Barbara Buckett and Associates Barristors and Solicitors

trendz - our client newsletter

july 2005

discretionary effort – every employer wants it

Andrea Needham

Originally published in b-innovative, Auckland Chamber of Commerce professional journal, JUNE 2005.

Productivity, according to Websters, means 'yielding or furnishing results, benefits or profits', i.e. in business speak 'meeting financial and operational KPIs' (key performance indicators).

When boards and executives talk about increasing productivity, what they are really asking is ‘how do we get people to produce more?’ ‘how can we get people to do more than their jobs?’ ‘how can we energise people to give us their all? – i.e. bust their butts for us, for the organisation!’ What boards and executives are seeking is additional effort from each person - effort that is ‘over and above’ and/or ‘other than’ the dry, often rigid requirements of a job description that specifies tasks and responsibilities. Most individuals are willing to trade their additional efforts – at a price. It will not be given freely. The key word is ‘trade’ – what is in it for them?

This additional contribution or effort that employers are seeking is called ‘discretionary effort’ and involves seeking, acknowledging and reinforcing the behaviours that add the ‘x’ factor to any performance. Typically, programmes such as quality improvement, customer satisfaction, and performance-based and incentive remuneration, focus on specifying desired results and rewarding only those that are achieved. However, some organisations are beginning to recognize that behaviours as well as results may better impact and reflect the success of organisations, particularly in service roles. Identifying the required behaviours and then planning, communicating and reinforcing them is critical to improving leadership, team work and customer service. Success in each of these three areas is based on exhibiting the relevant right behaviours. Consistent application of the desired behaviours leads to achievement of results. The attitude exuded by an individual cannot be demanded – it can only be volunteered by the owner. Excellence in service level from a professional or a manager cannot be demanded – it can only be given when the owner decides that he/she wishes to step up to that level.

Discretionary effort - what is it? How does an organisation capture it? What do we need to do to entice individuals to trade their extra energy and time for the organisation? Discretionary effort is the difference between how well people actually perform and how well they are capable of performing.

Discretionary effort could represent a range of performance as broad as 20% to 40% above the performance actually realised by an organisation and could be directed toward improved output, results, quality, customer service, and safety. Consequently, discretionary effort represents an unmanaged and unrealised resource for successful as well as troubled organisations.

The term discretionary implies that this additional effort is wholly within the control of the employee and, to a large extent that is true. However, effectively capturing this additional level of effort and performance requires a truly collaborative effort between employees and the organisation. While this process can technically be called performance planning and management, in reality, it falls under the requirements of leadership - not management. Systems are managed; people are led. Leadership is a relationship – not a position – and as any healthy relationship is behaviour based, self-awareness and empathy become key components in the relationship’s success. Leaders need high levels of both.

To identify, reinforce and acknowledge healthy and needed behaviours, strong leaders will understand individual strengths and not be threatened by them; they will provide support for ongoing learning and not sabotage personal development progress; and they will provide coaching and facilitation that support the employee’s quest to do their job well and not bark or worse (possibly?), email orders and directives.

Leadership of a productive organisation is not for the faint hearted! It is hard work and should only be carried out by people who want to lead – not people who need a pay increase and want the title of manager. Strong leadership with all its key components – courage, vision, and ethics – and high productivity stem from the same place - a willingness to encourage and then enable employees to give their all.

Andrea Needham - consultant to management

Andrea has been a top human resource professional for almost thirty years. She began in London with the Hay Group and continued in Philadelphia and Southern California, initially with the Hay Group and then with her own business. She concentrated her efforts and knowledge on organisations undergoing major strategic and organisational change and has worked successfully with client firms in many different industries. Andrea has held the position of Head of Human Resources in four organisations in New Zealand and the United States where she has developed strategic programmes and lead change. Since returning to New Zealand in 1996, Andrea has worked in change leadership, human resources and general management, and consulting and facilitation roles with a variety of organisations.

If you would like to discuss any issues raised in this article, would like further advice or wish to get in touch with Andrea Needham, please contact us at Barbara Buckett and Associates or visit our discussion group.

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