Raising the Talent Bar

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Raising the Talent Bar

• PCBC

Chuck Shields Mike Hollister Bregg Smith
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Agenda

• Introduction
• Aligning Strategy, Values and Leadership
• Defining Competencies
• Recruiting the Right People
• Hiring for Success
• New Hire Orientation
• Leadership Development

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Workshop Objectives

• Link organizational results with finding,
  developing and promoting the right people
• Change thinking about traditional people
  processes
• Link strategy, vision and values to
  organizational capacity to deliver now and over
  time

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Objectives Laying the Groundwork

• Define competencies and their importance in
  generating results, selection and development
• Introduce success profiles and how to use them
  to align selection, development and promotion

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Objectives Defining the Talent

• Maximize success of recruiting and selection
  process, either internally or externally.
  Understand implications of hiring the wrong
  person.
• Utilize an interviewing technique that will
  greatly improve your chances of selecting the
  right person.

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Objectives Finding Growing the Talent

• Get new hires off to a good start with a powerful
  orientation process designed to
• reduce turnover
• establish clear expectations
• help new employees deal with contradictions
• Introduce a process that requires every leader in
  your organization to understand and own the
  development of their talent

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Achieving Objectives

• Engage and participate in your learning
• Ask questions at the end of the workshop
• Extend your learning past the conference

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Why Investing Time, Money and Effort in Your
People is Good Business
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Research on the Best/Worst Companies at Managing
People
Top 10
Bottom 10
Market Value to Book Value 11.06 3.64
Sales / Employee 617k 158k
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People Practices Best/Worst Companies
Top 10
Bottom 10
Companies
Give performance appraisals 96 60
Provide performance appraisal objective 63 13
Fill jobs internally 53 31
Provide formal staffing plan 48 3
Provide formal compensation plan 96 47
Perform employee survey regularly 58 5
Have formal grievance process 95 59
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People Practices Best/Worst Companies
Top 10
Bottom 10
New hire training hours 38 hours 5 hours
Experienced employee training hours 23 hours 4
hours
Employee turnover 21 34
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Best/Worst Companies 1-6 Point Scale
Top 10
Bottom 10
Aligned with business strategy 5.06 1.84
Visionary leaders 5.24 2.73
Clear mission 5.03 1.90
Job security 4.59 2.40
Management focused on reducing HR
costs 2.40 5.01
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Case Study Georgia Pacific
Results
Action
Profitability increased from 20 Million to 80
Million in 2 years
Upgraded 20 of 40 Plant Managers
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Whats the Payoff for Investing in Individual
Performance?

• Theres a 97 difference in performance between
  below-average and good performers

PERFORMANCE
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What Is One Standard Deviation Worth?
Non-sales Jobs
19-48
Sales Jobs
48-120
Engineering/Construction Managers
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Integrated HR Systems
Integrated
390K 370K 350K 330K 310K 290K
Aligned
Best Practices
Typical
Market Value/Employee
Catch Up
0 10 20 30 40
50 60 70 80 90
100
Sophistication of HR Systems Percentage
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Changing Our Thinking About People in the
Workplace
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What Keeps us from Raising the Bar?

• Traditional worker/management model
• Repetitive, easily defined tasks
• Bell curve that makes average accepted

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Traditional Performance Expectations
Employees follow the bell curve
10 Excellent
85 Average
5 Poor
The meaning of excellence varies per your company
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3 Major Components
KUS
Abilities
Passion
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What Does Excellence Look Like?

• High Performers have the

Knowledge
Know what to do
Understanding
Understand why it is important to the success of
the company
Skills
Have the right skills or know how to get them
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Abilities of High Performers
Intellectual
Emotional
Physical
Spiritual
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Passion
HPs Take great satisfaction from their work.
First to arrive and last to leave. Inspire others
to perform at their best. Demand excellence from
the team. Take pride in working for a great
company.

• Organization success
• Team success
• Personal success

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Defining Shared Strategy
Organize for success
Nurture loyal customer base
Create strong vision and culture
Find and keep great people
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Defining Shared Strategy

• Participants get clear on
• Key stakeholders
• Where they want their company to be
• How they want to behave in getting there
• Where they are going to operate
• Who their customer is going to be
• What their product offering is
• How they will win

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Participation Why?

• Widespread involvement in creating strategy helps
  to
• Solicit multiple viewpoints
• Understand whats important
• Develop abilities
• Ignite passion

Its better to have them inside the tent
spitting out than outside the tent spitting
in. Lyndon Johnson
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FastTrack Conference Structure

• Review the past
• Explore the present
• Stakeholders
• Scope
• Values/operating principles
• Create ideal design
• Develop common ground
• Develop strategy
• Make action plans

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Strategy Translation Activity
OrganizationalCapabilities
Competencies
Strategy Values

• What is your companys strategy? Values?
• What capabilities do you need to make it work?

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Understanding Relationship of Competencies to
Results
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What is a Competency?

• Competency a behavioral skill that focuses on
  how people do something rather than what they do.
  
• It is not
• A technical or clinical skill
• An organization capability
• A cultural or leadership value
• A task or an outcome

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Can You Develop Behavioral Skills?

• Gallup says you should not waste your time
  (focus on selection)
• Lominger says it depends. Not all behaviors are
  equally difficult to learn.

Action oriented
easy
We say use both
Motivating others
moderate
Patience
harder
Understanding others
hardest
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Do Behavioral Skills Drive Performance?

• Answer Some do and some dont

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Implications

• Hire for behavioral skills that
• Are hardest to learn
• Correlate to performance
• Develop behavioral skills that
• Are easiest to learn
• Correlate to performance

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Getting Started Create Success Profiles

• Define combination of behaviors and skills
  observed in your high performers for each job or
  level
• Model after your best

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Activity Competency Card Sort

• Directions
• Individually, sort competency card deck into
  three piles
• 22 competencies most important to the position of
  VP of Sales in your company
• 23 competencies that apply but are less important
• 22 competencies that do not directly apply or are
  not particularly useful
• As a group of three tables, record each
  individuals top 22 competencies on the poster.
• As a group, select the 20 competencies most
  directly tied to success.

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Foundation for Excellence

• Use Success Profiles to
• Interview
• Manage Performance
• Train and Develop
• Promote

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Recruiting for the Business, Not Just the Position
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The Right Person, Not the Best Person
Culture
Organizational Effectiveness
Strategy
People
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Finding the Right Person

• What cultures attract high performers?
• What do candidates perceive about your culture?
• How do you find people who suit your existing
  culture?

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Knowing What Youre Looking For

• Avoid generic job descriptions that focus on
  price-of-entry skills
• Often based on last employee (successful or not)
• Tie strategy and culture to job description
• Consider what kind of person suits the culture
• What qualities do high performers share?
• What will it take to meet short term objectives?
  (6mo1yr)
• What would excellence in this position look like?
• Build on success profiles

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Implications for Hiring

• Once you know who youre looking for, how do you
  select them?
• Gut feel is only 2 better than flipping a coin

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Why Not Hire For Experience

• May have learned wrong attitude/ behavior from an
  inferior competitor. Retraining is more
  difficult.
• Harder to change behavior than train for
  experience.

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Why Not Hire For IQ

• Intelligence doesnt predict long-term success.
• IQ is the price of entry

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Hiring the Right People
Question
What makes the difference in high performance
people?
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Hiring the Right People

• Answer

Common sense is twice as predictive of success as
IQ

• IT IS NOT
• Experience
• Technical/functional Skills
• IQ
• IT IS
• Attitude/Behavior
• EQ (common sense)

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Conclusion Why Hire For Attitude

• Attitude and behaviors get employees in trouble
  not technical/functional skills
• Behavior is harder to change/train in most cases
• Can you name a company that hires for attitude?

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Assessing Behavioral Skills in Hiring
Research Shows

• Behavioral-Event Interviewing dramaticallyimprov
  es hiring decisions
• Lominger Interviewing Express provides tool to
  help even novice interviewers improve their
  skills and interpret candidates answers

Casual, 1-on-1 interview
.20
Reference checks
.26
Assessment centers
.36
Panel interviews
.37
Ability testing
.53
Behavioral structured interviews
.70
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Interview Activity

• Conduct Structured Behavior-Event Interview
• Lominger Interviewing Express
• As a group of three, split into roles
• Interviewer
• Interviewee
• Observer
• Interviewee chooses one of 3 roles
• Person who knows or has seen the behavior
• Person who can demonstrate theyve experienced it
• Person who has adapted it to a new situation

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Orienting Staff A beginning, not an end

• Panel discussionExperiences in typical and
  exceptional orientations

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What Have We Learned About Developing Adults?

• Behavioral skills get people in trouble
• 70 of adult learning is through experience
• 40-60 of performance success correlates directly
  to behavioral skills

Center for Creative Learning studies
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How to Develop Behavioral Skills

• Focus first on honest feedback and improved
  self-awareness
• Adults learn by doing (experience). They must be
  coached to try new behaviors during daily
  interactions.
• The best way is stretch assignments (reaching out
  of comfort zone)
• Simply imparting new knowledge changes nothing

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What Are Todays Leaders Good At?

• Drive for Results
• Action Oriented
• Decision Quality
• Customer Focus
• Ethics and Values
• Perseverance
• Problem Solving
• Approachability

Whats Missing?
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Todays Leaders Need to Develop

• Dealing With Ambiguity
• Motivating Others
• Building Effective Teams
• Personal Disclosure
• Self Knowledge
• Developing Direct Reports
• Conflict Management
• Directing Others

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Challenges for Supervisors

• Tend to hold on to marginal talent too long
• Dont like confronting direct reports or giving
  tough feedback
• 30 of employees are blocked learners (resist all
  change)
• Out of 67 leadership skills, developing direct
  reports is dead last in skill level

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Developing the Individual Isnt Enough

• Organizational processes are needed to hold
  leaders accountable for upgrading their talent

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Solutions For Upgrading Your Talent

• Create success profiles modeled after your best
  people
• Create an annual talent review process that
  requires you to force rank your talent on both
  performance and potential
• Hire for behavioral skills not just
  functional/technical skills
• Include behavioral skills in performance
  management
• Consider a 360 confidential multi-rater feedback
  process for high potentials. Require written
  plans targeting individual development.
• Provide coaching, mentoring and follow-up for
  high potentials

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Performance/Potential Matrix

Use This Matrix to Support Your Talent Review
Process
Determining Intervention
9 High Potential
High performance, high potential
1 Serious Performance Issue
Low performance, low potential move out of
organization
3 Seasoned Pro
High performance, low potential. Great in
current position, coaching
Potential
7 Head-scratcher
Low performance, high potential may be in wrong
position worth addressing
Performance
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Conclusions

• The tactical, strategic and economic impact of
  people systems can be significant
• Focusing on your staffs performance can be
  profitable and drive revenue
• Excellence as an expectation
• Aligned people systems add to the bottom line
• Hire for attitude train for skill

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Questions?

• Research
• Strategy
• Competencies
• Recruiting
• Hiring
• Orienting
• Developing