Improve Performance by Increasing Effectiveness: S + R x P = Results

Clients seek me out for 1 of 3 reasons: They aren't growing their business, their business is declining, or there is a form of internal discord impeding success.

Whatever the reason the client reaches out, ultimately they are looking for improved performance.

Most companies translate performance by results. How did your company perform this quarter? Excellent, we beat our revenue goal by 20% and overall net profit goal by 11%. Just like most owners and executives, my clients are focused on end results and their perception of performance is shaped around that information.

When end results aren't meeting expectations, how do you improve or fix them? The path to performance lies in the effectiveness of your organization. If your organization is effective at core competencies that contribute to your success, your organization will achieve greater performance. If your organization is not effective, well then, performance will not be there.


How do you laser focus on increasing effectiveness? The formula for increasing effectiveness is simple: scoreboard + routines x people = results.


What is on your scoreboard? What metric are you after? If end result is revenue, you may have average transaction value, new accounts to total accounts ratio, or units per transaction as core metrics on your scoreboard.

A scoreboard is the first step in increasing effectiveness. It level sets all players on what the focus is and what is being measured. Effectiveness starts with measurement.

Companies are taking measurement and scoreboards to a whole new level in the 21st century with custom dashboards and mobile apps. API technology allows for easy flow of data between software and programs to put the right data in front of the right person at the right time.

Scoreboards are best utilized when they are customized to include the 5-10 core KPI's of a particular business unit's contribution to the success or failure of an organization. A middle manager will have a different scoreboard than a CFO.


What routines do you have in place to score. Back to our average transaction value, what routines are in place to ensure we are scoring on the metric. Do you have an up-sell process? Do you have a bundle marketing approach? Do you have velocity or tier based pricing model?

The word routine is often confused with process. Processes are important but routines takes it to a more granular level. You may have a process for up-selling but having a routine ensures that it is done in a consistent and systematic fashion. Effectiveness is rooted in consistent and systematic.


How do people play into the routines? Some routines involve people and some do not. At a very high level, strategy is a routine. Who do you have doing this routine? People beats out routines and scoreboards every day of the week.

You can have the best scorecard and the best routines, but if you have a 0 in people, you have a 0 in results.

Notice the formula has people as a multiplier - that's how important people are. Better people can multiply your results. People are the key to effectiveness. The most effective organizations have the best people.

Improve your performance by increasing your effectiveness. With advances in technology, people development, and our ability to analyze data, there is no ceiling for effectiveness. Your organization's performance directly correlates with your organization's effectiveness.

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Copyright Kenneth C. Knox 2018