Rule #4: Performance = Ability × Authority × Motivation
There’s a particular simplicity in how great managers convey complex truths. It’s a rare gift, one that I witnessed firsthand from my former boss, Jalal Gasimov. He is the kind of leader who doesn’t just run businesses—he transforms them. What impressed me most about Jalal was his remarkable ability to distill sophisticated ideas into simple, powerful insights. We’d sit in meetings, sifting through financial forecasts, performance metrics, and market analyses. More than once, the room would drift into complexity—debates becoming circular, conversations bogged down in details. And then, just when the confusion seemed unmanageable, Jalal would often say something simple yet very clear that would clear the room immediately.
One sentence, a handful of words, and everything would fall back into place.
One afternoon, amid one of our annual review, I heard him say something that changed how I view team management forever:
"Performance equals Ability multiplied by Authority multiplied by Motivation."
The simplicity struck me. This formula captured something profound about performance—that it isn't just skill, not just empowerment, nor purely motivation, but rather the synergy of all three. Miss any single element, and the whole equation collapses.
Ability: The Foundation of Competence
The first part of this formula is straightforward: Ability. It’s intuitive, yet easily overlooked. Ability means the technical skills, experience, and expertise each person brings to their role. As managers, we spend a significant portion of our energy building up the abilities of our team—training, mentoring, providing tools and resources. And rightfully so, since no amount of enthusiasm or autonomy can compensate for the fundamental lack of skill or knowledge.
Yet, there’s an irony here. Many organizations focus so heavily on ability—hiring top talent, extensive training—that they neglect the two other critical factors the performance equation. Consider sports teams: how many times have we witnessed squads full of talent consistently underperforming? (I can think about couple football teams going through this right now!) The players have abundant ability but lack something else—perhaps clear decision-making authority, perhaps genuine motivation.
Authority: The Freedom to Act
Authority isn’t just about titles, position, or rank—it’s about the genuine autonomy and empowerment to act. People perform best when they feel trusted, respected, and able to make decisions without constantly looking over their shoulders. Good managers understand this deeply. They don’t micromanage; they delegate genuine authority, making people accountable for results, not processes.
However, granting authority involves risk. Managers fear losing control, worry about errors, and hesitate to delegate real decision-making power. But authority without risk isn’t real authority at all—it’s merely delegation in name only, leaving employees frustrated and powerless. As a managers we have to accept the truth that only real authority creates ownership. Ownership creates accountability. And accountability fuels extraordinary performance.
Motivation: The Drive to Succeed
But even if your team has great ability and ample authority, without motivation, performance falters. Motivation is the most elusive ingredient—it’s intangible, emotional, and deeply personal.
Motivation is also easily misunderstood. It isn’t simply about money, bonuses, or perks. Rather, motivation often comes from a deeper place—purpose, recognition, respect, and the feeling that one’s work matters. Motivation comes in all shapes and forms when it comes to an individuals—understanding what drives each person and creating an environment where people felt genuinely engaged.
I’ve seen teams with remarkable talent and absolute freedom fail miserably, simply because they lost the sense of purpose behind their work. They became directionless, drifting toward mediocrity—not because they lacked skills or freedom, but because they’d forgotten why their work mattered. As Daniel Pink explains in his influential book Drive, real motivation comes from autonomy, mastery, and purpose—not just rewards and incentives
Multiplication, Not Addition
In this formula, we are using multiplication deliberately. With multiplication, if any factor in the equation is zero, the whole performance becomes zero. If an employee is highly capable and fully motivated but lacks authority, performance is severely limited. Similarly, a talented, empowered individual lacking motivation will never deliver their best.
The performance equation demands balance. As managers, we must continuously assess and calibrate each part: ensuring ability through training and hiring, authority through genuine empowerment, and motivation by reinforcing purpose and recognition. The equation is the most straightforward and powerful management principle I've ever encountered. Years later, I still repeat it regularly, sharing it with teams, colleagues, and fellow managers alike.