Improving Hiring and Team Effectiveness for Associations

1. Improving Hiring and Team Effectiveness for Associations Presented to: Your Not-for-Profit Association Presented by: Stephen Bieda Precept Benchmark Consulting Inc. Date: June 6, 2010 Vers: 1.3

2. Key Messages – Focus of Our Discussion Success in a organization is in large part a function of it’s people. Hiring mistakes are costly and hit the bottom line quickly. The interviewing process can be improved using Assess Tools™, a suite of scientifically validated assessment surveys that can help improve the probability of hiring the best and improving performance of existing employees. Assess Tools™ are a great Association membership value add that can help grow the membership, build more cohesive teams and enhance bottom lines. 2

3. Hiring and developing the right sales talent is a key focus across SMEs today THE FACTS • Small business Association Members have on average 10-30 employees but the program is scalable for companies with many thousands of employees • Finding qualified people is harder than ever • Most Association Members are comprised of small businesses units and lack the expertise to know how to hire the best people; they cannot afford dedicated HR staff and don’t have the right tools to help them • ALL Association Members s are looking to get more from their existing teams but may not have the expertise or modern tools to do so THE NET RESULT • Cost of miss hire is huge • Association Members are reluctant to address poor hiring choices because: • The recruiting process is costly and time consuming • They dislike retraining people • They don’t have the tools to measure performance accurately • They don’t know what motivates their team • Association Members typically repeat past hiring mistakes over and over again

4. Assess Tools ™ Affordable enough for EMC but scalable for the big guys too! • Dow Chemical Company • Aetna Insurance Company • Amtrak • Budget Rent-A-Car • Canadian Urban Transit Association • Neiman Marcus • PETCO • Frito Lay • Hilton Reservations Worldwide • Hyatt Hotels & Resorts • Wyndham Vacation Resorts • American Heart Association • Blue Cross Blue Shield of Kansas • Cox Communications • Blockbuster Video • Texas Instruments • AUTOZONE • North American Coal

5. The Cost of a Bad Hire Can Exceed a Full Year of Salary and Benefits! • Most experts agree that the cost of a poor hire can range from 6 months to 18 months of the applicant’s salary and benefits • Soft costs — the additional turnover caused by the hiring, the effect on morale, the decrease in team effectiveness — are much harder to quantify but can be very significant. • Most people believe the cost of a poor hire is just a paycheque. Not so! Remember, without great people, you won't have a great sales team. And if you don't have a great sales team, you won't have a great company! So why do organizations make hiring mistakes?

6. Hiring Effectively is not Easy – Assoc Members are Busy and Lean • Association Members are very busy and they feel like they need to fill positions YESTERDAY. Word of caution – if you hire the wrong person it can get much worse quickly. • They cannot afford to hire interviewing experts – they do their best with what they have • Sometimes gut reactions are wrong • This can result in ineffective hiring

7. Observation & Instinct – Did you know that many interviewers make a “go or no go” decision in the first few minutes? Firm Hand Shake Good eye contact Bright Smile Shiny Shoes Shiny Shoes

8. Did you know? • Over 50% of candidates admit to lying on a resume • Over 60% admit they will lie in an interview if it helps them get the job • This can contribute to mismatches between individual and roles • Unfortunately, a high percentage of the population will lie, given the opportunity

9. So what does this tell us? • Screening resumes and the interview process may not give us all of the data we need • Do you want someone who didn’t really want the job working for you? • Better hiring decisions can be made if we can add objectivity to our selection process • One way to do this is via assessment • Interviewing skills do NOT equal job skills • What you see is not necessarily what you get… The Bottom Line - Hiring based on fit with a role will increase the likelihood of success for both the candidate and the organization

10. Key Messages Success in small business is in large part a function of it’s people. Miss-hires are very costly. The interviewing process can be improved using Assess Tools™, a suite of scientifically validated assessment surveys that can help improve the probability of hiring the best and improving performance of existing employees. Assess Tools™ are a great Association value add that can help grow the membership, build more cohesive teams and enhance bottom lines. 10

11. The Evolution of the Interview Process The Behavioural Interview with Assess™ The mirror test The “who do you know” test and resume review The Behavioural Interview The Traditional Interview ©2007, 2008 Optimal Performance Tools Inc. www.opt-inc.com

12. The Mirror Test – Simple … but Ineffective • Hold a mirror in front of the candidates mouth. If they are able to fog the mirror……

13. The “Who do you know/Who are you related to” Test Here’s typically what happens… A quick scan of the resume (sometimes) • Ted is related to Jane • Jane is hard working, conscientious, smart and excellent with customers • Therefore, Ted must be hard working, conscientious….. • “Ted…..you’re hired!”

14. The Traditional Interview • The interviewer focuses on what candidate has done. • Hiring manager tends to look at résumé, and use it as a guide upon which to base their questions. • Questions are direct: • What is your salary expectation? • What are your long-range goals? • What skills would you like to develop in this job? • What are your strengths and weaknesses? • Have you managed people before?

15. The Behavioural Interview • The objective is to find out how well your candidate is likely to perform in the job for which they are applying. • Interviewees are asked questions about past positions. Belief is that past behaviour is the best predictor of future success. • Specifically, behavioural interview questions are designed to determine what a candidate did, how they did it and more specifically, what their role was. • Types of Questions • Tell me about a time when you had to make a tough decision? • Describe a situation in which you were able to use persuasion to successfully convince someone to see things your way? • Describe a time when you were faced with a stressful situation that demonstrated your coping skills? • Give me a specific example of a time when you used good judgment and logic in solving a problem? • Give me an example of a time when you set a goal and were able to achieve it? • Includes traditional interview questions as well

16. The Behavioural Interview with Assess™ Tools • Combine Behavioural Interview with Assess tools™ • Why? • Research has shown that personality predicts aspects of job performance that may not be strongly related to knowledge, skills and abilities • Evaluation of what a person “WILL DO” as opposed to what they “CAN DO” • Considers potential apart from past behaviour alone • Appropriate types of assessment add objectivity and validity • Good assessment tools show no adverse impact (i.e. a fancy way for saying they don’t discriminate based on gender, age, ethnicity, etc…) • They meet labour guidelines – ie Employment Equity Opportunity Commission (U.S.) • Evolution – each new technique incorporates best of previous techniques • It’s all about making the best possible decision • Now let’s see how Assess Tools™ can lead to greater profitability

17. What is Assess Tools™? • An easy to use on-line assessment system geared towards talent selection in the following areas: hourly rate associate level employees, professional/managerial sales people, consultative sales and executive level leaders • The Selection Report – identifies candidates who are most likely to achieve above average success in professional sales • Developmental Report – helps current employees to identify strengths and developmental areas and guides them in constructing a personal development plan to achieve success

18. What Does Assess Tools Tell us? • It Provides information about: • Sales Personality – characteristics or traits linked to success in most any roll • Knowledge -- understanding of effective behaviours and strategies at key stages of the sales and customer service cycles • Motivations -- personal motivators to help in managing and motivating the candidate • Assess Tools™ enhance the behavioural interview process by providing data relevant to success in employment roles. • Information that an interview alone COULD NOT provide – information about the underlying drivers of success in employment roles…

19. Assess Tools gets to the heart of the behaviours underlying effectiveness and gives Team Leaders the ability to measure them SURFACE LEVEL INDICATORS Job Experience UNDERLYING SUCCESS DRIVERS Candidate Motivations Candidate Knowledge Candidate Personality

20. Why SalesMax™ for Example? It Will Improve your Bottom Line Reduce the probability of making a hiring mistake, without having to become an expert in behavioural interviewing • A candidate’s SalesMax™ results can be clearly linked to success in sales and predict their probability of success. • Would you like to hire more people with a higher probability of success and avoid those with a lower probability of success? • What does this mean for your bottom line? • Poor performers often produce 40% less than high performers. • If the average revenue of a salesperson is $3,750,000, high performers will sell on average $1,500,000 more than poor performers. • In this case the cost of hiring the poor performer is $1,500,000 plus any negative impact this individual has on the rest of your organization SalesMax™ Delivers Results • Candidates with top scores on SalesMax™ produce as much as 121% of average or about 40% more than poor performers • 84% of poor performers are screened out using SalesMax™.

21. Takes the guess work out of choosing between applicants!(Part of an 8 page report) 21

22. Saving time and money with SalesMax™ • Screen the resumes and conduct phone interviews first. The acting HR person will likely end up putting a max of 10 people through SalesMax™ testing. • Let’s assume … • HR person has to spend at least 30-45 minutes on each of 25 candidates for interview • That is a total of 12.5 -18.75 hours, excluding admin time to set up the interviews, etc… • Let’s call it at least 15 hours and up to 25 hours total. • SalesMax™ provides focus and can reduce the number of candidates interviewed. • What else can be done with this time? 22

23. Don’t Forget the Existing Sales Team – Help Them be More Effective! To assist in improving performance the SalesMax™ Development Report provides: • A personality profile - A quick summary that shows personality results. • Motivations– Scores show the relative importance of motivators and how the candidate can get more of what they want from the job. • Developmental suggestions - Recommendations on how to close developmental gaps with specific resources. • Development action plan guide – Practical and easy to implement tips on building strengths and recognizing weaknesses. • Additional support consultation and implementation coaching is available upon request

24. Validation is Critical, But What does it Mean? All of our surveys (ASSESS™, SalesMax™ and SELECT) have been validated and are different from many other tools in the market. What do we mean by valid? Three types of validation – face, construct and criterion-related Face – looks like it measures what it claims to measure Construct – measures what it claims to measure Criterion related - measures whether performance on a survey can be linked to (predict) job performance. All of our surveys have been shown to be non-discriminatory – they do NOT discriminate based on age, gender or ethnicity and meet the Equal Employment Opportunity Commission Guidelines (U.S.)

25. All of our tools have been validated • SELECT is used to improve hiring at the associate level. It measures: • Important, work-related personality characteristics associated with productivity, cooperative work behaviours, integrity and service to others • ASSESS™ can be used to improve hiring and development process of higher level employees, including general managers and owner/operators

26. Key Messages Helping sales organizations hire and develop sales talent can provide a revenue stream for an association, while addressing a organizational need. Assess Tools™ include scientifically validated tools with proven ability to hire and develop the best sales performance. Linked to traits, predicts results! Assess Tools™ are a great Association membership value add that can help grow the membership, build more cohesive teams and enhance bottom lines.

27. Add value to your membership and earn Commission By choosing to partner with Precept Benchmark Consulting Inc your authorized Assess Tool marketer, your association can: • Enhance membership perceived value. • Help your constituents build more cohesive and effective teams • Help your constituents enhance their bottom line. • Assess Tools™ tests range between $40-$500 per test and for every test sold your Association can earn a 10% commission.

28. Thank you for your time! Please contact me with any questions. sbieda@pbconsultinginc.com www.preceptbenchmark.com 289.656.0954

29. The Candidate Experience – How does SalesMax™ work?

30. Candidates are required to agree to the statement of informed consent before they can continue the survey.

31. Candidate completes personal information. Candidate can choose the “prefer not to say option” in the drop down menu for Age, Gender and Ethnicity (these can be suppressed)

32. Candidate verifies personal information and clicks accept, or revises information.

33. Candidate answers all questions on the page and then hits the “Next” button at the bottom of the page to continue to the next screen.

34. The Life Cycle of Effective Leadership and Management The OptimalPerformance Lifecycle™ 34