How Much Do You Hate Performance Reviews? by Bob Sutton

Related: The Trouble with Performance Reviews by Jeffrey Pfeffer – Deming and Performance Appraisal – Performance Appraisals, Good Execution is not the Solution?

Lay Off the Layoffs by Jeffrey Pfeffer

Related: Five Managerial Fallacies Concerning Layoffs – Honda has Never had Layoffs and has been Profitable Every Year – The Trouble with Performance Reviews by Jeffrey Pfeffer – Cutting Hours Instead of People – Firing Workers Isn’t Fixing Problems

In, The Seven Habits of Highly Effective People, Steven Covey discusses the circle of control, circle of influence and circle of concern. This provides a good framework from which to view issues as you look for improvement strategies.

Within your circle of control you have much more autonomy and have less need to win others over to your plan. However, in practice, even here, you benefit from winning over those who are involved (for example you are their boss).

Our circle of concern covers those things we worry about. Often, we believe because we worry we should find solutions. Problems that fall into this category (but outside our circle of influence) however often prove difficult to tackle. And often people don’t understand why they get frustrated in this case. You can save your energy for more productive activities by seeing some things are outside your influence and avoid wasting your energy on them.

A problem with this, I see in practice however, is that if you are creative many things that people think are beyond their influence are not. With some imagination you can find ways to have influence. Good ideas are powerful. And often that is all that is needed for influence is offering a good idea.

Understanding to what extent an issue is within your control or influence can help a great deal in determining good strategies. Where you have a good chance to influence the process you can focus on strategies that may require much more of your participation to be successfully adopted. As you have less influence such a strategy is likely a poor one.

You should remember, that there is a temporal component to your circle of influence. On some current issue, I may have a very low chance of success for getting the organization to adopt an improvement I think is best. But certain actions can build the understanding that will allow me later to have more influence. This can even be completely separate from how people normally think of circle of influence. By building an organization that moves toward data based decision making and therefore reduces HiPPO (Highest Paid Person’s Opinion) decision making I increase my ability to influence decision making in the future.

Long term thinking is a very powerful, and much under-practiced, strategy. Your influence within an organization is limited today but has great potential to expand, if you act wisely.

Thinking about the extent a current issue falls within your sphere of influence is important it determining the best strategies. But the most valuable insight is to understand how import your sphere of influence is. It determines what strategies you can pursue. And building your sphere of influence should be part of your decision making process.

By taking the long view you can put yourself in good positions to have influence on decisions. There are many ways to do this. My preferred method is fairly boring. Prove yourself to be valuable and you will gain influence. Help people solve their problems. They will be inclined to listen to your ideas. Provide people useful management tools and help them apply them successfully. Help get people, that you know are good, opportunities to succeed. Often this gains you two allies (the person you helped gain the opportunity for and the person that was looking for someone to step in). Work hard and deliver what is important. It isn’t some secret sauce for quick success but if you make those around you successful you grow your circle of influence.

Related: How to Improve – Helping Employees Improve – Operational Excellence – Management Advice Failures – Management Improvement

Gipsie B. Ranney has a great new article – The Trouble with Incentives: They Work

She sums it up very well:

Find more articles on management improvement in the Curious Cat Management Improvement Library, including: An Interim Report on Motivation in the Workplace by Gipsie Ranney, Remembering NUMMI by Gipsie Ranney and Improving Problem Solving by Ian Bradbury and Gipsie Ranney.

When you can’t prevent arbitrary targets and rewards based on meeting them the strategy I attempt to put in place is figure out how the system will be distorted in order to meet those targets and then put in measures that will discourage such distortions. It isn’t perfect but can help prevent some of the worst distortions (and degradation of system-wide performance they cause).

Related: Righter Incentivization – The Defect Black Market – Dr. Deming on the problems with managing with targets (and incentives based on them) – Extrinsic Incentives Kill Creativity

This is an interesting video on Deming and American management (by the BBC in 1992): Prophet Unheard. It includes some nice old footage of Deming in Japan. The importance of respect for people is clear and the video also touches on the idea the danger of relying on data (when you do not understand variation and that many important matters and unmeasurable). The video features many snippets of Dr. Deming speaking and includes Don Peterson, Ford CEO; Clare Crawford Mason, If Japan Can, Why Can’t We producer; and Myron Tribus.

Related: Dr. Deming Webcast on the 5 Deadly Diseases – Red Bead Experiment Webcast – Performance without Appraisal – management webcasts

Part two of the documentary explores the Deming Prize, understanding data and the PDSA cycle:
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Some things about what people do also have their roots in psychology. Deming had an understanding of psychology as one of 4 areas in his system of management. A huge factor in what people do is based on what they are used to doing – habits. It is often difficult for people to change – not necessarily because they don’t want to, or the alternative is more difficult or they think it is unwise. It is difficult just because they are in the habit of doing something else.

William James explored the power of habits – The Laws of Habit

Often I favor convincing people why certain actions are best and then they can chose to take those actions. But you can also get people in the habit of the actions you seek to encourage and then let the power of habit work. For health, I think this, often is a good strategy.

But it also is done in many ways that culture is established in an organization. You enforce that meetings must have an agenda. Then it becomes a habit. You enforce that decisions are based on data. Then it becomes a habit. You enforce that the work area must be clean. Then it becomes a habit.

Two ways you can notice that things are becoming a habit:

1) when people bring “work” ideas to their personal life – Visual Management and Self-Reliance, Laundry Kaizen.

2) you find yourself in a new environment where the habit is not practiced and you are uncomfortable. You go to a new organization and 5s is not being practiced and you feel uncomfortable. You go to meetings without agendas and they seem to wander and waste time and you can’t imagine why they don’t use an agenda and follow it.

When the ideas have reached the level of habits you have changed. I think with health issues this is the understanding people should have. How do I change things so people adopt good habits. Then you have to find strategies that effectively move people to adopt those habits.

The strategy is based on the idea that adopting the habit can be easier than convincing someone to change with the power of pure logic. But it is also important as habit are adopted to explain the reasoning on why the habits are important. By understanding the role those habits play in successful health, for example, a person knows how to adapt to changing circumstances. And they know what are the key factors that should remain as methods are adapted over time. Explaining why 5s is valuable is important even beyond the habit.

If you get someone to behave in a certain way to get some incentive you rarely get the change in psychology. They don’t adopt a new habit. They do something to get what you offer. They will continue to do it if the incentive is offered. If not, they stop. Does Rewarding Children Backfire?

In response to: In search of metrics

Related: Flaws in Understanding Psychology Lead to Flawed Management – Respect for People, Understanding Psychology – Information Technology and Business Process Support – Punished by Rewards? A Conversation with Alfie Kohn

In response to: Developing Your Lean Education Plan

If you actually let the lean leaders practice lean management you are probably doing more to help them learn than anything else. Reading is great, but 10 times better when reading to find solutions you need to deal with issues you have in place. Same for going to conferences. Consultants can be a huge help, but if you just bring in consultants without allowing the changes needed to improve they are not much use.

Far more damaging than not approving training, or giving the lean leaders any time to learn, is not giving them freedom to adopt lean practices and actually make improvements in your organization. That is what kills learning, and the desire to learn.

A great lean education plan: give them opportunities to apply what they know. As they gain knowledge and have success give them more opportunities. I think often lean leaders (and management improvement leaders) have to spend so much effort fighting the resistance in the organization they don’t have the energy to seek out much new knowledge. If you can reduce the effort they have to spend on fighting the bureaucracy most lean leaders will naturally focus on learning what they need for the current and future challenges.

Related: Building Organizational Capacity – Helping Employees Improve – People are Our Most Important Asset – Respect People by Understanding Psychology

Tony Hsieh, chief executive of Zappos, spoke at a recent y-combinator event (two great organizations we have mentioned before).

Facebook and Zappos’s Different Views on Worker Retention

Great stuff. I must admit I would not find spending $700 million on an internet shoe and apparel retailer was a great idea for Amazon if it were not Zappos. I am happy to own a small portion of Zappos with such inspired leadership. The contrast in the respect for people Hsieh shows and so many other unethical CEO’s is amazing and inspiring. We need more such leadership examples to follow.

Related: Paying New Employees to Quit – Zappos and Amazon Sitting in a Tree… – People are Our Most Important Asset – Building a Great Workforce

The unspoken truth about managing geeks by Jeff Ello

The article makes very good points. As I have said before software developers expect more of management than most staff do. And I would say software developers are seen as more cynical than most staff because they accurately evaluate management’s failures (and are more willing to speak up about problems).

Pretending software bugs don’t exist doesn’t work. Pretending management bugs don’t exist doesn’t work either, but most are willing to pretend management bugs don’t exit. Programmers often figure bugs should be acknowledged and dealt with, rather than pretending they don’t exist. But they are called cynical when they mention management bugs – which only makes them less confident in the ability of management to preform their responsibilities.
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The Wall Street Journal has a book review of The Management Myth by Matthew Stewart. The book flushes out the ideas Matthew Stewert explored in a previous article in the Atlantic about the failure of management to mature as a discipline.

I’m not sure about the book, I have not read it but that is a great statement. And I firmly believe managers need to become experts at managing and by and large they have quite a long way to go. Dr. Deming talked about how we “know” what we know in the aspect of his management called the theory of knowledge (which is not included in any other management philosophy I have seen). That area (with interactions in other areas) explores why people often believe what is not so. And management seems to have a surplus of beliefs that are not based on sound theories.

Read this good article I have mentioned before on this topic by Carlie and Christensen: The Cycles of Theory Building in Management Research.

Related: Righter Incentivization – Another Quota Failure Example – Management Advice Failures – Why Extrinsic Motivation Fails – Innovation Strategy – Does the Data Deluge Make the Scientific Method Obsolete? – Data Based Blathering – Doing the Wrong Things Righter – Harvard’s Masters of the Apocalypse
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Some of the problems expressed in the post linked to are specific to IT, and some are more important in software development (where as I have said before employees have higher expectations of management than most employees do), but many have truth for many employees. A good manager can create an environment where these problems are eliminated or reduced.

Top 10 Reasons Why Employees Leave in IT

Related: Helping Employees Improve – Information Technology and Business Process Support – Stop Demotivating Me! – The Manager FAQ – Flaws in Understanding Psychology Lead to Flawed Management – posts on managing people

In-N-Out Burger’s six secrets for out-and-out success

The fundamental idea of respecting people is something most executives seem to have no interest in. Treating employees as the critical partners in organizational success is just something that doesn’t leap out at you based on the actions of most managers, unfortunately. And that poor management damages the performance of the organization.

Read more about In-N-Out Burger management practices in Stacy Perman’s new book In-N-Out Burger: A Behind-the-Counter Look at the Fast-Food Chain That Breaks All the Rules.

Related: Respect for Workers at In-N-Out Burger (Nov 2006) – Building a Great Workforce – Another Year of CEO’s Taking Hugely Excessive Pay – Respect for People, Understanding Psychology – People are Our Most Important Asset

What managers can learn from Open Source by Murray Cumming

Don’t miss this great essay by Paul Graham: What Business Can Learn from Open Source. And you know what else? I don’t think open source projects use the annual performance review.

Related: Open Source: The Scientific Model Applied to Programming – Dangers of Extrinsic Motivation – What Motivates Programmers? – Open Source Management Terms

One aspect of managing people is to provide positive feedback and show appreciation. Doing so is important. People benefit from encouragement and reinforcement. In addition to just telling them, take action to show your appreciation.

The Dilbert workplace is alive and well. And even in above average management systems there is plenty of resistance faced by those looking to improve systems. For those employees that are making the attempt to improve the organization go beyond saying thanks: actually demonstrate your appreciation. Do what you can to help them achieve.

A manager should be enabling their employees to perform. That means taking positive steps that help them perform. This is even more appreciated than saying thanks. And has the added benefit of helping the organization by helping along their good idea. It is win, win, win. They win, you win and the organization wins.

Thoughts on: Rewards and Recognition

Related: Keeping Good Employees – Respect for People Requires Understanding Psychology- People are Our Most Important Asset – Motivation – Incentive Programs are Ineffective

How great companies turn crisis into opportunity

I think he makes a very good point, but may overstate it just a bit. The right people do need management to do their job: to provide guidance, to work on improving the organizational system, to coach employees when needed, to plan for the future, to determine where to focus the organizations resources… But they don’t need to be micro-managed. They can be expected to do what is needed when the proper conditions are set, including a clear understanding of what is needed, communication of current conditions and changing needs, a shared understanding of roles (for people and organizations)…

Also, just to be clear, it can be the right thing to closely manage someone as they are learning. This is true when a new employee starts with the company. And also when they take on new responsibilities. I would have no problem with a company tightly managing a new supervisor. In my experience the exact opposite problem is much more common, moving people into supervisory roles with little support, to sink or swim on their own (well perhaps sinking those around them too). At both times they should get the support they need and the freedom they need to work effectively.

Related: Keeping Good Employees – Flaws in Understanding Psychology Lead to Flawed Management – People are Our Most Important Asset – posts on managing people – The Joy of Work

Don’t be negative. Most people agree with that statement. We see being negative as bad. If you don’t have something good to say, don’t say anything. Well, I don’t agree. While presenting your ideas in a constructive way is helpful, I don’t agree with those that try to discourage negative comments.

I understand that the psychology of many people has lead them to want confirmation and to dislike criticism of ideas they propose. And I understand our society has re-enforced the desire to see criticism as bad. Using better words and phrasing your comments more effectively to make your points and avoiding being seen as negative is good). But I wish more people objected to bad ideas instead of just letting them go because they were afraid of being seen as negative.

Yes it would be nice if they objected in some wonderfully polished way. It would however also be nice if people were not so insecure that criticizing an idea required being very careful not to be seen as negative. And if I have to focus on improving one thing (in an organization) it would be how poorly people react to a negative comment rather than trying to avoid negative comments. Now, in reality we don’t have to chose one, we can do both, but the choice I would make shows where I see the larger problem today.

People should try to be constructive with criticism. I don’t think there are many people that disagree with that. However, I think people need to learn how to encourage people to criticize their ideas. We want more people providing their thoughts, not less. And what I see most often from people objecting to “negative” comments is an attempt to discourage raising legitimate issues, using the claim of “negativity.” Obviously this is not always the case. But that is the problem I see far more often than the problem of someone that is just negative.

I want people to be open to new ideas. I want them to explore new opportunities. But I don’t care if they voice negative thoughts about why this won’t work here. Or saying that we tried that before and it didn’t work. Great, lets talk about why it didn’t work. Lets try to do something different this time. I don’t want people to ignore the negative feelings they have. Express them and lets deal with them.

Now there are some people that won’t stop just expressing negative opinions without exploring what that means about how we can cope with potential dangers and find more effective solutions. That is not very helpful. But overall give me more people that are seen as negative. We need more raising of problems. We need more people unsatisfied with the status quo.

Thoughts on, Two Sentences That Don’t Help: “That won’t work.” or “I don’t like that.” I think they do work. They are not perfect, if would be better to be constructive. But I would much rather here that when it is what is felt than someone thinking it won’t work and being quiet because they don’t want to be seen as negative.

Related: Bring Me Solutions or Problems – The difference between respect and disrespect is not avoiding avoiding criticism – The Lazy Unreasonable Man – Financial Market Meltdown – Respect for People, Understanding Psychology

A few weeks ago I wrote about integrating information technology and business process management. This post from Steve Yegge is interesting and discusses one reason I find that a good strategy. Programmers, by and large, are good, practical systems thinkers (this is in the management context, thinking of inter-related systems, whatever those systems are – not to be confused with a computer system).

A programmer’s view of the Universe, part 1: The fish

Programmers also tend to be active life long learners. This isn’t to say programmers tendencies are all easy to manage. They also are more likely not to accept what most people are willing to accept and can therefore be annoying to some. Now, I happen to think it is good to question conventional wisdom and authority… (which might explain one reason I am annoying), but it also explains why often management find dealing with IT staff annoying. Programmers often refuse to accept management’s belief system, including that the programmers job is just to do whatever the manager tells them to.

Related: A programmer’s view of the Universe, part 2: Mario Kart - What Motivates Programmers? – Reddit, a live view of how software coders think – Explaining Managers to Programmers – A Career in Computer Programming – Programmers – cartoon form – Signs You Have a Great Job … or Not

One of the beliefs I try and get the organizations I work for to adopt is to truly value excellent people. The costs are challenges of hiring great people, to me, makes it critical to do what you can to keep your exceptional people. I probably haven’t written about this because it can conflict with my advice against performance appraisals. I do actually believe it is possible to know certain people are great and contribute greatly to the success of your organization. I also believe many (a majority) organizations do such a bad job of identifying those people they shouldn’t even try. But if you can identify some people that seem to be positive special causes of success there is a good argument for making sure they are happy.

I don’t believe you should try to pay these special employees fairly. Overpay them. I would much rather waste (10-20% on extra pay) than pay them fairly and make it easier for them to switch to another job. Talk to them and make sure they are doing what they want and making the progress they want. I find (I don’t have enough data to know if this is generally true) that the best people complain the least and so you need to make extra efforts to find out what they might like to see improved.

Don’t focus all of your energy on putting out fires and expect those that keep their areas of responsibility in decent shape without your intervention to just cope on their own. Since many managers adopt this “only dealing with the squeaky wheel” strategy (without saying that is what they do, of course), force yourself to spend time coaching, learning, helping… the most successful – as well as others. I want to have employees delighted (all of them ideally, but at least those that are most critical). As Deming said it is easy for competitors to take away satisfied customers – it is not easy for a competitor to take away delighted customers. The same holds for employees.
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No Matter How Badly You Want It:

Douglas McGregor discussed this topic well in 1960. He explained theory X management (managers believe the workers will do only what they are forced, coerced into doing) and theory Y management (managers believe the workers want to do a good job and the managers job is to help them do so) in his excellent book: The Human Side Of Enterprise.

When a manager thinks in a theory y way they assume people wish to do a good job. If the employees are not doing some task the way the manager wants, the manager needs to figure out what is wrong with the system that leads to this outcome (not what is wrong with the employees).

When a manger views the problem as one of motivating workers that puts the problem within the worker. They need to be changed. That is the wrong strategy, most of the time. People want to do a good job; the job of a manager is to remove the de-motivation within the system.

Related: Motivation – Incentive Programs are Ineffective – Motivation Poster – respect for workers posts

Why Motivation by Pizza Doesn’t Work

Lean thinkers understand this idea as respect for people. Dr. Deming talked about joy in work. Douglas McGregor talked about theory x and theory y thinking. All of these perspectives incorporate an understanding of workplace systems and human psychology. Extrinsic motivation is easy but not effective. It is really just abdicating management and using extrinsic motivation in place of management. The alternative requires managers to actually manage. This is challenging but the correct choice to make.

Stop Demotivating Employees

As I have stated before: Alfie Kohn has some great books and articles on the problems with extrinsic motivation, and related ideas – I know it is hard for many people to believe (the link provides some online articles that can help as well as some books).

Related: Motivation – Dangers of Extrinsic Motivation – Eliminate Slogans – Why Extrinsic Motivation Fails