Week 23, 2023—Issue #259
Create Options, Review Quarterly, and Purpose First
Successful organizations do three things: they create value for customers, they empower their people, and they produce above-average returns.
Here are three ideas to help you do the same:
#customervalue
Create options to deliver more value
Pricing on Purpose is a thick tome of a book that provides insights into all things pricing and value creation. Writes author Ron Baker: “[An] effective strategy is to offer various value propositions — in the form of differing options — within the RFP, thereby preventing it from becoming merely a one-shot, take-it-or-leave-it option.” In addition to increasing the chance for conversion, options are also a great way to educate and start conversations. There’s more than one way to skin a cat, as the saying goes, and it pays dividends to discuss their respective “value proposition” up front.
#personalfulfillment
Performance reviews are best done quarterly, at least initially
Christina Wodtke appeared on the BraveUX podcast recently, speaking about performance reviews amongst other things: “I think performance reviews should be done quarterly. I’ve worked at companies that do it and it’s significantly better… There’s less stuff for you to fix. You give smaller amounts of feedback. You give it faster and you can tie the compensation to… positive things and create a stronger link in peoples’ minds.” Shorter feedback loops make a lot of sense, I think. But it might be a mistake to fixate on a specific cadence. Wrote Andy Grove in High Output Management: “You should have one-on-ones frequently (for example, once a week) with a subordinate who is inexperienced in a specific situation and less frequently (perhaps once every few weeks) with an experienced veteran.” With that in mind, you may want to conduct quarterly reviews with new hires and less frequently, if at all, with your veterans.
#organizationaleffectiveness
Purpose should dictate order, not the other way around
Harrison Owen (Episcopal priest and “originator” of Open Space Technology) draws upon Native American tradition in explaining the dangers of putting process before purpose, and I paraphrase:
The Medicine Wheel signifies Leadership, Vision, Community, and Management. Leadership, to the north, opens paths; Vision, to the east, shows the direction; Community, to the south, binds all; and Management, to the west, maintains order. All individuals and organizations have these elements. Balance is necessary, as is creative tension. The Wheel is traditionally followed clockwise: starting with Leadership, then Vision, Community, and finally Management. The reverse order, starting with Management, risks forming an organization without considering people, direction, or purpose — a common error in businesses. The wheel’s optimal sequence suggests that if Leadership, Vision, and Community are well-established, Management will naturally follow.
I’m generally skeptical of “ancient wisdom” and its modern interpretations, but there’s something to this, I think. Too many organizations take the counterclockwise approach, starting with the management of resources only to consider vision and leadership later, if at all. It’s the organizational equivalent of putting the cart before the horse and it undoubtedly makes management all the more difficult. After all, if you don’t know where you’re going and why, how can you know that you’re implementing the right systems and structures?
That’s all for this week.
Until next time: Make it matter.
/Andreas
How can we build better organizations? That’s the question I’ve been trying to answer for the past 10 years. Each week, I share some of what I’ve learned in a weekly newsletter called WorkMatters. Back-issues are published to Medium after three months. Subscription is free. This article was originally published on Friday, June 9, 2023.
