- MGMT Playbook
- Posts
- Effort vs Outcomes: A Practical Guide For Measuring and Rewarding Results
Effort vs Outcomes: A Practical Guide For Measuring and Rewarding Results
Your hardest-working employee might be your biggest problem. Here's how to reward results, not just effort.
Read Time: 4 minutes.
The Effort Trap That's Holding Back Your Team
Scene One: Your star employee works 60-hour weeks, responds to emails at midnight, never misses a meeting. But their projects consistently miss deadlines and deliverables fall short.
Scene Two: Your top salesperson works 30 hours a week but consistently lands giant contracts and beats targets by 150%.
Which one do you reward?
Most leaders want to say outcomes matter most. But they struggle to look past visible effort.
Here's the uncomfortable truth: Effort without results is just expensive activity.
The Century-Old Habit We Need to Break
We've been measuring hours for over 100 years. Factory work required physical presence. Knowledge work doesn't.
But we're still managing like it's 1920:
Tracking when people arrive and leave
Counting emails sent and meetings attended
Rewarding "hard workers" regardless of results
Promoting based on face time, not impact
The shift: From time-based to outcome-based thinking.
Our Next Free Workshop
Stop Reinforcing These Effort-Based Practices
The "Early Bird" Praise
Stop celebrating who gets to the office first.
Start celebrating who solves problems fastest.
The "Always Available" Reward
Stop promoting people who answer emails at midnight.
Start promoting people who prevent midnight emergencies.
The "Meeting Champion" Recognition
Stop praising perfect meeting attendance.
Start praising people who eliminate unnecessary meetings.
The "Busy = Important" Award
Stop assuming overwhelmed people are your best performers.
Starting realizing they might be your least efficient.
Getting Your Team to Buy In
The Conversation Framework:
Start with their frustration:
"What's the most frustrating part of your current workload?"
Listen for: "I work really hard but don't feel like I'm making progress"
Connect to their goals:
"What would you rather be judged on: How many hours you work or the impact you create?"
Most people want to be valued for results, not just effort
Address the fear:
"I know this feels risky. What if you have a bad week? We'll look at patterns over time, not daily fluctuations. And we'll help you succeed, not catch you failing."
Make it concrete:
"Instead of tracking your hours, we'll track [specific outcome]. You'll have complete flexibility in how you achieve it."
Getting Your Boss to Buy In
Frame the problem:
"We're losing our best people because they're frustrated carrying underperformers who look busy but don't deliver."
Show the cost:
"Our top performer in sales works 30 hours a week and generates $2M annually. Our 'hardest worker' puts in 60 hours and generates $800K. We're rewarding the wrong behavior."
Propose the test:
"Let me try outcome-based management with my team for 90 days. I'll track both effort and results so we can compare."
Address their concerns:
"How do we know people are working?"
"We'll know because they're delivering results. If results drop, we investigate. But we focus on output, not input."
"What about fairness?"
"It's more fair to judge people on their contribution than their hours. High performers shouldn't subsidize low performers."
"What if people abuse the flexibility?"
"Some might. But our best people will thrive, and that's who we want to keep."
Practical Outcome Definitions
Software Development:
Deploy feature X by date Y with Z performance criteria
Reduce bug reports by 50% this quarter
Complete code reviews within 24 hours
Sales:
Generate $500K qualified pipeline monthly
Close 25% of qualified opportunities
Maintain 90%+ customer satisfaction post-sale
Customer Service:
Resolve 90% of issues on first contact
Maintain 4.5+ satisfaction rating
Reduce escalations by 30%
Make Their Goal SMART-R: Specific, Measurable, Actionable, Realistic and Time-bound, but always grounded real Results.
Handling the Transition
Week 1: Set Clear Expectations
"Starting Monday, success means [specific outcome] by [specific date]. How you achieve it is up to you."
Week 2-4: Support, Don't Monitor
Check in on obstacles, not hours. Ask "What do you need to succeed?" not "How many hours did you work?"
Month 2: Address Issues Early
If someone's struggling, diagnose why. Skill gap? Unclear expectations? External obstacles? Fix the root cause.
Month 3: Celebrate Success Stories
Share examples of people who thrived with outcome-based management. Make it the new normal.
Common Objections and Responses
From employees:
"What if I have a bad week?"
"We look at trends, not individual weeks. One bad week doesn't define your performance."
"This feels like more pressure."
"It's different pressure. Instead of pressure to look busy, it's pressure to be effective. Most people prefer that."
From leadership:
"How do we ensure quality?"
"Quality is part of the outcome definition. It's not just 'deliver something'—it's 'deliver something that works.'"
"What about collaboration?"
"Include collaboration in outcome definitions. 'Deliver X while maintaining team satisfaction scores above Y.'"
Your Next Move
This week:
Pick one person whose effort doesn't match their results
Define one clear outcome for them to achieve in the next 30 days
Have the conversation: "Let's try measuring success differently"
Stop tracking their hours, start tracking their progress
This month:
Document what changes (productivity, satisfaction, results)
Share success stories with your boss
Gradually expand to your full team
Remember:
This isn't about working less.
It's about working smarter.
Your customers don't care how hard your team worked.
They care about the value you delivered.
And so should you.
Our Sunday AM posts:
📌 Build Your Team’s AI Early Warning System (Dave on LI)
📌 7 Questions To Shine A Light On Your Blind Spots (Mar on LI)
📌 Level Up Your Leadership With An AI Coach (Dave on X)
And here are our most popular posts last week:
🔥 How to Develop An AI Career Coach (in 6 Prompts) (Dave on LI)
🔥 How to Run 1:1s That Drive Performance (Dave on X)
🔥 11 Lessons to Shift How Your Think (Mar on LI)
Our goal is to build a community of 1 million thoughtful, curious leaders.
You can help us by reposting anything that resonates with you.
Thank you for reading. Appreciate you!
Dave
Ways To Work With Us
MGMT Accelerator - Eight 90-minute sessions over four weeks plus 3 group coaching session starting October at 7 11:00 AM ET. Perfect for experienced leaders with 3-10 years of experience who want to refine their systems to deliver more impact and level up as a leader.
MGMT Fundamentals - Eight one hour sessions over two weeks. Perfect for managers with 0-3 years of experience who want to quickly build the skills and systems to lead their team effectively from Day 1.
Customized Leadership Programs - Bring our MGMT Accelerator or MGMT Fundamentals in-house for a tailored, intensive workshop. Ideal for 15+ leaders.
1:1 Executive Coaching - My sweet spot is solving real problems to help leaders scale with a common sense Management OS. Growing companies with 50-250 employees.
Speaking - We’re now booking keynotes for Fall of 2025. Hit reply on this note, and we can set up a time to discuss topics and pricing.
MGMT Playbook - If you’re here because someone forwarded this email, please subscribe before you leave.

