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Building a Building a High-Performance High-Performance Organization Organization Jay J. Jamrog Jay J. Jamrog Sr.
Building a
Building a
High-Performance
High-Performance
Organization
Organization
Jay J. Jamrog
Jay J. Jamrog
Sr. VP Research, i4cp
Sr. VP Research, i4cp
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Enabling High-Performance Organizations™
Enabling High-Performance Organizations TM
Institute for Corporate Productivity i4cp is the fastest growing and largest corporate network focused on
Institute for Corporate Productivity
i4cp is the fastest growing and
largest corporate network
focused on the practices of
high-performance organizations.
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Market Performance Index (MPI)

 

High-Performance Organizations (HPO) outperform their competitors over time.

 

1. Revenue growth

 

2. Market share

2. Market share  
 

3. Profitability

4.

Customer satisfaction

  3
 

3

Building a High-Performance Organization

HR Programs and Activities Study

Maybe you know one of the following HR activites

 
 

HR activities

Decentralized HR generalist supports BUs

 

Admin processes centralized in shared services

There is a low HR / Employee ratio

 

HR “advise” is available on-line

Maybe you think that these activities make the change and make you a better market performer

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5

HR Programs and Activities Study… But this is not true We found no significant correlation
HR Programs and Activities Study…
But this is not true
We found no significant
correlation with market
performance
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HR Programs And Activities Study… - These HR activities do not make you a better
HR Programs And Activities Study…
-
These HR activities do not make you a better market
performer
- These activities are your foundation
- You have to do them well in order to get to the next
level
- They are your „homework“
This also means: If you don‘t do these activities well, this can have
a negative impact on your market performance !!!
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HR Programs And Activities Study…
Market
performance
Highest positive
correlation with market
performance
Provides HR
Drives
data to
change
support
management
Admin
change
processes
Decentralized
management
HR
centralized
HR generalist
There is a
low HR /
Employee
ratio
“advise” is
in shared
supports BUs
available
services
on-line
Most important HR activites:
-
Drive data in order to make better decisions
-
Drive change management
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Move from Inside-out to Outside-in The Common Approach to HR: Inside (HR) – Out (business)
Move from Inside-out to Outside-in
The Common Approach to HR:
Inside (HR) – Out (business)
Traditional
Articulate how
HR practices,
processes,
what we do
adds value to
and
the business
systems
Communicate
to the business
what a good
job we are
doing
A Better Approach to HR:
Outside (business) – In (HR)
Identify the
business
model
components
and areas to
drive value
Develop an
HR strategy
to execute the
business model
with relevant
metrics
Use the metrics
to demonstrate
or prove how
we are driving
business
performance
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Source: Pat Wright, Cornell University
HR Programs and Activities Study…
 Let‘s remember what we‘ve just learnt:
In other words
1. Identify what the organization needs
2. Develop a strategy to execute on what the organization needs
3. Use the metrics to demonstrate or prove how we are driving
Business performance
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HR Programs and Activities Study

HR Programs and Activities Study … What drives the value / What do organizations need based

What drives the value / What do organizations need based on our research?

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What Drives Value? High Performance Organizations excel in: 1. Strategy 2. Leadership 3. Talent 4.
What Drives Value?
High Performance
Organizations excel in:
1. Strategy
2. Leadership
3. Talent
4. Culture
5. Market
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Strategy

All employees need to understand

the importance of the strategy

what it means for their

job

and buy into the strategy

All employees need to understand the importance of the strategy what it means for their job
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13

Strategy

 

Rank

Corr. with market performance

Our Company strategy is…

 

1 Highest

Consistent

1 Highest Consistent

2 Higher

Widely Understood

3 Higher

Aligned w/Exec Behavior

4 High

Frequently Discussed

5 High

Aligned w/our Structure

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According to the Strategy Execution and Alignment Study… 15 High-Performance Organizations Execute the Strategy
According to the
Strategy Execution and
Alignment Study…
15
High-Performance
Organizations
Execute the Strategy Faster
16 16
Not easy! • “… it is not the lack of a strategy that causes [Senior
Not easy!
• “… it is not the lack of a strategy that causes
[Senior Executives] to lose sleep, but rather their
organization’s inability to execute against a
strategy… ”
• “Having a great strategy is no longer enough – lots of
companies can develop great strategies. To win,
companies must be able to turn great strategy
into great performance. In short, they must
be able to execute.”
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Execution is about building Alignment Fast – Logical ! Strategy Slow… And follows a different
Execution is about building Alignment
Fast –
Logical !
Strategy
Slow…
And follows a
different logic…
People
Operations
Fast –
Logical !
High Performance depends on people alignment,
Yet this is the hardest element to align!
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Alignment Requires Consistency

 Consistency helps determine success.

Consistency helps determine success.

 Clear visions supported by flexible and achievable strategic plans.  Clearly articulated philosophies that
 Clear visions supported by flexible and achievable strategic plans.  Clearly articulated philosophies that
 Clear visions supported by flexible and achievable strategic plans.  Clearly articulated philosophies that

Clear visions supported by flexible and achievable strategic plans.

Clearly articulated philosophies that set standards for everyone’s behavior.

 Everyone behaves consistently with the strategic plan and the company’s philosophy.
 Everyone behaves consistently with the strategic plan and the company’s philosophy.

Everyone behaves consistently with the strategic plan and the company’s philosophy.

everyone’s behavior.  Everyone behaves consistently with the strategic plan and the company’s philosophy. 19
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Leadership

Leaders, at all levels, need to have the right

style and behaviors

to create alignment throughout the workforce.

Leaders, at all levels, need to have the right style and behaviors to create alignment throughout
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Leadership

 

Rank

Corr. with market performance

Our Leaders are good at…

1 Highest

Communication of goals

1 Highest Communication of goals

2 Highest

Culture

3 Employee-Centric Innovation

Highest

4 Higher

Decision-Making

5 High

Customer Knowledge

  21
 

21

 

7 Keys to

 

Leadership Development

     

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7 Keys to Successful Leadership Development

1. 2. 3. 4.
1.
2.
3.
4.

Senior Management involved Dedicated resources to LD Breadth and depth of talent reviews Transparency

Consistency and structure

5. 6. 7.
5.
6.
7.

Meaningful developmental experiences Motivation and Retention Accountability

Consistency and structure 5. 6. 7. Meaningful developmental experiences Motivation and Retention Accountability
Consistency and structure 5. 6. 7. Meaningful developmental experiences Motivation and Retention Accountability
23 23

23 23

Keys for Effective Leadership 24 24
Keys for Effective
Leadership
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Four Domains of Leadership Strength

The Four Domains of Leadership Strength

Examples of each dominant strength

Executing

Makes things happen disciplined, high achieving, deliberative and focused

Influencing

Reaches a broader audience, makes sure the group is heard self assured communicator, convinced of the significance of the team’s goals

Relationship Building

Uses strengths of empathy, connectedness and individualization to create synergy within the group

Strategic Thinking

Focus on what could be, help the team make better decisions by synthesizing and analyzing information

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Leadership Competencies

Leadership Success Index

Market Performance Index (MPI)

13 of 46 standard Leadership Competencies were found to be predictive of Leadership Success:

Only 5 of the competencies listed were found to be predictive of Market Performance:

Strategy development

Sales

Business ethics

Role model for organizational values

Strategy execution

Negotiation skills

Decision-making sciences

Business writing skill

Knowledge of the customer

Hiring talent

Creating an environment of trust and respect

Coaching skills

Community involvement

Role model for organizational values

Emotional intelligence

Developing other leaders

Change management skills

Hiring talent

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Leadership Competencies

Leadership Success Index

Market Performance Index (MPI)

13 of 46 standard Leadership Competencies were found to be predictive of Leadership Success:

Only 5 of the competencies listed were found to be predictive of Market Performance:

Strategy development

Sales

Business ethics

Strategy execution

 Role model for organizational values
 Role model for organizational
values

Decision-making sciences

Knowledge of the customer

Negotiation skills

 Business writing skill  Creating an environment of trust and respect  Hiring talent
 Business writing skill
 Creating an environment of trust and respect
 Hiring talent
 Coaching skills
 Community involvement
 Role model for organizational values

Emotional intelligence

Only 2 Leadership Competencies studied were predictive of both Leadership Success and Market Performance :

Developing other leaders

Change management skills

 Hiring talent
 Hiring talent

Role Model for Org Values

 

Hiring Talent

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Why Do People Follow?

The 4 Basic Needs of a Follower

Benefits

 

Trust

Engagement

Speed and efficiency

Compassion

Retention

Engagement

BOTH Customer and Employee

Individual productivity

Profit

Stability

Efficiency

Engagement

Hope

Engagement

Confidence

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28

 

Talent

 

The right:

  The right:
 

People

skills

behaviors

place

things

 

Right?

   

29

 

Market Performance Index (MPI)

 

High-Performance Organizations (HPO) outperform their competitors over time.

 

5 Years:

 

1. Revenue growth

  1. Revenue growth

2. Market share

3. Profitability

4. Customer satisfaction

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30
30

30

Talent

Rank

1

2

3

4

5

Correlation with

market

performance

Highest

Higher

Higher

High

High

Our employees are…

Highly Engaged

Here for a long time

Compensated fairly and based on performance

Supported in their Talent Development

Part of an Integrated TM System

time Compensated fairly and based on performance Supported in their Talent Development Part of an Integrated
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According to the

According to the Integrated Talent Management Study … 32

Integrated Talent Management Study

32

32

The State of Talent Management Is Not Good

 

To what extent does your organization have systematic Talent Management practices?

To what extent does your organization have systematic Talent Management practices?
 

Who answered…

 

To a Very High Extent

To a High Extent

25%

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But, Having an Integrated TM Process is Positively Correlated with Market Performance I agree to
But, Having an Integrated TM Process is
Positively Correlated with Market Performance
I agree to a high or very high extent that…
Correlation
Percent indicating high or very high extent
with MPI
Leaders see integrated talent management as
Higher
vital to organizational success
We have processes in place to align talent
Higher
management to business goals
Our voluntary turnover rates among high-
performing employees is lower than the industry
High
standard
Highest
Our processes and policies support integrated
talent management
We effectively integrate the components of
talent management
Highest
Market Performance
Indicator Score (MPI)
Higher Performers
Lower Performers
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But, Having an Integrated TM Process is Positively Correlated with Market Performance I agree to
But, Having an Integrated TM Process is
Positively Correlated with Market Performance
I agree to a high or very high extent that…
Correlation
Percent indicating high or very high extent
with MPI
Leaders see integrated talent management as
Higher
vital to organizational success
We have processes in place to align talent
Higher
management to business goals
Our voluntary turnover rates among high-
performing employees is lower than the industry
High
standard
Highest
Our processes and policies support integrated
talent management
We effectively integrate the components of
talent management
Highest
Market Performance
Indicator Score (MPI)
Higher Performers
Lower Performers
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How Do We Measure the Success of Integrated Talent Management Practices?

Correlation with

Market Performance

Predictor!
Predictor!

High

Highest

Higher

High

         
         
         
         
         
         
         
         
         
         
         
         
   
   
   
         
         
 
 
 
         
         
   
   
   
Correlation with Market Performance Predictor! High Highest Higher High          
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36

36

…so… 37
…so…
37
Integrated Talent Management Model SWP provides direction and ensures alignment The EVP serves as an
Integrated Talent Management Model
SWP
provides
direction
and ensures
alignment
The EVP
serves as an
anchor
38
Which Components are most closely Integrated? (2-way measurement) Talent Management Integration Scores * 414.4
Which Components are most closely
Integrated? (2-way measurement)
Talent Management Integration Scores *
414.4
Performance Performance Management Management
Individual
388.9
Leadership
360.4
High Potential
321.8
Learning
298.1
…We compared High and Low Performers. The gap
Succession Management
272.9
between how integrated they viewed PM was the
highest for any component
Compensation
243.9
Engagement
226.6
419.8
350.1
Recruitment
166.4
Market Performance
Indicator Score (MPI)
Higher Performers
* Please see the notes section for an explanation of how the Talent Management
Integration Scores were calculated.
Lower Performers
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Performance Management is the Most Strongly Integrated Component

The Integration Scores illustrate how Performance Management feeds many other components of Talent Management.*

What does this mean?

What does this mean?

An ineffective Performance Management process will impact (negatively!) other aspects of Talent Management.

A Performance Management process that does not make effective use of data provided by other Talent Management processes will almost always be inferior.

* Please see the notes section for an explanation of how the Talent Management Integration Scores were calculated.

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…and according to the Performance Management Study… 41
…and according to the
Performance Management
Study…
41

High-Performance Organizations Understand the Power of Performance Management

At our company…

Correlation

with market

performance

Percent indicating high or very high extent

75%

52%

52.2%

 

61%

43.6%

44%

55%

36.3%

36%

52%

27.2%

27%

47%

25.6%

26%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

Highest

High

Higher

Higher

Higher

80.0%

Our leaders consider performance management

to be vital to organizational success

Individual performance goals are aligned

with organizational goals

Performance management has a

positive business impact

Performance management processes

contribute to individual performance improvement

Our performance management processes

promote the desired behaviors

Market Performance Indicator Score (MPI)

Higher PerformersMarket Performance Indicator Score (MPI)

Lower Performersmanagement processes promote the desired behaviors Market Performance Indicator Score (MPI) Higher Performers

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The Nine Keys to Effective PM

1. 2. 3. Includes developmental plans for the next period Training is provided (for managers)

1.

2.

3.

Includes developmental plans for the next period

Training is provided (for managers) on conducting a performance appraisal meeting

(for managers) on conducting a performance appraisal meeting The quality of performance appraisals is measured 4.

The quality of performance appraisals is measured

4. A system is in place to address and resolve poor performance 5. Information other
4. A system is in place to address and resolve poor performance
5. Information other than that based solely on the judgment of
managers
6. Process is consistent across the organization
of managers 6. Process is consistent across the organization 7. Feedback is provided more often than

7. Feedback is provided more often than once a year

8. 360 or multi-rater feedback is used to support the process 9. Ongoing goal review

8. 360

or multi-rater feedback is used to support the process

9. Ongoing goal review and feedback from managers

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According to the

9. Ongoing goal review and feedback from managers 43   According to the Engagement Study …

Engagement

Study

   

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Which Side Are You On?

Selection Criteria…

1.

Has passion for work

1.

Intelligent

2.

Has positive attitudes toward peers and customers

2.

Confident in work abilities

3.

Has desire to set and achieve goals

3.

Has excellent job skills

 

4.

Has positive attitudes

4.

Adaptable

toward peers and customers

5.

Intelligent

5.

Emotionally mature

6.

Confident in work abilities

6.

Has passion for work

 

7.

Has desire to set and

7.

Has excellent job skills

achieve goals

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Engagement Starts With Recruitment

Selection Criteria…

 

Engaged

Disengaged

1.

Has passion for work

1.

Intelligent

2.

Has positive attitudes toward peers and customers

2.

Confident in work abilities

3.

Has desire to set and achieve goals

3.

Has excellent job skills

 

4.

Has positive attitudes

4.

Adaptable

toward peers and customers

5.

Intelligent

5.

Emotionally mature

6.

Confident in work abilities

6.

Has passion for work

 

7.

Has desire to set and

7.

Has excellent job skills

achieve goals

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Engagement Starts With Recruitment

Selection Criteria…

 

Engaged

 

Disengaged

1.

Has passion for work

1.

Intelligent

5.

Intelligent

 
 

6.

Has passion for work

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Engagement Starts With Recruitment

Selection Criteria…

 

Engaged

Disengaged

1.

Has passion for work

1.

Intelligent

2.

Has positive attitudes toward peers and customers

2.

Confident in work abilities

3.

Has desire to set and achieve goals

3.

Has excellent job skills

4.

Adaptable

 

5.

Intelligent

 
 

6.

Has passion for work

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Five Keys to Building Engagement 1. Make engagement a leadership priority at all levels –
Five Keys to Building Engagement
1.
Make engagement a leadership priority at all
levels – especially for supervisors
2. Actively promote engagement
3. Recognize and reward engagement
4.
Build it into other talent management
practices
5.
Build a learning culture
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Culture

Culture Values and beliefs match the strategy 50

Values and beliefs match the strategy

50

50

Culture

Rank

Corr. with Market Performance

1 Highest

Our culture is…

Responsive to the market

2 Higher

Ready for new challenges

3 Invested in talent management

Higher

4 This is a good place to work”

High

5 Committed to Innovation

High

Invested in talent management Higher 4 “ This is a good place to work” High 5
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According to the

According to the Managing Corporate Culture Study … 52

Managing Corporate Culture Study

52

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What is a Pervasive Culture?

Consistent

Porous

Permeates the entire organization

“Brand identity the world sees is consistent”

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4 Keys to Building a Pervasive Culture

1. Expect external challenges/drivers
1. Expect external challenges/drivers

2. Emphasize "this is a good place to work"

3. Work/life balance most linked attribute of a pervasive culture

Leaders who “use an empowerment style to
Leaders who “use an empowerment style to

4.

direct employeesMost often create both pervasive culture and high market performance.

style to 4. direct employees ” Most often create both pervasive culture and high market performance.
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Market / Customer Focus

All employees:

Support customer relationships

Understand customer needs

Market / Customer Focus All employees: Support customer relationships Understand customer needs 55
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Market / Customer Focus

Rank

Corr. with Market Performance

At our company we…

1 Try to exceed customers’ expectations

Highest

Higher

Higher

Higher

High

Do a good job at assessing customers

2 future needs

3 Build processes and systems to best

meet the needs of the customer

4 Are organized in order to maximize

customer value

5 Strive to be best at providing value for

our best customer

6.1

5.0

6.1 5.0
6.1 5.0

5.5

4.1

5.5 4.1
5.5 4.1

5.3

3.9

5.1

3.7

Average score of6.1 5.0 5.5 4.1 5.3 3.9 5.1 3.7 high performers Average score of Low Performers 6.0

high performers

Average score of6.1 5.0 5.5 4.1 5.3 3.9 5.1 3.7 Average score of high performers Low Performers 6.0

Low Performers

6.0

4.9

6.0 4.9
6.0 4.9
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Market Performance Index (MPI)

High-performance organizations (HPO) outperform their competitors over time.

5 Years:

1. Revenue growth

2. Market share

3. Profitability

4. Customer satisfaction

their competitors over time. 5 Years: 1. Revenue growth 2. Market share 3. Profitability 4. Customer
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According to the

According to the Innovation Study … 58

Innovation Study

58

58

Growing Importance of Innovation 59
Growing Importance of Innovation
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6 Questions… 1. What does innovation mean? 2. How do we identify and select the
6 Questions…
1.
What does innovation mean?
2.
How do we identify and select the best new ideas and
make a quick – go/no-go decision?
3.
How do we measure success?
4.
Are leaders prepared to drive innovation within their
organizations?
5.
What does talent with a propensity toward innovation look
like?
6.
What does it take to recruit, retain and keep engaged
passionate, talented, innovative people?
60
According to the Customer Focus Study… 61
According to the
Customer Focus
Study…
61
Build Customer Focus Into the Culture • Culture of accountability makes a good organization great
Build Customer Focus Into the Culture
• Culture of accountability makes a good
organization great and a great organization
unstoppable.
Employees will take no better care of customers
than they receive from leadership!
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Forge Strong Values and Beliefs

•

Internal beliefs make a difference because such beliefs often correlate well with actual customer satisfaction.

often correlate well with actual customer satisfaction. Get to know customers personally. You will begin to

Get to know customers personally. You will

begin to understand them and have a vested interest in that person and seeing that their needs are met.

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Conclusion

 

If your company displays

 

1.

Strategy- cohesiveness and consistency

2.

Passionate leaders that walk the talk

3.

Talent aligned to the strategy

4.

A culture that is aligned with the strategy

5.

A strong external focus on the market

you will:

 
 

be a high performance organization

execute strategy faster

create a competitive advantage.

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Jay Jamrog Jay.Jamrog@i4cp.com 727-345-2226 i4cp.com © 2012 Institute for Corporate Productivity, Inc. Member companies

Jay Jamrog

Jay.Jamrog@i4cp.com

727-345-2226

i4cp.com

© 2012 Institute for Corporate Productivity, Inc. Member companies may reproduce and distribute this file

© 2012 Institute for Corporate Productivity, Inc. Member companies may reproduce and distribute this file on an unlimited basis to their employees for internal management purposes only. Nonemployees may not be given copies of or access to i4cp’s reports, online services or conference materials.

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