Presentation Transcript

1. Optimizing Human Capital by Bench- marking Your Star Performers

   Human Capital Track Paul H. Elliott, Ph.D.
2. Objectives At the conclusion of this presentation you should be able to: Define the value proposition for benchmarking star performers. Identify and prioritize opportunities within your organization for maximum ROI. Discuss the Profile of Exemplary Performance (PEP) approach for capturing expertise. Shift the performance curve for key roles by aligning the performance system components for optimal results.
3. Objectives At the conclusion of this presentation you should be able to: Define the value proposition for benchmarking star performers.
4. Approaches to Improving Results Shift your strategy Enter new markets Release new products Acquire a competitor Benchmark other organizations
5. Approaches to Improving Results Shift your strategy Enter new markets Release new products Acquire a competitor Benchmark other organizations - OR - Benchmark Your Internal Stars
6. Differentiating between Talent and Performance Percent of workforce Level of Talent Minimum Standard Exemplary
7. Exemplary Performers Produce Greater Results that Support Business Strategy Percent of workforce Level of Performance Minimum Standard Exemplary
8. Which Does The Organization Value? 1. I know the principles of information theory and packet switching. 2. I can do these behaviors: Install a switch, configure a switch, monitor network operations. 3. The reliability of the network I managed consistently exceeded design specifications.
9. We Know Them by Their Results A sales person exceeds quota by 100% and gets rave reviews from her customers The skilled trades technician who restores the line to full capacity 30% faster than peers A pilot lands safely on the Hudson
10. Defining Stars Stars are those teams and individuals who consistently produce the greatest results that support your organization’s strategy and goals. These performers may not have the most talent [potential], but they translate the talent they do have into meaningful outcomes that drive business success.
11. Exemplary Performers Produce Greater Results New Standard Average performers can become more like stars Value Percent of workforce Level of performance Minimum Standard Exemplary
12. Audience Poll How large is the variance between your best performers and your good performers? 5% 10% 20% 40% 60+%
13. McKinsey War for Talent “A” players grew revenue by 52% “B” players grew revenue by 4% “C” players shrunk revenue by 15% Research Reveals Size of the Gap Huge upside to shifting B up to A performers Sales Executive Council Top 20% outperform middle 60% by 60% Top performing sales teams outperform average teams by 180% The more complex the selling environment, the larger the gap and the higher potential return
14. Tom Peters - In Search of Excellence "High potentials" will take care of themselves. The great productivity "secret" is improving the performance of the 60% in the middle of the distribution. Blog posting 10/09/13
15. Exercise Calculate the potential value of shifting the performance curve
16. Fact or Myth Fact Myth Talent is the key differentiator in performance IQ and/or memory make all the difference Hard work makes up for any shortfall in talent Experience separates the great from the average
17. Fact or Myth Fact Myth ü Talent is the key differentiator in performance IQ and/or memory make all the difference Hard work makes up for any shortfall in talent Experience separates the great from the average ü üü
18. What Makes a High Performer? What they are: A certain personality type With defined competencies How to define: MBTI Hogan McClelland Hay Group What it shows: Preferences Capabilities
19. What Makes a High Performer? What they are: A certain personality type With defined competencies Who produces accomplishments How to define: MBTI Hogan McClelland Hay Group ExemplaryPerformers What it shows: Preferences Capabilities Results If you just focus here you don’t get this
20. Value of Shifting the Curve“Potential to Improve Performance” 400 Sales people carrying a $1M quota 20 Exemplary Performers achieving $1.5M Close the gap by 20% or $100,000 Revenue increase of $38M %
21. Objectives At the conclusion of this presentation you should be able to: Define the value proposition for benchmarking star performers. Identify and prioritize opportunities within your organization for maximum ROI.
22. Prioritizing Performance Improvement Opportunities What is the organization’s business strategy? What key initiatives are planned for the coming year? What sets us apart from our competition? What is our competitive advantage? Which roles or employee groups are most critical for executing against our strategy, our initiative or in maintaining our competitive advantage?
23. Prioritizing Performance Improvement Opportunities Identify positions that are strategically important Identify most critical output for each role Review data for variance in performance Estimate the % by which you can reduce variance Calculate the value of shifting the performance curve
24. Exercise Prioritize opportunities within your organization
25. Objectives At the conclusion of this presentation you should be able to: Define the value proposition for benchmarking star performers. Identify and prioritize opportunities within your organization for maximum ROI. Discuss the Profile of Exemplary Performance (PEP) approach for capturing expertise.
26. Performance Analysis is THE Tool for Capturing Exemplary Performance Identifying Star Performers Quantitative measures Qualitative measures Case-based Approach Major Accomplishments Criteria Tasks and steps Influences
27. Exemplary Performance System (EPS) Exemplary Performance  2008-2012Exemplary Performance, LLC
28. Linking Exemplary Performance to Business Goals PERFORMANCE UNFOLDS LEFT TO RIGHT Influences Job Behaviors Job Outputs Business Goal Measuring Performance Against Plan Finding Qualified Leads Reaffirming Client Goals and Risk Tolerance Territory Plan & Scorecard Accurate/ Compliant Admin. of Accounts Asset Allocations Aligned with Client Goals Client Retention Assets Under Management Time to Competence
29. Linking Exemplary Performance to Business Goals PERFORMANCE UNFOLDS LEFT TO RIGHT Influences Job Behaviors Job Outputs Business Goal Measuring Performance Against Plan Finding Qualified Leads Reaffirming Client Goals and Risk Tolerance Territory Plan & Scorecard Accurate/ Compliant Admin. of Accounts Asset Allocations Aligned with Client Goals Client Retention Assets Under Management Time to Competence ANALYZE PERFORMANCE RIGHT TO LEFT
30. Criteria for Identifying Star Performers Exceptionally high performers (< 5%) Selected based on achievement of quantifiable business results Consistently exceed metrics and do it efficiently Cannot be identified on performance appraisal alone Have been in position for at least a year Often unconsciously competent
31. Star Performer Interviews Case-based analysis Best conducted at place of performance Focused on accomplishments, success criteria and actions in context Precise and deep – seeking insight regarding decisions, criteria, sequence, triggers, etc. Other primary source: managers of stars Potential secondary sources: direct reports, peers, customers
32. Management Example Job Title: District Sales Manager Major Accomplishments: Tactical marketing plan for district Competent sales reps Office functioning to support sales reps Inputs to Vice President of Marketing on strategy Data on district performance
33. Management Example Job Title: District Sales Manager Major Accomplishment:Competent sales reps Tasks: Fill vacant position Determine performance influences needed Coach sales reps Diagnose performance problems Prescribe solutions to performance problems
34. Example: Account ExecutiveDetails of One Accomplishment Major Accomplishment: Healthy Pipeline Importance:Important Difficulty: Moderate Difficulty Major Criteria: Percentages spread over pipeline are sufficient to deliver revenue quota each quarter Opportunities in pipeline are balanced between short-term and long-term sales cycles Number of opportunities is valid
35. Example: Account ExecutiveDetails of One Accomplishment Major Accomplishment: Healthy Pipeline Interactions: People: Sales manager, customers, virtual team members Tools/resources: CRM system, personal spreadsheet Influences: Facilitators: Sales portal Barriers: Lack of time and discipline Sales portal too “clunky/complex,” drop-down menus are confusing, resulting in errors in classification CRM system doesn’t provide all necessary data
36. Example Task List Healthy Pipeline: Build individual business plans Identify sales opportunities with account team Identify sales opportunities with partners Tier opportunities in order to allocate resources Conduct sales activities and marketing programs to obtain additional prospects Track opportunities in CRM System Qualify prospects using provided criteria Participate in pipeline review meetings to determine next step to advance deals Build and maintain trustworthy personal relationships with internal and external sales resources
37. Exercise Hypothesize two or three major accomplishments for one critical role
38. Objectives At the conclusion of this presentation you should be able to: Define the value proposition for benchmarking star performers. Identify and prioritize opportunities within your organization for maximum ROI. Discuss the Profile of Exemplary Performance (PEP) approach for capturing expertise. Shift the performance curve for key roles by aligning the performance system components for optimal results.
39. Just Imagine. . . . That every member of your team was as successful and engaged as they intended to be the day they were hired That your organization was barrier-free . . . designed for optimal performance That everyone understood the ‘worth of their work’ and was fully engaged What would that mean for your customers, your organization and your employees?
40. Exemplary Performance System (EPS) Exemplary Performance  2008-2012Exemplary Performance, LLC
41. Shifting the Curve Optimally
42. Expectations and Feedback Regional GM No Sales or IT resources within own control Set expectations for all that required cross-functional strategic and tactical planning for region
43. Motivation, Capacity & Job Fit Lab Pathologist Reduced processing of lab specimens from 9 months to 2 weeks Had revenue component of job responsibilities – changed advertising and selection of new hires.
44. Skills & Knowledge Refinery Operator Aging workforce New hires not coming with traditional background Developed Operator Qualification System based on Star Performer practices
45. Expectations & Feedback Weapons Petty Officer Collateral Duty Un-aligned support (maintenance, policy, procedures) Produced clarity of valued output
46. Poll What is the primary contributor of gaps between your stars and average performers? Expectations & Feedback Rewards, Recognition & Consequences Work Environment Motivation & Preferences Skills & Knowledge Capacity & Job Fit
47. Exemplary Performance System (EPS) External to the Individual 75% Exemplary Performance 25% Internal to the Individual  2008-2012Exemplary Performance, LLC
48. Maximizing the Shift of theCurve
49. Sample Job Description
50. Sample Hiring Guide
51. Maximizing the Shift of theCurve
52. Sample Coaching Guide
53. Maximizing the Shift of theCurve
54. Driving Performance Through “LEAN” Training Relevant Subject -matter Value- Added Activity KNOW PRODUCE DO Relevant Actions Outputs of Value  2008-2010 Teach only the knowledge (KNOW) and skills (DO) needed for people to produce valued results. Teaching anything outside the valued-added band is potentially a waste of time and money.
55. Characteristics of an Ideal Training Asset Relevant content Role-specific examples and practice Sufficient practice Performance support, when appropriate Adequate simulation at highest practical level
56. Advantages of Context-Intensive Design Relates training to activities and results of participants’ role[s] Reduces time to competence by 30% or more Leaner learning Appropriate use of performance support Significantly enhances transfer of training Reduces readiness development cycle by 20% to 30% Makes Level III & IV evaluation feasible and, in fact, requires it
57. Context-IntensiveCurriculum Design Model
58. Potential Benefits ofPerformance Support More reliable than memory Quicker to develop Reduce formal training time Minimize the need for experience Easier to change Focus attention on what the developer wants the performer to do and produce.
59. Performance Support vs.Memory Decision Job Aid Yes Job Aid Required by regulation/policy No One or more of these for not Job-Aiding Too slow (Speed) Physical barrier Social barrier Other Way of Minimizing barrier(s)? No Yes Yes No One or more of these for Job-Aiding? High consequences High complexity High change Other Frequency of the Task high? No Yes No Job Aid Memory Yes
60. Contact Information: Paul H. Elliott, Ph.D., President paul.elliott@exemplaryperformance.com (410) 266-8400