Oncken's Leadership Equation


While the “luck element” is inescapably a factor in results, it must not be a component of the individual’s performance evaluation.

Oncken’s Fourth Law warns that: “If you want to build a culture characterized by creativity, effective execution and high morale, your people must only be evaluated (and thus rewarded or reprimanded) for what they can control or influence, and NOT for the ‘luck element’ in their jobs.”

This requires that “Criteria” be established against which performance will be evaluated, irrespective of the results achieved. “Criteria”, as used here, are NOT, themselves, shorter term goals and objectives. Criteria define, and are measures of, the “monkeys”, “next moves” and “initiatives” performed in real time that are designed to contribute to the desired results.