You Get What You Measure

"Results-Driven, Solid ROI, Quantifiable Outcomes"

When these terms are used to describe a leader, the reaction is likely to be very positive. These phrases conjure up images of a successful "producer,” someone who accomplishes goals and gets things done. The individual may contribute greatly to the bottom line of the organization. Who wouldn't want such a person as a company leader? The reality is that many organizations don't - and most shouldn't.

This is bold statement is intended to evoke strong immediate response.  But step back from the surface of the description above and look a bit deeper.  The discussion concerns leaders and a few key qualities are missing from that superstar profile. Absent from the descriptive terms are the soft qualities of a leader, attributes that are more difficult to effectively measure. They include:

1. Compassion: A great leader cares about people. While an overuse of compassion hampers a leader's ability to manage difficult developmental conversations, some degree of caring has to manifest itself in the leader's daily interactions with staff, peers, clients and superiors.  The antonym of compassion is arrogance. That attribute that has toppled many otherwise "successful" individuals.
2. Sense of Team: The workplace is increasingly complex. Matrix work relationships are common in many organizations. Most organizational projects require support from cross-functional experts. Those who cannot operate comfortably and effectively in a team environment will struggle to succeed as leaders.
3. Trust: The single most important attribute that any leader must possess is the ability to win - and retain - the trust of direct reports and others. Trust is the capital that sustains a leader when the inevitable difficult times emerge. Employees will listen, accept and follow a leader through the darkest times if that leader has consistently demonstrated that he or she can be trusted to do what's right for the group as a whole.

The human resources profession is placing increasingly stronger emphasis on human capital metrics; that is, measuring the effectiveness of employee-focused strategies. In many cases, these metrics are also being applied to the evaluation of individual leader effectiveness. Organizations must guard against reliance on a preponderance of bottom-line focused metrics and ensure that balance exists. It is equally, if not more important to gauge the leader's performance on true human-focused competencies such as those listed above.

If the concept seems difficult to accept, consider two recent examples of results-oriented rainmakers who have stirred significant controversy and created chaos in human relationships within their organizations.  Lead actor Charlie Sheen is credited with a major role in the success of the television series, Two and a Half Men. However, his incredibly poor human relations skills caused his employer to terminate his contract. Warner Brothers made the difficult but commendable decision to put people ahead of profits.  So, too did Time, Inc., with the abrupt termination of CEO Jack Griffin after just six months on the job. Griffin's cost-cutting and organizational effectiveness measures may have had potential to contribute significantly to the company's bottom line, but at significant expense to its people.

Metrics and pure-dollar ROI are important, but human outcomes cannot always be fully quantified by statistical measures. Organizations will be well served to ensure that any leader evaluation system includes an effective consideration of the human side of leadership. You will get what you measure.

Leaders are the Keepers of the Culture

It is impossible to understate the importance of leaders to sustaining culture. Leaders are the face of the organization to numerous internal and external constituencies. The larger the organization, the more critical the role of its leaders.

Author and speaker Peg Neuhauser's first and now classic book draws parallels between organizations and tribes.  "Tribal Warfare in Organizations" depicts corporate departmentalization - what many of us have come to call silos - as warring tribes in action.  The organization's leaders, especially its senior leaders, are akin to tribal elders. 

Neuhaser subsequently expanded the concept in a later book, "Corporate Legends and Lore," which emphasizes the power of storytelling as an underpinning of corporate culture. In a tribal environment, the stories are handed down from elders to junior tribe members.

Consider these concepts in tandem. The organization possesses a culture, which is supported or undermined by the "tribal" sub-cultures within departments or divisions.  Every organization has unwritten rules, or stories. These strategies for survival are passed along to new employees, who must quickly learn them in order to meld and ultimately succeed.

The role of the leader includes responsibility to carry out the organization's policies and protocols, set the tone for a specific operating division and guide a group of employees. In many organizations, especially in larger ones, leaders operate with a great deal of independence. Leaders are entrusted with tremendous power, whether or not they or the organization realizes this. 

Leaders set an example that employees follow.  A strong, positive leader encourages company loyalty by nurturing staff and modeling core organizational values.  Less skilled leaders can quickly cause staff to become disengaged by verbalizing displeasure with initiatives, criticizing senior leaders and second-guessing decisions.

There are certain strategies that organizations can deploy to ensure that leaders understand and effectively execute their all-important role in cultural preservation.

1. Assess and evaluate leaders based on key organizational metrics.  If employee engagement is critical to the organization, an engagement metric must be included in the leaders' evaluation and reward system. A bottom-line driven organization should reward leaders, at least in part, on profitability. This strategy-aligned approach to leader rewards supports cultural alignment in an objective and measurable manner.
2. Sharpen the focus on leadership quality.  Some organizations display greater leniency toward leaders than toward their staff-level employees. Leaders often have long tenure and may have deep relationships across the organization. But these factors cannot be allowed to enable a leader's substandard performance.  Leaders who are not performing to standard must be addressed in an "up or out" manner. Performance improves (moves "up") or the leader moves out.
3. Identify and articulate core leadership competencies.  The organization must pinpoint and communicate the qualities and behaviors expected of all leaders.  Appropriately developed competencies will be linked to the organization's culture and provide a common framework within which all leaders can operate.
4. Invest in leadership development.  Good leaders can become great through education, experiential learning and best practice sharing. Organizations with strong cultures consistently invest in leader development, because they understand that sustaining the culture depends largely upon skilled, knowledgeable leaders.

Leaders and tribal elders share a common bond. They model desired behaviors, pass along the stories and sustain the norms of the group.  They are the keepers of culture, empowered with responsibility to preserve the past and nurture the future.