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NewslettersThe Trust Factor

To drive performance, this tech leader emphasizes goals and wins

By
Nick Rockel
Nick Rockel
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By
Nick Rockel
Nick Rockel
Down Arrow Button Icon
September 6, 2024, 10:34 AM ET
Norman Rice, chief commercial officer of Extreme Networks.
Norman Rice, chief commercial officer of Extreme Networks.Courtesy of Extreme Networks

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.

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“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

IN OTHER NEWS

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As Kevin O’Leary sees it, employees who disconnect outside work hours don’t inspire trust. The Shark Tank host railed against a new Australian law that gives workers the right to ignore messages from the boss during personal time. O’Leary, who said he’d fire people for not taking his calls, seems to have missed the fact that the law takes emergencies into account. But he can’t be the only business leader who wants to pull the plug on right-to-disconnect.

Foreign exchange
Here’s yet more evidence that China can’t be trusted to stay out of U.S. politics. Linda Sun, former deputy chief of staff for New York state Gov. Kathy Hochul, faces federal charges of being an undisclosed agent of the Chinese government. Accused of money-laundering conspiracy and several other crimes, Sun brought Beijing’s influence to bear on the governor’s office, prosecutors said. For their trouble, she and her husband allegedly got benefits, including cash they spent on homes and luxury cars. Count on China to protest too much.

Screen test
Tom Hanks has joined the chorus of mistrust over deepfakes. The Hollywood star just warned fans that fraudsters are using his name and voice to peddle snake oil—as California pushes ahead with legislation to stop actors’ work from becoming AI fodder. For actors' union SAG-AFTRA and other proponents, the goal is to protect jobs and pay while also stemming the flow of misinformation. There are many better roles for AI.

Money for nothing
Counting on bonuses to drive employee performance? You might want to rethink that plan. Research shows that often, paying people for performance makes them do a worse job, Sasha Rogelberg writes. Take a recent study that explored the impact of cash bonuses on workplace absenteeism. To encourage apprentices at a German retail chain to come to work, researchers gave extra vacation days to one group and money to another. Neither approach cut absences, but the group that took the cash began showing up less. Back to the drawing board...

TRUST EXERCISE

“Divisive politics always put social good initiatives on the front lines of the culture wars. So it’s no surprise that some politicians have targeted sustainability initiatives and ESG—a values-based investment strategy with goals to achieve environmental and societal impact. Under constant political pressure, it wasn’t long before some were even declaring the death of ESG.

As we enter the final few months of a highly competitive presidential race, it seems that reports of the death of ESG may have been greatly exaggerated. One recent survey found that 52% of global business leaders agree ESG leads to lower costs and 69% say it leads to lower risks.

Sustainable business initiatives have gotten a second wind—and with it, a rare opportunity to reconsider how we frame the climate crisis. That means abandoning some of the alarmist messaging that may have put sustainability in the political crosshairs to begin with—and highlighting the importance of childlike imagination and creativity, especially in facing complicated challenges.”

Well, that’s some much-needed good news. Now that ESG has survived a brush with death, it’s time for a different attitude about climate change, says Sophie Ozoux, cofounder of creative agency Kin.

Ozoux makes a case for ditching the traditional doom-and-gloom narrative, which aims to scare people into taking the crisis seriously. So, how’s that working out? As Ozoux explains, the alarmist approach to encouraging sustainable behaviors can invite potshots from climate skeptics, while others simply tune out the message. She cites studies suggesting that fear-based ads not only fall flat but also fail at inspiring people to make real changes.

The solution? It’s child’s play. Now that we have no choice but to adapt to climate change, Ozoux says, some enthusiasm for the task would go a long way. For her, that means harnessing the power of storytelling to capture young people’s imagination and give them a reason to build a better tomorrow. Yogurt brand Chobani did just that with an animated short showing a world where nature and technology grow together.

The climate crisis may be a matter of life and death, but we could all benefit from sharing that sense of wonder and possibility, which so often vanishes with childhood.

This is the web version of The Trust Factor, a former weekly newsletter that examined what leaders need to succeed.
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By Nick Rockel
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