for leaders only - may 10, 2011
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FOR LEADERS ONLYIn Pursuit of Excellence
Sessions
May 10, 2011
Engaging People for Better Performance
“If we were meeting here one year from today, looking back over that time, what needs to have happened for you to be satisfied with the performance of your organization?”
FOR LEADERS ONLYI N P U R S U I T O F E X C E L L E N C E
Introduction
Leaders are Ready for Growth
FOR LEADERS ONLYI N P U R S U I T O F E X C E L L E N C E
Introduction
Leaders are Ready for Growth
The Top CEO Challenges for 2011 (Conference Board 2011)
FOR LEADERS ONLYI N P U R S U I T O F E X C E L L E N C E
Introduction
If all of your workforce was ready, willing, and able – what could your business achieve?
Imagine …
FOR LEADERS ONLYI N P U R S U I T O F E X C E L L E N C E
Introduction
FOR LEADERS ONLYI N P U R S U I T O F E X C E L L E N C E
Introduction
The critical driver forperformance lies in your ability to put the right people in the right positions and align them to your strategy.
The Situation …Moving Mountains
Most organizations produce results at about 63% of potential performance capacity.
(Harvard Business Review)
FOR LEADERS ONLYI N P U R S U I T O F E X C E L L E N C E
Introduction
63% Actual PerformanceLost Potential Performance
The Situation …Moving Mountains
63%
Employees are responsible for 85% of the variation in executing on strategy.
It is not the brilliance of strategy that creates competitive advantage – it is the efforts of people.
(Success Factors Research 2010)
The Situation …Moving Mountains
FOR LEADERS ONLYI N P U R S U I T O F E X C E L L E N C E
Introduction
Leaders need to look internally to improve execution and business growth …
FOR LEADERS ONLYI N P U R S U I T O F E X C E L L E N C E
Introduction
The Focus … Moving Mountains
The Top 4 Strategies to Improve Business Results:(Conference Board 2011)
FOR LEADERS ONLYI N P U R S U I T O F E X C E L L E N C E
Introduction
Improve leadership effectiveness
Enhance senior team effectiveness
Provide training and development
Improve succession decisions
1.
2.
3.
4.
The Focus … Moving Mountains
To provide tools and insights to improve organizational performance.
FOR LEADERS ONLYI N P U R S U I T O F E X C E L L E N C E
Introduction
Today’s Focus …
Part 1Shifting the Curve for
Better Results
Part 2 Increasing the
ROI of Your Workforce
Part 3Being More
than the Sum of the Parts
No matter what your starting point, you can always drive improvement.
The Outcome:
FOR LEADERS ONLYI N P U R S U I T O F E X C E L L E N C E
Introduction
New Perspectives
Leading for Performance: Shifting the Curve for Better Results
Part One:
“If you can’t explain it simply, you don’t understand it well enough.”
Albert Einstein
FOR LEADERS ONLYI N P U R S U I T O F E X C E L L E N C E
Part One
If an organization wants to succeed – today and in the future – it must attract
and retain great employees.
“In the long run, the most profitable companies are those that take care of their people …
without people who are happy and productive, the company’s long-term prospects are
mediocre at best.”Dr Jack Fitz-Enz
FOR LEADERS ONLYI N P U R S U I T O F E X C E L L E N C E
Part One
The impact of good people on the organization cannot be underestimated.
85% of the variance in execution against strategy is explained by people
performance.
FOR LEADERS ONLYI N P U R S U I T O F E X C E L L E N C E
Part One
Without people performance, a great strategy is just an idea – it’s your people
who make it real.
The greatest potential for increased execution, productivity, and profitability
lies in your people.
FOR LEADERS ONLYI N P U R S U I T O F E X C E L L E N C E
Part One
One solution …
Hucamentrics
FOR LEADERS ONLYI N P U R S U I T O F E X C E L L E N C E
Part One
The new science of tracking and applying human capital
data to predict employee and business performance based
on cause and effect.
FOR LEADERS ONLYI N P U R S U I T O F E X C E L L E N C E
Part One
Hucametrics
FOR LEADERS ONLYI N P U R S U I T O F E X C E L L E N C E
Part One
Competence
Engagement
Organizational Opportunity
= Return on Human Capital
The Formula …
Or, more simply put …
Ready, Willing, and Able.
If you don’t measure it, you don’t know what is actually happening
If you don’t understand it, you can’t control it
If you can’t control it, you can’t improve it
FOR LEADERS ONLYI N P U R S U I T O F E X C E L L E N C E
Part One
Turning data into business intelligence…
Where to start:
1. HCVA: Human Capital Value Added2. HCROI: Human Capital Return on
Investment3. PROHC: Potential Return on Human
Capital
FOR LEADERS ONLYI N P U R S U I T O F E X C E L L E N C E
Part One
Handout One: Organizational Hucametrics
FOR LEADERS ONLYI N P U R S U I T O F E X C E L L E N C E
Part One
Human capital is the greatest lever for performance today.
Hucametrics provide a baseline of where the organization stands today. The next step is to get a firm grip on performance variance to improve the metrics.
FOR LEADERS ONLYI N P U R S U I T O F E X C E L L E N C E
Part One
Every organization has a distribution curve of their employees’ performance levels – but it’s a question of how well
you can see it.
Only 3% of organizations measure their performance curve.
FOR LEADERS ONLYI N P U R S U I T O F E X C E L L E N C E
Part One
FOR LEADERS ONLYI N P U R S U I T O F E X C E L L E N C E
Part One
The Performance Curve
FOR LEADERS ONLYI N P U R S U I T O F E X C E L L E N C E
Part One
Where do you focus?
The A Performer:
goes beyond expectations and
shows self-starting initiative
The B Performer:
valued, steady, and meets the needs of their
role – not dispensable
The C Performer:
does not meet expectations
The D Performer: Lacks contribution and is not engaged in the organization
The C Performers hold great potential for significant contribution variance.
FOR LEADERS ONLYI N P U R S U I T O F E X C E L L E N C E
Part One
So many C Performers are simply placed in the wrong position, mismanaged, or under
coached.
FOR LEADERS ONLYI N P U R S U I T O F E X C E L L E N C E
Part One
Handout Two
Moving the C Performer
FOR LEADERS ONLYI N P U R S U I T O F E X C E L L E N C E
Part One
The linchpin for shifting people performance - leadership.
“Better people are not needed for better performance.”
*Peter Drucker
FOR LEADERS ONLYI N P U R S U I T O F E X C E L L E N C E
Part One
How well managers manage and are managed determines whether
business goals will be reached and the level of workforce performance
achieved.
“Workers’ attitude reflects, above all, the attitude of their management.”
*Peter Drucker
FOR LEADERS ONLYI N P U R S U I T O F E X C E L L E N C E
Part One
The responsibility of leadership:
Improve managers’ competence and confidence in building people performance and being accountable for the results.
FOR LEADERS ONLYI N P U R S U I T O F E X C E L L E N C E
Part One
The organization needs to …
• Hold employees accountable• Provide open and honest feedback• Consistently invest in development• Support managers to be responsible
for employee performance
FOR LEADERS ONLYI N P U R S U I T O F E X C E L L E N C E
Part One
The needed organizational shifts …
• Establish clearly defined but individual performance objectives for all employees
• Link competencies to performance needs
FOR LEADERS ONLYI N P U R S U I T O F E X C E L L E N C E
Part One
The needed organizational shifts …
• Provide an individual development plan for each employee
• Improve manager competence and accountability for team performance – coaching skills
FOR LEADERS ONLYI N P U R S U I T O F E X C E L L E N C E
Part One
Shifting the performance curve is founded in leadership that measures what matters and invests responsibly with accountability.
FOR LEADERS ONLYI N P U R S U I T O F E X C E L L E N C E
Part One
Innovative Ideas
Leading with EngagementIncreasing the ROI on your Workforce
Part Two:
“"If we did all things we were capable of doing, we would truly astound
ourselves." Thomas Edison
FOR LEADERS ONLYI N P U R S U I T O F E X C E L L E N C E
Part Two
Execution is about focusing resources on the objectives that will reap the biggest
reward for your organization.
It's more than just having a strategy; it is about translating the strategy into action
on a daily basis.
FOR LEADERS ONLYI N P U R S U I T O F E X C E L L E N C E
Part Two
The Shifting Drivers of Business Value
"More than 75% of the growth in US market capital in the last 10 years
has come from "intangible assets" - assets which are not listed on the
balance sheet." Bersin & Associates
FOR LEADERS ONLYI N P U R S U I T O F E X C E L L E N C E
Part Two
1982 2003
38%
62%
80%
20%
Intangible Assets Physical Assests
Organizational capability is a shift in mindset to improve execution through people...
"The firm's ability to manage people to gain competitive advantage”
Dave Ulrich
FOR LEADERS ONLYI N P U R S U I T O F E X C E L L E N C E
Part Two
How does the organization ensure that it has the talent in place - the capability - to
execute on its strategy?
FOR LEADERS ONLYI N P U R S U I T O F E X C E L L E N C E
Part Two
Developing a "talent mindset" is based on the belief that:
a) talent is a positive differentiator for the
organization and individuals
b) that it can be developed, and that it leads to reaching current and future goals.
FOR LEADERS ONLYI N P U R S U I T O F E X C E L L E N C E
Part Two
A Talent Mindset is founded in the belief that people are the primary driver
for success.
It is proactive rather than reactive.
FOR LEADERS ONLYI N P U R S U I T O F E X C E L L E N C E
Part Two
FOR LEADERS ONLYI N P U R S U I T O F E X C E L L E N C E
Part Two
Organizations need a business process that drives performance at both the organizational and individual level with emphasis on aligning competencies with
business goals.
The first step to improving Workforce ROI through organizational capability is focus.
Where should attention be placed to make a difference?
FOR LEADERS ONLYI N P U R S U I T O F E X C E L L E N C E
Part Two
The key to productivity gains for an organization is to manage the performance variance at the pivot points:
Strategic drivers Strategic competenciesStrategic positions
FOR LEADERS ONLYI N P U R S U I T O F E X C E L L E N C E
Part Two
Organizational competencies are the combination of required skills, necessary information, appropriate performance measures, and the right corporate culture dynamics that is needed to achieve the strategic vision.
FOR LEADERS ONLYI N P U R S U I T O F E X C E L L E N C E
Part Two
Organizational Competencies
Organizational Competencies
Performance
Culture
Information
Skills
What competencies are needed organizationally to deliver against the
strategy?
Case Study Handout
FOR LEADERS ONLYI N P U R S U I T O F E X C E L L E N C E
Part Two
Step One
What positions matter most?
FOR LEADERS ONLYI N P U R S U I T O F E X C E L L E N C E
Part Two
Step Two
These are the pivotal positions. Pivotal positions vary by industry and organization and time.
FOR LEADERS ONLYI N P U R S U I T O F E X C E L L E N C E
Part Two
Pivotal Positions
To identify:
the organization must look across the enterprise and objectively determine which position(s) have the greatest ability to impact (positively or negatively) key business results.
FOR LEADERS ONLYI N P U R S U I T O F E X C E L L E N C E
Part Two
Pivotal Positions
Case Study Part Two
FOR LEADERS ONLYI N P U R S U I T O F E X C E L L E N C E
Part Two
Identifying pivotal positions supports organizations to:
• Concretely determine which positions contribute the most to organizational success
• Focus development resources on these strategically valuable positions
• Determine the starting point for investing to increase workforce ROI
FOR LEADERS ONLYI N P U R S U I T O F E X C E L L E N C E
Part Two
Pivotal Positions
Not every employee is equally important in driving your organizational strategy. Different jobs contribute differently to both top and bottom line, and the performance of individuals differentially contributes even more.
Few organizations apply this concept.
FOR LEADERS ONLYI N P U R S U I T O F E X C E L L E N C E
Part Two
Measuring bench-strength is about targeting the variance
in individual / group performance.
FOR LEADERS ONLYI N P U R S U I T O F E X C E L L E N C E
Part Two
Long Term Potential & Learning Agility
Lowest (1-6) Middle (7-8) Highest (9-10)
Current
Performance
Highest (9-10)
7 Deep Professional 8 Utility Professional 9 Consistent Star
Middle (7-8)
4Future
Professional 5 Utility Player 6 Future Star
Lowest (1-6)
1 Take Action 2 Future Utility 3 Rough Diamond
FOR LEADERS ONLYI N P U R S U I T O F E X C E L L E N C E
Part Two
The Performance / Potential Matrix
Development strategy must be based on business strategy and the requirements for effective execution.
FOR LEADERS ONLYI N P U R S U I T O F E X C E L L E N C E
Part Two
Achieving a significant increase in the Workforce ROI for your organization
starts and ends with focus.
FOR LEADERS ONLYI N P U R S U I T O F E X C E L L E N C E
Part Two
Define the strategic drivers to focus the organization’s actions and attention
Define the organizational competencies to focus the workforce on the actions that create competitive advantage for the organization
FOR LEADERS ONLYI N P U R S U I T O F E X C E L L E N C E
Part Two
Define the pivotal positions that will have the greatest impact on organizational execution and performance
Define the competencies most needed for exceptional performance in the pivotal positions
FOR LEADERS ONLYI N P U R S U I T O F E X C E L L E N C E
Part Two
Define the benchstrength of the people in the pivotal positions to determine the skill gaps and focus for investment
Invest and measure
FOR LEADERS ONLYI N P U R S U I T O F E X C E L L E N C E
Part Two
This overall approach builds a solid “People Portfolio”.
You connect strategy to people for the performance you need to achieve
results.
FOR LEADERS ONLYI N P U R S U I T O F E X C E L L E N C E
Part Two
Renewed Energy
Leading with EffectivenessBeing More than the Sum of the Parts
Part Three:
Only 21% of teams are assessed as being effective;
37% are mediocre and 42% are judged as
poor.
*Harvard Business Review
The Challenge
FOR LEADERS ONLYI N P U R S U I T O F E X C E L L E N C E
Part Three
Poor, 42%
Mediocre;
37%
Ef-fec-tive; 21%
Few teams function as well as they could but the stakes are higher with senior teams – lack of effectiveness at the top can slow down or derail an organization.
The Challenge
FOR LEADERS ONLYI N P U R S U I T O F E X C E L L E N C E
Part Three
A real team is more than the sum of its parts …
most top teams are simply work groups where synergy does not create leverage
and the group is the sum of its parts.
The Situation
FOR LEADERS ONLYI N P U R S U I T O F E X C E L L E N C E
Part Three
Increasingly, top teams are essential to the success of the organization. The top team has broader and deeper reach than one leader alone and its performance has a multiplier effect.
The Situation
FOR LEADERS ONLYI N P U R S U I T O F E X C E L L E N C E
Part Three
Often, however, the leadership team is at best a collection of strong individuals who
sometimes work at cross-purposes.
Being seasoned executives with excellent individual performance does not naturally
translate to an effective team.
FOR LEADERS ONLYI N P U R S U I T O F E X C E L L E N C E
Part Three
In most situations, smart people do not make smart teams.
Smart People
Smart People Smart Team
The Situation
FOR LEADERS ONLYI N P U R S U I T O F E X C E L L E N C E
Part Three
The critical question is;
Why can’t a group of sophisticated, experienced, and intelligent professionals come together to create a solid, high-performing top team?
The Situation
FOR LEADERS ONLYI N P U R S U I T O F E X C E L L E N C E
Part Three
Answer:
There are specific roadblocks and obstacles that prevent senior teams to actually work as effective teams and these
issues need to be addressed and resolved.
FOR LEADERS ONLYI N P U R S U I T O F E X C E L L E N C E
Part Three
The power dynamics and intensified political behavior
Members are stars in their own fields – rugged individualism becomes rugged groupism
The spotlight is on them – increased visibility does not encourage open reflection or disclosure
Complexity of the task and the salience of the external environment
FOR LEADERS ONLYI N P U R S U I T O F E X C E L L E N C E
Part Three
How do we bridge the gap between potential and performance?
Potential
Performance
FOR LEADERS ONLYI N P U R S U I T O F E X C E L L E N C E
Part Three
The Four Dimensions of a Successful Top Team
1. Ensure the top team does just the work only it can do … a clear and compelling definition of the performance opportunities and challenges that require collective effort is essential.
The Solution
FOR LEADERS ONLYI N P U R S U I T O F E X C E L L E N C E
Part Three
2. Address team dynamics and processes… clarify expectations for team collaboration and put in place supportive systems and processes to ensure accountability
The Solution
FOR LEADERS ONLYI N P U R S U I T O F E X C E L L E N C E
Part Three
The Four Dimensions of a Successful Top Team
3. Master the performance dimensions needed for success… shared understanding of common goals and values, interactive skill development, and build capabilities to respond to change
The Solution
FOR LEADERS ONLYI N P U R S U I T O F E X C E L L E N C E
Part Three
The Four Dimensions of a Successful Top Team
4. Ensure the right skills are present … capabilities, attitudes, and beliefs needed to meet specific performance opportunities and challenges are more important than title and position
The Solution
FOR LEADERS ONLYI N P U R S U I T O F E X C E L L E N C E
Part Three
The Four Dimensions of a Successful Top Team
• Only 35% of executives say their teams are focused on the right work
• Only 38% of executives feel their teams allocate their time appropriately
• Only 30% of top teams work in productive collaboration
McKinsey and Company 2011
FOR LEADERS ONLYI N P U R S U I T O F E X C E L L E N C E
Part Three
In Practice
You can not just convene a group of people and call them a team
FOR LEADERS ONLYI N P U R S U I T O F E X C E L L E N C E
Part Three
FOR LEADERS ONLYI N P U R S U I T O F E X C E L L E N C E
Part Three
A real team has one essential characteristic –
interdependent work.
Leading theHigh-Performance Top Team
FOR LEADERS ONLYI N P U R S U I T O F E X C E L L E N C E
Part Three
The top team leader’s role requires the wearing of two hats … team member and team leader.
FOR LEADERS ONLYI N P U R S U I T O F E X C E L L E N C E
Part Three
Team leadership is based on balancing two things:
FOR LEADERS ONLYI N P U R S U I T O F E X C E L L E N C E
Part Three
content (what the team is doing – the nature of what is
undertaken)
process (how the work is being performed – the interactions,
relationships, and dynamics as it goes about its work).
The leader of the top team needs to determine the best approach.
The LEAD Style Assessment
FOR LEADERS ONLYI N P U R S U I T O F E X C E L L E N C E
Part Three
Finding the Right Approach
PARTICIPATIVE
DIRECTIVE
NON- PARTICIPATIVE
NON-DIRECTIVE1
3
2
4
FOR LEADERS ONLYI N P U R S U I T O F E X C E L L E N C E
Part Three
FOR LEADERS ONLYI N P U R S U I T O F E X C E L L E N C E
Part Three
The Senior Leader’s Approach
The responsibilities of the top team leader:
•Define the agenda•Clarify meeting objectives•Questioning and testing for understanding•Managing the allocation of time to topics
FOR LEADERS ONLYI N P U R S U I T O F E X C E L L E N C E
Part Three
The responsibilities of the top team leader:
• Calling the question when decisions need to be made
• Summarizing the discussions and results of work
• Identifying next steps and accountabilities
FOR LEADERS ONLYI N P U R S U I T O F E X C E L L E N C E
Part Three
1. What should the team be focused on?2. What is the value-add from working as a team?3. What are the expectations for working together?4. What are the processes needed?5. What are the needed dynamics?
Where is the team now, what are the gaps, and what needs to happen?
The Next Steps
FOR LEADERS ONLYI N P U R S U I T O F E X C E L L E N C E
Part Three
Today’s challenges demand not only great personal effort, but also first-class collective leadership.
Make the investment to build a truly top team.
The Next Steps
FOR LEADERS ONLYI N P U R S U I T O F E X C E L L E N C E
Part Three
Immediate Impact
Focus your thinking and commit to key takeaways
Part Four:
Leaders must always, in every decision and action, put economic performance
first. The organization can justify its existence only by the economic results it
produces.
Paraphrased from Peter Drucker
FOR LEADERS ONLYI N P U R S U I T O F E X C E L L E N C E
Part Four
Leaders must also make work productive and support the worker to achieve. Organizations have only one true resource – people. It performs by
supporting workers to be productive.
Paraphrased from Peter Drucker
FOR LEADERS ONLYI N P U R S U I T O F E X C E L L E N C E
Part Four
Leaders also have a social responsibility for the organization. None of our
organizations exist by itself or are an end in itself.
Paraphrased from Peter Drucker
FOR LEADERS ONLYI N P U R S U I T O F E X C E L L E N C E
Part Four
Leaders are ready for growth.
To achieve growth effectively, organizations need to shift
focus from financial capital and process efficiency to people
performance.
FOR LEADERS ONLYI N P U R S U I T O F E X C E L L E N C E
Part Four
“We have become an employee society”
Peter Drucker
FOR LEADERS ONLYI N P U R S U I T O F E X C E L L E N C E
Part Four
Maximizing employee contribution requires a shift to a
“talent mindset”.
Proactively connecting strategy and people to provide focus, meaning, and
results.
FOR LEADERS ONLYI N P U R S U I T O F E X C E L L E N C E
Part Four
If all of your workforce was ready, willing, and able – what could your business achieve?
Imagine …
FOR LEADERS ONLYI N P U R S U I T O F E X C E L L E N C E
Part Four
Moving Mountains:
The critical driver for performance lies in your ability to put the right people in the right positions and aligning them to your strategy.
FOR LEADERS ONLYI N P U R S U I T O F E X C E L L E N C E
Part Four
Key Insights:
FOR LEADERS ONLYI N P U R S U I T O F E X C E L L E N C E
Part Four
The Bigger Future Session
FOR LEADERS ONLYI N P U R S U I T O F E X C E L L E N C E
Part Four
The Next Steps
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Thank You!
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