1. A Key to Predictable Performance Success in Organizations Optimum leadership Inc.

2. Do you want every employee? Working hard to improve without bribes or threats? Improving their individual performance Cooperating as a team 5/6/2011 Copyright 2011 Optimum Leadership 2

3. Do you want every employee? Reducing total costs Improving communication 5/6/2011 Copyright 2011 Optimum Leadership 3

4. I want you to know A Key to Predictable Performance Success in your organization to achieve these outcomes 5/6/2011 Copyright 2011 Optimum Leadership 4

5. Questions for you … What do your employees think and feel about your business? their boss? their job? 5/6/2011 Copyright 2011 Optimum Leadership 5

6. Research shows… Did you know: Research shows positive performance begins with positive feelings and thoughts? 5/6/2011 Copyright 2011 Optimum Leadership 6

7. Questions for you … What is the key to creating consistent positive thoughts and feelings? 5/6/2011 Copyright 2011 Optimum Leadership 7

8. Times are challenging According to SHRM (Society for Human Resource Management, 2011 poll) Attracting and retaining talent Building a culture of trust Are two major challenges for leaders of companies over the next ten years 5/6/2011 Copyright 2011 Optimum Leadership 8

9. Times are challenging 2011 will be a challenging for retention because as the economy picks up more employees are looking for opportunities A report by Blessing and White (an HR consulting firm) 5/6/2011 Copyright 2011 Optimum Leadership 9

10. Times are challenging Employee trust in leadership has a huge impact on performance Executives continuously impact trust even with people they rarely see A report by Blessing and White (an HR consulting firm) 5/6/2011 Copyright 2011 Optimum Leadership 10

11. Times are challenging Supervisors play a crucial role in worker health, wellbeing, and motivation yet One of HR’s main functions is to keep a flow of talent coming into the organization Unless supervisors do the right things all that investment to attract the talent is wasted A report by Hewitt 5/6/2011 Copyright 2011 Optimum Leadership 11

12. Times are challenging According to the Institute for Corporate Productivity: The current performance management practices are ineffective 5/6/2011 Copyright 2011 Optimum Leadership 12

13. Research! According to a study by the Society for Human Resource Management (SHRM): 90% of performance appraisals are unsuccessful 5/6/2011 Copyright 2011 Optimum Leadership 13

14. Research! According to a study by Towers- Watson: Only 3 in 10 employees believed their performance review actually improved performance 5/6/2011 Copyright 2011 Optimum Leadership 14

15. Research! After more than 60 years of effort and thorough study: The current performance management processes have failed to deliver on these two most important priorities: Attracting and retaining talent Creating a culture of trust 5/6/2011 Copyright 2011 Optimum Leadership 15

16. What does this mean? All the raw talent in the world will not help create predictable success… …because… The current and most widely used management tool doesn’t work 5/6/2011 Copyright 2011 Optimum Leadership 16

17. What is the Key? 5/6/2011 Copyright 2011 Optimum Leadership 17

18. How will you succeed? Employee Engagement 5/6/2011 Copyright 2011 Optimum Leadership 18

19. 5/6/2011 Copyright 2011 Optimum Leadership 19 What is Employee Engagement? Definition: “A heightened emotional connection that an employee feels for his or her organization such that they exert greater discretionary effort” * Conference Board: Employee Engagement-A Review of Current Research and Its Implications 2006

20. Three types of employees Engaged employees work with passion and feel a profound connection to their company, they drive innovation and move the organization forward. Non-engaged employees are essentially “checked out” they’re sleepwalking through their workday, putting in time– but not energy or passion – into their work. Actively disengaged employees aren’t just unhappy at work; they’re busy acting out their unhappiness. Everyday these workers undermine what their engaged coworkers accomplish. 69% 31% 5/6/2011 Copyright 2011 Optimum Leadership 20

21. Research! There is a direct correlation between employee engagement and: Organizational performance Customer satisfaction Growth Employee retention The Training Foundation and Aberdeen Group 5/6/2011 Copyright 2011 Optimum Leadership 21

22. Research! Engaged employees “stay for what they give” GIVERS Disengaged employees “stay for what they get!” TAKERS Blessing and White Research 5/6/2011 Copyright 2011 Optimum Leadership 22

24. low morale5/6/2011 Copyright 2011 Optimum Leadership 23

25. Disengaged employees were: 5 times more likely to have safety incident 5 times more costly 5/6/2011 Copyright 2011 Optimum Leadership 24

26. Strategy… 5/6/2011 Copyright 2011 Optimum Leadership 25 To address this we must increase the number of engaged and significantly reduce (eliminate) the actively disengaged

27. We are NOT doing well! 5/6/2011 Copyright 2011 Optimum Leadership 26

28. We are NOT doing well! Only 1 out of 3 employees is engaged 5/6/2011 Copyright 2011 Optimum Leadership 27

29. We are NOT doing well! Almost half of organizations around the world saw a significant drop in employee engagement levels in 2010 A report by Hewitt Associates 5/6/2011 Copyright 2011 Optimum Leadership 28

30. We are NOT doing well! Nearly 1 in 5 are actively disengaged … this disengagement can negatively impact other employees 5/6/2011 Copyright 2011 Optimum Leadership 29

31. Why? Why are we unable to create employee engagement above the 31% level? 5/6/2011 Copyright 2011 Optimum Leadership 30

32. Why? We have been taught a theory 0f leadership that worked in the Industrial Age It no longer works in the Information and Knowledge Age 5/6/2011 Copyright 2011 Optimum Leadership 31

33. Why? We have been taught the Taylor theory of scientific management 5/6/2011 Copyright 2011 Optimum Leadership 32

34. Why? The Taylor Theory of Scientific Management tells leaders to: Tell people what to do and how Closely supervise and evaluate them Hold them accountable to the “one correct way” with a performance management process that does not work 5/6/2011 Copyright 2011 Optimum Leadership 33

35. Why? The Taylor Theory of Scientific Management helps us: Control employees 5/6/2011 Copyright 2011 Optimum Leadership 34

36. Why? The Taylor Theory of Scientific Management damages: Trust Knowledge accumulation Freedom to Innovate 5/6/2011 Copyright 2011 Optimum Leadership 35

37. Why? Accelerating knowledge Freedom to innovate Trust All needed for engagement 5/6/2011 Copyright 2011 Optimum Leadership 36

38. Why? We still use the Taylor Scientific Management Theory 5/6/2011 Copyright 2011 Optimum Leadership 37

39. Example Many are promoted into their positions based on technical knowledge 5/6/2011 Copyright 2011 Optimum Leadership 38

40. Example Promoting based on technical knowledge (instead of having engagement skills) is consistent with Taylor Scientific Management “Only the boss knows best” 5/6/2011 Copyright 2011 Optimum Leadership 39

41. We need a new theory and new skills There is an alternative leadership theory and a new set of employee engagement skills 5/6/2011 Copyright 2011 Optimum Leadership 40

42. We need to CHANGE! We used to heat our homes with a fireplace 5/6/2011 Copyright 2011 Optimum Leadership 41

43. We need to CHANGE! We replaced the fireplace with oil and gas heat because it was less costly, much more effective and much more efficient 5/6/2011 Copyright 2011 Optimum Leadership 42

44. We need to CHANGE! We replaced the fireplace as our source of heat because we found a better way 5/6/2011 Copyright 2011 Optimum Leadership 43

45. We need to CHANGE! The Taylor Theory is like the fireplace, Outdated! 5/6/2011 Copyright 2011 Optimum Leadership 44

46. What we need We need a new theory that works with the age of knowledge We need a new theory of leadership 5/6/2011 Copyright 2011 Optimum Leadership 45

47. What we need New environment using the new theory and skills to optimize innovation and engagement The two go “hand-in-hand” 5/6/2011 Copyright 2011 Optimum Leadership 46

48. What we need Only fully engaged employees know how to optimally learn and innovate Talent alone will not create the environment of engagement 5/6/2011 Copyright 2011 Optimum Leadership 47

49. Summary It is the working environment that makes the greatest difference Without the new theory and skills we cannot create the engaged environment 5/6/2011 Copyright 2011 Optimum Leadership 48

50. Summary Do You? 5/6/2011 Copyright 2011 Optimum Leadership 49

51. Take action now Learn: The skills leaders need to create engagement with every interaction How to help disengaged de-select out www.optimumleadership.com 5/6/2011 Copyright 2011 Optimum Leadership 50

52. Take action now Learn: To measure the employee engagement level at your company Which barriers are stopping you from improving engagement now www.optimumleadership.com 5/6/2011 Copyright 2011 Optimum Leadership 51

53. Take action now Request a client case study that shows how one organization made the transformation to a new leadership theory and a new set of skills FREE at: http://www.optimumleadership.com/articles.asp 5/6/2011 Copyright 2011 Optimum Leadership 52

54. “The future depends on what we do in the present” Gandhi Wally Hauck holds a Ph.D. in Organizational Leadership A Certified Speaking Professional 15 years consulting experience Consulted with dozens of organizations and coached hundreds of individuals www.optimumleadership.com 203-874-8484 5/6/2011 Copyright 2011 Optimum Leadership 53

55. Thank You 5/6/2011 Copyright 2011 Optimum Leadership 54