Relationships or Performance?

When relationships matter, process trumps outcome

As leaders, we are measured largely by outcomes.  Did the work get done?  Was the margin there?  Yet there is a process that helps us achieve those outcomes that does call into question what we believe is most important?

In my work with growing companies I have learned to ask the question “What is your funding source – debt/cash flow, private equity, or venture capital?”  I can usually feel the difference, but ask just to make sure. When speed and growth/returns are so critical (latter two), then generally outcome trumps process.

Your talent strategy should reflect your belief in what is most important in your business.  This is also not about a good and bad labeling exercise.  Those words tend to stop a conversation and start an argument.  I use effective and not-effective, because it forces us to remember the outcomes we wanted in the beginning.  If our goal is 30% EBITDA growth and a few leaders get burned out and leave, maybe that is okay.  Fast growing companies need to be great at bringing in leaders/personalities that will figure it out and be successful.  That needs to be there #1 focus.

You see, the other edge to this sword is building trust.  Peter Drucker once said “The existence of trust does not necessarily mean they like one another, it means they understand one another.”  As a leader, just be clear with your beliefs and lead accordingly.  Actions need to align with beliefs, so people can see consistency in your approach.  You also need to continue to ask yourself “Are the results in my business and my team are proving my methods effective or not effective?”

I love having this conversation with leaders, because is revealing and it matters.  It also helps people define their own path to increasing their own capacity to lead.  That is a process I can get excited about.

When relationships matter, process trumps outcome

**If you want to dive into this topic a little deeper, chapter 2 in my book outlines what I call the OBN (Ought But Not) Leader.  On Amazon.