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Discover how understanding and leveraging DNA insights can drive sustainable performance within your organization.
Many companies today are under immense pressure to find the key to sustaining high performance. CEO tenures reflect these challenges. According to Russell Reynolds Associates, the average CEO tenure was 8.1 years in 2023, down from 7.6 years in 2013 and 7.2 years in 2022. S&P 500 CEOs saw their median tenure drop from six years in 2013 to 4.8 years in 2022. These shifts highlight the impact of past strategies, company culture, and understanding and meeting client needs.
So, what drives sustained performance for individuals and companies?
We believe the answer lies in leadership, starting with the CEO, and extending to every employee.
Since DNA Behavior was founded in 2001, we've encountered many individuals whose talents were underutilised and who were disengaged from their companies.
The Performance Problem: Lack of Emotional Engagement
Gallup's 2009 research showed the economic impact of emotional engagement on both employees and clients. Our 2023 booklet, Building a People-Centric Organisation, provides updated research supporting Gallup’s findings.
Many leaders should be concerned about the ongoing decline in workforce engagement. Gallup's 2023 research shows that only 23% of employees are engaged at work, with non-engaged and actively disengaged levels rising.
Emotional engagement of employees and clients is crucial for sustainable performance. Despite investing in programs like Six Sigma, Total Cost Management, and Business Excellence, companies haven't reversed this trend over the past twenty years. These programs often miss the core issue: the emotional engagement of people. While effective for mechanical processes, they fail to address the human element essential for true engagement.
To achieve sustainable performance, we must shift our mindset from short-term decision-making to what motivates and sustains organizational performance. Many short-term decisions boost immediate performance but undermine long-term value by disengaging employees and clients.
Efforts to measure client satisfaction often fail to predict future loyalty or buying intentions. For example, a CEO noted that despite high client satisfaction ratings (over 90%), their client turnover was nearly 30%. Client satisfaction measures rational factors like confidence and basic performance, but not future intentions. True client loyalty comes from trust, engagement, integrity, and passion.
A consultant observed a manufacturing plant where 15 out of 28 workstations did not follow the designed processes. Operators had various reasons for modifying the processes, such as efficiency, safety improvements, or lack of knowledge. By engaging with operators and adjusting processes, engagement levels rose. This highlights that improvement often lies within, and listening to employees can lead to better outcomes.
While systems like Six Sigma bring needed discipline, they alone cannot sustain business performance. Addressing the human element is essential. This involves understanding:
- Individual talents
- Skills brought to the table
- Experiences shared
- Levels of emotional engagement
- Confidence in performing roles
- Displayed character
At DNA Behavior, we've focused on sustainable performance for over 20 years. We emphasize four pillars:
- Knowing yourself
- Leaders knowing employees
- Employees knowing clients
- The business knowing its external stakeholders (suppliers, partners, shareholders, etc.)
Sustainable Performance Measurement
To help us understand Sustainable Performance we have developed the following equation which provides relative measurement on a population weighted basis:
BTA – Behavioral Talent Alignment
This element identifies how well a person’s natural talents and strengths match the requirements of a role. Better alignment means the individual will perform more naturally and spend less time on tasks outside their talent base, reducing stress and disengagement. It includes:
- Passion
- X-Factor
- Vision
- Mission
- Values
- Purpose
- Identity
S – Skills
Skills enhance or diminish role and company performance. Skills develop over time, and each role requires a specific skill level for effective performance.
Ex – Experience
Experience in a similar or related field enhances a role. It allows quick settling in, timely decision-making, and application of past knowledge and wisdom.
These elements are part of a person’s ‘personal toolkit’ but do not solely determine sustainability.
EE – Emotional Engagement
Emotional engagement can greatly influence performance. It involves:
- Clear expectations and necessary resources
- Recognition, respect, and care
- Feeling listened to, trusted, and empowered
- Strong sense of purpose
- Belonging within the team or company
- Alignment of personal and company values
- Opportunities for growth and contribution
- Job health
Gallup's 2009 research shows a 240% improvement in revenue and profit when both employees and clients are engaged. Engaging either can produce a 70% uplift, but engaging both simultaneously leads to the highest increase.
Measuring Sustainable Performance
To measure sustainable performance, we apply a 2.4x uplift factor to the Emotional Engagement (EE) score, reflecting its impact on performance.
Ch – Character
Character is the daily experience someone leaves you with, driven by their values, beliefs, ethics, and morals. It's crucial for sustainable performance but often only discussed when issues arise, as seen in cases like Enron and Lehman Brothers.
Co – Confidence
Confidence impacts performance by reflecting an individual’s trust in their abilities. High confidence inspires others, while low confidence raises doubts. Confidence is distinct from Emotional Engagement; someone can feel appreciated but still doubt their ability to perform a role, especially if new to it.
Financial Behavior
While not directly measured, financial behavior influences decisions and impacts character and confidence. Positive financial attitudes fuel performance, while negative behaviors create stress and fear, reducing performance.
Unpacking the Sustainable Performance Formula
We believe the Sustainable Performance Equation is a leading indicator for businesses. It can be measured at individual, team, division, or company levels.
Behavioral Talent Alignment (BTA)
To measure BTA, we assess the natural talents required for a role using the DNA Natural Behavior Discovery Process (Work Talents – Business DNA®). For example, a planning analyst role requires independence, effective communication, logical thinking, task focus, objectivity, accuracy with numbers, skepticism, determination, and a balanced approach to risk. These elements are benchmarked on a continuum from 20-80 to reflect the appropriate range of talents and behaviors.
By measuring these components, businesses can better understand and enhance sustainable performance at all levels.
Measuring Sustainable Performance
We apply a 2.4x uplift factor to the Emotional Engagement (EE) score to reflect its impact on performance.
Behavioral Talent Alignment (BTA)
Barry Fields' BTA is assessed by comparing his scores against benchmarks. For any primary talent factors outside the benchmark, we deduct 3 points, and for secondary factors, 2 points. Barry’s BTA is 14 points out of 33, resulting in a factor score of 0.14. His BTA indicates a propensity to take charge and debate outcomes, but may lack organization and openness to new ideas.
Skills and Experience
These are subjectively assessed. Barry’s prior analytical roles and requisite skills give him a score of 0.333 for both Skills and Experience.
Emotional Engagement
Measured using feedback from the Leadership Performance Discovery results, engagement scores above 4 out of 7 generate multipliers. For example, a score of 7 results in an ‘x’ factor of 1.7 for clients and up to 2.4 for employees.
Character
Assumed to align with company values unless a flaw is noted, which reduces the performance score by 50% for management and 25% for staff.
Confidence
Scored based on baseline confidence, adjusted by 10 basis points above or below the baseline (1.1 or 0.9).
Aggregating Performance Scores
These scores can be aggregated for individuals, teams, divisions, and the company. Regular trend analysis, ideally every six months, helps address specific issues.
Sustainable Performance Processes
DNA Behavior has developed discovery processes for sustainable performance:
- DNA Leadership Performance
- DNA Employee Performance
- DNA Sales Performance
- DNA Advisor Performance
- DNA Organizational Energy
- DNA Entrepreneurship Performance
For life development:
- DNA Quality Life Performance
- DNA Quality Life Goals Discovery
- DNA Quality Life Planning Discovery
- DNA Money Energy Discovery
- DNA Family Continuity Discovery
- DNA Quantum Leap Capacity Discovery
Complete these processes at: DNA Sustainable Performance Processes
Additional Resources
Explore topics like:
- Behavior Drives Performance
- Organizational Culture
- Building a Client-Centered Business
- Leadership Financial Impact
- Behavioral Marketing
- Hiring Performance
- Mastering Entrepreneurial Talents
- Blind-Spots in Financial Advice
- Navigating Family Dynamics
Access articles, white papers, and videos at DNA Behavior and the DNA Knowledge Center.
Author:
Hugh Massie, Executive Chairman and Founder, Behavioral Solutions Architect
To learn more about DNA Behavior International and the solutions we offer, please visit the following website: www.dnabehavior.com
If you have any questions or matters in relation to Sustainable Performance that you would like to discuss with an executive on our team, please email us at: dnacare@dnabehavior.com
For more information, you may also check the Booklet below: