I'm also getting more and more interested, at least when it comes to teams and organizations made up of human beings, is the idea of "Return on Effort" (ROE) - which I've also seen expressed as "Return on Energy" or "Return on Engagement" in other circles. The organizational development philosophy of Human Performance Improvement posits that the truly scarce resource organizations must manage most wisely today is not their access to capital, it's access to clarity and focus. Leaders - and workers - have never grappled with a more distracting, harried and chaotic time than the landscape of business today.
ROE asks us to look at ourselves, what we're doing, and how we feel both about the results along with the process that produced them. Where are we spending our time? In meetings? On the phone? In front of the computer screen? On the plane or in a taxi en route to meet more clients? What are we doing and how does it feed the organization's need for actions leading to financial outcomes, but also the individual's need for purpose, meaning and equity?
Performance management is about persuading people to do the things you need them to do in order for your organization - company, non-profit, school choir, etc - to continue performing those tasks that make it what it is. If you stop (or never start) delivering what your customers demand, you won't be around very long. But for people, how does that actually play out? Salaries and bonuses? Profit sharing? Generous benefits? Strict discipline?
All of these rewards have limited lifespans for motivating people to go about doing the hundreds of little tasks involved with managing, designing and producing quality work. I don't care if your charged with pealing 50 pounds of potatoes or negotiating the fine-print language on a $50,000,000 long-term contract, people must be motivated by more than short-term rewards.
Seth Godin talks about about this concept today, too, at least as it applies to Customer Service:
"Overseas call centers and online chat handled by untrained workers with no incentives seem like clever ways to cut costs during stressful times. What they actually are is scalable engines of annoyance, time-sucking processeses that raise expectations and then totally dash them. Better to not even have a phone number. (You can't call Google but you don't want to call Adobe--which one generates more animus--the inability to call, or the promise, unfilled, of respect and thoughtful help?)" (read the full post here)It's always struck me as strange that organizational leaders often manage to decouple quality of service or efficiency of processes from investment in quality staff, both in who gets hired, but also how they are trained and treated once on the team.
This post represents another entry on my part in a "40 Days of Writing" project entered into voluntarily and without coercion.


