People Strategy vs Performance Strategy: Finding the Sweet Spot

‘As school business professionals, we are the operational backbone of our schools and trusts’, writes Sharon Marsh, in this insightful piece that looks at balancing people and performance

We are the masters of multi-tasking; spinning the very plates that drive significant change. Whether managing a retirement, a promotion, or a restructure, navigating these transitions is a crucial part of our leadership.

Yet, beneath the mechanics of change lies a deeper challenge: the tug-of-war between People Strategy and Performance Strategy. In modern education, we are often pulled between a focus on wellbeing and culture versus the demand for efficiency and measurable outcomes. For the modern SBP, the goal is not to choose one, but to find the “sweet spot”; the point of sustainable excellence where these two strategies intersect.

The Default Setting

In an era of tightening budgets and increasing regulatory scrutiny, it is easy to default to a Performance-Led strategy. We focus on KPIs, audit trails and the bottom line. We look for ways to squeeze an extra 2% out of a contract or streamline a department to its bare bones.

When we lean too far into this quadrant, we risk treating our schools like factories. While this approach can drive short-term results and satisfy the “data-hungry” elements of governance, it often creates a “fear culture.” In this environment, staff become risk-averse, innovation dies and burnout becomes an operational hazard. We might hit our financial and educational targets, but we lose our best people in the process, leading to a recruitment crisis that eventually tanks the very performance we were trying to protect.

Too Much Drift

Conversely, a pure People-Led strategy can lead to what leadership experts call “drift.” In this scenario, the focus is entirely on keeping everyone happy, flexible, and comfortable. While this sounds ideal, a strategy lacking the framework of performance can result in a lack of accountability.

Without clear expectations and high standards, professional growth stagnates. We foster a lovely, supportive environment, but we may miss the mark on operational excellence or fail to deliver the best possible outcomes for our pupils. Ultimately, a school that does not perform is not a secure place for its people to work in the long term.

The Sweet Spot

The “sweet spot” is the intersection where our staff feel genuinely valued and supported, which in turn fuels their drive to perform at the highest level. It is the understanding that a well-supported staff member is the most efficient engine for performance we have.

Finding this balance isn’t a one-time task; it’s an ongoing leadership discipline. As SBPs, we are uniquely positioned to bridge this gap because we see the “whole map” of the school’s operations.

How do we practically find this middle ground? It starts by shifting our perspective on change management. When we look at a departmental restructure, we shouldn’t just see a revised organogram; we should see a shift in the daily lives of our colleagues.

• Invest in “Cultural Capital”: Communicate the why behind performance goals. When staff understand how a new reporting system improves pupil outcomes or secures the school’s future, they are more likely to engage with it.
• Operationalise Empathy: Build systems that support staff specifically to reduce the “drudgery” that hinders performance. This might mean investing in better HR software to reduce manual admin or rethinking the timing of internal deadlines.
• Define Success Broadly: High performance should include human metrics. If a department hits its targets but sees 50% turnover, that is not a success; it is an operational failure.

Justifying the Strategy

One of the greatest hurdles for an SBP is justifying the “People Strategy” to a board of governors or trustees who are primarily focused on performance. To get buy-in, we must translate our culture-building efforts into the language of risk, sustainability, and return on investment (ROI).

1. Reframe Wellbeing as “Operational Resilience”

Governors understand risk. Instead of talking purely about “happiness,” frame your people initiatives as a way to mitigate the astronomical costs of recruitment. Present the “Cost of Vacancy”; the advertising fees, agency cover, and loss of institutional knowledge; against the cost of a retention strategy.

2. The “Dual-Report” Method

When presenting your termly reports, provide a “people impact” commentary alongside the figures. If you saved money on the energy contract, mention how that budget was redirected into staff CPD. If you improved facilities, mention how the cleaner working environment has boosted site team morale.

3. Evidence the “Sweet Spot”

Supplement your hard data with qualitative evidence. Share snippets from staff surveys that link high morale to improved productivity. Show the Board that when the People Strategy is healthy, the Performance Strategy becomes self-sustaining.

“A school that hits its performance targets at the expense of its people is an organisation in decline. A school that hits its targets because of its people is an organisation built to last.”

As you look toward the next academic term, consider these “Quick Wins” and reflective questions to help you recalibrate:

• The “Stop Doing” List: Identify one redundant administrative task that adds no value to pupil outcomes and scrap it. This is a gift of time to your staff.
• The Friction Check: Are your performance processes (like expenses or room bookings) creating unnecessary “people” friction? Simplify them.
• The 10-Minute Listening Tour: Spend ten minutes a week in a different department; the kitchen, the site office, the staff room; just to listen. Understanding the operational reality of your team is the first step to optimising their performance.

We are more than just managers of budgets and buildings; we are architects of organisational culture. By intentionally aligning our people strategy with our performance goals, we don’t just keep the plates spinning—we ensure they are spinning with purpose.

When our teams feel seen, supported, and challenged in equal measure, excellence doesn’t feel like a top-down demand. It becomes a natural by-product of a healthy, balanced school environment. Let’s stop seeing “people” and “performance” as a zero-sum game and start finding the sweet spot that allows both to flourish.