Leaders Drive Productivity. Are you building a High Performance Environment?

Leaders Drive Productivity. Are you building a High Performance Environment?

Leadership · Performance

Building a High Performance Environment

It is the leader’s challenge to create the circumstances that stimulate improved performance and execution from the people within their organization. The key question for business leaders is not “why” high performance, but rather “how”?

The common thread
Every High-Performing System Comes Down to This

Whether it’s maintaining the prestige of a great artistic institution, creating elite military capability, or succeeding in business, it comes down to leaders’ ability to stimulate performance. An ineffective leader can render an entire organization useless — while effective leaders improve their people’s performance just like a great coach improves an athlete’s.

Improved business performance comes from better strategy execution through improved individual contribution. Leaders can ensure this by creating and maintaining a high performance environment (HPE) — one that stimulates the individuals within it to improve. The Olympic Games are a classic example of such an environment.

The framework
The High Performance Environment Structure (HPES)

Developed by Elkiem from 16 years of research into what stimulates improved performance in human populations, HPES describes the common elements of high performance environments: concepts addressing direction (achievement, failure, strategy), concepts showing the current status of performance (measurement and exposure systems), and concepts addressing motivation (reason/purpose plus reward and consequence). The unifying element is “The Way” — the culture, values, or guiding philosophy of the environment.

The real bottleneck
Clarity and Effectiveness Are the Key

An environment needs concepts defining direction, performance status, and motivation — but those concepts must be clear and effective to produce results. A lack of clarity and effectiveness in one, some, or all of the nine HPES components is the cause of many of today’s problems with driving improved execution and productivity in business.

The steps to building high performance

Direction and clarity

Manage for two outcomes

Achievement and failure — both need to be actively managed.

Unify and align

Get the organization aligned on key objectives and strategy.

Define failure clearly

Make clear what represents low performance, without ambiguity.

No hiding places

Improve the perceived quality of individual performance measures so nothing stays hidden.

Strong reasons to stay

Ensure the population has strong reasons to remain with the organization.

A narrow performance range

Maintain a narrow range of acceptable performance standards.

Reward the top performers

Ensure high performers are perceived to receive the greater share of available rewards.

Handle low performers better

Improve the effectiveness of how the organization deals with low performers.

Compare against something better

Pursue higher quality comparisons — measure yourself against something better than yourself.

Authored by Paul Limbrey, President, Elkiem; Erik Berggren, Senior Director of Customer Results & Global Research; and Andrew Meikle, CEO, Elkiem.