Building bridges between the seasons
I just love the different seasons and appreciating what each of them has to offer. In the winter, I enjoy going to the mountains and being surrounded by that particular smell of pine trees, or just taking the time to catch up on books and some indoor activities. On the other hand, I love playing volleyball on the beach and taking a refreshing swim in the salty Barcelona sea in the summer. Each season has its own special charm and we learn to make the most of it because we know they come to an end. But what about seasons in companies?
I strongly believe that seasons prevent us from achieving our very best when it comes to the workplace. They’re disruptive. You may be wondering what I mean by “company seasons”. So am I! I’m talking about those repetitive, cyclical company events that happen at a specific time of the year, generating disruption.
Two of the most common seasonal events I see are the Yearly Budget and the Yearly Performance Assessment. Let’s take a look at them separately.
Most companies start doing their budget planning months before the fiscal year ends. Depending on the company, this process could be smooth or challenging as they need to reach agreements and make key decisions, such as where and how much to invest in each area or project. As you can imagine, the budget becomes a whole season, and it is not a trivial process.
During budget season, the teams’ and (h.) managers’ capacity is focused on getting the budget approved so the areas can organise themselves to achieve their goals. This process requires negotiation, communication, and agreements with areas across the company. As so much effort is needed, this process takes the effort away from and disrupts everyday work capacity, fills up the agenda and is always top of people’s minds until the budget is approved.
This process takes between 1 to 2 months every year, and each time the company will experience its impact. Perhaps there are some ways to optimize this, but maybe it’s time to do a complete game-changer instead.
An agile rolling budget can be a good way to get rid of company seasons. With this type of budget, firms review their objectives and investments on a monthly basis within a 12-month horizon, always looking ahead. One of the advantages is that they always have a vision of the next 12 months, no matter if they’re at the start or the end of the fiscal year.
This can be challenging, as it requires being ready to make changes in the company’s direction at any point in time. Some companies feel more comfortable with the yearly budget plan, as they consider it an opportunity to refocus and rethink the investments across areas. But what if we have that same conversation regularly?
Another important season is the yearly performance assessment when each (h.) manager defines and agrees on the level of achievement for each member of the team. In some companies, this takes place 2 times a year, while at others it’s only at the end of the year. This is important, as many companies are invested in growing and increasing people skills by boosting their passions. To monitor this, they may use numerical scales, analyze individual KPIs, use graphic rating scales, look at 360-degree ratings, and so on.
One of the drivers behind this culture is for (h.) managers to give frequent feedback. Frequent feedback provides a unique opportunity for everyone to grow together.
Sometimes, these feedback sessions can have a different shape and form from the yearly performance review. This creates an opportunity to have a conversation beyond numbers and processes. At the end of the year, the big performance analysis begins to assess performance across all the areas.
As you might already be thinking, this season has an impact on every (h.) manager at every level of the organization.
When thinking about reducing the seasonal impact of performance assessments, what if we used the same method as with the budget — spreading it across the year in less disruptive and more frequent sessions? The frequency of the feedback doesn’t matter, but we should ensure we do it consistently throughout the year. With this approach, yearly performance takes on a rhythm of its own, which reduces the seasonality impact.
Take the opportunity to think about what seasons your company has and what effect they might have. What could you transform from disruptive seasons into processes with a continuous cadence? Which activities make sense to do more frequently to spread out the effort? Which activities may provide more value and help us make decisions regularly?
As I always say, each company is a unique ecosystem and as a living organism, it can find the next step to evolve.
May your summer be fun (and safe)!
Thank you note: To Monica for your invaluable insights for this article.
Note: (h.): When we use role names, we sometimes separate ourselves from the human being behind the title. In this simplification, we lose the opportunity to embrace all the creativity, experiences, contradictions and potential of each person performing a role in a company.
