The Performance Equation

Discover what's limiting your organisation's performance.

Most leaders sense which parts of the business are underperforming. Few can say exactly why. We help you pinpoint what's constraining each team, and the way to move it with the highest-return.

Four forces shape performance. When one is weak, it quietly holds back all the others. Our proprietary equation finds that one.

C

Capability

Can the team do the work?

M

Motivation

Is the team willing to do the work?

O

Opportunity

Does the system allow it?

S

Synergy

Does the team multiply or drag?

The problem

Every diagnostic you already run tells you part of the story.

What you have
What it tells you
What it leaves out
Engagement survey
How your people feel
Why performance varies between teams
Performance ratings
Who is contributing
Whether the system around them enables performance
Strategy and OKR review
Whether goals are being achieved
What is actually preventing them being achieved
Process audit
Where work flows poorly
How capability and motivation impact the way work flows through a process
The gap

No widely adopted diagnostic integrates capability, motivation, opportunity, synergy and decision-making at a team level. The Performance Equation is built to measure the whole picture, team by team.

The model

The equation focuses in. It doesn't average out.

A capable, motivated team trapped in a broken system does not come out as merely "average". Our model is built so a single weak force pulls the whole result down, which is why it surfaces a sharp finding instead of a flattering number.

01

Targeted and Specific

Strength in one area cannot paper over weakness in another. The model targets the key forces dragging performance down, so effort goes where it will actually move the result.

02

Per unit

Each business unit gets its own diagnosis as different teams in the same organisation usually have different binding constraints.

03

The binding constraint

The main factors that limit a unit the most. Identifying them precisely is the point of the work.

What you get

Two findings most diagnostics don't give you.

THE BINDING CONSTRAINTS, PER UNIT

A specific answer to "what do we fix first".

Every unit has a handful of things most limiting its performance, and it is typically different from one unit to the next. Same organisation, different diagnoses, different interventions.

"Marketing is most constrained by Opportunity: decision rights are clear on paper but are not experienced as workable."
"Engineering is most constrained by Synergy: meeting load is consuming the focus time the work requires."

The Decision Latency Score

A hard number for how long decisions actually take.

Decision latency is a leading indicator that degrades before revenue or satisfaction move. We measure it across operational, tactical and strategic decisions and surface the bottlenecks producing it.

The evidence base

Grounded in decades of organisational research.

Each component draws on established research traditions. We integrate them into one quantified diagnostic. We do not claim to have invented the underlying constructs.

Capability

  • Human capital theory
  • Organisational learning
  • Transactive memory systems

Motivation

  • Self-Determination Theory
  • Job Demands–Resources
  • Psychological safety

Opportunity

  • Sociotechnical systems
  • Decision-rights frameworks
  • Empowering leadership

Synergy

  • Team composition research
  • Process-loss theory
  • Task vs relationship conflict
A constraint you can measure is a constraint you can move. We find the ones holding performance back, and we show the evidence behind it.
PerformanceVP · we design and measure; your teams implement

A measurement-led practice, based in Melbourne.

PerformanceVP is built around a few core ideas: that organisational performance is multifactoral, unique to each business unit, and can be measured precisely enough to act on. The practice brings together years of practical experience driving business performance in organisations with decades of evidence based research shaping the instruments, process and outputs.

We work across Australia and New Zealand, with single teams and whole organisations, and we are deliberate about what we claim and clear about what we measure.

AUSTRALIA & NEW ZEALAND

Find your binding constraint.

Tell us about the units you want to understand. We will follow up to scope a diagnostic, with no obligation.

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