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Performance, Reward & Modern Leadership Roundtable Report

Co-Led by Lucy Chamberlain PCC & Scott Johnson (Highview Power) November 2025

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Introduction

This morning’s roundtable brought together senior HR, People, Reward and Leadership professionals to explore how organisations can build fair, commercially aligned and behaviour-led performance systems that genuinely motivate modern workforces.

The discussion drew on multiple evidence-based frameworks and thought leaders, including:​

• Kim Scott – Radical Candor

• Tara Brach – Radical Acceptance & mindfulness in leadership

• OCEAN / Big Five Personality Theory

• Locke & Latham’s Goal Setting Theory

• 9-Box Performance & Potential Grid

• London Business School research on organisational performance

• Generational Cohort Theory

• “Back on Track” performance framing (instead of traditional PIPs)

These resources grounded the conversation in modern leadership thinking, high-performance psychology and real commercial pressure.

Performance & Reward Models: The Need for Clarity, Fairness & Commercial Alignment

Closing the Gap Between KPIs and Business Success

Participants acknowledged a recurring issue: KPIs, personal scorecards and remuneration rarely map neatly to the true commercial drivers of the business.

Key themes included:

• Employees often lack clarity on what metrics matter

• Many organisations struggle to connect reward to tangible business outcomes

• Personal KPIs and team KPIs are misaligned

• HR is expected to influence EXCO without the right data narrative

Referencing Locke & Latham, goals must be: Clear, measurable, meaningful and directly tied to business priorities.

Finance-Friendly, Behaviour-Driving Reward Models

Reward models must:

• Drive the right behaviours

• Operate within budget

• Build trust with finance and EXCO

• Be easy to explain and justify

Scott highlighted a key insight: Influence is strengthened when HR plays within financial constraints rather than requesting additional budget.

Benchmarking & Variable Compensation

Participants agreed that:

• Benchmarking provides fairness, credibility and confidence

• High-performing cultures blend capability, delivery and behaviour

• Variable compensation should include lead indicators (behavioural) and lag indicators (outcomes)​

Commercial Alignment: Data Narratives & Strategic Influence

From Systematic HR to Commercial HR

A strong theme emerged: HR elevates its impact by moving from “process partners” to commercial enablers.

Participants emphasised:

• The importance of data storytelling

• Using the 9-box grid for transparency and planning

• Taking EXCO beyond gut-feel to evidence-based decision making

• Linking HR interventions to profitability

This reflects London Business School’s research that organisational excellence emerges from capability, clarity and consistency.

Creating a Persuasive Narrative

Effective reward and performance strategy requires:

• Clear impact mapping

• Behavioural indicators

• Commercial reasoning

• Transparent communication

Modern Motivation: Intrinsic Motivation, Strengths & Generational Insight

Intrinsic Motivation is Becoming More Powerful

Leaders referenced generational cohort theory to explain shifting motivations:

• Younger employees want autonomy, growth, purpose and learning

• Mid-career employees want influence, recognition and mastery

• Senior talent values stability, contribution and freedom

The group agreed: Money motivates short-term effort. Meaning motivates long-term performance.

Beyond Bonuses: Reward Must Be Broader

Participants shared examples:

• Employees preferring wellbeing benefits or development over cash

• Gym memberships outperforming cash bonuses

• Recognition having a disproportionate impact on performance

This aligns with Tara Brach’s research on human connection, agency, and psychological safety.

Strengths Highlighting & Behaviour Reinforcement

Leaders discussed:

• Building “muscle memory” around positive behaviours

• Highlighting strengths weekly

• Reinforcing the behaviours that drive contribution

• Training managers to spot and coach behaviour

The OCEAN personality framework was referenced to understand and tailor motivation.

Leadership Capability: Radical Candor, Feedback & Psychological Safety Managers Are the Linchpin - And Often the Least Equipped

Managers commonly lack:

• Confidence in difficult conversations

• Skills to coach performance

• Capability in behaviour-led feedback

• Comfort challenging directly
  

Referencing Radical Candor, leaders agreed that high performance requires:

• Challenge directly

• Care personally

Without this, organisations see:

• Rating inflation

• Undiscussed underperformance

• Avoidance of conflict

• Misaligned reward decisions

Language Matters: From “PIP” to “Back on Track”

A major shift underway: Replacing punitive, fear-based language with developmental, supportive terminology.

Examples discussed:

• “Back on Track Plan”

• “Performance Achievement Plan”

• “Strengths-Led Development Plan”

This reduces threat response and increases accountability.

Rating Models, Feedback Mechanisms & Human Behaviour

Points raised:

• Five-point scales still have value

• They require strong calibration

• Managers trend toward the “safe middle rating”

• Human bias must be addressed through data, narrative and calibration

• Ratings should be paired with development expectations and behavioural context

Broader Definitions of Reward & Contribution

Participants expanded the definition of “reward” to include:

• Autonomy

• Meaning

• Mastery

• Contribution to culture

• Trust

• Skill-building

• Psychological reward

• Recognition and progression

A standout insight: “Reward is headspace, trust, and feeling your contribution matters, not just compensation.”

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Challenges Shared by Leaders

• Managers avoiding direct feedback

• Lack of consistent expectations

• Difficulty linking behaviours to reward

• Perception of HR as systematic rather than commercial

• Variability in manager capability

• Limited financial literacy within HR

• Generational differences in motivation

• Poor-quality performance conversations

Recommendations & Forward Actions

For Organisations:

• Build clear, business-aligned reward models

• Create behaviour-led indicators

• Use transparent, fair benchmarking

• Embed a “Back on Track” system instead of PIPs

• Train all leaders in feedback, performance and behavioural coaching

For HR Leaders:

• Strengthen commercial capability

• Develop data-driven narratives

• Leverage frameworks (9 box, OCEAN, Lock & Latham)

• Coach EXCO on the “why” behind reward models

• Introduce Radical Candor training across the leadership population

For Managers:

• Hold regular, structured coaching conversations

• Use behaviour-first feedback

• Set clear expectations early

• Build muscle memory around strengths recognition

• Apply generational insight to motivation strategies

Further Development: Lucy Chamberlain PCC - Coaching for Leaders

Participants are invited to deepen today’s themes through Lucy Chamberlain PCC’s Coaching for Leaders Workshop.

The programme equips leaders with:

• Coaching frameworks for performance & reward conversations

• Tools to increase intrinsic motivation

• Behavioural coaching capabilities

• Language that builds psychological safety

• Confidence in challenging directly with empathy

This workshop is suitable for: Senior leaders, People managers, HR teams, Emerging leaders, Performance-focused organisations

Conclusion

The roundtable highlighted a powerful shift… Modern performance and reward systems must integrate commercial clarity with human-centred leadership. By embedding evidence-based frameworks, building manager capability, strengthening data narratives and moving toward intrinsic motivation and behaviour-led performance, organisations can create cultures that are high-performing, fair and deeply engaging.

Contact Details:

Lucy Chamberlain, Founder: 020 3475 3885

Cathrine McCarroll, Associate Director: 020 3854 2693

Bella Hughes, Principal Consultant: 020 3854 2676