Modern Performance Management Strategies for Business Success

As I consult with clients across industries, I see people working hard. But I also see wasted effort. The waste occurs because team members did not have a clear end-state. Instead, they create a lot of action through goal setting. The caution is that action does not equal progress. To help you, here is the outcome-driven technique I use with my team and clients. When executed well, it can improve performance immediately.   1. Start with the end in mind and describe what it looks like. Goal setting is valuable. It measures action well–but it assumes that if X happens, Y will occur. For example, if you take a project management class, then you will be a better project manager. You can see how this plays out. The person enrolls in and takes the project management course, and then checks the box. Goal completed. But why take the course? What if the intent was this instead: “By the end of June, I need you to be leading x kind of project without me needing to be involved in its daily operations”? This helps better establish what success would look like for the individual. This approach defines the end state and the why we are seeking in their development. In doing so, it changes the conversation from “attend a course” (where it assumes I know the solution) to “how do we help you achieve that?” (which engages the person to define potential solutions). 2. After the end is established, discuss options to achieve it. This step is a key difference from most performance reviews, because instead of the leader defining the action (if…then…), it places accountability on the individual to think about what and where they need development to “get there.” Is it a course? Is it shadowing another person? Is it a confidence challenge? By approaching this through establishing what the end state looks like, the review shifts into a coaching discussion where root causes and options are defined and refined, creating a better plan to pursue. 3. Establish goals to measure progress toward the end state. This is when goals become useful. They establish points along the way to check progress toward the agreed-upon outcome. If a goal is met, then we should reflect to see if it helped move toward the end state. If it did not, then an additional action or goal may be needed. In the example above, if the person did complete the project management course, but they are not ready to lead the project without your involvement, then why? Did the course not address their development need? Is there still something else needed to get them ready to lead? The shift from goal-leading to outcome-driven performance development is profound. It is not easy or fast on the front-end. It requires more conversation and coaching. But in the long run, by engaging the team members in their development, the quality and value of their performance will improve substantially. #leadfortomorrow #outcomes

I’m a big believer in OKRs (objective, key result) OKRs are an effective tool for driving alignment across levels within an organization and for establishing a more standard approach to performance management In several of my past companies, I’ve been part of the core team responsible for scaling OKR management from company level to leader to departmental to manager to IC A few tips: 1) max of 3-5 OKRs OKRs are not meant to measure everything you do; just the key intiatives to drive impact and focus 2) have clear company OKRs so that leaders can tie their OKRs to company for thread of alignment 3) implement a regular cadence (I recommend monthly) for reviewing progress to OKRs and challenges and plan to close gap. I would have a monthly team meeting where would review mine and my directs to see where trending 4) Establish what good looks like (generally OKRs should be aspirational so an 85% achievement is good across the board. 100% could suggest you had too easy OKRs or perhaps burnt out teams) 5) Link performance management to OKRs. This helps with having a standard for what good performance looks like across disparate teams. For example, in past companies where we had bonus tied to non quota achievement OKR achievement generally informed about 85%+of bonus with discretion from manager for things outside of it 6) Review OKRs to make sure OKRs link to core objectives of an org. Example, if you are in a CS org where retention is the name of the game, a large majority of your OKR should link to effective renewals management. Your function determines the focus. 7) A mix of outcome and process OKRs is fine, but ensure at least 50/50 are outcome focused (aka you impacted X metric - outcome, vs you did Y thing or delivered z) 8) implement calibrations across teams with leaders present to balance the different approaches and potential bias leaders have to rating teams Anything else you’d add? #okrs #performancemanagement

This is your friendly planning season reminder that if you are ONLY using some sort of effort/outcome score to prioritize your roadmap, you’re only part way there. Effort/outcome scores are a great way to identify the most efficient things to do – but they don’t account for: ❌ % of goals met ❌ Goal distribution across your portfolio ❌ Key foundational levers ❌ R&D/Innovation ❌ Run the Engine / Care and Feeding ❌ Timing factors ❌ Competitive threats ❌ Changes in the market ❌ Changes in technology Almost invariably (YMMV), your outcomes will suffer BUT it won’t be clear why since you prioritized your roadmap! Better is to: ✅ Create a goal-oriented roadmap so that every effort is aligned with a strategic goal (this is the O from your OKRs, if you use those) ✅ Develop clear success metrics and manage to those metrics, not just perception ✅ Determine what % of your team’s efforts should be applied to each objective across your portfolio, including things like Innovation (fun!) and Care and Feeding (oft forgotten) ✅ Use MOAR - Metrics Over Available Resources - as your scoring tool, as this will help you align efforts with those goals and account for outcomes in addition to monetization (I know, but leading indicators, trust me) ✅  Implement Responsive Product Portfolio Management, where you align, allocate/re-allocate, and adjust in an iterative cycle based on the metrics you’re seeing, and changes in the market/tech/competition. We all end up in annual planning, and the New Year can be a great time to kick off excellent new product habits. See if you can get your team aligned around these and watch the magic happen 🪄 ______ I’m Lisa Schneider. As a fractional CPO, I help founders and CEOs identify the right things to build to align with business goals, provide frameworks for prioritization and cross-functional alignment, build outcome-based roadmaps, and streamline teams and processes to deliver faster. Reach out any time if you’d like to learn more or just brainstorm. 🔔 Follow me and ring the bell on my profile to get notified of new posts. #startup #fractionalcpo #roadmap #productmanagement #strategicplanning

I stopped performing annual reviews. 99% of the time they don’t increase actual performance.  Give me 2 minutes. I'll show you what I did instead: 👇 𝗦𝗵𝗶𝗳𝘁 𝗬𝗼𝘂𝗿 𝗠𝗶𝗻𝗱𝘀𝗲𝘁 • Break free from traditional annual reviews. • Be a year-round coach, not a once-a-year judge. • Continuous feedback, like a sports coach, is key. 𝗔𝗹𝗶𝗴𝗻 𝗚𝗼𝗮𝗹𝘀 • Avoid misalignment with clear, measurable goals. • Limit to 3 major goals. • Employees set personal goals aligning with these. • Focus: 80% on these goals, 20% on everything else. 𝗠𝗮𝘅𝗶𝗺𝗶𝘇𝗲 𝟭𝘅𝟭 𝗠𝗲𝗲𝘁𝗶𝗻𝗴𝘀 • Essential for ongoing feedback. • Ideal timing: 60 minutes every two weeks. • Discuss progress on top 3 goals. • Address blockers & celebrate successes. 𝗜𝗺𝗽𝗹𝗲𝗺𝗲𝗻𝘁 𝗤𝘂𝗮𝗿𝘁𝗲𝗿𝗹𝘆 𝗖𝗵𝗲𝗰𝗸-𝗜𝗻𝘀 • Extend a regular 1x1 to 90 minutes quarterly. • Explore the employee’s broader career aspirations. • Discuss quarterly performance. • Checkin on personal development (see next) 𝗘𝗺𝗽𝗵𝗮𝘀𝗶𝘇𝗲 𝗣𝗲𝗿𝘀𝗼𝗻𝗮𝗹 𝗗𝗲𝘃𝗲𝗹𝗼𝗽𝗺𝗲𝗻𝘁 • Traditional reviews list too many improvement areas. • Focus on ONE key area for yearly improvement. • Agree on the area together. • Review progress in quarterly sessions.    👇 𝗕𝗼𝗻𝘂𝘀 𝗧𝗶𝗽𝘀 For 𝗘𝗳𝗳𝗲𝗰𝘁𝗶𝘃𝗲 𝗣𝗲𝗿𝗳𝗼𝗿𝗺𝗮𝗻𝗰𝗲 𝗠𝗮𝗻𝗮𝗴𝗲𝗺𝗲𝗻𝘁: 1. Make every 1x1 a coaching opportunity. 2. Consistently give feedback or praise. 3. Avoid canceling 1x1s – they're crucial. 4. Repeated mistakes may indicate a poor fit. 5. Link bonuses to both company and individual goals (50/50 split). Ditch the bureaucracy and transform performance management into a tool for real feedback and personal growth! 📈 _____ Enjoy this? Repost to your network and follow me Scot Chisholm for more! 📌  P.S. I'm writing about how to delegate like a pro this Friday to all my newsletter subscribers. Sign up here: scotchisholm.com  

🚀 𝗘𝗹𝗲𝘃𝗮𝘁𝗶𝗻𝗴 𝗢𝗿𝗴𝗮𝗻𝗶𝘇𝗮𝘁𝗶𝗼𝗻𝗮𝗹 𝗗𝗲𝘃𝗲𝗹𝗼𝗽𝗺𝗲𝗻𝘁: 𝗘𝗺𝗯𝗿𝗮𝗰𝗶𝗻𝗴 𝘁𝗵𝗲 𝟲 𝗣𝘀 𝗙𝗿𝗮𝗺𝗲𝘄𝗼𝗿𝗸 🚀 OD's success hinges on a strategic approach that encompasses every facet of the business. Enter the powerful framework of The Management Sherpa™'s 6 Ps. 🔹𝗣𝗲𝗼𝗽𝗹𝗲: Investing in talent acquisition, development, and retention is paramount. Fostering a culture of empowerment, diversity, and inclusion nurtures employee engagement, innovation, and organizational resilience. ➡ 𝑇𝑎𝑙𝑒𝑛𝑡 𝐴𝑐𝑞𝑢𝑖𝑠𝑖𝑡𝑖𝑜𝑛 | 𝐸𝑚𝑝𝑙𝑜𝑦𝑒𝑒 𝐷𝑒𝑣𝑒𝑙𝑜𝑝𝑚𝑒𝑛𝑡 | 𝐸𝑚𝑝𝑙𝑜𝑦𝑒𝑒 𝐸𝑛𝑔𝑎𝑔𝑒𝑚𝑒𝑛𝑡 | 𝐷𝑖𝑣𝑒𝑟𝑠𝑖𝑡𝑦 𝑎𝑛𝑑 𝐼𝑛𝑐𝑙𝑢𝑠𝑖𝑜𝑛 🔹𝗣𝗮𝗿𝘁𝗻𝗲𝗿𝘀𝗵𝗶𝗽𝘀: Building strategic partnerships with suppliers, stakeholders, and industry peers amplifies collective strengths, expands market reach, and unlocks new opportunities for growth and innovation. ➡ 𝑆𝑡𝑟𝑎𝑡𝑒𝑔𝑖𝑐 𝐴𝑙𝑙𝑖𝑎𝑛𝑐𝑒𝑠 | 𝑆𝑢𝑝𝑝𝑙𝑖𝑒𝑟 𝑅𝑒𝑙𝑎𝑡𝑖𝑜𝑛𝑠ℎ𝑖𝑝𝑠 | 𝑆𝑡𝑎𝑘𝑒ℎ𝑜𝑙𝑑𝑒𝑟 𝐸𝑛𝑔𝑎𝑔𝑒𝑚𝑒𝑛𝑡 | 𝐼𝑛𝑑𝑢𝑠𝑡𝑟𝑦 𝐶𝑜𝑙𝑙𝑎𝑏𝑜𝑟𝑎𝑡𝑖𝑜𝑛𝑠 🔹𝗣𝗹𝗮𝘁𝗳𝗼𝗿𝗺𝘀 (𝗦𝘁𝗿𝗮𝘁𝗲𝗴𝗶𝗲𝘀): Clarifying mission, vision, and values, along with setting clear goals and objectives, aligns efforts across the organization. Leveraging cutting-edge technologies and digital platforms enables agile adaptation to evolving market dynamics. ➡ 𝑀𝑖𝑠𝑠𝑖𝑜𝑛, 𝑉𝑖𝑠𝑖𝑜𝑛, 𝑎𝑛𝑑 𝑉𝑎𝑙𝑢𝑒𝑠 | 𝑆𝑡𝑟𝑎𝑡𝑒𝑔𝑖𝑐 𝑃𝑙𝑎𝑛𝑛𝑖𝑛𝑔 | 𝐷𝑖𝑔𝑖𝑡𝑎𝑙 𝑇𝑟𝑎𝑛𝑠𝑓𝑜𝑟𝑚𝑎𝑡𝑖𝑜𝑛 | 𝑀𝑎𝑟𝑘𝑒𝑡 𝑃𝑜𝑠𝑖𝑡𝑖𝑜𝑛𝑖𝑛𝑔 🔹𝗣𝗿𝗼𝗰𝗲𝘀𝘀𝗲𝘀: Continuous evaluation, optimization, and automation of workflows enhance productivity, quality, and cost-effectiveness. Embracing lean principles and agile methodologies fosters adaptability and responsiveness to changing business landscapes. ➡ 𝐿𝑒𝑎𝑛 𝑃𝑟𝑖𝑛𝑐𝑖𝑝𝑙𝑒𝑠 | 𝐴𝑔𝑖𝑙𝑒 𝑀𝑒𝑡ℎ𝑜𝑑𝑜𝑙𝑜𝑔𝑖𝑒𝑠 | 𝐶𝑜𝑛𝑡𝑖𝑛𝑢𝑜𝑢𝑠 𝐼𝑚𝑝𝑟𝑜𝑣𝑒𝑚𝑒𝑛𝑡 | 𝑅𝑖𝑠𝑘 𝑀𝑎𝑛𝑎𝑔𝑒𝑚𝑒𝑛𝑡 🔹𝗣𝗿𝗼𝗴𝗿𝗮𝗺𝘀 (𝗧𝗮𝗰𝘁𝗶𝗰𝘀): Implementing targeted programs and initiatives aligned with organizational goals drives progress and performance. From training and development to marketing campaigns and customer experience initiatives, tactical interventions translate strategy into tangible results. ➡ 𝑇𝑟𝑎𝑖𝑛𝑖𝑛𝑔 𝑎𝑛𝑑 𝐷𝑒𝑣𝑒𝑙𝑜𝑝𝑚𝑒𝑛𝑡 | 𝑀𝑎𝑟𝑘𝑒𝑡𝑖𝑛𝑔 𝐶𝑎𝑚𝑝𝑎𝑖𝑔𝑛𝑠 | 𝐶𝑢𝑠𝑡𝑜𝑚𝑒𝑟 𝐸𝑥𝑝𝑒𝑟𝑖𝑒𝑛𝑐𝑒 𝐼𝑛𝑖𝑡𝑖𝑎𝑡𝑖𝑣𝑒𝑠 | 𝑃𝑟𝑜𝑑𝑢𝑐𝑡 𝑎𝑛𝑑 𝑆𝑒𝑟𝑣𝑖𝑐𝑒 𝐼𝑛𝑛𝑜𝑣𝑎𝑡𝑖𝑜𝑛 🔹𝗣𝗲𝗿𝗳𝗼𝗿𝗺𝗮𝗻𝗰𝗲: Establishing key performance indicators (KPIs), conducting regular assessments, and fostering a culture of accountability empower teams to track progress, identify areas for enhancement, and celebrate achievements. ➡ 𝐾𝑒𝑦 𝑃𝑒𝑟𝑓𝑜𝑟𝑚𝑎𝑛𝑐𝑒 𝐼𝑛𝑑𝑖𝑐𝑎𝑡𝑜𝑟𝑠 (𝐾𝑃𝐼𝑠) | 𝑃𝑒𝑟𝑓𝑜𝑟𝑚𝑎𝑛𝑐𝑒 𝑀𝑎𝑛𝑎𝑔𝑒𝑚𝑒𝑛𝑡 | 𝑅𝑒𝑐𝑜𝑔𝑛𝑖𝑡𝑖𝑜𝑛 𝑎𝑛𝑑 𝑅𝑒𝑤𝑎𝑟𝑑𝑠 | 𝐷𝑎𝑡𝑎-𝑑𝑟𝑖𝑣𝑒𝑛 𝐷𝑒𝑐𝑖𝑠𝑖𝑜𝑛 𝑀𝑎𝑘𝑖𝑛𝑔

It often begins with a well-intentioned RevOps leader whose reverse capacity model unexpectedly sets the year's targets... 🤦♂️ Year after year, I see the same mistake across organizations: a failure to incorporate business reality and 'time-to-impact' considerations into planning. Many organizations' planning cycles are built around their respective fiscal years, not around actual business cycles, seasonality, segments, and time-to-impact. Too many companies operate under the assumption that the year is a 'ready-set-go' race starting on January 1st. The problem? This approach is completely disconnected from the business reality that time takes time. Deep, I know. 🤣 In the B2B SaaS world, especially in the enterprise segment, sales cycles can be llooonnnngggg. Ignoring these planning realities often leads to misaligned strategies, missed opportunities, and missed targets. This realization hits harder now, as for the first time in over a decade and a half, I'm not involved in the whirlwind of planning for the upcoming year. I'm not sure whether to have FOMO, or be seriously relieved. 😬 Here's my typical process to ensure pragmatic planning alignment: ✅ Align all teams around the significance of 'time-to-impact' in planning. ✅ Begin by critically reassessing current capacity models considering the historical sales cycle durations and lead conversion durations. ✅ Review data on actual win rates, deal velocity, lead-to-revenue durations, and conversion rates and velocity by segment and source. ✅ Conduct regular, deep discussions with revenue teams to weave their front-line insights into our strategic approach. ✅ Ensure lockstep relationships across the entire organization and especially with finance to coordinate the nuances of long sales cycles. ✅ Revise capacity models to reflect these time elements, anticipating required production to ensure targets are met in the required period of impact. In other words, we may need to build qualified pipeline 6-9 months in advance of the needed impact period. ✅ Continuously review and recalibrate strategies in response to actual performance data and market changes. ✅ Ensure transparent communication with all stakeholders about strategy changes and their reasons. ✅ Regularly evaluate the effectiveness of strategies, remaining open to further adjustments. ✅ Share our successes and learnings to foster an environment of continuous improvement and strategic alignment. Ultimately, move to a dynamic forecasting model across the organization, such as rolling quarterly planning, that adapts to changes in sales cycles, market conditions, and business cycles...And PLEASE, whatever you do, don't take that capacity model as an absolute truth. 👀 I'm curious to hear from others: How do you ensure your planning incorporates business realities and real 'time-to-impact' considerations? #opentohelp #2024planning #givingthanks

Recently, I've been reviewing various methodologies for company alignment, goal setting, and execution. With an endless number of approaches available, and everyone having a personal favorite, one key takeaway stands out: the specific methodology is less crucial than the discipline to consistently apply the methodology you select. Select one, adapt it to your business and style, and establish the rhythm and discipline to use it consistently. A methodology that resonates with me is "The 4 Disciplines of Execution" (4DX), from the book written by Chris McChesney, Sean Covey, and Jim Huling. 1️⃣ Define your Wildly Important Goals (WIGs):  Focus on a few high-impact goals rather than being spread thin across numerous objectives. 2️⃣ Act on Leading Measures: Identify the leading indicators to monitor daily or weekly that are pivotal in achieving your WIGs. 3️⃣ Keep a Compelling Scoreboard: Notice it refers to a "scoreboard", not a "scorecard". A scoreboard drives transparency across the team and is a key element of driving behavior and accountability. 4️⃣ Create a Cadence of Accountability: Regular check-ins and transparent conversations ensure you're on track and on pace for achieving your WIGs. Thomas Monson once said, "When performance is measured, performance improves. When performance is measured and reported back, the rate of improvement accelerates." I like the 4DX methodology as it's simple and effective in driving alignment, execution, and performance. But, I'm always looking for new methodologies and strategies to consider. What's your go-to methodology for creating alignment, driving execution, and increasing performance? #saas #leadership #4dx #execution

Is there a modern and more effective approach to goal setting? Because the traditional SMART goal-setting approach, while clear and feasible, may limit ambition and broader organizational alignment. Transitioning to the FAST model, which emphasizes frequent discussions, ambitious targets, specificity with actionable metrics, and transparency, can be transformative. This approach not only refines goal-setting but also fosters a culture of ambition, continuous dialogue, and transparency, ensuring alignment with business strategies and promoting agility in the competitive consumer goods market. According to conventional wisdom, goals should be specific, measurable, achievable, realistic, and time-bound. But SMART goals undervalue ambition, focus narrowly on individual performance, and ignore the importance of discussing goals throughout the year. To drive strategy execution, leaders should instead set goals that are FAST — frequently discussed, ambitious, specific, and transparent. With Goals, FAST Beats SMART To execute strategy, leaders must set ambitious targets, translate them into specific metrics and milestones, make them transparent throughout the organization, and discuss progress frequently. 1. Set Ambitious Goals 2. Make Goals Transparent 3. Make Goals Specific With Metrics and Milestones 4. Discuss Goals Frequently Goals are a powerful tool to drive strategy execution. To harness their potential, leaders must move beyond the conventional wisdom of SMART goals and their entrenched practices. Instead, they need to think in terms of being FAST, by having frequent discussions about goals, setting ambitious targets, translating them into specific metrics and milestones, and making them public for everyone to see. This is a brilliant article from MIT Sloan Management Review about strategic agility and effective goal setting and performance management. The link to the full article is in the comment. #ecommert #management #leadership #performancemanagement #futureofwork

You have a Management Operating System – do you know what it is? Is it effective? In today’s fast-paced business environment, an effective Management Operating System (#MOS) is no longer a luxury - it’s a necessity. As a leader aligning strategy with execution, ensuring enterprise-wide collaboration, and driving continual improvement are integral to success and can all be achieved through and effective MOS. To drive success, a leadership team needs to have the right conversations, at the right time, at the right level, to facilitate decisions based on the right information. So how do you put a system in place to achieve that? Here are the steps: 1)      Start with your purpose: As Simon Sinek states, you have to #startwithwhy. You can’t solve for what is important until you know where your organization is trying to achieve. 2)      Define what success looks like: use measurable objectives and key results (#OKRs). Define what success looks like for your organization in the current period. 3)      Identify your external requirements: every team has a set of external requirements that you don’t control.  Board meetings, your boss’s meetings, reporting to the street. What are the deliverables required to meet those deadlines? 4)      Identify your internal requirements: your team has its own requirements. A business has to focus on daily operations, contracts, employee engagement, 1 on 1 meetings, etc. 5)      Schedule your routine: build a meeting cadence to get alignment on your external and internal deliverables ahead of their due dates. Build reviews of your OKRs into those routine meetings to drive execution. 6)      Adjust the routine: your plan, do, check, act review of the routine will drive adjustment as you better understand and flush out additional deliverables. 7)      Tighten up your meeting hygiene to elevate performance: pre-meeting agendas with pre-reads, and post-meeting summaries with defined actions / decisions will drive efficiency among the team. 8)      Increase Accountability: have an action list that is tracked with due dates assigned that gets reviewed regularly with the team. #Leadership #ChiefOfStaff #Management #BusinessStrategy #ContinuousImprovement #OperationalExcellence #EmployeeEngagement #BusinessGrowth

"I want us to build a culture of excellence." This was the start to a memo by Jack Dorsey of Block to employees. He went on to take aim at the company's Performance Management process and proposed opportunities to yield the culture of excellence through effective management of performance, mainly: 1) Performance is not an annual event to manage, but an ongoing commitment to excellence. If a company views Performance Management as an annual review event versus a process that helps to extract higher performance and requires commitment by all throughout the year, then they are leaving much performance on the table. 2) A lack of transparency hinders the feedback loops to performance. Jack Dorsey articulated this as "Everyone deserves to know where they stand and how to improve." Without transparency, a company creates distoritions to feedback cycles. 3) Performance Improvement Plans (PIPs) are gone. Instead, it's expected that managers hold their teams accountable to a high performance standard AND manage performance accordingly (versus relying on a PIP process that lacks nuance and the ability to actually improve performance). 4) Finally, raise the performance expectations and hold people accountable to the standard. Jack Dorsey states, "If we don't have the right leaders and can't evaluate them against an ever-increasing bar, everything suffers. We will not tolerate mediocrity or low performance from our leads. You have my commitment that we will hold a very high bar to all of them, and act extremely fast if things are clearly not working out." From my POV, it's great to see Jack Dorsey clearly outline his principles for managing performance and he is aligning the Performance Management process to yield the desired outcomes.