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GROWING YOUR COMPANY Using Success Profiles for Business Growth

Using Success Profiles to Grow Your Business

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Almost 40% percent of your company’s market value is based on People Issues. As much as 80% of employee turnover is due to bad hiring decisions. 40% of all newly promoted managers will fail within 18 months. Learn about powerful - and doable - research-based methods to grow your business successfully through the right people.

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Page 1: Using Success Profiles to Grow Your Business

GROWING YOUR COMPANY

Using Success Profiles for Business Growth

Page 2: Using Success Profiles to Grow Your Business

DISCUSSION TOPICS

Introductions

The importance of “people issues”

Translating strategy into organizational capabilities

Identifying success profiles

Selecting and on-boarding

Developing – and not derailing – your employees

Succession planning

Page 3: Using Success Profiles to Grow Your Business

ARE YOU LOOKING TO…

• Grow your business • Manage growth • Improve products or services • Make large profits • Be the company you envisioned • …. And have an exit strategy

Page 4: Using Success Profiles to Grow Your Business

IMPACT ON MARKET VALUE

40% percent of your company’s market value

is based on People Issues

The Institute for Corporate Planning & Finance

Page 5: Using Success Profiles to Grow Your Business

WHY FOCUS ON YOUR PEOPLE?

• Companies that excel with people see • 50% less turnover

• 31% percent higher employee engagement

• 42% percent stronger succession pipelines

• Employees who were most committed to their organizations • Gave 57% more effort

• Were 87% less likely to resign

* Bersin and Associates

** Corporate Executive Board

Page 6: Using Success Profiles to Grow Your Business

TOO OFTEN…

When it comes to employees and teams, organizations say

• “We’re doing fine, we don’t need any special tools” ..or

• “We are unique… we have to create our own” ..or

• “It’s too expensive / too much trouble, etc.” ..or

• “We don’t know what tools are available”

Page 7: Using Success Profiles to Grow Your Business

… LEADING TO CURRENT STATE

Hiring based on resume, references and interviews

Development plans based on current level of knowledge

Good performers rewarded with…. More work

Page 8: Using Success Profiles to Grow Your Business

LAKE WOEBEGONE EFFECT

One poll found that 90

percent of leaders believe

that they are in the top 10

percent of performers

Page 9: Using Success Profiles to Grow Your Business

GROWING YOUR BUSINESS

Values

Mission

Vision

Strategy

Lifetime

20+ years

5 – 20 years

1 – 5 years

Who you are

Why are you here? Why do you exist?

What or how you would like things to be

Courses of action and allocation of resources to meet goals and objectives

Then What?

Page 10: Using Success Profiles to Grow Your Business

Performance Management/Appraisal

Team Effectiveness

Strategy

Organizational Capabilities

Success Profiles

Selection / On boarding

Assessment / Development

Succession Planning / Talent

Management

Page 11: Using Success Profiles to Grow Your Business

HOW SUCCESS PROFILES HELP

• Successful people • Know themselves better • Seek out more feedback (and get it) • Act on feedback

• Simple, highly effective, research based tools • Increase the quality of feedback to people for their

development • Provide variety and effectiveness of development

actions

Page 12: Using Success Profiles to Grow Your Business

CREATING SUCCESS PROFILES • Based on competencies • Research–based • Align individual performance • Common language • Starting point

Korn/Ferry International

Page 13: Using Success Profiles to Grow Your Business

COMPETENCY DEFINITION • Measurable characteristic

of a person that is related to success at work

• A behavioral skill, a technical skill, an attribute (such as intelligence), or an attitude (such as optimism)

[The Leadership Machine]

Competency

Skills Relates to the ability to do

Physical domain

Attributes Relates to qualitative

aspects Personal characteristics or

traits

Knowledge Relates to information

Cognitive domain

Page 14: Using Success Profiles to Grow Your Business

SUCCESS PROFILES MUST CONSIDER • The Big 8

• Learning agility

• Emotional quotient (EQ)

• Importance and performance at the Individual, Manager and Executive levels

• Developmental difficulty

• Needed for promotion and to be developed early

• Top correlated competencies at each level

• Most likely weaknesses and flame out factors

Page 15: Using Success Profiles to Grow Your Business

SUCCESS PROFILES CHALLENGES

• Wrong competencies • Too compound • Core competencies can’t do the whole job • Don’t consider “Must Considers”

Korn/Ferry International

Page 16: Using Success Profiles to Grow Your Business

KNOW ORGANIZATION’S COMPETENCIES • Research identifies the most critical competencies

• Your company can identify the ones key for success

• Use knowledge for selection, development, succession management, performance management, teams

• When you clarify competencies, your entire organization knows how to support your competitive advantage *

*Harvard Business Review: The Core Competence of the Corporation

Page 17: Using Success Profiles to Grow Your Business

STRATEGIC EFFECTIVENESS ARCHITECT ™

The organizational capabilities that organizations must possess to successfully execute strategy.

Identify Needed Strategies

Page 18: Using Success Profiles to Grow Your Business

Performance Management/Appraisal

Team Effectiveness

Strategy

Organizational Capabilities

Selection / On boarding

Assessment / Development

Succession Planning / Talent

Management

Success Profiles

Page 19: Using Success Profiles to Grow Your Business

COST OF BAD HIRE • As much as 80% of employee turnover is due to

bad hiring decisions -Harvard Business Review

• A poor hiring decision is 2 to 5 time annualized compensation; as much as 10 times for a specialist

-Harvard Business Review

• The typical interview increased the likelihood of choosing the best candidate by less than 2%

-University of Michigan

Selection / On boarding

Page 20: Using Success Profiles to Grow Your Business

• The process is collaborative

• Builds common language

• Easily adapted to the changes in skill and marketplace

• Works with any Talent Acquisition System - many are linked to these models

• With comparable technical skills, individuals with the strong Emotional Intelligence (EQ) competencies will be more successful and productive on the job

Selection / On boarding

WHY USE COMPETENCIES ?

Page 21: Using Success Profiles to Grow Your Business

• What are the strategic goals of the organization?

• What are the deliverables / expectations of the job?

• What competencies does this level position need to support the business?

• Do these competencies align with the desired strategy and culture of the organization?

• Is there coverage across competency factors?

• ………….

Selection / On boarding

QUESTIONS TO CONSIDER

Page 22: Using Success Profiles to Grow Your Business

Copyright 2011 Lominger International: A KornFerry Company All Rights Reserved

Selection / On boarding

Page 23: Using Success Profiles to Grow Your Business

ON-BOARDING • Competencies for role/level part of Onboarding

process—Succession and Development process and profiles explained

• Development opportunities explained

• Developmental competencies included in Performance Appraisal

Selection / On boarding

Page 24: Using Success Profiles to Grow Your Business

CASE STUDIES

Selection / On Boarding

Page 25: Using Success Profiles to Grow Your Business

Performance Management/Appraisal

Team Effectiveness

Strategy

Organizational Capabilities

Success Profiles

Selection / On boarding

Assessment / Development

Succession Planning / Talent

Management

Page 26: Using Success Profiles to Grow Your Business

Goal-setting, feedback, development, and training targeted at the mission-critical competencies increase the rate at which organizational goals are achieved by 46% of a standard deviation

Spenser, L, “The Economic Value of Emotional Intelligence Competencies and EIC-based HR Programs”, 2001

40% of all newly promoted managers will fail in some way within 18 months

Manchester, Inc., 2001

Assessment / Development

WHY DEVELOP YOUR EMPLOYEES

Page 27: Using Success Profiles to Grow Your Business

IDENTIFYING DEVELOPMENTAL NEEDS

• Self-assessments

• 360-degree feedback

• Feedback from mentors, boss, etc.

• ….other?

Assessment / Development

Page 28: Using Success Profiles to Grow Your Business

WHAT TO WORK ON • Importance to you/clients

• Motivating

• Similarity to other needs

• Opportunities in current position to develop

• Accessibility of developmentally orientated people/resources

• Support

• Level of developmental difficulty

Assessment / Development

Page 29: Using Success Profiles to Grow Your Business

Average to a

Strength

Hidden Strength

Untested

Weaknesses

Overdone Strengths

CareerStallers

Blind Spots

DEVELOPMENTAL NEEDS TYPES

Easiest ------------------------------------------Hardest

Assessment / Development

Page 30: Using Success Profiles to Grow Your Business

CASE STUDIES

Assessment / Development

Page 31: Using Success Profiles to Grow Your Business

Assessment / Development

Page 32: Using Success Profiles to Grow Your Business

OVERUSE Command Skills (9)

Becoming controversial and rejected by others Not developing others leaders, and Choosing to strongly "lead" when other more team-based tactics would do as well or better.

Decision Quality (17) Seen as stubborn and not willing to negotiate or compromise, Getting frustrated when advice is rejected, and Seeing yourself as overly wise or close to perfect.

Assessment / Development

Page 33: Using Success Profiles to Grow Your Business

NEED TO DEVELOP Managing and Measuring Work (35)

Being disorganized, Just throwing tasks at people Lacking goals or priorities. Not providing work-in-progress feedback, and Not being clear about who is responsible for what.

Organizing (39) Not pulling resources together effectively, Being a poor delegator and planner, Not very motivating to work with, and Relying too much on self.

Assessment / Development

Page 34: Using Success Profiles to Grow Your Business

EFFECTIVE DEVELOPMENT

How Development Plans are Commonly Written

Formal Training 70%

Learning from Others

20%

Job Experiences

10%

How Development Occurs

Formal Training

10%

Learning from Others

20%

Job Experiences 70%

Assessment / Development

Page 35: Using Success Profiles to Grow Your Business

Performance Management/Appraisal

Team Effectiveness

Strategy

Organizational Capabilities

Success Profiles

Selection / On boarding

Assessment / Development

Succession Planning / Talent

Management

Page 36: Using Success Profiles to Grow Your Business

WHY IT IS IMPORTANT TO DEVELOP YOUR LEADERS

Great leaders make a huge difference, even compared to good leaders, and much more so to poor leaders, i.e., the top 10% of leaders outperformed the middle by a factor of 2, and outperformed the weakest 10% by a factor of 5

Zenger and Folkman, “The Extraordinary Leader” 2002

Succession Planning /

Talent Management

Page 37: Using Success Profiles to Grow Your Business

• Current performance is overused as a criterion or verification in succession planning

• Better indication is Learning Agility • Successful response to and learning from external events

• Innovate technically and organizationally

• Plan and execute new courses of action

• Learning agility is a key to predicting how well a person can make changes and acquire new skills

The Leadership Machine, Lombardo & Eichinger

Succession Planning /

Talent Management

CURRENT PERFORMANCE VS. FUTURE POTENTIAL

Page 38: Using Success Profiles to Grow Your Business

THINGS TO WATCH Learning Agility

Derailers

Succession Planning /

Talent Management

Page 39: Using Success Profiles to Grow Your Business

COMMON CAUSES OF DERAILMENT

By Self • Over-reliance on strengths

• Blind to a flaw

• Untested

• Lazy learner

• Narrow perspective

By Organization • Development by “courses”

• Moving people too fast

• Not using horizontal moves

• One failure is death

• Fast track—poor behavior

• Feedback is poor

• Focusing on smart, technical, functional only

Succession Planning /

Talent Management

Page 40: Using Success Profiles to Grow Your Business

PEOPLE WHO ARE LEARNING AGILE

• Critical thinkers who make fresh connections

• Know themselves and handle tough people situations deftly

• Like to experiment, deal with the discomfort that surrounds change

• Deliver results in first time situations through team building and personal drive

Succession Planning /

Talent Management

Page 41: Using Success Profiles to Grow Your Business

Lowest 1/3 Middle 1/3 Highest 1/3

Highest 1/3 Sustained High Performer

Sustained High Performer

Consistent Star

Middle 1/3 Future Pro

Essential Contributor

Future Star

Lowest 1/3 Take Action Refine

Rough Diamond

9 Box idea © COPYRIGHT 1999, Michael M. Lombardo & Robert W. Eichinger

Long

Term

Per

form

ance

Long Term Potential / Learning Agility

Succession Planning /

Talent Management

PERFORMANCE POTENTIAL MATRIX

Page 42: Using Success Profiles to Grow Your Business

CASE STUDIES

Succession Planning /

Talent Management

Page 43: Using Success Profiles to Grow Your Business

Performance Management/Appraisal

Team Effectiveness

Strategy

Organizational Capabilities

Success Profiles

Selection / On boarding

Assessment / Development

Succession Planning / Talent

Management

Page 44: Using Success Profiles to Grow Your Business

KEYS • Find people with the right stuff (especially early in

their careers)

• Expose them to the right leadership competency building experiences

• Help them learn from their experiences

• Take on issues early

• Beware of derailers

Page 45: Using Success Profiles to Grow Your Business

TO TAKE WITH YOU… • The value – both dollar and social – of doing this and

the cost to not

• There are established, proven, research-based tools available. Pick one and use it (don’t reinvent the wheel)

• When hiring, look beyond current need

• It is simple, straightforward and do-able… but not necessarily easy, cookie-cutter, or overnight results!

• You don’t have to wait on anyone else – do it within your team, your division ….. or just for yourself

Page 46: Using Success Profiles to Grow Your Business

I never teach my pupils. I

only attempt to provide

the conditions in which

they can learn.

-Albert Einstein

Page 47: Using Success Profiles to Grow Your Business

Concentrating on the people side of business, ImpaQ Solutions works with individuals, teams and

organizations to help them be better leaders, better employees, and better companies.

www.ImpaQ-Solutions.com

[email protected]