According to Peter Drucker, "the allocation of capital and people will determine whether the organization will do well or poorly." So a key question might be, are you properly allocated? How serious are you about what you’re doing? Serious enough to evaluate performance? If you’re serious enough to evaluate performance, how do you do it? Is there a way to determine whether your team is working at a level that justifies the expense?
Today’s reading in The Daily Drucker was a discussion about resource allocation decisions. Interesting. We all find it easier to evaluate capital investments. Return on investment (ROI), payback period, cash flow, and discounted present value all provide important clues that allow accurate assessment of capital investment. But how do you evaluate people decisions. Also according to Drucker, "decisions to hire, fire, and promote are among the most important decisions an executive makes (p. 376)." So, back to the question: first, are you serious enough to evaluate performance on your team? And second, how will you do it?
Let’s just say, you better be serious enough to evaluate. And you won’t be able to evaluate objectively without an accurate job description with specific expectations, an understanding about what is a win. Understanding what you really expect from each player is a big, big issue. Does your team know what a win is? Here’s more on clarifying wins.