Raising the Talent Bar

PCBC

Bill Carpitella

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Agenda

• Introduction

• Aligning Strategy, Values and Leadership

• Defining Competencies

• Recruiting the “Right” People

• Hiring for Success

• New Hire Orientation

• Leadership Development

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• Link organizational results with finding, developing and promoting the right people

• Change thinking about traditional people processes

• Link strategy, vision and values to organizational capacity to deliver – now and over time

Workshop Objectives

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Objectives: Laying the Groundwork

• Define competencies and their importance in generating results, selection and development

• Introduce “success profiles” and how to use them to align selection, development and promotion

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Objectives: Defining the Talent

• Maximize success of recruiting and selection process, either internally or externally. Understand implications of hiring the “wrong” person.

• Utilize an interviewing technique that will greatly improve your chances of selecting the right person.

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Objectives: Finding & Growing the Talent

• Get new hires off to a good start with a powerful orientation process designed to: – reduce turnover

– establish clear expectations

– help new employees deal with contradictions

• Introduce a process that requires every leader in your organization to understand and own the development of their talent

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Achieving Objectives

• Engage and participate in your learning

• Ask questions at the end of the workshop

• Extend your learning past the conference

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Why Investing Time, Money and Effort in Your People is Good Business

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Top 10% Bottom 10%

Research on the Best/Worst Companies at Managing People

Market Value to Book Value 11.06 3.64

Sales / Employee $617k $158k

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Top 10% Bottom 10%

Have formal grievance process 95% 59%

Perform employee survey regularly 58% 5%

Provide formal compensation plan 96% 47%

People Practices: Best/Worst Companies

Give performance appraisals 96% 60%

Provide performance appraisal objective 63% 13%

Fill jobs internally 53% 31%

Provide formal staffing plan 48% 3%

Companies…

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Top 10% Bottom 10%

People Practices: Best/Worst Companies

New hire training hours 38 hours 5 hours

Experienced employee training hours 23 hours 4 hours

Employee turnover 21% 34%

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Management focused on reducing HR costs 2.40 5.01

Best/Worst Companies: 1-6 Point Scale

Aligned with business strategy 5.06 1.84

Visionary leaders 5.24 2.73

Clear mission 5.03 1.90

Job security 4.59 2.40

Top 10% Bottom 10%

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Action

Upgraded 20 of 40 Plant Managers

Results

Profitability increased from $20 Million to $80 Million in 2 years

Case Study: Georgia Pacific

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What’s the Payoff for Investing in Individual Performance?

There’s a 97% difference in performance between below-average and good performers

PERFORMANCE

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What Is One Standard Deviation Worth?

Non-sales Jobs 19-48%

Sales Jobs 48-120%

Engineering/Construction Managers 47%

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Integrated HR Systems

Sophistication of HR Systems – Percentage

390K

370K

350K

330K

310K

290K

Mar

ket

Val

ue/

Em

plo

yee

Catch Up

Typical

Best Practices Aligned

Integrated

0 10 20 30 40 50 60 70 80 90 100

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Changing Our Thinking About People in the Workplace

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What Keeps us from Raising the Bar?

• Traditional worker/management model

• Repetitive, easily defined tasks

• Bell curve that makes “average” accepted

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Traditional Performance Expectations

The meaning of excellence varies per your company

Employees follow the bell curve

10% Excellent85% Average5% Poor

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3 Major Components

KUS

Abilities

Passion

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What Does Excellence Look Like?

High Performers have the:

Knowledge Know what to do

Skills Have the right skills or know how to get them

Understanding Understand why it is important to the success of the company

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Abilities of High Performers

Intellectual Emotional Physical Spiritual

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Passion

• Organization success

• Team success

• Personal success

HPs:

Take great satisfaction

from their work. First to

arrive and last to leave.

Inspire others to perform

at their best. Demand

excellence from the

team. Take pride in

working for a great

company.

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Defining Shared Strategy

Find and keep great

people

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Defining Shared Strategy

Participants get clear on:

• Key stakeholders

• Where they want their company to be

• How they want to behave in getting there

• Where they are going to operate

• Who their customer is going to be

• What their product offering is

• How they will win

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Participation: Why?

Widespread involvement in creating strategy helps to:

• Solicit multiple viewpoints

• Understand what’s important

• Develop abilities

• Ignite passion

“It’s better to have them

inside the tent ‘spitting’

out than outside the

tent ‘spitting’ in.”

Lyndon Johnson

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FastTrack™ Conference Structure

• Review the past

• Explore the present– Stakeholders

– Scope

– Values/operating principles

• Create ideal design

• Develop common ground

• Develop strategy

• Make action plans

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Strategy Translation Activity

What is your company’s strategy? Values?

What capabilities do you need to make it work?

OrganizationalCapabilities

CompetenciesStrategy& Values

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Understanding Relationship of Competencies to Results

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What is a Competency?

Competency: a behavioral skill that focuses on how people do something rather than what they do.

It is not:

• A technical or clinical skill

• An organization capability

• A cultural or leadership value

• A task or an outcome

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Can You Develop Behavioral Skills?

• Gallup says you should not waste your time (focus on selection)

• Lominger says it depends. Not all behaviors are equally difficult to learn.

We say… use both

Action oriented easy

Motivating others moderate

Patience harder

Understanding others hardest

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Do Behavioral Skills Drive Performance?

Answer: Some do and some don’t

• Drive for Results

• Customer Focus

• Motivating Others

• Conflict Management

• Perseverance

Yes

• Listening

• Compassion

• Approachability

• Ethics & Values

• Humor

No

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Implications

• Hire for behavioral skills that:– Are hardest to learn

– Correlate to performance

• Develop behavioral skills that:– Are easiest to learn

– Correlate to performance

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Getting Started: Create “Success Profiles”

• Define combination of behaviors and skills observed in your high performers for each job or level

• Model after your best

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Activity: Competency Card Sort

Directions:

1. Individually, sort competency card deck into three piles:

– 22 competencies most important to the position of VP of Sales in your company

– 23 competencies that apply but are less important

– 22 competencies that do not directly apply or are not particularly useful

2. As a group of three tables, record each individual’s top 22 competencies on the poster.

3. As a group, select the 20 competencies most directly tied to success.

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Foundation for Excellence

Use Success Profiles to:

• Interview

• Manage Performance

• Train and Develop

• Promote

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Recruiting for the Business, Not Just the Position

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The Right Person, Not the Best Person

OrganizationalEffectiveness

Culture

People Strategy

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Finding the Right Person

• What cultures attract high performers?

• What do candidates perceive about your culture?

• How do you find people who suit your existing culture?

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Knowing What You’re Looking For

• Avoid generic job descriptions that focus on price-of-entry skills– Often based on last employee (successful or not)

• Tie strategy and culture to job description

• Consider what kind of person suits the culture– What qualities do high performers share?

– What will it take to meet short term objectives? (6mo–1yr)

– What would excellence in this position look like?

• Build on success profiles

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Implications for Hiring

• Once you know who you’re looking for, how do you select them?– “Gut feel” is only 2% better than flipping a coin

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Why Not Hire For Experience

• May have learned wrong attitude/ behavior from an inferior competitor. Retraining is more difficult.

• Harder to change behavior than train for experience.

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Why Not Hire For IQ

• Intelligence doesn’t predict long-term success.

• IQ is the “price of entry”

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Hiring the Right People Question

What makes the difference in high performance people?

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Answer

IT IS NOT• Experience• Technical/functional Skills• IQ

IT IS• Attitude/Behavior• EQ (common sense)

Common sense is twice as predictive of success as IQ

Hiring the Right People

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Conclusion: Why Hire For Attitude

• Attitude and behaviors get employees in trouble – not technical/functional skills

• Behavior is harder to change/train in most cases

• Can you name a company that hires for attitude?

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Assessing Behavioral Skills in Hiring

• Behavioral-Event Interviewing dramaticallyimproves hiring decisions

• Lominger Interviewing Express provides tool to help even novice interviewers improve their skills and interpret candidates’ answers

Research Shows:

Casual, 1-on-1 interview .20

Reference checks .26

Assessment centers .36

Panel interviews .37

Ability testing .53

Behavioral structured interviews .70

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Interview Activity

• Conduct Structured Behavior-Event Interview– Lominger Interviewing Express

• As a group of three, split into roles:– Interviewer

– Interviewee

– Observer

• Interviewee chooses one of 3 roles:– Person who knows or has seen the behavior

– Person who can demonstrate they’ve experienced it

– Person who has adapted it to a new situation

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Orienting Staff – A beginning, not an end

Panel discussionExperiences in typical and exceptional orientations

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What Have We Learned About Developing Adults?*

• Behavioral skills get people in trouble

• 70% of adult learning is through experience

• 40-60% of performance success correlates directly to behavioral skills

*Center for Creative Learning studies

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How to Develop Behavioral Skills

• Focus first on honest feedback and improved self-awareness

• Adults learn by doing (experience). They must be coached to try new behaviors during daily interactions.– The best way is stretch assignments (reaching out of

comfort zone)

• Simply imparting new knowledge changes nothing

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What Are Today’s Leaders Good At?

• Drive for Results

• Action Oriented

• Decision Quality

• Customer Focus

• Ethics and Values

• Perseverance

• Problem Solving

• Approachability

What’s Missing?

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Today’s Leaders Need to Develop…

• Dealing With Ambiguity

• Motivating Others

• Building Effective Teams

• Personal Disclosure

• Self Knowledge

• Developing Direct Reports

• Conflict Management

• Directing Others

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Challenges for Supervisors

• Tend to hold on to marginal talent too long– Don’t like confronting direct reports or giving tough feedback

• 30% of employees are blocked learners (resist all change)

• Out of 67 leadership skills, developing direct reports is dead last in skill level

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Developing the Individual Isn’t Enough

• Organizational processes are needed to hold leaders accountable for upgrading their talent

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Solutions For Upgrading Your Talent

• Create “success profiles” modeled after your best people

• Create an annual talent review process that requires you to force rank your talent on both performance and potential

• Hire for behavioral skills not just functional/technical skills

• Include behavioral skills in performance management

• Consider a 360° confidential multi-rater feedback process for high potentials. Require written plans targeting individual development.

• Provide coaching, mentoring and follow-up for high potentials

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Performance/Potential Matrix

7 8 9

4 5 6

1 2 3

Performance

Po

ten

tia

l

Use This Matrix to Support Your Talent Review Process

9 High Potential

1 Serious Performance Issue

3 Seasoned Pro

7 “Head-scratcher”

High performance, high potential

Low performance, low potential; move out of organization

High performance, low potential. Great in current position, coaching

Low performance, high potential; may be in wrong position; worth addressing

Determining Intervention:

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Conclusions

• The tactical, strategic and economic impact of people systems can be significant

• Focusing on your staff’s performance can be profitable and drive revenue– Excellence as an expectation

• Aligned people systems add to the bottom line

• Hire for attitude – train for skill

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Questions?

• Research

• Strategy

• Competencies

• Recruiting

• Hiring

• Orienting

• Developing