A major redevelopment effort was required at the precise moment when the company could least afford it. The demoralized staff made a comeback seem even more unlikely.

Troublingly, the problems weren't a surprise. No expensive consultants required, the inevitability of the needed changes had been obvious for years. But until recently, brisk sales made it too easy to put off the expense and effort.

Why is the same story, with a few variations in the details, so common? Without awareness to keep it in check, a hubris develops that deep freezes an organization's drive to become better.

Change and innovation screech to a halt while the world moves forward. Technology improves, customer perceptions shift and competitors find a better way while the successful lull themselves to sleep to an off key rendition of "why fix what isn't broken". Sadly, the resulting problems become harder and more expensive to fix over time.

The Problem Isn't a Lack of Ideas

As with the case above, the stumbling block to "becoming better" isn't typically a lack of ideas. Michael Schrage encourages companies to look for, what he eloquently calls, the "innovation obvious":

"the question shouldn't be "What's the most innovative thing we can do?" or "How can we push the innovation envelope?" or even "What's the innovation our customers most want?" — it's "What's the most obvious innovation that matters?" A craving for surprise should never be allowed to overwhelm the need for the obvious"

The Human Factor

The bona fide impediments are very human. They're the amalgam of fears, biases and a failure to learn that breed change resistance. The most insidious element is success itself. When the financials look good why endure the discomfort?

The First Signs of Trouble and an Opportunity

As a product or business model starts to falter, denial produces a bumper crop of creative ways to maintain the status quo. The sales staff is subjected to increasing pressure to correct their "underperformance". A blame spewing sprinkler is brought out to soak anyone in its path. Suggestions that change is needed are treated dismissively and as an annoyance.

Common responses include: "Do you know how much that would cost to develop?" or "We don't have time for that now". Unfortunately, the costs and difficulty associated with change only grow with time.

But this phase also presents a fleeting opportunity. If leaders recognize what's happening, there's still time to save the company. If they fail to acknowledge reality, during the next stage they'll experience a precipitous drop in sales.

A Better Way

While timely recognition is good, building an openness to ideas and continual change into the organization's cultural DNA is much better and proactive. The resulting organization is one that continually reincarnates newer, improved and more relevant offerings.

Is your company too successful to bother with what's next? Is it missing opportunities to capitalize on the "innovation obvious"?

Epilogue

What happened in the case mentioned above? Through an ugly combination of herculean effort and miraculous good fortune the company pulled through without a minute to spare. Since that time they've grown and returned to profitability.