An Accurate Self-Assessment is Key to Leading Effectively

Do leaders often overestimate their abilities compared to what their actual results show? While it varies by person, my experience suggests that, generally, the answer is yes. I value objective measurements. Even if we can't measure everything directly, we can use assessments to highlight strengths and pinpoint areas needing improvement. Leadership isn't easy, but with proper skill development, leaders can perform better. The first step, however, is for them to assess their own performance accurately.

This issue came to light recently as I reviewed some leaders' self-assessments. Many rated themselves highly on a 10-point scale, which would make sense if their results were consistently above average. However, comparing their self-ratings to their actual outcomes showed a significant gap. For example, many leaders rated themselves as strong in selecting and developing talent, yet the anonymous staff surveys suggested otherwise. Even their senior level superiors often rated them higher than the actual results warranted. It's challenging for leaders to admit that a direct report lacks skills, as it reflects on their own leadership.

This discrepancy was further highlighted during some mid-year performance reviews. While these conversations aim at development, there were cases of individuals performing below expectations without any indication of issues in the notes. When faced with performance shortfalls, I ask two questions: 1) Does the person have the necessary desire to succeed in their role? 2) Can they develop the required skills? Most of the time, the challenge for underperformers lies in skill acquisition.

As someone who has worked with dozens of large recognizable organizations, I've observed that leaders generally have the desire to succeed. When they don't meet their goals, it's often because of a lack of accountability and investment in leadership development. Most organizations also have effective ways to measure outcomes, such as customer satisfaction, staff turnover, labor costs, sales, and resource management. These can serve as transparent performance indicators.

Here are some suggestions:

1. Clarify Expected Outcomes: Before focusing on skill development, ensure that the expected outcomes are clearly defined and measurable.
2. Identify Necessary Skills: Determine the skills a leader needs to achieve these outcomes. For example, if the goal is to improve employee retention within the first six months, identify the skills required for successful hiring and retention.
3. Document Current Results: Record the leader's current performance outcomes. Skipping this step can lead to inflated self-assessments despite not meeting targets. For instance, if a leader's team has a high turnover rate, they need to accurately assess their skills in staff retention. This data helps facilitate a more honest conversation with their leader.
4. Develop a Skill Development Plan: Based on the assessment, create a plan with timelines and milestones.
5. Keep Performance Metrics Visible: Regularly review these metrics. If performance is lacking, address it directly.
6. Consider using a 360 Degree Evaluation: 360-degree feedback is a comprehensive performance evaluation method that gathers input from an employee's supervisors, peers, subordinates, and sometimes clients. This approach can lead to more accurate and fair assessments, ultimately contributing to improved organizational effectiveness and employee engagement.
7. Leader Coaching is a Viable Tool: Leadership coaching is invaluable for enhancing leaders' self-awareness, decision-making, and interpersonal skills, enabling them to navigate complex challenges and drive organizational success. It fosters personal growth and resilience, equipping leaders with the tools and insights needed to inspire and empower their teams effectively.

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Some individuals may struggle to take ownership of their performance issues. However, many will use feedback constructively to improve their skills. When addressing subpar performance, there are three potential outcomes: 1) the person chooses to leave, 2) they improve and no longer underperform, or 3) they are let go. If we've followed the proper steps, the last outcome shouldn't come as a surprise, and the leader can feel confident they did their best to support the person.

I hope you find this helpful. The more accurately leaders can assess their performance, the more motivated they'll be to improve, benefiting the entire organization. Human Capital is here to help, lets connect!