Page 162 - Performance Leadership

Chapter 9 Values and Culture • 151

decision-making processes and on finding the right solution. Decision-
making processes tend to be slower, but also more balanced, taking
long-term commitments into account. Some companies even have a
vision where they would like to be in 20 to 50 years. Performance indi-
cators are not based on immediate results, but on their contribution to
longer-term goals. Feedback is important, but focuses on a person’s
potential as much as on results. Rewards are given in terms of more
status within the organization.
A short-term approach in a long-term environment will lead to peo-
ple ignoring performance indicators; there is simply a different sense of
urgency. The opposite will happen when a long-term approach is used
in a short-term environment. Middle managers will set up their own per-
formance management systems and feel a lack of control. See Table 9.5.

Theory X versus Theory Y
McGregor’s Theory X and Theory Y describes two extremes in people’s
work attitudes that are highly relevant for performance management. 9
Theory X states that people are looking for ways to minimize their effort

Table 9.5
Short-Term versus Long-Term Orientations

Long-Term
Short-Term Orientation
Orientation (contribution to
(pragmatic results) the vision)

Management process Tactical results, swift Fundamental discussions,
decision-making processes honoring long-term
commitments and
traditions
Key performance indicators Process-oriented, fast- Periodic, focused on
changing, real-time, contribution to strategic
specific goal-oriented goals
Feedback Swift, specific Periodic, holistic
Rewards Awards, bonuses Status, influence
Dysfunctional behavior Setting up “illegal”systems Ignoring performance
due to lack of corporate indicators
processes and systems;
procrastination (waiting
for miracles to happen);
unfocused behavior