Why Smart Organizations Do Dumb Things (And How to Fix It)

Here's a question that keeps executives awake at night: Why do smart organizations with talented people consistently do things that violate basic business common sense?

They recognize everything instead of focusing on what drives results. They measure participation instead of business impact. They treat superstar performers the same as average ones to "be fair." They celebrate activities that customers never experience.

If you nodded along to any of that, you're not alone. Most organizations accidentally violate common sense every day, especially in their recognition programs. The good news? There's a systematic way to fix it.

It's called P3 - and it transforms obvious truths into competitive advantage.

The Common Sense Problem That's Costing You

Let's start with an uncomfortable reality: Common sense isn't common practice in most organizations.

Everyone agrees that recognition should drive business results. Everyone knows you should focus on what matters most to customers. Everyone understands that high performers should be treated differently than low performers.

Yet most recognition programs violate all three principles:

They recognize everything - teamwork, innovation, customer service, leadership, integrity, excellence, collaboration, communication, quality, safety, accountability, respect, and continuous improvement.

They measure participation - "89% of employees participated!" and "Engagement scores increased 12%!" instead of customer satisfaction or revenue impact.

They treat everyone equally - giving the same recognition to superstars and average performers because "fairness" matters more than results.

They celebrate activities - internal processes and abstract values instead of customer outcomes and business results.

They create complexity - multiple programs, rotation themes, and bureaucratic nomination processes instead of clear focus on what drives competitive advantage.

The result? Expensive programs that consume resources, frustrate high performers, and create zero competitive advantage.

The P3 Solution: Organizing Common Sense into Competitive Advantage

P3 transforms three obvious truths into systematic practice:

PINPOINT: Focus recognition on the critical few behaviors that actually drive business results instead of celebrating everything.

PRACTICE: Develop the capabilities that enable those critical behaviors instead of hoping people figure it out.

PRAISE: Connect every recognition moment to measurable business outcomes instead of abstract values.

The result: Recognition becomes a strategic weapon that creates sustainable competitive advantage.

Sounds simple? It is. That's why it's so powerful.

The Four-Phase P3 Implementation Framework

Phase 1: Foundation Building (Leadership Commitment)

This is where most implementations fail. Leaders say they want business results but won't commit to the hard choices that make results possible.

The Executive Reality Check:

Before implementing P3, ask your leadership team these non-negotiable questions:

1. Are you willing to stop recognizing behaviors that don't drive business results?
2. Will you connect recognition priorities to your own bonus criteria?
3. Can you explain to employees why other activities won't receive formal recognition?
4. Are you prepared to differentiate between high and low performers publicly?
5. Will you measure success based on customer outcomes, not program participation?

If executives won't commit to these principles, stop here. P3 without leadership commitment becomes another "program of the month."

Required Leadership Commitments:

1. 80% of recognition resources focused on business-driving behaviors
2. Executive modeling of P3 principles in their own recognition
3. Manager goals include improvement in P3 metrics
4. Business decisions evaluated against P3 impact

Phase 2: Critical Few Identification (What Actually Matters)

Most organizations try to recognize 12-15 different behaviors. P3 identifies the 2-3 that actually drive competitive advantage.

The Three-Layer Analysis:

Customer Impact: What employee behaviors do customers actually experience and value? Can you measure customer satisfaction differences when these behaviors improve?

Competitive Advantage: Which behaviors separate you from competitors and are difficult to replicate? What do customers say they value most about working with you versus others?

Financial Results: How does improvement in each behavior affect revenue, profitability, or cost management? Can you calculate the ROI of behavior improvements?

The Scoring System:

Rate each potential behavior on all three dimensions (1-10 scale):

1. Customer Impact score + Competitive Advantage score + Financial Results score = Total points

Charles Schwab's Critical Few scored 28, 28, and 26 points respectively. Behaviors scoring below 25 points received no formal recognition resources.

Phase 3: Implementation (Making It Happen)

Manager Development: Train managers to observe, coach, and recognize the critical behaviors effectively. Provide tools and templates that make recognition easier and more meaningful.

Employee Communication: Clearly explain why recognition is focusing on these specific behaviors, how they connect to customer experience and business success, and what excellence looks like in each area.

Recognition Redesign: Eliminate programs that don't connect to critical behaviors. Create specific recognition categories for each critical behavior. Establish measurement criteria and business impact tracking.

Measurement Integration: Connect recognition activities to customer satisfaction metrics, business performance indicators, and competitive advantage measurements.

Phase 4: Optimization (Continuous Improvement)

Behavior Tracking: Monitor frequency and quality of critical behaviors across all teams. Track consistency of behavior demonstration organization-wide.

Business Impact Analysis: Measure customer satisfaction improvements, revenue correlation with behavior performance, and competitive advantage indicators.

Recognition Effectiveness: Evaluate employee engagement with behavior-specific recognition, manager effectiveness in providing meaningful recognition, and high performer satisfaction with differentiation.

Continuous Refinement: Adjust recognition criteria based on business impact data. Enhance measurement systems for better tracking. Optimize manager coaching and employee development.

The Results When Common Sense Becomes Common Practice

Organizations implementing P3 methodology report remarkable transformations:

1. 47% improvement in business metrics related to recognized behaviors
2. 34% increase in high performer engagement with recognition
3. 52% reduction in management time spent on performance issues
4. 61% improvement in employee clarity about what drives success

More importantly, customers notice the difference. When everyone focuses on the same critical behaviors, customer experience becomes consistently excellent instead of randomly good.

The Five Implementation Challenges (And How to Overcome Them)

"This feels like we're ignoring other important work." Solution: You're focusing recognition on what drives business success. Thank people for other contributions, but reserve structured recognition for what customers value and pay for.

"Employees will feel like recognition is harder to earn." Reality: High performers already feel recognition is meaningless when everyone gets it equally. Focused recognition becomes more valuable because it's more meaningful.

"Managers don't have time for more complex recognition." Truth: P3 actually reduces manager time by creating clarity about what to recognize and measure. Focused recognition is more efficient than generic appreciation.

"Different departments need different behaviors." Application: Critical behaviors apply across all roles but manifest differently. Customer impact looks different in accounting versus sales, but both connect to customer experience.

"How do we handle existing recognition programs?" Strategy: Audit programs against P3 principles. Eliminate those that don't reinforce critical behaviors. Modify those that partially align. Communicate changes as focusing on what drives business success.

Your P3 Implementation Journey

Want to see exactly how to transform common sense into common practice in your organization? Our comprehensive implementation guide walks you through every step of the process.

"P3 Implementation: Making Common Sense Common Practice" is the complete methodology that shows you how to organize obvious truths into competitive advantage. This isn't theoretical advice - it's the systematic approach that drives measurable business results.

The guide includes:

Four-Phase Implementation Framework: Step-by-step process from leadership alignment through continuous optimization, with specific timelines and success metrics.

Executive Alignment Tools: The critical questions and commitments needed to ensure leadership support for common sense principles.

Critical Few Identification System: Three-layer analysis framework with scoring methodology to identify the 2-3 behaviors that deserve recognition focus.

Manager Development Program: Training approach and tools that enable managers to observe, coach, and recognize critical behaviors effectively.

Recognition Redesign Strategy: How to eliminate scattered programs and create focused recognition that drives business results.

Measurement and Optimization Framework: Business impact tracking systems and continuous improvement processes.

Implementation Challenge Solutions: How to overcome the five biggest obstacles and maintain momentum through organizational change.

The guide takes about an hour to read and provides a complete roadmap for transforming recognition from expensive common practice violation into competitive advantage through systematic common sense.

Download P3 Implementation: Making Common Sense Common Practice Now

Discover exactly how to organize obvious truths into systematic business advantage.

The choice is clear: Continue spending money on recognition that violates common sense, or implement P3 methodology that creates competitive advantage through systematic focus on what actually matters to customers and business results.

Your competitors are making their choice. What's yours?

Ready to transform common sense into common practice? Start with the P3 Implementation Guide and discover exactly how to organize obvious business truths into systematic competitive advantage.