Organizational Upgrade - CEN Presentation

Are you WINNING with your PEOPLE? Craig Marton

“ The ability to make good decisions regarding people represents one of the last reliable sources of competitive advantage, since very few organizations are good at it.” Peter Drucker

“ 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

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?

Organizational Upgrade & Management Resource Review (MRR)

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 …

Strategic Business Plan Operating Plan Management Resource Review Business Processes

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” If you answered “no” to more than 2 or 3 of the questions, you are not Winning through your people Yes No

Derailers … 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

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

Goal Alignment / Key Success Factors (KSF’s) Responsibility Issues Metrics 2003 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 - _________________

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.

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”

Training & development Conduct departmental / organizational needs assessment Develop and conduct training plan Re-assess (audit, etc) Organizational Upgrade

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?

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

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.

“ 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 …

“ 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

Shift in Organizational Strength A C B A C B Current Organization Future Organization Theoretical “Average” Shift

Talent Profile / Talent Assessment Summary i.e.,“Windowpane” matrix Leadership Assessment Summary POTENTIAL Desired Trend 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

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

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 200x Example

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

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.

MRR Action Plan Action Plan (Organization) (Date) Organization Staffing (open & anticipated) Development / Movement Training / Education When Who What – Key Actions

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.

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 !

Organizational Upgrade - CEN Presentation

More Related Content

What's hot

Similar to Organizational Upgrade - CEN Presentation

More from Craig Marton

Recently uploaded

Organizational Upgrade - CEN Presentation

Editor's Notes