Redefining Performance: A Strategic Approach for Modern Leaders
Performance. A word we throw around often—performance reviews, high performance, performance management—but how often do we stop and define what it actually means?
In this episode of The Strategic Leader, we unpacked the messy but essential question: what do we really mean by performance? Here’s a strategic summary of our conversation, and the emerging best practices we believe can help leaders take a more holistic, meaningful approach.
Why "Performance" Needs Redefining
Many organisations tie performance directly to pay, bonuses, or promotions. But beneath that surface lies a deeper issue: there's rarely a shared understanding of what performance actually is. The absence of a consistent, strategic definition leads to misalignment, inequity, and missed opportunities for development.
The Four (Possibly Five) Dimensions of Performance
We’ve developed a simple but powerful model to rethink performance—one that moves beyond outdated ideas like presenteeism and visible effort.
1. Effort
Effort still matters—working hard, putting in the shift. But effort alone isn’t enough if it’s not directed or effective. High performance isn’t just about staying late or “tippy-tapping” at a keyboard; it’s about meaningful effort with purpose.
2. Behaviours
This speaks to how the work is done. Are individuals working in alignment with company values? Are they radiators or drains? This is where team spirit, culture, and leadership presence come into play—and it’s often overlooked in formal appraisals.
3. Skills
Functional and leadership skills must be viewed separately. It’s not just about knowing the tools; it’s about knowing when and how to use them. Growth in capability should be explicitly recognised and developed.
4. Outcomes
The most traditional view—did the individual or team meet their KPIs, OKRs or project goals? Outcomes are important, but they’re only part of the picture.
5. Impact (The Emerging Fifth Dimension)
Sometimes, one missed outcome carries more weight than several completed tasks. Impact considers strategic value—which actions actually moved the dial? It’s a powerful addition that helps separate activity from meaningful contribution.
Why This Matters for Rewards and Reviews
By disentangling these dimensions, we can better link each to appropriate recognition:
Effort and Behaviours: suited to recognition and cultural reinforcement.
Skills: better aligned with pay progression and career development.
Outcomes: ideal for bonus schemes.
Impact: potentially key for identifying leadership potential and business-critical contributions.
What Leaders Should Do Next
Stop using “performance” as a catch-all term. Instead, break it down and clarify expectations across each dimension.
Redesign your performance reviews to reflect these areas individually.
Separate pay, promotion, and reward decisions based on what’s actually being assessed.
Get curious. Encourage leaders to ask better questions, not just give stronger opinions.
Redefining performance isn’t about adding complexity, it’s about creating clarity.
Let’s ditch the comfort blankets of the past and adopt a more thoughtful, strategic, and human approach to performance in today’s world of work.