In a review of 200 organizations, McKinsey researchers found that the highest performing organizations have systems of unique and individualized rewards for their high achievers, coupled with swift and oftentimes visible punishment for low performers. Usually, low performers who can't seem to come up to speed will choose to leave rather than face the embarrassment of failure. High performers, meanwhile, seem to thrive on the immediacy of the feedback and recognition they're receiving. This pattern, Strickland notes, applies to all organizations-from major corporations to nonprofit, healthcare and educational organizations. An important aspect of the transparency approach is a company's commitment to letting employees routinely know how they're doing.
Success is all about feedback, feedback and feedback .
You can't run mechanical systems without it, and you can't run organizations without it either. Using the intranet creatively, for instance, is one way to let employees at all levels find out how their units, as well as others', are performing and to encourage brainstorming for greater results. It's been said that being a manager is tantamount to practicing psychiatry without a license. It's also true that managing is like parenting. When managers and coaches are heavy on the support but squeamish about expectations and feedback, performance suffers.