CREATING TRANSFERRABLE WEALTHTHROUGH STRENGTHS AND

ENGAGED MANAGEMENT

Jim Downing, PhD

Executive Leadership Resources, Inc.

January 2, 2013

PURPOSE OF A BUSINESS

To Create Transferrable Wealth

for Owners & Shareholders

ENGAGED MANAGEMENT PROCESS OVERVIEW

Engaged Employees, led by

Great Managers, resulting in

Engaged Customers/Clients, leading to

Profitable, Sustained Growth and

Enhanced Transferrable Value

GALLUP RESEARCH BASED PROCESS

Over 30 years of research

Millions of employees surveyed

Thousands of companies analyzed

80,000 managers polled

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?”

GALLUP RESEARCH FINDINGS

28% of employees are “engaged”

53% of employees are not “engaged”

19% of employees are actively “disengaged”

SO WHAT?

On engagement scale, compared to bottom-quartile companies, top-quartile companies had:

12% higher customer satisfaction18% higher productivity16% higher profitability

Also,

37% lower absenteeism27% less theft

49% fewer safety incidents60% fewer quality issues

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

DIRECTION

Mission or purpose statement

What market is addressed What is offered to that market What makes you different

VisionInternal, aspirational statement of goals

StrategyBroad statement of how mission and vision will be

achieved

FOCUS ON STRENGTHSPrimary 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

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

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

MONITOR, MEASURE AND ADJUST

• Sustainability of system is crucial

• Gallup 12 questions of employee engagement

• Constantly monitor and adjust as necessary

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

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

ELEMENTS OF TRANSFERRABLE VALUE• Decision-Making Management Team

• Owner Independency

• Effective Financial Systems and Controls

• Compelling Business Plan

• Customer Diversification

• Intellectual Property

• Scalable Systems

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

CONCLUSION

Purpose of business is to create transferrable value

Research shows that Engaged Management Process leads to enhanced transferrable value

Clear mission/vision/strategyEngaged employees, led byGreat managers, results inEngaged customers, leading toProfitable, sustained growth, andEnhanced transferrable value