Page 94 - HBR Leader's Handbook: Make an Impact, Inspire Your Organization, and Get to the Next Level

84 HBR Leader’s Handbook

How solid is the social contract on your team?

The tension between achieving strategic goals and honoring the social
contract exists at every level of the organization and isn’t just an issue
for CEOs and senior leaders. Team members expect that in return for
their best efforts, they will receive compensation; have opportunities
to grow, learn, advance, and build relationships; and have a safe, stim-
ulating work environment. At the same time, as their leader, you expect
them to put their heart and soul into the work and produce great results.
In many instances, however, the pressures and demands of getting
work done and the expectations and performance of team members
don’t fully match, and the fabric of the social contract begins to fray. As
a leader, you need to look out for the warning signs of that happening so
that you can take action as early as possible. These warning signs might
include:
• People on your team worrying about getting credit or recognition
for their contributions, which can signal that people don’t feel
adequately rewarded

dispassionate about getting the right people in place in order to implement
your strategy and get results, but still be personally compassionate about
how those choices affect the individuals involved.
This means that if one of your direct reports isn’t working out—they’re
not the right fit, or they’re not performing despite whatever guidance and
support you’ve given them—you need to take them off the team. That may
not necessarily mean letting them go; you may be able to find a role that is
a better fit for their skills elsewhere in the organization. Finding the right
place for them is a compassionate way of removing them from the team,
but so is being candid about exactly where they didn’t perform so that they
can improve, either at another position in your firm or elsewhere. Letting
them stay and continue to fail or feel uncomfortable, however, is not com-