Adaptive Performance vs. Tactical Performance Why You Need Both

Carl Reichardt is one of those epic CEOs business authors love to write about.

In the late '80s, he famously led Wells Fargo through an historic cost-cutting exercise that delivered returns of 33.5% to shareholders, despite a massive real estate crash that put many of his competitors out of business.

Carl was ruthless. He froze executive pay raises, closed the private dining room and sold the corporate jet. His penny-pinching ways ultimately earned him the title of, "The Banker Who Would Be Scrooge".

"There's too much waste in banking. Getting rid of it takes tenacity, not brilliance," he proclaimed. It was a mantra that would go down in business history.

Which got us thinking…

What's the real difference between tenacity and brilliance? Can a business succeed with one and not the other?

What is the meaning of adaptive performance?

Definition and Importance of Adaptive Performance

Adaptive performance refers to an employee's capacity to adjust to and thrive within ever-changing work environments. This type of performance focuses on innovation, flexibility, and learning to effectively handle new challenges and unexpected developments. While traditional performance metrics often emphasize consistency and meeting established benchmarks, adaptive performance highlights the importance of employee creativity and responsiveness to new conditions.

The significance of adaptive performance cannot be overstated as businesses face increasingly dynamic markets and evolving technology. Organizations that prioritize fostering adaptive capabilities in their workforce are more likely to maintain competitiveness and achieve long-term sustainability.

Relation to Changing Environments and Stress Management

Adaptive performance is particularly relevant in today's fast-paced workspaces. When integrated into the workplace, this performance model helps teams better manage stress by equipping them with the skills necessary to navigate ambiguity and uncertainty. Employees who can adapt to shifting priorities and emergent challenges are often better equipped to handle stressors, resulting in improved overall well-being and productivity.

Moreover, through effective stress management, these employees tend to be more engaged and committed, ultimately contributing positively to organizational culture. As such, it's critical for Human Resource professionals to recognize the importance of adaptive skills development within performance management strategies.

Impact of Adaptive Performance on Organizational Success

Adaptive performance has a profound impact on organizational success. Companies that focus on developing this aspect within their workforce benefit from increased innovation, improved problem-solving capabilities, and enhanced resilience to market changes. By creating a culture that encourages adaptive performance, organizations can tap into their employees' potential to innovate processes, streamline operations, and even generate new business models.

Furthermore, fostering a strong adaptive performance culture provides a competitive edge, as organizations become more agile and responsive to external pressures. Incorporating adaptive performance as a key metric within your organization's performance management framework can facilitate sustained growth and drive the company towards excellence.

What is an example of adaptive performance?

Adaptive performance refers to an individual's ability to alter their approach and performance depending on the demands of a changing environment. This flexibility is crucial in the modern workplace where technology and market conditions are constantly evolving.

One compelling example of adaptive performance can be seen in a scenario where an employee identifies inefficiencies in a company's supply chain management. Instead of continuing with the established processes, the employee analyzes the data, proposes a new system that leverages cutting-edge inventory technology, and presents a well-thought-out plan to management. By doing so, the employee not only showcases innovative problem-solving but also enhances operational efficiency, driving positive organizational change.

Another illustration might involve an employee in a high-pressure situation where customer demands surge unexpectedly. By effectively managing resources, taking fast decisions, and allocating tasks wisely, the employee helps manage the crisis without compromising customer satisfaction or service levels. This instance of adaptive performance not only showcases the employee's ability to cope with stress but also acts as a catalyst for the team to adopt new, more efficient practices.

Lastly, adaptive performance is a vital contributor to positive change within organizations. Through adaptability, employees can implement innovative practices, improve existing processes, and foster a culture of continuous improvement. These contributions help organizations stay competitive and agile in rapidly changing markets, affirming the irreplaceable value of adaptive performance.

What is an example of adaptive task performance?

Defining Adaptive Task Performance

Adaptive task performance refers to an employee's ability to modify their behavior and processes in response to fluctuating demands and unexpected changes in the workplace. This type of performance is crucial for navigating the complexities of modern work environments, where change is constant and challenges are unpredictable. Employees demonstrating strong adaptive task performance possess exceptional problem-solving skills, flexibility, and resilience, enabling them to maintain high efficiency and effectiveness, regardless of the circumstances.

Examples in Everyday Job Roles and Responsibilities

In reality, adaptive task performance can manifest in various job roles and responsibilities across different industries. Consider a customer service representative who must handle an influx of complaints about a new product release. Instead of strictly adhering to the script, they might prioritize the most urgent issues, devise temporary solutions, and liaise with other departments to ensure a prompt resolution. Another example is a project manager in a tech company adapting to a significant hardware malfunction by quickly reallocating resources and personnel to mitigate the disruption's impact on project deadlines.

Benefits of Improving Adaptive Task Performance

Enhancing adaptive task performance in employees can lead to significant benefits for both individuals and organizations. Employees who develop this skill are better equipped to handle stress, make informed decisions, and implement innovative solutions to emerging issues. For organizations, fostering adaptive task performance means cultivating a workforce that can thrive in dynamic environments, leading to increased productivity and a competitive edge. Implementing strategies such as continuous learning opportunities, encouraging creativity, and using performance management tools like PerformYard can help organizations enhance adaptive task performance and achieve greater success.

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The Two Types of Employee Performance

Lindsay McGregor and Neel Doshi are co-authors of Primed to Perform: How to Build the Highest Performing Cultures Through the Science of Total Motivation.

In researching for their book, Lindsay and Neel asked 2,823 US-based employees whether they have the ability to find new ways of working. Only 27% said yes.

That's because the vast majority of businesses only measure an employee's tactical performance. That is, the steps, process and standard operating procedures that can be easily tracked from one day to the next. Number of widgets produced per hour is the classical example of a tactical performance metric that can be found in almost every business system.

The ability to consistently complete these tasks to a highly efficient degree is what constitutes a company's "tenacity". So it follows that this is how most employees should be measured.

But there's another type of performance that often gets overlooked.

Adaptive performance is an employee's ability to innovate a better process, standard or SOP. When an employee comes up with an idea for how to shorten the number of steps in the assembly line, or veer off-script to creatively upsell a client — that's adaptive performance in action. Some might even call it brilliance.

In the words of Lindsay and Neel, "Essentially, tactical performance is how well you stick to your plan, and adaptive performance is how well you diverge from your plan."

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Why You Need Both

Carl Reichardt's cost-cutting crusade was clear, consistent and easily measured.

Its success was largely due to executing simple ideas.

Before Carl, Wells Fargo had exuberant culture that would have surely led to its demise. The Scrooge CEO rolled up his sleeves, did the simple things with tenacity and saved the company in the process.

Many employees don't have the luxury of CEO-level autonomy.

That's why it's important to consistently encourage (and measure) both an employee's tactical and adaptive impact on the business.

(In an ironic twist, Wells Fargo's overemphasis on tactical goals may have been part of what led to its recent account fraud scandal.)

A balance of tactical and adaptive performance is what helps even the scales between goals and expectations so employees don't feel pressured to compromise the business values (or their own morals) just to hit a target.

Striking the Balance

Tactical and adaptive performance are the yin and yang of every high-performance business.

In order to free up your employees to innovate new efficiencies, you must protect their time. That means delivering the tactical performance structures that help them produce quality work faster so that they have time and energy to think creatively about how to do things better.

To strike that balance, spend some time thinking about which specific aspects of an individual's role absolutely must be measured on the tactical level versus those that can be opened up to adaptive performance.

For example, could you grant your new business team the autonomy to spend up to X amount of money in discounts, refunds or gifts without manager approval? How does this affect your NPS score and close rates?

Look beyond the non-negotiables to identify clear places where employees can act autonomously. Then focus on the impact their adaptive performance has made on the organization. And if you're ever in doubt, simply sit down with your team and ask for their ideas.

Here are some questions to think about:

• What rules, processes or guidelines could be improved?
• How can we increase the department's productivity?
• What are your ideas for how we can do X better or faster?
• What have you learned or noticed since last year/quarter/meeting?

Build the balance into your culture by making these sit-downs routine. Next time the proverbial "stuff" hits the fan, you'll be glad you did.