Josh Birkholz

Do performance metrics actually change behavior? Part 1 of 3

Last week I delivered a presentation on performance metrics in fundraising with the very brilliant Heather Campbell of Princeton University.  During the session, I commented that most of the prospect management and metrics sessions and articles fall way too short.  Typically, they provide new means of measuring activity, but lack any suggestions for improving lackluster performance.

So, for my next three blog posts, I will muse about changing behavior through performance metrics.  In my now 8th year of consulting nonprofits on prospect development and operational improvements, perhaps no topic surfaced with greater frequency.  I hope my observations add some value to the discourse.

To start, check out my very unartistic venn diagram above thanks to the easy charting capabilities of GraphJam.  The more I consult, the more I realize how much people are motivated by self-interest and the path of least resistance.  Everyone has self-interest, those short- or long- term personal goals that define our choices.  And, without an intervening motivation, we pursue the path with the least resistance.  I would define the least resistant path as the easy path.  We might follow a difficult path when self-interest bears more weight.  For example, we might spend hours researching fishing holes, quilting techniques, video game strategy, or sports statistics—not because the work is easy, but because it is fun.

Organizations, be they for-profit or nonprofit, have goals.  Typically, these are increased production, operating efficiency, mission impact, constituent engagement, or profitability. Rarely do the organization’s goals align with the worker’s self-interests except in cases of leadership or incentive systems.  Typically, leaders further expect that the organization’s goals do align with the worker’s goals, but rarely is this the case.

When an organization chooses to enforce performance standards without acknowledgement of the employee’s self-interest, the result is compliance.  The employees will choose the easiest way of meeting the bare minimums to preserve their job.  They do not choose to perform.  They do not go above and beyond.  They do just enough.

However, when an organization views its talent as central to their success, something different happens. They understand that one system of enforcement doesn’t work.  Leadership seeks to discover why each employee is there.  And, they align the why we do what we do to the why do you do what you do.

The result of the alignment of a true self-interest with the organization’s goals is a realization by employee that the path of least resistance is actually performance.  Work becomes fun.  Rather than doing just enough, the employee does more. 

It comes down to listening, understanding the workforce, tying individual success to organizational success, and staying true to it.  When it works and the employee believes it will continue, the organization achieves sustainability.  And, a funny thing happens.  Employees stick around.

Watch for parts 2 and 3 coming soon!

Joshua Birkholz

Bentz Whaley Flessner