11 practises to build a performance culture.

11 practises to build a performance culture.

Managing personnel KPI’s, performance reviews by another name, are one of the most intimidating and easy to put off tasks most managers have.

Having recently written about behaviours delivering KPI’s rather than the other way around, it may be useful to do a quick audit of your own practises, and that of your employers.

If you want to shape behaviour, you need to communicate, and more importantly, display the behaviours before they will be taken up by others in the organisation.

This is a crucially important aspect of every person in a position to manage the output of others.

In  no particular order, following are some of the things I  have observed over the years that impact positively in behaviour, and clearly the converse is also true, their absence is telling.

Start from the beginning.

The first thing a new employee should understand is the behaviour that is required, and the connections these have to the KPI’s. Start as you want to continue, as someone who is willing and able to assist the new employee to learn, and contribute to the organisation. So often I see new employees disheartened by the reality of a new job not matching the rosy descriptions given during interviews. This is a bad mistake.

Feedback is a two way street.

Recognise that giving feedback is delicate, and is also a two way street. Positively managing the performance of other people requires a relationship, and no relationship can exist without some give and take. Every employee has expectations of their boss, so you should also ensure they have the opportunity in the conversations about performance to give you feedback. When this happens as a matter of course, as a part of natural conversation, it is a really healthy sign.

Responsibility and credit.

Taking responsibility for the failures around you, but giving credit where credit is due, publicly, is one of the most powerful motivators I have seen. It builds respect, and importantly also builds a well of goodwill amongst those around you, as well as from those reporting to you.

Feedback should be cultural.

Make performance feedback part of the culture. It should not be a once or twice a year conversation,  but an ongoing part of the discourse. This is not an easy part of being a manager, it means you need to be thinking of others all the time, rather than concentrating on yourself.  Have a look through the terrific Netflix culture doc, it is a very useful guide from a business that has managed exponential growth while disrupting established marketers, and building what appears to be a great place to work. Clearly, they know something about performance management and culture that the rest of us can learn from.

Remove emotion.

Keep emotion at bay, by concentrating on facts, and demonstrable cause and effect. This is a challenging task, but emotion is the killer of constructive and mutually beneficial conversations.

Be specific about expectations, exhortations to do better are of no value unless you are able to tell  them exactly how to do better, and the metrics by which that performance will be measured.

Context.

Help people to see their work, and place in the organisation from a broader perspective than just their own little part of it. Understanding the context of a role, and the impact the performance of it has on others is a very powerful motivator.

Educate for the next job

Recognise explicitly that most people move on at some point, and that you take it as a personal challenge to ensure that when someone does move on, it is to a better, more senior job, and that you have contributed to the success that gets them there. Helping them build a career path is a part of your job as a leader and manager, and they will be grateful. When you give something of value to someone else, reciprocity kicks in, and in some way, at some time, most will repay the ‘debt’, often with interest.

See the context of peoples working lives.

Understand the patterns and drivers of the lives of those for whom you are responsible. While keeping a distance is easy, and natural, unless you understand what is going on in someone’s life outside the time they  spend as an employee, you will not  be able to understand them as well as you might, and will therefore fall short of being the perfect boss. This can be a very fine and variable line. Some may not welcome what they see as intrusion, but to one what may be intrusion, to another is genuine interest in them as a an individual.

Address the molehills immediately.

Adverse behaviour does happen, and unless called out immediately, will quickly become  accepted as ‘normal’. When you see something great, immediate recognition will drive a repeat performance, and the opposite is also true, and corrosive. Once poor behaviour becomes the norm, it is very hard to change. Nip it in the bud!

Write it down.

There are regulatory requirements, as well as good governance that relies on things being written down and recorded. Some would  say without a written record, it did not happen. Agreeing a written record with the other party goes a long way towards cementing the  changes you need.

No threat no sweat.

‘Performance review’. Just the words elicit a sweat, an impending doom, that affects the conversation. Remove the implied threat, and the conversation can be mutually constructive. Of course, there are the odd occasions where threat is an intention, but it needs to be the exception, rather than the rule.

In these fractured post Weinstein days, ‘gender politics’ may also play a role, particularly if you are a middle aged, heterosexual white guy with the power. Enough said.

Remove with humanity.

Finally, when someone has to go, do it explicitly, but with humanity. Firing someone, particularly someone with whom you have worked closely, for whom you have had responsibility, and who you might like personally, is the hardest management job there is. Do not shirk it, and do  not leave any room for ambiguity. It is not about blame, it is about both parties moving on in their own best interests. You also need to consider those that remain in employment. They will see the termination,  and the manner of it, and come to their own conclusions about how it was handled, why it was necessary, and how it may impact them. Survivor syndrome is remarkably strong and often overlooked.

What have I missed from your experience?

 

Your ‘Values’ should not be table stakes.

Your ‘Values’ should not be table stakes.

 

Consultants have delivered a lot of value to many over the years, but in some areas, have screwed the pooch.

One is the confusion that presides over the differences in meaning between ‘Vision’, ‘Mission’, and ‘Values’, and more recently, ‘Purpose’.

The result has been a huge number of well meaning but generic sounding statements adorning many reception areas.

You know  the sort of fluffy meaningless stuff I refer to:

XYZ company works as a team applying rigorous standards of integrity and authenticity to everything we do. We are focussed on delivering value to our customers, while having fun at work, and respecting the needs of our diverse workforce and supplier partners’

Bollocks.

Each element of that fluffy nonsense is table stakes if you want to stay in business, and in addition, that statement could apply to any business from the multinational supplier of coal to the local massage therapy franchise.

Building a brand, a position, a purpose, however you wish to define it for your business is a hard, long term job. It requires deep consideration of what it is you do, how you add value, and  what makes you sufficiently different to be  noticed and engaged by customers. Having a set of core beliefs that delivers on those three elements is what gives your brand the power and presence to stand out.

If you run a delivery service, speed of delivery is a given, as would be reliability. Having those two words on a board  in your reception will do little to differentiate you from your competition.

It is not easy to come up with the words that reflect the persona of your business, the way you would like others to see you.

It is however, worth the effort.

Good examples are few and far between, perhaps I am just being an old curmudgeon again. Ask Dr Google to give you some examples, and there are millions of responses, all with similar words.  Passion, integrity, respect, innovative, accountability, and so on all feature, largely it is just so much undifferentiated mush.

However, there are a few do stand out, beyond the few like Apple and Google that we all know:

Patagonia: ‘Build the best product, cause no unnecessary harm, use business to inspire and implement solutions to the environmental crisis.’

Warby Parker: ‘To offer designer eyewear at a revolutionary price. While leading the way for socially conscious businesses’

Both these businesses have been standout performers over the recent past. Obviously it is more than their values statements that delivered that  outcome, but it helps.

My local mechanic, to demonstrate you do not need to be a cashed up multinational to have a great statement that defines you, has as his positioning statement on the wall for all to see ‘Our deep experience and attention to the detail ensures that your car stays reliably, safely and comfortably on the road longer.’

This always struck me as a useful expression of why I should be taking my precious old Merc to him.

 

 

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Do we still need book stores and publishers?

Do we still need book stores and publishers?

 

I love books, real books, items where you physically engage with them, turn the pages, scribble in the margins, pass them onto friends with a handshake and a ‘you will enjoy this‘.

Behind me (chronologically) are those who have grown up with e-books, blogs, podcasts, and all the other digital distractors, who have missed the joy I have always had in a bookstore. Instead they browse the Amazon catalogue and recommendations, and look up ratings by people they do not know on sites that have no interest in being transparent.

Very efficient, but to an old fart, not always a substitute.

Despite the gloomy outlook, I still think that the few bookstores still around will survive, having identified a clientele who like me values a real book. Stores like Berkelouw books in Sydney  with 10 stores, and 200 years plus in the business, where a book is more than an item in a catalogue, where the staff live and breathe books, and communicate the passion.

Perhaps not, the numbers seem to be against them, although Amazon opening bricks and mortar bookstores should tell you something. There are also a few specialised book publishers around, those with a deep knowledge of their topic domain, that seem to be hanging in there.

Authorearnings.com has a database that records all book sales, a treasure trove of information if you are a book tragic. Here are some highlights from the January 2018 report, and some thoughts.

  • Amazon sells half the ‘books’ in the US. That number is made up of e-books 55%, print 39% and fast growing audio books making the balance.
  • The dollar shares are very different, print sales make up 63% of the value, unsurprising when you consider the relative value of a $3 e-book and a $100 textbook, which are still largely print. How long this print bias in textbooks will last is anyone’s guess, but mine is not too long.
  • The sales split in categories of books, unsurprisingly, is very different. Digital has consumed fiction, with 90% of romance purchases are e-books,  while poetry and drama are still overwhelmingly print, albeit off a way smaller base.

Books are the original long tail business, millions are ‘published’ and most sell only a few copies to their friends, colleagues, and mum. However, some are still of great value to a few, and we would be diminished by their absence. Digital has made the long tail accessible to us all, suddenly those lost gems are easy to find, even if you do have to read them on a ‘device’

The strategic question is will there still be a need for publishers in a decade?

I think the answer is ‘Yes’ but not like  they  are currently and have been in the past. They will become more like collaborators, and business partners, than just another cog in the supply chain as they have been. Publishers play an important role in the curation and editing of books. Authors  want to write, and often do not want to be bothered by  the commercial end of  the business, and in any event often have little marketing and commercial skills, so need a third party to help.

Editing is also a must, if a book is to be more than a jumble of words. Steven Pressfield in his great ‘Writing Wednesdays‘ blog makes it clear that he could not do what he does without his editor Shawn Coyne. If a writer of the skill and experience of Pressfield needs help, the rest of us are in real trouble without it.

Photo credit. Geoff Roberts. Goulds Books Newtown Sydney.

PS. After posting, a friend referred me to this video of the 6 most beautiful bookstores in the world. Suck it up Amazon!

 

 

 

Base KPI’s on behaviour, not outcomes, for best results

Base KPI’s on behaviour, not outcomes, for best results

It is budget season, so amongst the detritus of everyday management, we have to make time for creating the budgets for the next 12 months, in Australia usually starting July 1. Hopefully, budget preparation is a normal part of the management ‘flow’ of your enterprise, where it follows naturally after a regular strategic review and preparation of operational plans. The budgets then become a financial expression of the operating plans, but sadly, it is most often not the case.

Irrespective of the procedures that dictate preparation, part of the budget process is the setting, or in most cases, the resetting of Key Performance Indicators, KPI’s.

In almost every case I see, KPI’s are all about outcomes, achievements that more often than not are recorded in the financial reports, which are an alarmingly one dimensional reflection of performance in today’s world.

Would  it not be better to set KPI’s based on the behaviours we want, which are after all the underpinning of outcomes. It is unlikely the outcomes will be favourable unless the behaviours that occur are constructive.

There are many challenges in  setting KPI’s  in this way:

It is hard to do, therefore we take the easier route

To be effective, behaviours, and specifically the behaviours we want, need to be made sustainable, part of the everyday routines,  not something that happens when the boss is watching.

Behaviors are a product of  the environment in which we exist, so the task of management is not just to mold behaviors, but too mold the context in which you want them to evolve. Commonly this gets called alignment, but almost always it implies financial alignment, rather than the broader definition that includes revenue generation activities, operations, process optimisation, and capability development I think appropriate

Behaviours are integrated into the processes of any enterprise, together they make up what is commonly called ‘Culture’. Again, these do not evolve without senior management taking control, and being seen to do so, thus enabling the processes to evolve in a direction consistent with the objectives of the enterprise.

Are the behaviours in your enterprise all contributing to the objectives, or are they disconnected, the KPI’s just a set of optimistic benchmarks dreamed up in the boardroom designed more to intimidate than motivate?

 

 

How to build a super effective customer ‘Persona’

How to build a super effective customer ‘Persona’

 

Who is your ideal customer, the one who will not haggle the price, who loves the product you sell, and proselytises for you? Knowing that person in great detail would be marketing and commercial gold.

Like all gold, it is hard to find, subject to all sorts of distractions and false starts, but immensely valuable when discovered, and discovery is usually incremental, rather than a ‘eureka’ moment. This means it is also a demanding challenge.

What is often also forgotten in the effort to define that ideal customer, is that every customer also has an ideal supplier, one who meets all their needs, delivering value in excess of the cost to them. It is a two way street, and a relationship only prospers where there is value being delivered to both parties.

It is always worth remembering that customers will buy when they are ready to buy, and that is not necessarily when you are ready to sell.  The name of the game is to be around when they are ready, with the credibility and value proposition that is compelling to them, which means that the better you understand them, the more effective your revenue generation efforts will be.

How do you define your ideal customers?

I have used the ‘Who, What, Where, When, Why & How’ model extensively to define the ideal customer with my clients. It is an iterative process, deceptively demanding, as it requires decisions about who is not an ideal customer, and therefore excluded from primary consideration. Choices like this are challenging, but necessary, particularly for small and medium businesses which do not have the luxury of a big pot of marketing money, you have to get it right or waste limited resources.

Following is a quick explanation that will enable you to at least start the process

Who: Is the demographics they may exhibit. Where they live, age, sex, education, job,  and all the other quantitative characteristics that are available. These parameters are pretty much all that  was easily available in any detail until digital tools came along.

What: are their behaviours. Do they go to the opera or rock concerts, perhaps both, do  they travel overseas for holidays, what sort of causes, if any, do they support, are they likely to demonstrate their beliefs publicly, or are they just internal. All the sorts of things that offer a picture of how they think, feel, and behave in all sorts of situations.

Where: will you find them digitally, as well as in the analogue (perhaps real) world, and what means can you use to make a connection. Are they likely to be avid users of Facebook, Linkedin or other social platforms, are they comfortable buying on line, do they ‘showroom’ digitally then visit the physical retailer, do they get their news from Facebook and Reddit, or more focused news sites, or even, surprise, surprise, newspapers and magazines.

When: will they be ready to buy? In some markets this is not a big issue, but in many, it is a huge one. For example, if you want to sell to government, the best time to be on the doorstep with an offer is towards the end of the financial year when departments have unspent money left in their budgets. Normally there is a Strong ‘use it or lose it’ mindset in government departments, and they are loathe to lose it, as that will reduce their bargaining power at the next budget round. In private enterprise, the two items that require watching are the budget cycles, getting a major purchase into the budget is often a part of the game, and being aware of changes in the customer and markets that often acts as a catalyst is the second. Takeovers, personnel movements, large contracts being let, are all situations where change is occurring, and the enterprise is normally more receptive to new ideas, and new suppliers.

Why: should they respond to your entreaties, to do whatever it is you are asking of them. What is your value proposition to them? What promise of a new and better tomorrow can you deliver? What can you deliver that is different and more valuable to them than any alternative? If you cannot answer these questions, it will come down to price, and winning a price war is a great way to go broke.

How: will you service the transaction, and the subsequent relationship that may emerge. This is usually down to questions about your business model and the ‘fit’ that has with the customer.

An essential adjunct to the creation of a persona is to create a customer journey map. This is the process that your ideal customer will go through from the initial itch, to awareness, consideration, preference, then to the transaction. This will enable you to use the persona to inject yourself into the decision making and buying process a customer is going through to optimise your chances of success.

I would be delighted to assist you to work through the process, it will deliver significant rewards when done well and implemented effectively.