How much of last quarter's result was produced by the operating model, and how much by people compensating for it?
The subsidy nobody accounts for
Most organisations have a handful of individuals who make the system work: the person who knows how to get a decision unblocked, the manager who quietly absorbs a broken handover, the team that reworks the same report every month because two systems disagree. Their effort does not appear as a cost. It appears as performance.
The subsidy is invisible until it stops — when the person leaves, or the volume rises, or a transformation removes the informal workaround without noticing it existed. The performance drop that follows is then attributed to the change rather than to the dependency it exposed.
Measuring outputs, managing conditions
Performance management systems overwhelmingly measure individual output while the conditions producing that output are set elsewhere: workload distribution, clarity of priorities, quality of information, decision latency, the number of competing initiatives. Rating people on results they only partly control produces accurate-looking data about the wrong variable.
This is not an argument against accountability. It is an argument for locating it correctly. If four people in the same role underperform, the role is the finding.
Attention is the scarce resource
Many organisations are not short of capability; they are short of attention. Priorities accumulate faster than they are retired, and the organisation resolves the overload informally by deciding, locally and invisibly, what to ignore. Leaders then find that the strategy is being implemented selectively by people who were never asked to choose.
Retiring initiatives is therefore a performance intervention. So is limiting the number of changes any one population absorbs at once.
Sustained performance is a design outcome
Gallup's long-running workplace research continues to report low levels of engagement globally, alongside a substantial manager effect on team-level variance (Gallup, 2024). Read as a design signal rather than a motivational one, it suggests that much of what is described as an engagement problem is a set of conditions: unclear priorities, insufficient decision latitude, and managers carrying spans of control that make good management arithmetically impossible.
Practical implications for leaders
- Identify where results currently depend on individual compensation for design gaps.
- Review span of control before reviewing manager capability.
- Retire initiatives deliberately; overload is resolved informally if it is not resolved formally.
- When several people in the same role struggle, examine the role.
Performance that depends on heroics is a form of borrowing. It works until the moment the organisation needs those same people for something new — which is usually the moment it decides to transform.
Sources
- Gallup — State of the Global Workplace, 2024
- Deloitte — Global Human Capital Trends — UK findings, 2026
- McKinsey & Company — Losing from day one: Why even successful transformations fall short, 2021
