for leaders only - may 10, 2011

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


Introduction

Leaders are Ready for Growth

The Top CEO Challenges for 2011 (Conference Board 2011)


Introduction

If all of your workforce was ready, willing, and able – what could your business achieve?

Imagine …


Introduction


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)


Introduction

63% Actual PerformanceLost Potential Performance


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)



Introduction

Leaders need to look internally to improve execution and business growth …


Introduction

The Focus … Moving Mountains

The Top 4 Strategies to Improve Business Results:(Conference Board 2011)


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.


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:


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


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


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.


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.


Part One

One solution …

Hucamentrics


Part One

The new science of tracking and applying human capital

data to predict employee and business performance based

on cause and effect.


Part One

Hucametrics


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


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


Part One

Handout One: Organizational Hucametrics


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.


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.


Part One


Part One

The Performance Curve


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.


Part One

So many C Performers are simply placed in the wrong position, mismanaged, or under

coached.


Part One

Handout Two

Moving the C Performer


Part One

The linchpin for shifting people performance - leadership.

“Better people are not needed for better performance.”

*Peter Drucker


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


Part One

The responsibility of leadership:

Improve managers’ competence and confidence in building people performance and being accountable for the results.


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


Part One

The needed organizational shifts …

• Establish clearly defined but individual performance objectives for all employees

• Link competencies to performance needs


Part One

The needed organizational shifts …

• Provide an individual development plan for each employee

• Improve manager competence and accountability for team performance – coaching skills


Part One

Shifting the performance curve is founded in leadership that measures what matters and invests responsibly with accountability.


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


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.


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


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


Part Two

How does the organization ensure that it has the talent in place - the capability - to

execute on its strategy?


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.


Part Two

A Talent Mindset is founded in the belief that people are the primary driver

for success.

It is proactive rather than reactive.


Part Two


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?


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


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.


Part Two

Organizational Competencies

Organizational Competencies

Performance

Culture

Information

Skills

What competencies are needed organizationally to deliver against the

strategy?

Case Study Handout


Part Two

Step One

What positions matter most?


Part Two

Step Two

These are the pivotal positions. Pivotal positions vary by industry and organization and time.


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.


Part Two

Pivotal Positions

Case Study Part Two


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


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.


Part Two

Measuring bench-strength is about targeting the variance

in individual / group performance.


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


Part Two

The Performance / Potential Matrix

Development strategy must be based on business strategy and the requirements for effective execution.


Part Two

Achieving a significant increase in the Workforce ROI for your organization

starts and ends with focus.


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


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


Part Two

Define the benchstrength of the people in the pivotal positions to determine the skill gaps and focus for investment

Invest and measure


Part Two

This overall approach builds a solid “People Portfolio”.

You connect strategy to people for the performance you need to achieve

results.


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


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


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


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


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.


Part Three

In most situations, smart people do not make smart teams.

Smart People

Smart People Smart Team

The Situation


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


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.


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


Part Three

How do we bridge the gap between potential and performance?

Potential

Performance


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


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


Part Three


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


Part Three


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


Part Three


• 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


Part Three

In Practice

You can not just convene a group of people and call them a team


Part Three


Part Three

A real team has one essential characteristic –

interdependent work.

Leading theHigh-Performance Top Team


Part Three

The top team leader’s role requires the wearing of two hats … team member and team leader.


Part Three

Team leadership is based on balancing two things:


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


Part Three

Finding the Right Approach

PARTICIPATIVE

DIRECTIVE

NON- PARTICIPATIVE

NON-DIRECTIVE1

3

2

4


Part Three


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


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


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


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


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


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.



Part Four

Leaders also have a social responsibility for the organization. None of our

organizations exist by itself or are an end in itself.



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.


Part Four

“We have become an employee society”

Peter Drucker


Part Four

Maximizing employee contribution requires a shift to a

“talent mindset”.

Proactively connecting strategy and people to provide focus, meaning, and

results.


Part Four

If all of your workforce was ready, willing, and able – what could your business achieve?

Imagine …


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.


Part Four

Key Insights:


Part Four

The Bigger Future Session


Part Four

The Next Steps

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