The Third Lesson: Accelerate Performance

True performance, meaning achievement of something measurable and meaningful compared to past results, requires accountability and alignment.

The organization may focus on three to four key measures that can be measured qualitatively or quantitatively. Effective performance can then be accelerated by setting baseline measures and taking actions to improve results and then resetting the baseline.

Accountability may be shared across organizational units if a team of department leaders is formed and the senior leadership team reviews their results on a regular basis. This approach minimizes the risk of “siloed” groups and blaming others for lack of progress and aligns the resources toward common objectives.

Accelerating individual leadership performance during the first 100 days after a merger and acquisition or leadership change is also critical. Most research studies indicate that taking too long to align the organization and engaging the team is a leading cause of under-performing against key objectives.

What do private equity firms have to teach about performance acceleration? In my view, it’s their urgency in getting the right people in the right roles and focused on the right things so they can shift their focus elsewhere within their portfolio of companies.

A leading venture capitalist told me last week that his firm passes on many potential investments because of concerns that the leadership team must to be significantly upgraded to meet new strategic demands rather than the organization’s products, technology, or services.

The implication? Build the competencies necessary to accelerate performance before you meet with potential investors as they will benefit your career and organization regardless of your funding.