Reality of performance metrics

In this write-up, I want to focus on what we most often accept as fantastic organisational numbers on productivity and growth and analytically assess them from the perspective of “realness”.

Is there a comfortable confluence between these numbers and lasting economic value? Can these numbers, in actual terms, support affordability of goods and services? Are they proof points of the well-being of employees and customers? Can we realistically extrapolate real and sustainable value from these numbers? Do they impact humanity and well-being.

Here is my take.

Leaders of organisations must be data-led and at the same time, intuitively driven. Business philosophy must embed intuitive insights drawn from agility, clear and constant cognition.

Organisations must keep pushing consistently to get the flywheel spinning. In order to achieve this, we must steadily build momentum organically through clear direction, commitment, motivation and alignment.

Impact-delivering leadership is not about status or power but responsibility. The leader must be committed to regularly delivering on purpose and ensuring that their organisations get better, while employees work with commitment rather than through direct or indirect coercion.

Organisations must intentionally with the right strategies, chart the right direction, ingeniously cope with uncertainty and remain always aligned for change. Leaders must deliberately work through their people and corporate culture. They must smartly and progressively manage and utilise the talent landscape, critical thinking and intellectual empathy.

Leaders must not be “customers of costs”, pretending to use strategic management as their tool. They must consistently win with relevant strategies, that progress push-bottom of integrated sets of choices. They must regularly tweak, hone and refine capabilities, management systems and other mechanisms for achieving impactful goals.

There are five (5) essential capacities for impact-led visionary leadership, namely: a bias towards foresight and an agile action; communication for cohesion; emotional governance; the ability to combine foresight and insight in decision-making; and an awareness that the leader’s judgment and decisions are impacting the entire team.

Let me mention here that in reality, companies have two (2) organisational charts: the official one, with hierarchy titles as well as reporting lines, and the “real” one, which is determined by team members who have metamorphosed over time into centres of influence. These are the people others listen to and consult, and who may even control “powerful” information.

Results for impact, must be measured not only on the platform of development but also on accountability. Leaders must always check that results reflect reality.

Performance must be evidence-based. Organisational performance must showcase operational results, behaviour and competency. This includes results and outcome-based performance, behaviour-based assessment, and the necessary checks on competency frameworks and capability development.

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The leader must be a “psyche architect” and be well-versed in pattern recognition for intelligent decision-making. He must have the ability to identify lapses and gaps before the outcomes become obvious. He must never overlook the relationships between variables and sequence of events. He must articulate his thoughts and decisions clearly, think quickly and lead confidently.

A leader who must match numbers with reality must avoid the “sunk cost” fallacy. This means avoiding the tendency to persist in an endeavour or project simply because of the resources already invested in it. He can make informed choices that will definitely lead to better outcomes.

Do not be bogged down by short-term metrics, although you must adequately factor them into your strategic planning process. Always strive to drive both short- and long-term performance. Your strategies must regularly translate into sustained performance, value creation and the continuous advancement of competitive advantage. As I mentioned earlier, leaders must at all t put greater vigour into strategic, intelligent and smart decision-making.

The leader must master market dynamics and shifts. A unique understanding of customer channels will always come in handy. Use your differentiating strategies to achieve effectiveness and leverage your advantageous marketing and sales strategies as pivots for growth.

You cannot afford to be reactive. Compete efficiently and effectively, drive innovation and prosperity, and pursue “sure impactful growth”.

As a smart and effective leader, do not stop at exercising authority; earn trust and bring out the best in your team members. Trust, consistency and credibility create genuine influence. Listen to your team members with intellectual empathy. Listening builds connection, insight and respect. Build people, not dependence. Empower them and make them more capable rather than merely creating followers.

Be curious and open to the views and opinions of your colleagues and other stakeholders. Lead with courage, character and conviction. Empower team members to perform better and develop stronger commitment. Be the coach and always available mentor.

Leaders must move beyond competitive strategy and adapt more impactful strategies. A useful tool is the improvement of the quality of corporate strategy. Be grounded in the granular but fundamental things that create value. Use meta-themes for critical thinking. Match choices with skills, recalibrate capabilities using not only data but also insight, and always as well as deliberately make room for constant improvement.