There are two types of performance - but most organizations only focus on one
Many organizations are stuck in a vicious cycle, ping-ponging between being either too command-and-control or too hands-off. That's because there are two types of performance, and unless they are properly managed, increasing one typically destroys the other. Research, including a study by Harvard Business School professor Ethan S. Bernstein, shows that employees often improve performance when not strictly monitored, as they feel freer to innovate. Overemphasis on tactical performance can stifle adaptive performance, leading to robotic customer interactions and reduced problem-solving capabilities. To balance both types of performance, organizations should reduce pressure on strict adherence to processes, encourage experimentation, and implement metrics that promote learning rather than just meeting targets. This balanced approach can enhance overall performance, adaptability, and employee motivation, as demonstrated in a case study of a bank’s call center where operational changes led to significant performance improvements.
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