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”?
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.
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.
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.
Achievement and failure — both need to be actively managed.
Get the organization aligned on key objectives and strategy.
Make clear what represents low performance, without ambiguity.
Improve the perceived quality of individual performance measures so nothing stays hidden.
Ensure the population has strong reasons to remain with the organization.
Maintain a narrow range of acceptable performance standards.
Ensure high performers are perceived to receive the greater share of available rewards.
Improve the effectiveness of how the organization deals with low performers.
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.