Archive for the ‘Experiments’ Category

Profitability (or net contribution to profitability) per person:

Profitability = (Revenue – Cost)/ # of people

Anything else is a distraction.




Always worth reading Laurie Reuttimann’s take, like this one on Working from home – another area where muchos destruccion is required.

… in search of THE ANSWER, thinking:

When we understand enough, we’ll act

Someone needs to tell them:

Only by acting will you learn to understand

Could that someone be you?

Let’s run some numbers:

  • Company size: 10,000
  • # of managers: 1,500
  • Ave. span of control: 8 direct reports
  • Ave. hours per direct report: 3h (for self-assessment, review discussions, final documentation)
  • Total hours spent on performance management cycle = (1,500 x 8 x 3) = 36,000h
  • # hours per year = 2,000h
  • Full-time-equivalents dedicated to Performance Management = 18 FTEs*

Without factoring in lost productivity and/or questionable/negative impact upon engagement

[and resulting death spiral for performance]

by even conservative estimates, this company pays the equivalent of 18 people just to comply with the annual performance management cycle.

Run the numbers for your company. Then, walk into a business leader’s office tomorrow and offer her 18 people for no extra cost, increased engagement and less distraction from meeting customer needs. We think you’ll get backing to demolish the performance management cycle.

And, if not, what a discussion you’ll begin.


* Note: the calculation does not include any HR resource dedicated to performance management, which is as it should be; managers manage and HR gets in the way.

Meeting individuals where individuals are is a good thing. However, aiming for specific numeric targets – x% women and y% people of color – in any working population (e.g. senior leadership) misses the point completely and, for emerging generations, is an insult. The resulting cynicism kills performance.


Joy in performance or efficiency through control?


In reviewing Bob’s performance, I seek feedback from peers, customers and suppliers – the only question I need ask is how much someone agreed with the following statement:

“Bob helped me do a better job in meeting my customer’s needs than I would have been able to if he hadn’t been involved.”