Episode E.012 Creating People Metrics

Talent (Discretionary Performance)
We titled the Talent Dashboard as ‘Discretionary Performance’ because of the problem with goal setting and performance standards are low expectations. Most people can work at 30-40% of their capability and stay employed – just mailing it in because of low standards – got any?. The secret of the most successful companies is their ability to tap into the remaining 60%. The challenge – it is up to them to choose, you cannot beat out of them and you don’t have enough money to bribe it. 

There are three drivers or causes for people being willing to perform beyond what is required, how to stimulate Discretionary Performance:

• Leadership
• Teamwork 
• Mastery

Leadership is about presence and the day-to-day focus of the owner’s and their representatives on the job. What really matters is what the direct supervisor wants, what expectations they set, and how they represent the company. 

There are three drivers or causes for providing a continuous focus on the right things:

• Participation – how present is the leader and in-touch with what is happening in their work group, it is not about a specific leadership style or approach to leading and managing – it is a measure of connection;
• Contribution – when the leader is present – what is their focus? Are they focused on completing a series of work assignments or the work groups contribution to the company, are they listening to employees to eliminate barriers – it is a measure of focus;
• Character – how well do they model the company’s values, do they reinforce those values in others – it is a measure of the company’s culture and its operating values.

Teamwork is about how well people in the same group work together. Some positions require solo performance, most require teamwork. Creating it is a little more difficult than one-on-one leadership because of the dynamics of groups.

There are three drivers or causes for creating teamwork:

• Significance of Membership – how important is membership in the work group to the individual -  used to measure the level of commitment; 
• Group Norms – what are the informal rules you must follow to be an accepted member, an informal leader and outsider – used to measure formal leaders representation of company’s values;
• Informal Leadership – do group members exercise peer leadership to achieve work objectives, what values do they represent and are those compatible with the company’s values - used to measure alignment with company’s values.

Mastery is about how the organization hires, promotes, and uses technology to multiply performance. Job fit is critical because putting people into positions who do not have the knowledge or personality to be successful is a waste of time and money – no matter how hard anybody tries. Once you have the right person in the job, what is the nature of the psychological contract about competence – are they motivated to improve and is the company investing in developing their skills. 

There are three drivers or causes for creating skill masterly:

• Job Fit – there are two factors when selecting an individual for a job, are they eligible (do they have the education, work experience, etc.) and are they suitable (their character and personality a fit for the position or group) – it is a measure of the job descriptions and the recruiting / selection process;
• Skills Development – there are two things to consider, first is the psychological contract (a set of expectations) between the individual and the organization where the person will take advantage of any opportunity to improve their skills, and a commitment by the organization to provide as much formal training as possible – it is a measure of training;
• ​Autonomation – this is nothing more than the effective use of technology, does the organization look for ways to use technology to not only remove mundane or dangerous tasks, but to find ways to enhance performance – it is a measure of technology.

Next show: E.013 Creating Results Metrics