Lawn Mowers, Leverage, and Performance

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My Dad had a favorite saying – ‘Don’t take anything out of the shed unless you intend to use it the right way.’ He was talking about the riding lawn mower, mainly, but I think the saying has pretty solid grounding and near-universal meaning and relevance. And I would even suggest that the sentiment, the necessity to use tools the right way, applies all too often in HR shops everywhere.

Take the performance review process. I know, what a bore.

Hear me out.

If your performance management process is ineffective, and isn't producing the kind of big business impacts that you need, well, it really doesn't have to be that way.

You might not even realize the incredible leverage that can be, well, leveraged, by making a simple tweak to the process, and it’s the kind of tweak that doesn't really require any investment in new software or a slowly cascaded throughout the organization nine-year deployment plan to take effect. In truth, it might be as simple as changing just one of the key performance evaluation criteria on just a subset of your employees.

A case in point, recently reported in the Harvard Business Review Blog, was retailing behemoth Walmart’s strategy and desire to operate more sustainably, to reduce their (admittedly massive), environmental footprint, and try to do the right thing, more or less, by Mother Earth, primarily by ‘greening’ up their supply chain. Just like Walmart has been notorious for hammering its legion of suppliers to help deliver Low, Low prices, (or whatever their slogan is these days), it wanted to use that same power and pressure to bully the suppliers into more sustainable and ‘greener’ practices.  Simple math really – if the major suppliers of the chain were forced to operate in more environmentally friendly ways, then Walmart’s overall negative environmental impact would be reduced. If the suppliers wouldn't or couldn't meet these goals, then Walmart could simply find other ones that could.

But there was just one problem in this plan, in that Walmart's buyers, (known as merchants), were primarily measured on the costs of the products they sourced, and not on the environmental impacts of making the products.

The problem, as summarized in the generic cialis online

r.org/winston/2012/10/how-walmarts-green-performance.html?”>HBR piece:

But greening its supply chain has been a tough task. Suppliers have repeatedly voiced one critical and legitimate complaint: Walmart's merchants don't really take sustainability into account when they make buying decisions. This flaw in Walmart's green supply chain program has threatened to undermine the foundations of a highly-touted and important initiative.

In their (the suppliers) view, the company has continued to choose the products it sells primarily on price.

So how to make the Walmart merchants ‘care’ about sustainability, or perhaps more accurately, how to incent them to consider sustainability in addition to price in their buying decisions?

Enter the lowly, gets less respect than Rodney D, and is a yoke around the neck of employees everywhere - the Performance Review.

More from HBR:

Sustainability will now play a role in its merchants' performance reviews, which help determine pay raises and potential for future promotion. This is a big deal: these merchants are high-level managers responsible for multibillion-dollar buying decisions. They're the people who determine which products appear on the shelves of the world's largest retailer. Performance evaluations for buyers only include a handful of targets, and all are discussed thoroughly at annual reviews. Sustainability performance won't determine the entire evaluation, of course, but it's high profile enough that it should affect behavior. Incentives matter and cultures shift over time. Hard-won operational changes like modifying performance reviews may not be sexy, but the results can be profound.

A subtle shift leading to profound results. That’s the definition of leverage my friends. And this example shows talent pros, as custodians of the good old performance management process,  probably have more than you realize.

So next time you decide to break the performance review forms out, think about this little story, and your lawn, and your crazy kids, or whatever it is that will make you pause for a moment and consider how to apply your leverage.

If you are going to take something out of the shed, make sure you use it properly.

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FOT Background Check

Steve Boese
Steve Boese is fondly known to many as the HR Technology blogger. By day, he is a Director of Talent Management Strategy at Oracle. Wow, that is big time... By night Steve can also be found hosting the HR Happy Hour on Thursdays at 8PM ET ... you know, where a bunch of HR pros get together and call in to talk about HR stuff. Sounds like a real happy time... yep. Okay then...

2 Comments

  1. Kes Thygesen says:

    As a manager, if you’re not already using your performance reviews to leverage the needs of your office or upper management, then you’re just not thinking. Think of the possibilities if you did just change one question in your reviews — to find one new piece of information across all employees or to plant in seed in the heads of your employees. You might be surprised what you find.

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