By Jim Trinka
Jim Trinka’s study of manager-employee surveys in government and industry reveals what surely must be best-kept secrets. For example, by focusing on “developing others,” and “communication” competencies, managers can increase their overall leadership effectiveness by 50-60 percent. To drive his points home, he shows that 10 managerial activities—out of a possible 250—have the most potential for delivering high employee performance. Do yourself and other managers a favor: Read this paper and pass it on.
Applying Science to Build Leadership: Which
Managerial Activities Have the Most Impact on Improving Employee
Performance?
An overwhelming body of evidence exists to highlight the important and vital
role of managers on employee performance and retention. However, the
potential list of activities that a manager can undertake to improve
employee performance is as long as the oceans are wide. Thus, questions
often arise about which managerial activities have the most impact on
improving employee performance and what the extent of that improvement is.
Numerous experts claim that the most effective leaders use approaches that
balance their focus between interpersonal skills and driving for results.
These approaches seem consistent with our intuition on good leadership, yet
we often have only anecdotal evidence to support such a contention.
A review of several surveys on these important topics reveals unusual similarities in findings and recommendations and suggests that an application of hard science might offer us some insight on how best to exercise and build the soft skill of leadership. Specifically, the evidence supports the establishment of a performance-management based organizational culture, although not from a command and control perspective, but one that involves a coaching environment and conscious attempts at continuous dialogue within work teams to achieve a balance between driving for results and interpersonal skills. Furthermore, managers who undertake specific activities related to this approach have a much better chance of achieving “breakthrough” employee performance improvements, leading to “breakthrough” results for the organization.
Focus on Success: What Works?
Over the past 2 years, I’ve had access to numerous surveys dealing with both
employee performance and leadership effectiveness. The ones that I find
particularly interesting study successful leaders and hone in on the
characteristics and competencies that differentiate those leaders from the
rest and focus on what is working. I find this approach much more positive
than the opposite approach that probes weaknesses and what isn’t working.
It’s also clear to me that we don’t identify our best leaders by an absence
of shortcomings, but rather by the attributes that lead to their success and
what does work. Moreover, focusing on success creates positive energy by
recognizing and appreciating what is working, which seems to produce greater
engagement and momentum for change. Thus, we can evaluate a long list of
managerial activities and competencies to determine the much smaller number
of those activities that have the most impact on improving both leadership
effectiveness and employee performance, ultimately achieving dramatic
increases in organizational results.
Performance Management
Most managers agree on the importance of performance management as a leader
and would probably rate themselves fairly proficient in this role. In mid
2002, the Corporate Executive Board’s Learning and Development Roundtable
analyzed survey responses from nearly 20,000 employees and managers on a
wide range of manager-related activities involving performance management.
Overall, managers received a poor report card on their performance on these
activities as only 30-40 percent of employees agreed that their managers
communicated performance standards and provided fair and accurate feedback
to help them do their jobs better.
Immediate Feedback Works Interestingly, most of the performance improvement activities that managers can utilize have minimal impact on individual employee performance. The results clearly show that managers have a much better chance of vastly improving employee performance by targeting their efforts on a much smaller list of activities. In fact, managers who set clear performance standards, become more knowledgeable about employee performance, and provide fair and accurate informal feedback on performance strengths can significantly improve individual performance. And when discussing weaknesses, managers who clearly focus on specific suggestions for improvement or development can improve employee performance; those who emphasize weaknesses can dramatically decrease performance. In short, managers who provide feedback that is voluntary, detailed, immediate, and positive can positively influence employee performance.1
This information shouldn’t surprise most managers as we’ve heard it all before and it seems intuitive. However, survey responses show some disparities in perceptions between employees and managers. The majority of employees believe that formal performance reviews do nothing to actually help their on-the-job performance, yet they crave voluntary and detailed informal performance feedback, especially on strengths. Interestingly, the majority of managers view formal performance reviews as an administrative requirement rather than as an influential lever to positively influence employee performance. In fact, many managers report that they specifically cite performance weaknesses to lower an employee’s rating below the highest mark rather than emphasizing strengths to raise performance ratings above minimally successful. On informal feedback, employees report that most managers provide general praise, rather than specific and detailed recognition.
Manager-Led Employee Development
Few managers would disagree on the importance of their crucial role in
employee development and many spend a considerable amount of their valuable
time on manager-led development activities. In early 2003, the Corporate
Leadership Council’s Learning and Development Roundtable analyzed survey
responses from nearly 8,500 employees and their managers on a wide range of
employee development activities. The results confirm that a vast majority of
managers (3 out of 4) agree that helping their employees develop is crucial
to organizational success and spend about 15-20 percent of their time on
employee development activities. However, the results also indicate that
employees rate their managers barely above average (4.07 out of 7.0) on
their effectiveness in this role and most managers do not see a significant
return on their time investment.2
By examining the employee development activities of the highest rated
managers, we see that some activities have a much more positive influence on
improving employee performance than others. Statistical estimates show that
improving a manager’s effectiveness at employee development can positively
influence employee performance by as much as 25 percent.3
Target Fewer Activities Similar to the results of the performance management survey, managers have a much better chance of vastly improving employee performance by targeting their efforts on a much smaller list of employee development activities. The top three managerial activities highlight the importance of managers ensuring that day-to-day work experiences provide learning and encourage development and that they clearly explain performance standards. Managers lament that time constraints or competing priorities limit the time they spend on employee development, but the good news is that they can undertake the activities listed above every day as a part of their normal job responsibilities to further “blur the line” between learning and work.
Effectiveness at Employee Development Increases Employee
Performance
Survey responses show some fascinating disparities in perceptions between
employees and managers concerning employee development. The vast majority of
employees seek to learn and grow in the course of doing day-to-day work and
want their managers to create a learning environment in that context. On the
other hand, the majority of managers do not believe that their employees
want them to emphasize development and report a lack of confidence to
perform well in that role. Armed with the results of this survey and
organizational support, managers can proceed with much more confidence in
performing specifically targeted employee development activities and the
business case is compelling. For example, managers who improve their
effectiveness at employee development by only 20 percent can increase
employee performance by about 5 percent. That may not sound like much, but a
company with a sales force of 2,000 employees who each average $1 million in
annual sales can increase company-wide annual sales by about $100 million!
Leadership Competencies
Organizations normally specify a set of leadership competencies that
describe success for its managers and typically use 360-degree evaluations
to assess managerial behaviors associated with these competencies. I
analyzed the results of the 360-degree assessments of nearly 1,000 managers
in a large government agency and found that the most successful managers (in
the top 10 percent) did not receive high scores on all of the 21 designated
leadership competencies. In fact, the best managers had a much smaller set
of competency strengths that differentiated them from the rest.
Improving Certain Leadership Competences Can Increase Leadership Effectiveness Similar to the results of both the performance management and employee development surveys, managers have a much better chance of vastly improving their leadership effectiveness by targeting their development efforts on a much smaller list of leadership competencies. For example, by focusing on improving the behaviors associated with the “Developing Others” and “Communication” competencies, managers can increase overall leadership effectiveness scores by 50-60 percent. The associated behaviors of these two competencies relating to employee development and performance management are: 1) creates an environment and strategy to support continuous on-the-job learning, and 2) strategically uses communication to produce enthusiasm and foster an atmosphere of open exchange and support.
Build Profound Strengths My analysis also uncovered interesting insights into the most effective methods of improving leadership competencies. Traditional leadership development efforts focus on correcting weaknesses and, at best, achieve only small incremental improvements and do not offer an effective strategy for making “good” leaders “great,” since evaluation respondents identify the best leaders not by a lack of weaknesses, but by the possession of a few profound strengths. However, by identifying and focusing on competencies in which the manager is performing strongly, though not exceptionally, small amounts of improvement tend to dramatically increase a manager’s overall leadership effectiveness.
In addition, focusing on “competency companions” (closely related competencies that support those targeted for development) can improve a manager’s overall effectiveness even more. In fact, building a few of a manager’s existing strengths to even higher levels through developing “competency companions” can achieve behavioral improvements as much as 8 times more effective than traditional methods because, according to respondents, profound strengths in a few areas overshadow perceived weaknesses. Since this study also correlated increases in overall leadership effectiveness to employee engagement results, I discovered that correcting weaknesses only raised employee engagement scores a paltry 2-3 percent, while building a few profound strengths offered the potential of increasing employee engagement by nearly 80 percent.
Employee Engagement
Many organizations conduct periodic surveys that probe employee, and
sometimes customer, attitudes and opinions relating to productivity,
profitability, retention, and job/customer satisfaction. In their
groundbreaking book, First Break All the Rules, Marcus Buckingham and Curt
Coffman of the Gallup Organization argue that the number one reason why
people thrive in an organization is their immediate supervisor and it's also
the number one reason they quit. After studying the most successful
companies and the factors that reveal loyal and productive employees,
Buckingham and Coffman devised a set of twelve questions that most
accurately measure the strength of a workplace (employee engagement). I
studied the results of a Gallup Q12™ employee engagement survey with over
80,000 respondents in a large government agency and discovered that only 5
of the 12 questions differentiated the best workgroups (top 10 percent) from
the rest.
Similar to the results of the previously cited surveys, managers have a much better chance of vastly improving the workplace environment for their employees by targeting efforts on a much smaller list of performance drivers. By listing the 5 key differentiating questions, we clearly see patterns of what survey respondents are telling their managers to focus on.
Q4: In the last seven days, I have received recognition or praise for doing good work.
Q7: At work, my opinions seem to count.
Q6: There is someone at work who encourages my development.
Q12: This last year, I have had opportunities at work to learn and grow.
Q11: In the last six months, someone at work has talked to me about my progress.
Two of the questions relate to conversations about performance, two others speak directly to the value of employee development activities, and the last implies an atmosphere of open exchange and support.
Managers and Employees Have Different Perceptions on
Employee Engagement
By separating the survey responses by managers and employees, we see some
disparities in perceptions concerning employee engagement. A vast majority
of employees want someone at work (usually their managers) to conduct
dialogues on performance, mission importance and alignment with
organizational goals, emerging work trends, and career development. On the
other hand, many managers do not believe that their employees want them to
discuss these issues. The implications of this disparity clearly stand out
when we compare the business results of the highest scoring workgroups to
those with the lowest scores (remember, managerial effectiveness is the
number one reason that employees thrive in an organization). In one retail
chain, Buckingham and Coffman found that workgroups who scored in the top 25
percent ended the year almost 5 percent over their sales budget while those
scoring in the bottom 25 percent were nearly 1 percent below budget, which
amounted to a difference of $104 million. Profit/loss sheet and employee
turnover comparisons pointed to an even more dramatic impact of scoring in
the top 25 percent. The results of the surveys that I have cited begin to
coalesce around a compelling business case for concentrating effort on
managerial activities with the most impact relating to performance
management, employee development, and communication.
Succession Management
Facing a continuing competitive economic environment and intense analyst
scrutiny of leadership bench strength, most organizations currently place
great emphasis on succession management and plan to increase investment in
leadership development in the future. In 2003, Accenture surveyed over 1,000
CEOs and discovered that 5 of the top 9 corporate priorities related to
workforce and leadership quality. Also in 2003, the Corporate Executive
Board’s Corporate Leadership Council analyzed survey responses involving
succession management from managers in 276 organizations worldwide. The
survey revealed insights into the criteria (competencies) that have the
greatest impact on improving potential successor identification and
development. The table below depicts the results, to include the empirical
impact on improving leadership quality:
Key criteria for successor identification and development include integrity/honesty and group leadership (crucial to performance management), developing others, and communication and a glance at the table suggests a needed balance between interpersonal skills and driving for results. Improving managers’ performance in these activities/competencies will undoubtedly steer the organization’s culture to support the CEO’s workforce and leadership quality initiatives and subsequently drive “breakthrough” improvements in organizational results.
Simplifying the Life of a Busy Manager
Hopefully, I’ve provided a more detailed explanation to answer this
article’s tantalizing question of “What’s a Manager to Do?” Given the vast
range of responsibilities and activities that managers can undertake, I
think that any method of simplifying a time-oppressed manager’s life is
worthwhile, especially if I can cite specific empirical evidence in support
of a few key concepts. In that light, I have summarized the results of the
previously cited surveys around the common themes that emerge involving
employee development, performance management, and communication. The chart
below depicts the most influential activities, grouped by these three common
themes, in descending order of their impact on a combined index of
managerial effectiveness and employee performance. Overall, activities
involving employee development have the highest average impact on managerial
effectiveness and employee performance at 33. 3 percent, performance
management averages 28.5 percent, and communication comes in a close third
at 25.7 percent.
A specific criterion of success for “great” organizations is the emphasis on
specific activities that generate “breakthrough” performance improvement and
not just a general emphasis on the common themes. After reviewing the impact
of over 250 possible managerial activities, I recommend a short list of only
ten that has the
most potential for delivering high performance improvement
levels, since these differentiate “great” organizations and leaders from the
rest. By studying success and recognizing and appreciating what works for
“great” leaders and organizations, we can determine the actions that have
the most impact on performance improvement. And the best news is that busy
managers can decrease emphasis on some of the activities we have done in the
past that have the least impact. In other words, we can edit our “To-Do”
list to ensure that all remaining activities have maximum impact. The chart
below clearly shows the distinct advantage in results of applying similar
levels of effort toward either resolving problems (i.e., correcting
weaknesses) or leveraging success (i.e., building strengths). We can only
achieve incremental improvement by emphasizing the former, while the latter
offers the type of “breakthrough” results we really seek.
By focusing on just a few recommended activities, organizations can greatly improve both workforce and leadership quality, which is very high on the list of CEO top priorities and for good reason. In their excellent work, When Teams Work Best, Frank LaFasto and Carl Larson show that companies with “top tier” leadership quality (“great” leaders) outperform their competitors in revenue margins by over 500 percent, in net income by over 700 percent, and in stock price performance by over 800 percent. As we suspected, a manager’s, or maybe I should say a leader’s, role does have a significant impact on employee performance and now we can offer specific, empirically justified suggestions for improvement. It seems we can use hard science to help apply the soft skill of leadership!
1 “Employee Performance
Improvement: Understanding Your Role as a Manager,” Catalog No. TD11A8Q65,
Corporate Executive Board, 2003, p. 19.
2 “Engaging Managers as
Agents of Employee Development,” Catalog No. TD11IMXNC, Corporate Executive
Board, 2003, p. 14.
3 Ibid., p. 36.
About the Author
Jim Trinka, PhD, is Chief Learning Officer for the FBI. Previously, he was
an Executive Consultant at the Federal Consulting Group, and before that Dr.
Trinka was Director of Leadership and Organizational Effectiveness at the
Internal Revenue Service.
Posted by GovLeaders.org with the author's kind permission.