Performance culture

The core of success lies in a culture of performance. It’s the pivotal factor in whether you thrive in establishing an outstanding business or merely defer challenges. Moreover, it forms the foundation for all metrics, OKRs, performance evaluations, and promotions. This ethos cannot be replicated or imposed. Authenticity is paramount; you must embody it, immerse yourself in it, and let it govern your actions. The effectiveness of any metric is contingent on the strength of your performance culture.

1. Empowerment and accountability

Empowerment and accountability are the key enablers of all high performing organizations. Leaders and teams with 100% focus on a product part or strategic initiatives equipped with decision making authority will turn goals into reality. The best way to undercut any initiative is to dilute the focus with multiple projects, applications, KPIs. Organize your teams around products. “In order to own a product or service, we typically organize as small teams, typically five to ten people, that are each in charge of a single component of a product or service. The components must be small enough for the team to fully own, from ideation through operations.” (Bryan Landerman, AWS). Read the full article here

2. Constant sense of urgency

You need to create a constant sense of urgency. It does not mean an atmosphere of stress, but rather ‘get it done now’ attitude. Things not done today are missed opportunities of tomorrow. The loss of missed opportunities is compounding every day and can’t be undone. Your entrepreneurial journey is race against time. Every day.

3. Results count – not emails!

What has been your impact on business today, last week, this month? Being busy is meaningless. What counts are the results, not your meetings, not your emails. Target 90/10 solutions, prioritize by impact, always measure progress against goals. Make quick decisions and cut losses and losers fast! Every day.

4. Show it! (Lead by example)

Be present (mentally and physically in the office!). Be focused. Be driven. Start on time. Stop activities and meetings with no impact. If you are founder, pay yourself small fix and large variable. Make sure people know. Strive for impact and efficiency. Expect the same from others. Every day.

5. Reframe expenses

Each $1 expense is either revenue or efficiency driver. Does it increase revenues or improves efficiency? Yes? How? Explain. What is the 2nd best alternative?

Deploy Zero Based Budgeting. Do not extrapolate your budgets from the past. Regularly revisit your assumptions – (re)start from scratch: what resources do I need achieve my goals?

5. Hiring & Compensation

Hire problem solvers. Pointing out problems is not enough. You need people, who can fix them. Pay for results not tenure. Prioritize key roles and high performers. Kill lifestyle benefits – people should come to work for the joy of solving problems. Align remuneration with company results – increase variable compensation. Make sure it works (gets paid out). Read more about performance compensation.

6. Performance reviews

You can simplify one-on-ones to skulls and bones:

1. What has been your impact on business last month?
2. What can be improved (you, I, company)?