The Bible on Leadership by Lorin Woolfe

at the company.’’ She encourages people to keep their commitments,

but she also encourages them to let her know quickly if something may

interfere with the keeping of those commitments: ‘‘Whatever it is, I

expect it to be delivered . . . And I always tell them the bad news better

come out real fast. The faster we can figure out that something either

has changed or needs to change, the quicker we can reassess and get

going again.’’16

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THE BIBLE ON LEADERSHIP

We can hopefully assume that both Bartz’s daughter and her employ-

ees have improved their performance through this gentle yet direct style

of correction. While Bartz’s daughter’s grades remain unpublished, pre-

sumably protected information, the company’s results are very public:

$100 million net income on revenues of $820 million in 1999, the year

she was interviewed.

CONSEQUENCES

The third stage of performance management takes place after a task,

project, or year is complete. Although formal performance appraisals

tend to occur at the end of predetermined periods of time, the best

leaders are giving ongoing informal feedback in the form of positive and

negative consequences. Performance feedback should be timely, job-

relevant, goal-related, and attainable. It should also be communicated

in a way that makes the recipient feel motivated to improve, not pun-

ished for irrevocably ‘‘bad’’ behavior.

Timely, Fair Consequences

The Bible observed the need for timely correction of misdeeds almost

2,000 years ago: ‘‘When the sentence for a crime is not quickly carried

out, the hearts of the people are filled with schemes to do wrong.’’

(Eccles. 8:11) Not only are we giving the wrong message when we fail

to give quick negative consequences to an employee who has failed to

perform, we are also setting a bad example for the rest of the team.

Dan Tully, chairman emeritus of Merrill Lynch and Company, is a

strong modern proponent of swift, honest feedback and consequences

to match. ‘‘You must give people honest, candid feedback,’’ he notes.

‘‘You owe it to them so they can reach their full potential, and you owe

it to the people around them, the ones above and below them . . . If

the guy in the middle is a stiff, and I let him stay there and destroy the

people around him, shame on me.’’17

Part of the reason that John Akers’s time at the helm of IBM was so

Performance Management

121

rocky was the tradition of nonaccountability and entitlement that had

developed in the company. IBM had become a ‘‘jobs-for-life’’ company

where mediocre, unaggressive performance had become not just toler-

ated but often the norm. Performance feedback had become bland and

unconnected to future strategic actions the company needed to take. To

get discharged by IBM, you literally had to shoot someone or pilfer a

valuable piece of equipment in broad daylight.

This lack of consequences was having a severe effect on the com-

pany’s productivity and morale. In a 1991 interview with Fortune, Akers said, ‘‘We’ve been . . . not sufficiently demanding of ourselves regarding

those folks who aren’t doing the job. We have had a very low level

of separations for poor performance. That level will go up—must go

up.’’18

Unfortunately, the level of accountability was raised too little and too

late. At the time of Akers’s interview, IBM had already begun its first-

ever series of downsizings. In the process, it lost not just the poor per-

formers it was seeking to eliminate, but also some very good performers

who concluded they would be better off in another company where

consequences were tied more directly to performance. Those who

stayed went through a tough transition period, but under Lou Gerstner,

IBM has now become a company where ‘‘as you sow, so shall ye reap.’’

Most employees will accept negative consequences that are adminis-

tered fairly—in proportion to the offense—and justly, without favorit-

ism or vindictiveness. Jeremiah prayed for God to ‘‘correct me, Lord,

but only with justice—not in your anger.’’ (Jer. 10:24) This is the ear-

nest wish of so many modern employees who have been disciplined

with too little justice and too much anger. Such discipline actually un-

dermines the credibility of the leader.

Most employees wish for leaders who are capable of and willing to

carry out the words of Jeremiah 31:20: ‘‘I will discipline you, but only

with justice.’’

Two leaders who adhere to this philosophy are Bob Knowling, for-

merly of US West, and Gordon Bethune of Continental Airlines.

Knowling felt that in the phone company as it existed a few years ago,

performance was lagging because no one was held accountable and no

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THE BIBLE ON LEADERSHIP

one’s job was ever at risk. ‘‘It was demoralizing for the high performers,

degrading to the poor performers,’’ he observes. ‘‘Yet most poor per-

formers know they’re poor performers. If you’ve been honest in your

assessments of them and treated them fairly and respectfully, they usually

accept the fact that they have not made the grade.’’19

Gordon Bethune realized that one step in reviving the airline in 1995

was the removal of low-performing or nonperforming staff. This task

was understandably approached with some trepidation; if handled

poorly, the result would probably be lost productivity rather than the

productivity gains that were intended.

Bethune wanted to make sure that the consequences were applied

fairly and justly. The lowest performance rating at Continental is ‘‘4.’’

Says Bethune: ‘‘We simply asked all the 4’s to leave . . . Either they

weren’t doing well enough at their jobs . . . or because they weren’t

team players . . . And you know what? That final cut didn’t cause the

smallest amount of unhappiness or fear . . . in the ranks. ‘Jeez, they got

rid of Harry—that jerk should have been shot twenty years ago and

somebody finally did something.’ ’’20

The rank and file employees did not quote Ecclesiastes (‘‘When the

sentence for a crime is not quickly carried out, the hearts of the people

are filled with schemes to do wrong’’), but similar thoughts were proba-

bly on their minds.

But consequences applied too harshly by leaders can have as demoti-

vating an effect as lack of consequences. Rehoboam, son of Solomon

and successor to him on the throne, obviously did not possess his

father’s wisdom or judgment. This is the man who said, ‘‘My father

made your yoke heavy; I will make it even heavier. My father scourged

you with whips; I will scourge you with scorpions.’’ (2 Chron. 10) The

people understandably rebelled against a ‘‘CEO’’ who began his reign

with such a declaration of unreasonable harshness.

Another example of harsh consequences is that of three men—

Korah, Dathan, and Abiram—who dared to challenge Moses’ authority.

They felt that Moses had set himself too far above the rest of the people.

They also refused to come when Moses summoned them: ‘‘We will not

come! Isn’t it enough that you have brought us up out of a land flowing

Performance Management

123

with milk and honey to kill us in the desert? And now you want to lord

it over us? Moreover, you haven’t brought us into a land flowing with

milk and honey or given us an inheritance of fields and vineyards.’’

(Num. 16:12–14)

The consequence to these three men was swift, sure, and perhaps a

little too harsh for our modern tastes: ‘‘The ground under them split apart and the earth opened its mouth and swallowed them . . . They went

down alive into the grave with everything they owned; the earth closed

over them and they perished and were gone from the community.’’

(Num. 16:31–33)

This was definitely an example of Theory X management, Old Testa-

ment version. Lou Noto, vice chairman of Exxon Corporation, felt that

his company was also the victim of a culture that punished the slightest

attempt at innovation or risk. Goals were set artificially low because any-

one who didn’t meet a major objective was severely punished: ‘‘If you

couldn’t meet it, it was the end of the world,’’ observed Noto. ‘‘We want

to encourage the right kind of risk. To do that, we have to break this

ironclad rule that says if you don’t succeed, we’re going to put you in

front of a firing squad.’’21

Whatever you may feel about the punishment given to Korah, Da-

than, and Abiram, it is good to remember that even the most powerful

human leader is not God. Who are we to duplicate such severe punish-

ment? Today’s modern business leaders have to gauge very carefully

how they react to those who dissent or propose innovations to the

established order. The person who was ‘‘swallowed up’’ or exiled may

be the very person whose ideas could have gotten the organization out

of the morass.

In the Bible, some of the strongest negative consequences are actually

reserved for leaders who abuse their power and who fail to realize the

disastrous effect they have on their followers: ‘‘Weep and wail, you

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