LEVEL 7 PERFORMANCE MANAGEMENT SYSTEM
The System to drive profits,
and simplicity in the new world
The Road to Level 7
In the last section, we talked about the need for everyone at all levels of
the company to know what the organization’s goals are. In our work
with companies, we have found that it is common for the CEO or
Project Leader of the organization to have a very good idea of what his
or her goals are, but further down the chain of command within an
organization, the employees have a very different idea.
A useful experiment that you can try in your own company is to ask
your employees what they think the top priorities of the business are,
right now. Let’s say that you have identified your priorities as A, B, and
C. Try a skip level review, going down yet another level of the company
and surveying these employees about what the organization’s most
important goals are.
This diagram shows you a typical response that the manager who asks
this question might get:
A review like this can be a real eye opener.A May 2005 Harvard Business
Review article reported, “Individuals’work activities often do not reflect
the current strategic priorities of the business leader … and do not add
to the bottom line.”
“Ninety-five percent of the workforce does not understand the strategy.”
Many CEOs have the right priorities, but the employees do not know
what these priorities are—so the CEO does not reach his or her goals.
So for the purposes of example, let’s say that your review turns out to be
something like the diagram above, and that your well-intentioned
employees are working hard, but they are not headed in the right strategic
direction to deliver what the business needs.