SlideShare a Scribd company logo
MAKING
PERFORMANCE
WORKWhy performance systems have to change, and how you should approach this:
From fixed to relative performance contracts, and towards simple, ethical
and empowering ways of dealing with value creation
Make it real!
BetaCodex Network Associates
Niels Pflaeging & Gebhard Borck & Andreas Zeuch
White paper Jan 2009 – Revised and extended Dec 2011 and Feb 2013
What is the problem with Performance Management
as we know it?
Almost everything.
This paper explores why most
Performance Systems are broken,
and how to reinvent them.
Traditional management processes keep teams from strategic
thinking, and motivate counterproductive or unethical behavior
Financial problems
•  Process takes too long
•  Plans become obsolete quickly
•  Plans are of little or no use
Behavioral problems
Strategic problems
0
100
1984 1986 1988 1990 1992 1994 1996 1998 2000
Source: Chem Systems
Profitability in petrochemical industry in Europe
300
400
500
600
200
Targets and
strategic guidelines
•  Target negotiation
•  Definition of incentives
•  Activity planning
•  Resource allocation
•  Coordination of plans
•  Approval
Performance control
(plan-actual)
Budget
Bonus (vs. targets)
Vision
...
Fixed
performance
contacts and
“keep on track”
Source: BBRT
4
Management
control cycle
Budget
Strategy
Strategic
learning cycle
Annual plan
Control
Management processes in command and control
organizations are “straight jackets”
Fixed
Performance
Contract
“Fixed” performance contract
•  Period [Fixed]
•  Targets [Fixed]
•  Compensation [Fixed]
•  Plan [Fixed]
•  Resources [Fixed]
•  Coordination [Fixed]
•  Control [Fixed]
•  Agreed through [Negotiation]
•  Signed by: [Manager/Director]
Source: BBRT
Tayloristic management works like this: As centralistic-burocratic hierarchies,
held together through a regime of fixed performance contracts!
Current practices are misaligned with the
Critical Success Factors of today's competitive market places
Six examples of misalignment
!  Annual planning process retards it
!  Centralized bureaucracy stifles it
!  ‘Spend it or lose it’ mentality fights it
!  Short term targets prevent it
!  Extrinsic ‘motivators’ undermine it
!  Dysfunctional, even unethical behaviour
conflicts with it
Six “Critical Success Factors”
•  Fast response
•  Innovation
•  Operational excellence
•  Customer intimacy
•  Best team
•  Ethical behaviour
• Value creation • Inferior financial results
When pressure is
applied, misalignment
gets worse!
Our profoundly flawed approach to dealing
with present performance, and the future
About futurizing, planning,
forecasting and strategy
Can you read the future, from the bottom
of a cup of coffee? Or do you have a crystal ball
that lets you to look into the future? Can you
read the cards and see what will happen next
year? Well, if none of this actually works,
and if we accept that it´s impossible to predict
the future, then why do we still spend massive
energy and time on formal techniques that try
to achieve just that for businesses?
Planning.
Don´t
Companies.
Need.
A small elite governing the
powerless masses. An economic
system held together by tight
planning, and control. Mistrust in
entrepreneurial initiative.
Those were key features of the
soviet union.
Now guess where this kind of
governance remains in place
today: It is the worlds
corporations and small to large-
size firms. It is just that we call
the practice of “management”.
Organizations need a trust-based form of “future-directed
thinking”, not planning-based command and control
The secret of success is not to foresee the future.
But to build an organization that is able to prosper in any
of the unforeseeable futures.
Michael Hammer
We have come to believe that the source of great performance is good planning. But planning
actually never (ever!) is the source of performance. Preparation is. While planning means
fiddling with the future (in your head), preparation means doing the real work, by becoming fit
for performance. It enables individuals and teams to achieve high performance.
Just like in a Racing Team. The situation pictured here is a fine example of a case where high
performance is produced, and in fact required.
If you think about it, a Formula 1 team does not rely on intense planning at all. But on
intense, and highly disciplined preparation. Things that teams like this indulge in are:
• All-team mastery: Every team member has to be a master. No exception. This enables the
team to sense and respond. To improvise. To be intuitive. High-performance teams often
have a no “baby-sitting” culture, internally.
• Trying. Trying. More trying. You cannot run enough test races. Science calls this
“deliberate practice” This is more than just practicing. In fact, science also shows that
“talent” is completely overrated.
• Intense and open communication flow. Everyone is always up to date.
• Rituals for group cohesion and a culture aimed at winning together, not individually.
These characteristics are typically largely absent from larger organizations. Ask yourself why.
“I will prepare
myself and
my time
must come.” Abraham Lincoln,
lawyer, statesman
A wiser approach than planning
Traditional model “Alpha”:
fixed performance contracts,
negotiated in advance
New model “Beta”:
:relative performance contracts,
assessed with hindsight)
Applying the BetaCodex means:
From fixed to adaptive management processes
strategy
control
Fixed
performance
contracts Dynamic
coordination
Relative
performance
contracts
•  Dynamic, continuous processes
•  Relative targets/compensation
•  Self-control, transparency and
peer pressure
•  Fixed, annual processes
•  Fixed targets and incentives
•  Centralized and
bureaucratic control
Changing
processes
The underlying issue
About human nature, motivation, and the frequently
misunderstood perils of contemporary HR practices
But there is a further challenge. Which is why most theories about
leadership, as well as most advice from consultants, are flawed...
One cannot talk sensibly about leadership, or people
management, nor design decent management processes,
unless we clarify beforehand our beliefs with regards to what
people in organizations are like.
We have to arrive at a shared understanding of human
nature and of the consequences of that for our organizations.
Niels Pflaeging, Leading with Flexible Targets
vs.
Theory Y Douglas McGregor
Theory X
Most performance practices are deeply flawed...
“Theory X” “Theory Y”
People need to work and want to take an inte-
rest in it. Under right conditions, they can enjoy it.
People will direct themselves towards
a target that they accept.
People will seek and accept responsibility,
under the right conditions.
Under the right conditions, people are moti-
vated by the desire to realize their own potential.
Creativity and ingenuity are widely distributed
and grossly underused.
People dislike work, find it boring,
and will avoid it if they can.
People must be forced or bribed
to make the right effort.
People would rather be directed than
accept responsibility, which they avoid.
People are motivated mainly by money
and fears about their job security.
Most people have little creativity - except
when it comes to getting round rules.
Based on Douglas McGregor, ‘The Human Side of Enterprise’, 1960
The industrial age management model not only fails because
markets have changed. It is also misaligned with human nature
Attitude
Direction
Responsibility
Creativity
Motivation
Do you believe in Theory Y?
Firmly?
Good. Because we are sure then you would never, ever practice
(or support, or tolerate) HR processes and tools that treat people like
children, or animals, or worse. Right? Such as performance
appraisals, individual target setting, incentive compensation,
meritocracy, or control of work-hours…
Question:
How often do the systems,
especially the HR systems,
get in the way of change, transformation,
vision and strategic thinking?
Answer:
Far too often.
History often leaves HR people in highly bureaucratic
personnel functions that discourage leadership and make
altering human resource practices a big challenge.
Source: based upon John Kotter, Leading Change, p, 110-111
Do your HR systems make it in people's best interest to
implement your new vision?
What is meant by HR systems?
"  Performance appraisal
"  Compensation
"  Hiring and Promotions
"  Succession planning
"  ...
Most often, examination of a firm's human resource systems reveal:
"  Performance evaluation processes have virtually nothing to do with customers
or strategy – yet that is typically at the core of a new vision or management
model
"  Compensation decisions are based much more on not making mistakes than
on creating the right and useful change
"  Promotion decisions are made in a highly subjective way and seem to have at
best a limited relationship to the change effort
"  Recruiting and hiring systems are a decade old and only marginally support
the transformation
Source: J. Kotter, Leading Change, HBSP, p, 110-111
Performance & Pay
About bonuses, incentives, and pay-for-performance
schemes – and why they cannot work. Also in this
chapter: Practical recommendations for how to create
better pay systems
Let's start with compensation then.
First of all, let's be clear. Carrots don't work.
They might beat the intellect of donkeys. But they certainly
don't trick human beings, who all have “Theory Y”
wiring inside them. Incentives simply don't
have a positive influence on organizational
performance. Period.
So why do so many of us still apply
in the carrot-and-stick method with people?
Real-world stories on the effects of performance management
The case of Marie Taylor
This is what happened:
Marie Taylor, a sales person from our organization, generated income
that goes against her company´s principle “Always act to the benefit
of our customers“.
The decision: Marie Taylor was transferred to the internal sales
support department. All her bonuses rights were immediately
cancelled.
The backdrop:
It is true – all sales people in the firm were obliged to act in the interest of
their customers. And Marie did not act accordingly.
But it is also true that 40% of Marie Taylor´s salary depended on the amount
of net sales she generated.
Real-world stories on the effects of performance management
The case of Frank Miller
This is what happened:
Frank Miller, a consultant, overcharged during his work with
clients, which means he systematically inflated the amount of
hours worked charged to his customers.
The decision: Frank Miller was fired and left the company
immediately.
The backdrop:
It is true: Frank Miller actually acted against the law by charging for more than
he had really worked for at his clients.
But it is also true that 25% of Frank Miller´s income depended on the hours
charged to clients…
An example: “motivation”, or “threat”?
What compensation systems really do...
100%
Base salary
System with no
variable compensation
100%: Total
compensation
expected by
employee.
70%
Base salary
30%
Variable
compensation
System with variable compensation
(bonus, incentive, etc.)
Is this an “energizing
promise”, or is it
just a pitiful threat?
“We have a conservative pay philosophy.
Your base salary equals your total
compensation, which is USD
100.000,00.“
“We have an aggressive pay
philosophy: 30% of your total
compensation will be paid in form of
a bonus. The total is USD
100.000,00, by the way.“
I am arguing against…..
(1)  attributing more importance to money than it actually has,
(2)  pushing money into people's faces and making it more
salient than it needs to be, and
(3)  confusing compensation with reward
(the latter being unnecessary and counterproductive).
The problem isn't with the dollars themselves,
but with using dollars to get people to jump through hoops.
Social scientist Alfie Kohn says:
1.  Pay people well
2.  Pay people fairly
3.  And then do everything possible to take money off peoples minds!
All pay-for-performance plans violate that last precept!
And:
Pay-for-performance is an outgrowth of behaviorism, which is
focused on individual organisms, not systems - and, true to its name,
looks only at behaviors, not at reasons and motives and the people who
have them.
I tell Fortune 500 executives (or at least those foolish enough to ask me)
that the best formula for compensation is this: Pay people well, pay them
fairly, and then do everything possible to help them forget about money.
How should we reward our staff? Not at all! They are not our pets.
Pay them well, respect and trust them, free them from disturbance,
provide them with all available information and support to perform
on the highest possible level.
1 very simple principle:
Never use bonuses and incentives.
Apply profit sharing and/or shareholding concepts
for connectedness.
Let´s leave compensation myths behind!
We found no systemic pattern linking
executive compensation to the process of
going from Good to Great.
Jim Collins, From Good to Great, 2001
Spending time and energy trying to
“motivate” people is a waste of effort...
The key is not to de-motivate them.
Jim Collins, From Good to Great, 2001
Individual incentive pay, in reality, under-
mines performance – of both the individual
and the organization. Jeffrey Pfeffer,
Six Dangerous Myths about Pay, HBR 1998
1 very simple principle:
Always disconnect compensation from targets.
Always.
Variable
area “Ceiling”
Bonus
hurdle
100%:
target
80%
of target
120%
of target
Base salary
Performance as %
of target realization
Salary/
bonus
Common practice:
“Pay for performance“
compensation
profile with fixed
performance contract:
Creates maniuplation
incentive in any situation!
Bonus
limit
Reduction in-
centive: Lower
result more!
Reduction incentive:
postpone results to
next period
Maximization
incentive: Anticipate
results
Actual
result #2
Actual
result #1
Actual
result #3
Performance in
relative evaluation
Salary/
bonus
A better model: Result
oriented compensation
profile with relative
performance
contracts:
No incentive to
manipulation.
Linear compensation curve without breaks:
variable compensation becomes
decoupled from targets
Free from
incentive to manipulate
The problem with “incentives”: How traditional management
systematically forces people to cheat
Source: Michael Jensen
1 very simple principle:
Pay the person. Not the position.
Always.
Variable compensation: Unbundling fixed, individual pay for
performance contracts in favor of relative team improvement
BetaCodex principles advocate basing evaluation and compensation on
relative improvement contracts with hindsight,
rather than fixed performance contracts agreed upon in advance.
In formulating a compensation policy, the BetaCodex mindset leads to
eight key recommendations:
1.  Use the language and thinking of gain sharing, not incentives.
2.  Align pay with strategic measures, not budgets.
3.  Base compensation on relative measures, not fixed targets.
4.  Measure and reward (if needed) the performance of teams, not individuals.
5.  Align pay with interdependent groups, not parochial interests.
6.  Use clear and transparent measures, not unfathomable numbers.
7.  Make compensation fair and inclusive, not unfair and divisive.
8.  To highlight outstanding contributions, use company values, not the numbers.
All employees should earn a
share of the financial success:
Restrain from the idea of
“motivating them“!
Organizations can free themselves from
conventional forms of “pay for performance”,
through simple and more transparent
compensation systems.
Conclusions:
Resource coordination, reinvented
A few words about how to employ resources well,
without the managing
Resources. What most organizations do with them is basically this:
Once a year, they define the size of the pie. Then, they invite managers to
fight for a piece of the action… Organizational research has shown over and
over that this is the fundamental mechanism organizations use… and that it
inevitably leads to sub-optimization, to say the least.
Happily, there is a far better way to steer resources. Just imagine for a
moment that you simply wouldn't define the size of the pie for a fixed period
any more. And that you would take important resource decisions together in
a team, and always as late as possible! (Yes, you read that right!)
Projected
period (e.g. 5 quarters)
Resources
Income as
“total (expected) available resources over time“ -
forecasted as “limiting factor“
Already approved investments -
actively handled as “dynamic portfolio“
Yet uncommited resources –
work actively on available
“options for a better future“
Operational resources –
controlled by Key Performance Indicators (KPIs) –
activities are focused on continuous improvement!
Employing resources dynamically: A typical way of doing it,
as practiced by Sydney Water, Australia
Source: Sydney Water
Setting direction in an age of uncertainty
About targets, the failed promise of MbO,
and the illusion of steering
True, it is tempting to believe that we can
“control”, or “steer” organizations. Looking at the
reports, and indicators, and accounting
statements, it appears that an intelligent
executive might be able to remote-
control a company, right?
Now, the problem is:
That's just a beautiful illusion.
Morpheus to Neo:
"You take the blue pill and the story ends. You wake in your
bed and believe whatever you want to believe....
You take the red pill and you stay in Wonderland and I show
you how deep the rabbit-hole goes."
The world of command and control management and planning-based steering has a lot
to do with the fictitious, machine-generated world in the movie trilogy "The Matrix".
Actually, like in that crucial scene in the first movie of the series, traditional management is
much like the blue pill the movie's hero Neo is offered, and the BetaCodex is the red pill.
Organizations have the choice to either stick with
the illusion of control that their “management by
numbers” delivers, or to acknowledge that there is a
whole world of performance management “beyond
planning and control”. One that doesn't deny uncertainty
and paradoxes. And that makes far better use of people's
talent and potential.
The blue pill: Fixed, negotiated targets
Most
important
competitor
(28%)
Market
(25%)
Plan
(15%)
Actual
(21%)
Target: absolute ROCE in % (here: 15%)
[expected
market Ø: 13%]
Plan
Comparison:
Plan-Actual
Actual
Why traditional management with “fixed performance contracts“
regularly fools us: We have lost control a long time ago…
•  Interpretation within the plan-actual-
comparison: Plan was outperformed by 6
percentage points > positive interpretation
•  Better ROCE of the market average and the
most important competitor remain unnoticed!
The red pill: Relative, self-adjusting targets
Target: relative ROCE in % (to market)
Most
important
competitor
(28%)
Market
(25%)
Target: „ROCE
in % better
than market
average”
Actual
(21%)
•  Interpretation within actual-actual compa-
rison: Performance was 4 percentage points
below competition! > negative interpretation
•  Absolute assumptions at the moment of
planning don't matter.
•  Targets always remain updated and relevant!
[independent
from expected
market Ø]
Target Actual
Comparison:
Market-Actual
Bank to bank
Return on Equity (RoE)
1.  Bank D 31%
2.  Bank J 24%
3.  Bank I 20%
4.  Bank B 18%
5.  Bank E 15%
6.  Bank F 13%
7.  Bank C 12%
8.  Bank H 10%
9.  Bank G 8%
10.  Bank A (2%)
Region to region
Return on Assets(RoA)etc.
1.  Region A 38%
2.  Region C 27%
3.  Region H 20%
4.  Region B 17%
5.  Region F 15%
6.  Region E 12%
7.  Region J 10%
8.  Region I 7%
9.  Region G 6%
10.  Region D (5%)
Branch to branch
Cost/income ratio etc.
1.  Branch J 28%
2.  Branch D 32%
3.  Branch E 37%
4.  Branch A 39%
5.  Branch I 41%
6.  Branch F 45%
7.  Branch C 54%
8.  Branch G 65%
9.  Branch H 72%
10.  Branch B 87%
Strategic „cascade”
Result & value contribution
Leads to lowest operational cost!
Relative target definition through “league tables“ (rankings) –
instead of planned, fixed targets and internal negotiation
Relative targets and
relative compensation
Continuous planning/
control
“On demand“ flow of
resources/
dynamic coordination
Principles
Let´s look at performance differently
About reporting, metrics, indicators, and measuring
performance, without need for planning
Does your organization use “traffic light” reporting?
Those red, orange and green dots indicating what to pay attention to?
Most of these reports are made for managers and executives,
because, so the the story goes, those people have short attention
spans and “need” the color coding.
Now, isn't it fascinating that organizations have such a low opinion of
their supposedly “top” people?
To evaluate performance in an adaptive and dynamic way,
the foundations of performance measurement must shift
From: Against plan To: Against time
• Prior periods
• Progress towards achievement of
medium-term (2-3 years) targets
From: Internal focus To: External focus
• Internal peers
• Competitors
• Benchmarks/Stretch
From: Annual focus To: Trends and “as needed”, always rolling
From: Financial measures To: Few key indicators
From: Closed systems To: Open information systems for all
From: Pure measurement To: Mixed approach of measuring/judging
“Indicators only indicate“, there is no “truth” in the
numbers – living systems cannot be evaluated by
measuring alone!
From: Controlling individuals To: Stopping measurement at team level
Principles for good metrics:
1 It relates to a stakeholder’s goal
2 It helps improve part of the system
3 Data is collected by those who need it
Simple, elegant and relevant: creating reports
without actual-plan-variances, fixed targets, or plans
Trend with references
(A) Maximum
Curve with variance
KPI
(B) Gliding average
Time (Actuals)
Accouts/KPIs vs. Previous periods
last
month
Same
month
last
year
Same
month
prev..
year
Ø
last
12
mnths
Ø
12
prev.
mnths
Indicators
or
Groups of accounts
Ranking (League table) ext./intern.
Company KPI
Competitor A 31%
Competitor E 24%
Competitor C 20%
Us 18%
Competitor B 13%
Competitor D 12%
Competitor G 10%
Competitor F 8%
Regions KPI
Region G 7%
Region E 7%
Region B 6%
Region F 4%
Region A 3%
Region D 3%
Region C 1%
Region H 0%
Trend with benchmark
Us
Competitor A
Time (Actuals)
KPI
Snapshot (static) with benchmarks
KPI 2
Us
Our
unit B
Our
unit A
Compe-
titor B
Compe-
titor A
KPI 1
Trend with tolerance
Tolerance levels
Time (Actuals)
KPI
Us
Remember:
Metrics can be highly useful.
Targets usually are superfluous.
Incentives are always abominable.
A summary
And more. You will set your people free to think and to act like entrepreneurs.
You will make far better use of their talents, and finally stop de-motivating
them.
You will stop fighting against the reality of your marketplace.
Consult the BetaCodex Network's other white papers and
presentation slides for further content-rich material about the
BetaCodex (formerly: the Beyond Budgeting model)
and about how to approach transformation.
By applying the 12 laws of the BetaCodex (on the next page),
you will revolutionize performance management.
The 12 laws of the BetaCodex (formerly: Beyond Budgeting)
are a full set of design principles for a new organization type
Law Beta Alpha
§1 Freedom to act Connectedness not Dependency
§2 Responsibility Cells not Departments
§3 Governance Leadership not Management
§4 Performance climate Result culture not Duty fulfillment
§5 Success Fit not Maximization
§6 Transparency Intelligence flow not Power accumulation
§7 Orientation Relative Targets not Top-down prescription
§8 Recognition Sharing not Incentives
§9 Mental presence Preparedness not Planning
§10 Decision-making Consequence not Bureaucracy
§11 Resource usage Purpose-driven not Status-oriented
§12 Coordination Market dynamics not Commands
Find out more
© BetaCodex Network – All rights reservedWhite paper – The 3 Structures of an Organization 1
Find all BetaCodex Network white papers on www.betacodex.org/papers and on Slideshare.
Special	
  
Edi+on	
  
Special	
  
Edi+on	
  
The BetaCodex Network white papers - so far
www.organizeforcomplexity.com
The “Organize for Complexity” book
English - paperback
German edition
English - ebook
Turkish edition
with Selcuk Alimdar
Portuguese edition
betacodex.org
Get in touch with us for more information about leading BetaCodex transformation,
and ask us for a keynote or a workshop proposal.
Make it real!
Niels Pflaeging
contact@nielspflaeging.com
nielspflaeging.com
New York, Wiesbaden
Valérya Carvalho
mvaleriacarv@gmail.com
LinkedIn
São Paulo
Silke Hermann
silke.hermann@nsights-group.de
insights-group.de
Wiesbaden, Berlin, New York
Lars Vollmer
me@lars-vollmer.com
lars-vollmer.com
Hannover, Stuttgart

More Related Content

What's hot

Change Leadership Workshop: Managing the People Side of Change
Change Leadership Workshop: Managing the People Side of ChangeChange Leadership Workshop: Managing the People Side of Change
Change Leadership Workshop: Managing the People Side of Change
Jewel Celestine Anizor, SPHR, MHRM, M.Ed
 
Future of HR 2022 Slides
Future of HR 2022 SlidesFuture of HR 2022 Slides
Future of HR 2022 Slides
The RBL Group
 
Agile Leadership Training
Agile Leadership TrainingAgile Leadership Training
Agile Leadership Training
Armond Mehrabian
 
Org Physics in Follett's words (BetaCodex18)
Org Physics in Follett's words (BetaCodex18)Org Physics in Follett's words (BetaCodex18)
Org Physics in Follett's words (BetaCodex18)
Niels Pflaeging
 
Modern Agile Management and Leadership
Modern Agile Management and LeadershipModern Agile Management and Leadership
Modern Agile Management and Leadership
Antti Kirjavainen
 
Management 3.0 Workout
Management 3.0 WorkoutManagement 3.0 Workout
Management 3.0 Workout
Jurgen Appelo
 
Turn Your Company Outside-In!, part I+II. A Special Edition Paper on Cell Str...
Turn Your Company Outside-In!, part I+II. A Special Edition Paper on Cell Str...Turn Your Company Outside-In!, part I+II. A Special Edition Paper on Cell Str...
Turn Your Company Outside-In!, part I+II. A Special Edition Paper on Cell Str...
Niels Pflaeging
 
Talent management - The PCMM way
Talent management - The PCMM wayTalent management - The PCMM way
Talent management - The PCMM way
SPIN Chennai
 
Organize for Complexity - Keynote by Niels Pflaeging at Regional Scrum Gather...
Organize for Complexity - Keynote by Niels Pflaeging at Regional Scrum Gather...Organize for Complexity - Keynote by Niels Pflaeging at Regional Scrum Gather...
Organize for Complexity - Keynote by Niels Pflaeging at Regional Scrum Gather...
Niels Pflaeging
 
Impactful Personal Leadership
Impactful Personal LeadershipImpactful Personal Leadership
Impactful Personal Leadership
Aalok Gupta
 
HR transformation
HR transformationHR transformation
HR transformation
Laurence Vanhée
 
When we say HR Business Partner, do you think, "strategic"?
When we say HR Business Partner, do you think, "strategic"?When we say HR Business Partner, do you think, "strategic"?
When we say HR Business Partner, do you think, "strategic"?
PeopleFirm
 
Agility Scales
Agility ScalesAgility Scales
Agility Scales
Jurgen Appelo
 
Leadership agility 360™ presentation
Leadership agility 360™ presentationLeadership agility 360™ presentation
Leadership agility 360™ presentation
SARGIA Partners
 
A fearless culture how psyhological safety promotes innovation webinar- janu...
A fearless culture  how psyhological safety promotes innovation webinar- janu...A fearless culture  how psyhological safety promotes innovation webinar- janu...
A fearless culture how psyhological safety promotes innovation webinar- janu...
Liberationist, Change Leadership
 
Execution - The Discipline of getting things done
Execution - The Discipline of getting things done Execution - The Discipline of getting things done
Execution - The Discipline of getting things done
GMR Group
 
Psychological safety how to build a powerful culture - Webinar
Psychological safety how to build a powerful culture - Webinar Psychological safety how to build a powerful culture - Webinar
Psychological safety how to build a powerful culture - Webinar
Liberationist, Change Leadership
 
Organize for Complexity, part I (BetaCodex12)
 Organize for Complexity, part I (BetaCodex12)  Organize for Complexity, part I (BetaCodex12)
Organize for Complexity, part I (BetaCodex12)
Niels Pflaeging
 
Human Resources For Non HR Manager
Human Resources For Non HR ManagerHuman Resources For Non HR Manager
Human Resources For Non HR Manager
Foster & Bridge Indonesia
 
Systems thinking
Systems thinkingSystems thinking
Systems thinking
Amjad Idries
 

What's hot (20)

Change Leadership Workshop: Managing the People Side of Change
Change Leadership Workshop: Managing the People Side of ChangeChange Leadership Workshop: Managing the People Side of Change
Change Leadership Workshop: Managing the People Side of Change
 
Future of HR 2022 Slides
Future of HR 2022 SlidesFuture of HR 2022 Slides
Future of HR 2022 Slides
 
Agile Leadership Training
Agile Leadership TrainingAgile Leadership Training
Agile Leadership Training
 
Org Physics in Follett's words (BetaCodex18)
Org Physics in Follett's words (BetaCodex18)Org Physics in Follett's words (BetaCodex18)
Org Physics in Follett's words (BetaCodex18)
 
Modern Agile Management and Leadership
Modern Agile Management and LeadershipModern Agile Management and Leadership
Modern Agile Management and Leadership
 
Management 3.0 Workout
Management 3.0 WorkoutManagement 3.0 Workout
Management 3.0 Workout
 
Turn Your Company Outside-In!, part I+II. A Special Edition Paper on Cell Str...
Turn Your Company Outside-In!, part I+II. A Special Edition Paper on Cell Str...Turn Your Company Outside-In!, part I+II. A Special Edition Paper on Cell Str...
Turn Your Company Outside-In!, part I+II. A Special Edition Paper on Cell Str...
 
Talent management - The PCMM way
Talent management - The PCMM wayTalent management - The PCMM way
Talent management - The PCMM way
 
Organize for Complexity - Keynote by Niels Pflaeging at Regional Scrum Gather...
Organize for Complexity - Keynote by Niels Pflaeging at Regional Scrum Gather...Organize for Complexity - Keynote by Niels Pflaeging at Regional Scrum Gather...
Organize for Complexity - Keynote by Niels Pflaeging at Regional Scrum Gather...
 
Impactful Personal Leadership
Impactful Personal LeadershipImpactful Personal Leadership
Impactful Personal Leadership
 
HR transformation
HR transformationHR transformation
HR transformation
 
When we say HR Business Partner, do you think, "strategic"?
When we say HR Business Partner, do you think, "strategic"?When we say HR Business Partner, do you think, "strategic"?
When we say HR Business Partner, do you think, "strategic"?
 
Agility Scales
Agility ScalesAgility Scales
Agility Scales
 
Leadership agility 360™ presentation
Leadership agility 360™ presentationLeadership agility 360™ presentation
Leadership agility 360™ presentation
 
A fearless culture how psyhological safety promotes innovation webinar- janu...
A fearless culture  how psyhological safety promotes innovation webinar- janu...A fearless culture  how psyhological safety promotes innovation webinar- janu...
A fearless culture how psyhological safety promotes innovation webinar- janu...
 
Execution - The Discipline of getting things done
Execution - The Discipline of getting things done Execution - The Discipline of getting things done
Execution - The Discipline of getting things done
 
Psychological safety how to build a powerful culture - Webinar
Psychological safety how to build a powerful culture - Webinar Psychological safety how to build a powerful culture - Webinar
Psychological safety how to build a powerful culture - Webinar
 
Organize for Complexity, part I (BetaCodex12)
 Organize for Complexity, part I (BetaCodex12)  Organize for Complexity, part I (BetaCodex12)
Organize for Complexity, part I (BetaCodex12)
 
Human Resources For Non HR Manager
Human Resources For Non HR ManagerHuman Resources For Non HR Manager
Human Resources For Non HR Manager
 
Systems thinking
Systems thinkingSystems thinking
Systems thinking
 

Viewers also liked

The Case for Transformation (BetaCodex05)
The Case for Transformation (BetaCodex05)The Case for Transformation (BetaCodex05)
The Case for Transformation (BetaCodex05)
Niels Pflaeging
 
Turn Your Company Outside-In! A paper on cell structure design, part I (BetaC...
Turn Your Company Outside-In! A paper on cell structure design, part I (BetaC...Turn Your Company Outside-In! A paper on cell structure design, part I (BetaC...
Turn Your Company Outside-In! A paper on cell structure design, part I (BetaC...
Niels Pflaeging
 
Turn Your Company Outside-In! A paper on cell structure design, part II (Beta...
Turn Your Company Outside-In! A paper on cell structure design, part II (Beta...Turn Your Company Outside-In! A paper on cell structure design, part II (Beta...
Turn Your Company Outside-In! A paper on cell structure design, part II (Beta...
Niels Pflaeging
 
Organize for Complexity - keynote at Dare Festival 2014 (Antwerp/BE)
Organize for Complexity - keynote at Dare Festival 2014 (Antwerp/BE)Organize for Complexity - keynote at Dare Festival 2014 (Antwerp/BE)
Organize for Complexity - keynote at Dare Festival 2014 (Antwerp/BE)
Niels Pflaeging
 
Heroes of Leadership (BetaCodex14)
Heroes of Leadership (BetaCodex14)Heroes of Leadership (BetaCodex14)
Heroes of Leadership (BetaCodex14)
Niels Pflaeging
 
Dynamic-Robust Problem Solving (BetaCodex07)
Dynamic-Robust Problem Solving (BetaCodex07)Dynamic-Robust Problem Solving (BetaCodex07)
Dynamic-Robust Problem Solving (BetaCodex07)
Niels Pflaeging
 
Organisation für Komplexität - Keynote von Niels Pfläging bei der CIB Control...
Organisation für Komplexität - Keynote von Niels Pfläging bei der CIB Control...Organisation für Komplexität - Keynote von Niels Pfläging bei der CIB Control...
Organisation für Komplexität - Keynote von Niels Pfläging bei der CIB Control...
Niels Pflaeging
 
Organisation, Arbeit & Leistung in Komplexität - Keynote von Niels Pfläging, ...
Organisation, Arbeit & Leistung in Komplexität - Keynote von Niels Pfläging, ...Organisation, Arbeit & Leistung in Komplexität - Keynote von Niels Pfläging, ...
Organisation, Arbeit & Leistung in Komplexität - Keynote von Niels Pfläging, ...
Niels Pflaeging
 
Heart of Transformation Agile Bodensee
Heart of Transformation Agile BodenseeHeart of Transformation Agile Bodensee
Heart of Transformation Agile Bodensee
Olaf Lewitz
 
Xing New Work Night
Xing New Work NightXing New Work Night
Xing New Work Night
Peter Kruse
 
Beyond Budgeting - Creating High-Performance Organizations for Today’s Market...
Beyond Budgeting - Creating High-Performance Organizations for Today’s Market...Beyond Budgeting - Creating High-Performance Organizations for Today’s Market...
Beyond Budgeting - Creating High-Performance Organizations for Today’s Market...
Niels Pflaeging
 
Presenting the BetaCodex (BetaCodex06)
Presenting the BetaCodex (BetaCodex06)Presenting the BetaCodex (BetaCodex06)
Presenting the BetaCodex (BetaCodex06)
Niels Pflaeging
 
Bye-bye Management! Why management is dispensable & how leadership for high p...
Bye-bye Management! Why management is dispensable & how leadership for high p...Bye-bye Management! Why management is dispensable & how leadership for high p...
Bye-bye Management! Why management is dispensable & how leadership for high p...
Niels Pflaeging
 
Interview zum Buch
Interview zum BuchInterview zum Buch
Interview zum Buch
Niels Pflaeging
 
Organize for Complexity, part II (BetaCodex13)
Organize for Complexity, part II (BetaCodex13) Organize for Complexity, part II (BetaCodex13)
Organize for Complexity, part II (BetaCodex13)
Niels Pflaeging
 
Transformation as Social Movement (BetaCodex04)
Transformation as Social Movement (BetaCodex04)Transformation as Social Movement (BetaCodex04)
Transformation as Social Movement (BetaCodex04)
Niels Pflaeging
 
Why management is quackery. Keynote by Niels Pflaeging at HFU Business School...
Why management is quackery. Keynote by Niels Pflaeging at HFU Business School...Why management is quackery. Keynote by Niels Pflaeging at HFU Business School...
Why management is quackery. Keynote by Niels Pflaeging at HFU Business School...
Niels Pflaeging
 
Techniques for Transformation (BetaCodex 01)
Techniques for Transformation (BetaCodex 01)Techniques for Transformation (BetaCodex 01)
Techniques for Transformation (BetaCodex 01)
Niels Pflaeging
 
Probekapitel
ProbekapitelProbekapitel
Probekapitel
Niels Pflaeging
 
Introducing the BetaCodex Network (BetaCodex 03)
Introducing the BetaCodex Network (BetaCodex 03)Introducing the BetaCodex Network (BetaCodex 03)
Introducing the BetaCodex Network (BetaCodex 03)
Niels Pflaeging
 

Viewers also liked (20)

The Case for Transformation (BetaCodex05)
The Case for Transformation (BetaCodex05)The Case for Transformation (BetaCodex05)
The Case for Transformation (BetaCodex05)
 
Turn Your Company Outside-In! A paper on cell structure design, part I (BetaC...
Turn Your Company Outside-In! A paper on cell structure design, part I (BetaC...Turn Your Company Outside-In! A paper on cell structure design, part I (BetaC...
Turn Your Company Outside-In! A paper on cell structure design, part I (BetaC...
 
Turn Your Company Outside-In! A paper on cell structure design, part II (Beta...
Turn Your Company Outside-In! A paper on cell structure design, part II (Beta...Turn Your Company Outside-In! A paper on cell structure design, part II (Beta...
Turn Your Company Outside-In! A paper on cell structure design, part II (Beta...
 
Organize for Complexity - keynote at Dare Festival 2014 (Antwerp/BE)
Organize for Complexity - keynote at Dare Festival 2014 (Antwerp/BE)Organize for Complexity - keynote at Dare Festival 2014 (Antwerp/BE)
Organize for Complexity - keynote at Dare Festival 2014 (Antwerp/BE)
 
Heroes of Leadership (BetaCodex14)
Heroes of Leadership (BetaCodex14)Heroes of Leadership (BetaCodex14)
Heroes of Leadership (BetaCodex14)
 
Dynamic-Robust Problem Solving (BetaCodex07)
Dynamic-Robust Problem Solving (BetaCodex07)Dynamic-Robust Problem Solving (BetaCodex07)
Dynamic-Robust Problem Solving (BetaCodex07)
 
Organisation für Komplexität - Keynote von Niels Pfläging bei der CIB Control...
Organisation für Komplexität - Keynote von Niels Pfläging bei der CIB Control...Organisation für Komplexität - Keynote von Niels Pfläging bei der CIB Control...
Organisation für Komplexität - Keynote von Niels Pfläging bei der CIB Control...
 
Organisation, Arbeit & Leistung in Komplexität - Keynote von Niels Pfläging, ...
Organisation, Arbeit & Leistung in Komplexität - Keynote von Niels Pfläging, ...Organisation, Arbeit & Leistung in Komplexität - Keynote von Niels Pfläging, ...
Organisation, Arbeit & Leistung in Komplexität - Keynote von Niels Pfläging, ...
 
Heart of Transformation Agile Bodensee
Heart of Transformation Agile BodenseeHeart of Transformation Agile Bodensee
Heart of Transformation Agile Bodensee
 
Xing New Work Night
Xing New Work NightXing New Work Night
Xing New Work Night
 
Beyond Budgeting - Creating High-Performance Organizations for Today’s Market...
Beyond Budgeting - Creating High-Performance Organizations for Today’s Market...Beyond Budgeting - Creating High-Performance Organizations for Today’s Market...
Beyond Budgeting - Creating High-Performance Organizations for Today’s Market...
 
Presenting the BetaCodex (BetaCodex06)
Presenting the BetaCodex (BetaCodex06)Presenting the BetaCodex (BetaCodex06)
Presenting the BetaCodex (BetaCodex06)
 
Bye-bye Management! Why management is dispensable & how leadership for high p...
Bye-bye Management! Why management is dispensable & how leadership for high p...Bye-bye Management! Why management is dispensable & how leadership for high p...
Bye-bye Management! Why management is dispensable & how leadership for high p...
 
Interview zum Buch
Interview zum BuchInterview zum Buch
Interview zum Buch
 
Organize for Complexity, part II (BetaCodex13)
Organize for Complexity, part II (BetaCodex13) Organize for Complexity, part II (BetaCodex13)
Organize for Complexity, part II (BetaCodex13)
 
Transformation as Social Movement (BetaCodex04)
Transformation as Social Movement (BetaCodex04)Transformation as Social Movement (BetaCodex04)
Transformation as Social Movement (BetaCodex04)
 
Why management is quackery. Keynote by Niels Pflaeging at HFU Business School...
Why management is quackery. Keynote by Niels Pflaeging at HFU Business School...Why management is quackery. Keynote by Niels Pflaeging at HFU Business School...
Why management is quackery. Keynote by Niels Pflaeging at HFU Business School...
 
Techniques for Transformation (BetaCodex 01)
Techniques for Transformation (BetaCodex 01)Techniques for Transformation (BetaCodex 01)
Techniques for Transformation (BetaCodex 01)
 
Probekapitel
ProbekapitelProbekapitel
Probekapitel
 
Introducing the BetaCodex Network (BetaCodex 03)
Introducing the BetaCodex Network (BetaCodex 03)Introducing the BetaCodex Network (BetaCodex 03)
Introducing the BetaCodex Network (BetaCodex 03)
 

Similar to Making Performance Work (BetaCodex10)

Hr practice
Hr practiceHr practice
Hr practice
Rahul Sharma
 
Execution turning vision into reality
Execution turning vision into realityExecution turning vision into reality
Execution turning vision into reality
rohtashmal
 
Future of work: Self-management, business purpose and employee engagement
Future of work: Self-management, business purpose and employee engagementFuture of work: Self-management, business purpose and employee engagement
Future of work: Self-management, business purpose and employee engagement
Coincidencity
 
Strategic planning
Strategic planningStrategic planning
Strategic planning
Rubel Ahmad
 
Business Agility and Organisational Learning
Business Agility and Organisational LearningBusiness Agility and Organisational Learning
Business Agility and Organisational Learning
Shoaib Shaukat
 
Future of work: self-management
Future of work: self-managementFuture of work: self-management
Future of work: self-management
MWCC Markus Weigl Consulting & Coaching
 
Enterprations Weekly Strategy, Number 1 April, 2017
Enterprations Weekly Strategy, Number 1 April, 2017Enterprations Weekly Strategy, Number 1 April, 2017
Enterprations Weekly Strategy, Number 1 April, 2017
Mutiu Iyanda, mMBA, ASM
 
Success and failure in Organisation Design
Success and failure in Organisation DesignSuccess and failure in Organisation Design
Success and failure in Organisation Design
AnshumanSingh295
 
INNOVATION : A discussion stimulant by Maurizio Morselli
INNOVATION  : A discussion stimulant by Maurizio MorselliINNOVATION  : A discussion stimulant by Maurizio Morselli
INNOVATION : A discussion stimulant by Maurizio Morselli
Maurizio Morselli
 
CPA Congress Sydney 2015 - Day Three Wrap Up
CPA Congress Sydney 2015 - Day Three Wrap UpCPA Congress Sydney 2015 - Day Three Wrap Up
CPA Congress Sydney 2015 - Day Three Wrap Up
CPA Australia
 
Incentive Compensation
Incentive CompensationIncentive Compensation
Incentive Compensation
Leslie Lee
 
Innovation Excellence Weekly - Issue 34
Innovation Excellence Weekly - Issue 34Innovation Excellence Weekly - Issue 34
Innovation Excellence Weekly - Issue 34
Innovation Excellence
 
Excite Your People & Double Profits
Excite Your People & Double ProfitsExcite Your People & Double Profits
Excite Your People & Double Profits
etreleaven
 
the-effective-founders-project.pdf
the-effective-founders-project.pdfthe-effective-founders-project.pdf
the-effective-founders-project.pdf
nicklin54
 
Agile project management meetup feb 20
Agile project management meetup feb 20Agile project management meetup feb 20
Agile project management meetup feb 20
Phillip Gadzinski
 
Serial entrepreneurs
Serial entrepreneursSerial entrepreneurs
Serial entrepreneurs
Octav Druta
 
ACCT2118 - Industrial Project - Skill Audit
ACCT2118 - Industrial Project - Skill AuditACCT2118 - Industrial Project - Skill Audit
ACCT2118 - Industrial Project - Skill Audit
Huy Tran
 
InnoVits - Aiesec 29 ottobre 2014
InnoVits - Aiesec 29 ottobre 2014InnoVits - Aiesec 29 ottobre 2014
InnoVits - Aiesec 29 ottobre 2014
InnoVits
 
Innovits aiesec29ottobre2014
Innovits aiesec29ottobre2014 Innovits aiesec29ottobre2014
Innovits aiesec29ottobre2014
Stefano Mizio
 
Engaging your business - a demystified approach to employee engagement
Engaging your business  -  a demystified approach to employee engagementEngaging your business  -  a demystified approach to employee engagement
Engaging your business - a demystified approach to employee engagement
Cecil van Niekerk
 

Similar to Making Performance Work (BetaCodex10) (20)

Hr practice
Hr practiceHr practice
Hr practice
 
Execution turning vision into reality
Execution turning vision into realityExecution turning vision into reality
Execution turning vision into reality
 
Future of work: Self-management, business purpose and employee engagement
Future of work: Self-management, business purpose and employee engagementFuture of work: Self-management, business purpose and employee engagement
Future of work: Self-management, business purpose and employee engagement
 
Strategic planning
Strategic planningStrategic planning
Strategic planning
 
Business Agility and Organisational Learning
Business Agility and Organisational LearningBusiness Agility and Organisational Learning
Business Agility and Organisational Learning
 
Future of work: self-management
Future of work: self-managementFuture of work: self-management
Future of work: self-management
 
Enterprations Weekly Strategy, Number 1 April, 2017
Enterprations Weekly Strategy, Number 1 April, 2017Enterprations Weekly Strategy, Number 1 April, 2017
Enterprations Weekly Strategy, Number 1 April, 2017
 
Success and failure in Organisation Design
Success and failure in Organisation DesignSuccess and failure in Organisation Design
Success and failure in Organisation Design
 
INNOVATION : A discussion stimulant by Maurizio Morselli
INNOVATION  : A discussion stimulant by Maurizio MorselliINNOVATION  : A discussion stimulant by Maurizio Morselli
INNOVATION : A discussion stimulant by Maurizio Morselli
 
CPA Congress Sydney 2015 - Day Three Wrap Up
CPA Congress Sydney 2015 - Day Three Wrap UpCPA Congress Sydney 2015 - Day Three Wrap Up
CPA Congress Sydney 2015 - Day Three Wrap Up
 
Incentive Compensation
Incentive CompensationIncentive Compensation
Incentive Compensation
 
Innovation Excellence Weekly - Issue 34
Innovation Excellence Weekly - Issue 34Innovation Excellence Weekly - Issue 34
Innovation Excellence Weekly - Issue 34
 
Excite Your People & Double Profits
Excite Your People & Double ProfitsExcite Your People & Double Profits
Excite Your People & Double Profits
 
the-effective-founders-project.pdf
the-effective-founders-project.pdfthe-effective-founders-project.pdf
the-effective-founders-project.pdf
 
Agile project management meetup feb 20
Agile project management meetup feb 20Agile project management meetup feb 20
Agile project management meetup feb 20
 
Serial entrepreneurs
Serial entrepreneursSerial entrepreneurs
Serial entrepreneurs
 
ACCT2118 - Industrial Project - Skill Audit
ACCT2118 - Industrial Project - Skill AuditACCT2118 - Industrial Project - Skill Audit
ACCT2118 - Industrial Project - Skill Audit
 
InnoVits - Aiesec 29 ottobre 2014
InnoVits - Aiesec 29 ottobre 2014InnoVits - Aiesec 29 ottobre 2014
InnoVits - Aiesec 29 ottobre 2014
 
Innovits aiesec29ottobre2014
Innovits aiesec29ottobre2014 Innovits aiesec29ottobre2014
Innovits aiesec29ottobre2014
 
Engaging your business - a demystified approach to employee engagement
Engaging your business  -  a demystified approach to employee engagementEngaging your business  -  a demystified approach to employee engagement
Engaging your business - a demystified approach to employee engagement
 

More from Niels Pflaeging

The EdTech Triad: How tech, didactics & content interact. What this means for...
The EdTech Triad: How tech, didactics & content interact. What this means for...The EdTech Triad: How tech, didactics & content interact. What this means for...
The EdTech Triad: How tech, didactics & content interact. What this means for...
Niels Pflaeging
 
Work the System - Keynote von Niels Pfläging bei der Solutions: 2022 (Hamburg/D)
Work the System - Keynote von Niels Pfläging bei der Solutions: 2022 (Hamburg/D)Work the System - Keynote von Niels Pfläging bei der Solutions: 2022 (Hamburg/D)
Work the System - Keynote von Niels Pfläging bei der Solutions: 2022 (Hamburg/D)
Niels Pflaeging
 
Die Erfindung zweier Managements (BetaCodex17)
Die Erfindung zweier Managements (BetaCodex17)Die Erfindung zweier Managements (BetaCodex17)
Die Erfindung zweier Managements (BetaCodex17)
Niels Pflaeging
 
Work the System - Keynote von Niels Pfläging bei Lean Around the Clock 2022 (...
Work the System - Keynote von Niels Pfläging bei Lean Around the Clock 2022 (...Work the System - Keynote von Niels Pfläging bei Lean Around the Clock 2022 (...
Work the System - Keynote von Niels Pfläging bei Lean Around the Clock 2022 (...
Niels Pflaeging
 
The future of organizational learning is discursive & self-organized
The future of organizational learning is discursive & self-organizedThe future of organizational learning is discursive & self-organized
The future of organizational learning is discursive & self-organized
Niels Pflaeging
 
The small group miracle: Where learning & performance meet
The small group miracle: Where learning & performance meetThe small group miracle: Where learning & performance meet
The small group miracle: Where learning & performance meet
Niels Pflaeging
 
Technology, didactics, content: The triad of discourse learning
Technology, didactics, content:  The triad of discourse learningTechnology, didactics, content:  The triad of discourse learning
Technology, didactics, content: The triad of discourse learning
Niels Pflaeging
 
Wunderding Kleingruppe: Nahtstelle zwischen Lernen & Entwicklung
Wunderding Kleingruppe: Nahtstelle zwischen Lernen & EntwicklungWunderding Kleingruppe: Nahtstelle zwischen Lernen & Entwicklung
Wunderding Kleingruppe: Nahtstelle zwischen Lernen & Entwicklung
Niels Pflaeging
 
Technologie, Didaktik, Content: Der Dreiklang des Diskurslernens
Technologie, Didaktik, Content: Der Dreiklang des DiskurslernensTechnologie, Didaktik, Content: Der Dreiklang des Diskurslernens
Technologie, Didaktik, Content: Der Dreiklang des Diskurslernens
Niels Pflaeging
 
Die Zukunft des Organisationslernens ist diskursiv & selbstorganisiert
Die Zukunft des Organisationslernens ist diskursiv & selbstorganisiertDie Zukunft des Organisationslernens ist diskursiv & selbstorganisiert
Die Zukunft des Organisationslernens ist diskursiv & selbstorganisiert
Niels Pflaeging
 
Work the System – keynote by Niels Pflaeging at Comeleon 2021 (Zagreb/HR)
Work the System – keynote by Niels Pflaeging at Comeleon 2021 (Zagreb/HR)Work the System – keynote by Niels Pflaeging at Comeleon 2021 (Zagreb/HR)
Work the System – keynote by Niels Pflaeging at Comeleon 2021 (Zagreb/HR)
Niels Pflaeging
 
Die Macht der Ist-Zahlen - Keynote von Niels Pflaeging beim Candis Next Level...
Die Macht der Ist-Zahlen - Keynote von Niels Pflaeging beim Candis Next Level...Die Macht der Ist-Zahlen - Keynote von Niels Pflaeging beim Candis Next Level...
Die Macht der Ist-Zahlen - Keynote von Niels Pflaeging beim Candis Next Level...
Niels Pflaeging
 
Organisationsphysik: Strukturen, Macht & Leaderships (BetaCodex 11)
Organisationsphysik: Strukturen, Macht & Leaderships (BetaCodex 11)Organisationsphysik: Strukturen, Macht & Leaderships (BetaCodex 11)
Organisationsphysik: Strukturen, Macht & Leaderships (BetaCodex 11)
Niels Pflaeging
 
The Invention of Managements (BetaCodex17)
The Invention of Managements (BetaCodex17)The Invention of Managements (BetaCodex17)
The Invention of Managements (BetaCodex17)
Niels Pflaeging
 
Performancesysteme und Relative Ziele (BetaCodex 10)
Performancesysteme und Relative Ziele (BetaCodex 10)Performancesysteme und Relative Ziele (BetaCodex 10)
Performancesysteme und Relative Ziele (BetaCodex 10)
Niels Pflaeging
 
Niels Pflaeging speaker profile 02-2021
Niels Pflaeging speaker profile 02-2021Niels Pflaeging speaker profile 02-2021
Niels Pflaeging speaker profile 02-2021
Niels Pflaeging
 
Von Hier nach Neu im Jetzt: Change als Flippen (BetaCodex16)
Von Hier nach Neu im Jetzt:Change als Flippen (BetaCodex16)Von Hier nach Neu im Jetzt:Change als Flippen (BetaCodex16)
Von Hier nach Neu im Jetzt: Change als Flippen (BetaCodex16)
Niels Pflaeging
 
Organisation und Arbeit im Zeitalter der Komplexität
Organisation und Arbeit im Zeitalter der KomplexitätOrganisation und Arbeit im Zeitalter der Komplexität
Organisation und Arbeit im Zeitalter der Komplexität
Niels Pflaeging
 
Change is more like adding milk to coffee! - Niels Pflaeging at Remote Work 2...
Change is more like adding milk to coffee! - Niels Pflaeging at Remote Work 2...Change is more like adding milk to coffee! - Niels Pflaeging at Remote Work 2...
Change is more like adding milk to coffee! - Niels Pflaeging at Remote Work 2...
Niels Pflaeging
 
Organizar para la Complejidad - Keynote by Niels Pflaeging at Mondragon Foro ...
Organizar para la Complejidad - Keynote by Niels Pflaeging at Mondragon Foro ...Organizar para la Complejidad - Keynote by Niels Pflaeging at Mondragon Foro ...
Organizar para la Complejidad - Keynote by Niels Pflaeging at Mondragon Foro ...
Niels Pflaeging
 

More from Niels Pflaeging (20)

The EdTech Triad: How tech, didactics & content interact. What this means for...
The EdTech Triad: How tech, didactics & content interact. What this means for...The EdTech Triad: How tech, didactics & content interact. What this means for...
The EdTech Triad: How tech, didactics & content interact. What this means for...
 
Work the System - Keynote von Niels Pfläging bei der Solutions: 2022 (Hamburg/D)
Work the System - Keynote von Niels Pfläging bei der Solutions: 2022 (Hamburg/D)Work the System - Keynote von Niels Pfläging bei der Solutions: 2022 (Hamburg/D)
Work the System - Keynote von Niels Pfläging bei der Solutions: 2022 (Hamburg/D)
 
Die Erfindung zweier Managements (BetaCodex17)
Die Erfindung zweier Managements (BetaCodex17)Die Erfindung zweier Managements (BetaCodex17)
Die Erfindung zweier Managements (BetaCodex17)
 
Work the System - Keynote von Niels Pfläging bei Lean Around the Clock 2022 (...
Work the System - Keynote von Niels Pfläging bei Lean Around the Clock 2022 (...Work the System - Keynote von Niels Pfläging bei Lean Around the Clock 2022 (...
Work the System - Keynote von Niels Pfläging bei Lean Around the Clock 2022 (...
 
The future of organizational learning is discursive & self-organized
The future of organizational learning is discursive & self-organizedThe future of organizational learning is discursive & self-organized
The future of organizational learning is discursive & self-organized
 
The small group miracle: Where learning & performance meet
The small group miracle: Where learning & performance meetThe small group miracle: Where learning & performance meet
The small group miracle: Where learning & performance meet
 
Technology, didactics, content: The triad of discourse learning
Technology, didactics, content:  The triad of discourse learningTechnology, didactics, content:  The triad of discourse learning
Technology, didactics, content: The triad of discourse learning
 
Wunderding Kleingruppe: Nahtstelle zwischen Lernen & Entwicklung
Wunderding Kleingruppe: Nahtstelle zwischen Lernen & EntwicklungWunderding Kleingruppe: Nahtstelle zwischen Lernen & Entwicklung
Wunderding Kleingruppe: Nahtstelle zwischen Lernen & Entwicklung
 
Technologie, Didaktik, Content: Der Dreiklang des Diskurslernens
Technologie, Didaktik, Content: Der Dreiklang des DiskurslernensTechnologie, Didaktik, Content: Der Dreiklang des Diskurslernens
Technologie, Didaktik, Content: Der Dreiklang des Diskurslernens
 
Die Zukunft des Organisationslernens ist diskursiv & selbstorganisiert
Die Zukunft des Organisationslernens ist diskursiv & selbstorganisiertDie Zukunft des Organisationslernens ist diskursiv & selbstorganisiert
Die Zukunft des Organisationslernens ist diskursiv & selbstorganisiert
 
Work the System – keynote by Niels Pflaeging at Comeleon 2021 (Zagreb/HR)
Work the System – keynote by Niels Pflaeging at Comeleon 2021 (Zagreb/HR)Work the System – keynote by Niels Pflaeging at Comeleon 2021 (Zagreb/HR)
Work the System – keynote by Niels Pflaeging at Comeleon 2021 (Zagreb/HR)
 
Die Macht der Ist-Zahlen - Keynote von Niels Pflaeging beim Candis Next Level...
Die Macht der Ist-Zahlen - Keynote von Niels Pflaeging beim Candis Next Level...Die Macht der Ist-Zahlen - Keynote von Niels Pflaeging beim Candis Next Level...
Die Macht der Ist-Zahlen - Keynote von Niels Pflaeging beim Candis Next Level...
 
Organisationsphysik: Strukturen, Macht & Leaderships (BetaCodex 11)
Organisationsphysik: Strukturen, Macht & Leaderships (BetaCodex 11)Organisationsphysik: Strukturen, Macht & Leaderships (BetaCodex 11)
Organisationsphysik: Strukturen, Macht & Leaderships (BetaCodex 11)
 
The Invention of Managements (BetaCodex17)
The Invention of Managements (BetaCodex17)The Invention of Managements (BetaCodex17)
The Invention of Managements (BetaCodex17)
 
Performancesysteme und Relative Ziele (BetaCodex 10)
Performancesysteme und Relative Ziele (BetaCodex 10)Performancesysteme und Relative Ziele (BetaCodex 10)
Performancesysteme und Relative Ziele (BetaCodex 10)
 
Niels Pflaeging speaker profile 02-2021
Niels Pflaeging speaker profile 02-2021Niels Pflaeging speaker profile 02-2021
Niels Pflaeging speaker profile 02-2021
 
Von Hier nach Neu im Jetzt: Change als Flippen (BetaCodex16)
Von Hier nach Neu im Jetzt:Change als Flippen (BetaCodex16)Von Hier nach Neu im Jetzt:Change als Flippen (BetaCodex16)
Von Hier nach Neu im Jetzt: Change als Flippen (BetaCodex16)
 
Organisation und Arbeit im Zeitalter der Komplexität
Organisation und Arbeit im Zeitalter der KomplexitätOrganisation und Arbeit im Zeitalter der Komplexität
Organisation und Arbeit im Zeitalter der Komplexität
 
Change is more like adding milk to coffee! - Niels Pflaeging at Remote Work 2...
Change is more like adding milk to coffee! - Niels Pflaeging at Remote Work 2...Change is more like adding milk to coffee! - Niels Pflaeging at Remote Work 2...
Change is more like adding milk to coffee! - Niels Pflaeging at Remote Work 2...
 
Organizar para la Complejidad - Keynote by Niels Pflaeging at Mondragon Foro ...
Organizar para la Complejidad - Keynote by Niels Pflaeging at Mondragon Foro ...Organizar para la Complejidad - Keynote by Niels Pflaeging at Mondragon Foro ...
Organizar para la Complejidad - Keynote by Niels Pflaeging at Mondragon Foro ...
 

Recently uploaded

How are Lilac French Bulldogs Beauty Charming the World and Capturing Hearts....
How are Lilac French Bulldogs Beauty Charming the World and Capturing Hearts....How are Lilac French Bulldogs Beauty Charming the World and Capturing Hearts....
How are Lilac French Bulldogs Beauty Charming the World and Capturing Hearts....
Lacey Max
 
Unveiling the Dynamic Personalities, Key Dates, and Horoscope Insights: Gemin...
Unveiling the Dynamic Personalities, Key Dates, and Horoscope Insights: Gemin...Unveiling the Dynamic Personalities, Key Dates, and Horoscope Insights: Gemin...
Unveiling the Dynamic Personalities, Key Dates, and Horoscope Insights: Gemin...
my Pandit
 
2022 Vintage Roman Numerals Men Rings
2022 Vintage Roman  Numerals  Men  Rings2022 Vintage Roman  Numerals  Men  Rings
2022 Vintage Roman Numerals Men Rings
aragme
 
Lundin Gold Corporate Presentation - June 2024
Lundin Gold Corporate Presentation - June 2024Lundin Gold Corporate Presentation - June 2024
Lundin Gold Corporate Presentation - June 2024
Adnet Communications
 
Understanding User Needs and Satisfying Them
Understanding User Needs and Satisfying ThemUnderstanding User Needs and Satisfying Them
Understanding User Needs and Satisfying Them
Aggregage
 
Creative Web Design Company in Singapore
Creative Web Design Company in SingaporeCreative Web Design Company in Singapore
Creative Web Design Company in Singapore
techboxsqauremedia
 
Mastering B2B Payments Webinar from BlueSnap
Mastering B2B Payments Webinar from BlueSnapMastering B2B Payments Webinar from BlueSnap
Mastering B2B Payments Webinar from BlueSnap
Norma Mushkat Gaffin
 
Innovation Management Frameworks: Your Guide to Creativity & Innovation
Innovation Management Frameworks: Your Guide to Creativity & InnovationInnovation Management Frameworks: Your Guide to Creativity & Innovation
Innovation Management Frameworks: Your Guide to Creativity & Innovation
Operational Excellence Consulting
 
amptalk_RecruitingDeck_english_2024.06.05
amptalk_RecruitingDeck_english_2024.06.05amptalk_RecruitingDeck_english_2024.06.05
amptalk_RecruitingDeck_english_2024.06.05
marketing317746
 
-- June 2024 is National Volunteer Month --
-- June 2024 is National Volunteer Month ---- June 2024 is National Volunteer Month --
-- June 2024 is National Volunteer Month --
NZSG
 
Best practices for project execution and delivery
Best practices for project execution and deliveryBest practices for project execution and delivery
Best practices for project execution and delivery
CLIVE MINCHIN
 
Zodiac Signs and Food Preferences_ What Your Sign Says About Your Taste
Zodiac Signs and Food Preferences_ What Your Sign Says About Your TasteZodiac Signs and Food Preferences_ What Your Sign Says About Your Taste
Zodiac Signs and Food Preferences_ What Your Sign Says About Your Taste
my Pandit
 
Part 2 Deep Dive: Navigating the 2024 Slowdown
Part 2 Deep Dive: Navigating the 2024 SlowdownPart 2 Deep Dive: Navigating the 2024 Slowdown
Part 2 Deep Dive: Navigating the 2024 Slowdown
jeffkluth1
 
Dpboss Matka Guessing Satta Matta Matka Kalyan Chart Satta Matka
Dpboss Matka Guessing Satta Matta Matka Kalyan Chart Satta MatkaDpboss Matka Guessing Satta Matta Matka Kalyan Chart Satta Matka
Dpboss Matka Guessing Satta Matta Matka Kalyan Chart Satta Matka
➒➌➎➏➑➐➋➑➐➐Dpboss Matka Guessing Satta Matka Kalyan Chart Indian Matka
 
The Heart of Leadership_ How Emotional Intelligence Drives Business Success B...
The Heart of Leadership_ How Emotional Intelligence Drives Business Success B...The Heart of Leadership_ How Emotional Intelligence Drives Business Success B...
The Heart of Leadership_ How Emotional Intelligence Drives Business Success B...
Stephen Cashman
 
Income Tax exemption for Start up : Section 80 IAC
Income Tax  exemption for Start up : Section 80 IACIncome Tax  exemption for Start up : Section 80 IAC
Income Tax exemption for Start up : Section 80 IAC
CA Dr. Prithvi Ranjan Parhi
 
Easily Verify Compliance and Security with Binance KYC
Easily Verify Compliance and Security with Binance KYCEasily Verify Compliance and Security with Binance KYC
Easily Verify Compliance and Security with Binance KYC
Any kyc Account
 
3 Simple Steps To Buy Verified Payoneer Account In 2024
3 Simple Steps To Buy Verified Payoneer Account In 20243 Simple Steps To Buy Verified Payoneer Account In 2024
3 Simple Steps To Buy Verified Payoneer Account In 2024
SEOSMMEARTH
 
The Genesis of BriansClub.cm Famous Dark WEb Platform
The Genesis of BriansClub.cm Famous Dark WEb PlatformThe Genesis of BriansClub.cm Famous Dark WEb Platform
The Genesis of BriansClub.cm Famous Dark WEb Platform
SabaaSudozai
 
Satta Matka Dpboss Matka Guessing Kalyan Chart Indian Matka Kalyan panel Chart
Satta Matka Dpboss Matka Guessing Kalyan Chart Indian Matka Kalyan panel ChartSatta Matka Dpboss Matka Guessing Kalyan Chart Indian Matka Kalyan panel Chart
Satta Matka Dpboss Matka Guessing Kalyan Chart Indian Matka Kalyan panel Chart
➒➌➎➏➑➐➋➑➐➐Dpboss Matka Guessing Satta Matka Kalyan Chart Indian Matka
 

Recently uploaded (20)

How are Lilac French Bulldogs Beauty Charming the World and Capturing Hearts....
How are Lilac French Bulldogs Beauty Charming the World and Capturing Hearts....How are Lilac French Bulldogs Beauty Charming the World and Capturing Hearts....
How are Lilac French Bulldogs Beauty Charming the World and Capturing Hearts....
 
Unveiling the Dynamic Personalities, Key Dates, and Horoscope Insights: Gemin...
Unveiling the Dynamic Personalities, Key Dates, and Horoscope Insights: Gemin...Unveiling the Dynamic Personalities, Key Dates, and Horoscope Insights: Gemin...
Unveiling the Dynamic Personalities, Key Dates, and Horoscope Insights: Gemin...
 
2022 Vintage Roman Numerals Men Rings
2022 Vintage Roman  Numerals  Men  Rings2022 Vintage Roman  Numerals  Men  Rings
2022 Vintage Roman Numerals Men Rings
 
Lundin Gold Corporate Presentation - June 2024
Lundin Gold Corporate Presentation - June 2024Lundin Gold Corporate Presentation - June 2024
Lundin Gold Corporate Presentation - June 2024
 
Understanding User Needs and Satisfying Them
Understanding User Needs and Satisfying ThemUnderstanding User Needs and Satisfying Them
Understanding User Needs and Satisfying Them
 
Creative Web Design Company in Singapore
Creative Web Design Company in SingaporeCreative Web Design Company in Singapore
Creative Web Design Company in Singapore
 
Mastering B2B Payments Webinar from BlueSnap
Mastering B2B Payments Webinar from BlueSnapMastering B2B Payments Webinar from BlueSnap
Mastering B2B Payments Webinar from BlueSnap
 
Innovation Management Frameworks: Your Guide to Creativity & Innovation
Innovation Management Frameworks: Your Guide to Creativity & InnovationInnovation Management Frameworks: Your Guide to Creativity & Innovation
Innovation Management Frameworks: Your Guide to Creativity & Innovation
 
amptalk_RecruitingDeck_english_2024.06.05
amptalk_RecruitingDeck_english_2024.06.05amptalk_RecruitingDeck_english_2024.06.05
amptalk_RecruitingDeck_english_2024.06.05
 
-- June 2024 is National Volunteer Month --
-- June 2024 is National Volunteer Month ---- June 2024 is National Volunteer Month --
-- June 2024 is National Volunteer Month --
 
Best practices for project execution and delivery
Best practices for project execution and deliveryBest practices for project execution and delivery
Best practices for project execution and delivery
 
Zodiac Signs and Food Preferences_ What Your Sign Says About Your Taste
Zodiac Signs and Food Preferences_ What Your Sign Says About Your TasteZodiac Signs and Food Preferences_ What Your Sign Says About Your Taste
Zodiac Signs and Food Preferences_ What Your Sign Says About Your Taste
 
Part 2 Deep Dive: Navigating the 2024 Slowdown
Part 2 Deep Dive: Navigating the 2024 SlowdownPart 2 Deep Dive: Navigating the 2024 Slowdown
Part 2 Deep Dive: Navigating the 2024 Slowdown
 
Dpboss Matka Guessing Satta Matta Matka Kalyan Chart Satta Matka
Dpboss Matka Guessing Satta Matta Matka Kalyan Chart Satta MatkaDpboss Matka Guessing Satta Matta Matka Kalyan Chart Satta Matka
Dpboss Matka Guessing Satta Matta Matka Kalyan Chart Satta Matka
 
The Heart of Leadership_ How Emotional Intelligence Drives Business Success B...
The Heart of Leadership_ How Emotional Intelligence Drives Business Success B...The Heart of Leadership_ How Emotional Intelligence Drives Business Success B...
The Heart of Leadership_ How Emotional Intelligence Drives Business Success B...
 
Income Tax exemption for Start up : Section 80 IAC
Income Tax  exemption for Start up : Section 80 IACIncome Tax  exemption for Start up : Section 80 IAC
Income Tax exemption for Start up : Section 80 IAC
 
Easily Verify Compliance and Security with Binance KYC
Easily Verify Compliance and Security with Binance KYCEasily Verify Compliance and Security with Binance KYC
Easily Verify Compliance and Security with Binance KYC
 
3 Simple Steps To Buy Verified Payoneer Account In 2024
3 Simple Steps To Buy Verified Payoneer Account In 20243 Simple Steps To Buy Verified Payoneer Account In 2024
3 Simple Steps To Buy Verified Payoneer Account In 2024
 
The Genesis of BriansClub.cm Famous Dark WEb Platform
The Genesis of BriansClub.cm Famous Dark WEb PlatformThe Genesis of BriansClub.cm Famous Dark WEb Platform
The Genesis of BriansClub.cm Famous Dark WEb Platform
 
Satta Matka Dpboss Matka Guessing Kalyan Chart Indian Matka Kalyan panel Chart
Satta Matka Dpboss Matka Guessing Kalyan Chart Indian Matka Kalyan panel ChartSatta Matka Dpboss Matka Guessing Kalyan Chart Indian Matka Kalyan panel Chart
Satta Matka Dpboss Matka Guessing Kalyan Chart Indian Matka Kalyan panel Chart
 

Making Performance Work (BetaCodex10)

  • 1. MAKING PERFORMANCE WORKWhy performance systems have to change, and how you should approach this: From fixed to relative performance contracts, and towards simple, ethical and empowering ways of dealing with value creation Make it real! BetaCodex Network Associates Niels Pflaeging & Gebhard Borck & Andreas Zeuch White paper Jan 2009 – Revised and extended Dec 2011 and Feb 2013
  • 2. What is the problem with Performance Management as we know it? Almost everything. This paper explores why most Performance Systems are broken, and how to reinvent them.
  • 3. Traditional management processes keep teams from strategic thinking, and motivate counterproductive or unethical behavior Financial problems •  Process takes too long •  Plans become obsolete quickly •  Plans are of little or no use Behavioral problems Strategic problems 0 100 1984 1986 1988 1990 1992 1994 1996 1998 2000 Source: Chem Systems Profitability in petrochemical industry in Europe 300 400 500 600 200 Targets and strategic guidelines •  Target negotiation •  Definition of incentives •  Activity planning •  Resource allocation •  Coordination of plans •  Approval Performance control (plan-actual) Budget Bonus (vs. targets) Vision ... Fixed performance contacts and “keep on track” Source: BBRT
  • 4. 4 Management control cycle Budget Strategy Strategic learning cycle Annual plan Control Management processes in command and control organizations are “straight jackets” Fixed Performance Contract “Fixed” performance contract •  Period [Fixed] •  Targets [Fixed] •  Compensation [Fixed] •  Plan [Fixed] •  Resources [Fixed] •  Coordination [Fixed] •  Control [Fixed] •  Agreed through [Negotiation] •  Signed by: [Manager/Director] Source: BBRT Tayloristic management works like this: As centralistic-burocratic hierarchies, held together through a regime of fixed performance contracts!
  • 5. Current practices are misaligned with the Critical Success Factors of today's competitive market places Six examples of misalignment !  Annual planning process retards it !  Centralized bureaucracy stifles it !  ‘Spend it or lose it’ mentality fights it !  Short term targets prevent it !  Extrinsic ‘motivators’ undermine it !  Dysfunctional, even unethical behaviour conflicts with it Six “Critical Success Factors” •  Fast response •  Innovation •  Operational excellence •  Customer intimacy •  Best team •  Ethical behaviour • Value creation • Inferior financial results When pressure is applied, misalignment gets worse!
  • 6. Our profoundly flawed approach to dealing with present performance, and the future About futurizing, planning, forecasting and strategy
  • 7. Can you read the future, from the bottom of a cup of coffee? Or do you have a crystal ball that lets you to look into the future? Can you read the cards and see what will happen next year? Well, if none of this actually works, and if we accept that it´s impossible to predict the future, then why do we still spend massive energy and time on formal techniques that try to achieve just that for businesses?
  • 9. A small elite governing the powerless masses. An economic system held together by tight planning, and control. Mistrust in entrepreneurial initiative. Those were key features of the soviet union. Now guess where this kind of governance remains in place today: It is the worlds corporations and small to large- size firms. It is just that we call the practice of “management”.
  • 10. Organizations need a trust-based form of “future-directed thinking”, not planning-based command and control The secret of success is not to foresee the future. But to build an organization that is able to prosper in any of the unforeseeable futures. Michael Hammer
  • 11. We have come to believe that the source of great performance is good planning. But planning actually never (ever!) is the source of performance. Preparation is. While planning means fiddling with the future (in your head), preparation means doing the real work, by becoming fit for performance. It enables individuals and teams to achieve high performance. Just like in a Racing Team. The situation pictured here is a fine example of a case where high performance is produced, and in fact required.
  • 12. If you think about it, a Formula 1 team does not rely on intense planning at all. But on intense, and highly disciplined preparation. Things that teams like this indulge in are: • All-team mastery: Every team member has to be a master. No exception. This enables the team to sense and respond. To improvise. To be intuitive. High-performance teams often have a no “baby-sitting” culture, internally. • Trying. Trying. More trying. You cannot run enough test races. Science calls this “deliberate practice” This is more than just practicing. In fact, science also shows that “talent” is completely overrated. • Intense and open communication flow. Everyone is always up to date. • Rituals for group cohesion and a culture aimed at winning together, not individually. These characteristics are typically largely absent from larger organizations. Ask yourself why.
  • 13. “I will prepare myself and my time must come.” Abraham Lincoln, lawyer, statesman A wiser approach than planning
  • 14. Traditional model “Alpha”: fixed performance contracts, negotiated in advance New model “Beta”: :relative performance contracts, assessed with hindsight) Applying the BetaCodex means: From fixed to adaptive management processes strategy control Fixed performance contracts Dynamic coordination Relative performance contracts •  Dynamic, continuous processes •  Relative targets/compensation •  Self-control, transparency and peer pressure •  Fixed, annual processes •  Fixed targets and incentives •  Centralized and bureaucratic control Changing processes
  • 15. The underlying issue About human nature, motivation, and the frequently misunderstood perils of contemporary HR practices
  • 16. But there is a further challenge. Which is why most theories about leadership, as well as most advice from consultants, are flawed... One cannot talk sensibly about leadership, or people management, nor design decent management processes, unless we clarify beforehand our beliefs with regards to what people in organizations are like. We have to arrive at a shared understanding of human nature and of the consequences of that for our organizations. Niels Pflaeging, Leading with Flexible Targets
  • 17. vs. Theory Y Douglas McGregor Theory X Most performance practices are deeply flawed...
  • 18. “Theory X” “Theory Y” People need to work and want to take an inte- rest in it. Under right conditions, they can enjoy it. People will direct themselves towards a target that they accept. People will seek and accept responsibility, under the right conditions. Under the right conditions, people are moti- vated by the desire to realize their own potential. Creativity and ingenuity are widely distributed and grossly underused. People dislike work, find it boring, and will avoid it if they can. People must be forced or bribed to make the right effort. People would rather be directed than accept responsibility, which they avoid. People are motivated mainly by money and fears about their job security. Most people have little creativity - except when it comes to getting round rules. Based on Douglas McGregor, ‘The Human Side of Enterprise’, 1960 The industrial age management model not only fails because markets have changed. It is also misaligned with human nature Attitude Direction Responsibility Creativity Motivation
  • 19. Do you believe in Theory Y? Firmly? Good. Because we are sure then you would never, ever practice (or support, or tolerate) HR processes and tools that treat people like children, or animals, or worse. Right? Such as performance appraisals, individual target setting, incentive compensation, meritocracy, or control of work-hours…
  • 20. Question: How often do the systems, especially the HR systems, get in the way of change, transformation, vision and strategic thinking? Answer: Far too often. History often leaves HR people in highly bureaucratic personnel functions that discourage leadership and make altering human resource practices a big challenge. Source: based upon John Kotter, Leading Change, p, 110-111
  • 21. Do your HR systems make it in people's best interest to implement your new vision? What is meant by HR systems? "  Performance appraisal "  Compensation "  Hiring and Promotions "  Succession planning "  ... Most often, examination of a firm's human resource systems reveal: "  Performance evaluation processes have virtually nothing to do with customers or strategy – yet that is typically at the core of a new vision or management model "  Compensation decisions are based much more on not making mistakes than on creating the right and useful change "  Promotion decisions are made in a highly subjective way and seem to have at best a limited relationship to the change effort "  Recruiting and hiring systems are a decade old and only marginally support the transformation Source: J. Kotter, Leading Change, HBSP, p, 110-111
  • 22. Performance & Pay About bonuses, incentives, and pay-for-performance schemes – and why they cannot work. Also in this chapter: Practical recommendations for how to create better pay systems
  • 23. Let's start with compensation then. First of all, let's be clear. Carrots don't work. They might beat the intellect of donkeys. But they certainly don't trick human beings, who all have “Theory Y” wiring inside them. Incentives simply don't have a positive influence on organizational performance. Period. So why do so many of us still apply in the carrot-and-stick method with people?
  • 24. Real-world stories on the effects of performance management The case of Marie Taylor This is what happened: Marie Taylor, a sales person from our organization, generated income that goes against her company´s principle “Always act to the benefit of our customers“. The decision: Marie Taylor was transferred to the internal sales support department. All her bonuses rights were immediately cancelled. The backdrop: It is true – all sales people in the firm were obliged to act in the interest of their customers. And Marie did not act accordingly. But it is also true that 40% of Marie Taylor´s salary depended on the amount of net sales she generated.
  • 25. Real-world stories on the effects of performance management The case of Frank Miller This is what happened: Frank Miller, a consultant, overcharged during his work with clients, which means he systematically inflated the amount of hours worked charged to his customers. The decision: Frank Miller was fired and left the company immediately. The backdrop: It is true: Frank Miller actually acted against the law by charging for more than he had really worked for at his clients. But it is also true that 25% of Frank Miller´s income depended on the hours charged to clients…
  • 26. An example: “motivation”, or “threat”? What compensation systems really do... 100% Base salary System with no variable compensation 100%: Total compensation expected by employee. 70% Base salary 30% Variable compensation System with variable compensation (bonus, incentive, etc.) Is this an “energizing promise”, or is it just a pitiful threat? “We have a conservative pay philosophy. Your base salary equals your total compensation, which is USD 100.000,00.“ “We have an aggressive pay philosophy: 30% of your total compensation will be paid in form of a bonus. The total is USD 100.000,00, by the way.“
  • 27. I am arguing against….. (1)  attributing more importance to money than it actually has, (2)  pushing money into people's faces and making it more salient than it needs to be, and (3)  confusing compensation with reward (the latter being unnecessary and counterproductive). The problem isn't with the dollars themselves, but with using dollars to get people to jump through hoops. Social scientist Alfie Kohn says:
  • 28. 1.  Pay people well 2.  Pay people fairly 3.  And then do everything possible to take money off peoples minds! All pay-for-performance plans violate that last precept! And: Pay-for-performance is an outgrowth of behaviorism, which is focused on individual organisms, not systems - and, true to its name, looks only at behaviors, not at reasons and motives and the people who have them. I tell Fortune 500 executives (or at least those foolish enough to ask me) that the best formula for compensation is this: Pay people well, pay them fairly, and then do everything possible to help them forget about money. How should we reward our staff? Not at all! They are not our pets. Pay them well, respect and trust them, free them from disturbance, provide them with all available information and support to perform on the highest possible level.
  • 29. 1 very simple principle: Never use bonuses and incentives. Apply profit sharing and/or shareholding concepts for connectedness.
  • 30. Let´s leave compensation myths behind! We found no systemic pattern linking executive compensation to the process of going from Good to Great. Jim Collins, From Good to Great, 2001 Spending time and energy trying to “motivate” people is a waste of effort... The key is not to de-motivate them. Jim Collins, From Good to Great, 2001 Individual incentive pay, in reality, under- mines performance – of both the individual and the organization. Jeffrey Pfeffer, Six Dangerous Myths about Pay, HBR 1998
  • 31. 1 very simple principle: Always disconnect compensation from targets. Always.
  • 32. Variable area “Ceiling” Bonus hurdle 100%: target 80% of target 120% of target Base salary Performance as % of target realization Salary/ bonus Common practice: “Pay for performance“ compensation profile with fixed performance contract: Creates maniuplation incentive in any situation! Bonus limit Reduction in- centive: Lower result more! Reduction incentive: postpone results to next period Maximization incentive: Anticipate results Actual result #2 Actual result #1 Actual result #3 Performance in relative evaluation Salary/ bonus A better model: Result oriented compensation profile with relative performance contracts: No incentive to manipulation. Linear compensation curve without breaks: variable compensation becomes decoupled from targets Free from incentive to manipulate The problem with “incentives”: How traditional management systematically forces people to cheat Source: Michael Jensen
  • 33. 1 very simple principle: Pay the person. Not the position. Always.
  • 34. Variable compensation: Unbundling fixed, individual pay for performance contracts in favor of relative team improvement BetaCodex principles advocate basing evaluation and compensation on relative improvement contracts with hindsight, rather than fixed performance contracts agreed upon in advance. In formulating a compensation policy, the BetaCodex mindset leads to eight key recommendations: 1.  Use the language and thinking of gain sharing, not incentives. 2.  Align pay with strategic measures, not budgets. 3.  Base compensation on relative measures, not fixed targets. 4.  Measure and reward (if needed) the performance of teams, not individuals. 5.  Align pay with interdependent groups, not parochial interests. 6.  Use clear and transparent measures, not unfathomable numbers. 7.  Make compensation fair and inclusive, not unfair and divisive. 8.  To highlight outstanding contributions, use company values, not the numbers.
  • 35. All employees should earn a share of the financial success: Restrain from the idea of “motivating them“! Organizations can free themselves from conventional forms of “pay for performance”, through simple and more transparent compensation systems. Conclusions:
  • 36. Resource coordination, reinvented A few words about how to employ resources well, without the managing
  • 37. Resources. What most organizations do with them is basically this: Once a year, they define the size of the pie. Then, they invite managers to fight for a piece of the action… Organizational research has shown over and over that this is the fundamental mechanism organizations use… and that it inevitably leads to sub-optimization, to say the least. Happily, there is a far better way to steer resources. Just imagine for a moment that you simply wouldn't define the size of the pie for a fixed period any more. And that you would take important resource decisions together in a team, and always as late as possible! (Yes, you read that right!)
  • 38. Projected period (e.g. 5 quarters) Resources Income as “total (expected) available resources over time“ - forecasted as “limiting factor“ Already approved investments - actively handled as “dynamic portfolio“ Yet uncommited resources – work actively on available “options for a better future“ Operational resources – controlled by Key Performance Indicators (KPIs) – activities are focused on continuous improvement! Employing resources dynamically: A typical way of doing it, as practiced by Sydney Water, Australia Source: Sydney Water
  • 39. Setting direction in an age of uncertainty About targets, the failed promise of MbO, and the illusion of steering
  • 40. True, it is tempting to believe that we can “control”, or “steer” organizations. Looking at the reports, and indicators, and accounting statements, it appears that an intelligent executive might be able to remote- control a company, right? Now, the problem is: That's just a beautiful illusion.
  • 41. Morpheus to Neo: "You take the blue pill and the story ends. You wake in your bed and believe whatever you want to believe.... You take the red pill and you stay in Wonderland and I show you how deep the rabbit-hole goes."
  • 42. The world of command and control management and planning-based steering has a lot to do with the fictitious, machine-generated world in the movie trilogy "The Matrix". Actually, like in that crucial scene in the first movie of the series, traditional management is much like the blue pill the movie's hero Neo is offered, and the BetaCodex is the red pill. Organizations have the choice to either stick with the illusion of control that their “management by numbers” delivers, or to acknowledge that there is a whole world of performance management “beyond planning and control”. One that doesn't deny uncertainty and paradoxes. And that makes far better use of people's talent and potential.
  • 43. The blue pill: Fixed, negotiated targets Most important competitor (28%) Market (25%) Plan (15%) Actual (21%) Target: absolute ROCE in % (here: 15%) [expected market Ø: 13%] Plan Comparison: Plan-Actual Actual Why traditional management with “fixed performance contracts“ regularly fools us: We have lost control a long time ago… •  Interpretation within the plan-actual- comparison: Plan was outperformed by 6 percentage points > positive interpretation •  Better ROCE of the market average and the most important competitor remain unnoticed! The red pill: Relative, self-adjusting targets Target: relative ROCE in % (to market) Most important competitor (28%) Market (25%) Target: „ROCE in % better than market average” Actual (21%) •  Interpretation within actual-actual compa- rison: Performance was 4 percentage points below competition! > negative interpretation •  Absolute assumptions at the moment of planning don't matter. •  Targets always remain updated and relevant! [independent from expected market Ø] Target Actual Comparison: Market-Actual
  • 44. Bank to bank Return on Equity (RoE) 1.  Bank D 31% 2.  Bank J 24% 3.  Bank I 20% 4.  Bank B 18% 5.  Bank E 15% 6.  Bank F 13% 7.  Bank C 12% 8.  Bank H 10% 9.  Bank G 8% 10.  Bank A (2%) Region to region Return on Assets(RoA)etc. 1.  Region A 38% 2.  Region C 27% 3.  Region H 20% 4.  Region B 17% 5.  Region F 15% 6.  Region E 12% 7.  Region J 10% 8.  Region I 7% 9.  Region G 6% 10.  Region D (5%) Branch to branch Cost/income ratio etc. 1.  Branch J 28% 2.  Branch D 32% 3.  Branch E 37% 4.  Branch A 39% 5.  Branch I 41% 6.  Branch F 45% 7.  Branch C 54% 8.  Branch G 65% 9.  Branch H 72% 10.  Branch B 87% Strategic „cascade” Result & value contribution Leads to lowest operational cost! Relative target definition through “league tables“ (rankings) – instead of planned, fixed targets and internal negotiation Relative targets and relative compensation Continuous planning/ control “On demand“ flow of resources/ dynamic coordination Principles
  • 45. Let´s look at performance differently About reporting, metrics, indicators, and measuring performance, without need for planning
  • 46. Does your organization use “traffic light” reporting? Those red, orange and green dots indicating what to pay attention to? Most of these reports are made for managers and executives, because, so the the story goes, those people have short attention spans and “need” the color coding. Now, isn't it fascinating that organizations have such a low opinion of their supposedly “top” people?
  • 47. To evaluate performance in an adaptive and dynamic way, the foundations of performance measurement must shift From: Against plan To: Against time • Prior periods • Progress towards achievement of medium-term (2-3 years) targets From: Internal focus To: External focus • Internal peers • Competitors • Benchmarks/Stretch From: Annual focus To: Trends and “as needed”, always rolling From: Financial measures To: Few key indicators From: Closed systems To: Open information systems for all From: Pure measurement To: Mixed approach of measuring/judging “Indicators only indicate“, there is no “truth” in the numbers – living systems cannot be evaluated by measuring alone! From: Controlling individuals To: Stopping measurement at team level
  • 48. Principles for good metrics: 1 It relates to a stakeholder’s goal 2 It helps improve part of the system 3 Data is collected by those who need it
  • 49. Simple, elegant and relevant: creating reports without actual-plan-variances, fixed targets, or plans Trend with references (A) Maximum Curve with variance KPI (B) Gliding average Time (Actuals) Accouts/KPIs vs. Previous periods last month Same month last year Same month prev.. year Ø last 12 mnths Ø 12 prev. mnths Indicators or Groups of accounts Ranking (League table) ext./intern. Company KPI Competitor A 31% Competitor E 24% Competitor C 20% Us 18% Competitor B 13% Competitor D 12% Competitor G 10% Competitor F 8% Regions KPI Region G 7% Region E 7% Region B 6% Region F 4% Region A 3% Region D 3% Region C 1% Region H 0% Trend with benchmark Us Competitor A Time (Actuals) KPI Snapshot (static) with benchmarks KPI 2 Us Our unit B Our unit A Compe- titor B Compe- titor A KPI 1 Trend with tolerance Tolerance levels Time (Actuals) KPI Us
  • 50. Remember: Metrics can be highly useful. Targets usually are superfluous. Incentives are always abominable.
  • 52. And more. You will set your people free to think and to act like entrepreneurs. You will make far better use of their talents, and finally stop de-motivating them. You will stop fighting against the reality of your marketplace. Consult the BetaCodex Network's other white papers and presentation slides for further content-rich material about the BetaCodex (formerly: the Beyond Budgeting model) and about how to approach transformation. By applying the 12 laws of the BetaCodex (on the next page), you will revolutionize performance management.
  • 53. The 12 laws of the BetaCodex (formerly: Beyond Budgeting) are a full set of design principles for a new organization type Law Beta Alpha §1 Freedom to act Connectedness not Dependency §2 Responsibility Cells not Departments §3 Governance Leadership not Management §4 Performance climate Result culture not Duty fulfillment §5 Success Fit not Maximization §6 Transparency Intelligence flow not Power accumulation §7 Orientation Relative Targets not Top-down prescription §8 Recognition Sharing not Incentives §9 Mental presence Preparedness not Planning §10 Decision-making Consequence not Bureaucracy §11 Resource usage Purpose-driven not Status-oriented §12 Coordination Market dynamics not Commands
  • 55. © BetaCodex Network – All rights reservedWhite paper – The 3 Structures of an Organization 1 Find all BetaCodex Network white papers on www.betacodex.org/papers and on Slideshare. Special   Edi+on   Special   Edi+on   The BetaCodex Network white papers - so far
  • 56. www.organizeforcomplexity.com The “Organize for Complexity” book English - paperback German edition English - ebook Turkish edition with Selcuk Alimdar Portuguese edition
  • 57. betacodex.org Get in touch with us for more information about leading BetaCodex transformation, and ask us for a keynote or a workshop proposal. Make it real! Niels Pflaeging contact@nielspflaeging.com nielspflaeging.com New York, Wiesbaden Valérya Carvalho mvaleriacarv@gmail.com LinkedIn São Paulo Silke Hermann silke.hermann@nsights-group.de insights-group.de Wiesbaden, Berlin, New York Lars Vollmer me@lars-vollmer.com lars-vollmer.com Hannover, Stuttgart