Ep 191: Building a High-Performance Culture with Clear Expectations - Insights from Michael Erath

In episode 191 of the Paper Napkin Wisdom podcast, host Govindh Jayaraman sits down with Michael Erath, founder of Next Level Growth. Michael’s journey is filled with real-life lessons on leadership, accountability, and the impact of clear expectations. With experience in both managing and growing a successful manufacturing business and now coaching leaders, Michael brings a unique perspective to building a culture of clarity and responsibility in organizations.

As an expert in business and leadership coaching, Michael is all too familiar with the challenges that come with team dynamics and performance. His paper napkin wisdom, “Most of your frustrations with people are the result of unclear expectations,” resonates with leaders across industries. In this episode, Michael unpacks why setting expectations is more than just a management tool—it’s the foundation of effective leadership.

From Manufacturing to Coaching: A Journey of Transformation

Michael’s transition from running his own manufacturing business to coaching leaders wasn’t just a career shift; it was a transformative journey. Through years of hard work, he grew his family business significantly, but he also faced intense challenges, including a betrayal that nearly brought the business down. Reflecting on these experiences, Michael reveals, “One of the underlying issues affecting performance and leading to frustrations is simply the fact that lots of people get onboarded into a job and don’t really understand what’s expected of them.”

In his coaching work at Next Level Growth, Michael focuses on helping leaders implement structured accountability and clarify expectations. He has developed a powerful framework that addresses three core areas for every role: Mission, Most Critical Outcome, and Obsessions. This method ensures that everyone understands their purpose within the organization and knows how to measure their success. According to Michael, “Every system is perfectly designed to get the results it gets,” emphasizing the importance of building a culture of accountability from the ground up.

Accountability Redefined: Shifting from Brow-Beating to Clarity

Many leaders struggle with accountability, often associating it with criticism or discipline. But Michael offers a different perspective, suggesting that accountability, when approached with empathy and clarity, can drive motivation and performance. He explains, “Accountability and high-performing cultures don’t have to be brow-beating, disciplinary cultures. In fact, the inverse is often true.”

Michael’s model, built from his own experiences and honed through coaching, is designed to support leaders and team members in knowing whether they are “winning” in their roles. This clarity fosters self-motivation and reduces friction, creating an environment where everyone feels valued and aligned with the organization’s goals.

The Power of Onboarding and Defining Roles

One area Michael strongly advocates for is investing in a structured onboarding process. He believes that starting employees with a clear understanding of their role and expectations is essential to long-term success. “If we take time in the very beginning to have a dialogue around expectations in both directions, we create a de facto agreement because we had a dialogue about them,” he explains. For Michael, this dialogue is the foundation of a healthy, high-performing work culture.

By defining roles through his Next Level Accountability Chart—outlining each role’s mission, measurable outcomes, and key “obsessions”—Michael has helped numerous companies create a results-oriented culture. His approach emphasizes measurable outcomes, aligning every team member’s objectives with the broader mission of the company. “The companies I work with that have done this well truly build a financial engine in the business,” Michael says, underscoring the power of this framework.

5 Key Takeaways

1. Define and Communicate Clear Expectations
   • “Most of your frustrations with people are the result of unclear expectations.” As Michael emphasizes, unclear expectations often cause conflicts and disappointment. Whether it’s with team members, partners, or clients, clearly defined roles and outcomes are essential.
   • Take Action: Take time to clearly outline your expectations for each team member. Have an open discussion to ensure they understand their responsibilities and feel empowered to achieve them.
2. Create Measurable Outcomes for Every Role
   • Michael’s concept of “Most Critical Outcome” serves as a measurable goal for each position. “The idea is to measure success in each role with a tangible outcome, like revenue for a sales role or efficiency for an operations role.”...