Unlock the Secrets to Organizational Well-being
Authoritative Leadership
For a considerable period, the conventional wisdom suggested that there are specific times and situations where authoritative leadership comes into play. By leveraging authority, pressure, and influence, tasks get accomplished. This authoritative leadership practice has been an integral part of our OHI survey right from the start. During the survey update process, we hypothesized that it would continue to hold its ground as one of the key leadership practices. It has proven to be a powerful force in driving organizational health, guiding teams towards success.In many organizations, leaders who exhibit authoritative leadership qualities are able to inspire and motivate their teams to reach new heights. They set clear expectations and ensure that everyone is on the same page. This not only leads to increased productivity but also fosters a sense of discipline and focus within the organization.Employee Experience
The OHI not only measures the outcomes such as how well an organization aligns, executes, and renews itself to achieve sustained high performance but also focuses on the daily practices that leaders employ to achieve these outcomes. While measuring individual employee experience can provide valuable insights, we initially believed that it might not be a core aspect of the diagnostic. We thought that it might not add significant predictive value beyond what is already captured by management practices.However, upon closer examination, we realized that employee experience plays a crucial role in organizational health. Happy employees are more likely to be loyal and committed to the organization. They bring a positive attitude to work and are more willing to go the extra mile. By focusing on improving employee experience, organizations can create a more engaging and fulfilling work environment.Purpose
In the past, employee involvement mainly revolved around getting people involved in the "what" and the "how" of interpreting, evolving, and executing an organization's strategy. But we predicted that purpose, which represents the "why" that inspires people, should be added as a new practice. This new practice would drive whether organizations effectively set a clear direction, leading to four direction practices instead of three: purpose, shared vision, strategic clarity, and employee involvement.Purpose gives employees a sense of meaning and direction. When they understand the purpose behind their work, they are more likely to be motivated and engaged. It helps to align individual goals with the overall goals of the organization and creates a sense of unity among employees.Decision-making Excellence
Effective decision-making is of utmost importance for organizational health. We have all experienced situations where decisions are made haphazardly, based on inaccurate information, or postponed for too long. These scenarios can lead to inefficiencies and missed opportunities. In updating the OHI survey, we predicted that decision-making effectiveness and efficiency would become a new practice driving the outcome of coordination and control.Organizations that excel in decision-making are able to make timely and informed decisions. They have clear decision-making processes in place and involve the right people in the decision-making process. This ensures that decisions are based on accurate data and are in the best interest of the organization.Tech and Digital Capabilities
Many organizations recognize the importance of investing in technology to enhance the employee experience. They believe that happy employees are more likely to be loyal and productive. We predicted that technology and digital capabilities would be added as a new practice driving the capabilities outcome. This new practice would focus on the role of technology in making work easier for employees.With the rapid advancement of technology, organizations need to leverage digital tools and platforms to streamline processes and improve efficiency. From automation to data analytics, technology can provide valuable insights and enable organizations to make better decisions.Environmental Sustainability
Employees today are increasingly concerned about the environmental impact of their organizations. They want to know that their companies are taking responsibility and making efforts to make the world a better place. We predicted that sustainability, including a focus on net-zero goals, would be added as a new practice driving external orientation.Organizations that embrace sustainability not only contribute to the well-being of the planet but also gain a competitive edge. By reducing their environmental footprint and engaging with external stakeholders on sustainability issues, they can build stronger relationships and enhance their reputation.Inclusion
The true value of a diverse and equitable workforce is only realized when an organization is inclusive. We expected to add two practices related to inclusion. One practice focuses on creating an inclusive work environment where every employee's unique perspectives are valued and they feel a sense of belonging. This practice drives an effective work environment.Inclusive leadership is another crucial aspect. Leaders who foster an inclusive environment include a diverse set of employees in decision-making processes and address inappropriate behavior promptly. This practice drives the leadership outcome and helps to build a more cohesive and productive organization.Talent Deployment
All companies strive to have the best talent. Attracting external talent and retaining great employees is a challenging task. We predicted that the talent acquisition practice, which focuses on hiring the best external talent, should be expanded to a broader practice that includes strategically and dynamically shifting talent within the organization.By effectively deploying talent, organizations can ensure that they have the right people in the right positions at the right time. This helps to optimize performance and drive innovation within the organization.What Matters to Employees
Lucia Rahilly kicks off by asking about what matters most to employees in driving strong performance. Brooke Weddle emphasizes the importance of clarity and simplicity. People want to know what they are accountable for, which leads to a sense of fairness. Simplicity often wins over loading too many factors into performance management. The role of the manager is crucial not only for evaluations but also for providing feedback and guiding employees on their development journey. However, managers often struggle to do this well at scale.
Bryan Hancock then highlights what good goal setting is not. It's not a sheet with 25 individual measures and complex weightings. Goal setting should be embedded in daily work, using tools like OKRs. Regular performance dialogues help employees understand their progress and focus on the critical few.
Goal Setting in a Portfolio Work Environment
In a world where jobs have become more portfolio-like, effective goal setting takes on a new dimension. It's about setting clear, achievable goals that are relevant to the portfolio nature of work. Managers need to help employees navigate this complexity and ensure that goals are aligned with the overall business objectives.
For example, in a marketing team with multiple projects, goals might be set for each project based on its importance and potential impact. Regular check-ins and feedback sessions help employees stay on track and make necessary adjustments.
Simplicity vs. Complexity in Performance Management
The research shows that it's not the ratings themselves that matter but knowing where you stand. Clear markers and indicators are more effective than ambiguous conversations about growth. Whether there are no ratings, a few ratings, or many ratings, how the system is implemented matters most.
For instance, a company that uses qualitative ways to describe progress during the pandemic found that employees were more motivated when they had clear feedback on their performance. This led to a focus on getting the execution right and improving the perception of fairness.
How to Approach Feedback
Lucia Rahilly asks about making feedback discussions simpler and more constructive. Brooke Weddle suggests setting a cultural mindset around continuous learning and prioritizing internal talent. Managers can also make feedback a part of daily work by creating rituals like weekly check-ins.
Bryan Hancock adds that managers often get burned out due to time constraints. They need to approach feedback conversations in a way that is both empowering and challenging. Instead of just pointing out mistakes, they should encourage employees to think about their actions and learn from them.
Hybrid Work and Manager Clarity
Lucia Rahilly wonders how hybrid work has affected managers' clarity about their employees' work. Bryan Hancock explains that periodic feedback is crucial, regardless of the work environment. Managers need to be deliberate about setting aside time for developmental feedback.
Brooke Weddle emphasizes the importance of thoughtfulness in understanding how work gets done relative to goals. In a hybrid environment, this becomes more complex and requires nuanced conversations between managers and employees.
Helping Managers with Challenging Conversations
Lucia Rahilly asks about facilitating better coaching for managers. Bryan Hancock suggests practicing challenging conversations and using gen AI to get feedback on feedback. This helps build skills and confidence.
Brooke Weddle also recommends simplifying processes. By taking a hard look at where value is derived, organizations can create more time for managers to focus on coaching and feedback.
Addressing Poor Performers
There is a need for early interventions and development conversations with poor performers. Managers should lean in when they see someone struggling and guide them towards improvement. But it's also important to have a fact-based record when it comes to removing people from roles.
For example, a manager might have regular one-on-one meetings with a struggling employee to understand their challenges and provide support. If improvement is not seen, a clear and objective record can be used to make difficult decisions.
How Important is Compensation?
Lucia Rahilly raises the question of the importance of money in performance management. Brooke Weddle highlights that more than half of respondents are motivated by a combination of financial and nonfinancial rewards. Nonfinancial rewards like growth opportunities and praise are equally important.
Bryan Hancock distinguishes between revenue-generating roles and other roles. In revenue-generating roles, compensation plays a more significant role, but overall, financial rewards matter in the broader context.
Reducing Bias in Assessing Impact
Lucia Rahilly discusses the gender pay gap and ways to reduce bias in assessing impact and performance. Brooke Weddle suggests looking at the "broken rung" where women are more likely to leave at certain levels. Organizations need to help women make transitions and pursue roles that lead to leadership.
Bryan Hancock emphasizes the need for unconscious-bias training and calibration meetings to ensure fair assessments. Managers also play a crucial role in guiding women to the right career tracks.
The Path Forward
Bringing it all together, Brooke Weddle is surprised by the importance of clarity in goal setting and continuous conversations. Bryan Hancock is hopeful that generative AI can help give managers more time and start a broader conversation about improving the performance management process.
Ultimately, it's about moving away from the bureaucratic aspects of performance management and focusing on the human element. By having clear goals, continuous feedback, and the right support, organizations can improve performance and employee engagement.