Page 158 - Performance Leadership

Chapter 9 Values and Culture • 147

implemented top down, cascading into the organization. They reflect
single corporate goals. Management information is not very public;
feedback is given by management on an individual basis. Rewards are
individualized as well.
Contrast this with group-focused cultures. The needs of the group
to which that person belongs come first. Decision making in group-
focused cultures is a process based on consensus. Managers facilitate
the process and see “the right” decision as the one that has the highest
buy-in. People take responsibility for each other, and the group is
responsible for the overall results. Performance indicators come from
the group and they are implemented bottom up. They are usually com-
plex in nature and reflect the balanced needs of all stakeholders. Man-
agement information is created by the group and used by the group.
Incentives are evenly distributed over the group.
If in a group-focused culture, an individual-focused performance
management initiative is introduced, it will lead to ignoring the indi-
vidual performance indicators, or all kinds of ways will be found to get
around the system; for instance, by redistributing incentives. Con-
versely, if you implement a group-based system in an individual envi-
ronment, it will lead to inertia. People do not see how their personal
contributions are recognized and become demotivated. See Table 9.2.

Meritocracy versus Aristocracy
Meritocratic organizations recognize people based on their achieve-
ments. In a meritocracy based on specific competencies, people are
drawn into projects that lead to strategic decisions. Performance indi-
cators are zero-based. Every period there is another chance to prove
what you are worth as a professional. A person’s status is reevaluated
every quarter on the basis of quantitative results. In a culture based on
achievements, people are rewarded with a bigger domain to manage
(such as a sales region), so that through higher targets and associated
bonuses, they can become even more successful.
An aristocracy, where status is based on background, can also lead
to high performance. In an aristocracy, where status is based on some-
one’s background, performance is linked to influence. Hence, success
is almost a self-fulfilling prophecy. Aristocratic environments are hier-
archic. Status is measured in terms of the levels the manager oversees.