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Performance Framework

Introduction
The Performance Framework is a visual tool that shows interrelationships of key performance variables and helps leaders plan major changes in a way that will cause minimal organizational disruption and have maximum performance impact. It is a versatile tool for leaders that can be used throughout the LSS/HPO implementation. For example:
Early in the cycle, leaders use it to develop a transformation strategy whose elements are aligned and timed for maximum impact.
After each major stage, leaders use it to assess implementation progress, identify potential problem areas, and develop cohesive action plans.
In the Initiation stage, it is used to reduce resistance to change by communicating an aligned change plan whose elements are understood by all.

  • During the Design stage, leaders use it to ensure planned changes in the organization’s business, and workplace interactions are supported by the Human Resources practices.

Reading the Performance Framework tool
Key items to consider when reading the tool are:

  • The factors in the boxes and ellipses are those factors that leaders address to produce outputs and to influence elements in their external environment such as competition and customer demands.
  • The three central elements in the Energizing Core provide fuel for leaders to effectively change the six performance factors shown in boxes.
  • All the factors and Energizing Core elements in the Performance Framework are linked, even though lines do not connect them all. It is helpful to think of all the elements as being in an electric “field” where all elements influence each other in different ways at different times. Especially strong links that are consistent are shown as interconnecting lines.
  • For a brief description of an element within the Performance Framework, position your cursor over it.

Many other visual models, such as the McKinsey 7S framework, attempt to explain organizational performance from the standpoint of key variables. While these models have been useful for explaining general organizational performance, they do not address all the key performance factors for LSS/HPO implementations. The Performance Framework has been developed over a period of 15 years based on Tom Devane’s experience with over 200 companies and contains some special targeted information especially relevant to LSS/HPOs. Some key differences from other performance models include:
Inclusion of a Culture factor because culture needs to be actively managed in an LSS/HPO.

  • Addition of Information & Learning because this factor influences the speed and quality of the absorption of new ideas.
  • Inclusion of a Pay for factor because other models were mysteriously missing this important factor that ultimately determines whether an organization lives or dies.
  • Addition of a Want to factor because without people’s being motivated—both intrinsically and extrinsically—performance gains will not be sustainable.