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Newsletter -October 2011
Business vs Performance Issues
Much of the frustration around not meeting business goals stems from the illusion that focusing on results, the business issue, will somehow magically improve the result. The problem is that many managers confuse business and performance issues. Hammering the failure to achieve the desired results and entreating people to ‘try harder’, or trying to treat the result as a business problem, won’t change the result. Only focusing on performance, the choices of behaviours and skills people make to achieve a result, can change the result.
Take the simple example of a manager who is frustrated that a subordinate consistently fails to produce a critical monthly management report on time, impeding management decision making. The manager holds a business meeting to solve the problem. The subordinate says that he can’t get the figures he needs from his peer in Accounts, in time to produce the report by the deadline each month. The subordinate suggests that the only solution is for the manager to approach his peer manager in Accounts – problem solved. Well not really. Now the subordinate’s peer in Accounts is really peeved that the subordinate went over his head. Each month he manages to find legitimate reasons not to provide the required figures. Result – the management report is still late every month.
The real issue here is the performance of the subordinate in not being able to build a productive relationship with his peer in Accounts. The manager’s focus needs to be on coaching the subordinate in relationship building, not on treating the issue as a business problem and trying to solve it by going to the Accounts Manager.
Next time someone is not achieving the desired results, look at the business and performance issues separately. For example, one member of an otherwise successful sales team is consistently failing to meet her sales targets. She uses the same approach that is being used successfully by others in the sales team – mailing flyers to prospects and then following up with a phone call to make appointments for a sales call.
The team’s manager has regularly counselled her about her failure to meet her targets and that she is last on the sales league table. The manager has given her additional support to complete her paper work to allow her more time for prospecting. He knows she is making the follow up phone calls, but still the sales aren’t forthcoming. She is following a tried and true approach, but is not getting the required results.
Clearly the issue is not a business problem, but a performance problem. Some of the questions that need answering are:
Is she choosing the appropriate behaviours and responses in conducting the follow up phone calls?
Does she have the skills to quickly establish rapport and engage the prospect?
Can she overcome objections to making an appointment?
In the sales meeting, can she create interest, sell the benefits, overcome objections and close the sale?
Where is she making inappropriate responses or lacking the skills she needs?
If you want to improve the results of your employees, first, learn to recognise the difference between a business issue and a performance issue. Then separate discussions about business issues from discussions about performance issues. The critical thing is that you deal with the underlying performance issue as well as the business issue, otherwise the business issue will recur.
You need to look at the choices of response the individual is making, their skill level to make the best responses and their attitude (willingness)to apply the skills needed to make the best responses.
To learn more about managing performance go to:
www.developmentinpractice.com.au/solutions/performance-management.html
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