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Beyond KPIs: How Performance Data Can Inform Empathetic Leadership

KELLI PARKER/THE WALL STREET JOURNAL

This week's newsletter is authored by Yogita Patel. Alexandra Levit will return to The Workplace Report next week with the first of a two-part series on HR technology.

Welcome back. The employee performance review process, while meant to be a constructive space to discuss goals and achievement, is often met with dread by managers and their subordinates alike. And people team leaders face added burdens from ensuring everyone in the organization participates to overseeing the platforms used to manage the review, all while conducting appraisals of their own teams.

Still, done the right way, performance and goal-setting conversations can produce invaluable insights to help managers lead with more compassion and cultivate talent that might otherwise be overlooked.

The Covid-19 pandemic spurred a trend toward more empathetic leadership and honest communication among workers and their bosses. This has created an opportunity for organizations to rethink how they approach performance reviews, according to research firm Gartner Inc., which predicts changes such as a greater focus on personal goals, ratings that reflect more empathy, and greater automation of the feedback and development process. 

Apex, N.C.-based performance-management company Caarmo Inc. offers weekly snapshots of employee behaviorial performance based on a variety of metrics. CEO Vinay Raman, however, suggests data is just a jumping off point “to asking compassionate questions.”

"People talk about KPIs [key performance indicators] and metrics all the time, but humans are so much more complex than one single number,” Mr. Raman said.

PHOTO: TAMMY LIAN AND JAKE ZUKE

Mr. Raman spoke to The Workplace Report about the pitfalls of focusing company culture on top performers, how data can help minimize bias and finding the “latent superheroes” among existing talent. The conversation has been condensed and edited for clarity.

WSJ Pro: Why is data important to performance management?

Mr. Raman: There’s a phrase I’ve been using a lot: Humans are creatures of habit; data shows you the habit, therefore data has a window into the human soul.

How do they [employees] feel emotionally? How do they feel technically, in terms of competency and mastery? How are they actually producing? Do they feel respected in the organization? We can measure all that stuff. If you can go to each one of those people and see how individually they show up everyday and what their individual needs are, and it changes moment by moment as they operate throughout the day, you can go to them and say, “Let me coach you to a better place; let me invite you to a better outcome for what you’re doing as an individual.” It now gives you this ability to individually train, individually coach people to their best ability.

WSJ Pro: How can data help minimize bias in talent management?

Mr. Raman: You start to see what the superhero traits and capabilities of people are, because the bias has always been, “I’m going to put algorithms in place to tell me what KPIs are important.” When you decide these five KPIs are important, the KPIs that someone else is excelling at don’t even show up on the list.

When we take this data, they start seeing stuff that they’ve never looked at before–we call them empathy graphs. And as these things start coming [together] based on real, objective data, that is just what has been performed, they start finding that people have capabilities that aren’t pulling to the top at all. Then they [leaders] start to ask, “Why is this happening?”

WSJ Pro: Having the data is one thing, how can leaders act on it appropriately?

Mr. Raman: [With data, leaders] start confirming suspicions that they may have already that they couldn’t prove, and they start seeing things they’ve never seen before and they start asking, “Well what happened here?”

You start to see people who are less effective in certain areas and people who are more effective. So the question starts becoming, “Where do you want to focus your time and attention? Do you want to focus on lifting the bottom up or making more room at the top?” It usually ends up becoming more of a philosophical question that the leader or leaders have to opt into as to what do they want to fix. 

WSJ Pro: Why should leaders focus on the workers who might not be stars or rising stars? What are the pitfalls to focusing talent development on high performers?

Mr. Raman: There are plenty of people who are good performers in the company that are actually a cancer within the company, because they treat everyone else with complete condescension and disdain. But they keep delivering and the company keeps them on board. At some point everyone else says, “This whole idea of caring for others, I don’t give a flying flip about anybody else, I’m here to do my job.” Those are toxic cultures at the end of the day. You focus on one dimension and say, “That’s it.” When people just focus on the stars, they are making very short-sighted decisions. And it’s not sustainable over time because you start to seriously hamper the other talent, the diversity that could actually increase the overall productivity of that organization. You can’t have all Michael Jordans, you need to have Scottie Pippens too. Are you focusing on building your Bs into As and Cs into Bs? By laws of averages, that is where most of the people are.

Continued Below: Beating Burnout; Austin Workers Are Back in the Office

 
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How to Beat Burnout With Career Coach Rachel Montañez

THE WALL STREET JOURNAL

🎥 WATCH: Burnout and career coach Rachel Montañez talks to WSJ Reporter Ray A. Smith about how to identify your personal and professional stressors that can lead to burnout and and how to make changes successfully.

 

Austin's Workforce Is Back in the Office

These days, Austin's workforce is putting in more face time at offices than those in any other major U.S. metro area.

Austin offices, not including the thousands of government workers in the state capital, are 59%-occupied—and cracked the 60% threshold last month—according to data from Kastle Systems. 

Austin was at the forefront of pioneering part-remote work before the pandemic. PHOTO: ALEX SCOTT FOR THE WALL STREET JOURNAL

Tech-adjacent roles: While Austin has cracked the code on luring workers back in, its success has less to do with office perks such as ping-pong tables and free meals than some employers might hope. The city’s hiring boom over the past decade has drawn young professionals who work in tech-adjacent roles, such as sales, marketing and business development. Finance professionals and tech’s corporate workers might be more likely than coders to find themselves in an office.

Hybrid work pioneer: Austin was at the forefront of pioneering part-remote work before the pandemic, said Laura Huffman, chief executive of the Austin Chamber of Commerce. The prepandemic work norm for many Austin workers involved splitting time between home and the office. “In a lot of places, companies are having to create brand new policies around flexible work schedules. Many of our companies already have them,” she said.

A sense of normalcy: “It’s a good way to get out there and meet people,” said Rohit Ravichandran, a 27-year-old cybersecurity worker.

Mr. Ravichandran moved to Austin in July and has been going into the office five days a week for the past few months even though his company has a flexible work policy. In-office meetings and lunches with co-workers have made the 9-to-5 this year feel “as close to normal as possible,” he said.

 

What Else We Are Reading

California Four-Day Workweek Bill Is Shelved for Now (WSJ)

Improving Employee Performance During Remote Work (Forbes)

The Best Questions to Ask (and Answer) in Performance Reviews (Time)

Five Traits of the Workforce of the Future (MIT Sloan)

 

About Us

Alexandra Levit is a business and workplace author and speaker. She is the weekly columnist anchoring The Workplace Report. Yogita Patel curated and edited this newsletter.

✍️ Feedback on this newsletter? We would love to hear from you, so please get in touch. And be sure to visit us at The WORKPLACE REPORT

 
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