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 enablers of 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 ‘get it done’ attitude. Things not done today are missed opportunities of tommorrow. The compounding effect is huge and can’t be built away. Succeeding in a competitive landscape is a race against time. Every day.
3. Results > busy
What has been your impact on business today, last week, this month? Being busy is not enough. Target results, 90/10 solutions, prioritize by impact, consider cost vs. benefit (ROI). Make fast decisions. Keep your management structure flat (managers should have at least 3-5 direct reports – individual contributors). 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. Every day.
5. Reframe expenses
Each $1 expense is either revenue or efficiency driver. Does it increase revenues or improves efficiency? Yes? How exactly (explain the pathway)? 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 your 1:1 to bear bones:
- What has been your impact on business last month?
- What can be improved (you, I, company)?