Introduction

Microsoft CEO Satya Nadella recently highlighted Productivity Paradox dichotomy:

“85% of managers think their employees are slacking off work, while 85% of employees think they are working too hard and are burned off.”

This paradox raises critical questions about trust, communication, and the effectiveness of management strategies. This paradox isn’t just about numbers, I am certain they are not the same for all the companies. However, it does reflect deeper organizational dynamics. From my experience – having perceived both sides – I think employee motivation, work clarity, and company culture play critical role and I believe mid-level managers – as much as they get blamed for this paradox – are uniquely positioned to bridge this gap and drive meaningful change.

In today’s fast-paced corporate world, productivity is the heartbeat of success. Technological advancements and flexible work models were supposed to help bridge this paradox but there’s a growing disconnect despite of them.

I am frequently approached by recent graduates and mid-level managers seeking advice on how to achieve rapid advancement in the corporate world. While luck certainly plays a part, there are many competencies that you can cultivate that others may lack. Although I possessed some of these competencies prior to starting my career, I had to hone many others along the way. That is why I began the “Corporate Diary” series – to share stories that may be beneficial to others.

Are mid-level managers Pharmakon?

In the intricate dynamics of modern organizations, mid-level managers stand at a pivotal crossroads. They are, in many ways, the Pharmakon—a term from ancient Greek philosophy that embodies a duality, meaning both remedy and problem – depending on several factors and at times, a scapegoat.

As the remedy, mid-level managers have the power to:

• Motivate Teams: By understanding personal and professional drivers, they can ignite a passion that propels productivity.
• Provide Clarity: Through clear communication and defined expectations, they eliminate confusion and streamline efforts.
• Cultivate Culture: By embodying and promoting organizational values, they foster an environment where employees thrive.

Yet, they can also become the problem when:

• Misaligned: Failing to connect the executive vision with team execution leads to disjointed efforts.
• Micromanaging: Overbearing oversight can stifle creativity and diminish motivation.
• Resistant to Change: Clinging to outdated practices hampers progress and adaptation.

And unfortunately, they often become the scapegoat:

• Blame Bearers: When organizational goals aren’t met, the spotlight frequently falls on mid-level managers.
• Caught in the Middle: Balancing demands from above and needs from below can place them in untenable positions.
• Underappreciated: Their contributions may go unnoticed, leading to disengagement.

Satya Nadella recognizes the critical role mid-level managers play in resolving the Productivity Paradox:

“Mid-level managers are the linchpin of any organization. Empower them, and they will empower your entire workforce.”

 The psychology behind productivity

A lot of corporates promote best performing employees and they are expected to perform managerial duties as well. However, there isn’t training available and they learn those skills on the job by making mistakes. These mistakes collectively cost company its culture regardless of how well executives set it and how good their intention is.

I have learned this the hard way. When I joined workforce, I was part of big team which had small number of full-time employees that inducted me and a large number of vendor contractors who worked onsite. I worked extremely hard and had innovative solutions to the problems at hand. This solution was converted into a tool that boosted productivity manifold and reduced client’s need for large team for this operation. I was promoted to lead role within a year and this put me at loggerheads with contractor workforce which I perceived was slacking. Almost all of them quit within months. I have recalibrated and honed my people leadership significantly since then. I believe we are always in people business – not technology business, not operations business, not finance business.

“We need to shift from measuring productivity through surveillance to measuring it through employee engagement and outcomes. It’s about creating a culture where people are inspired and motivated to give their best.“

Satya Nadella advocates for:

• Empathetic Leadership: Understanding employee needs and motivations.
• Outcome-Based Metrics: Focusing on results rather than hours logged.
• Cultural Transformation: Building an environment that supports growth and collaboration.

These are the key factors to bridge the Productivity Paradox. Here is my take on them.

1. The role of Employee Motivation

Motivation is the engine that drives productivity. It encompasses both personal and professional aspects:

• Personal Motivation: Stems from intrinsic desires like personal growth, work-life balance, and fulfillment.
• Professional Motivation: Derives from external factors such as career advancement, recognition, and financial rewards.

A misalignment between what motivates employees and what managers assume motivates them can lead to perceived productivity gaps. These are some strategies that I have seen work from my experience:

• Personal Development Plans: Collaborate with employees to set personal and professional growth goals. Take genuine interest in their growth.
• Recognition Programs: Implement systems to acknowledge and reward achievements. Celebrate wins, publicize them widely.
• Empowerment: Delegate meaningful tasks that align with employees’ strengths and interests. This significantly reduces burn-out.

Metrics that are commonly used to track motivation. In my experience, they don’t work well.

• Employee Engagement Scores: Use surveys to assess motivation levels. This must be anonymous and employees shouldn’t fear retaliation.
• Retention Rates: Higher motivation often correlates with lower turnover. This metric somewhat works, however during the phase where company isn’t doing well, retention rate can come low regardless of motivation.  
• Productivity Metrics: Monitor output quality and innovation rates. Tracking this isn’t easy as managers might be motivated to inflate claims.

Below are some ways to address common challenge of motivational slump:

• Reassess Workloads: Ensure tasks are challenging but manageable.
• Career Pathing: Provide clear advancement opportunities.
• Personal Recognition: Acknowledge individual contributions publicly.

2. The Importance of Clarity in Work

Clarity acts as a compass for employees:

• Defined Goals: Clear objectives help focus efforts on high-impact tasks.
• Role Understanding: Knowing one’s responsibilities and making them public within team/organization reduces inefficiencies.
• Expectation Setting: Transparent communication about performance standards prevents misunderstandings.

Without clarity, employees may expend energy on low-priority tasks, leading managers to question their productivity. These are some strategies that I have seen work from my experience:

• Clear Communication: Define goals, roles, and expectations explicitly. Role details should be explicit not only to employee but to all relevant parties, if not the entire organization.
• SMART Objectives: Set objectives that are Specific, Measurable, Achievable, Relevant, and Time-bound. Companies’ priorities evolve all the time, I get it. But mid-level managers often put very generic/broad objectives so they don’t have to change anything over the year. This is recipe for misunderstandings and pushes organization away from data-driven approach.
• Regular Check-ins: Use one-on-one meetings to address ambiguities and adjust priorities. Don’t wait until mid-year or year-end reviews. Be critical in private. Provide data-driven feedback. This will minimize surprises.

Metrics that are commonly used to track clarity.

• Goal Achievement Rates: Track how often teams meet their objectives.
• Error Rates: Fewer mistakes can indicate better understanding of tasks. This should be carefully weighted for research-type work/team/organizations otherwise it can impact innovation.
• Feedback Quality: Analyze the depth and constructiveness of feedback exchanges. This is helpful along with some sort of 360 degree feedback and skip-level feedback.

Below are some ways to address common challenge of clarity gap:

• Document Processes: Maintain accessible records of procedures and expectations.
• Training Sessions: Offer workshops to clarify roles and tasks.
• Open-Door Policy: Encourage employees to seek clarification without fear.

3. Culture as a Catalyst

Organizational culture shapes behavior.

• Trust-Based Culture: Encourages autonomy and empowers employees.
• Performance-Oriented Culture: Aligns rewards with outcomes, not just activities.
• Collaborative Culture: Fosters teamwork and open communication.

A misaligned culture can demotivate employees and breed distrust between staff and management. These are some strategies that I have seen work from my experience:

• Lead by Example: Demonstrate the behaviors and values you wish to see.
• Encourage Collaboration: Break down silos and promote cross-functional teamwork.
• Foster Inclusivity: Create an environment where diverse perspectives are valued.

Metrics that are commonly used to track culture:

• Cultural Surveys: Gauge employee perceptions of the organizational culture.
• Diversity Metrics: Assess representation across various levels.
• Collaboration Measures: Evaluate the frequency and success of cross-team projects.

Below are some ways to address common challenge of cultural resistance:

• Inclusive Leadership: Involve employees in cultural initiatives.
• Celebrate Diversity: Recognize cultural events and encourage sharing of diverse perspectives.
• Address Toxic Behaviors: Tackle issues that undermine the desired culture promptly.

Align Motivation, Clarity, and Culture

Here are some examples where they come together.

• Onboarding Processes: Use onboarding to align new hires with the company’s culture and expectations.
• Continuous Learning: Offer training and mentorships that reinforces cultural values and enhances skills.
• Feedback Loops: Create systems where feedback influences cultural initiatives and clarity of work.
• Leverage Data and Technology: Implement Data-driven Decision Making, Use Collaboration Tools Effectively

“We have to use data. Dogma is not going to help.” – Satya Nadella

There are some known case studies of how some companies are trying to tackle this gap. This is not to say that these companies are perfect. Below are some examples:

• At Google, the “20% Time” policy allows employees to spend 20% of their time on projects they’re passionate about, leading to innovations like Gmail and Google Maps.
• Adobe abolished annual performance reviews in favor of regular “check-ins,” fostering a culture of continuous feedback and development
• A study by Gallup found that employees who feel their managers help them set work priorities are 38% more likely to be engaged. This is easier said than done. Many organizations have evolving priorities – sometimes even contradicting over the short/medium-time.

The Path Forward is in making sure mid-level managers are trained, mentored and empowered so that they become remedy to this Productivity Paradox and not the problem themselves, nor the scapegoat. If there are fantastic individual contributors who don’t like to manage, create separate career paths for them.

“I think the world needs today, more than anything else from leaders, are optimism and energy. It’s easy to be down on everything [but] my true measure of any leader is who can come into a situation, bring clarity, generate energy, and solve over-constraint problems.” – Satya Nadella

Now, you will ask why this blog has all Satya’s quotes. Well, he offers fresh and divergent view on leadership than the most other management pundits. I do share some of his views and values. And after all, we share the same alma mater.