Become A Better Leader By Debunking These Four Organizational Myths

Katharina Schmidt (Inspiration & Discipline) is an executive coach, independent corporate sense-maker and leadership inspirator.

Organizations are like echo chambers. We invent something and then we copy and colonize it: continuous improvement, Demming circle, Six Sigma, the nine-box grid, budgeting, balanced scorecard, etc. I have seen many so-called best practices come and go. And I have seen some kill creativity and engagement within organizations because they were used without a sense for the context, which is different for every organization and individual. Below are some of the myths that the echo chambers many of us work in have created and that can keep leaders from being true inspirations and effective agents of change.

Myth No. 1: Telling people something will cause them to act and change.

This happens on a daily basis between leaders and collaborators. Consider the percentage of the time you talk in your conversations with other people. Does it change over time? Usually, more formal power means more speaking time. To make others behave in a certain direction, we need to guide attention toward the desired outcome. There are two obstacles around attention: Our attention span is constantly under pressure and if we are attentive, we retain, on average, 25% of what was said to us. So if we want people to first understand then act in a specific way, we need to garner people’s attention. One of the most effective ways to gain attention is by asking questions. Intentional and well-articulated questions guide people’s thinking and invite them to explore their thoughts. Instead of telling, lead with questions to gain and hold attention.

Myth No. 2: Annual performance management cycles improve performance.

How much time do you spend on performance management system requirements? How energized do you become through the process and its conversations? Research shows that ongoing personal attention and interest by a direct manager and frequent check-ins on progress and challenges are the strongest people-developing and performance-enabling practices. Nothing beats a constructive, honest conversation and connection — the feeling that someone cares. And still, hours and energy are lost fulfilling performance management systems’ needs, checking boxes for subjective competency scores and meaningless conversations. Once-a-year goals and evaluations are not suitable for a "real-time world, and conversations about year-end ratings are generally less valuable than conversations conducted in the moment about actual performance," as stated by Deloitte in Harvard Business Review. Giving attention to people, seeing their talents in action, especially the performers, could be the first step to getting off of the performance management treadmill.  

Myth No. 3: People engagement and performance are correlated to financial benefits and promotions.

What percentage of your rewards is based on performance outcomes? Would you overperform even if it does not yield extra rewards? According to Daniel H. Pink's book Drive, in environments with a strong focus on extrinsic rewards, e.g., financial or promotional, people work only to the point that triggers the reward and no further. So, once an organization has shifted into a compensation- and promotion-focused system, people's brains will be primed to expect financial rewards to act as opposed to experiencing intrinsic motivation and reward from activities themselves, like learning something new, helping others, delighting customers or just doing a good job. Regularly reflecting on your purpose next to making a paycheck can create an ongoing source of extra energy. Practicing gratitude is another source of motivation and energy. The most inspiring leaders that I work with ask the people around them what inspires them. They observe the people they work with, discover their talents and have conversations about how to bring those into the workplace.   

Myth No. 4: Automated systems can take over people engagement work. 

In a technology-driven world, some would love automated systems to take over the tedious but important work of getting people to collaborate, change and perform. I have not yet seen a technology that replaces the work of leaders engaging, developing and helping people perform; there are too many variables and intricacies in individuals than any system can account for. Leadership is an individually adaptive approach to people. It is about seeing people behave and developing hypotheses about their patterns and talents. Leaders' work is ongoing, energy-intensive and does not always feel rational or rewarding. In my world, serving other people to become better versions of themselves and to improve at what they do is the ultimate contribution we can make to humanity — whether it is our co-workers, partners or children. This is how I find meaning in the sometimes energy-intensive people and teamwork of leading, parenting and partnering.

I invite readers to compassionately and patiently explore and reflect on their dominant and not-so-dominant strategies to engage with people and develop and improve performance. Think about how to expand your repertoire and become ever more self-aware and agile in an increasingly complex world. Effective people and team leadership is a scarce skill that the world needs. Regularly asking people what inspires them, what they enjoyed (or didn't) and what they would like to learn is a good way to step off of metaphorical treadmills, expand perspectives and serve others. Connect to individuals beyond work deliverables and support them to connect to their visions, talents and goals.

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