Episode D.006 The Relationship Between Productivity & Performance

The following is the closest cause and effect relationship I have used in client organizations on performance. It is based on solid research conducted in the 1950's and 60's on what factors have the greatest impact on employee performance.

Here are those findings and the core of my work for over 4 decades with clients.

1. Work Processes
2. Job Fit
3. Skill Mastery
4. Peer Leadership
5. Supervisory Leadership & Management
6. Organizational Culture

We have covered some aspects of each last week, now is the time to drill down and understand what we can affect, who we need to hire, and what has to develop naturally.

Some Definitions

• Work Processes: the work processes have been mapped to remove non-value activities (the 3 Pillars of Lean) creating a challenging and doable position.
• Job Fit: based on the application of lean to a process (therefore all of the positions), what type of individual (eligibility & suitability) do we need in the position.
• Skill Mastery: onboarding a new employee to reduce their period of incompetence (when they are earning back salary) and the development of skills over time. Competence is an easier problem to deal with than Commitment.
• Peer Leadership: group functioning and norms; how much and what type of informal leadership is exercised between group members. How does the formal leader deal with it - augmentation or competition.
• Supervisory Leadership & Management: the individual with immediate authority over the position with a focus on problem solving, quality, skill development, and team building.
• Culture: the boundaries of acceptable behavior that reinforces productivity (stuff) and performance (people).

The Big Why - Discretionary Performance
This is one of the more powerful and yet simple concepts in the people business. It describes the difference between the standards for a specific job or working in general and the capability of the person. Numerous surveys have been done on the following question: "How hard do you have to work to keep your job?" I first saw this study in the late 1970's and have followed it since. Guess what - it hasn't changed and the answer is distressing: 30%. That means a person can come to work, give 30% of their capability and go home at night knowing they will have a job tomorrow.

Here is the power of this insight: if you create an environment where people choose to work harder than they have to - they will. These 6 in order will get you closer to that outcome.