Rule 19: The Role Model

The Role Model Rule:  Make Performance Management a Strategic “A” List Priority 

An obvious, though under-appreciated, reality of business and organization management is that the behavior and work methods of senior executive leadership pre-defines the behavior, work methods and how things get done in the organization as a whole. 

If the CEO is a “hard-charging”, “ruthless”, “hierarchical”, “take no prisoners” personality, the organization as a whole will manifest that personality in both “What” it does and “How” it does it.   If the CEO is “innovative”, “collegial”, “cooperative”, a “people person”, those will be predominant traits of the enterprise.  

In environments of any Uncertainty, the workforce will mimic or emulate the leadership.

Whether all CEOs and senior leaders fully appreciate it or not (most don’t), their personality and “How” they do “What” they do is another, and perhaps most powerful, overt and explicit statement of what it takes to succeed in the organization. 

Regardless of all other organization priorities, strategies, goals, initiatives, programs, policies and procedures that might be to the contrary, for better or worse, senior executive leaders are the “Ultimate Role Model” on “How To Succeed” in the enterprise:  “Well, she’s the boss, so my best shot at success around here must be to be just like her”.

Given this reality, CEOs and other senior executive leaders must recognize and embrace the “A” List priority of creating and implementing enterprise-wide Enterprise Performance Management. 

For EPM to succeed—with its ubiquitous impact on revenues, expenses, assets and liabilities—it will require the same rigor, consistency, and universality of process and technology as now applied to Financial Resource Management, income statements, balance sheets, general ledger accounting systems and processes, et. al., spearheaded by senior executive leadership, and making non-compliance non-negotiable.

For real-world implementation, as a direct parallel to typical corporate “finance committees” and industry-specific variations such as bank “asset-liability management or loan committees”—entities that manage the Financial Resources—the recommendation is that organizations establish an official, permanent, cross-enterprise “Enterprise Performance Management Committee” to manage the Workforce Resource; charged with the responsibility of implementing and sustaining their organization’s specific “Generally Accepted” Rules of EPM.

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>>> Rule 20