to be a high-performing organization.

On one side, you've got your plans, big plans.

In those plans might be standard operating procedures,

target earnings, scripts, and checklists

for employees to follow.

Everything would go perfectly if everyone would just

stick to the plan, right?

Well, not unless your plans exist in a vacuum,

unaffected by outside factors.

These factors insist that we constantly

improve, innovate, and adapt.

Authors Lindsay McGregor and Neel Doshi

frame this discussion in terms of two types of performance.

There's tactical performance, or how well you

stick to your strategy, and adaptive performance,

or how effectively you diverge from your strategy

and create an environment where new, better ideas can grow.

There's a time and place for the tactical side.

Rigidly adhering to procedures is

important for achieving goals of consistency or scale.

But we aren't robots, and when we make our employees act

like them, it can backfire, making

them less likely to be creative and raise problems.

To succeed, McGregor and Doshi suggest

that companies build balanced cultures,

and this often means reducing the pressure

on tactical performance while finding ways to increase

adaptive performance.

For example, when you're setting performance metrics,

avoid linking them to high-stakes bonuses,

promotions, and firing decisions.

Employees and executives are often

less innovative if they're afraid of missing the mark.

Instead, use metrics and data to set learning goals

for better performance.

Try turning precise scripts and manuals into helpful guides.

This gives employees more ownership and freedom

to experiment and create new solutions.

Consider hosting regular problem-solving sessions

to encourage brainstorming and troubleshooting as a team.

If you can balance out these two competing priorities,

your customers, employees, and your bottom line

will notice the difference.

[BIRDS CHIRPING]