This document discusses the characteristics of high performance organizations and what it takes to achieve high performance. Some key points: - High performance organizations require transforming leaders who are committed to continuous improvement and empowering others. The culture and people in the organization must also be transformed. - High performance is achieved through participative leadership, aligned purpose, shared accountability, effective communication, and a focus on continuous improvement and results. It requires ordinary people to perform extraordinarily. - Achieving high performance is difficult and entails both employee and manager pain as people move outside their comfort zones. Managers must focus on the consequences of performance to drive improvement. - Lastly, the document discusses how managing the antecedents

1. A JOURNEY TO HIGH
PERFORMANCE
Presented by:
Dr. Wm. (Chip) Valutis

2. WHY IS THERE SUCH A DISCONTINUITY
BETWEEN
THE PROMISE OF “IMPROVEMENT” PROGRAMS
AND ACTUAL RESULTS?
The recipe is unlikely to be any better than the cooks --
that is the managers in place
There is no sure way to change the culture of an
organization in fundamental ways except by changing
the people in power -- if the same people remain in
power and they do not change in perceivably significant
ways, not much else is going to change
Transforming an organization requires (in most cases)
Transforming its leaders -- what isn’t right there will inevitably
spoil the broth

3. A HIGH PERFORMANCE
ORGANIZATION
Is an organization that is better at everything it
does than its competitors, and is diligently and
incessantly at work improving everything it does
at a rate that significantly outpaces its competitors
Has a purpose that is used to focus the energies
and consciences of all of its members
Is one that simultaneously and continuously
maximizes the best self interests of all of its
stakeholders

4. HIGH PERFORMANCE ORGANIZATION
(CONT’D)
Is an organization that out performs all others (by any
measure) not “because of ” what propels it, but “in
spite of” any and all obstacles that impede its path
Is one that makes it possible -- and necessary -- for
ordinary people to perform in extraordinary fashion
Is one that has transformed its people into “owners”
of the life and destiny of the organization
Is a healthy organization that is irrevocably
committed to being great -- whatever it takes

5. STATED DIFFERENTLY,
A HIGH PERFORMANCE ORGANIZATION IS...
Ordinary people producing
extraordinary results,
With more fun and less drama,
Using evolutionary learning
frameworks,
To create a future inconsistent with
mediocrity

6. CHARACTERISTICS OF HIGH
PERFORMANCE ORGANIZATIONS
• Participative leadership --
empowering and serving others
• Aligned purpose
• Shared fate -- all are
accountable
• High communication -- trust,
openness, honesty
• Future focused -- seek
(r)evolutionary improvements
www.impactbnd.com

7. CHARACTERISTICS OF HIGH
PERFORMANCE ORGANIZATIONS (CONT’D)
• Results focused
• Creative -- fully using
individual talents
• Rapid response -- sense
of urgency for
opportunity
• Use high performance
teams as the
implementation tool of
choice
www.imperativesolves.com

8. WHAT IT TAKES - A MACRO
VIEW
A fanatical commitment by every manager at
every level at all times (you can predict shortfall
by how much less than total commitment there
is throughout the managerial cadre of the
organization)
A deep understanding of the fact that high
performance is not a goal or achievement, but
a way of life (the concept of virtuosity)
An unbounded willingness to “pay the price”

9. WHAT IT TAKES - A MACRO VIEW (CONT’D)
A realization that what drives performance is necessity
A realistic appreciation of the fact that the way a high
performance organization works is so different from
the way a conventional organization works as to
constitute a different paradigm
A recognition that it is only when people manage
themselves and their own work, and have some
control over the work systems in which they perform,
that high performance even becomes possible

10. THE CONCEPT OF
VIRTUOSITY
“The lifelong work process of
striving to be the best you can be”
blog.djarumbeasiswaplus.org

11. THE CONCEPT OF NECESSITY
It is not based on rewards and punishment - it derives from
one’s certainty about consequences (if a person knows what the
consequences of his or her performance will be, even though
they have never been seen, there is necessity)
Most people will only instrument themselves to make difficult
change if they need to
The most powerful, potent necessity is habit

12. WHAT HAS TO BE
ACCOMPLISHED
Making it necessary for each of
your subordinates to be forever
on the path of becoming
virtuosos at what they do in the
organization
Making it necessary for each of
your subordinates to think and
act as leaders whenever it is
advantageous to the
organization to do so
http://www.thechangeblog.com/life-path/

13. WHAT HAS TO BE
ACCOMPLISHED (CONT’D)
Making it necessary for
each of your subordinates
to perform as the Chief
Steward of the
organization’s mission
Making it necessary for all
of your subordinates to be
ready, willing and able to
take over your role and to
perform it better than you
do
www.activegarage.com

14. THE CONSEQUENCES
ARE...
That, these accomplished, the organization will turn
upside-down (so that it can function “bottom-up”) as a
result of the fact that its center of gravity has now shifted
from the top down
www.orientplanet.com

15. WHAT IT TAKES - THE
LEADER’S ROLE
A different, sometimes unconventional, way of
thinking about the same old things (to lead people
from where they are to where they ought to be
requires a mind set that sees and interprets
everything from there, not from here)
A level of perversity of thought and action, where
required, that is at least as perverse as the world is
A great and worthy purpose that captures the hearts
and the imaginations of those who would follow

16. WHAT IT TAKES - THE LEADER’S ROLE
(CONT’D)
A strategy perceived as adequate to the purpose and the
perceived ability of having what it takes, against all
obstacles, to lead the way through to that purpose
Disciples who are as committed to the cause of the
organization as the leaders are
An ability and willingness to tell a compelling story, not
of what is, but of what will be
A willingness to re-launch the mission, every day if
necessary, in order to dislodge the inertial forces of the
old culture

17. CORE STRATEGIES FOR HIGH
PERFORMANCE
The strategic distribution of the ownership of
problems
Making possible what’s necessary and making
necessary what’s possible
Accomplishments, not activities
Choice
The learning mode
Bringing life back into work

18. MAKING NECESSARY WHAT’S
POSSIBLE
Passionate belief in a organization comes from:
The vision of the CEO and the management team (a
compelling purpose/an ideal that people have passion for)
Commitment of the CEO and the management team (you
cannot lead from the rear)
A willingness to endure the pain and struggles of pursuing
the vision (actions must be consistent with words/real
passion and loyalty are built over time)
Visible culture and values (there can be no belief without
trust)

19. MAKING NECESSARY WHAT’S
POSSIBLE (CONT’D)
Most organizations attempt to drive change through
information (memos, slogans, posters, banners, speeches,
presentations, etc)
While information is seductive (easy to produce/easy to
handle), it is largely ineffective at driving significant change
because...
www.m
ynotetakingnerd.com
brillianttraining.org

20. MAKING NECESSARY WHAT’S
POSSIBLE (CONT’D)
...Results come from behavior, not information
Therefore… to significantly change results, you must
change behavior
Since people behave according to what they believe
in, high performance requires that you align their
beliefs with the purpose of the organization --
People that are passionate in their beliefs are capable
of extraordinary performance
The linkage is in creating belief in what is possible

21. MAKING POSSIBLE WHAT’S
NECESSARY
Effective communication and information (clear and compelling
purpose/clear roles and responsibilities /specific performance
goals/
clear success measures)
Effective resource allocation and prioritization (time, money,
facilities, equipment, people, etc.)
Effective operating systems (human resource, data processing,
financial, tracking, etc.)
A learning organization (training & development)
The elimination of management driven organizational “politics”

22. OBSTACLES AND BARRIERS
The conventional “managerial” mindset (it’s
paradoxical that most of the key ingredients of a
“successful” manager’s mindset will work against the
making of a high performance organization)
Habits, which, in organizations, become “routines” or
the “way we do things around here”
Under-empowerment
Dumb systems
The larger, “pop” culture

23. MOVING TOWARD HIGH
PERFORMANCE ENTAILS...
Employee pain
Manager pain
www.picstopin.com

24. EMPLOYEE PAIN
Leaps for all to take. Can they make it?
They’re responsible
We’re responsible
Not my fault I am accountable
Not my job Just do it
We always did it that way Do the right thing
Their problem We sink together

25. EMPLOYEE PAIN (CONT’D)
Procedures Self-initiative
Status quo Continuous improvement
Risk avoidance Risk taking
React Pro-act
Certainty Ambiguity

26. MANAGER PAIN
The toughest leap of all
Boss Coach
Manager Leader
Power Make powerful
Control Commitment
Alone Shared fate

27. MANAGER PAIN (CONT’D)
Positional worth Results contribution
Chain of command Get the job done
Demand hours Demand results
Decision maker Facilitator
Maintain system Destroy mediocrity

28. BELIEFS ABOUT
PERFORMANCE
People can, will and desire to improve their performance
Managers have a greater impact on employees than they
think they do
Long term performance improvement requires
management of the consequences of performance
www.keison.co.uk

29. ABC’S OF WHY PEOPLE DO WHAT
THEY DO
A B C
Antecedents Behavior Consequences
what happens before specific performance what happens after
gets performance started observable maintains performance
measurable
examples: examples:
education recognition
training feedback
equipment promotions
raises
positive/negative/neutral

30. THE POWER OF MANAGING CONSEQUENCES --
THE STORY OF SISTER MARY AND NATHAN
Sister Mary stood before her very young parochial-school
class. She held up a shiny silver dollar and said, “ I’ll give this
dollar to the first boy or girl who can name the greatest man
who ever lived.”
“Was it Michelangelo?” asked a
little Italian boy.
“No,” replied Sister Mary. “Michelangelo was a brilliant artist
but he wasn’t the greatest man who ever lived.”
“Was it Aristotle?” asked a little Greek girl.
“No,” Sister Mary answered. “Aristotle was a great thinker
and the father of logic, but he wasn’t the greatest man who
ever lived.”

31. THE STORY OF SISTER MARY AND
NATHAN (CONT’D)
Finally, after several more incorrect answers, a little Jewish
boy raised his hand and said, “I know who it was, Sister. It
was Jesus Christ.”
“That’s right,” she replied and promptly gave him the dollar.
Being somewhat surprised at the Jewish boy’s answer, she
approached him on the playground at recess and asked,
“Nathan, do you really believe Jesus Christ was the greatest
man who ever lived?”
“Of course not Sister,” Nathan replied. “Everyone knows Moses was the
greatest. But business is business.”

32. A STEP BY STEP APPROACH TO
IMPROVING PRODUCTIVITY
Identify the desired results
Identify the behavior needed
Establish performance
measures
Establish the reward structure
Measure and record
Feedback, recognition and
celebration
www.businessplan123.de

33. IDENTIFY THE DESIRED RESULTS
“50% of an organization’s activities produce less than 5% of its value
added”
- Kepner Trego study
“Too much attention has been focused on eliminating unnecessary
jobs and too little on cutting unnecessary work” - Robert Tomasko
“Nothing is less productive than to make more efficient what should
not be done at all”
- Peter Drucker
-- Eliminate work that doesn’t add to the bottom line
-- Focus people and resources on areas that do

34. IDENTIFY THE BEHAVIOR NEEDED
• Solid solutions rather than quick fixes
• Measured risk taking rather than risk avoidance
• Applied creativity rather than mindless conformity
• Decisive action rather than paralysis by analysis
• Smart work rather than busy work
• Simplification rather than needless complication
• Quality work rather than fast work
• Team player rather than confrontational individualism
• Quiet effectiveness rather than “squeaking wheels”
• Loyalty

35. SMART RISK TAKING
Teach people that intelligent errors are part of the cost of progress
Celebrate both successes and failures
Don’t take risks for others or bail them out if things go sour
Encourage smart risks, not foolish chances
- Have a goal; a risk without a clear purpose is dumb
- Consider the worst possible outcome and be sure you can live with it
- Weigh the potential problems and losses against the potential gains; a smart
risk is worth it
- Once you decide to take a risk, do your best and don’t look back
- Limit your losses; if things don’t go well, get out before you lose too much

36. DECISIVE ACTION
Make decision making a habit
Don’t tolerate reverse decision making
Create a detailed vision of the results needed
Set a deadline for making a decision
Obtain the best information you can within the time limits
Brainstorm as many different alternatives as you can
Think though the options
Make prudent use of intuition
Take action

37. PINPOINT SUCCESS
ACTIVITIES
•What do the best performers do that makes them
successful? (look at our organization, our competitors, our
industry, and the outside world)
•Most people are not conscious of what makes them
successful

38. ESTABLISH PERFORMANCE
MEASURES
You’ve heard the acronym “SMART” objectives
Specific
Measurable
Achievable
Real importance
Time bounded www.shellypalmer.com

39. CHOOSING PERFORMANCE MEASURES
Also consider:
The linkage of the measure to vision and strategy
The ability of the individual to understand the
measure (both what it is and why it is important)
The ability of the individual to influence the measure
The organization’s and the individual’s ability to track
the measure (timely availability of data)
The input of the individual in establishing the measure

40. ESTABLISH THE
REWARD STRUCTURE
Reward the
behavior you
want
Decide on the
proper
rewards
www.lingholic.com

41. REWARD THE BEHAVIOR YOU WANT
The story of the fisherman and the snake:
A weekend fisherman looked over the side of his boat and saw a
snake with a frog in its mouth. Feeling sorry for the frog, he
reached down, gently removed the frog from the snake’s mouth
and let the frog go free. But now he felt sorry for the the hungry
snake. Having no food, he took out a flask of bourbon and
poured a few drops into the snake’s mouth. The snake swam
away happy, the frog was happy and the man was happy for
having performed such good deeds. He thought all was well until
a few minutes passed and he heard something knock against the
side of his boat. He looked down and with stunned disbelief he
saw that the snake was back -- with two frogs!

42. DECIDE ON PROPER
REWARDS
✤Recognition
✤Favorite work
✤Personal growth
and development
✤Advancement
Key: vary rewards; use events; do lots of things; money
spent does not equal value received
✤Freedom
✤Money
✤Time Off
✤Prizes
✤Fun

43. THE INDUSTRIAL
PSYCHOLOGISTS
Maslow’s Hierarchy of Needs
McGregor’s Theory X & Theory Y
Herzberg’s Motivation-Hygiene Theory

44. MASLOW’S HIERARCHY OF NEEDS
People continually seek the satisfaction of certain needs:
Physiological needs (basic survival needs - food, water,
shelter, sleep, etc.)
Safety needs
Need for belongingness (desire for social interaction)
Need for esteem (self-worth, competence and mastery)
(appreciation, recognition and respect)
Need for self-actualization (fulfillment of their inner selves,
full potential)

45. MASLOW’S
HIERARCHY OF NEEDS
Until lower level needs are satisfied,
higher level needs cannot be activated
Once a lower level need has been
basically satisfied, it no longer serves
to motivate
Ultimate productivity improvement
flows from enabling employees to
achieve self-esteem and self-
actualization
www.exec-comms.com

46. MCGREGOR’S THEORY X
AND THEORY Y
Managers’ styles of leading and directing people are very
closely related to their belief systems
Most managers subscribe to one or two diametrically opposed
theoretical constructs
betacodex.org

47. MCGREGOR’S THEORY X AND
THEORY Y (CONT’D)
Theory X Assumptions
Employees basically inherently dislike work
Employees prefer to be directed by supervisors
Employees wish to avoid responsibility
Employees are relatively unambitious
Employees are primarily motivated by the need
for security

48. MCGREGOR’S THEORY X AND THEORY Y
(CONT’D)
Theory Y assumptions
The expenditure of physical and mental effort in work is as
natural as play or rest. Depending upon a variety of
conditions, work can either be a source of satisfaction and
will accordingly be willingly performed, or it can be a source
of punishment and will, if possible, be avoided.
External control and the threat of punishment are not
management’s only means of stimulating employee effort
toward achieving organizational objectives. Employees will
exercise self-direction and self-control to reach objectives to
which they are personally committed.

49. MCGREGOR’S THEORY X AND THEORY Y
(CONT’D)
Commitment to objectives can be achieved through the
satisfaction of employee’s ego and self-actualization needs.
The average person can learn to not only accept but to
actively seek responsibility.
The capacity to demonstrate imagination, ingenuity and
creativity and apply them to solving organizational problems
is widely, not narrowly, distributed in the work population.
Under the conditions of modern industrial life, the
intellectual potential of the average employee is only
partially used.

50. HERZBERG’S MOTIVATION -
HYGIENE THEORY
Two sets of factors are operative in any job situation -
satisfiers and dissatisfiers (these are completely different
factors and distinguish non-satisfaction from
dissatisfaction)
Satisfiers are motivators and generally relate to job content
Dissatisfiers are hygiene factors and generally relate to the
job environment
True motivation comes from job enrichment which, in
turn, comes from vertical (not horizontal) job loading

51. PRINCIPLES OF VERTICAL JOB
LOADING
Principle
Removing some controls while
retaining accountability
Increasing the accountability
of individuals for own work
Giving a person a complete
natural unit of work
(module, division, area, etc.)
Motivators Involved
Responsibility and personal
achievement
Responsibility and
recognition
Responsibility , recognition
and achievement

52. PRINCIPLES OF VERTICAL JOB LOADING
(CONT’D)
Principle
Granting additional authority to an
employee in his or her activity; job
freedom
Making periodic reports directly available
to the employee rather than to the
supervisor
Introducing new and more difficult tasks
not previously handled
Assigning individuals specific or
specialized tasks, enabling them to
become experts
Motivators Involved
Responsibility , recognition
and achievement
Internal recognition
Growth and learning
Responsibility, growth and
advancement

53. MEASURE AND RECORD
Set up a tracking system
Establish baseline where possible
Frequently is important
Make it visible -- use graphs
Why graphs?
Easy to read
Easy to understand
Highly visible
Shows trends clearly
Results in less
defensiveness

54. EFFECTIVE FEEDBACK
Immediate
Specific
Descriptive rather than judgmental (be a video camera not an
interpreter or evaluator)
Avoid giving too much at one time
Avoid giving positive and negative feedback at the same time
(4 to 1 rule/“emotional checkbook” concept)
Consider location for giving feedback
Provide feedback that is within the influence of the individual

55. OTHER THOUGHTS
ON FEEDBACK
❖In the absence of positive feedback, the assumption is
predominantly negative
❖Before giving negative feedback, a good question to ask is
“Would this happen again if I say or do nothing?” If it is not
likely to happen again, don’t bring focus to it.
❖Withholding feedback is “cruel and unusual punishment”

56. “I” MESSAGE
FEEDBACK FORMAT
When you…
…I feel…
…and the results or
consequences are…
What would be
more helpful to me
is…
(specific, descriptive
behavior)
(real feelings, not thoughts)
(what actually happens due to
the behavior)
(specific behavioral example)
Name:___________________

57. PERFORMANCE REVIEW
ANALYSIS
• Specifically, what was accomplished?
• Were the real problems/issues brought out? What were
they?
• Was there a good manager - employee relationship?
Was there openness, leveling and mutual respect?
How well did we communicate?
Was I perceived as a helper, or as a punitive judge?

58. PERFORMANCE REVIEW ANALYSIS
(CONT’D)
Was there a mutual job understanding?
Was there a joint setting of performance objectives?
Was there a definite joint commitment for performance
improvement?
Was there a meaningful discussion of employee career
interests and possible opportunities (current and future)?
Were personal development goals and required training
discussed and agreed to?
How did each of us feel about the meeting? Did we discuss it?

59. WHO DO YOU SPEND YOUR TIME WITH?
High performance companies focus resources (both time and
money) on high performers
Do you spend it effectively?
Consider use of formal 1 on 1 coaching sessions
Spend 80% of your time listening
Consider use of advise/consult/agree format to foster
responsibility while maintaining control

60. EFFECTIVE ONE TO ONE
COACHING SESSIONS
Planned in advance to mutually convenient schedules
No interruptions
Openness and trust is essential
Both parties participate with enthusiasm and energy
Subordinate comes prepared with specific (and important)
business issues to discuss

61. EFFECTIVE ONE TO ONE
COACHING SESSIONS (CONT’D)
Manager primarily listens, but asks good, open-ended
questions; probes for critical opportunities and problems;
and provides feedback
Action plans (or revisions) are developed by the subordinate
and are mutually agreed to (use written forms)
Close with a review of the discussion and how it can (will)
be improved

62. EFFECTIVE
RECOGNITION
Make it planned and spontaneous
Planning is essential or it won’t happen
regularly
Spontaneity enhances effect and value (people
like surprises)
nextiva.com

63. EFFECTIVE RECOGNITION (CONT’D)
Vary forms of recognition
Money spent does not equal value received
For most people, monetary recognition has short-
term value and establishes future expectations
which, when not fulfilled, are counter-productive to
the recognition intent
Symbolic recognition satisfies the higher human
need for “mental wages” and for most people has
longer lasting value

64. CELEBRATE
Often
Small victories or
achievements as well as
major successes
Creativity involved is more
important than money spent
Encourage broad
involvement
www.examiner.com

65. Valutis Consulting is a full service management consultant
firm. Our approach is to investigate and understand
organizational issues, customize realistic solutions, and design
practical strategies to move clients toward their specific
business and personal goals. Our mission is to help our clients
unlock the potential of their organization and its people.
Please feel free to contact us with any questions or to schedule
an appointment to discuss your organization’s needs and how
we can help.
(716)634-2553
chip@valutisconsulting.com
www.valutisconsulting.com - website
www.the4thquarterman.com - blog