There is a BIG question at heart of the performance debate. How a team answers reveals a lot about its psychology, as well as its potential. Here is the question:
The BIG Question
For a decade we have been asking the BIG performance question of business leaders and their teams. We have done it thousands of times across 12 industries in 47 markets.
While the percentage answers we hear vary – typically falling somewhere between 40% and 70% – the implication is always the same. That is: there is lots of potential within organizations, business units and teams. The disappointment is that much of this potential goes unexploited.
Vital Performance Data: P2P Metric™
How your team answers the BIG question is a key piece of performance data that can be applied to an organization, business unit or team.
We call it the P2P Metric™, or the ratio of performance to potential and it underlies everything we do. For example if your team’s P2P Metric™ is 57%, then a Pitstop Program will help you to systematically and progressively get that figure up to 60%, 65%, 70% and so on.
The P2P Metric™ is a Test!
The BIG question provides qualitative, as well as quantitative performance data. Specifically, the narrative and behavior accompanying any percentage answer reveals the mindset, expectations and sentiment of leaders and their teams.
There is psychology behind the BIG question. How a team talks about its P2P Metric™ and, what, if anything, it does when it stops talking are key indicators of the performance mindset or culture of an organization or team. So, what will your P2P Metric™ tell you?
Want to Increase your P2P Metric?
To understand your team’s P2P Metric requires an appreciation of ‘Performance Losses’. They are the difference between where you team is and where you want it to be – the reason why it has a P2P Metric™ of 60% and not 80% for example.
Performance Losses threaten to keep your team where it is today, acting as stubborn obstacles in the way of making any serious improvements. Turning the losses into gains is the role of Pitstop to Perform™ and the Growth Pitstop™ Community.
Why You Need the P2P Metric™
What gets measured gets managed and of all things that should include performance. So a metric that tracks the performance of business units, departments and teams is key.
The P2P Metric™ is like an organization’s Net Promoter Score* or the Unemployment Rate for an economy. It is a yardstick against which organization, team and people performance can be measured, adjusted and monitored over time – one that enables internal and external comparison too.
The P2P Metric™ must be based on fact, rather than feeling, while at the same time taking account of the so called ‘fluffy’ stuff such as organizational culture.
That the P2P Metric™ measures performance against potential is important. This helps ensure that the debate about performance is future-focused, realistic and positive. How effectively a team can dialog its P2P Metric™ and what, if anything, happens s as a result, reveals a lot about its psychology or mindset, even its cohesiveness and alignment.
*Net Promoter Score is a registered trademark of Satmetrix