SFO Blog - Helping You Build Your Company into a Strategy Focused Organization

Avoid the Dark Side of Measurement

Assuming your organization has business measures in place, how does it use business performance results? What is the reaction when actual performance is below target – I mean seriously below target? Does everyone run for cover, hoping to avoid pointing fingers and executive tirades? If you answered yes, then you and your organization are experiencing the dark side of measurement.

 

On the dark side of measurement, performance results, particularly when they are below expectations, are used for punishment purposes. Poor results prompt explosions of management frustration and anger that are taken out on the people with “responsibility” for the measure or the result itself. The target of the anger is humiliated as he/she struggles to defend their position while others are just thankful that they weren’t in the line of fire - this time. The spoken message from management is: “These results aren’t good enough – we don’t care how you do it but just fix it!” The unspoken message is: “Poor results could become your problem. If you want to avoid humiliation, do what ever you can to hide poor results from the top.”

 

You would hope that, in the day of enlightened executive management, this type of scenario wouldn’t really exist. While this might be an extreme example, I can assure you that, sadly, versions of this approach to measurement results management do exist out there. 

 

The problem with the dark side of measurement is that it creates an environment that effectively shuts down a culture of “telling the truth” about how business is really going. In these organizations, people go to great lengths to hide business problems and keep themselves off the executive radar. A great deal of effort goes into trying to fudge the results rather than into doing what needs to be done to really turn problems around.

 

The real benefit of business performance measurement is achieved when it is used for learning, opportunity identification, and action. Successful organizations embrace the ugly in their business. While they don’t love the ugly stuff, they respect it because they know that, when approached right, it offers an opportunity to learn more about the business.

 

In these organizations, people aren’t afraid to talk plainly and openly about what is going right and wrong in their business. While leaders aren’t happy when results are below expectations, they understand that it isn’t the worst thing that could happen. As a result, rather than get angry, they encourage in depth discussion about poor results including the underlying root cause problems. Employee effort goes into wrapping their hands around the top root cause problems and eliminating them permanently through targeted action plans that may be built on successes achieved elsewhere in the company.

 

In these organizations, poor performance results aren’t viewed as problems – they are seen as opportunities for improvement. Concern does arise when people don’t know how what is driving under performance (i.e. the root cause problems), when the organization fails to follow through on planned corrective actions, or when lessons learned are not leveraged to prevent or eliminate issues that result in poor business performance results. And, rather than get emotional, company leaders model the desired behavior by coaching their people to close these knowledge and action gaps when they exist.

 

Can you see the difference between the dark and light side of measurement? The dark side is all about hiding from business truths while coming over to light involves shining a light on every nook and cranny of your business and embracing the truth, no matter how bad it is.

 

The result is a healthier work culture, happier employees, more efficient business operations, and paradoxically, better business performance results!

Traditional Vision Statements - An Opportunity Lost

When I look at most traditional strategic plans I can’t tell the difference between their mission and vision statements. While they use different words and seem to be talking about slightly different things, to me, they both look like high level statements talking about what the organization aspires to be and/or do.

 

What a waste! This duplication represents a lost opportunity to start solving one of the biggest problems we have in businesses today: the failure to do what our strategic plans say we want do and achieve what we say we want to achieve.

 

While many issues contribute to this problem, one of the biggest factors is the disconnect between the high minded language featured in the mission, vision, and goal statements found in a traditional strategic plan and the action required to bring that company’s strategy to life.

 

This disconnect happens because employees HEAR what the strategy is but they can’t SEE what it looks like in action!

 

Hold on – so one of the critical problems here is an actual vision problem? To do the right things strategically people need to be able to visualize or see the strategy in action? Yes! So, knowing this, here’s how we can solve this particular problem.

 

First, let me be clear that I fully support having a mission statement that talks about who we are, our reason for being, and where we are striving to go. Every organization needs a beacon to look towards, align with, and guide their decisions. The best mission statements are short and to the point (please! no more long rambling missions that no one can remember), include action words (it’s amazing how using verbs inspires people to take action), and are inspirational to all who read them.

 

However, let’s re-purpose the vision statement and turn it into a visible “signpost” of progress towards our mission that also suggests the direction and action required to make this progress. With that in mind, here’s a new definition for the vision statement:

 

Built on its core values and mission, an organization’s vision should paint a clear, action-oriented, and measurable PICTURE of what it wants to achieve by a defined point in the future. The vision should stretch the organization’s capabilities and IMAGE of itself and clarify the direction of the organization.

 

Most importantly, a clear and focused vision helps all of the organization’s stakeholders (including its employees) see and understand why and how they can support the organization, in an actionable way, as it strives to achieve its strategic goals and objectives.

 

Here is an example of this new approach to the vision statement:

 

Metro City Rehabilitation Clinics

Mission statement: Helping our patients live the best life possible as soon as possible.

Vision 2015: The regional leader in positive patient outcomes through the use of leading-edge treatment protocols.

 

Can you see the difference between the mission and vision?

 

While the mission statement helps us understand where the clinic is trying to go, the required strategic action isn’t immediately clear. However, the vision statement makes it easy to see what the clinic will look like/be achieving by 2015 (the regional leader in terms of positive patient outcomes) and what action will get it there (providing leading-edge treatments). The vision helps employees see what they need to do to help the clinic strategically: learn about and use leading-edge treatment protocols; and focus on facilitating positive patient outcomes. In this way, the vision statement really helps begin clarifying what action is required to move the organization forward strategically.   

 

Take a look at your organization’s vision statement right now. Does it help your employees and stakeholders see what the strategy looks like in action? Or is it a wasted opportunity in the form of a riff on your mission statement?  

 

Take the opportunity to improve your company’s vision statement today!

Traditional Vision Statements - An Opportunity Lost

When I look at most traditional strategic plans I can’t tell the difference between their mission and vision statements. While they use different words and seem to be talking about slightly different things, to me, they both look like high level statements talking about what the organization aspires to be and/or do.

 

What a waste! This duplication represents a lost opportunity to start solving one of the biggest problems we have in businesses today: the failure to do what our strategic plans say we want do and achieve what we say we want to achieve.

 

While many issues contribute to this problem, one of the biggest factors is the disconnect between the high minded language featured in the mission, vision, and goal statements found in a traditional strategic plan and the action required to bring that company’s strategy to life.

 

This disconnect happens because employees HEAR what the strategy is but they can’t SEE what it looks like in action!

 

Hold on – so one of the critical problems here is an actual vision problem? To do the right things strategically people need to be able to visualize or see the strategy in action? Yes! So, knowing this, here’s how we can solve this particular problem.

 

First, let me be clear that I fully support having a mission statement that talks about who we are, our reason for being, and where we are striving to go. Every organization needs a beacon to look towards, align with, and guide their decisions. The best mission statements are short and to the point (please! no more long rambling missions that no one can remember), include action words (it’s amazing how using verbs inspires people to take action), and are inspirational to all who read them.

 

However, let’s re-purpose the vision statement and turn it into a visible “signpost” of progress towards our mission that also suggests the direction and action required to make this progress. With that in mind, here’s a new definition for the vision statement:

 

Built on its core values and mission, an organization’s vision should paint a clear, action-oriented, and measurable PICTURE of what it wants to achieve by a defined point in the future. The vision should stretch the organization’s capabilities and IMAGE of itself and clarify the direction of the organization.

 

Most importantly, a clear and focused vision helps all of the organization’s stakeholders (including its employees) see and understand why and how they can support the organization, in an actionable way, as it strives to achieve its strategic goals and objectives.

 

Here is an example of this new approach to the vision statement:

 

Metro City Rehabilitation Clinics

Mission statement: Helping our patients live the best life possible as soon as possible.

Vision 2015: The regional leader in positive patient outcomes through the use of leading-edge treatment protocols.

 

Can you see the difference between the mission and vision?

 

While the mission statement helps us understand where the clinic is trying to go, the required strategic action isn’t immediately clear. However, the vision statement makes it easy to see what the clinic will look like/be achieving by 2015 (the regional leader in terms of positive patient outcomes) and what action will get it there (providing leading-edge treatments). The vision helps employees see what they need to do to help the clinic strategically: learn about and use leading-edge treatment protocols; and focus on facilitating positive patient outcomes. In this way, the vision statement really helps begin clarifying what action is required to move the organization forward strategically.   

 

Take a look at your organization’s vision statement right now. Does it help your employees and stakeholders see what the strategy looks like in action? Or is it a wasted opportunity in the form of a riff on your mission statement?  

 

Take the opportunity to improve your company’s vision statement today!