Date:
6/1/2023
Min to read:

The problem with performance management - and how to fix it

In too many companies, too many people are stuck in a vicious cycle of endless meetings - to the point that in order to get any work done, they have to multi-task, paying little attention in most meetings. As a result of split attention, it becomes hard to get anything done in meetings, which typically spawns yet more meetings to pick up the slack. This burden is worse for a company's most skilled people, who tend to be pulled into every issue. Not only does this burn them out; it also means they have little time to develop their colleagues' skills. This dynamic is the direct result of the most common performance management systems. High performance in teams and organizations hinges on the frequency and quality of feedback loops. The "Law of Requisite Variety" suggests that systems must match the complexity of their inputs to perform well. Effective performance management should balance tactical and adaptive performance, ensuring both flexibility and alignment. To achieve this balance, organizations need high-quality, high-frequency feedback loops that motivate teams through play, purpose, and potential. Feedback should be mostly asynchronous to allow for deeper thinking and eliminate bottlenecks. Medium-form writing is effective for coaching and teaching first principles. By focusing on motivation, strategy, problem-solving, processes, and skills, organizations can create environments that drive sustainable high performance and adaptability in dynamic conditions.