Identifying and Solving Performance Issues: Three Key Factors
Understanding the Root Causes of Performance Issues
Managing employee performance is one of the most complex tasks a leader faces, but the root of performance challenges can be distilled into three key areas: Knowledge, Capability, and Willingness. These are the pillars that either enable or hinder employee success. Identifying which of these is affecting performance is the first step in designing effective solutions that benefit both the employee and the organization.
1. Knowledge: Does the Employee Know What to Do?
Performance issues often arise from a lack of knowledge—either employees haven’t received adequate training, or they don’t fully understand their roles and responsibilities. Studies show that companies with comprehensive training programs can improve employee performance by as much as 20%. In contrast, insufficient training and lack of clear expectations can leave employees confused and unprepared to meet performance standards.
- Identifying Knowledge Gaps: If an employee’s performance is slipping, start by investigating their understanding of the role. Have they been trained effectively? Do they have access to the resources they need? One key indicator of a knowledge gap is repeated mistakes or an inability to follow basic procedures.
- Managing Knowledge Deficiency: Once you’ve identified the knowledge gap, offer tailored training, whether through workshops, online courses, or one-on-one coaching. It’s also crucial to ensure that communication about performance expectations is clear and ongoing.
Case Study: McDonald’s
McDonald’s is known for its robust training program, the Hamburger University. Employees who undergo this training program exhibit better performance and operational efficiency. The company’s focus on training has allowed it to thrive in a fast-paced, customer-driven environment. When employees fully understand their tasks and expectations, they are more likely to perform consistently and efficiently.
2. Capability: Does the Employee Have the Skills or Resources?
Capability refers to an individual’s actual ability to perform a task. Even if employees have the right knowledge, they may lack the physical or cognitive skills required to excel in their roles. The World Economic Forum has identified skill mismatches as one of the most significant factors affecting performance in global workplaces.
- Identifying Capability Issues: Leaders can evaluate this by assessing the employee’s output against the expected standards. For example, employees who understand their tasks but still fail to deliver quality work might be struggling with capability. This can be due to a variety of reasons, such as mismatched job responsibilities, lack of necessary tools, or even physical limitations.
- Managing Capability Limitations: Offer solutions that focus on building capacity. This might involve reassigning roles to align better with the employee’s strengths, offering on-the-job training, or providing more advanced tools and resources. In cases of cognitive or physical limitations, accommodations should be considered under frameworks like the Americans with Disabilities Act (ADA).
Case Study: Toyota’s Kaizen Methodology
At Toyota, the philosophy of continuous improvement (Kaizen) is deeply ingrained. When an employee encounters difficulty in their role, they don’t see it as a personal failure but as an opportunity to improve processes. This approach has allowed Toyota to continuously upskill its workforce, driving both individual and collective capability improvement. Toyota frequently shifts roles to align with an employee’s strengths, which in turn, optimizes overall performance.
3. Willingness: Does the Employee Want to Perform?
The third major factor in performance management is willingness. Even employees with the necessary knowledge and capabilities may underperform if they are not motivated or engaged. A Gallup study found that only 32% of U.S. employees feel engaged at work, and disengaged employees are 18% less productive than their engaged counterparts. Lack of motivation can stem from various sources: feeling undervalued, a toxic work environment, or unclear career progression.
- Identifying Willingness Issues: Look for signs of disengagement, such as absenteeism, lack of participation in meetings, or minimal enthusiasm for tasks. Conducting regular one-on-one feedback sessions can help uncover personal or professional challenges that may be affecting performance.
- Managing Willingness Challenges: To address a lack of willingness, leaders need to foster a supportive environment where employees feel valued. This may involve offering incentives, recognizing achievements, and creating clear paths for career growth. Sometimes, willingness issues may require addressing deeper problems, such as team dynamics or poor leadership.
Case Study: Google’s Project Aristotle
Google conducted a multi-year research study, Project Aristotle, to understand the dynamics of successful teams. One of their findings was that psychological safety—the belief that team members can speak up without fear of negative consequences—was critical to team performance. When employees felt safe, they were more motivated, engaged, and willing to go above and beyond in their roles. By promoting this environment, Google was able to significantly increase team performance across the company.
Conclusion: Diagnose First, Act Second
As a leader, tackling performance issues effectively means understanding whether the challenge lies in knowledge, capability, or willingness. Addressing these root causes enables targeted solutions that can drastically improve employee performance and engagement.
- For Knowledge: Invest in clear communication and continuous training.
- For Capability: Reassess role fit, provide the right tools, and consider skill development.
- For Willingness: Cultivate a culture of recognition, engagement, and motivation.
Taking a systematic approach to diagnosing performance issues will allow your team to thrive, improving both individual outcomes and overall organizational success.