For Norman Rice and his team, performance is about setting goals. But it’s also about celebrating the wins that result, both smaller and larger.
“The thing that we really galvanize around and motivate around is accomplishing a goal together,” says Rice, chief commercial officer of Extreme Networks, which makes networking hardware and software.
Whether it’s meeting a sales target or pulling off an acquisition, Extreme makes a point of acknowledging that performance. “We call people out, we recognize them from various parts of the organization,” says Rice, who leads more than 1,000 employees worldwide across the sales, services, and supply-chain teams. “And then when we get bigger wins, we roll those out monthly within our sales function, quarterly across the company.”
This year, Extreme—a Cisco challenger whose customers include FedEx, the NFL, and Volkswagen—went a step further. It launched the annual Impact Awards, which honor groups of up to 10 people for important projects. The five awards come with cash bonuses for each winning team.
“Sharing the accolades and the reward with others is paramount,” Rice tells me. “Because a lot of times, you create silos or friction between groups: ‘Oh, the sales guy got paid. What about me?’”
When it comes to measuring performance, Rice has a simple rule: “Set clear and concise goals.”
He does that with his direct reports during their annual review, which is just the start of tracking performance. Rice then integrates quarterly and annual goals with what he calls “two-by-twos.” Once a month, he meets with each direct report to ask a few key questions about what needs to happen in the next 30 days: “What are we doing? What do we need to focus on?”
They track progress from the previous month, making adjustments if necessary, Rice explains. “It’s constant encouragement and alignment with each other, in addition to normal one-on-ones or normal staff meetings.”
Once a quarter with his direct reports, Rice also takes stock of the employees they supervise by using the nine-box grid, a talent management tool that assesses people on performance versus potential: “I get to learn more about how they talk to and think about their team members.”
As a group, the leadership team does the same exercise to identify high-potential employees. “Simply having somebody on a box, I mean, it’s as silly as that,” Rice says. “But that measurement sparks the dialogue, and the dialogue is where you learn the most and you give each other constructive feedback.”
To help top talent grow and succeed, Extreme recently launched a 12-month program called Emerge. The program, which takes nominations and currently has 24 participants, aims to help entry-level employees develop their leadership and broader professional skills. Participants meet monthly with a mentor and attend development events, among other activities.
Honest communication and feedback about performance builds trust between employee and manager, but it must be continual, Rice stresses. “If it’s once a month or once a year, you’re not really building a rapport, and you don't really know the person very well,” he says. “But if you’re doing it pretty consistently, you know them well enough to be able to speak openly.”
Trust is foundational for Rice. “If you trust somebody, you’ll find a way to believe that there are things that are possible,” he says. “If you don’t, you’re going to find a way to believe that things aren’t possible.”
Which is no way to win.
Nick Rockel
nick.rockel@consultant.fortune.com
