Quarterly cultures
Alberto is truly desperate. He did not sleep well last night.
He has got a week to make his numbers before the Q closes. The team is under huge pressure as they are still 15 points below budget and, impregnated with a sense of deja vu, tactics have now entirely taken over the conversations about strategy. Now, with every successful customer interaction, Alberto moves one step closer to having the holidays he promised his family. Alberto is giving it all, reminding himself that he will be able to relax after this big push. But only until next Q […].
Incentivising performance in three-month chunks has become the norm for most. Having OKRs, KPIs and quarterly opening and closing rituals actually works, as they drive behaviours in a particular direction. So, what is the problem? The issue is that while everyone in an organisation is looking at short-term goals, not enough people are making long-term decisions. Short performance cycles distract organisations from delivering sustainable value, causing those looking for returns to increase their pressure. A self-fulfilling prophecy.
The culture of managing a business as an endless succession of continuous quarters is stressing for most. But it is investors and clients who get the shorter end of the stick. Maybe it is time to re-think how a high-performance culture should work.
Enjoy this amazing issue of Strategic HR Review. I hope it will inspire real action in your organisations.
Warmly,
Javier Bajer
Editor-in-Chief, Strategic HR Review
@javierbajer
