Creating Transferrable Wealth Through Strengths and Engaged Management

1. Creating Transferrable WealthThrough Strengths and Engaged Management Jim Downing, PhD Executive Leadership Resources, Inc. January 2, 2013

2. Purpose of a Business

3. Engaged Management Process Overview Engaged Employees, led by Great Managers, resulting in Engaged Customers/Clients, leading to Profitable, Sustained Growth and Enhanced Transferrable Value

4. Gallup Research Based Process • Over 30 years of research • Millions of employees surveyed • Thousands of companies analyzed • 80,000 managers polled

5. Gallup Research Questions • “What do the most talented employees need from their workplace?” • “How do the world’s greatest managers find, focus and retain talented employees?”

6. Gallup Research Findings • 28% of employees are “engaged” • 53% of employees are not “engaged” • 19% of employees are actively “disengaged”

7. So What? • On engagement scale, compared to bottom-quartile companies, top-quartile companies had: 12% higher customer satisfaction 18% higher productivity 16% higher profitability Also, 37% lower absenteeism 27% less theft 49% fewer safety incidents 60% fewer quality issues

8. What Engages Employees? • Direction - - What is organizational mission or purpose. • Focus on Strengths - - Put the right people on the team • Based on strengths, proper employee utilization - - Put the right people in the right positions. • Monitor, measure and adjust as necessary - - Keep score

9. Direction • Mission or purpose statement • What market is addressed • What is offered to that market • What makes you different Vision Internal, aspirational statement of goals Strategy Broad statement of how mission and vision will be achieved

10. Focus on Strengths • Primary component of Engaged Management Process • Strength = Talent x (Knowledge + Skills) • 34 identified talent themes or strengths/ top 5 most important • “Strengths Finder 2.0” by Tom Rath • Same top 5: 1 in 278,000/same order of top 5: 1 in 33 million • Manage to strengths – do NOT correct weaknesses

11. Benefits of Strengths Approach • Provides insights into you and your team • A non-threatening language for discussing “people” issues • Provides direction for team building • Provides cues for building high-energy culture

12. Proper Employee Utilization • Describe positions in terms of strengths • Compare best employees and worst employees on strengths criteria to guide position description • Use business intuition and judgment

13. Monitor, Measure and Adjust • Sustainability of system is crucial • Gallup 12 questions of employee engagement • Constantly monitor and adjust as necessary

14. Engaged Customers/Clients • Not just purchasers or users or references, BUT • Active loyal advocates • Systematic, constant communication and interaction with clients and customers • Formal and informal research

15. Sustainable, Profitable Growth • Clear, challenging goals that are communicated to all employees • Consistent with mission, vision and strategy • Key performance indicators • Monitor, measure and adjust

16. Elements of Transferrable Value • Decision-Making Management Team • Owner Independency • Effective Financial Systems and Controls • Compelling Business Plan • Customer Diversification • Intellectual Property • Scalable Systems

17. Suggested Next Steps • Thoughtfully create mission, vision and strategy • Benchmark current employee engagement level • Describe positions in terms of strengths • Assess employee strengths and compare to position

18. Conclusion • Purpose of business is to create transferrable value • Research shows that Engaged Management Process leads to enhanced transferrable value • Clear mission/vision/strategy • Engaged employees, led by • Great managers, results in • Engaged customers, leading to • Profitable, sustained growth, and • Enhanced transferrable value