Neel Doshi and Lindsay McGregor outline two types of performance in their book Primed to Perform:
- Tactical performance – ability to execute a plan effectively.
- Adaptive performance – ability to adjust your plan when circumstances change.
In “stable world” business situations, the fundamental question is “Are we executing a strategy which will enable us to reach our strategic goals over time?” In the “stable world” companies win by executing their business model better than competitors in the same markets.
Execution is always going to be important, therefore tactical performance is always significant.
The reality is that there are fewer and fewer “stable world” business situations going forward. As the “stable world” business model evaporates, you can beautifully execute yourself into the ground. Therefore adaptive performance in the face of evolving business models is increasingly important, too.
The authors identify 3 performance levers for adaptive performance:
- Play (do people enjoy the work?)
- Purpose (do people feel uniquely qualified to achieve outcomes?)
- Potential (are we collectively creating meaning and value?)
There are 2 traps to avoid. First, focusing so hard on execution that you miss the business model shifts. Second, discounting the important of execution to the point where competitors eat your breakfast and lunch, and prevent you from pivoting to eating dinner in a different business model.
