Org upgradepresentation cen4-04slidepresentation.ppt
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The document outlines strategies for improving organizational performance through effective talent management, emphasizing the importance of making informed decisions about hiring, promoting, and developing talent. It highlights the need for regular assessments of personnel, accountability for development plans, and aligning performance management with business goals. Key insights include the significance of retaining top talent, addressing performance issues proactively, and implementing structured organizational upgrade processes.
Org upgradepresentation cen4-04slidepresentation.ppt
- 1. Craig Marton Chief Executives Network April 2004
- 2. “The team with the best players wins!” Jack Welch
- 3. “The ability to make good decisions regarding people represents one of the last reliable sources of competitive advantage, since very few organizations are very good at it.” Peter Drucker
- 4. “The toughest decisions for most organizations are people decisions – hiring, firing, promotion, etc. These are the decisions that receive the least attention and are the hardest to UNMAKE.” Peter Drucker
- 5. Questions: • What percent of your time do you spend on your people? • Do you personally know the top talent in your organization? • Do you personally attract / recruit top talent to your organization? • Do you hold leaders accountable for building organization capability?
- 6. Organizational Upgrade & Management Resource Review (MRR)
- 7. A process to continuously upgrade the ability of an organization to achieve greater performance through increasing expectations and skills. Organizational Upgrade NOT a purge system …
- 9. Self Assessment: My team consist of top talent – “I would put my team up against any team!” More than 90% of my external hires are successful I have the bench strength to assure a team of top talent in all key positions three years from now In relationship to competitors I look harder & screen harder for talent I act quickly to confront and resolve performance problems I provide ongoing coaching and development to support top talent as their jobs become more complex I have no chronic poor performers (C-players) I don’t use “short-term results” as an excuse not to create an organization of top performances (Topgrade) I retain my best talent (A-players) by taking their pulse regularly and proactively meeting their needs All under performing employees have plans to become top performers (A-players) I realize that I can make a top performer into a poor performer by over-paying, under utilizing talent, putting people in the wrong job, and failing to develop people People get ahead – are promoted by the merits of their contribution to the organization, not by being part of the “Club” Yes No If you answered “no” to more than 2 or 3 of the questions, you are not Winning through your people
- 10. De-railers … • Sub-par talent will not hire top talent • We think we are hiring top talent, but all we get is a good story teller • I want to bring in better talent, but my current people (culture) reject them • Human resources doesn’t seem to be able to keep the pipeline full (internally or externally) • We can’t afford the best talent • I do not want to fire a loyal “C-player” • We are doing OK against the competition, so don’t need to focus on this “Nothing our company does is more important than hiring and developing SUPERIOR TALENT.” Larry Bossidy
- 11. Key areas of focus • Performance Management – Performance Planning / Goal Alignment – Individual Development Plans – Performance Reviews • Building Organization Capability (MRR process) – Linking People to Business Strategy – Targeted Development … Getting the Right People in the Right Jobs – Accountability Organizational Upgrade
- 12. Goal Alignment / Key Success Factors (KSF’s) Responsibility Issues Metrics 20xx Objectives Key Actions & Timetable Status Notes/Comments • What are the “Key Success Factor’s” that must be addressed to achieve goals? • What are the issues to achieving the KSF’s? • What is “metric” (needle) to be improved? • What is the specific “target” we want the metric to achieve? • What are the specific key actions that must be taken to achieve our goal? • Who is accountable? When will it be done? Success Factor - _______________ Department - _________________
- 13. Individual development plan • Designed to improve employee skills, abilities & performance − Not just for “C” employees … for everyone • Development is targeted to specific areas − First to meet current job requirements − Second to meet future business requirements • Discussed, developed & agreed upon during performance review Organizational Upgrade Employees are accountable for their own development. But, the best managers assure employees get development opportunities.
- 14. Performance reviews • Annually, coinciding with plan year (business cycle) − Unless employee performance dictates otherwise, i.e., “C” employees • Key Success Factors (KSF’s) − Goals, objectives & actions • Competencies, do they correspond with business needs Organizational Upgrade There is a difference between “Performance Management” & “Performance Review”
- 15. Training & development • Conduct departmental / organizational needs assessment • Develop and conduct training plan • Re-assess (audit, etc) Organizational Upgrade
- 16. Organizational Development Plan Developmental Need Action Steps Responsibility Timing • What are the organization’s overall needs? • What will be done to address them? • Who is responsible? • When will it be complete?
- 17. A formalized process which assesses the leadership of an organization, identifies gaps and opportunities for improvement, and identifies specific action items designed to upgrade the organization. Management Resource Review - “MRR” “At the end of the day, you bet on people, not on strategies.” Larry Bossidy
- 18. Key areas of focus • Organizational assessment • Organizational upgrade • Rewards & incentives • Standardize & sustain “MRR” Leadership Strategy Companies full of top talent usually experience little difficulty retaining their best talent.
- 19. “ABC” analysis - definition A = Consistently exceeds goals & objectives. Leads by example. Promotable, or an excellent performer with no known promotional opportunities or interests. B = Meets goals & objectives and may exceed them in some areas. Solid performer. New employee, or experienced professional. C = Job performance not adequate. Notable improvement is necessary to maintain position. Performance improvement plan required. May also represent an employee placement issue. Organizational Assessment Everyone is an “A” player in the right job …
- 20. “ABC” analysis • Evaluate all salaried employees • Develop & implement action plan for “A’s” • Provide regular feedback to, and develop, “B’s” • Develop & implement 90-day improvement plan for “C’s” − Conduct weekly & monthly progress reviews − Terminate if adequate progress is not achieved − If terminated, replace with high performer Organizational Assessment
- 21. Shift in Organizational Strength AC B AC B Current Organization Future Organization Theoretical “Average” Shift
- 22. Talent Profile / Talent Assessment Summary i.e.,“Windowpane” matrix Leadership Assessment Summary POTENTIAL High Promotable Experienced Professional Too New Placement Issue At Standard Exceeds Standard Below Standard At Standard Exceeds Standard Below Standard BEHAVIORS R E S U L T S
- 23. Succession planning • Identifies gaps and risks associated with attrition. • Links developmental action plans for “A” employees ... including where & when. • Managing employee development and/or attrition is the key. Organizational Assessment
- 24. Bench Strength Analysis * T.R. Hanson also ready now for VP - Sale & Marketing Potential Successors Position Incumbent Now 0-2 Years 3-5 Years 5 + Years Female = (F) Minority = (M) Six Sigma (S) Emergency = (E) President VP - Operations VP - Sales & Marketing VP - I/S Dir. - Human Resources Jean Tom Pat Garcia April Kline T.R. Hanson Tony Williams T.R. Hanson * Sally Black (F)(S) Nigel Jones (S) Tony Williams Janet Harkin (F) Chris Green (M) T.R. Hanson Bob Smith Paula Jordan (F) Wendy Olsen (F) Malcolm Davis(M) Peter Chow (M) Jose Garcia (M) Ashok Singh (M) Sally Black (F)(S)Bill Sim (E) Rob Grant (E) External Hire January 20xx
- 25. Key areas of focus • Salary & benefit plan − Formalized grades, salary ranges & descriptions for all positions. − Competitively determine by benchmarking. − Don’t lose good performers due to compensation. • Work climate / environment − Rewards, Recognition & Involvement. … Awards, luncheons, community involvement. … Informal leadership, decision-making roles. Recruiting & Retention
- 26. Cost of ‘Mis’-Hires Problem: 50% of outside manager hires are ‘mis’-hires. • Based on an average base salary $80,000 costs of a typical ‘mis’-hire was $1,800,000 – about 24 times base compensation. • 54 responses to survey – ½ Division Presidents or Above. • ROI on a ‘mis’-hire = (500%). Companies included in study: Motorola, General Electric (GE), General Cable, General Signal, AlliedSignal, Con Agra, Gateway, Royal Bank of Canada, R.R. Donnelley, Office Depot, William M. Mercer, DSC Logistics, CompUSA, FMC, Viad, First of America, Carr Gottstein…and others TOPGRADING - Bradford D. Smart, Ph.D.
- 27. MRR Action Plan Action Plan (Organization) (Date) What – Key Actions Who When Organization • • Staffing (open & anticipated) • • Development / Movement • • Training / Education • •
- 28. 1 – Key success factors, linked to organizational priorities & goals 2 – Link compensation to performance (KSF) 3 – “ABC” analysis … always a top & bottom 10% 4 – Organizational assessment 5 – Individual feedback & development plans 6 – Continuous Process 7 – Follow-up and Accountability Summary Steps Constantly increasing expectations achieved through an increasingly capable organization.
- 29. Actions • Get educated about Upgrading. • Get commitment and buy-in from others. • Have a Process, − for Selection of Talent, − for Performance Management, and − for Developing Bench Strength (MRR). • Get the skills you need. • Commit to take action & measure results. • CEO must lead process. WIN with PEOPLE !