Hacking HR to Build an Adaptability Advantage

tojo-eapen's picture

Engaging Leadership Behaviors/Practices And Non Financial Performance Measures

By Tojo Eapen on June 9, 2022

Hacking Team

In today's world, there seems to be insufficient emphasis and expectations on leaders to build sustainable organizations for the long run.  Majority of a leader's focus, targets and expectations are on financial measures. (http://www.gsb.stanford.edu/cldr/research/surveys/performance.html).  This results in related behaviors and practices.  

The influence of leadership behaviors and practices for change is very high because high power and responsibility are vested in these roles.    

To build a sustainable organization for the long run, a leader would be required to focus on both financial and important non financial (eg. building a strong leadership pipeline, the right talent pools, highly engaging and innovative work environments...) objectives. 

Few suggestions:

* Leaders are measured and deliver on fundamental non financial objectives.

* All Leaders are accountable for instituting principles of adaptable organizations (Experimentation & Learning, Transparency, Autonomy & Trust, Diversity...)

* Leadership practices/behaviors and HR practices/systems are aligned.  

* The chain of success is tracked - from management behavior through employee attitudes to customer satisfaction and financial performance. (Source/Example - 'The Employee-Customer-Profit Chain at Sears - http://hbswk.hbs.edu/archive/801.html)

* Leaders actively listen, converse with employees authentically across the organization internally and act quickly to support the necessary changes.

HR process being hacked:Performance Management

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tojo-eapen's picture

Hi Michele,

Thank you for your comments and clarifications. It's useful to look from an overall HR system perspective.

Related to your note, I'll try to add some practical "fixes", on HR practices.

If we look at some of the key nodes in an employee cycle/flow,

1. Selection
A. Ensure that the criteria for selection (especially for leadership roles) include a successful track record of building at least some of the fundamental principles of adaptable organizations.

2. Performance Management
A. All leaders clearly accountable for important non financial measures (indicated above) and, for developing/mentoring leadership and talent (in my opinion, this is fundamental to building long term sustainable organizations).
B. Change the expectations/culture of only financial delivery. There should be consequences for ignoring non financial measures. It all starts with leadership behaviors and leading by example but if leaders are not held accountable, slippage happens.

3. Leadership Development
A. Ensure that every senior leader spends worthwhile face time interacting with the 'youngsters' (interns, trainees, graduates etc.) and frontline leads to actively understand the 'realities' and true challenges with the customer touch points, perceptions, new trends and customer inputs.
B. Leaders should be provided with coaching support through HR expertise (internally or externally).
C. From a communication perspective, 'leaders' should be actively visible and engaging consistently (can't disappear/get too busy away from the organization/employees at any time).

4. Incentives and Rewards
A. Incentives and Rewards should also be aligned to achieving non financial performance measures that build sustainable organizations for the long run.
B. Championing those leaders who live those values visibly across the organization provides impetus to other employees and contributes to developing the desired culture and value system in the organization. Employees should be able to publicly contribute to this (eg. through your idea/suggestion of the Open 360).

Would be useful to hear your thinking on these.

Do let me know if further clarifications are needed.

Thank you!
Tojo

michele-zanini_4's picture

Hi Tojo, thanks for sharing this mini hack--or multiple hacks, given the breadth of your suggestions! Would love to hear more about your ideas for making some practical progress on one or more of your bullets... for instance, what practical "fix" would you implement to specific HR process/practices in order to make leaders accountable for some of the principles we've discussed?

Thanks

Michele