In het vak ‘Beheerscontrole’ ligt de nadruk traditioneel op extrinsieke drijfveren die mensen aanzetten tot het realiseren van bedrijfsdoelstellingen. Denk daarbij aan ‘Pay-for-performance’, evaluatie-systemen, rapporteringen, budgetten,… Populaire publicaties van bijvoorbeeld Frederic Laloux (Reinventing organizations), Ricardo Semler (The 7 day weekend) of Vincent Nayar (Employee First, Customer second) tonen dat er andere culturen en bedrijfsfilosofieën zijn. Maar betekent dit dan ook dat de pijlers van het vakgebied niet meer relevant zijn? Zijn indicatoren historisch erfgoed in management geworden? Vast niet, maar het is wel tijd om terug naar de bron van het vak te gaan en om de traditionele managementprocessen op een andere manier aan te pakken, zodat ze beter inspelen op de trends in onze marktomgeving en aantrekkelijk zijn voor de nieuwe generaties waarmee we samen werken. In deze sessie vertrekt Geert Scheipers vanuit goed onderzoek rond sturen in organisaties, om te bekijken hoe men vanuit een doorleefde visie en inspiratie succesvolle, duurzame organisaties uit kan bouwen.

1. Recalibrating Performance
Management
Geert Scheipers
Partner Delaware Consulting
Academic Director OPM Antwerp Management School

2. 1920 1930 1940 1950 1960 1970 1990 2000 20101900 1910
Scientific
management
Taylor, 1911
Gantt chart
Gantt, 1914
Participatory
management
Follet, 1924 Hierarchy of
needs
Maslow, 1943
How to deal with
resistance to change?
Lawrence, 1954
A behavioral
theory of the
firm
Cyert & March,
1963
The manager’s job
Mintzberg, 1975
Competitive
strategy
Porter, 1979
“Strategy is about making choices, trade-offs;
it’s about deliberately choosing to be different”
In search of
excellence
Peters &
Waterman,
1982
The Balanced Scorecard
Kaplan & Norton, 1992
Leading change
Kotter, 1995
“If you only do what worked in the past,
you will wake up one day
and find that you’ve been passed by”
Disruptive innovation
Christensen, 2003
Emotional
intelligence
Goleman, 1998
Analytics
Davenport, 2007
Great milestones in management
1980

3. “ I have the impression my employees are not motivated at all”
“ We always have discussions around salaries”
“ My boss really doesn’t understand me nor the work that I do”
“ Instead of working together the other departments seem to boycott me”
“ In our company we waste so much time chatting and debating in the
meeting room that I don't have time to do my stuff”
“ I don’t think our company has a vision, everything we do seems
randomly chosen”
“ Nice plans but please give me the proper workforce and a decent set of
tools and equipment”
“ What’s the use of these fancy reports if I know they do not reflect reality”
…
Great in theory, but …

4. A day in the life of …

5. And we can’t say we haven’t been warned
We hope for … But we often reward …
• Sustainable long-term growth
• Teamwork
• Setting challenging ‘stretch’
objectives
• Rightsizing
• Commitment to total quality
• Candor, surfacing bad news
early
• Quarterly earnings
• Individual effort
• Making the numbers
• On Time In Full shipments, even
with defects
• Reporting good news, &
agreeing with the boss, whether
or not (s)he’s right
Source: Kerr S. AoMJ (1975)
On the folly of rewarding A, while hoping for B

6. So … now what?

7. Industry Culture
Strategy
MCS
Organizational
performance
Technology Structure Size
Adapted from EDEN Doctoral Seminar, Brussels, 2003 – Rob Chenhall
Contingency theory: Didn’t we forget something?
Society

8. Back to the drawing board
• Since many of the biological needs are cared for and a sense of security
exists for most employees in the Western world, people are more and
more aware of their deep seated desire to live a life of purpose
• Most algorithmic tasks and transactional repetitive work has been
automated
• All of our workers are connected, informed, better trained and
knowledgeable
• People know they have a choice
So, we need …

9. A Simple Plan
Performance
Effort
Resources &
Capabilities
Motivation
Direction
Intrinsic
Extrinsic
Processes & initiatives
≈ Success ≈ Personal well being ≈ Happiness

10. Performance management defined
A process of motivating and inspiring
managers and employees to perform actions
that contribute to the achievement
of the organization’s goals
and to the implementation of its strategies
in an effective and efficient way
‘getting things done’ as a science rather than an art

11. Complementing the motivation toolbox
Expectancy theory seeks to understand the types of measures & rewards
that motivate employees
Agency theory seeks to understand the contracting behavior between
principal & agent
Goal setting theory seeks to understand optimal level of target setting
Self-efficacy theory reflects on the initial selection of tasks in that higher
self-efficacy (individual characteristic) leads to the choice of more
challenging tasks to perform
Self determination theory describes how socio-contextual factors
influence autonomous motivation

12. Measuring the right things, the
right way

13. You get what you measure
Source: Ariely (2010), HBR, You are what you measure

14. Abundance in Measures – quid Insights?

15. Simple Rules
Why they work?
• They provide flexibility to pursue new opportunities while maintaining some
consistency
• They can produce better decisions when information is limited and time is short
– In contrast to complicated models, simple rules focus on only the most
critical variables. By Ignoring peripheral factors and tenuous correlations,
rules of thumbs (heuristics) eliminate a great deal of noise. The absence of
noise results in decisions that work reasonably well across a wide range of
scenarios, rather than being optimized for a single situation.
– Simple rules also capture correlated information about the context.
– Simple rules minimize the risk of overweighing peripheral considerations by
focusing on the criteria most crucial for decision making.
• They allow members of a community to synchronize their activities with one
another on the fly
• They make it more likely that people will act on their decisions, because they are
easy to remember and less cumbersome to follow than complex guidelines for
action
Source: Eisenhardt & Sull (2015) Simple Rules, how to thrive in a complex world
“Do not match complexity with complicated
strategies but use simple rules to shape
critical processes on a daily basis. “

16. Making vision explicit: the strategy map
Cost efficient
management
boost market
share at targets
clients
Brand image
Innovative and
complete portfolio
Cross functional
research and
development
Customer
acquisition
Enhancement of
existing profitable
customer relations
Customer
satisfaction
Qualitative
service
Delivery
truthful
price/quality
Well organized
processes
Awareness of
cost implications
Motivated
employees
Inspiring
teamspirit
Focused
training
Knowledge of
customer needs
Financial
Customers
Internal processes
Learning & Growth
Systematic
improvement of
margin
Creative &
effective
marketing
Profitable growth
Being a Recognized
Reference

17. The Balanced Scorecard
Brand image
Creative &
effective
marketing
Innovative
and complete
portfolio
Crossfunctional
research and
development
Knowledge of
customer needs
FinancialCustomersInternalProcesses
Innovation&
Learning
Strategic Theme
What is essential for
successful
development of the
organisation, what is
the content of this
strategic element
Success Factor
How do we
evaluate the
performance
Indicator
Which
performance
level do we want
to achieve
Target
What
improvement
actions will we
execute to
improve
performance
Initiative
Balanced Scorecard Action plan
We work on our image in
order to attract new
customers, to deepen the
current relations and the
legitimacy of our
organisation
We wish to be recognised
as
Solid,
Reliable,
Customer-oriented
Professional
Expert
1] Top of Mind
2] Interbrand value
1] highest quartile
2] 200k€ (3% more than
last year)
A] New marketing
campaign above the line
through Ogilvy,
responsible Hilde C,
budget 46k€
B] Development of a new
house style,
responsible Mike M,
budget 20 man-days
Coherent collection of a series of critical
success factors, describing a specific
strategy component. The themes explain
the most important processes, vital for the
realisation of the mission and the
achievement of the goals
Being a Recognized
Reference

18. Diagnostic versus interactive Use
Indicator 1
Indicator 2
Indicator 3
…
Indicator n
Interactive
Use
Diagnostic Use
Organizational
Capabilities
• Innovation
• Entrepreneurship
• Customer Orientedness
• Learning
+
-

19. It’s culture stupid

20. How human nature shapes our choices
People are guided by four basic emotional needs, or drives, that
are the product of our common evolutionary heritage:
• The drive to acquire: obtain scarce goods, including intangibles such as social status
• The drive to bond: form connections with individuals and groups
• The drive to comprehend: satisfy our curiosity and master the world around us
• The drive to defend protect against external threats and promote justice
Employee Motivation - Nohria, Groysberg, & Lee, 2008

21. Enabling versus coercive formalization
Coercive
formalization
Enabling
formalization
Performance measurement
systems only serve higher-
management needs and
control employees behavior
Performance measurement
systems support employees
to do their work better (by
providing feedback,
identifying problems,
revealing improvement
opportunities, help
prioritizing action, ...
Whether formalization is perceived as coercive or enabling depends on the
process of performance measurement design and use
Wouters & Wilderom, AOS, 2008

22. Shaping an organizational culture
“Consistent behavior of enough
people, for long enough time to
internalize the common way of
thinking, and to make the new
behavior a new habit”
For long enough
Manzoni, EIASM, 2011
Consistent Behavior Organizational DNA
Of enough of us

23. Co-creation
Co-creation = Involvement & influence
• High quality strategy
• Ownership of strategy

24. Characteristics of a high performance culture
1. Dissatisfaction with the status-quo
Making
things
better
We can
and
will do it
Drive out
helplessness
The sense
of us
The
irrational
drive to make
it to the top
Source: Manzoni (2002), 2nd Conference on PM & MC
2. Strong self-confidence
3. Change offers opportunities
4. Together we will make it happen
5. Intensity in performance management

25. from idea to system

26. • Cultural control
The process in which organization members’ behavior is primarily influenced by
cultural systems (e.g., training, indoctrination).
• Boundary control
The process in which organization members’ behavior is primarily influenced by rules
and procedures which must be respected. (e.g., mission, code of conduct).
• Structural control
The process in which organization members’ behavior is primarily influenced by
structural systems (e.g., organizational structure, responsibility centers).
• Diagnostic control
The process in which organization members' behavior is influenced by formal
accounting and non-accounting control systems (e.g., budgets, performance
measurement systems).
• Interactive control
The process in which organization members' behavior is influenced by sharing
information, collective learning and challenging the status quo (e.g.; performance and
strategy review meetings)
The Nature of Management Control - Werner Bruggeman & Wim Van der Stede
Management control levers: let’s put them to good use!

27. Culture
Define, communicate & reinforce the
vision & values of the organization
Boundaries
Establish explicit rules which must be
respected, provide clarity and focus on
guidelines for strategy formulation
Structure
Make explicit roles, facilitate
coordination, create a context to
stimulate collaboration (both within &
across organizational boundaries)
Diagnostic control
Monitor organizational outcomes &
correct deviations from performance
targets
Interactive control
Focus attention and force dialogue &
learning throughout the organization
AS IS TO BE
Loose Tight
Loose Tight
Loose Tight
Loose Tight
Loose Tight
Loose Tight
Loose Tight
Loose Tight
Calibrating our levers for the future
Loose Tight Loose Tight

28. With 7 Practical implications
1. From hire to inspire
2. from control to engage
3. from drive to coordinate
4. from one-way to multi-way
5. from piecemeal to integrate
6. from plan to learn
7. from measure to manage

29. So let’s just do it

30. Thank you!
Lots of success in
recalibrating the system
and realizing your purpose !
Geert Scheipers
Academic Director Organizational Performance Management AMS
Partner Delaware Consulting
geert.scheipers@delawareconsulting.com