A Performance Culture Drives Success


A key element of a best-in-class performance management program is recognition and rewards. A comprehensive study by HBR indicates that the foundation of a company’s culture – the core values posted on a company website – is insufficient to promote widespread understanding and indoctrination. A company’s true values reveal themselves when managers execute hard choices, such as hiring, promotions and firings.

Findings show that, in order for performance management programs to materially shape behavior on a day-to-day basis, recognition of stellar performance is critical. Moreover, while most companies do a good job of rewarding strong performance, conceptually, they overlook the importance of tailoring rewards so that they recognize agility, teamwork and ambition.

Studies have revealed that managers are less inclined to experiment with innovative thinking and creating a disruptive, but positive, environment for fear of endangering the outcome of their performance measures.   Companies need to redefine fundamental performance measures in order to recognize and reward the ability to seize opportunities aligned with strategy and to demonstrate agility in the midst of a perpetually changing environment.