Page 160 - Performance Leadership

Chapter 9 Values and Culture • 149

Table 9.3
Meritocracy versus Aristocracy

Meritocracy (what you’ve done) Aristocracy (who you are)
Management process Project-based, filled with Hierarchy-based, decisions
the right competencies made by the inner circle
Key performance Indicators Zero-based, starting from Based on continuous
scratch every quarter improvement,
or year accumulative
Feedback Constant reevaluation, Coming from senior
based on numbers management, based on
recognition
Rewards Bonus, bigger domain Salary increase, hierarchic
promotion
Dysfunctional behavior Suboptimization, hiding Downplaying the
information importance of performance
management

Rules versus Relational Orientation
Rules-based cultures play it by the book. There are clear rules to make
sure there are no exceptions and everyone is treated the same. This
includes citizens, customers, and also employees. Contracts need to be
kept, regardless of the circumstances. Every group has the same per-
formance indicators, and the numbers speak for themselves. Feedback
is based on a public ranking of results. The bonus schema is clear for
everyone and has a predictable outcome.
In relationship-oriented environments, people focus on specific sit-
uations at hand. They speak of people in terms of relationships, such
as “friend,” “special customer,” “loyal employee.” Rules or not, the rela-
tionship needs to be protected. Contracts can easily be changed if cir-
cumstances change. Performance indicators are very personal,
reflecting someone’s unique position. The numbers don’t speak for
themselves; they are there to trigger a personal and qualitative discus-
sion. Naturally, incentives are at the discretion of the management.
A rules-oriented approach in a relationship-oriented culture will lead
to getting around the system; people will find alternative versions of the
truth, showing their results are not comparable with anyone else’s. A
relationship-oriented approach in a rules-based culture is equally dis-
astrous. It will lead to cynicism, with accusations of favoritism or even