The role of a leader is create the right internal environment that drives staff performance.
What is the role of a leader? My opinion after five years of researching the question is: to create the right internal environment that drives staff performance.
I discovered three drivers of business performance and the Pathways they follow. One can measure them so you can manage and improve them.
Each factor in the internal business environment drives performance by the impact it has on staff behaviour. When staff behaviour follows the correct Pathway, they become valuable habits.
Each factor either starts, enables or sustains the valuable habits that drive performance.
PerMaas (Performance Management as a system:
HOW THE THREE PATHWAYS COMBINE
- BEHAVIOUR PATHWAY
The objective of the Behaviour Pathway is to create valuable habits.
The Behaviour Pathway moves the performance needle. The Behaviour Pathway translates strategy into action, connecting the past to the future.
The Behaviour Pathway is the means by which you get from where you are now to where you want to be. You want to improve business performance? start with the Behaviour Pathway.
Behaviour drives performance. The Behaviour Pathway is a lead indicator of performance. All efforts to measure, manage and improve business performance should be focused on this Pathway. You measure the Behaviour Pathway through Key Behaviour Indicators (KBI’s).
All goal-oriented behaviour follows a distinctive cause-and-effect ABC pattern, dictated by the situation and your role and goal within it. The situation starts, enables and sustains your behaviour.
Behaviour follows a distinctive Pathway in business at three levels: individual, operational and strategic. At individual level the behaviours are core competencies, at operational level they are core processes, at strategic level they are core activities.
- BUSINESS ENVIRONMENT PATHWAY
The objective of the business environment pathway is to measure how well you are executing your strategy.
Eight factors in the business environment drives performance through a distinctive Pathway. The eight factors are:
• Roles & Resources
• Results and Processes
• People (Selection & Development and Expectations)
Each factor drives performance by the impact it has on valuable habits. Each factor either starts, enables or sustains goal-oriented behaviour when managed in a system that rewards valuable habits.
- KNOWLEDGE PATHWAY
The objective of the Knowledge Pathway is to ask the right questions, how each of the eight factors drive performance. The Knowledge Pathway drives performance by the impact it has on our behaviour, through the Behaviour Pathway.
Knowledge is a resource, an invisible resource, but it is the source of value of all other resources. Knowledge is the oxygen that breath’s life into your business. It is what a company knows that determines its success.
The objective of knowledge management is to provide the right information, to the right person, at the right time, in the right way, in order to make the right decision and do the right thing.
All knowledge starts with a question. Permaas asks the core questions, how each factor starts enables or sustains the valuable habits that drive performance. The questions are not new, how PerMaas structured them in its unique Knowledge Pathways is new.
Permaas developed technology to measure accurately and in real-time how these factors drive performance. The questions are universal, applicable to any business, in any industry globally. The answers however are unique to you and your performance journey.
The Knowledge Pathway has two sources of knowledge, tacit and explicit, and four generic knowledge processes. Tacit knowledge is personal insights, wisdom accumulated over years of learning. Tacit knowledge is difficult to capture on paper and best shared face-to-face.
Explicit knowledge produces facts. It is evidence based, the result of scientific methods of deduction. Explicit knowledge is easy to discover, capture in documents and share. Explicit knowledge is independent of the person who originally created it.
The four knowledge processes are generic to both tacit and explicit sources and represent the four stages of the knowledge journey. You first create or discover knowledge, next you capture it, then you share it and finally apply it. The processes add value at all stages in ascending order of impact. Knowledge adds most value when it is applied.
Knowledge is the source of value of all other resources. All knowledge starts with a question. PerMaas designed a performance management system to measure, by asking the right questions, how each Value Pathway drives business performance.
The questions are not new. They have been asked before by experts in their field. The questions are derived from the literature review of secondary sources of experts in each factor.
The author re-framed the factor expert’s deductions to explain the cause and effect relationship between their expert insights and their impact on people’s behaviour. This inductive reasoning created the PerMaas system.
PerMaas explains how, by asking the right questions, each factor starts, enables and sustains behaviour.