Showing posts with label performance equation. Show all posts
Showing posts with label performance equation. Show all posts

Wednesday, November 19, 2008

Aerodynamic Career Style?

Careers follow the laws of aerodynamics. There are two main opposite style types of making career. You may choose to become a "Balloon Career Maker"(BCM) or a "Wing Career Maker (WCM).



Let's start with the most traditional way to make career

The Wing Career Maker (WCM)
As a WCM you use the aerodynamic Lift effect to get higher on the career ladder.
Although the lift of an airplane is a combination of several effects, a substantial part is what's called the Bernoulli Effect. In short, the airplane gets lifted because the curved shape (airfoil) of a wing forces the air that flows above the wing to a higher velocity than the air under the wing. Depending on the shape and the angle of the wing, this causes a low pressure above the wing and a high pressure under the wing. The result is the desired lift. In formula :

L = K . v2 . A

(L = Lift, K = shape dependent constant, v= velocity, A =wing Area)

The WCM works just like that. By being more productive (= increase speed v), creating support for his ideas and actions (= create a larger area A), the 'beginning manager' relieves (the stress of) his superior managers (= under pressure above the wing) and - at the same time - puts pressure on his employees to perform (= High pressure under the wing). The result is he gets promoted (= lifted).

As the formula shows, 'being more productive' has an emerging quadratic effect, while 'creating support' only has a simple single multiplier effect on promotion.

By being conscious of the lift formula effects, the WCM has the opportunity to change his management style (= shape) and approach (=angle) in a way that he may reduce and calibrate the employee 'pressure effect' to a healthy (optimal) level. Reduction however, will have a negative effect on his career speed. On the other hand this healthy pressure level will motivate his employees for better performance and eventually lead to better company results on the long term.

The crucial question here is, does senior management have sight and steer on these 'long term' effects or are they only managing short time result? In the first case, promotion will lay ahead.

Now let's look at the opposite style.

The Balloon Career Maker (BCM)
The BCM makes use of another aerodynamic effect called Hot Air Balloon Lift. The heated air inside a balloon weighs less than the surrounding ambient air displaced by the balloon. The difference in the air weights is the gross lift. In formula:

L = V.g.(ρa - ρi)

(L = Lift, V= Balloon Volume, g = gravity constant, ρi = density inside, ρa = density ambient )

As BCM you don't seem to worry about your productivity and career speed. You focus on your desires and needs. You cultivate the fire that's burning within you (= heating of the air).
You invest (=heat) in yourself through study and training and expose your skills to your environment (= the air gets hot).

As a consequence you'll get noticed by higher management, who'll recognize your knowledge. Your star will rise (= Volume increases), you'll get promoted (=Lift),because you're a professional help instead of a higher management threat.

What's best?
There's no 'best way' to make career. Just be who you are and try to take advantage of thermal updrafts so that you may fly, rise and fall, like a thermal plane without working like a hound dog or studying like a madman. Enjoy life, be a glider!



Friday, October 10, 2008

Performance equation

What's result, what's performance, how can you manage it and does HR really help?

Difference between Result and Performance
Let's first distinguish between Result and Performance, simply stated:

Performance = Result / Potential

However, after setting the goals (i.e. the expected Results) the Potential (maximal Result that can be achieved) will almost certainly change due to all kind of changing external, non controllable or non influenceable, circumstances.

Performance related rewards and agreements should therefore always be made for different Potential-scenario's (bandwidth).

Board members, directors, employees, colleagues, friends, our kids, in short 'the contractor', should always be judged and rewarded on their actual performance and not on the results.
One of the main questions in this process is: Can the contractor control or influence the Potential?

Example
You committed to sell 100 books this year, being 0,1% of the national book market (Potential = 0,1% x 100.000 = 100)

PotentialResultPerformance
100100100%
5075150%
20015075%

From this it's clear that if national book sales (potential) would slink to 50%, selling 75 books results in a 150% performance. You would have done a great job, given the Circumstances!
The reverse, of course, is also true.

Performance: rule of thumb
On a personal level, Performance could - as rule of thumb - be defined as:

What you get done
=
[What you have]
x
[What you do with it]
x
[When, Where and How you do it]

Research done by John Purcell, Boxall and others, based on original marketing research of Jaworski(1989), show that successful firms have better people and better processes.

It seems that High Performing Organizations create success based on three pillars:
  • Human Capital Advantage (HCA)
  • Organization Process Advantage (OPA)
  • Organization Citizenship behaviour (OCB)

The AMO model
Professional people management is vital in creating these advantages.

Research and practise led to the development of the so called AMO Model.

P = f (A, M, O)

With P = Performance, A = Ability, M = Motivation and O = Opportunity.


Simply said,people perform well when:
  • they are able to do so
  • they have the motivation to do so
  • their (work) environment supports and stimulates them

Although the relationship (e.g. covariance, etc.) between the AMO elements (A, M,O) can be complex, it's clear that if one of them is zero, the Performance itself will also be zero. That's why the AMO equation is sometimes simplified as:

P = A x M x O

The performance equation
Another similar development by Douglas Peters led to "The Performance Equation":

P = At * ([ K + S ]/ ER)

Where P=performance, At=Attitude, K=Knowledge, S=Skills and ER= Environmental Roadblocks.
Peters sets Attitude in place of Motivation, combines Skills and Knowledge in Ability and defines ER as negative (opposite) aspect of Opportunity

Motivation revealed
Motivation is one of the most important drivers behind High performance.

Let's dig in to the several aspects of Motivation. Motivation has been analyzed by Victor Vroom. Vroom's Expectancy Theory (1964) is based upon the following three beliefs:
  • Valence
    The employee's defined (outcome) value of extrinsic rewards [money, promotion, time-off, benefits] or intrinsic rewards [satisfaction].
  • Expectancy
    The employee's confidence end expectation of what they are capable of doing.
  • Instrumentality
    The perception of employees whether they will actually get what they desire even if it has been promised by a manager.

Vroom states that these three aspects interact psychologically to create a motivational force such that the employee acts in ways that bring pleasure and avoid pain.

So according Vroom Motivation could be defined as:

M = E x I x V

Or in words, Motivation =
  • Expectancy: Perceived Probability of Success x
  • Instrumentality: Connection of Success and Reward x
  • Valence: Value of Obtaining Goal

Opportunity
Opportunity can be seen as everything in the environment that is necessary, supports, helps or sometimes blocks (negative opportunity) the performance of the contractor.
Charlie Cook defines Opportunities as Resources.

In fact Opportunities could be defined as:

O = R x H x C

With O = Opportunity, R = Resources, H = Help or support, C = Circumstances

Just to demonstrate: If you planned a BBQ and got enough meat (R) and matches (H), but it's raining cats and dogs (C), it's not what you would call a big opportunity.

Wrapping up
Wrapping up all Insights, Performance could be defined as:

P = A x M x O = S . K . E . I . V . R . H . C

With: S=Skills, K=Knowledge, E=Expectancy,I=Instrumentality, V=Valence, R=Resources, H=Help or support and C=Circumstances



Remember Performance is everywhere, not only in business.
Success in performing!