January 23, 2006
The Twin Engines of Performance
When my good friend Saad Allawi of Performance Logic called me several weeks ago, he asked my view of software that helps leaders 'see and manage' a portfolio of projects in their organization. Like most software, these applications are only as effective as the purposes and performance focus for which they are used. If the projects have activities instead of outcomes as goals, if the outcomes obsess solely about financial metrics instead of blending both the financial and non-financial, if confusion reigns about the difference between the team and single leader disciplines or if the software fails to put the projects in the context of the overall organization's vision, strategy and operations, then the odds go up the software will add to cost and 'busy-ness' and subtract from value and values instead of the reverse.
None of which was news to Saad. What may have surprised him a bit, however, was my contention that such software -- even when well used for purposes and performance -- falls short of it's full potential because it too often is limited to projects only. As Saad and I describe in our white paper, work -- and therefore the engines of performance -- in today's 21st century organization (in all three sectors of the economy) essentially bifurcates into two categories: projects (or discontinous, ad hoc efforts) versus process (or continous, repeatable effort). All organizations can be seen this way. And, leaders who connect performance to these twin engines put themselves and their organizations in a fair way to win in today's dynamic business environment.
Fifty years ago, nearly all work was stable, continuous and repeatable -- and it pretty much tracked with the organization chart. Today, in contrast, three major things have changed. First, even the stable, continous work is best seen as process instead of task or function because otherwise organization's run 'silo' risks. Second, the percentage of work that is project-based has rocketed. And, third, those who run their organizations strictly for financial ends seriously risk failing because all substantial challenges have both financial and non-financial aspects -- must, in other words, be conducted with a view to performance that measures success in terms of both value and values.