Developing a High Performance Anatomy

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Developing a High Performance Anatomy

• Peter Cheese, Partner, Human Performance
• Bob Thomas, Director, Institute for High
  Performance Business

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High Performance - Why it Matters

• Only 120 of the global 500 companies of 1992
  ranked in global 500 in 2002
• Average life span of SP 500 company is less than
  15 years
• Less than 1 in 10 companies outperforms their
  peer group for more than 10 years
• .and the rate of change is accelerating!

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High-performance businesses consistently
outperform
Characteristics of a High-Performance Business
High-Performance Businesses

• Have unique industry insight that enables
  recognition of key drivers of business value
• Create decision-making structures and processes
  that quickly transform insight to action
• Achieve business function mastery through
  innovation in strategic core competencies
• Excel in the management of people and change, and
  create a high performance culture
• Obsessed with winning the battle for the customer

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The 3 building blocks of high performance business

• Decisions made with acuity and agility

• Mindsets that enhance the ability to envision and
  execute change

High Performance Anatomy

• Practices that lead to differentiation and
  competitiveness

Distinctive Capabilities
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High performance anatomy
What is it?

• A set of organizational mindsets that permeate an
  organization and are observable in actions and
  decisions
• Companies have to create their futures
• Quality of execution differentiates winners from
  losers
• Strategic agility determines whether companies
  successfully cross the chasm from one set of
  game rules to the next
• High performers are better at this than other
  companies

Why does it matter?
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Intangible assets continue to grow in significance
Market to Book Value Over Time SP 500 (1980
2002)
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Our research into what defines a high performance
business has found

• High performance businesses manage all their
  assets
• Tangible accounting assets capital, equipment,
  real estate, intellectual property
• Intangible assets people, knowledge and
  know-how, brand, reputation, relationships
• High performance businesses manage their future
  value
• Cultivating capabilities that make will produce
  greater than expected growth
• Increased share of the industry future growth
  value pool

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What are some of the key challenges?

• We dont have consistent or agreed measures to
  understand value and outcomes vs. inputs
• Lack of understanding and alignment around
  objectives
• Fragmented approaches to increasing value of
  human and intellectual capital
• Tendency to think one size fits all easier to
  administer
• Poor management of change at scale

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Human capital is critical to driving high
performance
High Performance Framework
Human CapitalCapabilities
Market Focus and Position
Workforce Adaptability
High Performance Anatomy
Talent Management
Leadership Capability
Ability to Change
Employee Engagement
Distinctive Capabilities
Human Capital Efficiency
Workforce Performance
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Value measurement of human capital
Accentures Human Capital Development Framework
Business Results
Tier 1
Human Performance Mastery
Stakeholder outcomes Measurable
attributes Capabilities Resources and
processes
Revenue Growth
ROIC or ROE
TRS
Future Value
Basic
Progressive
Pioneering
Illustrative Business Measures
Key Performance Drivers
Tier 2
Productivity
Quality
Innovation
Customers
Human Capital Capabilities
Tier 3
Workforce Performance
Employee Engagement
Workforce Adaptability
Ability to Change
Talent Management
Leadership Capability
Human Capital Efficiency
Human Capital Processes
Tier 4
Competency Management
Career Development
Performance Appraisal
Succession Planning
Recruiting
Workforce Planning
Workplace Design
Rewards and Recognition
Employee Relations
Human Capital Strategy
Learning Management
Knowledge Management
Human Capital Infrastructure
Change Management
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Primary human capital drivers of innovation
Key Performance Drivers
Key Performance Drivers
Tier 2
Tier 2
Innovation
Human Capital Capabilities
Human Capital Capabilities
Tier 3
Tier 3
Employee Engagement
.698
Human Capital Processes
Human Capital Processes
Tier 4
Tier 4
Workplace
Design
.62
Design
Learning
Employee
Rewards and
Employee
Management
Relations
Recognition
Relations
.61
.63
.72
Number in bubble represents the correlation (r)
with the element at the next tier r.05
r.01
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Primary human capital drivers of employee
engagement
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• Poll audience using HCDF Lite either the
  overall survey (10-12 items) or one dimension
  (e.g., employee engagement, learning or workplace
  design)

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Driving workforce performance need for an
integrated approach
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New technologies are enabling integration to the
point of use
Mass customisation personalising the access and
presentation of knowledge and learning together
with systems and tools to the point of
performance
Collaboration
Critical Job Tasks
Performance Management
Collaboration Instant Messaging
Integrated Office Productivity Tools Mail
Calendar
Learning
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Proven business results

• Learning Transformation
• FastTrack channel program increased CALA sales
  35 and increased customer satisfaction
• After two years, cost per equivalent hour of
  training is 25 below pre-outsourcing rates
• Delivered 8 more training per employee with a
  16 reduction in learning investment
• Curriculum restructuring resulted in 60
  reduction in time to proficiency

• Contact Centre workspace solution
• Improved customer satisfaction and a 23 increase
  in CSR confidence.
• Improved call-handling efficiencies have led to a
  saving of 900k in the first year alone and have
  laid the building blocks for improved compliance
  and reduced content management costs.

• Leadership Development, Organization Redesign,
  Culture Change
• 15 reduction in overhead costs in first year,
  resulting in benefits of 5.1 million.
• Manpower costs reduced by 4.5 million through
  new sourcing models.
• Significant increase in customer satisfaction,
  staff morale, and staff satisfaction.

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Proven business results

• Learning Transformation
• Saved an estimated 15 million by reducing the
  cost of training delivery
• Realized an estimated 12 million in productivity
  gains
• Reduced the time to competence of employees in
  these areas by 30 to 50, resulted in an
  estimated value of nearly 13 million

Field Force Transformation Productive time
increased by 25 an improvement that drove down
the overall costs of field force operations. With
a field service that is more flexible, responsive
and consistent, Thames Water has also seen
significant improvements in their customer
service levels.
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Summary points

• High performers measure intangibles and
  understand how to enhance value
• They are better aligned top to bottom
• They focus more holistically on the drivers of
  workforce performance
• They are embracing new technologies to drive both
  efficiency and effectiveness in business
  performance
• They have a well developed ability to change and
  adapt successfully over time